Company Snapshot GEI 2.4B TSX LISTED MARKET CAPITALIZATION(1) 3.6B 12MM ENTERPRISE BARRELS OF VALUE(1) STORAGE(2) 0.33 1.32 QUARTERLY ANNUAL DIVIDEND PER DIVIDEND PER SHARE SHARE 8.0% 10% CURRENT TARGET DCF PER…
Oil Infrastructure Focused On Growth Basins Existing footprint provides exposure to the key North American growth basins Canadian Oil Production by Basin (million barrels per day) OILSANDS 4.5 MONTNEY 3.5 EDMONTON TERMINAL…
Focused Strategy Premier oil infrastructure assets to underpin DCF per share and dividend growth Leverage Terminals Position Complementary Growth Terminals expected to represent Basin strategy targeting oil sands, 75% of EBITDA by…
Complete Transformation of Business Repositioned from diverse mix of business lines to focused energy infrastructure 2014 2017 2019E PF 25% 65% 75% Segment T&P EBITDA From T&P and Infrastructure 35% 75% 85% Infra. 15% 50%…
Competitive Advantages at Hardisty Land position, cost competitiveness and rail access provide moat at Hardisty Flexibility offered by existing connectivity to both inbound and outbound pipelines as well as exclusive access to only…
Hardisty Position Irreplaceable Replicating Gibsons competitive position not possible and cost prohibitive ATHABASCA COLD LAKE KEYSTONE TERMINAL HARDISTY WEST HARDISTY EAST Gibson connection to 120 kbbl/d rail facility HARDISTY…
Edmonton Terminal Recently expanded to 1.7 mm barrels, with footprint to triple capacity Edmonton Terminal benefits from advantageous positioning located next to both the CN and CP railway lines and near both major egress pipelines…
Future Tankage Demand Expect to sanction at least 1 to 2 tanks per year with potential upside Expect majority of new tankage in Western Canada will be built at Hardisty Base growth to be driven by oil sands, with existing egress…
Incremental Growth to Reach 10% Target Identified opportunities within existing asset base for additional growth Add inbound/outbound pipeline connections or expand rail facility to provide more flexibility for customers Terminal…
Terminal Growth Beyond Tanks Ancillary terminal infrastructure remains a meaningful growth opportunity Pipeline Connections Facility Optimization Add inbound/outbound connections Working with customers to develop to provide…
Existing Canadian Pipelines Decades of experience operating gathering pipelines into Hardisty R10 R5 R1W4 Pipeline Overview T45 HARDISTY TERMINAL 400 km of 100% owned and operated pipelines drive volume to the Hardisty Terminal…
50mm Viking Pipeline Project Pipeline growth opportunity leveraging and connecting into Hardisty R10 R7 R4W4 Opportunity Overview HARDISTY TERMINAL Delivers sweet crude oil production from the Viking into the Hardisty Sweet…
Opportunities at Moose Jaw Facility Seek to improve margins, quality of revenue and reduce cost More of a splitter than refinery; utilizes low-cost heavy oil feedstock to produce specialty market refined products Will initiate a…
Creating a U.S. Platform Injection stations located at the heart of the Permian and SCOOP / STACK plays Existing premium injection station locations accessing many of the key crude oil egress pipelines provides competitive advantage…
U.S. Growth Near Term Plan Focused on restoring business to 10 15 million EBITDA Viewed as critical component to success in U.S. U.S. experience and relationships, not Canadian relocation or Targeting 1 Hire U.S. Team coverage Q2…
Summary of Planned Divestitures Targeting at least 275 375 million in proceeds by mid-2019 2018 2019 Segment Q1 Q2 Q3 Q4 Q1 Q2 Transaction Closed Q1 2017 Industrial Propane U.S. Environmental Services NGL…
Historical Growth Capital Allocation Shifted to allocating nearly all capital towards infrastructure projects Since 2011, have continued to allocate a greater proportion of capital to infrastructure each year Going forward, expect…
Business Composition Significant transformation towards infrastructure Infrastructure expected to generate 255 - 275 million in Segment Profit in 2018E, with Terminals representing approximately 80% - 85% of infrastructure In H2…
Contract Structure Composition Approaching 90% of cash flows from high quality contract structures Significant shift in quality of cash flow in last 3 5 years, with high-quality contract structures currently representing about…
Sources and Uses Sale proceeds to fully fund growth through 2019; balanced funding thereafter Anticipate being fully funded through 2019, with growth capital funded by sale proceeds and dividend funded from cash flow from the…
Potential Growth Trajectory Target securing additional growth opportunities to reach 10% annual growth Line of sight to grow continuing business at or above target 10% growth rate through 2019 based on secured growth under…
Strong Financial Position Line of sight to reaching target leverage with room for future dividend increases Expect to fully fund growth capital program using proceeds from dispositions through the end of 2019, providing the ability to…
Key Takeaways Dramatic Transformation of the Business High-Quality Oil Infrastructure Business Visibility to Growth Near-Term Platform to Target 10% Growth Longer-Term Strong Financial Position 25
GIBSON ENERGY INVESTOR PRESENTATION APPENDIX
IFRS 16 Impact Adoption of IFRS 16 will impact Adj. EBITDA but not distributable cash flow IFRS Commentary 2017 Lease Cost Breakdown (Cmm) IFRS 16 classifies leases as liabilities and a corresponding right-of-use asset that is…
2018 Capital Expenditure Budget Expect to invest 165 - 205 million in infrastructure in 2018 Growth Capital (Cmm) The 2018 budget reflects Gibsons focus on Hardisty Terminal 90 - 110 growing its core Infrastructure platform Edmonton…
Governing Principles Committed to maintaining a strong financial position by managing to key targets Long-Term Governing Financial Principles High Quality 80% segment profit from take-or-pay and high-quality fee-for-service Cash…
Capital Funding Approach and Maturity Profile Sale proceeds to fully fund growth through 2019; balanced funding thereafter Capital Funding Approach Maturity Profile (C millions) Fund Growth with 1,000 Disposition Proceeds Maximum…
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