GIBSON ENERGY Q (UNAUDITED) SUPPLEMENTARY INFORMATION

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Sabina Norman
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1 GIBSON ENERGY Q (UNAUDITED) SUPPLEMENTARY INFORMATION August 8, 2018

2 Non-GAAP Measures This presentation refers to certain financial measures that are not determined in accordance with IFRS. Adjusted EBITDA from continuing operations and Distributable cash flow ( DCF ) from combined operations are not a measure recognized under IFRS and does not have standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures reported by other entities. Management considers these to be important supplemental measures of Gibson s performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. Adjusted EBITDA from continuing operations and Distributable cash flow are used to assess the level of cash flow generated and to evaluate the adequacy of internally generated cash flow to fund dividends. Additional information about reconciliation of historical distributable cash flow and Adjusted EBITDA to its most closely related IFRS measure, cash flow from operating activities and segment profit, respectively, can be found in our MD&A available on SEDAR at and on our website at For a full discussion of our material risk factors, see Risk Factors in the Company s Annual Information Form dated March 5, 2018 as filed on SEDAR and available on the Gibson website at 2

3 Segment Profit Bridges Q to Q and Q to Q Q to Q Segment Profit From Continuing Operations $150 $100 $66 $10 ($6) $17 $13 $100 $50 $0 Q Segment Profit from Continuing Operations (Pre-IFRS 16) Infrastructure Logistics Wholesale Finance Leases Q Segment Profit from Continuing Operations (IFRS 16) Q to Q Segment Profit From Continuing Operations $150 $100 $102 ($1) ($4) $3 $100 $50 $0 Q Segment Profit from Continuing Operations (IFRS 16) Infrastructure Logistics Wholesale Q Segment Profit from Continuing Operations (IFRS 16) 3 See Quarterly Least Costs slide for lease costs by segment; Amounts from Q represent lease cost excluded from segment profit due to the adoption of IFRS 16 - Leases

4 Distributable Cash Flow Bridges Q to Q and Q to Q Q to Q Distributable Cash Flow From Combined Operations $125 $100 $49 ($14) ($1) $78 $75 $50 $44 $25 $0 Q DCF Cash Flow from Operations Lease Payments Replacement Capital Q DCF Q to Q Distributable Cash Flow From Combined Operations $125 $100 $75 $50 $25 $65 $13 $1 ($1) $78 $0 Q DCF Cash Flow from Operations Accrued Cash Interest Replacement Capital Q DCF 4 Calculated as sum of Cash Flow from Continuing Operations, Cash Flow from Discontinued Operations, Working Capital Changes, and certain one-time items, including Net Tax Benefit from sale of Industrial Propane business and realized loss on repayment of US notes, and Restructuring, Severance and Other Costs; Finance Lease payments are excluded from Cash Flow from Operations in Q and Q due to the adoption of IFRS 16; Refer to Distributable Cash Flow Reconciliation slide for details related to one-time items

Quarterly Lease Costs Lease Costs from Continuing Operations Q1 Q2 Q3 Q4 Q1 Q2 Infrastructure $0.7 $0.6 $0.6 $0.7 $0.1 $0.1 Logistics 1.0 1.0 1.1 0.8 0.7 0.8 Wholesale 11.7 11.3 10.3 9.9 10.8 11.

5 Quarterly Lease Costs Lease Costs from Continuing Operations Q1 Q2 Q3 Q4 Q1 Q2 Infrastructure $0.7 $0.6 $0.6 $0.7 $0.1 $0.1 Logistics Wholesale Total Impacting Segment Profit $13.4 $12.9 $12.0 $11.4 $11.6 $12.0 Corporate Total Finance Leases $14.7 $14.2 $13.4 $12.7 $13.7 $ NGL represented approximately 50% of Wholesale lease costs in Q2 2018

6 Adjusted EBITDA Reconciliation 2017 & 2018 Adjusted EBITDA Reconciliation Table Q1 Q2 Q3 Q4 Q1 Q2 Fiscal Year 2017 shown prior to IFRS 16 Adoption Reported under IFRS 16 Continuing Operations Segment profit $84 $66 $57 $78 $102 $100 Interest income Foreign exchange gain (loss) - corporate (2) General and administrative (9) (13) (6) (22) (8) (7) Net unrealized (gain) loss from financial instruments (4) Restructuring, severance and other costs Adjusted EBITDA $71 $59 $49 $75 $93 $100 Combined Operations Segment profit $100 $74 $64 $85 $110 $101 Interest income Foreign exchange gain (loss) - corporate (2) General and administrative (9) (13) (6) (22) (8) (7) Net unrealized (gain) loss from financial instruments (4) Restructuring, severance and other costs Adjusted EBITDA $87 $66 $56 $82 $101 $102 6

