Gibson Energy Announces Contract Extension and Sanctions Cactus II Connection at Gateway Terminal
July 15 2024 - 7:00AM
Gibson Energy Inc. (TSX:GEI) (“Gibson” or the “Company”) announced
today the extension of a long-term contract with an investment
grade global E&P company at its Gateway Terminal and the
sanction of a connection to the Cactus II Pipeline. The specific
terms of the customer contract are confidential.
“Since announcing the transformational
acquisition of our Gateway Terminal a year ago, we have
accomplished many milestones and today, I am thrilled with the
extension of this contract which meets our overarching commercial
commitments and creates long-term value for all our stakeholders,”
said Steve Spaulding, President & Chief Executive Officer.
“Most notably, the multi-year extension of this existing contract
with a valued customer, further enhances the high quality of our
cash flows. This achievement also demonstrates the value our
world-class, strategically located terminal provides to our
customers through its connectivity to prolific basins and global
markets. In addition to this contract, we continue to engage in
active discussions with existing and new customers at the facility
and are pleased with the progress to date.”
Cactus II Pipeline
ConnectionThe Company has sanctioned a pipeline connection
(the “Connection”) to the Cactus II Pipeline pursuant to an
interconnection agreement with Cactus II Pipeline, LLC. The
Connection enhances the Gateway Terminal’s connectivity and will
provide our customers with access to up to approximately 700,000
barrels per day of incremental supply. The Company expects to
deploy approximately $20 million in growth capital on the
Connection, which was included in the 2024 capital budget.
About Gibson Gibson is a
leading 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 located across North
America, with core terminal assets in Hardisty and Edmonton,
Alberta, Ingleside, Texas, and a facility in Moose Jaw,
Saskatchewan.
Gibson shares trade under the symbol GEI and are
listed on the Toronto Stock Exchange. For more information,
visit www.gibsonenergy.com.
For further information, please
contact:
Investor Relations:(403)
776-3077investor.relations@gibsonenergy.com
Media Relations:(403)
476-6334communications@gibsonenergy.com
Forward Looking
StatementsCertain statements contained in this press
release constitute forward-looking information and statements
(collectively, forward-looking statements) including, but not
limited to, statements concerning current and future re-contracting
at the Gateway Terminal, the sanction and completion of
infrastructure projects, including but not limited to the
Connection, and the anticipated benefits thereof, expectations
related to growth capital expenditures, stakeholder value creation
resulting from such business initiatives and the benefits of the
Gateway Terminal for our customers. 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. The
forward-looking statements reflect Gibson's beliefs and assumptions
with respect to, among other things, the ability to achieve the
anticipated benefits of the acquisition of the Gateway Terminal and
the re-contracting thereof, ability to meet growth capital targets,
ability to sanction incremental infrastructure projects and ability
to place infrastructure projects into service and the timing
thereof. 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 press release should not be unduly
relied upon. These statements speak only as of the date of this
press release. 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 Information” and “Risk Factors” included in the
Company's Annual Information Form and Management's Discussion and
Analysis, each dated February 20, 2024, as filed on SEDAR+ and
available on the Gibson website at
www.gibsonenergy.com.
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