GIBSON ENERGY INVESTOR PRESENTATION

Transcription

1 GIBSON ENERGY INVESTOR PRESENTATION November 2018

2 Company Snapshot Building a leading oil-focused infrastructure business GEI TSX LISTED $3.0B MARKET CAPITALIZATION (1) $4.1B ENTERPRISE VALUE (1) 14mm BARRELS OF STORAGE (2) $0.5B SANCTIONED INFRASTRUCTURE GROWTH $1.32 ANNUAL DIVIDEND PER SHARE PAID QUARTERLY ~6.3% CURRENT DIVIDEND YIELD (1) ~10% TARGET DCF PER SHARE GROWTH 2 (1) Based on October 31, 2018 closing price of $20.84 per share and net debt as defined in Gibson s MD&A and financial statements. (2) Includes 3.1 million barrels under construction at Hardisty. (3) This and subsequent slides contain forward-looking statements Please refer to the Forward-Looking Statement notice on slide 28.

3 Oil Infrastructure Focused On Growth Basins Existing footprint provides exposure to the key North American growth basins Canadian Oil Production by Basin OILSANDS (million barrels per day) MONTNEY EDMONTON TERMINAL 1.7 mmbbl existing storage EDMONTON HARDISTY DUVERNAY VIKING HARDISTY TERMINAL 8.9 mmbbl existing storage 3.1 mmbbl under construction E 2019E 2020E 2021E 2022E Oil Sands Duvernay and Viking Other U.S. Oil Production by Basin (million barrels per day) POWDER RIVER UINTA BAKKEN UTICA PERMIAN U.S. INJECTION STATIONS SCOOP/ STACK MARCELLUS EAGLE FORD E 2019E 2020E 2021E 2022E Permian SCOOP/STACK Other 3 Source: 2018 CAPP Forecast, BMO Capital Markets, Scotiabank, Gibson estimates.

4 Focused Strategy Premier oil infrastructure assets to underpin DCF per share and dividend growth Leverage Terminals Position Terminals expected to represent ~75% of EBITDA (1,2) by H Very strong competitive position at Hardisty Sanction at least 1 to 2 tanks per year on run rate basis; potential for 2 to 4 tanks a year in current environment Platform for incremental growth Quality Cash Flows Oil Infrastructure Focus Target ~10% DCF per Share Growth Complementary Growth Basin strategy targeting oil sands, Viking and Duvernay in Canada, and Permian and SCOOP / STACK in U.S. Harvest additional opportunities within terminal footprint Customer-focused to drive future growth opportunities Expect $150 - $200 million in capital will drive ~10% per year growth Strong Balance Sheet ~85% of cash flows (2) expected from infrastructure businesses by H Take-or-pay and stable fee-based contracts expected to represent >80% of EBITDA (1,2) Terminals EBITDA ~90% from Investment Grade counterparties with weighted average remaining contract life of ~10 years 4 Secure, Growing Dividend (1) Refers to EBITDA after inclusion of lease costs and is not comparable to figures prepared under IFRS 16. (2) H estimates based on a mid-cycle contribution from Wholesale. Note: Fixed-fee intercompany contracts currently represent approximately 20% of infrastructure segment profit, with the proportion expected to decline over time. Committed to 3.0x 3.5x Net Debt / Adj. EBITDA over long-term Growth through 2019 fully-funded with expected disposition proceeds and retained cash flow YTD 2018 Retained cash flow to fund equity component of growth capital 50% 60% target leverage on infrastructure growth capital Target Investment Grade credit rating

5 Complete Transformation of Business Repositioned from diverse mix of business lines to focused energy infrastructure E PF (1) Segment EBITDA (1) From T&P and Infrastructure ~25% ~35% ~65% ~75% ~75% T&P ~85% Infra. EBITDA (1) From Take-or-Pay or Stable Fee- Based ~15% ~30% ~50% ~75% ~60% ToP ~85% Stable Fee-Based Capital Allocated to Infrastructure ~75% ~95% ~100% 5 (1) EBITDA shown after inclusion of lease costs and is not comparable to figures prepared under IFRS PF estimates based on a mid-cycle contribution from Wholesale.

