Gibson Energy Inc. · TSX:GEI
Gibson Energy — Investor Presentation (June 2023)
26 slides from Gibson Energy's investor presentation, June 2023
Slide 1: Investor Presentation June 2023
INVESTOR PRESENTATION June 2023 TSX: GEI
Slide 2: Company Snapshot
Company Snapshot Continue to build a leading liquids-focused infrastructure business GEI C$3.1B GIBSON ENERGY INVESTOR PRESENTATION TSX Listed Market Cap(1) KEY INFO ~7.0% C$4.5B Dividend Yield(1) Enterprise Value(1) 1 in 4 ~80% WCSB Barrels of 2022 Segment Profit STRONG Through GEI Terminals from I
Slide 3: Liquids Infrastructure Focused
Liquids Infrastructure Focused ~65% of Segment Profit(1) from core Terminals and ~80% Infrastructure 13.5mmbbl Existing Tankage Hardisty DRU With 50kbbl/d Inlet Capacity GIBSON ENERGY INVESTOR PRESENTATION Best-in-Class Connectivity 1.7mmbbl Existing Tankage Edmonton 3x 435kbbl Tanks Under Construct
Slide 4: 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 ~65% of Segment Profit(1) ▪ Target deploying $150 – $200mm in Liquids Infrastruc
Slide 5: Sustainability Journey
Sustainability Journey Strong foundation enables impactful and meaningful strides in the future ▪ Gibson acknowledges its role and responsibility for shaping a better tomorrow. Gibson is committed to operating sustainably and to integrating ESG considerations deeper across its organization GIBSON EN
Slide 6: Pathway to Net Zero by 2050
Pathway to Net Zero by 2050 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 GIBSON ENERGY INVESTOR PRESENTATION ▪ Remain committed to reduc
Slide 7: 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 8: 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 Grade; ACHIEVED 89% MSCI AA A Target of Racial, Ethnic Minority Employee Par
Slide 9: 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) GIBSON ENERGY INVESTOR PRESENTATION ~25% Terminals & Pipelines ~55% Terminals & Pipelines ~75% Terminals & Pipelines Terminals & Pipelines Segment Profit from
Slide 10: Segment Profit Growth
Segment Profit Growth Infrastructure has grown significantly and consistently over the past decade ▪ Significant high-grading and growth in the Infrastructure segment over time, with a realized 16% CAGR from 2011 – 2022 GIBSON ENERGY INVESTOR PRESENTATION ▪ Growth in Core Infrastructure segment for
Slide 11: 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 12: 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) GIBSON ENERGY INVESTOR PRESENTATION (C$mm) $450 Delivered DCF/sh CAGR of ~14% between 2017 – 2022 ▪ Distributable Cash Flow per share has grown at a 14% CAGR
Slide 13: 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 Infrastructure revenues from take-or-pay Cash Flows Quality of >95% at LTM Q4 2022 Contract Structure a
Slide 14: 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 Dividend ▪ Fund the Business Dividend to be fully covered by stable, long
Slide 15: 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 (total number)
Slide 16: Hardisty Terminal – Overview
Hardisty Terminal – Overview Future opportunities to grow at Hardisty at an attractive EBITDA build multiple COLD LAKE Dominant Land Position GIBSON ENERGY INVESTOR PRESENTATION N HARDISTY TOP OF ▪ Located at the heart of the Hardisty footprint HARDISTY EAST THE HILL Gibson connection to 210 mbbl/d
Slide 17: 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 1 Bitumen production from the oil sands shipped as dilbit via pipelines to Gibson’s Hardisty Terminal GIBSON ENERGY INVESTOR PRESENTATION OIL SANDS EDMONTON DRU at Hardist
Slide 18: 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 USD ▪ Further improves the Gibson’s best-in- ▪
Slide 19: Edmonton Terminal
Edmonton Terminal 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 INVESTOR PRESENTAT
Slide 20: Marketing Capabilities
Marketing Capabilities Creates value for customers and drives volumes to Gibson’s Infrastructure assets GIBSON ENERGY INVESTOR PRESENTATION Refined ▪ Refined Products leases the Moose Jaw Facility from the Infrastructure Products segment, sourcing feedstocks and marketing the refined products that a
Slide 21: 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 ▪ Continue to target investing $150 – $200mm per year over Infrastructure Sanctioned over $1B in Infrastructur
Slide 22: Appendix
APPENDIX 22 GIBSON ENERGY ESG DISCUSSION
Slide 23: Superior Long-Term Shareholder Returns
Superior Long-Term Shareholder Returns Consistent outperformance of the TSX Composite and TSX Energy indices Total Shareholder Return: Since IPO & 2018 Investor Day(1) GIBSON ENERGY INVESTOR PRESENTATION Since IPO (June 15, 2011) New Strategy Announced 250% (Investor Day 2018) 200% GEI +185% 150% 10
Slide 24: Sustainability Targets
Sustainability Targets ENVIRONMENT 2025 TARGET 2030 TARGET OVERALL GHG INTENSI T Y Reduce overall greenhouse gas intensity 15% 20% PROCESSI NG GHG INTENSI T Y TARGET Reduce aggregate greenhouse gas intensity 30% 40% GIBSON ENERGY INVESTOR PRESENTATION STORAGE & HANDLING GHG INTENSI T Y TARGET Reduce
Slide 25: Financial Position and Maturity Profile
Financial Position and Maturity Profile Leverage & Payout below target, significant available liquidity and no near-term maturities Leverage & Payout Ratios(1) Maturity Profile(2) GIBSON ENERGY INVESTOR PRESENTATION (C$mm) Net Debt to Adj. EBITDA (x) Leverage Infrastructure-only Leverage Senior $750
Slide 26: 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