Mr. Steve Spaulding reports

GIBSON ENERGY ANNOUNCES 2024 CAPITAL BUDGET AND ADDITION OF TWO NEW DIRECTORS TO ITS BOARD

Gibson Energy Inc. has set its target for growth capital expenditures in 2024 at $150-million. Additionally, Gibson's board of directors has approved the allocation of between $40-million and $45-million in replacement capital expenditures in 2024. The company expects 2023 growth capital expenditures of approximately $125-million.

"I am pleased to announce our growth capital budget for 2024 which reinforces Gibson's commitment to pursuing high-quality, infrastructure opportunities that generate positive returns and position the company for sustained success," said Steve Spaulding, president and chief executive officer. "The budget reflects approximately $125-million of growth capital focused primarily on funding projects in Edmonton as well as Hardisty and Moose Jaw, and an incremental $25-million of capital expected to be deployed principally at our newly acquired Gateway terminal."

Financing position

With this capital budget, Gibson is fully financing and expects to remain within its financial governing principles with the benefit of growing stable infrastructure cash flows throughout 2024, which will include a full year of cash flows from the recently acquired Gateway terminal in Ingleside, Tex. At the end of the third quarter of 2023, the company's net debt to adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) ratio, when adjusted to reflect a full-year contribution of the acquisition, and its dividend payout ratio were within its target ranges of three to 3.5 times and below 70 to 80 per cent, respectively.

"We will remain disciplined in 2024 when it comes to deploying capital, and adhering to our key governing principles and capital allocation philosophy," said Sean Brown, senior vice-president and chief financial officer. "While our share repurchase program was halted with the announcement of the acquisition, depending on the ultimate size of our capital program in 2024 and the performance of our business, we see the potential to return excess capital to shareholders through share repurchases towards the end of 2024."

Board update

Gibson also announced today the appointment of two new directors to its board effective Dec. 5, 2023: Maria Hooper, an internationally recognized energy executive, and Khalid Muslih, a growth and transformation executive, both of whom have extensive experience with the U.S. and global energy markets and Gibson's newly acquired Gateway terminal.

"With the acquisition of Gateway and our expansion across North America, it was imperative that we look to bring in new, diverse perspectives that will support our ambitions and enable us to deliver on our growth strategy, drive profitability and enhance value for our shareholders," said James Estey, chair of the board. "Maria and Khalid joining the board has deepened our expertise in the U.S. market, specifically in global trading and marine terminals."

With these changes, Gibson's board will comprise 11 directors, five of whom will have been appointed in the past three years, demonstrating its commitment to board rejuvenation and strong governance practices. In addition, over 50 per cent of Gibson's board positions will now be held by members of diverse communities, exceeding the company's environmental, social and governance (ESG) targets in these areas.

"We are thrilled that this commitment to leading board governance was recognized today by The Globe and Mail which scored Gibson 90 of out 100 in their 2023 Board Games ranking, placing Gibson at 27 of 219 companies," said Jim Estey, chair of the board.

As a part of joining Gibson's board of directors, Ms. Hooper will also serve on the audit committee and health and safety committee, and Mr. Muslih will serve on the corporate governance, compensation and nomination committee, and sustainability and ESG committee.

About Ms. Hooper

Maria is a global energy industry executive with over 30 years experience driving growth in financial results, leading adaptive change and ensuring long-term sustainability for leading energy organizations, most recently as senior vice-president, commercial, at Phillips 66.

Ms. Hooper is an innovative business builder who collaborates internally and externally to identify and capitalize on new opportunities in the market, and consistently gains stakeholder and team commitment to exceed business targets.

Earlier in her career, she served in senior leadership roles at ConocoPhillips and in various positions at Producers Energy Trading LLC, Apache Corp. and ANR Pipeline.

Ms. Hooper earned a bachelor of science degree in petroleum engineering from the University of Texas at Austin.

About Mr. Muslih

Mr. Muslih is the chief executive officer of Manchester Energy, an EnCap Flatrock Midstream and EnCap Investments portfolio company. Mr. Muslih has over 30 years of corporate leadership and operational management experience for both private and publicly traded companies.

Prior to founding Manchester Energy, he served as executive vice-president at Buckeye Partners LP where he spearheaded the company's strategic vision and led its growth and transformation from a regional pipeline transportation company into a global, diversified logistics enterprise. During his time at Buckeye, he also established Buckeye's alternative energy business and steered its carbon mitigation efforts by leading the company's expansion into renewable energy and next-generation fuels.

Mr. Muslih earned a master of business administration from the University of Houston and a bachelor of science in civil engineering from the University of Texas at Austin.

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., Ingleside, Tex., and including a facility in Moose Jaw, Sask.

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