Mr. Steve Spaulding reports

GIBSON ENERGY ANNOUNCES 2023 THIRD QUARTER RESULTS

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

"With the successful closing of the Gateway Terminal acquisition during the third quarter, Gibson is pleased to report solid results driven by the infrastructure segment exceeding expectations and marketing meeting expectations," said Steve Spaulding, president and chief executive officer. "Looking forward, we are confident around the outlook for our expanded liquids infrastructure asset base and will continue to focus on growing long-term, high-quality cash flows. In addition to our impressive financial and operational results, we entered into a renewable energy power purchase agreement, with Capstone Infrastructure Corp. and Sawridge First Nation, which demonstrates Gibson's commitment to the low-carbon transition and reaching net zero by 2050."

Financial highlights:

• Revenue of $3,226-million in the third quarter, a $574-million or 22-per-cent increase relative to the third quarter of 2022, primarily due to increased revenues within the marketing segment driven by higher volumes, partially offset by lower commodity prices;
• Infrastructure adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $140-million in the third quarter, a $29-million or 26-per-cent increase relative to the third quarter of 2022, primarily driven by the two-month contribution from the newly acquired Gateway Terminal, as well as strong performance from the legacy infrastructure business;
• Marketing adjusted EBITDA of $24-million in the third quarter, a $24-million or 50-per-cent decrease from the third quarter of 2022, primarily due to lower refined product margins;
• Adjusted EBITDA on a consolidated basis of $150-million in the third quarter, flat relative to the third quarter of 2022, as result of the factors described above, as well as somewhat higher general and administrative expenses;
• Net income of $21-million in the third quarter, a $51-million or 71-per-cent decrease over the third quarter of 2022, primarily due to the acquisition and integration costs and higher finance costs incurred during the current period as a result of the Gateway Terminal acquisition and related financing activities, partially offset by lower income tax expense and lower depreciation expense in the current period;
• Distributable cash flow of $93-million in the third quarter, a $22-million or 19-per-cent decrease from the third quarter of 2022, a result of the factors described above;
• Dividend payout ratio on a trailing 12-month basis of 61 per cent, below the company's 70-per-cent-to-80-per-cent target range;
• Net debt to adjusted EBITDA ratio at Sept. 30, 2023, of 4.0 times, above the top end of the company's 3.0-times-to-3.5-times target range due to adjusted EBITDA, including only two months of contribution from the Gateway Terminal; it expects the net debt to adjusted EBITDA ratio to be temporarily elevated until 12 months of adjusted EBITDA from the Gateway Terminal are reflected in the company's net debt to adjusted EBITDA ratio.

Strategic developments and highlights:

• Closed the acquisition of 100 per cent of the membership interests of South Texas Gateway Terminal LLC for $1.1-billion (U.S.), through which Gibson acquired the Gateway Terminal; this purpose-built high-quality crude oil export facility complements and diversifies the company's existing high-quality liquids infrastructure asset base;
• Closed the previously announced offering of $900-million of unsecured medium-term notes, as well as the offering of $200-million of 8.70 per cent fixed-to-fixed-rate subordinated notes;
• The company released its 2022 sustainability update report and announced it had entered into a 15-year renewable energy power purchase agreement, with Capstone Infrastructure and Sawridge First Nation, which is expected to meet over 50 per cent of Gibson's annual electricity needs over the period.

Management's discussion and analysis and financial statements

The third 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 nine months ended Sept. 30, 2023, as compared with the three and nine months ended Sept. 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 third quarter 2023 financial and operating results at 7 a.m. Mountain Time (9 a.m. Eastern Time) on Tuesday, Oct. 31, 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 Nov. 14, 2023, using the following dial-in numbers: 416-764-8677/1-888-390-0541 and the replay entry code 105312 followed by the number sign.

Supplementary information

Gibson has also made available certain supplementary information regarding the third 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 located across North America, with core terminal assets in Hardisty and Edmonton, Alta., and Ingleside, Tex., and including a facility in Moose Jaw, Sask.

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

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