Investor Presentation December 2015 Integrated Midstream Solutions
Corporate Profile One of Canadas oldest but newest energy infrastructure companies TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 3
Corporate Profile Incorporated 1950 Initial Public Offering 2011 TSX Symbol GEI Market Capitalization* 1.7 billion Enterprise Value* 3.0 billion Dividend per share 0.32/quarter Current Dividend yield* 9.2% TSX: GEI Gibson…
Corporate Profile Well established company Integrated capability along the midstream value chain Significant and growing fixed fee revenue streams Strong balance sheet with sufficient liquidity Offering an attractive and…
Total Shareholder Return 12% CAGR in annual distributable cash flow Cash Flow per share (2011 to 2014) 400 - 600 million in planned growth capital Growth expenditures (2016 + preliminary 2017 budget) Dividend increased five…
Operational Strategy Operate midstream infrastructure critical for oil and liquids production Touch the barrel multiple times throughout the value chain Provide integrated customer solutions Minimize direct commodity price…
Midstream Solutions for Oil and Liquids Production Gibson Energy Montney Alberta Oilsands Growth-oriented Duvernay Solutions-based Cardium Midstream energy infrastructure company Viking Shaunavon 225 operating locations…
Touch the Barrel Multiple Times TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 9
Integrated Customer Solutions Terminals Processing & Environmental Truck Transportation Marketing and Pipelines Distribution Segments Services TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 10
Integrated Customer Solutions Balance between business segments offers diversification benefits Integration between business segments enhances asset utilization LTM Q3 2015 Segment Profit Marketing 9% Terminals & Pipelines…
Growth Profile Private company history resulted in an underdeveloped asset base Executing the largest growth capital program to date in 2015 2016 growth capital plan is flexible to accommodate industry conditions Growth Capital and…
Growing through Commodity Price Cycles Four key strategies: Maintain balance sheet strength Realign cost structures Seek to capitalize on counter-cyclical M&A opportunities Maintain disciplined and flexible capital allocation…
Disciplined and Flexible Capital Allocation Maintain focus on highest risk-adjusted return projects Defer investment in activity-sensitive growth projects 2016 growth capital range of 200 300 million provides flexibility: Low end…
Terminals & Pipelines - Growth Drivers Canadian Oil Sands Development Massive resource offers low geological and geopolitical risk Long reserve life profile insulates development from near term oil price volatility Visible growth…
Terminals & Pipelines - Growth Drivers Oil Sands Diluent Demand Canadian bitumen/heavy oil production requires diluent for transportation Insufficient WCSB diluent requires industry solutions Gibsons is well positioned to offer…
Terminals & Pipelines - Overview The majority of all Alberta oil exports aggregate in Edmonton and/or Hardisty Gibsons owns and operates key terminal, blending and injection assets in both locations Hardisty terminal offers 140…
Terminals & Pipelines Hardisty Terminal Gibson Hardisty Storage Capacity 10 9 8 Investment emphasis has 7 increased current storage (mmbbl) 6 5 GEI enters public market 4 capacity by 3x since initiating 3 2 expansion…
Terminals & Pipelines Hardisty Terminal Terminal Storage Inbound Pipelines 6.0M bbls Enbridge 2,3,4 Athabasca Cold Lake Cold Lake Twin Growth Projects Bow River ECHO 2.9 M bbls storage under Bellshill Provost construction Hamilton…
Terminals & Pipelines Edmonton Terminal Polaris Diluent Pipeline Terminal Storage 0.5M bbls Growth Projects Storage under construction 0.3M bbls + 22 car rail loading facility Storage optimization project Inbound…
Environmental Services - Growth Drivers Water and Waste Management Demand 1,800 Water Production (m3) 1,600 2.9X 3.1X 1,400 Gas Production (m3 e3) Oil Production (m3) Maturing base production = increased 1,200 2.7X watercuts…
Environmental Services Growth Projects Construct and expand oil production processing, recovery and disposal (PRD) infrastructure Near-term objective to advance development stage projects to shovel ready status Long-term target to…
Environmental Services Growth Projects PRD Infrastructure: receipt of oilfield waste streams process to separate water and solid wastes recover clean crude oil for end markets disposal of residual waste Approved Approved…
Infrastructure Projects Development Timeline 2014 2015 2016 2017 PRD Waste Facility (North Dakota Bakken) Commissioned date Hardisty 400,000 bbl tank Expected in-service date Hardisty Enhanced Feeder Pipeline Connectivity (Cold…
Cash Flow Quality Continued infrastructure focus increases take-or-pay based revenue 2014 Segment Profit 2017 Segment Profit Take or Pay based 13% Margin based Take or Pay Margin based 31% based 25% 30% Fee based Fee…
Acquisition Upside Completed 30 acquisitions investing greater than 1 billion since 2001 Current environment creates opportunities for counter-cyclical acquisitions Recent acquisitions of Littlehawk and T&R Transport offer vertical…
Strong Balance Sheet Provides Stability and Supports Growth and Yield Corporate credit ratings: Standard and Poors: BB (Stable), Moodys: Ba2 (Stable) Consolidated debt to EBITDA of 3.0x (as at Sep 30, 2015) Cash balance of 36M (as…
Sustainable Total Return Conservative dividend payout ratio targets 50%-60% of distributable cash flow Greater than 2x increase in distributable cash flow since IPO Dividend increased five times since IPO average of 6% Recent…
APPENDICES TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 29
Integrated Business Segments Terminals & Pipelines 6.5M bbls crude storage in Hardisty & Edmonton Exclusive access to the 120,000 bpd Hardisty unit train loading facility Diesel rail loading capacity at Edmonton of 36,000 bpd 400 km…
Terminals & Pipelines Hardisty and Edmonton Terminals are located at principal hubs for aggregating and exporting oil and refined products out of the Western Canadian Sedimentary Basin (WCSB) 95% fee-based revenue, 65% of which is…
Hardisty Terminal Long Term Potential Tanks under development Potential tank locations TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 32
Edmonton Terminal Long Term Potential Tanks under development Potential tank locations Polaris initiating pump station TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 33
Truck Transportation Key component of the business model integrating the business segments and optimizing asset utilization Provides exclusive delivery points with certain Gibsons terminals and injection stations only accepting oil…
Environmental Services Facilitates additional touch points along the energy value chain providing processing, emulsion treating, water disposal, oilfield waste management, terminal services, and other complementary services to E&P…
Environmental Services - Overview Environmental Services Role in the Oil and Gas Value Chain Drilling Site Environmental cleaning Cleaning equipment Waste management Fluid management equipment Fluid services Waste Site Fluid…
Processing and Distribution Segments Processing of heavy crudes into higher value road asphalt, roofing flux, tops and / or wellsite fluids Distributing propane and NGLs to both Wholesale and Industrial markets Revenue model…
Marketing 27,570 Purchases, sells, stores and blends crude oil and condensate 1,807 Provides essential physical aggregation and quality management services to small and medium-sized producers Enhances profitability by partnering…
Business Segment Peers Environmental Processing and Terminals Trucking Marketing Services Distribution Enbridge Mullen Clean Harbors Superior Plus Tidal Energy Midstream TransCanada Reimer Forbes Energy Parkland Pembina…
Distributable Cash Flow (millions) Q3 2015 LTM Segment Profit* 437.1 Adjustments: Corporate G&A (39.8) Current income tax (47.5) Cash interest expense (83.2) Upgrade and replacement capital (57.3) Other 19.0…
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