CALGARY, Alberta, March 19, 2018 (GLOBE NEWSWIRE) — Gibson Energy Inc. (“Gibson” or the “Company”), (TSX:GEI), announced today it has entered into two separate definitive agreements for the divestiture of its U.S. energy services businesses, including U.S. Environmental Services and its U.S. seismic assets, for approximately US$96 million prior to closing adjustments or approximately $125 million at current exchange rates.
“We are very pleased to announce the sales of our U.S. Environmental Services and U.S. seismic assets, which is an important part of our shift towards an oil infrastructure focused business,” said Steve Spaulding, President and Chief Executive Officer. “While the U.S. Environmental Services business was performing well with visible growth opportunities, it did not complement our core assets and there was limited visibility to converting customer relationships into infrastructure investment opportunities. Proceeds of the divestitures will be reinvested into our tankage and pipeline infrastructure projects currently under construction, with the sale representing the first step in a series of non-core divestitures that will fully fund our growth capital expenditures through the end of 2019.”
Closing for both transactions is expected to occur during the second quarter of 2018, subject to the receipt of all necessary approvals and satisfaction of customary conditions. Gibson anticipates minimal cash taxes arising from the sales. BlackArch Partners acted as the Company’s financial advisor on these divestitures.
Gibson is a Canadian-based, dividend paying oil infrastructure growth Company with its principal businesses consisting of the storage, optimization, processing, and gathering of crude oil and refined products. Headquartered in Calgary, Alberta, the Company’s operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and also include the Moose Jaw Facility and injections stations in Texas and Oklahoma.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.