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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (145523)4/27/2023 3:58:09 PM
From: Goose94Read Replies (1) of 203520
 
Gibson Energy (GEI-T) top pick from Jamie Murray on BNN.ca Market Call thirsty Thursday April 27th @ 1200ET

Gibson’s strong financial profile presents an opportunity. Gibson owns a network of oil storage facilities in Edmonton and Hardisty Alberta as well as ancillary assets including a small refinery, pipelines and DRU unit. Gibson‘s yield of seven per cent equals ~60 per cent of its cash flow, very defensive given the recurring nature of its infrastructure portfolio. While growth expectations are low in the absence of new oil sands projects, Gibson will use its excess free cash flow to buy back shares. Its marketing arm has generated in excess of $100 million in EBITDA in good years and is a free option in our view. Debt levels are below target as well at 2.7x EBITDA, providing ample room for acquisitions and dividend increases.
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