Gibson Energy (GEI) investor relations material

Executive summary

• Achieved key milestones in Q2 2025, including completion of major capital projects, record Gateway terminal volumes, and over 9.5 million hours without a lost time injury.

• Infrastructure segment generates ~90% of segment profit, with ~75% of revenue from take-or-pay contracts and >85% of terminals revenue from investment grade customers.

• Realized $9 million in cost savings in Q2, on track to exceed $25 million annual target, boosting distributable cash flow.

• Strategic assets include the second-largest U.S. crude export terminal and 25+ mmbbl tankage capacity, with significant expansion in Hardisty, Edmonton, and Gateway.

• Six consecutive annual dividend increases, with a 7.7% yield and a 77% payout ratio as of Q1 2025.

Financial highlights

• Q2 adjusted EBITDA was $146M, down $13M year-over-year, mainly due to muted marketing results.

• Infrastructure segment delivered $153M in adjusted EBITDA, stable year-over-year, driven by higher throughput at Edmonton and Gateway.

• Marketing segment adjusted EBITDA fell to $8M, reflecting tight commodity differentials and limited storage.

• Distributable cash flow for Q2 was $81M, a $20M decrease compared to the prior year.

• Net income was $61M, a $3M decrease year-over-year, impacted by lower segment EBITDA and lower G&A costs.

Outlook and guidance

• Positive momentum expected to continue into 2025, with Cactus II connection coming online in Q3 and Duvernay infrastructure in Q4.

• Infrastructure EBITDA per share growth rate projected at over 5% annually for the next five years.

• Full-year marketing outlook remains at $20M–$40M, with Q3 performance expected to be in line with Q2.

• Dividend payout ratio at 83% (trailing twelve months), above the 70–80% target, expected to normalize as project benefits are realized.

• Pathway to bring consolidated leverage and payout ratios back within target ranges by early 2026.