6 Competitive Advantages at Hardisty Land position, connectivity and rail access provide wide moat at Hardisty Flexibility offered by existing connectivity to both inbound and outbound pipelines as well as exclusive access to only unit train rail terminal at Hardisty are key differentiators in securing incremental build opportunities Leveraging existing interconnectivity results in cost advantage on new opportunities relative to competitors Gibson has built 100% of new third-party tankage placed into service this decade Located at the heart of the Hardisty footprint, with room to place significant tankage into service in the future, plus additional land holdings to the south and east ensuring decades of running room Independent terminal operator with primary objective of improving customers market access and no preference where customers bring in or send their crude Connections to Inbound Pipelines Connections to Outbound Pipelines 15 (total number) 10 (total number) GEI Peer A Peer B Peer C Peer D Peer E 0 GEI Peer A Peer B Peer C Peer D Peer E 6 Peers include Enbridge, Flint Hills, Husky, Inter Pipeline, and TransCanada (peers are not linked between charts).

7 Expansion at Hardisty Terminal Replicating Gibson s competitive position not possible and cost prohibitive KEYSTONE TERMINAL COLD LAKE HARDISTY WEST HARDISTY TERMINAL HARDISTY EAST Gibson connection to 120 mbbl/d rail facility Additional Phases Potential for additional tankage sanctions in the near term based on current conversations Phase 3 Targeting Q in service Phase 2 Targeting Q in service Phase 1 Ahead of schedule, targeting Q in service ENBRIDGE TERMINAL ENBRIDGE SPECTRA EXPRESS TERMINAL Recently acquired acreage PROVOST TRANSCANADA KEYSTONE / XL BELLSHILL ENBRIDGE SPECTRA EXPRESS ~35% expansion of Hardisty tankage currently underway, with potential to sanction additional phases in the near term Existing Tankage Q Q Q Future Sanctions In Service Date 7

8 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 Trans Mountain Expansion coming into service would help accelerate building out remaining land position EDMONTON TERMINAL AOSPL COLD LAKE KML / ENB Connection Waupisoo and Access Inbound COLD LAKE Trans Mountain (1) Connection PEACE KINDER MORGAN TERMINAL COLD LAKE PEACE ACCESS TRANS MOUNTAIN / TRANS MOUNTAIN EXPANSION ENBRIDGE TERMINAL ENBRIDGE MAINLINE CORRIDOR WAUPISOO 8 (1) Trans Mountain connection easily modified to connect to Trans Mountain Expansion once operational.

9 Future Tankage Demand Expect minimum of 1 to 2 tanks per year; likely 2 to 4 in current environment Expect majority of new tankage in Western Canada will be built at Hardisty Tankage demand over the longer-term to be driven by continued growth of oil sands Near term, egress constraints are resulting in demand for additional tankage from producers to manage existing production while potential customers downstream of Hardisty are looking to access to Canadian heavy crudes Keystone XL and/or TMX entering service likely to drive incremental tankage demand Potential Tankage Demand Driving Project Sanctions Over Next 10 Years (total number of Gibson tanks) Current Prior US$50/bbl US$60/bbl US$70/bbl Source: 2018 CAPP Forecast, CERI July 2018, Outlook, Gibson estimates. Prior expectation of minimum of 1 to 2 tanks per year on a run rate basis assumed: 7 9 million barrels of incremental storage demand net to GEI, assuming 60% 80% Gibson market share US$45 US$65/bbl WTI Increased outlook of 2 to 4 tanks per year in current environment reflects: Improvement in oil prices Increased expectations for oil sands growth Short and long term egress outlook Continue to see upside to outlook to the extent oil prices continue to strengthen, producers desire to maintain more days storage and/or market share remains at recent levels Gibson continues to expect to construct future tankage at between 5x 7x EBITDA build multiples

