Gibson Energy Inc. · TSX:GEI
Gibson Energy — Investor Presentation (August 2021)
29 slides from Gibson Energy's investor presentation, August 2021
Slide 1: Gibson Energy Investor Presentation August 2021
GIBSON ENERGY I N V E S T O R P R E S E N TAT I O N AUGUST 2021
Slide 2: Company Snapshot
Company Snapshot Continue to build a leading oil-focused infrastructure business TOUCH GEI GIBSON ENERGY INVESTOR PRESENTATION $4.7B 1 IN 4 BARRELS TSX ENTERPRISE IN THE LISTED VALUE ( 1) WCSB #1 A- RANKED 2020 CDP SCORE ESG SCORE HIGHEST AMONG IN PEER DIRECT PEER GROUP ( 2) GROUP ~90% TERMINALS ~80
Slide 3: Oil Infrastructure Focused
Oil Infrastructure Focused ~70% of 2020E Consolidated Adjusted EBITDA from core Terminals and ~80% Infrastructure GIBSON ENERGY INVESTOR PRESENTATION ~80% Infrastructure ~70% Terminals EDMONTON HARDISTY TERMINAL TERMINAL 1.7 MMBBL 13.5 MMBBL E XISTIN G STORAGE E XISTIN G STORAGE 2020 MOOSE DRU Adj.
Slide 4: Focused Strategy
Focused Strategy Premier oil infrastructure assets to underpin DCF per share and dividend growth Leverage Terminals Position Complimentary Growth GIBSON ENERGY INVESTOR PRESENTATION ▪ Terminals represent ~70% of ▪ Target deploying $150 – $200mm in Consolidated Adjusted EBITDA(1) Oil Infrastructure c
Slide 5: ESG and Sustainability Journey
ESG and Sustainability Journey Strong foundation enables impactful and meaningful strides in the future ▪ Focusing near-term efforts on establishing dedicated governance and oversight, improving disclosure and transparency as well as concentrating actions on areas most relevant to both stakeholders
Slide 6: Sustainability Performance
Sustainability Performance Top ranked ESG performance from third-party providers MSCI ESG Rating(2) 25% WINNER GIBSON ENERGY INVESTOR PRESENTATION (Ranked by grade; AAA is best) #1 RANKED DECREASE IN CALGARY AAA PER B ARREL CHAM B ER ATB AA ESG SCORE IN EM ISSION COM M UNITY A PEER GR OUP (1) IN TEN
Slide 7: Complete Transformation of Business
Complete Transformation of Business Repositioned from diverse mix of business lines to focused energy infrastructure 2014(1) 2017(1) 2020(2) GIBSON ENERGY INVESTOR PRESENTATION ~75% Terminals & ~25% Terminals & Pipelines ~55% Terminals & Pipelines Pipelines Adjusted EBITDA(1) From T&P and Infrastruc
Slide 8: Financial Governing Principles
Financial Governing Principles Committed to maintaining a strong financial position by managing to key targets Committed Target Performance GIBSON ENERGY INVESTOR PRESENTATION High Quality >80% of Consolidated Adjusted EBITDA from take- Cash Flows Contract ~80% in 2020 Quality of or-pay and high-qua
Slide 9: Funding Position and Maturity Profile
Funding Position and Maturity Profile Fully-funded, significant available liquidity and no maturities of size near-term ▪ Fully-funded for all sanctioned capital, with internal funding capacity well in excess of sanctioned capital ▪ At June 30, 2021, had access to over $780mm in liquidity through th
Slide 10: Adjusted EBITDA & DCF by Contract Structure
Adjusted EBITDA & DCF by Contract Structure Consolidated Adjusted EBITDA and cash flow heavily weighted to high quality businesses ▪ Through divesting non-core, commodity exposed businesses, Gibson has significantly improved its weighting to higher quality contract structures, resulting in the highe
Slide 11: Counterparty Credit Exposure
Counterparty Credit Exposure Infrastructure accounts for majority of Consolidated Adj. EBITDA; terminals ~90% IG customers Nature of Credit Exposures by Business Segment(1) ▪ Infrastructure represented ~80% of 2020 Consolidated Adjusted EBITDA and is backed by GIBSON ENERGY INVESTOR PRESENTATION 100
Slide 12: Strong Financial Position
Strong Financial Position Leverage and payout below target, with headroom on Infrastructure-only targets ▪ Long-term funding model and continued delivery of the strategy is not contingent on cyclical cash flows ▪ LTM Q2 2021 Infrastructure-only leverage(1) of 3.5x and Infrastructure-only payout(2) o
Slide 13: Contract Quality & Balance Sheet Comparison
Contract Quality & Balance Sheet Comparison Attractive contract quality and best-in-class leverage relative to peer group Proportion Take-or-Pay & Fee for Service(1) Net Debt / LTM Adjusted EBITDA(2) GIBSON ENERGY INVESTOR PRESENTATION (%) (x) 100% 6.0x 80% 4.0x 60% 40% 2.0x 20% 0% 0.0x Peer A Peer
Slide 14: Long-Term Capital Allocation Priorities
Long-Term Capital Allocation Priorities Near-term focus on remaining fully-funded and preserving balance sheet strength ▪ Target payout ratio of 70% – 80% over the long-term GIBSON ENERGY INVESTOR PRESENTATION Fund Dividend ▪ Fund the Business Dividend to be fully covered by stable, long-term Infras
Slide 15: Hardisty Terminal – Best-in-Class Connectivity
