Gibson Energy Inc. · TSX:GEI
Gibson Energy — Investor Presentation (November 2023)
30 slides from Gibson Energy's investor presentation, Nov 30, 2023
Slide 1: Investor Presentation December 2023
INVESTOR PRESENTATION DECEMBER 2023 September 2023 TSX: GEI TSX: GEI TSX: GEI
Slide 2: Gibson Energy Snapshot
Gibson Energy Snapshot (TSX: GEI) Gibson is a diversified North American energy infrastructure platform underpinned by high quality terminal assets GIBSON ENERGY INVESTOR PRESENTATION Corporate Leading North American Information Terminals Platform C$3.3B C$6.0B ~7.6% 1 in 4 2nd >25 >85% Largest Crud
Slide 3: Liquids Infrastructure Focused
Liquids Infrastructure Focused ~70% of Segment Profit from core Terminals and ~85% Infrastructure(1) 13.5 mmbbl Existing Tankage Hardisty DRU With 50 kbbl/d Inlet Capacity GIBSON ENERGY INVESTOR PRESENTATION Edmonton Hardisty Best-in-Class Connectivity Moose Jaw 8.6 mmbbl Existing Tankage Gateway 2.
Slide 4: Strategically Located Terminal Assets
Strategically Located Terminal Assets Over 25 mmbbl of total terminal capacity at strategically situated North American hubs Hardisty Edmonton Ingleside GIBSON ENERGY INVESTOR PRESENTATION 13.5 mmbbl 3.0 mmbbl(1) 8.6 mmbbl ▪ Leading market position in the heart of ▪ Strategically situated with respe
Slide 5: Focused Strategy
Focused Strategy Premier liquids infrastructure assets to underpin compelling per share growth over time Leverage Terminals Position Complementary Growth GIBSON ENERGY INVESTOR PRESENTATION Liquids ▪ Terminals represent ~70% of PF Segment Profit(1) ▪ Target deploying $150mm – $200mm in Infrastructur
Slide 6: Complete Transformation of Business
Complete Transformation of Business Repositioned from diverse mix of business lines to focused energy infrastructure 2014(1) 2017(1) 2022(2) 2022 PF(3) GIBSON ENERGY INVESTOR PRESENTATION ~25% Terminals & Pipelines ~55% Terminals & Pipelines ~75% Terminals & Pipelines ~80% Terminals & Pipelines Term
Slide 7: Segment Profit Growth
Segment Profit Growth Growth in Segment Profit(1,2,3,4) Pro Forma Gibson ~158% (~21% CAGR) in Core Infrastructure Transaction immediately grows ✓ Infrastructure expected to account GIBSON ENERGY INVESTOR PRESENTATION (C$mm) Segment Profit Core Infrastructure Segment for 85% of Segment Profit $800 fr
Slide 8: Infrastructure Revenue by Contract Structure
Infrastructure Revenue by Contract Structure Delivered ~20% Infrastructure Revenue CAGR since 2011 driven by Take-or-Pay revenues ▪ Growth in proportion of Take-or-Pay revenues within Infrastructure reflective of capital discipline and adherence to financial governing principles over the past decade
Slide 9: Distributable Cash Flow Growth
Distributable Cash Flow Growth Sustained growth in core Infrastructure driving meaningful DCF per share growth Growth in DCF and DCF/Share (1,2) ▪ Distributable Cash Flow per share has grown at a 16% CAGR since the transformation of the business began in 2017(1,2) GIBSON ENERGY INVESTOR PRESENTATION
Slide 10: Financial Governing Principles
Financial Governing Principles Gibson maintains a strong pro forma financial position by adhering to existing targets Committed Target Pro Forma Metrics GIBSON ENERGY INVESTOR PRESENTATION Highly Secured >80% of Infrastructure revenues from take-or-pay and high-quality >95% PF Infrastructure revenue
Slide 11: Long-Term Capital Allocation Priorities
Long-Term Capital Allocation Priorities Priority remains to fund the business and then return capital when business is fully-funded ▪ Target payout ratio of 70% – 80% over the long-term GIBSON ENERGY INVESTOR PRESENTATION Fund the Business Fund Dividend ▪ Dividend to be fully covered by stable, long
Slide 12: Hardisty Terminal – Overview
Hardisty Terminal – Overview Future opportunities to grow at Hardisty at an attractive EBITDA build multiple Dominant Land Position COLD LAKE GIBSON ENERGY INVESTOR PRESENTATION N ▪ Located at the heart of the Hardisty footprint HARDISTY TOP OF THE HILL Gibson connection to HARDISTY EAST 210 mbbl/d
Slide 13: Hardisty Terminal – Best-in-Class Connectivity
Hardisty Terminal – Best-in-Class Connectivity Replicating Gibson’s competitive position not possible and is cost prohibitive Superior Connectivity Inbound Pipeline Connections(1) GIBSON ENERGY INVESTOR PRESENTATION ▪ Flexibility offered by Gibson’s existing best-in-class connectivity provides a (to
Slide 14: DRU at Hardisty – Overview
DRU at Hardisty – Overview High-quality infrastructure project leveraging and extending Hardisty position First DRU in WCSB Extension of Hardisty Attractive Future Expansions GIBSON ENERGY INVESTOR PRESENTATION ▪ 50%/50% joint venture between Gibson and ▪ Further improves the Gibson’s best-in- ▪ See
Slide 15: Gateway Terminal – Overview
Gateway Terminal – Overview Premier Asset with Unique Commercial, Operational and Locational Advantages Ingleside Strategically Advantaged vs. Inner Harbor GIBSON ENERGY INVESTOR PRESENTATION Second largest U.S. crude export terminal by throughput(1) Ingleside Nueces Bay Port Aransas Gateway is curr
