Gibson Energy Reports Record Infrastructure EBITDA as Throughput Improves, TPH Says
Gibson Energy increased throughput across key assets and delivered record infrastructure earnings in Q21, while stronger marketing margins lifted overall results, TPH Energy Research said in a Tuesday note.Higher throughput at the Gateway and Edmonton terminals, the initial contribution from the Chauvin Infrastructure Assets, and ongoing restructuring benefits lifted infrastructure adjusted EBITDA to a record CA$169 million ($119.8 million), TPH said.Infrastructure adjusted EBITDA increased CA$17 million from a year earlier and came in slightly above TPH's and the Street's CA$168 million estimates, the report added.Gibson completed the CA$400 million Chauvin acquisition in May and approved the Hardisty Connection project.The marketing segment generated adjusted EBITDA of CA$15 million, topping TPH's CA$6 million estimate and the Street's CA$7 million forecast. TPH attributed the outperformance to stronger crack spreads and improved refined product margins.Adjusted EBITDA reached CA$169 million, exceeding TPH's CA$157 million estimate and matching a beat versus the Street's CA$157 million forecast. TPH said stronger marketing performance accounted for the entire upside.Distributable cash flow totaled CA$96 million, above TPH's and the Street's CA$88 million estimates.In July, the company also issued CA$400 million of 4.45% senior unsecured notes due 2034, which management said achieved the tightest credit spread across any tenor in the company's history.Net income increased CA$22 million from a year earlier to CA$83 million, supported by stronger operating performance and lower taxes. Higher general and administrative expenses, Chauvin acquisition costs and unrealized corporate mark-to-market partially offset the gain.General and administrative expenses totaled CA$16 million, below management's guided quarterly run rate of CA$17 million-CA$18 million, TPH said.Net debt to adjusted EBITDA stood at 4.2x, while the trailing 12-month dividend payout ratio measured 88%. Management expects both metrics to normalize as the Chauvin assets contribute over a full year, TPH Energy added.