10 Incremental Growth to Reach 10% a Year Target Continue to see opportunities for meaningful additional growth beyond tanks Terminal Growth Beyond Tankage Add inbound/outbound pipeline connections or expand Hardisty rail facility to provide more flexibility for customers Work with customers to sanction facility optimizations and develop other creative valueadded service offerings Offer/expand terminalling opportunities on multiple products in addition to crude oil Grow Gathering Pipelines Around Terminals Grow U.S. Platform ~400 km of 100% owned and operated existing pipelines driving volumes to the Hardisty Terminal, with decades of experience operating gathering pipelines into Hardisty Recently sanctioned 120 km Viking Pipeline Project to be in-service by end of Q at a cost of ~$50 million Competitive advantage from existing connectivity into egress pipelines and access to storage and blending through Terminals position Acceleration of U.S. strategy has established third infrastructure investment platform Expansion of Pyote System provides visibility to reaching at least $25 $50 million per year of capital investment target through at least end of 2019 Intention to continue to grow Pyote System, with the potential for further upside through optimization and/or terminalling opportunities in the future Continue to pursue additional smaller-scale pipeline and gathering system opportunities Realize Further Cost Savings Demonstrated meaningful progress on reducing operating expenses, maintenance capital and G&A overhead in the first nine months of 2018 Continue to execute on additional opportunities to improve the cost structure as cost-focus becomes further ingrained into corporate culture 10

11 Terminal Growth Beyond Tanks Ancillary terminal infrastructure remains a meaningful growth opportunity Pipeline Connections Facility Optimization Add inbound/outbound connections to provide flexibility for customers Working with customers to develop creative value added service offerings Rail Connections Product Terminalling Provide additional rail connections and/or increase rail terminal capacity Offering/exploring terminalling opportunities on multiple products (in addition to crude) 11

12 Canadian Pipelines Expanding network with $50 million Viking Pipeline Project in-service Q T45 T40 T35 T30 Map of Gibson Pipeline Network BELLSHILL PIPELINE ~102KM 30,000 bbl/d capacity R10 R5 R1W4 HARDISTY TERMINAL VIKING VIKING PIPELINE PROJECT ~120KM 13,300 bbl/d capacity PROVOST PIPELINE PROVOST ~292KM PIPELINE 50,000 ~292KM bbl/d capacity 50,000 bbl/d capacity Canadian Pipelines Overview With Viking Pipeline Project, will have over 500 km of 100% owned and operated pipelines driving volume into the Hardisty Terminal Existing connectivity into egress pipelines through Terminal position and access to storage provides competitive advantage Positioned to benefit from growth in the Viking play Light, sweet oil play with attractive well economics even around US$50/bbl WTI Payback periods of less than a year in most parts of the play at current WTI prices and assuming normalized differentials Viking Pipeline Project Overview Leverages the existing network to deliver sweet crude oil production from the Viking into the Hardisty Sweet Terminal ~120 km pipeline system consisting of 4, 6 and 8 pipelines Initial capacity of 13,300 bbl/d in-service by end of Q1 2019, expandable to over 25,000 bbl/d in the future Estimated cost of approximately $50 million Underpinned by agreements with multiple customers Take-or-pay commitment in addition to area of dedication

13 Moose Jaw Facility Achieved cost reductions and sanctioned high-impact expansion project Realized meaningful cost reductions in operating expenses and maintenance capital, and have shifted towards lower cost crude slates to maximize margin from the facility Sanctioned high-impact capital investment with the Moose Jaw Expansion Project Estimated capital cost of $20 - $25 million, with a simple payback of approximately one year at current differentials and around three years at more normalized levels Continue to progress initiative to convert a portion of throughput capacity to longer-term tolling structure Wider, more volatile differentials impacting the pace of discussions Refinery Group Historical Cash Flow Volatility (1) Moose Jaw Expansion Project 100% (standard deviation of YoY change in EBITDA) Impact ~30% increase in throughput capacity to between 19,500 and 22,000 bpd In-service Date Q % Capital Cost $20 - $25 million Build Multiple 1.0x - 3.0x EBITDA 0% GEI Peer A Peer B Peer C Peer D Peer E Peer F Peer G 13 (1) Source: BMO Capital Markets ( ). Refinery group includes Andeavor, Delek, HollyFrontier, Marathon Oil, PBF, Phillips 66, and Valero.

