GIBSON ENERGY INVESTOR PRESENTATION September 2019
Company Snapshot Building a leading oil-focused infrastructure business GEI 3.3B TSX LISTED MARKET CAPITALIZATION(1) 4.7B 14mm ENTERPRISE BARRELS OF VALUE(1) STORAGE(2) 500mm S&P: BBB DBRS: BBB (low) SANCTIONED…
Oil Infrastructure Focused 75% of 2020E EBITDA from core Terminals & Pipelines and 85% Infrastructure 2020E EBITDA Breakout(1) OILSANDS 75% Terminals and Pipelines 85% Infrastructure MONTNEY EDMONTON TERMINAL 1.7 mmbbl existing…
Focused Strategy Premier oil infrastructure assets to underpin DCF per share and dividend growth Leverage Terminals Position Complementary Growth Terminals to represent 70% of Target deploying 200 300 million EBITDA(1,2) Oil in…
Complete Transformation of Business Repositioned from diverse mix of business lines to focused energy infrastructure 2014(1,2) 2017(1,2) 2020E(2,3) 75% Terminals & 25% Terminals & Pipelines 55% Terminals & Pipelines Pipelines…
Best-in-Class Connectivity at Hardisty Replicating Gibsons competitive position not possible and cost prohibitive Flexibility offered by Gibsons existing best-in-class connectivity provides a wide moat at Hardisty Key consideration for…
Competitive Advantages at Hardisty Replicating Gibsons competitive position not possible and is cost prohibitive Located at the heart of the Hardisty footprint Land Position 240 acres of land holdings adjacent to existing tankage plus…
Hardisty Terminal Continue to grow at Hardisty at an attractive 5x 7x EBITDA build multiple COLD LAKE N HARDISTY TOP OF Additional Phases THE HILL Gibson connection to EAST Expect 2 4 additional tankage sanctions per year HARDISTY…
Edmonton Terminal Edmonton Terminal an attractive cash flow stream, although smaller scale Edmonton Terminal benefits from advantageous positioning located next to two major refineries, access to both the CN and CP railway lines and…
Tankage Demand Outlook Expect to sanction 2 4 tanks a year on run-rate basis in current environment Near-term tankage at Hardisty largely driven by need for more flexibility and solutions for customers to move crude out of the basin in…
Canadian Outside the Fence Extended gathering network with Viking Pipeline; expanded Moose Jaw to 22 kbbl/d Moose Jaw Facility Canadian Pipelines Overview HARDISTY TERMINAL N PROVOST PIPELINE 50,000 bbl/d BELLSHILL PIPELINE…
U.S. Strategy Seek to establish a platform for long-term infrastructure growth in the U.S. Place Existing Execution focus, seeking to place both the Pyote system and connection into Wink into Projects Into service by late Q3 / early Q4…
Pyote Gathering System Connection into Wink late Q3 / early Q4; anticipated 2020E EBITDA of 20 25mm CENTRAL BASIN PLAINS BASIN Anticipated Volumes PLATFORM PIPELINE N (kbbl/d) 20 25 PLAINS / EXXON JV WINK HUB PERMIAN PIPELINE…
Marketing Capabilities Creates value for customers and drives volumes to Gibsons Infrastructure assets Refined Products leases the Moose Jaw Facility from the Refined Infrastructure segment, sourcing feedstocks and marketing the…
Segment Profit Outlook Infrastructure to grow to 85% of total segment profit by 2020E Significant growth in the core Infrastructure segment over time, with a 20% CAGR between 2011 and 2020E Infrastructure expected to generate 300 320…
Distributable Cash Flow Outlook Growth in core Infrastructure driving per share growth Distributable Cash Flow With Illustrative Breakout By Business(1) (C millions) 400 2.50 Line of sight to delivering DCF CAGR of 10% between…
Strong Financial Position Leverage and payout ratio currently below target ranges Recently obtained two Investment Grade ratings New rating of BBB (low) with stable trend from DBRS Recently upgraded to BBB- with stable outlook by S&P…
Contract Quality & Balance Sheet Comparison Attractive contract quality and best-in-class leverage relative to peer group Proportion Take-or-Pay & Fee-for-Service(1) Net Debt / 2018A EBITDA(2) (%) (x) 100% 6.0x 80% 4.0x…
Governing Principles Committed to maintaining a strong financial position by managing to key targets Committed Target Performance High Quality 80% segment profit from take-or-pay and high- Contract 80% by 2020E(1) Cash Flows Quality…
Funding Position Through 2021 Fully-funded for all sanctioned capital, with cushion for additional capex 2018 & 2019 Sources and Uses(1,2) 2020 & 2021 Sources and Uses (1,2) (C millions) (C millions) Disposition Proceeds 2021…
Growth Capital Outlook Expect to sanction 200 to 300 million of Infrastructure growth per year Contract Structure Investment Outlook Hardisty & Long-term take-or-pay and stable fee- 2 4 tanks per year based, with weighted average…
Long-Term Capital Allocation Priorities Near-term focus on remaining fully-funded; steady dividend growth longer-term Target payout ratio of 70% 80% over the long-term Fund Dividend Fund the Business Dividend to be fully covered…
Key Takeaways Continue to deliver on all facets of the strategy, with visibility to further growth Delivery Since January 2018 Investor Day Go Forward Deliverables Sanction 2 4 Tanks Target investing 200mm 300mm per year…
APPENDIX
2019 Capital Expenditure Budget Expected to be in the range of 230 million to 280 million Growth Capital Sanctioned capital for 2018 and 2019 of over 500mm (C millions) Exceeds high end of target range required to Hardisty Terminal…
Capital Funding Approach and Maturity Profile Disciplined funding approach to ensure strong financial position Long-Term Funding Approach Maturity Profile (C millions) 800 on 3.0x 3.5x 5.0x 7.0x 50% 60% Senior Unsecured TARGET…
Infrastructure Growth Capital Invested 1.5B in Infrastructure since 2011, including 10.5 mmbbl of tankage Infrastructure Growth Capital Expenditure 2011A - 2019E (C millions) 2019E to 243 be 250 221 219 184 147 101 62 41…
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