Mr. Steve Spaulding reports

GIBSON ENERGY REPORTS 2023 FOURTH QUARTER AND FULL YEAR RESULTS, A 5% DIVIDEND INCREASE AND ANNOUNCES CEO TRANSITION PLAN

Gibson Energy Inc. has released its financial and operating results for the three and 12 months ended Dec. 31, 2023. The company also announced the pending retirement of its president and chief executive officer, Steve Spaulding.

"It was a record-breaking year, with infrastructure adjusted EBITDA and distributable cash flow reaching all-time highs for the second consecutive year," said Steve Spaulding, president and chief executive officer. "This outstanding performance provided us with the confidence in increasing our quarterly dividend by 5 per cent and allowed us to close the year with a strong and sustainable financial profile, with both leverage and our payout ratio at the low end of our target range when accounting for a full year contribution from the Gateway Terminal, setting Gibson up for a strong 2024 and beyond."

Financial highlights:

• Revenue of $11,015-million for the full year, including $2,810-million in the fourth quarter, relatively consistent year over year primarily due to lower average commodity prices reducing revenue from the marketing segment, offset by higher sales volumes and revenue from the Gateway Terminal acquisition.
• Infrastructure adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $494-million for the full year, including $153-million in the fourth quarter, a $52-million or 12-per-cent increase over full year 2022, primarily due to the Gateway Terminal acquisition.
• Marketing adjusted EBITDA of $145-million for the full year, including $28-million in the fourth quarter, a $27-million or 23-per-cent increase over full year 2022 principally due to the improved availability of location and storage-based opportunities for crude marketing.
• Adjusted EBITDA on a consolidated basis of $590-million for the full year, including $170-million in the fourth quarter, a $69-million or 13-per-cent increase over full year 2022, as result of the factors described herein.
• Net income of $214-million for the full year, including $53-million in the fourth quarter, a $9-million or 4-per-cent decrease over full year 2022 due to acquisition and integration costs and higher finance costs relating to the Gateway Terminal acquisition, partially offset by higher adjusted EBITDA.
• Distributable cash flow of $386-million for the full year, including $103-million in the fourth quarter, a $30-million or 8-per-cent increase over full year 2022, a result of the factors described herein.
• Dividend payout ratio on a trailing-12-month basis of 61 per cent, which is below its 70-per-cent to 80-per-cent target range.
• Net debt to adjusted EBITDA at Dec. 31, 2023, of 3.7 times, above the company's 3.0 times to 3.5 times target range due to adjusted EBITDA including only five months of contribution from the Gateway Terminal; the company expects the net debt to adjusted EBITDA ratio to be temporarily elevated until 12 months of adjusted EBITDA from the Gateway Terminal is reflected in the company's net debt to adjusted EBITDA ratio.

Strategic developments and highlights:

• Successfully closed the $1.1-billion (U.S.) acquisition of the South Texas Gateway terminal and fully transitioned the operations and maintenance functions from Buckeye to Gibson effective Jan. 1, 2024.
• Placed the previously announced Edmonton tank into service, in support of the TMX pipeline, on time, on budget and underpinned by a long-term, take-or-pay contract with an investment-grade customer.
• Sanctioned the construction of two new tanks, representing 870,000 barrels of new tankage, at its Edmonton Terminal underpinned by a 15-year take-or-pay and stable fee-based contract agreement with Cenovus Energy Inc., an investment-grade, senior integrated oil sands customer.
• Released its 2022 sustainability report reaffirming its leadership in sustainability through top quartile rankings across key globally recognized ESG (environmental, social and governance) rating agencies.
• Entered into a 15-year renewable power purchase agreement with Capstone Infrastructure Corp. Sawridge First Nation's Buffalo Atlee 2 and 4 wind farms, demonstrating Gibson's commitment to the low-carbon transition and achieving its emission reduction targets, including its net zero by 2050 goal.
• Announced the additions of Maria Hooper, Khalid Muslih and postquarter, Craig Richardson, to the company's board of directors.
• Subsequent to the quarter, Gibson's board of directors approved a quarterly dividend of 41 cents per common share, an increase of two cents per common share or 5 per cent, beginning with the dividend payable in April.

CEO (chief executive officer) retirement

Gibson also formally announced today Mr. Spaulding's intention to retire. The company's board of directors will engage a search firm to evaluate internal and external candidates. To ensure a smooth transition, Mr. Spaulding will continue to serve as president and CEO and remain on the board of directors until a successor has been identified and appointed.

"It has been a privilege to lead Gibson's talented team of employees through such a critical and transformative period," said Mr. Spaulding, president and CEO. "Together, we have built a strong operational and financial foundation, extended our infrastructure platform, created peer-leading value for our shareholders, and successfully positioned the company for future growth. I am most proud of our peer-leading performance in health and safety with almost six years without an employee lost-time injury. With the company operating from a position of strength, now is the right time for me to retire and for the next phase of leadership to commence. I'm confident in the team's ability to build off this momentum to drive further long-term growth and value creation. I look forward to being a long-standing shareholder and working with the board during this time until my successor is named."

"On behalf of the board, I want to thank Steve for his significant contributions and critical role he has played since 2017," said Jim Estey, chair of the board. "Since his appointment, Steve and his team effectively reshaped the business, repositioning it from a diverse mix of business lines to a focused energy infrastructure company and, most recently, successfully completed the largest acquisition in Gibson's history. Steve will be leaving Gibson well positioned for continued growth and we wish him nothing but the best in his well-deserved retirement. Going forward, the board's focus is on ensuring we identify a leader who can build on our success to date, and who has the relevant skills and expertise to continue to drive value for our customers and shareholders."

Management's discussion and analysis and financial statements

The 2023 fourth quarter and year-end management's discussion and analysis and audited consolidated financial statements provide a detailed explanation of Gibson's financial and operating results for the three months and year ended Dec. 31, 2023, as compared with the three months and year ended Dec. 31, 2022. These documents are available at the Gibson website and on SEDAR+.

Earnings conference call and webcast details

A conference call and webcast will be held to discuss the 2023 fourth quarter and year-end financial and operating results at 7 a.m. Mountain Time (9 a.m. Eastern Time) on Wednesday, Feb. 21, 2024.

The conference call dial-in numbers are:

• 416-764-8659 / 1-888-664-6392;
• Conference ID: 69788065.

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 March 6, 2024, using the following dial-in numbers:

• 416-764-8677/1-888-390-0541;
• Replay entry code: 788065 followed by the pound key.

Supplementary information

Gibson has also made available certain supplementary information regarding the 2023 fourth quarter and full year financial and operating results, available at the company's 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., 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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