Slide 16: Gateway Terminal – Best-In-Class Export Capabilities
Gateway Terminal – Best-In-Class Export Capabilities Storage and Export Operations with VLCC Capabilities– Highly Complementary to Gibson’s Existing Business Key Asset Details GIBSON ENERGY INVESTOR PRESENTATION ▪ Ingleside, Texas (Port of Corpus Christi) Location ▪ Closest terminal to Corpus Christ
Slide 17: Permian Production to Drive Future Export Growth
Permian Production to Drive Future Export Growth U.S. Export Macro Favourable for the Re-contracting Strategy Historical Permian Production(1) U.S. Export Demand by Geography(1) U.S. Crude Export Volumes(2) GIBSON ENERGY INVESTOR PRESENTATION (mmbbl/d) (mmbbl/d) (mmbbl/d) Asia Europe Other Ingleside
Slide 18: Edmonton Terminal – Overview
Edmonton Terminal – Overview Attractive terminal position with three tanks under construction ▪ Long-term MSA in place with principal customer at the terminal that also contemplates the potential future sanction of additional infrastructure on a fixed-fee basis and 25-year term GIBSON ENERGY INVESTO
Slide 19: Marketing Capabilities
Marketing Capabilities Creates value for customers and drives volumes to Gibson’s Infrastructure assets ▪ Refined Products leases the Moose Jaw Facility from the GIBSON ENERGY INVESTOR PRESENTATION Refined Products Infrastructure segment, sourcing feedstocks and marketing the refined products that a
Slide 20: Sustainability Journey
Sustainability Journey Strong foundation enables impactful and meaningful strides in the future ▪ Gibson acknowledges its role and responsibility in shaping a better tomorrow ▪ The company is committed to operating sustainably and to integrating ESG considerations deeper across the organization GIBS
Slide 21: Pathway to Net Zero by 2050
Pathway to Net Zero by 2050(1) Committed to continue embedding sustainability and ESG in all areas of the business ▪ Gibson works hard to minimize emissions and energy use while promoting resource conservation and environmental stewardship ▪ Remaining committed to reducing environmental impact by me
Slide 22: Priority on Health and Safety
Priority on Health and Safety Focus on health and safety is yielding results ▪ Gibson is committed to continually improving its safety performance, enhancing its safety culture and promoting health and wellness ▪ Gibson has a dedicated Board Health and Safety Committee that is responsible for overse
Slide 23: Sustainability Performance
Sustainability Performance Top ESG rankings from third-party providers with continued progress towards targets ESG Ratings Dashboard(1,2) AAA A- MSCI Rating 2022 CDP Score GIBSON ENERGY INVESTOR PRESENTATION AAA AAA is best ACHIEVED Grade; 89% MSCI AA A Target of Racial, Ethnic Minority Employee Par
Slide 24: Appendix
APPENDIX 24 GIBSON ENERGY INVESTOR PRESENTATION
Slide 25: Superior Long-Term Shareholder Returns
Superior Long-Term Shareholder Returns Consistent outperformance of the TSX Composite and TSX Energy indices Total Shareholder Return: Since IPO & 2018 Investor Day(1) GIBSON ENERGY INVESTOR PRESENTATION Since IPO (June 15, 2011) New Strategy Announced 250% (Investor Day 2018) GEI 200% +172% 150% TS
Slide 26: Financial Position and Maturity Profile
Financial Position and Maturity Profile Leverage & Payout below target, significant available liquidity and no near-term maturities Leverage & Payout Ratios(1) Maturity Profile(3) GIBSON ENERGY INVESTOR PRESENTATION Leverage (C$mm) Net Debt to Adj. EBITDA (x) Infrastructure-only Leverage 5.0x Senior
Slide 27: Sustainability Targets
Sustainability Targets ENVIRONMENT 2025 TARGET 2030 TARGET OVERALL GHG INTENSI T Y Reduce overall greenhouse gas intensity 15% 20% PROCESSI NG GHG INTENSI T Y TARGET Reduce aggregate greenhouse gas intensity 30% 40% GIBSON ENERGY INVESTOR PRESENTATION STORAGE & HANDLING GHG INTENSI T Y TARGET Reduce
Slide 28: Forward-Looking Statement Notice
Forward-Looking Statement Notice Definitions Scope 1 emissions are direct emissions from facilities owned and operated by Gibson. Scope 2 emissions are indirect emissions from the generation of purchased energy for Gibson’s owned and operated facilities. Scope 3 emissions are indirect emissions not
Slide 29: Specified Financial Measures
Specified Financial Measures Specified Financial Measures This presentation contains references to certain non-IFRS and non-U.S. GAAP financial measures and ratios and industry measures that are used by the Company, as indicators of financial performance. These measure include; Adjusted EBITDA, Net
Slide 30: Specified Financial Measures
Specified Financial Measures Reconciliation of non-GAAP financial measures Presentation of Pro Forma Financial Information Pro forma adjusted EBITDA reconciliation to the nearest GAAP measure, Net Income, for the Corporation and STLLC: The pro forma financial information referred to in this presenta
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