14 U.S. Growth Plan Outlined at Investor Day Acceleration of U.S. strategy delivers original plan months earlier 1 Hire U.S. Team Experience and relationships viewed as critical component to success in U.S. Hired Chief Commercial Officer with U.S. background and VP, Business Development Targeting Q First Purchaser Capability & Producer Relationship Requires producer services capability to secure barrel Targeting Q First purchaser capability in place in June; continue to expand capability to help customers move barrels out of egress constrained Permian 3 Drive Volume to Injection Stations and Pipelines ~30 injection stations located in prime locations in Permian & SCOOP / STACK Targeting Q Ability to move barrels was limited by availability of drivers; still on track to meet target, especially with interim Pyote expansion volumes 4 Seek Partnership with Producers Secure larger pieces of business by aligning with producers in an area 2019 Aligned with two producers on 65,000 dedicated acres 5 Restore Business to 2015 Levels of $10 - $15mm EBITDA 2019 Expect profitability in H2 2018, with volumes from 65,000 acre dedication providing additional confidence of achieving in Establish Platform to Drive $25 - $50mm of Annual Infrastructure Investment Secured for 2018 and

15 Growing U.S. Platform Footprint located at the heart of the Permian and SCOOP / STACK plays Pyote System expected to reach 12,000 barrels a day of throughput in near term, with visibility to grow to 20,000 25,000 barrels a day from existing area of dedication Provides scale to support connectivity to nearby Wink Hub and major egress pipelines in the region Existing premium injection station locations accessing many of the key crude oil egress pipelines in the Permian and the SCOOP/STACK provide a competitive advantage to support further growing the U.S. business Permian Injection Station Position SCOOP / STACK Injection Station Position Pipeline Network Connectivity Plains All American Sunoco / ETP Centurion Enterprise Blue Knight Flint Hills Kinder Morgan Koch OTI Valero PYOTE OIL PIPELINE Gulf Coast Refining Complex Pipeline Network Connectivity Plains All American Sunoco / ETP Centurion CVR Phillips 66 SemCrude Valero CUSHING 15

16 Permian Infrastructure Strategy Will continue to expand Pyote, creating infrastructure investment opportunities EXISTING PYOTE PIPELINE WINK HUB FUTURE CONNECTION TO WINK HUB PHILLIPS 66 GREY OAK PIPELINE IN SERVICE Q FUTURE SYSTEM CONNECTION PYOTE PIPELINE EXTENSION IN SERVICE LATE 2018 / EARLY 2019 PLAINS BASIN PIPELINE PLAINS / EXXON JV PERMIAN PIPELINE IN SERVICE Q MAGELLAN PIPELINE IN SERVICE Q AREA OF DEDICATION Place the Expanded Pyote System into Service Existing Pyote system capable of service by year end, limited by available egress Place Pyote Expansion into service in mid to late 2019, including connections into egress pipelines Potential to add access to other major egress pipelines Connect Expanded Pyote System to Wink Hub Targeting connectivity into Wink hub by late 2019 / early 2020, providing access to up to four additional major egress pipelines Drive volumes into Pyote system Trucking capability important to establishing relationships with regional producers Translate trucking volumes into future Pyote expansions or potential new systems Explore incremental opportunities for optimization and/or terminalling around existing position 16

17 Non-Core Divestiture Process Ahead of schedule, with proceeds likely at high end of $275 $375 million range Segment Q1 Q2 Q3 Q4 Q Q2 Transaction Closed Q Industrial Propane U.S. Environmental Services Transaction Closed Q NGL Wholesale Targeting to announce in the near term Canadian Truck Transportation Potential to announce transaction in late 2018 or early 2019 Non-Core CDN Environmental Services Targeting to announce in the near term U.S. Non-Core Truck Transportation Completed Divestitures and Rationalizations Q Aggregate Disposition Proceeds (excludes Industrial Propane) $275mm - $375mm 17

