Gibson Energy (GEI) AI Stock Analysis

• Market Cap: C$3.37B
• Dividend Yield: 8.37%
• Average Volume (3M): 954.32K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.78
• Revenue Growth: 6.95%
• EPS Growth: -35.38%
• Country: CA
• Employees: 460
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.94
• Shares Outstanding: 163,300,000
• 10 Day Avg. Volume: 893,770
• 30 Day Avg. Volume: 954,315
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.31
• Price to Cash Flow (P/CF): 13.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$26.22
• Price Target Upside: 27.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Gibson Energy's overall stock score reflects its robust financial performance and strategic growth initiatives, particularly in infrastructure, despite challenges in the marketing segment. The stock's valuation and high dividend yield make it appealing to income investors, although technical indicators suggest caution due to current bearish trends. Continued strategic partnerships and corporate events enhance long-term growth prospects.

Positive Factors

Dividends

The company's quarterly dividend was raised by about 5% to $0.43 per share, which is higher than expected and implies an attractive yield of approximately 7.3%.

Growth Prospects

The Gateway terminal's EBITDA is expected to increase by 15-20%, supporting a positive outlook for future growth.

Valuation

The company has an attractive valuation compared to its peers, trading at approximately 9x EV/EBITDA versus midstream peers at around 11x.

Negative Factors

Financial Performance

The Q4/24 EBITDA results fell short of expectations, with a significant miss driven by atypical losses in the Marketing segment.

Management Changes

The departure of Senior VP & CFO Sean Brown is seen as a meaningful loss, impacting market confidence.

Market Performance

With the ~4% miss to consensus expectations and no 'new' news, GEI shares are expected to be a modest relative underperformer.

Gibson Energy Business Overview & Revenue Model

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.

How the Company Makes Money

Gibson Energy makes money primarily through its infrastructure and logistics operations. The company's revenue model is centered around fee-based contracts for the storage and transportation of crude oil and petroleum products. Key revenue streams include terminal and pipeline services, where Gibson Energy charges fees for the use of its storage tanks and pipeline infrastructure. Additionally, the company engages in marketing activities, buying and selling crude oil and other petroleum products to capitalize on market opportunities. Significant partnerships with major oil producers and refiners enhance Gibson's access to a steady flow of product and ensure a reliable demand for its services. The company's earnings are bolstered by long-term contracts with stable, predictable cash flows, thereby reducing exposure to volatile commodity prices.

Gibson Energy Financial Statement Overview

Summary

Gibson Energy exhibits solid financial health with growth in revenue and stable operational margins. The balance sheet shows a healthy equity base and manageable debt levels, while cash flow metrics highlight effective cash management and capital efficiency. Continued attention to cost control and income management will be essential to sustain growth in net income.

Income Statement

Gibson Energy shows a strong gross profit margin with a recent increase in revenue, although net profit margin has decreased slightly over the past year. EBIT and EBITDA margins are stable, indicating consistent operational efficiency. However, the decline in net income suggests potential challenges in managing costs or other income-related factors.

Balance Sheet

The company has a moderate debt-to-equity ratio, which suggests a balanced leverage position. Return on equity is decent, indicating the company is generating a reasonable return on shareholder investments. The equity ratio has improved, showing a stronger equity base relative to assets over time.

Cash Flow

Gibson Energy demonstrates positive free cash flow growth, suggesting effective cash management. The operating cash flow to net income ratio is robust, reflecting good cash conversion from earnings. The free cash flow to net income ratio is also strong, indicating efficient capital expenditure management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.78B	11.01B	11.04B	7.21B	4.94B
	Gross Profit
423.64M	483.33M	394.44M	304.41M	306.14M
	EBIT
344.27M	401.61M	355.07M	242.58M	247.10M
	EBITDA
531.78M	535.79M	479.15M	416.44M	378.56M
	Net Income Common Stockholders
152.17M	214.21M	223.25M	145.05M	121.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.07M	143.76M	83.60M	62.69M	53.68M
	Total Assets
4.97B	4.95B	3.19B	3.43B	3.07B
	Total Debt
2.65B	2.77B	1.72B	1.74B	1.55B
	Net Debt
2.59B	2.63B	1.63B	1.68B	1.50B
	Total Liabilities
4.00B	4.03B	2.62B	2.79B	2.39B
	Stockholders Equity
972.07M	912.47M	573.02M	644.13M	679.65M
Cash Flow		Free Cash Flow
423.21M	444.44M	457.93M	99.13M	244.45M
	Operating Cash Flow
598.45M	574.86M	598.31M	216.81M	459.55M
	Investing Cash Flow
-142.28M	-1.60B	-134.40M	-127.06M	-303.95M
	Financing Cash Flow
-544.00M	1.07B	-445.51M	-82.95M	-149.40M

