Gibson Energy (GEI) AI Stock Analysis

• Market Cap: $3.49B
• Dividend Yield: 7.71%
• Average Volume (3M): 924.54K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.77
• Revenue Growth: 6.95%
• EPS Growth: -35.38%
• Country: CA
• Employees: 460
• Sector: Energy
• Sector Strength: 50
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.94
• Shares Outstanding: 163,300,000
• 10 Day Avg. Volume: 988,944
• 30 Day Avg. Volume: 924,545
• 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: $26.00
• Price Target Upside: 20.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Gibson Energy's overall stock score reflects robust financial performance and strategic growth initiatives. The record EBITDA and strong dividend policy underscore financial strength, although technical indicators suggest caution due to current bearish trends. High dividend yield adds appeal for income investors, despite premium valuation.

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 Projections

The Gateway terminal's EBITDA is expected to increase by 15-20% by the end of 2025, 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.

Stock Rating

The downgrade from an Overweight to a Neutral rating reflects a more balanced risk/reward profile after key catalysts have played out.

Gibson Energy Business Overview & Revenue Model

Company Description

Gibson Energy Inc. (GEI) is a leading North American midstream oilfield service company headquartered in Calgary, Alberta, Canada. The company operates primarily in the sectors of crude oil storage, transportation, blending, and marketing. Gibson Energy's core offerings include terminal and pipeline infrastructure, truck transportation, and marketing services for crude oil and refined products. The company is known for its extensive network of terminals and pipelines that facilitate the safe and efficient movement of energy products across Canada and the United States.

How the Company Makes Money

Gibson Energy makes money through a diverse revenue model centered around its infrastructure and logistics services. The company's key revenue streams include fees from storage and terminal services, where it charges customers for the use of its extensive tankage facilities. Additionally, transportation services generate revenue as Gibson Energy offers truck and pipeline transportation for crude oil and refined products. The marketing segment contributes to earnings by buying, selling, and blending crude oil and refined products, leveraging market conditions to optimize margins. Significant partnerships with oil producers and refiners, as well as long-term contracts, enhance revenue stability and growth. The company also benefits from strategic locations of its assets, which provide competitive advantages in serving key production and demand regions.

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: Neutral
• Last Price: 21.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GEI, the sentiment is Neutral. The current price of 21.66 is above the 20-day moving average (MA) of 21.51, above the 50-day MA of 21.55, and below the 200-day MA of 22.21, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 86.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:GEI.

Gibson Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	77 Outperform	$30.71B	17.61	11.25%	5.18%	-19.86%	0.18%
KEY	77 Outperform	C$9.59B	19.70	17.35%	4.92%	2.89%	14.76%
ALA	76 Outperform	$11.82B	20.37	7.32%	3.03%	-4.65%	-14.19%
ENB	73 Outperform	C$137.53B	26.95	8.63%	5.81%	24.95%	-17.19%
TRP	71 Outperform	$70.44B	15.31	16.85%	5.28%	5.31%	61.02%
GEI	68 Neutral	$3.49B	22.84	16.36%	7.71%	6.95%	-35.38%
Sector *	55 Neutral	$7.03B	3.43	-6.29%	6.02%	-0.15%	-51.34%

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.