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1. Company Snapshot

1.a. Company Description

Gibson Energy Inc., a liquids infrastructure company, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in North America.It operates through two segments, Infrastructure and Marketing.The Infrastructure segment operates a network of infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, and a crude oil processing facility.


The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product.The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc.in April 2011.


Gibson Energy Inc.was founded in 1950 and is headquartered in Calgary, Canada.

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1.b. Last Insights on GEI

Gibson Energy's recent performance was driven by record Infrastructure Adjusted EBITDA of $155 million, fueled by all-time high volumes at both the Gateway and Edmonton terminals. The company also realized recurring and non-recurring cost savings of approximately $6 million, increasing efficiency. Additionally, individual investors' significant control over the company implies a strong connection with the general public, potentially driving growth. Furthermore, Gibson Energy's recent upgrade to a Zacks Rank #2 (Buy) reflects growing optimism about the company's earnings prospects.

1.c. Company Highlights

2. Gibson Energy's Q3 2025 Earnings: A Strong Performance

Gibson Energy reported a solid Q3 2025 performance, with infrastructure EBITDA of $154 million and marketing EBITDA of $7 million, resulting in distributable cash flow of $86 million. The company's EPS came in at $0.28, slightly below estimates of $0.3056. The revenue growth is expected to be -14.6% next year, according to analysts' estimates. The company's financial performance was in line with expectations, with a debt-to-adjusted EBITDA ratio of 3.9x and a consolidated payout ratio of 85%. The current valuation metrics indicate a P/E Ratio of 24.56, an EV/EBITDA of 13.1, and a Dividend Yield of 7.13%, suggesting a relatively stable return profile.

Publication Date: Nov -16

📋 Highlights
  • Record Throughput:: Gibson Energy achieved 2.2 million barrels/day across Canadian/U.S. terminals, up 8% quarter-over-quarter and 27% year-over-year.
  • Edmonton Terminal Growth:: Throughput surged to 330,000 barrels/day, doubling 2024’s volumes and setting a new record.
  • Gateway Terminal Milestone:: Recorded 717,000 barrels/day throughput in Q3, with post-dredging volumes averaging 725,000 barrels/day over 5 months.
  • Financial Performance:: Infrastructure EBITDA reached $154 million, while debt-to-adjusted EBITDA stood at 3.9x, targeting a reduction to 3x–3.5x by mid-2026.
  • Strategic Growth Targets:: Aiming for over 5% annual infrastructure EBITDA-per-share growth and 15%–20% Gateway EBITDA growth by Q4 2025, driven by Cactus II’s 700,000 barrels/day Permian supply access.

Operational Highlights

The company's operational performance was strong, with record throughput across its assets. The Canadian and U.S. terminals reached a record 2.2 million barrels per day, up 8% from the previous quarter and 27% higher than the same period in 2024. The Edmonton Terminal saw a significant increase in throughput, with volumes more than doubling compared to the same period last year. The Gateway terminal also achieved a new quarterly throughput record of 717,000 barrels per day.

Strategic Priorities

Gibson Energy is focused on five strategic priorities: safety, Gateway execution, growth, building high-performance teams, and cost focus. The company achieved a key milestone on its Gateway execution priority with the completion of the Cactus II connection, providing customers with access to an additional 700,000 barrels a day of Permian supply. The company expects a stable commodity price environment in 2026, with marketing performance expected to remain consistent.

Growth Prospects

The company is targeting infrastructure EBITDA per share growth of more than 5% over the next five years and has a clear plan to return to its target debt-to-adjusted EBITDA ratio range of 3x to 3.5x in the first half of 2026. The company will hold an Investor Day in Toronto on December 2 to discuss its long-term strategic plan, growth initiatives, and return proposition. Management expects to outline specifics of its 5-year plan, highlighting growth and a compelling return proposition backed by an outstanding dividend.

Valuation and Outlook

With a current P/E Ratio of 24.56 and an EV/EBITDA of 13.1, the company's valuation appears to be reasonable. The Dividend Yield of 7.13% provides a relatively stable return profile. The company's growth prospects, including the expected uptick in volumes at the Gateway facility and the potential for crude to go into contango, could have a positive impact on the bottom line. As the company continues to execute on its strategic priorities and growth initiatives, investors can expect a compelling return proposition.

