Investor Presentation June 2016 Integrated Midstream Solutions
A North American Based Midstream Energy Company Critical solutions along the crude oil production value chain Strategically positioned infrastructure assets Established, conservative and resilient business model Attractive…
Critical Solutions Along the Crude Oil Production Value Chain Gibsons suite of logistical and ancillary Gibsons network of fixed midstream Gibsons broad, physical market wellsite services that enable oil and liquids infrastructure…
Strategically Positioned Assets 200 operating locations offer a broad footprint throughout North America Edmonton Alberta Critically important oil terminal assets Montney Oilsands Terminal Hardisty Terminal Duvernay at Edmonton…
Business Model Established Resilient 60+ years of operating history Focused on contracted and volume related, stable cash flow streams Experienced management team and Board of Directors Growth opportunities focused on Conservative…
Focus on Contracted Cash Flow Streams Q1 2016 LTM Segment Profit 35% of Segment Profit is under long term, fixed-fee, take-or-pay contracts Fee-for-service business lines focused on 20% existing crude oil production levels Less than…
Disciplined Capital Allocation to Infrastructure Capital investment focused on contracted, fixed-fee infrastructure that is critical to the production of oil, liquids and associated waste streams 100% 90% 80% 70% 60% 50%…
Credit Worthy Customer Base 2015 Segment Profit Broad customer base reduces counterparty and 20% basin-specific risk Highest weighting is to the largest and most credit worthy 3% 44% Supermajor / Integrated segment Approximately…
Growth Opportunities Focused on growth opportunities backstopped by long-term, fixed-fee take-or-pay contracts 400 - 600 million forecast for organic growth projects (2016 2017) Flexible capital budget to accommodate industry…
Canadian Oil Sands Development Massive resource offers low geological and geopolitical risk Long reserve life profile insulates development from near Peace term oil price volatility River Athabasca Visible production growth profile to…
Key Terminal Assets Edmonton Terminal The majority of all Alberta oil exports aggregate in Edmonton and/or Hardisty Expected Oil Sands growth of 1 million Gibsons owns and operates key barrels per day to 2020 terminal, blending and…
Hardisty Terminal Terminal Storage 6.0 million barrels of current capacity Inbound Pipelines Enbridge 2,3,4 2.9 million barrels under construction Athabasca Athabasca Twin 10 Cold Lake 9 Cold Lake Twin 8 Bow River 7 GEI enters public…
Edmonton Terminal Polaris Diluent Pipeline Terminal Storage 0.6M bbls of current capacity 0.3M bbls of storage under construction + 22 car rail loading facility Inbound Pipelines Light & Heavy Southern Lights Keyera…
Growth Project Development Timeline Phased commissioning schedule of contracted infrastructure offers strong visibility to cash flow growth 300 million of growth capital investment expected to be put into service by mid-2017 80% of…
Cash Flow Quality Continued infrastructure focus increases contracted, fixed-fee, take-or-pay based revenue Fixed-fee, take-or-pay component has increased over 2x since initiating terminal expansions in 2012 Fixed-fee, Take-or-pay %…
Other Growth Opportunities Well positioned with assets Montney Alberta Oilsands and customer relationships in Duvernay key oil and liquids rich basins Cardium Ability to be flexible with Viking Shaunavon growth capital…
Conservative Financial Profile Capital Structure* Highlights: Current credit rating: S&P - BB (stable), Moodys - Ba2 (stable) 3% Net Debt to EBITDA* = 2.8 Credit facility carries maximum Total Net Debt to EBITDA covenant of 4.85x…
Robust Financial Flexibility Liquidity Profile* Strong liquidity profile provides 800 robust financial flexibility to execute 700 600 our current business plan and 500 Cash pursue incremental organic growth 400 Revolving Credit…
Sustainable Dividend Payout Payout ratio is expected to increase during the infrastructure construction period currently underway Payout ratio is expected to return towards target range as fixed-fee, take-or-pay cash flow comes…
Appendices
Integrated Business Segments Wholesale Logistics Purchases/sells 350,000 bpd of hydrocarbon One of the largest independent crude oil, water and refined products and emulsion haulers in North America 2,250 trailers and access to 1,200…
Differential Volatility Provides Wholesale Opportunities Twelve month moving average of stream differentials 15.00 Moving Average Stream Differentials vs. WTI (US/B) 10.00 5.00 0.00 (5.00) (10.00) (15.00) (20.00)…
Distributable Cash Flow (millions) Q1 2016 LTM Segment Profit 376.2 Adjustments: Corporate G&A (43.0) Current income tax (40.7) Cash interest expense (85.8) Upgrade and replacement capital (40.4) Other 14.7 Distributable…
Shareholder Profile Shareholder Summary April Type 2016 Institutional 80% Retail & Insider 20% 100% Geographic - Institutional breakdown Canada 49% U.S. 18% International 33% 100% Gibsons Integrated Midstream…
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