INVESTOR PRESENTATION MAY 2014 INTEGRATED MIDSTREAM SOLUTIONS
Corporate Profile Incorporated 1950 Initial Public Offering 2011 TSX Symbol GEI Market Capitalization* 3.9 billion Enterprise Value* 4.6 billion Dividend per share 0.30/quarter Current Dividend yield* 3.8% * Based on May 23,…
Corporate Profile 60+ years of midstream knowledge and experience Strategic and difficult-to-replicate asset base in growing oil basins Integrated business segments generate synergies and a stable, balanced cash flow profile Track…
Gibsons Value Proposition Diversified portfolio offers multiple growth avenues Cash Flow Track record of accretive acquisitions 17% CAGR in annual distributable cash flow per share Growth (2011 to 2013) 590+ million in budgeted…
Growth Drivers: Increasing North American Oil Production 6 Canadian oil production Canada Crude Oil Forecast 5 4 is forecast to grow to 5.2 million bbls/d by 2020 M b/d 3 In Situ 2 1 Mining Conventional Heavy…
Growth Drivers: North American Market Imbalances Oil market production and distribution dynamics have shifted Infrastructure constraints have created wide and volatile regional price differences Gibson is well positioned to:…
Growth Drivers: Water and Waste Management Potential 35 30 North American Produced Water Forecast Produced water and associated waste 25 streams are expected to increase 29% 20 through 2020 across North America Billions bbl…
Capturing the Opportunities Gibson offers an extensive operating footprint in key oil growth basins TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 9
Integrated Midstream Solutions Gibsons network of integrated midstream assets typically touches a barrel and captures value several times between the wellhead and the end market Terminals Environmental Marketing & Pipelines…
Integrated Midstream Solutions Long-standing relationships as a provider of multiple solutions for our customers Terminals Processing & Environmental Truck Transportation Marketing and Pipelines Distribution Segments Services…
Growth Capital Focused on Terminals and Pipelines Business 70% of 2014 growth capital is focused on Terminals & Pipelines Segment 250 230 Growth Capital Expenditures (M) 200 2012 Actuals = 126M 2013 Actuals = 177M 150 2014…
Terminals & Pipelines: Strategic Assets at Edmonton and Hardisty Majority of all Alberta oil exports aggregate in Zama Rainbow Lake ALBERTA Edmonton or Hardisty Taylor Gibson owns and operates key terminal, blending and Prince…
Terminals & Pipelines: Hardisty Growth Projects Terminal Storage Operational 4.3M bbls Under Construction 2.3M bbls Inbound Pipelines Enbridge 2,3,4 Outbound Pipelines Athabasca Enbridge 2,3,4,67 Cold Lake Express Bow River Keystone…
Terminals & Pipelines: Edmonton Growth Projects Polaris Diluent Pipeline Inbound Light & Heavy Pipelines Terminal Storage Operational 0.5M bbls Under construction 0.3M bbls + 22 car rail loading facility Storage…
Terminals & Pipelines: Development Timeline of Growth Projects Terminal 2014 2015 2016 Hardisty Crude by Rail 120,000 bbls/d Hardisty 2 x 400,000 bbl tanks Edmonton Storage optimization Hardisty 400,000 bbl and 500,000 bbl tanks…
Terminals & Pipelines: Growth Projects TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 17
Environmental Services : Current Growth Projects Construction and expansion of oil production processing, recovery and disposal (PRD) infrastructure in the WCSB Planning 4 to 6 new facilities to be in-service in the next 18 months…
Diversified and Stable Cash Flow Cash Flow Balance Between Segments Offers Diversification Benefits: 17% 26% Q1 2014 LTM Segment Profit (1) 21% Terminals and Pipelines 100M Truck Transportation 83M Environmental Services 88M…
Strong Credit Metrics and Balance Sheet Ample financial flexibility to execute on multi-year growth projects Balance Sheet (as of March 31, 2014) Cash balance of 66M 500M revolving credit facility committed to June 2018 Corporate…
Distributable Cash Flow per Share* Growth Meaningful cash flow growth achieved since going public in 2011 Future growth profile facilitated by a portfolio of organic investment projects 2.50 2.09 2.00 1.78 1.53 1.50…
Dividend Growth Stable, secure dividend that is expected to grow as business cash flow grows /Share Historical Dividend Amounts and Increases 1.20 1.20 9% Increase 1.10 1.10 6% Increase 1.04 4% 1.00 Increase 1.00 4% 0.96…
Strong Investor Returns 140% 120% 100% 117% Total Shareholder Return since IPO 80% 60% 40% 20% Total Return (Equity + Dividends) Equity Return 0% *As at May 23, 2014 TSX: GEI Gibson Energy Inc.…
