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

Core Viewpoint - Gibson Energy Inc. reported strong financial and operational results for the second quarter of 2025, highlighting significant growth potential and operational improvements following the completion of key projects [3][4]. Financial Highlights - Infrastructure Adjusted EBITDA reached $153 million, consistent with the same quarter in 2024, driven by increased throughput at Edmonton and Gateway, alongside reduced operating costs [7]. - Adjusted EBITDA on a consolidated basis was $146 million, a decrease of $13 million from the second quarter of 2024, primarily due to lower contributions from the Marketing segment [7]. - Net income for the quarter was $61 million, down $3 million from the previous year, influenced by various factors affecting segment EBITDA [7]. - Distributable Cash Flow (DCF) was $81 million, a decrease of $20 million from the second quarter of 2024, attributed to lower Adjusted EBITDA and higher capital expenditures [7]. - The dividend payout ratio was 83%, slightly above the target range of 70% – 80%, with expectations for improvement in the second half of the year [7][23]. Strategic & Business Developments - The completion of the Gateway dredging project has increased average throughput at the terminal by approximately 20%, contributing to record-setting quarterly performance [3][6]. - Major turnarounds at the Moose Jaw Facility and the Hardisty Diluent Recovery Unit were executed on time and under budget, with zero recordable injuries [6]. - The company achieved recurring and non-recurring cost savings of approximately $9 million in the quarter, leading to a 12% increase in DCF per share [6]. - Morningstar DBRS reaffirmed Gibson's Investment Grade credit rating at BBB (low) following the quarter [6][15]. Operational Metrics - The company surpassed 9.5 million hours without a lost-time injury, reflecting a strong safety culture [6]. - The net debt to Adjusted EBITDA ratio was 4.0x as of June 30, 2025, compared to 3.5x a year earlier, indicating higher capital spending and lower Marketing contributions [7][24][25].