BMO Capital Reiterates Their Hold Rating on Gibson Energy

By Ryan Adsit

Gibson Energy (TSX: GEI), the Materials sector company, was revisited by a Wall Street analyst on September 11. BMO Capital’s analyst Benjamin Pham reiterates their Hold rating on the shares, with a C$18 price target.

According to, Pham is a 5-star analyst with an average return of 9.5% and a 79.1% success rate. Pham covers the Utilities sector, focusing on stocks such as Brookfield Renewable Energy, Atlantic Power Corp, and Pattern Energy.

Currently, the analyst consensus on Gibson Energy is Moderate Buy and the average price target is C$19.50, representing an 8.1% upside.

In a report issued on September 11, Scotiabank also maintained a Hold rating on the stock with a C$19 price target.

Based on Gibson Energy’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of C$1.48 billion and GAAP net loss of C$5.52 million. In comparison, last year the company earned revenue of C$1.12 billion and had a GAAP net loss of C$134 million.

Gibson Energy, Inc. engages in the movement, storage, blending, processing, marketing, and distribution of crude oil, condensate, natural gas liquids, water, oilfield waste, and refined products. It operates through the following segments: Terminals and Pipelines; Environmental Services; Truck Transportation; Propane and NGL Marketing and Distribution; Propane and NGL Marketing and Distribution; and Marketing. The Terminals and Pipelines segment includes fee-based storage and terminalling services and tariff-based pipeline services for crude oil, condensate and refined products. The Environmental Services segment provides environmental and production services, such as emulsion hauling and treating, water hauling and disposal services, and oilfield waste management, as well as exploration support services and accommodation facilities to the oil and gas industry. The Truck Transportation segment offers hauling services for crude oil, condensate, propane, butane, asphalt, sulfur, petroleum coke, gypsum, emulsion, waste water and drilling fluids, as well as hydrovac services. The Propane and NGL Marketing and Distribution segment comprises of industrial propane distribution operation and a wholesale business that includes wholesale propane distribution and an NGL marketing business. The Processing and Wellsite Fluids segment processes crude oil and markets variety of products, including road asphalt, roofing flux, frac oils, light and heavy straight run distillates, combined vacuum gas oil, oil based mud product and tops. The Marketing segments consists of purchasing, selling, storing, and blending of crude oil and condensate, providing aggregation services to producers and earning margins through aggregation and capturing quality, location or time-based arbitrage opportunities. The company was founded on April 21, 2011 and is headquartered in Calgary, Canada.

The company’s shares closed on Wednesday at C$18.04.