Wall Street Transcript Interview with A. Stewart Hanlon, President and CEO of Gibson Energy (GEI.TO)

Wall Street Transcript

67 WALL STREET, New York - May 7, 2013 - The Wall Street Transcript has just published its High-Yield Equity Securities Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Low Treasury Yields and MLP Dividends -

Companies include: Gibson Energy (GEI.TO) and many more.

In the following excerpt from the High-Yield Equity Securities Report, the President and CEO of Gibson Energy (GEI.TO) discusses company strategy and the outlook for this vital industry:

TWST: Please give us a bit of history on Gibson.

Mr. Hanlon: Gibson has a long history. This is our 60th anniversary as a company. We were incorporated, with our first transaction, in 1953 as a private company and as a sub of Hunting PLC. Hunting is a publicly listed and family-controlled LSE-listed company. Hunting itself is 125-year old company, so we have a lot of pedigree.

In 1953, Hunting incorporated Gibson, and there is a little bit of irony that, given all the focus with respect to transporting crude oil on a railcar, our very first transaction was 357 barrels of crude which we transported by rail to a British-American refinery in Calgary.

Over the next five and half decades, we were owned by Hunting and grew fairly consistently, but fairly slowly, with relatively limited access to capital as a private sub of a family-controlled company. It got to a point where we were about 30% of the market share of Hunting in 2008, and the Hunting company made a decision to put us up for sale.

We were sold then to Riverstone LLC, a private equity firm out of New York, for about $1.3 billion. So that was the enterprise value on December 12, 2008, which is when we closed the transaction, which was a very interesting time to do a transaction.

Riverstone gave us access to the public debt markets, and so we were able to capitalize the balance sheet and put some money to work. We did a series of acquisitions through 2009 and into 2010, and got to a point in early 2011 where Riverstone was convinced that we had built enough value in the company that it was time to then look at the public option.

And so, we were taken to the market and successfully priced an IPO on June 11, 2011, at $16. Fast forward and we are looking at almost two years now since the IPO. From $1.3 billion market cap when we were sold to Riverstone, today our market...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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