18 Contract Structure Composition Approaching ~85% 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 two-thirds of exposures Infrastructure expected to generate $270-$290 million in Segment Profit in 2018E, with Terminals representing approximately 80% - 85% of infrastructure In H2 2019, when divestitures are complete and projects currently under construction are in-service, infrastructure expected to comprise ~85% of Segment Profit, with ~75% from Terminals, assuming normalized wholesale contribution Contract Structures as Percent of EBITDA (1) Terminals Credit Profile 100% (%) Product Margin (IG 2017A Terminal Revenues % of Total) AA- to AA+ ~5% 80% 60% 40% Commodity Fee-For-Service Stable Fee-For-Service Take-or-Pay BBB- to BBB+ ~30% Non-IG ~10% A- to A+ ~55% 20% 18 0% E 2019E Approximately 90% of current revenues within Terminals from Investment Grade counterparties with weighted average contract life of approximately 10 years remaining (1) Refers to EBITDA after inclusion of lease costs and is not comparable to figures prepared under IFRS estimates based on a mid-cycle contribution from Wholesale. Note: Fixed-fee intercompany contracts currently represent approximately 20% of infrastructure segment profit, with the proportion expected to decline over time; Figures assume incremental Infrastructure profit is 80% Take-or-Pay, in line with governing principles. Investment grade ratings as per Moody s and / or S&P

19 Contract Quality & Balance Sheet Comparison Attractive contract quality and leverage relative to peer group Proportion Take-or-Pay & Fee-for-Service (%) Net Debt / 2018E EBITDA (x) 100% 8.0x 80% 6.0x 60% 4.0x 40% 20% 2.0x 0% Peer A Peer B Peer C GEI Peer D Peer E 0.0x Peer A Peer B Peer C Peer D GEI Peer E 19 Source: Peer numbers and Gibson Net Debt / 2018E EBITDA per BMO Capital Markets and include Enbridge, Inter Pipeline, Keyera, Pembina, and TransCanada (December 2017 for take-or-pay & fee-for service and October 26, 2018 for Net Debt / 2018E EBITDA); Gibson take-or-pay & fee-for-service numbers per internal Q forecast; includes internal take-or-pay and fee-for-service contributions

20 Sources and Uses Fully funded for currently sanctioned capital, with cushion continuing to build Consistent with the funding strategy outlined at Investor Day, dividend to be fully covered by distributable cash flow, with capital fully funded by redeployment of disposition proceeds and retained cash flow since the start of the year Approximately $25 - $35 million of infrastructure cash flows coming on each year supports additional ~$100 million of debt funding each year while maintaining target 3.0x 3.5 Net Debt / Adj. EBITDA Aggregate Sources and Uses Through End of 2019 Core Funding Strategy Realized / Potential Retained cash flow through end of 2019 initially used to reduce debt will be used to fund equity portion of infrastructure capital, if required Disposition proceeds to fully fund capital through 2019 required to achieve 10% growth into 2020 Funding Strategy outlined at Investor Day resulted in payout ratio at or below 100% DCF to cover Dividend Disposition Proceeds Realized & Potential 2018 DCF Potential 2019 DCF Potential to fund additional growth through end of 2019 with continued strength from Wholesale Dividend Top of Hill Phase 2 & Phase 3, U.S. Accel & Moose Jaw Previously Sanctioned Capital 20 DCF to cover Dividend Disposition Proceeds Retained DCF from 2018 Potentail for DCF 2019 Total Sources Dividend Previously Sanctioned Capital Potential Project