Hardisty Terminal – Best-in-Class Connectivity Replicating Gibson’s competitive position not possible and cost prohibitive ▪ Flexibility offered by Gibson’s existing best-in-class connectivity provides a wide moat at Hardisty ▪ Key consideration for customers as it helps production volumes reach mar
Slide 16: Hardisty Terminal – Competitive Advantages
Hardisty Terminal – Competitive Advantages Replicating Gibson’s competitive position not possible and is cost prohibitive ▪ Located at the heart of the Hardisty footprint GIBSON ENERGY INVESTOR PRESENTATION Land Position ▪ 240 acres of land holdings adjacent to existing tankage plus additional land
Slide 17: Hardisty Terminal – Overview
Hardisty Terminal – Overview Continue to grow at Hardisty at an attractive 5x – 7x EBITDA build multiple COLD LAKE GIBSON ENERGY INVESTOR PRESENTATION N HARDISTY TOP OF THE HILL Gibson connection to HARDISTY EAST 210 mbbl/d rail facility WEST HARDISTY Phase 4 TERMINAL Placed 3 tanks, or 1.5 mmbbl, i
Slide 18: DRU at Hardisty – On-Strategy Infrastructure
DRU at Hardisty – On-Strategy Infrastructure High-quality infrastructure project leveraging and extending Hardisty position First DRU in ▪ 50%/50% joint venture between Gibson and USD GIBSON ENERGY INVESTOR PRESENTATION Western ▪ Commercially underpinned by agreement with ConocoPhillips Canada for 5
Slide 19: DRU at Hardisty – Full Market Access Solution
DRU at Hardisty – Full Market Access Solution Full market access solution to support construction of first DRU in Western Canada Bitumen production from the oil sands shipped as GIBSON ENERGY INVESTOR PRESENTATION 1 OIL SANDS dilbit via pipelines to Gibson’s Hardisty Terminal EDMONTON DRU at Hardist
Slide 20: DRU at Hardisty – Location and Construction
DRU at Hardisty – Location and Construction Construction completed on-schedule and within targeted capital cost ▪ Constructed under a lump sum contract with performance guarantees for DRU facility to mitigate risk ▪ Start-up of the initial 50,000 bbl/d phase continues to progress GIBSON ENERGY INVES
Slide 21: Edmonton Terminal
Edmonton Terminal Edmonton Terminal an attractive cash flow stream, although smaller scale ▪ Edmonton Terminal benefits from advantageous positioning located next to two major refineries, access to both the CN and CP railway lines and being near both major egress pipelines GIBSON ENERGY INVESTOR PRE
Slide 22: Marketing Capabilities
Marketing Capabilities Creates value for customers and drives volumes to Gibson’s Infrastructure assets GIBSON ENERGY INVESTOR PRESENTATION ▪ Refined Products leases the Moose Jaw Facility from the Refined Infrastructure segment, sourcing feedstocks and marketing Products the refined products that a
Slide 23: Adjusted EBITDA Growth
Adjusted EBITDA Growth Infrastructure has grown to represent ~80% of Consolidated Adjusted EBITDA ▪ Significant growth in the core Infrastructure Adjusted EBITDA over time, with a realized 18% CAGR from 2011 - 2020 ▪ Year over year Infrastructure Adjusted EBITDA growth in 2020 of ~$60mm, or 20%, on
Slide 24: Distributable Cash Flow Growth
Distributable Cash Flow Growth Sustained growth in core Infrastructure driving meaningful DCF per share growth Distributable Cash Flow with Illustrative Breakout by Business(1) GIBSON ENERGY INVESTOR PRESENTATION (C$mm, C$/share) $400 $2.50 Delivered DCF CAGR of ~16% between 2017A and 2020… $2.00 …w
Slide 25: Key Takeaways
Key Takeaways Continue to deliver on all facets of the strategy; will remain disciplined Delivery Since January 2018 Investor Day Go Forward Deliverables GIBSON ENERGY INVESTOR PRESENTATION Infrastructure Sanction 2 – 4 Tanks per Year ▪ Continue to target investing $150 – $200mm per (vs. 1 – 2) year
Slide 26: Appendix: Gibson Energy ESG Discussion
APPENDIX GIBSON ENERGY ESG DISCUSSION
Slide 27: Sustainability & ESG Targets
Sustainability & ESG Targets ENVIRONMENT 2025 TARGET 2030 TARGET OVERALL GHG INTENSI T Y Reduce our overall greenhouse gas intensity 15% 20% PROCESSI NG GHG INTENSI T Y TARGET Reduce our aggregate greenhouse gas intensity 30% 40% GIBSON ENERGY INVESTOR PRESENTATION STORAGE & HANDLING GHG INTENSI T Y
Slide 28: Infrastructure Growth Capital
Infrastructure Growth Capital Invested ~$1.75B in Infrastructure 2011 - 2020, including 11.5mmbl of tankage Infrastructure InfrastructureGrowth GrowthCapital CapitalExpenditures 2011 -- 2021E Expenditure 2011 2021E GIBSON ENERGY INVESTOR PRESENTATION (C$mm) $296 2021E $243 $229 $221 $219 ~$200mm $18
Slide 29: Forward-Looking Statement Notice
Forward-Looking Statement Notice The forward-looking statements contained in this presentation represent Gibson’s expectations as of the date hereof, and are subject to change after such date. Gibson disclaims any intention or obligation to update or revise any forward-looking statements whether as