Gibson Energy has taken a large step towards its asset divestiture target with the sale of its energy services businesses in the U.S.
In late January the company said that it planned to raise $275 million to $375 million in non-core asset sales over the next two years as it shifts focus towards oil infrastructure.
On Monday Gibson said it has entered into two separate definitive agreements for the sale of its U.S. environmental services and U.S. seismic assets, for approximately $125 million.
Last year the company completed the $435-million sale of its industrial propane business and announced the sale of its U.S. environmental services arm.
The company’s oil terminals form the core of its go-forward strategy in Canada, while in the U.S. it will focus on injection and gathering systems in the SCOOP/STACK basins in Oklahoma.
“While the U.S. Environmental Services business was performing well with visible growth opportunities, it did not complement our core assets and there was limited visibility to converting customer relationships into infrastructure investment opportunities,” Gibson CEO Steve Spaulding said in a statement.
“Proceeds of the divestitures will be reinvested into our tankage and pipeline infrastructure projects currently under construction, with the sale representing the first step in a series of non-core divestitures that will fully fund our growth capital expenditures through the end of 2019.”