Although Gibson posted 2Q results below “Street” estimates, we think the worst may be behind the Company. The decline in earnings was primarily due to lower product revenue as a result of prolonged lower commodity prices and production outages (such as the Fort McMurray fires) limiting Gibsons’ customer’s activity. Gibsons reinforced its growth capital spending guidance of $225 mm in FY2016 and between $200 mm and $300 mm in FY2017. We have lowered the 12-MTP by $1.00
04 Aug 2016
Reports 2Q16 Results; Adj. EBITDA $44 mm (FCC $46/Consensus $53 mm)
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Reports 2Q16 Results; Adj. EBITDA $44 mm (FCC $46/Consensus $53 mm)
Gibson Energy Inc. (GEI:TSE) | 0 0 1.5% | Mkt Cap: 2,392m
- Published:
04 Aug 2016 -
Author:
Steven I. Paget -
Pages:
6
Although Gibson posted 2Q results below “Street” estimates, we think the worst may be behind the Company. The decline in earnings was primarily due to lower product revenue as a result of prolonged lower commodity prices and production outages (such as the Fort McMurray fires) limiting Gibsons’ customer’s activity. Gibsons reinforced its growth capital spending guidance of $225 mm in FY2016 and between $200 mm and $300 mm in FY2017. We have lowered the 12-MTP by $1.00