Canada's Gibson Energy Q3 adjusted EBITDA beats estimates, hits record

Overview

• Canada liquids infrastructure firm's Q3 adjusted EBITDA beat analyst expectations, reaching a record high

• Q3 net income rose yr/yr, driven by Chauvin asset contributions and higher refined product margins

• Company sanctioned 50% capacity expansion of Chauvin pipeline, citing strong commercial interest

Outlook

• Gibson expects dividend payout ratio and net debt to adjusted EBITDA ratio to improve

• Company anticipates Chauvin pipeline expansion to be in service in first half of 2028

• Gibson sees improving Canadian market access and growing producer activity supporting growth opportunities

Result Drivers

• CHAUVIN ASSET CONTRIBUTIONS - Co said record Infrastructure adjusted EBITDA was primarily driven by a full quarter of contributions from the Chauvin Infrastructure Assets and higher throughput

• REFINED PRODUCT MARGINS - Co said Marketing adjusted EBITDA rose due to continued strength in refined product margins and a more diversified product mix

• THROUGHPUT AND OPTIMIZATION - Co cited higher overall throughput, record volumes moved to TMX through Edmonton, and ongoing asset optimization as drivers of Infrastructure segment growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for Gibson Energy Inc. is C$33.50, about 1.6% below its October 30 closing price of C$34.05

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

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• Nov 1 - Venture Global begins supplying Plaquemines phase 1 customers under long-term LNG contracts

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)