RE:Good future?Beware the analysts on this one; they do not know what they're talking about when it comes to midstreamers. They're fond of telling us that "GEI isn't affected by the commodity price", and they could not be more wrong. The effect of a lengthy crash in oil price doesn't appear right away, but when it does it can be profound -- GEI's customers go out of business, and there is nothing GEI can do when that happens.
GEI is being run by very strong management (my opinion), but the market they operate in can be very nasty. GEI was in deep trouble in 2015 and 2016. Too many of their contracts were with weak counterparties who were able to extort better terms for themselves ('give us lower prices or we'll go out of business and you get nothing at all'). GEI had a lot of debt (and still does).
The situation has changed; many of the weak counterparties are dead and gone and better-quality contracting has taken their place. The current egress bottleneck has benefitted GEI immensely. Decisions taken by management since the 2015 crash have worked out well.
However, market sentiment is lagging the obvious improvements in GEI's prospects. I'd like to see the debt reduced further, say 30-50%, but the market may not notice amid fears of a pending global oil glut. I think GEI's future looks good, but the share price may take a long time to reflect that.
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Deano1961 wrote: Does anyone besides me think Gibsons has a good future?
im surprised there isn't more posts here about this company
it has great assets. Still s small company in comparison to others but good none the less. I read articles from analysts but rarely is anything written about Gibsons. I'm surprised by it. Mostly Pembina, Enbridge, IPL ect all good companies but in today's market where the producers are hurting pipeline and storage companies should thrive
i predict Gibsons will be around $27.60 by mid 2020 and over $40 in 5 years from now. But we need a new Federal government to remove road blocks though.
ive been to Hardisty many times and I'm impressed with Gibsons assets there more each time I go there
i think Gibsons would be a perfect target for a takeover as they have good assets and a good future
any thoughts??