Gibson Energy Inc. has announced that it will exit its non-core Environmental Services North and Wholesale Propane businesses for aggregate proceeds of approximately CAN$100 million prior to closing adjustments.
”With our exit from both the non-core Environmental Services North and Wholesale Propane businesses, we continue to execute on the strategy we outlined at the start of the year to shift towards a growth-focused, oil infrastructure business,” said Steve Spaulding, President and CEO, Gibson Energy.
“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% 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.”
Gibson has entered into a definitive agreement for the sale of its non-core Environmental Services North assets, with closing expected to occur during 1Q19, subject to the 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. The disposition of the Wholesale Propane business is expected to close in 4Q18, subject to the satisfaction of customary conditions, with the remaining inventories expected to be fully liquidated in 4Q18 and 1Q19.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/30112018/gibson-energy-exits-non-core-environmental-services-north-and-wholesale-propane-businesses/