Gibson Energy will divest several non-core businesses as part of plans to transition to a focused oil infrastructure growth company.
The key attributes of its strategy include having oil infrastructure comprise 85% of segment profit by the end of 2019, with the Hardisty and Edmonton terminals representing 75% of segment profit.
It also aims to invest $!50 million to $200 million in growth capital pe4r yea, inclusive of the expected sanction of at least one to two tanks per year and have secure, growing dividend, underpinned by long-term contracts with investment grade counterparties at its terminal assets.
Looking at its Canadian business strategy, the company expects that the long-term growth of oil sands production will continue to increase heavy oil flows into Hardisty, driving producer demand for additional tankage. Gibson plans to secure a significant proportion of incremental third-party tank build opportunities and could support the sanction of at least one to two tanks per year on a run-rate basis.
Gibson also plans to grow its businesses that leverage the core terminal position, including additional pipeline connections and blending. It plans to expand its pipeline gathering network surrounding Hardisty in the Viking Basin by leveraging existing storage capabilities and access to egress pipelines at its terminals.
Looking at its US business strategy, it will focus on the Permian and SCOOP/STACK basins and leverage its injection station position in these plays. It also plans to develop regional gathering pipelines to establish an additional growth platform.
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