CALGARY, ALBERTA--(Marketwired - July 20, 2016) - Gibson Energy Inc. ("Gibsons" or the "Company") (TSX:GEI) announced today that it has engaged RBC Capital Markets as a financial advisor to assist the Company with a potential sale of its Industrial Propane business.
"The initiation of a process to divest our Industrial Propane business is consistent with the Company's efforts to increasingly focus both investment capital and management attention on attractive growth opportunities within our Infrastructure business, including the current project backlog as well as additional projects we expect to secure shortly," said Stewart Hanlon, Gibsons' President and Chief Executive Officer. "Since entering the industrial propane market with the acquisition of James Propane in 1988, we have successfully grown the business into one of Canada's largest propane distributors, with a strategic footprint focused on oilfield applications in Western Canada. While the Company has identified further growth opportunities within this business line, allocating resources to pursue these opportunities falls outside our corporate strategy of focusing on integrated midstream solutions along the North American oil and liquids production value chain."
The Company is making a public announcement of this initiative after receiving certain unsolicited inquiries into the possible sale of the Industrial Propane business, as well as to broaden the divestment universe and maximize value for its shareholders. While there is no assurance that a transaction will be completed, the Company anticipates it would reinvest the net sales proceeds from this potential divestiture into growth opportunities within its Infrastructure business. The Company does not intend to comment further on this initiative until such time as it is appropriate to make a public announcement, if any.
Gibsons is a Canadian-based midstream energy company with operations in most of the key hydrocarbon-rich basins in North America. For over 60 years, Gibsons has delivered integrated midstream solutions to customers in the oil and gas industry. With headquarters in Calgary, Alberta, the Company's North American operations include the storage, blending, processing, transportation, marketing and distribution of crude oil, natural gas liquids and refined products. The Company also provides oilfield waste and water management services. Gibsons is the second largest industrial propane distribution company operating in Canada under the Canwest Propane and Stittco Energy brands.
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements") including, but not limited to, statements concerning the Company's potential disposition of its Industrial Propane business and the use of proceeds thereof, additional projects and management's expectation with respect to the Company's business and financial prospects and opportunities. These statements relate to future events or the Company's future performance. 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. 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 news release should not be unduly relied upon. These statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements and forward-looking information attributed to third party industry sources. 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 Statements" and "Risk Factors" included in the Company's Annual Information Form dated March 1, 2016 as filed on SEDAR and available on the Gibsons website at www.gibsons.com.