Gibson Energy Inc. sells wholesale propane assets

November 28, 2018 By    

Gibson Energy Inc. sold its non-core Environmental Services North and wholesale propane businesses for about $100 million prior to closing adjustments.

Gibson entered into a definitive agreement for the sale of its non-core Environmental Services North assets, with closing expected to occur during the first quarter of 2019, subject to receipt of all necessary approvals and satisfaction of customary conditions.

The company’s exit from the NGL wholesale business includes the sale of certain assets and inventory to a third party and the winding down of remaining inventories, Gibson reports. The disposition of the wholesale propane business is expected to close in the fourth quarter of 2018, subject to the satisfaction of customary conditions, with the remaining inventories expected to be fully liquidated in the fourth quarter of 2018 and the first quarter of 2019.

“With our exit from both the non-core Environmental Services North and wholesale propane businesses, we execute on the strategy we outlined at the start of the year to shift towards a growth-focused, oil infrastructure business,” says Steve Spaulding, president and CEO of Gibson. “Proceeds of our non-core divestitures are being reinvested into our tankage and pipeline infrastructure projects currently under construction, which will provide long-term, high-quality cash flows that will fully fund our target 10 percent distributable cash flow per share growth rate. The remaining divestiture of the Canadian Truck Transportation business is ahead of schedule relative to our initial outlook of mid-2019, and we continue to expect that aggregate proceeds from the sale of our non-core businesses will be in the upper end of our target range.”

*Featured image: iStock.com/designer491

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About the Author:

Clara Richter is the managing editor at LP Gas magazine. Contact her at crichter@northcoastmedia.net or 216-363-7920.

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