Company Snapshot Building a leading oil-focused infrastructure business GEI 2.4B TSX LISTED MARKET CAPITALIZATION(1) 3.7B 80% TAKE-OR-PAY / ENTERPRISE STABLE FEE-BASED VALUE(1) EBITDA(2) 90% S&P: BBB TERMINALS REVENUE…
Oil Infrastructure Focused 75% of 2020E EBITDA from core Terminals & Pipelines and 80% Infrastructure 2020E EBITDA Breakout(1) OILSANDS 75% Terminals and Pipelines 80% Infrastructure 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 at least 200 EBITDA(1,2) Oil 300mm 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…
Financial 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- Cash Flows Contract 80% by…
Funding Position and Maturity Profile Fully-funded for all sanctioned capital with no significant maturities near-term Fully-funded for over 400mm in infrastructure growth capital in 2020E relative to a capital budget of 300mm To the…
Segment Profit & Cash Flow by Contract Structure Segment Profit and DCF heavily weighted to high quality businesses Through divesting non-core, commodity exposed businesses, Gibson has significantly improved its weighting to higher…
Counterparty Credit Exposure Infrastructure accounts for majority of EBITDA; terminals primarily IG customers Nature of Credit Exposures by Business Segment(1) 100% Infrastructure represents 80% of 2020E Segment Profit and is backed by…
Strong Financial Position Leverage and payout ratio currently below target ranges Obtained two Investment Grade ratings in 2019(1) New rating of BBB (low) with stable trend from DBRS Morningstar Upgraded to BBB- with stable outlook by…
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 / 2019A EBITDA(2) (%) (x) 100% 6.0x 80% 4.0x…
Long-Term Capital Allocation Priorities Near-term focus on remaining fully-funded and preserving balance sheet strength Target payout ratio of 70% 80% over the long-term Fund Dividend Fund the Business Dividend to be fully…
Hardisty Terminal Best-in-Class Connectivity 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…
Hardisty Terminal Competitive Advantages 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…
Hardisty Terminal Overview Continue to grow at Hardisty at an attractive 5x 7x EBITDA build multiple COLD LAKE N HARDISTY TOP OF THE HILL Gibson connection to HARDISTY EAST 180 mbbl/d rail facility WEST HARDISTY Additional…
DRU at Hardisty On-Strategy Infrastructure High-quality infrastructure project leveraging and extending Hardisty position First DRU in 50%/50% joint venture between Gibson and USD Western Agreement in place with ConocoPhillips Canada…
DRU at Hardisty Full Market Access Solution Full market access solution to support construction of first DRU in Western Canada OIL SANDS 1 Bitumen production from the oil sands shipped as dilbit via pipelines to Gibsons Hardisty…
DRU Hardisty Location and Construction Targeting mid-2021 in-service at a cost of 125mm to 175mm net to Gibson(1) Targeting in-service date as early as the second quarter of 2021 Total capital cost of the initial 50,000bbl/d phase, net…
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…
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 80% 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 360 380mm…
Distributable Cash Flow Outlook Sustained growth in core Infrastructure driving meaningful per share growth Distributable Cash Flow With Illustrative Breakout By Business(1) (Cmm, C/share) 400 Line of sight to delivering DCF 2.50 CAGR…
Key Takeaways Continue to deliver on all facets of the strategy; will remain disciplined Delivery Since January 2018 Investor Day Go Forward Deliverables Continue to target investing 200 300mm per year Sanction 2 4 Tanks over the…
APPENDIX
2020 Capital Expenditure Budget Expected to be in the range of 275mm to 325mm Capital Outlook Expect to sanction 2 to 4 tanks a year on run-rate basis in current environment Expect 275 325mm of Growth Capital in 2020 Total DRU capital…
Infrastructure Growth Capital Invested 1.75B in Infrastructure 2011-2020E, including 11.5 mmbbl of tankage Infrastructure Growth Capital Expenditure 2011A - 2020E (Cmm) 2020E 300mm 243 221 219 229 184 147 101 62 41 2011 2012…
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