3. NewsRoom

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Gibson Energy (TSX:GEI): Assessing Valuation After a Steady 12-Month Share Price Gain

Dec -04

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How Gibson Energy’s Evolving Outlook Is Reshaping The Investment Story

Dec -03

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Gibson Energy Maintained at Hold at TPH Following Investor Day Presentations; Price Target at C$24.00

Dec -03

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Gibson Energy Price Target Raised at CIBC, RBC

Dec -03

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Gibson Energy Secures Contract Extensions at Edmonton Terminal, Announces $150 Million of Growth Capital in 2026

Dec -02

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Gibson Energy Announces Major Contract Extensions of 20 and 10 Years at Edmonton, Sanctioning of New Wink-to-Gateway Integration Project, and $150 Million of Growth Capital in 2026

Dec -02

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RBC Says New Alberta-Canada Energy Deal Could Lift Canadian Energy Infrastructure Sector

Nov -28

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Gibson Energy to Host Investor Day on December 2, 2025

Nov -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.91%)

6. Segments

Marketing

Expected Growth: 3.83%

Gibson Energy Inc.'s marketing segment growth of 3.83% is driven by increased demand for crude oil transportation and storage services, expansion into new markets, and strategic partnerships. Additionally, investments in digital marketing and e-commerce platforms have enhanced customer engagement and experience, contributing to the segment's growth.

Infrastructure

Expected Growth: 6.15%

Gibson Energy Inc.'s 6.15% growth in Infrastructure is driven by increasing demand for midstream services, expansion of crude oil transportation capacity, and strategic acquisitions. Additionally, investments in pipeline infrastructure and terminal facilities, coupled with a strong operational performance, have contributed to the segment's growth.

7. Detailed Products

Crude Oil Transportation

Gibson Energy provides transportation services for crude oil from the wellhead to refineries and other destinations.

Crude Oil Storage

Gibson Energy offers storage facilities for crude oil, providing a safe and secure environment for oil storage.

Refined Products Transportation

Gibson Energy transports refined petroleum products, such as gasoline, diesel, and jet fuel, from refineries to distribution points.

Refined Products Storage

Gibson Energy provides storage facilities for refined petroleum products, ensuring a reliable supply chain.

Pipelines and Terminal Services

Gibson Energy operates pipelines and terminals, providing connectivity between production areas and demand centers.

Marketing and Logistics Services

Gibson Energy offers marketing and logistics services, including supply and trading, to support customers' energy needs.

8. Gibson Energy Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Gibson Energy Inc. operates in the midstream oil and gas industry, which has relatively low threat of substitutes due to the lack of alternative infrastructure for transporting and storing oil and gas products.

Bargaining Power Of Customers

Gibson Energy Inc. has a diverse customer base, including major oil and gas companies, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Gibson Energy Inc. relies on a few major suppliers for its operations, which gives them some bargaining power, but the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The midstream oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which reduces the threat of new entrants.

Intensity Of Rivalry

The midstream oil and gas industry is highly competitive, with several major players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.25%
Debt Cost 5.19%
Equity Weight 24.75%
Equity Cost 10.42%
WACC 6.48%
Leverage 303.96%

11. Quality Control: Gibson Energy Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Western Midstream Partners

A-Score: 7.1/10

Value: 5.1

Growth: 6.6

Quality: 7.2

Yield: 10.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Topaz Energy

A-Score: 6.7/10

Value: 3.4

Growth: 8.1

Quality: 6.5

Yield: 9.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Gibson Energy

A-Score: 6.7/10

Value: 5.0

Growth: 4.9

Quality: 3.2

Yield: 10.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
DT Midstream

A-Score: 6.6/10

Value: 3.2

Growth: 6.0

Quality: 6.5

Yield: 7.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Pembina Pipeline

A-Score: 6.2/10

Value: 4.9

Growth: 4.3

Quality: 5.9

Yield: 8.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
EnLink Midstream

A-Score: 4.6/10

Value: 3.5

Growth: 5.4

Quality: 2.8

Yield: 5.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.88$

Current Price

25.88$

Potential

-0.00%

Expected Cash-Flows