21 Potential Growth Trajectory Existing platform offers line of sight to projects to reach 10%+ annual growth Line of sight to grow continuing business at or above target 10% growth rate through 2020 based on secured growth under construction and anticipated cost savings Require $150 - $200 million in capital projects per year to sustain 10% growth target Securing at least 1 to 2 tanks per year drives mid- to upper-single digit distributable cash flow growth long-term Expect to grow at 10% or more per year with sanction of more than 1 to 2 tanks per year, construction of additional gathering pipelines in Canada and/or through infrastructure opportunities in the U.S. Distributable Cash Flow at Target 10% Growth Rate $2.00 (C$ per share) $1.50 $1.00 Combined Basis (1) Investing $150 to $200 million per year results in double-digit distributable cash flow per share growth rate $0.50 Continuing Basis (2) $ E 2019E 2020E 2021E 2022E (1) Combined Basis includes contributions from businesses to be divested for periods prior to projected close of respective divestiture transaction. (2) Continuing Basis only includes contributions from businesses to be retained at conclusion of non-core divestitures.

22 Strong Financial Position Leverage and payout ratio to be within target with mid-cycle Wholesale Stronger contribution from Wholesale has pushed down leverage and payout much faster than initially anticipated While the supportive environment for Wholesale appears likely to continue into 2019, funding model and the delivery of plan is not contingent on cyclical cash flows Projects sanctioned and under construction provide visibility to reaching target leverage and payout ranges in assuming only a mid-cycle contribution from Wholesale Net Debt (1) / Adj. EBITDA Payout Ratio 5.0x (x) (%) 120% 4.0x 100% 80% 3.0x 2.0x Potential range with supportive macro for Wholesale Targeting long-term leverage of 3.0x 3.5x 60% 40% Potential range with supportive macro for Wholesale Targeting long-term payout of 70% to 80% 1.0x 20% 0.0x 2018E 2019E 2020E 2021E 2022E 0% 2018E 2019E 2020E 2021E 2022E 22 (1) Defined as book value of long term debt plus revolving credit facility less cash

23 Key Takeaways Continue to Deliver Dramatic Transformation High-Quality Oil Infrastructure Visibility to Growth Near-Term Platform for 10%+ Growth Longer-Term Strong Financial Position 23

24 GIBSON ENERGY INVESTOR PRESENTATION APPENDIX

25 Increased 2018 Capital Expenditure Budget Expected to be in the range of $275 million to $325 million Hardisty Terminal $135 - $155 Edmonton Terminal $25 - $30 Total Terminals $160 - $185 (1) U.S. Infrastructure $65 - $75 Viking Pipeline $45 - $55 Moose Jaw Expansion $5 - $10 Total $275 - $325 (1) Inclusive of acquisition costs. Growth Capital (C$mm) Sanctioned capital for 2018 and 2019 is now approximately $0.5B Exceeds high end of target range required to support target growth into 2020 Expect to sanction at least 1 to 2 tanks each year on run-rate basis in a US$50 WTI price environment In the current environment, even with wider differentials, more likely at a run-rate of 2 to 4 tanks per year Continue to be in discussions for additional tankage, with potential to sanction additional projects over the balance of the year Infrastructure $15 - $20 (1) Logistics $0 - $5 Other $0 - $5 25 Upgrade and Replacement Capital (C$mm) (1) Logistics excludes $1 million incurred for U.S. Environmental Services, which Gibson divested the second quarter of Expect to deploy $20 $30 million per year on inside the fence opportunities at Terminals Continue to advance gathering system opportunities in both Canada and the US

26 Governing Principles Committed to maintaining a strong financial position by managing to key targets Long-Term Governing Financial Principles Quality of Cash Flows High Quality Contract Structure Creditworthy Counterparties >80% segment profit from take-or-pay and high-quality fee-for-service contracts >85% of exposures under long-term contracts to be with investment grade counterparties Financial Flexibility Strong Balance Sheet Maintain & Improve Credit Ratings Net Debt / Adjusted EBITDA leverage ratio of 3.0x 3.5x Secure Investment Grade rating Funding Model Capital Funding Strategy Sustainable Payout Ratio Fund growth capital expenditures with maximum 50% 60% debt Sustainable long-term payout ratio of 70% 80% of distributable cash flow 100% coverage of fixed capital charges (interest + dividends) with Infrastructure cash flows 26

