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Opinions Bruce Campbell (2)
Gibson EnergyGEI.TOCOMMENTJan 14, 2015
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Energy assets valuable.
Under appreciated business.
Current share price undervalued.
Expansion into Gulf of Mexico a good long term decision.
Expecting a $20 share price.
High dividend yield not a concern.
Bill Harris, CFA
One of larger holdings in income growth portfolio.
Oil infrastructure assets valuable - hard to reproduce.
Recent acquisition of USA terminal a good business decision.
7% dividend yield very sustainable.
Jamie Murray GEI has quite a high debt level, with debt at 4X cash flow. But, its dividend payout ratio is OK at 55% (last year). Cash flow is steady, and it has been profitable since a loss in 2015. Some growth is expected over the next 24 months. We would consider the dividend 'reasonably' secure over the mid-term. It is not one that would concern us that much, but we would like to see lower debt for greater comfort. The dividend was raised in February and was not cut during the pandemic.
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Top income idea. Storage. Since oil sands aren't growing as much, growth rate has come down but cashflow remains very strong, which gives them flexibility. Reducing debt, buying back shares. Good metrics for debt and payout ratio. Dividend safe, grows 5% a year. Yield is 6.96%.
(Analysts’ price target is $25.14)Jamie Murray Hurt by higher interest rates. Boosted dividend in Q4. Quite an unlevered balance sheet. Compelling PE of about 12x, with 7% growth rate. Still works in an opaque economic environment. Catalysts for additional growth in second half of year.
Greg NewmanSimple, essential business. Tanks outside oil sands that put oil into pipelines. Amazing part of the energy complex. Has decided not to grow, therefore no market pressure from increasing capex. Will maintain profit margin through a difficult, inflationary time and compound those income streams. Great way to enhance a portfolio. Yield is 6.24%.
(Analysts’ price target is $25.64)Bill Harris, CFA
The stock has come off fairly sharp along with pretty much everything else in the energy sector. Although they may not have direct commodity exposure, the big market they deal with is transporting and if the oil companies are producing less, they will not be using this company’s services the way they have in the past. He would want to see the oil price stabilize, some type of improvement in their earnings profile, and watch for the technicals to improve before going into a name like this.