Gibson Energy Reports 2025 Second Quarter Results, Including Record Volumes at Gateway Following Dredging Completion

Executive Summary

• Gibson Energy Inc. reported financial and operating results for the second quarter and six months ended June 30, 2025, highlighting strong infrastructure performance despite planned downtime and lower marketing contributions.
• The company completed the Gateway dredging project on time and within budget, boosting throughput and setting new volume records, while also executing major turnarounds at Moose Jaw and Hardisty safely and under budget.
• Financial metrics showed a decrease in consolidated Adjusted EBITDA and Distributable Cash Flow compared to the prior year period, driven by lower Marketing segment contributions and higher replacement capital expenditures, though Infrastructure Adjusted EBITDA remained stable.

Key Details

• Infrastructure Adjusted EBITDA: $153 million for Q2 2025, in line with Q2 2024, driven by increased throughput at Edmonton and Gateway and lower operating costs, partially offset by lower volume at Hardisty.
• Marketing Adjusted EBITDA: $8 million for Q2 2025, reflecting tight commodity differentials, limited storage opportunities, and the impact of a planned turnaround at Moose Jaw.
• Consolidated Adjusted EBITDA: $146 million for Q2 2025, a $13 million decrease from Q2 2024 ($159 million).
• Net Income: $61 million for Q2 2025, a $3 million decrease from Q2 2024 ($64 million), primarily due to segment EBITDA impacts and lower prior-year restructuring costs.
• Distributable Cash Flow (DCF): $81 million for Q2 2025, a $20 million decrease from Q2 2024 ($101 million), due to lower Adjusted EBITDA and higher replacement capital expenditures.
• Dividend Payout Ratio: 83% on a trailing twelve-month basis, modestly above the 70%–80% target range; expected to improve in H2 2025.
• Net Debt to Adjusted EBITDA Ratio: 4.0x at June 30, 2025, compared to 3.5x at June 30, 2024, reflecting higher capital spend and lower Marketing contributions.
• Operational Highlights:
  • Completed Gateway dredging project, enabling loading of up to 1.6 million barrels on a VLCC.
  • Executed major turnarounds at Moose Jaw Facility and Hardisty Diluent Recovery Unit on time, under budget, with zero recordable injuries.
  • Surpassed 9.5 million hours without a lost-time injury.
  • Realized ~$9 million in recurring and non-recurring cost savings in Q2, increasing DCF per share by $0.05 (12%).
• Strategic & Financial Developments:
  • Appointed Dave Gosse as Senior Vice President and Chief Operating Officer (effective May 20, 2025).
  • Amended and extended unsecured revolving credit facility to June 2030.
  • Board approved quarterly dividend of $0.43 per common share, payable October 17, 2025.
  • Morningstar DBRS reaffirmed Investment Grade credit rating at BBB (low) with stable trends.
  • Settled $325.0 million senior unsecured notes at maturity subsequent to the quarter.

Notable Quotes

• “This quarter marked a key step on delivering the growth potential at Gateway,” said Curtis Philippon, President & Chief Executive Officer. “We completed the dredging project, unlocking immediate operational benefits and increasing average throughput at the terminal by approximately 20%, helping us achieve a record-setting quarter. I am also especially proud of our team’s preparation and execution of the two major turnarounds. The safe and efficient execution of those projects set us up for a strong quarter and will provide additional capabilities going forward.”