27 Capital Funding Approach and Maturity Profile Disciplined funding approach to ensure strong financial position Capital Funding Approach Maturity Profile (C$ millions) Disposition Proceeds Reinvested into Business Fund Growth with Maximum 50% - 60% Leverage 800 Strategic direction to sell non-core business provides sufficient proceeds to fund majority of infrastructure growth capital through 2019 Proceeds will be applied to reduce debt as divestitures close Retained cash flow initially used to reduce debt, and later to fund equity component of infrastructure growth capital Commitment to maintaining strong financial position through prudent funding of future growth capital Senior $560M Credit Facility ($245mm Drawn) (1) Senior Unsecured 5.25% Notes Significant existing liquidity to absorb timing variance between capital spending profile and divestiture timing Limiting leverage on future growth capital to 50% 60% of capital investment, consistent with commitment to strong financial position 200 Senior Unsecured 5.375% Notes Provides line of sight to achieving target leverage Unsecured 5.25% Convertible Debenture 27 (1) Floating rate revolving credit facility; drawn balance at September 30, E 2019E 2020E 2021E 2022E 2023E 2024E

28 Investor Relations Contacts & Forward-Looking Statement Notice Investor Relations Mark Chyc-Cies VP, Strategy, Planning & Investor Relations Certain statements contained in this presentation constitute forward-looking information and statements (collectively, forward-looking statements ) including, but not limited to, statements concerning the future payment of dividends by Gibson Energy Inc. and the amount and sources of such dividends, and management s expectations with respect to the business and financial prospects and opportunities of Gibson Energy Inc. or its subsidiaries ( Gibson or the Company ), forecast operating and financial results of Gibson and its respective business segments for year end 2018 and future periods, business and funding strategy and plans of management (including targeted timing), transition of Gibson to a focused oil infrastructure growth company, anticipated growth (including segment growth and annualized growth rate projections) and the sources of financing thereof, capital investment and the amount, sources and timing thereof, proposed divestitures and the completion, anticipated proceeds, use of proceeds and timing thereof, objectives of or involving Gibson, expectations of future market conditions, expectations regarding existing and future counterparties, capital allocation, cost savings and sources thereof, investments, pipeline expansion opportunities and areas for potential growth and costs and timing thereof, anticipated transition of Moose Jaw facility to a tolling model and the timing thereof, Gibson s expectations with respect to in-service dates for current tankage, tankage demand and ability to sanction additional tankage, Gibson s ability to grow its U.S. business, including volume and EBITDA expectations of the Pyote expansion opportunity, and the timing thereof, anticipated impact of commodity prices, projections for 2019 and future years and Gibson's plans and strategies to realize such projections, expectations and targets for growth capital, contribution to EBITDA and cash flows, EBITDA, cash flows, distributable cash flow, debt and net debt to Adjusted EBITDA ratios, payout ratio, anticipated leverage, increased crude oil production and exploration activity on shore in North America, including from the Canadian oil sands, and Gibson's anticipated market share. These statements relate to future events or the Company s future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words anticipate, plan, contemplate, continue, aim, target, must, commit, estimate, expect, intend, propose, might, may, will, shall, project, should, could, would, believe, predict, forecast, pursue, potential and capable and similar expressions are intended to identify forwardlooking statements. The forward looking statements reflect Gibson's beliefs and assumptions with respect to, among other things, general economic trends, industry trends, commodity prices, capital markets, the governmental, regulatory and legal environment in the various jurisdictions in which Gibson's conducts and will conduct its business, Gibson's ability to obtain qualified personnel, owner-operators, lease operators and equipment in a timely and cost-efficient manner, Gibson's ability to generate sufficient cash to meet its current and future obligations, achievability of leverage and payout targets and timing thereof, the number of oil sands projects sanctioned and storage days producers require, Gibson's ability to obtain financing for its capital programs on acceptable terms, the successful and timely implementation of capital projects in a manner consistent with financial expectations, expectations regarding the sources of funding of growth initiatives, Gibson s financial results for year end 2018, Gibson s ability to generate sufficient cash flow to meet Gibson s current and future obligations, Gibson's future debt levels, Gibson s dividend policy, Gibson s ability to re-build and grow its U.S. business in a manner consistent with expectations, Gibson s ability to complete anticipated divestiture transactions on acceptable terms, product supply and demand including demand for tankage, costs, and other assumptions inherent in management s expectations of future operating and financial results of Gibson and its respective business segments and other forward-looking statements identified herein. