Gibson Energy Refreshes Share Repurchase Strategy to Benefit Investors

Gibson Energy Enhances Shareholder Value with NCIB Renewal

Gibson Energy Inc. is taking a significant step to enhance shareholder value by renewing its Normal Course Issuer Bid (NCIB). The Toronto-based company, which operates in the liquids infrastructure sector, has officially received approval from its Board of Directors and the Toronto Stock Exchange (TSX) to expand its share repurchase program.

Details of the Normal Course Issuer Bid

Beginning September 18, 2024, Gibson Energy will have the option to repurchase up to 7.5% of its public float—approximately 9,958,026 common shares—over the upcoming year. As of mid-September 2024, the company had a total of 162,758,103 common shares outstanding. This repurchase strategy is a proactive measure aimed at maximizing returns for its shareholders.

Market Operations Under the NCIB

The NCIB allows for shares to be repurchased in open market transactions on the TSX, and other approved Canadian trading platforms. One critical aspect of this initiative is the daily purchase limit, set at 132,241 common shares. This limit is based on analyzing the average daily trading volume over a six-month period that concluded in August 2024.

Share Price Strategy

Under the terms of the NCIB, repurchases will occur at market price, ensuring that the company can optimize the value of its shares throughout the buying period. Gibson Energy recognizes that strategically utilizing its NCIB could reinforce its commitment to enhancing shareholder wealth. Although the Prior NCIB allowed for the repurchase of 9,812,193 shares between September 2023 and September 2024, the company chose not to purchase any shares during that time, emphasizing a measured approach to share repurchases.

Automation in Shares Purchase Process

To streamline its purchasing process, Gibson Energy has set up an automated purchase plan with its broker, BMO Nesbitt Burns Inc. This plan enables the company to make purchases even during regulatory restrictions or other blackout periods. This means that Gibson can be more responsive to market conditions and efficiently manage share repurchases in line with TSX regulations.

About Gibson Energy

As a leader in the liquids infrastructure industry, Gibson Energy's key operations focus on the storage, optimization, and processing of liquids and refined products. Headquartered in Calgary, Alberta, the company has established itself across North America, boasting significant terminal assets in Hardisty and Edmonton, Alberta, as well as facilities in Ingleside, Texas, and Moose Jaw, Saskatchewan. The company’s shares are traded under the symbol GEI on the Toronto Stock Exchange, allowing investors to partake in its growth initiatives.

Company Commitment towards Shareholders

Gibson Energy continues to emphasize its dedication to making informed decisions that enhance shareholder value. Through this renewal of their NCIB, the company portrays its intention to remain flexible and adaptive, navigating market demands effectively while maintaining a focus on returns for its investors.

Frequently Asked Questions

What is the purpose of Gibson Energy's NCIB?

The NCIB allows Gibson Energy to repurchase its shares to potentially enhance shareholder value by reducing the number of shares outstanding.

How many shares can Gibson Energy buy back under the new NCIB?

The company may repurchase up to 9,958,026 shares, approximately 7.5% of its public float.

What is the daily purchase limit for Gibson Energy's NCIB?

The daily purchase limit is set at 132,241 common shares, representing 25% of the average daily trading volume over the prior six months.

What influences Gibson's decision on when and how many shares to repurchase?

The decision is influenced by market conditions, price, financial strategy, and adherence to their financial governing principles.

What automated processes have been implemented for share repurchases?

Gibson has an automatic purchase plan with BMO Nesbitt Burns Inc., allowing share purchases during times that would typically restrict them due to regulations.

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