04:34 PM EST, 12/04/2024 (MT Newswires) -- Gibson Energy ( GBNXF ) at the close of trade Wednesday said a customer for its Gateway oil export terminal in Texas agreed to a contract extension that will boost revenue from the Texas facility by 40%, while agreeing to dredge access to the site to allow Very Large Crude Carriers and Suezmax tankers to load 10% more oil.

Gibson said it expects dredging to be complete in early next year.

"Today's announcement marks a significant milestone for Gibson as we deliver upon our key Gateway acquisition objectives," said Curtis Philippon, Chief Executive Officer. "It is exciting to see our original customers renewing and expanding their position while welcoming new customers at the terminal, demonstrating the strong demand for Gateway's attractive export capabilities. Customer demand, combined with excellent operational performance and the benefits of capital improvements, including the Cactus II connection and dredging projects, has Gibson on track to achieve our previously provided guidance on EBITDA growth earlier than anticipated. We now expect Gateway to achieve its EBITDA run rate growth target of 15-20% by Q4 2025."

The oil infrastructure and marketing company also released 2025 spending guidance, budgeting up to $150 million, including $100 million of growth capital to be deployed predominantly at Gateway, and the remainder focused on other projects at and around other Gibson facilities currently.

Gibson's board approved the allocation of $60 million of replacement capital expenditures, including $20 million of capital related to turnarounds at both the Moose Jaw facility and select terminal assets.

Gibson is also launching a campaign to cut costs by more than $25 million by the end of 2025. It also said it expects to spend up to $100 million buying back shares next year.

The company's shares closed down $0.07 to $24.03 on the Toronto Stock Exchange.