Mr. Steve Spaulding reports

GIBSON ENERGY ANNOUNCES 2023 FIRST QUARTER RESULTS

Gibson Energy Inc. today released its financial and operating results for the three months ended March 31, 2023.

"Gibson is off to a great start in 2023, with adjusted EBITDA in the quarter reaching a new high-water mark, driven by consistent results from the infrastructure segment and a marketing contribution well above our initial outlook," said Steve Spaulding, president and chief executive officer. "This solid business performance has further improved our leading financial position to a payout ratio of 56 per cent and leverage of 2.4 times, both below our target ranges, and enables us to increase our share repurchase target for the second quarter to $50-million resulting in a potential full year repurchase of up to $125-million. Importantly, since the start of the year, we have continued to progress discussions with customers to underpin the sanction of incremental infrastructure projects and have increasing line of sight to exceeding the high end of our $100-million to $125-million growth capital target for the year."

Financial highlights:

• Revenue of $2,366-million in the first quarter, a $322-million or 12-per-cent decrease over the first quarter of 2022, primarily a result of lower commodity prices decreasing contribution from the marketing segment;
• Infrastructure adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $108-million in the first quarter, a $1-million or 1-per-cent decrease from the first quarter of 2022, with an increase in contribution at the DRU offset by a decrease from pipelines;
• Marketing adjusted EBITDA of $59-million in the first quarter, a $38-million or 185-per-cent increase from the first quarter of 2022, primarily due to a much stronger contribution from both refined products and crude marketing;
• Adjusted EBITDA on a consolidated basis of $155-million in the first quarter, a $34-million or 28-per-cent increase over the first quarter of 2022, as result of the factors described herein;
• Net income of $88-million in the first quarter, a $36-million or 70-per-cent increase over the first quarter of 2022, due to the factors described herein and lower depreciation partially offset by higher income tax expense and interest expense;
• Distributable cash flow of $107-million in the first quarter, a $28-million or 36-per-cent increase from the first quarter of 2022, a result of the factors described herein;
• Dividend payout ratio on a trailing-12-month basis of 56 per cent, below the company's 70-per-cent to 80-per-cent target range;
• Net debt to adjusted EBITDA ratio at March 31, 2023, of 2.4 times, below the bottom end of the company's 3.0 times to 3.5 times target range.

Strategic developments and highlights:

• Repurchased 1.1 million shares for an aggregate $27-million in the first quarter plus an additional 700,000 shares subsequent to the end of the quarter, for a total to date this year of 1.8 million shares for an aggregate $42-million representing 1.3 per cent of outstanding shares;
• Announced continued progress in its sustainability journey, achieving top quartile safety performance in 2022 among North American peers highlighted by lost-time injury frequency and recordable vehicle incident frequent rates of zero for both employees and contractors for the third year in a row, with a total recordable injury frequency rate of 0.46 for employees that places Gibson in the top quartile within its peer group for the second year in a row;
• Announced that Gibson's board of directors approved a quarterly dividend of 39 cents per common share, an increase of two cents per common share or 5 per cent, beginning with the dividend payable in April;
• Renewed the company's $750-million sustainability-linked revolving credit facility, extending its maturity into 2028.

Management's discussion and analysis and financial statements

The 2023 first quarter management's discussion and analysis and unaudited condensed consolidated financial statements provide a detailed explanation of Gibson's financial and operating results for the three months ended March 31, 2023, as compared with the three months ended March 31, 2022. These documents are available at the Gibson Energy website and at SEDAR.

Earnings conference call and webcast details

A conference call and webcast will be held to discuss the 2023 first quarter and operating results at 7 a.m. Mountain Time (9 a.m. Eastern Time) on Tuesday, May 2, 2023.

The conference call dial-in numbers are:

• 416-764-8659/1-888-664-6392

The webcast will remain accessible for a 12-month period. Additionally, a digital recording will be available for replay two hours after the call's completion until May 16, 2023, using the following dial-in numbers:

• 416-764-8677/1-888-390-0541;
• Replay entry code: 101920.

Annual general meeting and webcast details

Gibson is holding its annual meeting of shareholders on Tuesday, May 2, 2023, at 10 a.m. Mountain Time (noon Eastern Time). This meeting will be held in a hybrid format (virtual and in person). Applying technology to the meeting by allowing virtual participation will make the meeting more relevant, accessible and engaging for all involved, permitting a broader base of shareholders to participate in the meeting, regardless of their geographic location. The optional virtual format for the meeting will also help mitigate health and safety risks.

Following the conclusion of the formal proceedings of the annual shareholder meeting, Steve Spaulding, president and chief executive officer, will address shareholders and provide brief remarks on the current state of the business and discuss the highlights of the company's key initiatives.

Attending in person

• Lumi Experience Studio;
• Suite 1410, 225 6 Ave SW, Calgary, Alta.

Additionally, information and materials related to the annual general meeting of shareholders can be accessed through the company's website.

Supplementary Information

Gibson has also made available certain supplementary information regarding the 2023 first quarter financial and operating results, available at the Gibson Energy website.

About Gibson Energy Inc.

Gibson Energy is a Canadian-based liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing and gathering of liquids and refined products. Headquartered in Calgary, Alta., the company's operations are focused around its core terminal assets located at Hardisty and Edmonton, Alta., and include the Moose Jaw facility and an infrastructure position in the United States.

We seek Safe Harbor.