TSX:GEI - Post Discussion
Post by
Ariahp on Oct 15, 2021 11:53am
Gibson Energy Hold Rating Reiterated by TPH
| Gibson Energy Hold Rating Reiterated by TPH as Its ESG Goals Receive an AAA Rating |
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09:54 AM EDT, 10/15/2021 (MT Newswires) -- Tudor, Pickering and Holt on Friday reiterated its hold rating on the shares of Gibson Energy (GEI.TO) and its C$23.00 target price after the oil infrastructure and processing company said it was the only North American oil and gas refining, marketing, transportation and storage industry to receive an AAA rating from MSCI ESG Ratings. "Gibson Energy announced it received recognition as a global ESG leader by achieving the top 'AAA' rating by MSCI and released a plan to achieve Net Zero Scope 1 and 2 greenhouse gas emissions by 2050," analyst Matt Taylor said in a note.
"The company will maintain previously announced GHG goals in the interim with a targeted reduction in overall, processing, and storage & handling emission intensity ranging from 20-95% by 2030, while Scope 2 absolute emissions will be reduced by 100% in the same timeframe and Moose Jaw by another 15% by 2025.
The stock outperformed midstream peers yesterday after the announcement (+4% vs AMNA) despite no incremental project sanctioning or clarity on how the plan may incorporate new energy transition technologies such as procurement of green energy, renewable diesel, or carbon capture and sequestration.
Ongoing initiatives like the previously disclosed fuel switching opportunity under review at Moose Jaw will likely be part of the strategy, while the company plans to remain disciplined and evaluate new opportunities using the typical return lens (5-7 EV/EBITDA). Overall, we view the release constructively as Gibson positions itself as an ESG leader but ultimately view the reaction as overdone given the longer-term implications of the plan. |
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