All financial figures are in Canadian dollars unless otherwise
noted
CALGARY, AB, Dec. 6, 2021
/CNW/ - Gibson Energy Inc. announced today its target
for growth capital expenditures in 2022 to be approximately
$150 million, depending on the timing
of the sanction of certain growth opportunities. Projects
currently sanctioned by the Board of Directors comprise
approximately one-third of the target capital figure.
Additionally, the Board of Directors has approved the allocation of
between $25 million and $30 million in replacement capital expenditures
in 2022.
"Our focus remains on deploying our capital into high-quality
opportunities at our target 5x to 7x EBITDA build multiples and,
remaining consistent with our strategy, we will continue to be
disciplined when evaluating projects," said Steve Spaulding, President and Chief Executive
Officer. "The number of growth projects we are constructing
today is reflective of the impacts that the onset of Covid-19 had
on the sector in 2020 and into early 2021. We are currently
progressing discussions with customers on tankage, DRU and other
opportunities, which would point us to our growth capital
expenditures target in 2022 of approximately $150 million."
The Company now expects 2021 growth capital expenditures of
approximately $160 million to
$170 million due to cost savings
realized on certain projects, several smaller-scale internal
projects not proceeding and timing of spend on projects currently
in progress.
Funding Position
Gibson remains fully-funded for all
sanctioned capital, within its Financial Governing Principles and,
given the continued growth of its long-term, stable Infrastructure
cash flows, has internal funding capacity above both its 2022
growth capital outlook and its annual $150
million to $200 million growth
capital target.
"We remain in a very strong financial position, with the
Infrastructure segment's existing cash flow run-rate of
approximately $105 million per
quarter being more than sufficient to internally fund our capital
programs," said Sean Brown, Senior
Vice President and Chief Financial Officer. "Given our
funding position and solid balance sheet, we see the potential to
return excess capital to shareholders in 2022, which we will
continue to evaluate in the context of how capital deployment
activities are proceeding. To the extent we see a recovery in
our Marketing segment, that would accelerate our ability to return
capital to shareholders as we will continue to prioritize
maintaining our enviable financial position."
About Gibson
Gibson Energy Inc. ("Gibson" or
the "Company") (TSX: GEI), is a Canadian-based liquids
infrastructure company with its principal businesses consisting of
the storage, optimization, processing, and gathering of liquids and
refined products. Headquartered in Calgary, Alberta, the Company's operations are
focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and include the Moose Jaw
Facility and an infrastructure position in the U.S.
Gibson shares trade under the symbol GEI and are listed on the
Toronto Stock Exchange. For more information, visit
www.gibsonenergy.com.
Forward-Looking Statements
Certain statements
contained in this news release constitute forward-looking
information and statements (collectively, "forward-looking
statements") including, but not limited to, management's
expectations with respect to the business and financial prospects
and opportunities of Gibson or its subsidiaries, business and
funding strategy and plans of management, expectations of future
market conditions, expectations of growth capital expenditures and
replacement capital expenditures in 2022 and growth capital
expenditures for 2021, Gibson's ability to sanction projects that
are in support thereof and the resulting impact of such projects on
Gibson's or its customers' business and Gibson's capital
allocation, Gibson's ability to progress its DRU and other
commercial opportunities, Gibson's expectations with respect to its
funding position, Gibson's expectations of the Infrastructure and
Marketing segments, the return of capital to shareholders and the
conditions upon which Gibson would do so and Gibson's plans and
strategies to realize its projections. All statements other than
statements of historical fact are forward-looking statements. The
use of any of the words ''anticipate'', ''plan'', ''contemplate'',
''continue'', ''estimate'', ''expect'', ''intend'', ''propose'',
''might'', ''may'', ''will'', ''shall'', ''project'', ''should'',
''could'', ''would'', ''believe'', ''predict'', ''forecast'',
''pursue'', ''potential'' and ''capable'' and similar expressions
are intended to identify forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. No assurance can be given that these expectations will
prove to be correct and such forward-looking statements included in
this news release should not be unduly relied upon. These
statements speak only as of the date of this news release. In
addition, this news release may contain forward-looking statements
and forward-looking information attributed to third party industry
sources. The Company does not undertake any obligations to publicly
update or revise any forward-looking statements except as required
by securities law. Actual results could differ materially from
those anticipated in these forward-looking statements as a result
of numerous risks and uncertainties including, but not limited to,
the risks and uncertainties described in "Forward-Looking
Statements" and "Risk Factors" included in the Company's Annual
Information Form dated February 22,
2021 as filed on SEDAR and available on the Gibson website
at www.gibsonenergy.com.
For further information, please contact:
Mark Chyc-Cies
Vice President, Strategy, Planning & Investor
Relations
Phone: (403) 776-3146
Email: mark.chyc-cies@gibsonenergy.com
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SOURCE Gibson Energy Inc.