Gibson Energy Inc. Stock Forecast:
According to 15 analysts, the average target price for Gibson Energy Inc. stock over the next 12 months is CAD 24.24. The average analyst rating for the company is “Hold.” Stock Target Advisor‘s own analysis suggests a slightly bullish outlook for Gibson Energy Inc., based on 11 positive signals and 6 negative signals. As of the last closing, the stock price of Gibson Energy Inc. was CAD 21.43. Over the past week, the stock price has decreased by -3.03%, over the past month by -5.18%, and over the last year by -15.83%.
Analysts Coverage Change:
Credit Suisse Upgrades Gibson Energy Inc (GEI:TSX). to an “Outperform” rating and maintains the target price of $25.50 for the stock.
Gibson Energy News:
Gibson Energy has successfully authorized the construction of two impressive tanks, which will add a substantial capacity of 870,000 barrels to their renowned Edmonton Terminal. This significant expansion is backed by a remarkable 15-year take-or-pay contract agreement with Cenovus Energy Inc., a reputable senior integrated oil sands customer possessing an investment-grade status.
“We are delighted with the approval of two new tanks at our esteemed Edmonton Terminal, as this will not only enhance our already exceptional infrastructure revenues but also drive sustained growth in distributable cash flow per share,” stated Steve Spaulding, President and Chief Executive Officer of Gibson Energy. “With this authorization, we are currently advancing the construction of three tanks at our Edmonton Terminal, representing an impressive storage capacity of 1.3 million barrels. In conjunction with other notable projects across our diverse asset base, we now have a clear path to achieve up to $150 million in growth capital for 2023, while also carrying additional capital commitments into 2024.”
The ambitious project encompasses the construction of two state-of-the-art 435,000 barrel tanks, accompanied by substantial auxiliary infrastructure at the Edmonton Terminal. This development is projected to be completed and operational by late 2024, showcasing Gibson Energy’s commitment to efficient and timely execution.
Elevated 2023 Capital Guidance
Due to the augmented capital expenditures resulting from the authorization of the new tankage in Edmonton, coupled with the implementation of numerous smaller growth initiatives throughout their asset portfolio, Gibson Energy has revised its 2023 growth capital expenditure guidance to reach up to an impressive $150 million. It is important to note that a significant majority of these underlying projects have already received the necessary authorizations, highlighting the company’s proactive approach in capital allocation and strategic planning.
