Gibson Energy Enhances its Sustainability Leadership Through the Closing of its ...
All financial figures are in Canadian dollars unless otherwise noted
CALGARY, Alberta, April 19, 2021 (GLOBE NEWSWIRE) -- Gibson Energy Inc. announced today that it has become the first public energy company in North America to fully transition its principal syndicated revolving credit facility into a sustainability-linked revolving credit facility.
“As part of our efforts to embed the principles of Sustainability and ESG into all aspects of our business, we are very pleased to be first amongst not only our Canadian midstream energy infrastructure peers, but also all public energy companies in North America, to fully transition our principal credit facility to a sustainability-linked credit facility,” said Sean Brown, Senior Vice President and Chief Financial Officer. “This is further evidence of our commitment to reaching our Sustainability and ESG targets, as key targets from each of the three pillars of ESG will now also directly impact our financing costs. At the same time, by extending the maturity of our facility to a full five years into 2026, we ensure we maintain access to ample liquidity to continue to execute our business, fund the debt portion of our growth capital and maintain sufficient additional capacity to comfortably navigate through any environment we may encounter over the next several years.”
Sustainability-Linked Revolving Credit Facility
The new Sustainability-Linked 5-Year, $750 million Revolving Credit Facility includes terms that reduce or increase the borrowing costs as Sustainability and ESG targets are met or missed. The performance determinants are consistent with the priorities and objectives Gibson recently announced in its expanded ESG and Sustainability targets, and are comprised of:
- Environmental: the reduction of Scope 1 and Scope 2 GHG emissions intensity by 15% by 2025
- Social: increasing the representation of women in the workforce to 40% – 42% as well as racial and ethnic minority representation in the workforce to 21% – 23% by 2025
- Governance: increasing the representation of women on the Board to at least 40% as well as at least one member of the Board identifying as racial or ethnic minority and/or Indigenous by 2025
Additional ESG and Sustainability Highlights
Gibson is pleased to announce that its continued efforts on the ESG and Sustainability front have been recently recognized by MSCI ESG Research LLC through their assignment of an “AA” rating of Gibson, which represents the highest ranking among the Company’s North American peer group.
Gibson Energy Inc. (“Gibson” or the “Company”) (TSX: GEI) is a Canadian-based oil infrastructure 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 include the Moose Jaw Facility and an infrastructure position in the U.S.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.
Certain statements contained in this press release constitute forward-looking information and statements (collectively, “forward-looking statements”). These statements relate to future events or future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “target”, “commitment”, “maintain”, “will”, “extend”, and similar expressions are intended to identify forward-looking statements. Forward-looking statements included or referred to in this press release include, but are not limited to statements with respect to: Gibson’s Sustainability and ESG targets and commitment to reaching such targets, the effect of Gibson’s Sustainability and ESG targets on its financing costs; the maturity of Gibson’s credit facility; Gibson’s maintained access to liquidity and the sufficiency thereof to execute its business and fund the debt portion of its capital growth; and Gibson’s ability to navigate its business and economic environment.
These statements relate to future events or Gibson’s future performance. The forward-looking statements reflect Gibson’s beliefs and assumptions with respect to, among other things, the impact of COVID-19 and governmental responses thereto on Gibson’s business; general economic and industry trends; commodity prices; capital markets; impacts of micro and macro economic factors on Gibson’s business; the governmental, regulatory and legal environment in the jurisdictions in which Gibson conducts its business; Gibson’s ability to obtain qualified and diverse personnel, owner-operators, lease operators and equipment in a timely and cost-efficient manner or at all; Gibson’s ability to achieve its Sustainability and ESG targets and the timing thereof; changes in credit ratings applicable to Gibson; operating and borrowing costs, including those associated with Gibson’s sustainability and ESG programs; the energy transition that is underway as the world shifts toward a lower carbon economy; a maintained industry focus on ESG; the societal, economic and governmental response to local, provincial, national and international events; no material defaults by Gibson’s counterparties; future capital expenditures to be made by Gibson; Gibson’s ability to obtain financing for its capital programs on acceptable terms; Gibson’s future debt levels; the impact of increasing competition on Gibson; the ability of Gibson and its joint venture partner to construct the Hardisty DRU Project as currently planned and scheduled; the impact of future changes in accounting policies on Gibson’s consolidated financial statements; Gibson’s ability to successfully implement the plans and programs disclosed in Gibson’s strategy; expectations regarding the sources of funding of growth initiatives; Gibson’s ability to generate sufficient cash flow to meet Gibson’s current and future obligations; Gibson’s dividend policy; product supply and demand; future growth in world-wide demand for crude oil and petroleum products; the impact of increasing competition on Gibson, and other assumptions inherent in management’s expectations of future operating and financial results of Gibson and other forward-looking statements identified herein.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Gibson believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. Gibson’s actual results could differ materially from those anticipated in these forward-looking statements as a result of, among other things, risks inherent in the businesses conducted by Gibson; the effect of reductions or increases in Gibson’s borrowing costs; the effect of COVID-19 and governmental responses thereto on Gibson’s business; the severity, transmission rate and resurgence of the COVID-19 virus or any variants thereof; the timing, extent and effectiveness of containment actions, including the approval, availability, effectiveness and distribution rate of vaccines; the speed and extent to which normal economic and operating conditions resume worldwide; operating costs and the accuracy of cost estimates, including those associated with our ESG and sustainability programs; the development and implementation of management’s strategy, plans, initiatives, tools and programs, including those associated with our Sustainability and ESG targets; competitive factors and economic conditions in the industries in which Gibson operates; regulatory decisions; prevailing economic conditions; the uncertain impacts of societal, economic and governmental response to local, provincial, national and international events; world-wide demand for crude oil and petroleum products; volatility of commodity prices; currency and interest rates fluctuations; product supply and demand; changes in credit ratings applicable to Gibson; exposure to counterparties and partners, including ability and willingness of such parties to satisfy contractual obligations in a timely manner; future capital expenditures; Gibson’s ability to obtain necessary regulatory approvals; the successful and timely implementation of capital projects or stages thereof; changes to Gibson’s business plans or strategy; Gibson’s ability to access various sources of debt and equity capital, generally, and on terms acceptable to Gibson; attacks by hackers and/or cyberterrorists or breaches due to employee error, malfeasance or other disruptions, and any increased risk associated with increased remote access to Gibson’s systems; Gibson’s ability to finance growth and sustaining capital expenditures; changes to Gibson’s dividend plans or strategy and other factors, many of which are beyond the control of Gibson.
Readers are cautioned that the foregoing lists are not exhaustive and actual results could differ materially from those anticipated in forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” in Gibson’s Annual Information Form dated February 22, 2021 and in other documents Gibson files from time to time with the securities authorities, available on SEDAR at www.sedar.com and the Gibson website at www.gibsonenergy.com. These statements speak only as of the date of this press release. Gibson does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Information on, or connected to, the Gibson’s website at www.gibsonenergy.com does not form part of this press release.
For further information, please contact:
Vice President, Strategy, Planning & Investor Relations
Phone: (403) 776-3146