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. The Company s actual results could differ materially from those anticipated in these forward-looking statements as a result of, among other things, risks inherent in the businesses conducted by Gibson, regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, the number of oil sands projects sanctioned and storage days producers require world-wide demand for crude oil and petroleum products, volatility of commodity prices, currency and interest rates fluctuations, product supply and demand including demand for tankage, risk that actual financial results for the year ended December 31, 2018 may be different from the estimates disclosed herein, changes in credit ratings applicable to Gibson, operating costs and the accuracy of cost estimates, exposure to counterparties and partners, including ability and willingness of such parties to satisfy contractual obligations in a timely manner, future capital expenditures, Gibson's ability to obtain necessary regulatory approvals, the successful and timely implementation of capital projects or stages thereof, changes to Gibson's business plans or strategy, Gibson s ability to access various sources of debt and equity capital, generally, and on terms acceptable to Gibson, Gibson s ability to complete anticipated divestiture transactions on acceptable terms, Gibson s ability to finance growth and sustaining capital expenditures, changes to Gibson s dividend plans or strategy and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing lists are not exhaustive. 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 The purpose of the estimated year end 2018 financial information contained herein including but not limited to, estimates for such period, and future periods, of distributable cash flow and sources thereof, segment EBITDA, sources of EBITDA, capital allocations, segment profit and net debt to EBITDA ratios, is to assist investors, shareholders, and others in understanding certain financial metrics relating to expected year end 2018 financial results for the purpose of evaluating the performance of Gibson's business for such period and future periods. This information may not be appropriate for other purposes. Gibson has not completed its financial review process and related assessments for the year ended December 31, The results and conclusions of these assessments, along with the known and unknown risks, uncertainties and other factors referred to above and described in Gibson's publicly available securities laws filing available at could impact Gibson's estimates, and actual financial results, for the year ended December 31, 2018 and the information related to such period and future periods contained herein and any such impact could be material. Segment profit, EBITDA, Adjusted EBITDA and distributable cash flow information presented for year 2018 and onwards in the presentation has been normalized to exclude the impacts of early adoption of IFRS 16 Leases for comparability purposes. The forward-looking statements contained in this presentation represent the Company s expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. This presentation contains statistical data, market research and industry forecasts that were obtained from government or other industry publications and reports or based on estimates derived from such publications and reports and management s knowledge of, and experience in, the markets in which the Company operates. Government and industry publications and reports generally indicate that they have obtained their information from sources believed to be reliable, but do not guarantee the accuracy and completeness of their information. Often, such information is provided subject to specific terms and conditions limiting the liability of the provider, disclaiming any responsibility for such information, and/or limiting a third-party s ability to rely on such information. None of the authors of such publications and reports has provided any form of consultation, advice or counsel regarding any aspect of, or is in any way whatsoever associated with this presentation. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. While management believes this data to be reliable, market and industry data is subject to variations and cannot be verified due to limits on the availability and reliability of data inputs, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any market or other survey. Accordingly, the accuracy, currency and completeness of this information cannot be guaranteed. The Company has not independently verified any of the data from third-party sources referred to in this presentation or ascertained the underlying assumptions relied upon by such sources. This presentation may also contain references to non-gaap measures. These measures have been described and presented in order to provide shareholders and potential investors with additional information regarding Gibson s liquidity and its ability to generate funds to finance its operations. Readers are encouraged to review our most recent Management s Discussion and Analysis, available at for a full discussion of the use of each measure. 28 General Investor Inquiries Investor.Relations@gibsonenergy.com