Appendices TSX: GEI Gibson Energy Inc. Integrated Midstream Solutions 24
Business Strategy Leverage and expand integrated asset base to capture synergies and provide stable cash flow stream Partner with high quality customers to provide long-term stable revenue streams Maintain discipline when investing…
Integrated Business Segments Terminals & Pipelines 4.8M bbls crude storage in Hardisty & Edmonton Diesel rail loading capacity at Edmonton of 36,000 bpd Sexsmith terminal generates profit for three segments 424 km of pipelines in…
Terminals & Pipelines Two major crude oil terminals, 424 km of pipelines and 72 injection stations positioned in key U.S. crude oil plays 85% fee-based revenue in 2013, 45% of which is under long-term take or pay contracts, storage and…
Crude by Rail Gibsons existing rail business of moving crude / other products is sizable and positioned to grow significantly. Potential growth areas: Hardisty area unit train facility Expansion of Edmonton area rail car loading…
Railing Crude on Unit trains From Hardisty is Sustainable and Attractive No Pipeline or Pipeline Capacity Flexible Rail Options Pipeline (at capacity) 3/barrel Pipeline (doesnt exist) & Barge No Cost Available HARDISTY, AB…
Truck Transportation Key component of Gibsons business model, integrating the business segments Provides exclusive delivery points with certain Gibson terminals and injection stations only accepting oil trucked in by a Gibson-operated…
Environmental Services Facilitates additional touch points along the energy value chain Barriers to entry including regulatory environment and high permitting costs U.S. division provides environmental, production and other…
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…
US Environmental Services - Overview BUSINESS OVERVIEW Environmental Services Production Services Other Complementary Services and Fluid Handling Pumping unit services Winterized mobile Fluid and solid waste Installation / repair…
Technology Innovation in Environmental Services Winterized Fluid Vacuum Unit (2008) ATLANTIS (2010) Challenge: Challenge: Harsh climate in northern basins complicates fluid cleaning Drilling mud represents a significant expense and…
Processing and Distribution Segments Crude oil purchased by Gibsons marketing group is delivered to Gibsons Moose Jaw facility to be processed into road asphalt, roofing flux, tops, and / or wellsite fluids Approximately 1.0 million…
Marketing Business unit purchases, sells, stores and blends crude oil and condensate Provides essential physical aggregation services to small and medium-sized producers Transactions are structured to minimize commodity risk Commodity…
Differentials Expected to Continue to Provide Marketing Opportunities Twelve month moving average of stream differentials 15.00 10.00 5.00 Moving Average Stream Differentials vs. WTI (US/B) 0.00 (5.00) Gibson Butane…
Solid Volume Growth in Key Businesses Terminals & Pipelines Trucking Voumes 250,000 160,000 Volumes (Barrels in thousands) Volumes (Barrels in thousands) 140,000 200,000 120,000 150,000 100,000 80,000 100,000 60,000…
Proven Track Record of Growth Demonstrated ability to identify and execute accretive acquisitions completed 26 acquisitions for 931M since 2001 Increased organic growth capital spending owing to: robust opportunities to develop legacy…
Financial Strength to Support Growth and a Stable, Secure Dividend Revolving Credit Facility (RCF) Financial Covenants under RCF CAD 500M (available in CAD or USD Interest coverage ratio: greater than 2.5x equivalent) Total debt…
Business Segment Peers Environmental Processing and Terminals Trucking Marketing Services Distribution Enbridge Mullen Clean Harbors Superior Tidal Energy Midstream TransCanada Reimer Forbes Energy Parkland Pembina Kinder…
Trading Comparables Net Debt / Share Mkt Cap. EV Current EV / 2014 EV / 2015 2014 Company Ticker Price* ( millions) ( millions) Yield EBITDA** EBITDA** EBITDA** Enbridge ENB 52.00 43,348 81,969 2.7% 16.4 14.2 5.5 TransCanada TRP…
Gibson Board Of Directors James M. Estey, Chairman of the Board and Independent Director Chair of the Corporate Governance, Compensation and Nomination Committee and Member of the Audit Committee Mr. Estey is the retired Chair of the…
Gibson Senior Executive A. Stewart Hanlon, President and CEO Mr. Hanlon joined Gibson in April 1991 as Controller of Canwest Propane and in his 23-year tenure with Gibson has filled senior roles in finance, business development and…
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