Press Release

DBRS Morningstar Assigns Rating of BBB (low), Stable, to Gibson Energy Inc.’s $650 Million Medium-Term Notes

Natural Resources
July 14, 2020

DBRS Limited (DBRS Morningstar) assigned a rating of BBB (low) with a Stable trend to Gibson Energy Inc.’s (Gibson or the Company) $650 million Medium-Term Notes (the Notes) offering, comprising $325 million 2.45% Notes due July 14, 2025, and $325 million 2.85% Notes due July 14, 2027. The Company intends to use the net proceeds from the sale of the Notes to redeem its outstanding $600 million 5.25% Senior Unsecured Notes due July 15, 2024; to reduce outstanding indebtedness under its revolving credit facility; and for general corporate purposes. The rating assigned to the Notes is based on the ratings of other already-outstanding series of the Notes of the Company.

Gibson’s ratings are supported by relatively stable and contracted cash flows from the Company’s infrastructure assets, primarily crude oil storage terminals and gathering pipelines, and a strong competitive position. Gibson’s ratings are constrained by earnings volatility in its Marketing segment, lack of geographic diversification, and a high dividend payout ratio.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at

All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Pipeline and Diversified Energy Industry (November 26, 2020), DBRS Morningstar Criteria: Rating Corporate Holding Companies and Parent/Subsidiary Rating Relationships (November 25, 2020), and DBRS Morningstar Criteria: Guarantees and Other Forms of Support (January 22, 2020), which can be found on under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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