Distributable Cash Flow Reconciliation 2017 & 2018 Distributable Cash Flow Reconciliation Table Q1 Q2 Q3 Q4 Q1 Q2 Fiscal Year 2017 shown prior to IFRS 16 Adoption Reported under IFRS 16 Continuing

7 Distributable Cash Flow Reconciliation 2017 & 2018 Distributable Cash Flow Reconciliation Table Q1 Q2 Q3 Q4 Q1 Q2 Fiscal Year 2017 shown prior to IFRS 16 Adoption Reported under IFRS 16 Continuing Operations Cash flow from operating activities $99 $50 ($1) $42 $127 $27 Adjustments: Changes in non-cash working capital (31) (32) 89 Upgrade and replacement capital (4) (4) (6) (6) (4) (6) Accrued cash interest (23) (17) (17) (17) (18) (17) Restructuring, severance and other costs Lease Payments (14) (14) Distributable Cash Flow $40 $38 $26 $46 $59 $78 Combined Operations Cash flow from operating activities $94 $52 $5 $45 $137 $29 Adjustments: Changes in non-cash working capital (22) (34) 87 Upgrade and replacement capital (5) (5) (7) (11) (5) (6) Accrued cash interest (23) (17) (17) (17) (18) (17) Restructuring, severance and other costs Taxes (2) Working capital adjustment for Industrial Propane Lease Payments (15) (14) Distributable Cash Flow $44 $44 $31 $65 $65 $78 7 Net tax benefit from sale of Industrial Propane business and realized loss on repayment of US notes (2) Represents a one-time adjustment related to working capital at the close of Industrial Propane segment sale whereby $10.5M cash balance was required to be left in the business prior to close and was repaid back to the company as part of the sale proceeds

8 Distributable Cash Flow Reconciliation 2017 & 2018 Distributable Cash Flow Reconciliation Table Q1 Q2 Q3 Q4 Q1 Q2 Fiscal Year 2017 shown prior to IFRS 16 Adoption IFRS 16 Combined Operations Segment Profit $100 $74 $64 $85 $110 $101 General and administrative (9) (13) (6) (22) (8) (7) Other (4) 6 (2) 19 (0) 7 Adjusted EBITDA Interest (24) (17) (17) (18) (18) (18) Replacement capital (5) (5) (7) (11) (5) (6) (2) Taxes (paid) refund Lease payment (IFRS 16) (15) (14) (3) Other (15) 1 (2) Distributable Cash Flow $44 $44 $31 $65 $65 $78 8 Including interest income, foreign exchange loss (gain), net unrealized (gain) loss from financial instruments, restructuring, severance and other costs; Q includes $18M restructuring, severance and other cost (2) During 2017, the company paid net $6.2M as one-time tax on the gain on sale of the Industrial Propane business, net of the realized tax losses related to the repayment of the U.S. $ Notes (3) Including working capital adjustment, (gain) loss on sale of assets, and other; Q and Q include the impacts related to the sale of Industrial Propane whereby $10.5M cash balance was required to be left in the business prior to close and was repaid pack to the company as part of the sale proceeds

9 Supplementary Disclosure Supplementary Disclosure Table (2017 and 2018) Q1 Q2 Q3 Q4 Q1 Q2 Fiscal Year 2017 shown prior to IFRS 16 Adoption Reported under IFRS 16 Segment profit Infrastructure $60 $57 $62 $56 $69 $68 Logistics $6 $5 $5 $3 $4 $0 Wholesale $18 $4 ($10) $19 $29 $32 Total $84 $66 $57 $78 $102 $100 Segment Profit from Discontinued Operations $16 $8 $7 $8 $8 $1 Select information on Terminals and Pipelines Contribution to segment profit $50 $51 $51 $44 $59 $62 Replacement capital Growth Capital Segment Profit includes the impact of IFRS 16 on Lease Payments and therefore may not be comparable to previous periods

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