Mr. Steve Spaulding reports

GIBSON ENERGY ANNOUNCES 2023 SECOND QUARTER RESULTS

Gibson Energy Inc. has released its financial and operating results for the three months ended June 30, 2023.

"Exiting the first half of 2023, we are pleased to report strong results from both the infrastructure and marketing segments, with marketing segment profit above previously communicated expectations," said Steve Spaulding, president and chief executive officer. "Beyond our financial results, we are very excited to have announced the expansion of our infrastructure platform with the acquisition of the South Texas gateway terminal, which is expected to close in the very near term. In addition, during the quarter, we continued to expand our existing infrastructure business in Edmonton with the sanctioning of two tanks underpinned by a 15-year contract with Cenovus Energy Inc."

Financial highlights:

• Revenue of $2,613-million in the second quarter decreased by $582-million or 18 per cent relative to the second quarter of 2022, primarily due to decreased revenues within the marketing segment driven by lower commodity prices, only partially offset by higher volumes;
• Infrastructure adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $94-million in the second quarter, an $18-million or 16-per-cent decrease relative to the second quarter of 2022 due to a $17-million environmental remediation provision taken in the quarter; absent the provision, infrastructure adjusted EBITDA was relatively flat;
• Marketing adjusted EBITDA (1) of $34-million in the second quarter, a $22-million or 177-per-cent increase from the second quarter of 2022, primarily due to an improvement in the availability of location, time and quality-based opportunities for crude marketing, as well as higher refined product margins;
• Adjusted EBITDA (1) on a consolidated basis of $116-million in the second quarter, a $2-million or 2-per-cent increase over the second quarter of 2022, as result of the factors described above, and higher general and administrative expenses, as well as the impact of removing the unrealized gains and losses on financial instruments;
• Net income of $52-million in the second quarter, a $16-million or 45-per-cent increase over the second quarter of 2022, due to the factors described above and lower depreciation and finance costs, partially offset by higher income tax expense in the current periods;
• Distributable cash flow (1) of $82-million in the second quarter, a $9-million or 12-per-cent increase from the second quarter of 2022, a result of the factors described above;
• Dividend payout ratio (2) on a trailing 12-month basis of 55 per cent, below the company's 70-per-cent to 80-per-cent target range;
• Net debt to adjusted EBITDA ratio (2) of 2.5 times, below the bottom end of the company's 3.0 times to 3.5 times target range.

(1) Adjusted EBITDA and distributable cash flow are non-generally accepted accounting principle financial measures.

(2) Net debt to adjusted EBITDA ratio and dividend payout ratio are non-GAAP financial ratios.

Management's discussion and analysis and financial statements

The second quarter 2023 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 and six months ended June 30, 2023, as compared with the three and six months ended June 30, 2022. These documents are available at the Gibson website and at SEDAR.

Earnings conference call and webcast details

A conference call and webcast will be held to discuss the second quarter 2023 and operating results at 7 a.m. Mountain Time (9 a.m. Eastern Time) on Tuesday, Aug. 1, 2023.

The conference call dial-in numbers are 416-764-8659/1-888-664-6392.

This call will also be broadcast live on the Internet.

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 Aug. 15, 2023, using the following dial-in numbers: 416-764-8677/1-888-390-0541.

Replay entry code:  138840

Supplementary information

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

About Gibson Energy Inc.

Gibson is a leading 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 currently focused around its core terminal assets located at Hardisty and Edmonton, Alta., and include the Moose Jaw facility in Saskatchewan and an infrastructure position in the United States.

Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange.

We seek Safe Harbor.