Gibson Energy Buys South Texas Gateway Oil Terminal For $1.1B

Gibson Energy, Inc. GBNXF plans to acquire Ingleside-based South Texas Gateway oil terminal for $1.1 billion in cash.

The acquisition expands Gibson's footprint with connectivity to the Permian basin and provides a platform for future infrastructure growth with existing and new customers.

The company said this transaction strengthens Gibson's infrastructure revenues and bolsters the continued growth of distributable cash flow per share. 

"The transaction implies a multiple of less than 9x the projected forward Adjusted EBITDA and is immediately accretive, with DCF per share accretion in the mid-teens," Gibson said in a release.

South Texas Gateway is one of the most competitive liquids terminal and export facilities globally, with direct pipeline connections to low-cost, long reserve-life resource supply and very large crude carrier capabilities. 

The terminal achieved record volumes of over 670,000 bbl/d of oil in March 2023. 

"Since establishing Gibson as a leading liquids-focused infrastructure company, we have been looking for an opportunity that is a strategic fit, while enhancing our scale and diversity," said Steve Spaulding, President and Chief Executive Officer.

Following the deal, the company's net debt to Adjusted EBITDA ratio will be approximately 3.2x, within the targeted 3.0x to 3.5x range. The deal will close in the third quarter of 2023.

Price Action: GBNXF shares traded lower by 3.30% at $15.55 on the last check Thursday.