Gibson Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GEI, the sentiment is Negative. The current price of 20.6 is below the 20-day moving average (MA) of 21.72, below the 50-day MA of 22.12, and below the 200-day MA of 22.24, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 52.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GEI.

Gibson Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEY	78 Outperform	C$9.37B	19.26	17.35%	5.18%	2.89%	14.76%
GEI	70 Outperform	C$3.37B	22.01	16.36%	8.37%	6.95%	-35.38%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%

Gibson Energy Corporate Events

Gibson Energy Schedules Q1 2025 Earnings Release and Annual Meeting

Gibson Energy Inc. has announced the release of its 2025 first quarter financial and operating results scheduled for May 5, 2025, after market close, with a subsequent conference call and webcast on May 6, 2025. The company will also conduct its Annual General Meeting on May 6, 2025, in a hybrid format, enhancing accessibility and engagement for shareholders, which may positively impact stakeholder participation and company transparency.

Spark’s Take on TSE:GEI Stock

According to Spark, TipRanks’ AI Analyst, TSE:GEI is a Outperform.

Gibson Energy’s overall stock score reflects its robust financial performance and strategic growth initiatives, particularly in infrastructure, despite challenges in the marketing segment. The stock’s valuation and high dividend yield make it appealing to income investors, although technical indicators suggest caution due to current bearish trends.

To see Spark’s full report on TSE:GEI stock, click here.

Gibson Energy and Baytex Forge Strategic Infrastructure Partnership in Pembina Duvernay

Gibson Energy Inc. and Baytex Energy Corp. have announced a strategic partnership to develop infrastructure in the Pembina Duvernay region, backed by a long-term take-or-pay agreement. This collaboration will enhance Gibson’s infrastructure footprint and cash flow quality while supporting Baytex’s asset development and market access. The agreement involves a $50 million investment from Gibson and is expected to be completed by the fourth quarter of 2025, potentially expanding future partnerships and infrastructure solutions.

Gibson Energy Highlights 2024 Sustainability and Safety Milestones

Gibson Energy has announced its 2024 sustainability achievements, highlighting significant progress in operational management and safety, including 8.8 million hours without a lost time injury. The company has received high ratings from global agencies, reinforcing its position as a leader in sustainability within the energy sector. Gibson remains committed to safety, innovation, and strategic growth to meet global energy demands.

Gibson Energy Achieves Record 2024 Results Despite Marketing Segment Challenges

Gibson Energy reported record financial results for 2024, driven by increased throughput at its Gateway and Edmonton terminals, alongside a strategic focus on re-contracting efforts and growth projects. Despite challenges in the Marketing segment, the company achieved a 5% dividend increase, reflecting improved cash flow stability, although it faced a decrease in net income due to higher costs associated with recent acquisitions and restructuring.

Gibson Energy Boosts Dividend Amid Strong Financial Performance

Gibson Energy Inc. announced a 5% increase in its quarterly dividend to $0.43 per common share, marking the sixth consecutive annual increase. This decision reflects the company’s strong cash flows and commitment to growth and shareholder returns, with plans to invest up to $200 million in growth capital and share repurchases in 2025.

Gibson Energy Announces CFO Transition with Riley Hicks Taking Role

Gibson Energy announced the transition of its Chief Financial Officer role, with Sean Brown stepping down and Riley Hicks taking over the position. Riley Hicks, who has been with Gibson since 2018 and held various leadership roles, is expected to drive Gibson’s financial strategy forward, enhancing shareholder value and positioning the company for future successes.

Gibson Energy Sets Date for 2024 Financial Results Release

Gibson Energy has announced the release date for its 2024 fourth quarter and year-end financial results, scheduled for February 18, 2025. The company will discuss these results in a conference call and webcast on February 19, 2025, signaling its commitment to transparency and providing insights into its operations and financial health.