Mr. Steve Spaulding reports

GIBSON ENERGY ANNOUNCES 2020 CAPITAL BUDGET

Gibson Energy Inc.'s board of directors has approved a 2020 growth capital expenditure budget of approximately $300-million, predominantly comprising sanctioned growth projects. Additionally, the board of directors has approved the allocation of approximately $25-million in replacement capital expenditures.

"Gibson's ability to continue growing our long-term infrastructure businesses, ensuring we meet or exceed our distributable-cash-flow-per-share growth targets despite the egress challenges facing Western Canada, speaks to the strength of our asset base and our transition into a commercial, execution-focused organization," commented Steve Spaulding, president and chief executive officer. "We expect to sanction the construction of additional tankage over the next month and remain confident in our ability to continue sanctioning tankage at our target of two to four tanks per year over the next several years. We are also pursuing numerous other opportunities in both Canada and the U.S. that will result in sanctioned capital increasing through the year. Importantly, we have a strong balance sheet as to be fully funded for all our sanctioned capital, with the ability to expand capital in 2020 and maintain our fully funded position."

Gibson's 2020 growth capital expenditure budget is expected to be allocated as outlined in the attached table.

       (in millions)
               
Total                 $300  
Hardisty              $220 
Edmonton               $20 
U.S. infrastructure    $50 
Other                  $10 

The company now expects 2019 capital expenditures to be approximately $265-million.

Financing position

Gibson remains fully financed for all sanctioned capital, with an estimated 2020 internal financing capacity of approximately $400-million. This 2020 financing position is the result of solid performance of the business in 2018 and 2019, increasing retained cash flows and further strengthening Gibson's balance sheet. It is also based on a conservative outlook for the marketing segment and the company's target leverage on new infrastructure capital of between 50 per cent and 60 per cent.

Updated outlook for marketing segment

As a result of strong performance in its crude oil marketing business, Gibson now expects that the marketing segment is positioned to deliver segment profit of approximately $40-million or greater in the fourth quarter of 2019.

About Gibson Energy Inc.

Gibson Energy is a Canadian-based oil infrastructure company, with its principal businesses consisting of the storage, optimization, processing and gathering of crude oil and refined products.

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