TORONTO, ON – Gibson Energy is selling all its Canadian trucking operation, and most of the fleet it operates in the U.S., as it focuses business assets on crude oil infrastructure.
Between $275 and $375 million in assets are being sold overall, with the Canadian trucking operation expected to be sold by mid 2019, and non-core U.S. trucking businesses to be sold as early as the end of this year.
“Gibson Energy will no longer be thought of as a trucking business,” president and Chief Executive Officer Steve Spaulding said in a Toronto presentation for investors, suggesting that some of the company’s assets simply don’t fit with the company’s vision for the future.
Other businesses being sold include NGL Wholesale, Canadian environmental services, and non-core injection stations in the U.S.
In reality, barely 25% of the Canadian fleet’s operation has anything to do with serving Gibson anymore.
“From a cultural standpoint, the most significant divestiture we announced today was the sale of our Canadian trucking business. Notwithstanding the fact that this business currently accounts for well less than 10% of the entire company, many people still think of Gibson as a trucking company,” said Chief Financial Officer Sean Brown. “Upon an honest review of this business, we discovered that it’s contribution to our core infrastructure segment was minimal, with over 50% of its cash flow coming right now from [hauling] sulfur and other products.”
Gibson trucking activities in the U.S. are spread across several states, everywhere from the Utica and Bakken basins to Mississippi, Louisiana, and East Texas. All that will remain after the sale will be assets to serve company activities in the Scoop/Stack basin in Oklahoma, and Permian basin in Western Texas.