Q3 2025 Gibson Energy Inc Earnings Call

November 4, 2025

We are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone and you will then hear an automated message advising that your hand is raised to withdraw your question. Please press star one again.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone, and you will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. I would now like to turn the meeting over to Beth Pollock, Vice President, Capital Markets and Corporate Development. Ms. Pollock, please go ahead.

I would now like to turn the meeting over to best Pollock, Vice President capital markets and corporate development. Mr. Pollack. Please go ahead.

Thank you Jill good morning, and welcome to our third quarter earnings call. Joining me today from Gibson Energy are Curtis Philip <unk>, President and Chief Executive Officer, and Riley Hicks Senior Vice President and Chief Financial Officer. The rest of our senior management team is also present to help with questions and answers as required.

Beth Pollock: Thank you, Jill. Good morning. Welcome to our Q3 earnings call. Joining me today from Gibson Energy are Curtis Philippon, President and Chief Executive Officer, and Riley Hicks, Senior Vice President and Chief Financial Officer. The rest of our senior management team is also present to help with questions and answers as required. Listeners are reminded that today's call refers to non-GAAP measures, forward-looking information, and is subject to certain assumptions and adjustments, and may not be indicative of actual results. Descriptions and qualifications of such measures and information are set out in our investor presentation available on our website and our continuous disclosure documents available on SEDAR+. With that, I will turn the call over to Curtis.

Listeners are reminded that today's call refers to non-GAAP measures forward looking information is subject to certain assumptions and adjustments and may not be indicative of actual results descriptions and qualifications of such measures and information are set out in our investor presentation available on our website and our continuous disk.

Closure documents available on SEDAR, plus with that I will turn the call over to Curtis.

Thanks, Ralph Good morning, everyone and thank you for joining us today the.

Curtis Philippon: Thanks, Beth. Good morning, everyone, thank you for joining us today. The Q3 was a strong period for our customers and the Gibson team. Our customers delivered a number of throughput records this quarter, including an all-time high across our Canadian and US terminals of 2.2 million barrels per day, up 8% from last quarter, 27% higher than the Q3 of 2024. In Edmonton, throughput reached a record level of over 330,000 barrels per day, 14% higher than last quarter, more than double the volumes from the same period last year. Year-to-date, in Edmonton, we have handled roughly half of the heavy crude volume shipped to TMX.

Third quarter was a strong period for our customers and the Gibson theme, our customers delivered a number of throughput records this quarter, including an all time high across our Canadian and U S terminals of $2 2 million barrels per day up 8% from last quarter and 27% higher than the third quarter of 2024.

In Edmonton throughput reached a record level of over 330000 barrels per day, 14% higher than last quarter and more than double the volumes from the same period last year year to date and Edmonton, we've handled roughly half of the heavy crude volume shipped the Tms.

At Hardesty volumes remained strong at over $1 1 million barrels per day, marking the highest quarterly throughput at the terminal since <unk> came online and tracking toward a potentially new all time record for annual throughput for hardesty by year end.

Curtis Philippon: At Hardisty, volumes remain strong at over 1.1 million barrels per day, marking the highest quarterly throughput at the terminal since TMX came online and tracking toward a potentially new all-time record for annual throughput for Hardisty by year-end. At our Moose Jaw facility, following the successful completion of the turnaround last quarter, we increased Q3 throughput by 7% over the same period last year and delivered a new monthly throughput record for the facility in September. At our Gateway terminal, the completion of dredging supported a new quarterly throughput record of 717,000 barrels per day, including a new monthly record of 775,000 barrels per day of loadings in August alone. We have maintained this momentum into Q4.

At our Moose jaw facility. Following the successful completion of the turnaround last quarter, we increased third quarter throughput by 7% over the same period last year and delivered a new monthly throughput record for the facility in September.

At our Gateway terminal the completion of dredging supported a new quarterly throughput record of 717000 barrels per day, including a new monthly record of 775000 barrels per day of loadings in August alone and we have maintained this momentum into Q4.

The terminal also saw a record number of vessel loadings during the quarter with 85% of those vessels being vlccs and Suezmax.

Curtis Philippon: The terminal also saw a record number of vessel loadings during the quarter, with 85% of those vessels being VLCCs and Suezmaxes. These Gateway volumes represent a 20% share of total US crude exports and 44% of the Ingleside market. Finally, in support of our Gateway customers, we've achieved record monthly volumes at Wink in September, exceeding 55,000 barrels per day. This impressive performance contributed to Q3 throughput of approximately 52,000 barrels per day, up from 43,000 barrels per day in the same period last year. We get asked sometimes, why do we care about the volume throughput records? The vast majority of Gibson's infrastructure revenue is fixed in nature, the records do not always directly impact quarterly revenues. We care about these records because they're a great indicator for us as we look forward.

These gateway volumes represent 20% share of total U S crude exports and 44% of the ingleside market.

And finally in support of our Gateway customers, we've achieved record monthly volumes at Wink and September exceeding 55000 barrels per day. This impressive performance contributed to third quarter throughput of approximately 52000 barrels per day up from 43000 barrels per day in the same period last year.

We get asked sometimes why do we care about the volume throughput records. The vast majority of Gibson's infrastructure revenue was fixed in nature. So the records do not always directly impact quarterly.

Revenues, but we care about these records because they are a great indicator for us as we look forward the throughput numbers highlight the strength and growth of our customer base and reinforce the essential role our assets and teams play in safely and efficiently delivering energy the global markets at the best possible net backs for our customers.

Curtis Philippon: These throughput numbers highlight the strength and growth of our customer base and reinforce the essential role our assets and teams play in safely and efficiently delivering energy to global markets at the best possible netbacks for our customers. On top of these records, I'm pleased with the progress made in Q3 on our five strategic priorities: safety, gateway execution, growth, building high-performance teams, and cost focus. We're very proud of the outstanding safety culture and program at Gibson. The team is achieving best-in-class safety performance. In Q3, Gibson hit record levels for Total Recordable Incident Frequency for our employees and contractors. We have now surpassed 9.8 million hours without a lost-time injury. A great safety culture that is focused on continuous improvement is the foundation for our success as an organization.

On top of these records I am pleased with the progress made in the quarter on our five strategic priorities safety Gateway execution growth building high performance teams and cost focus.

Revenues, but we care about these records because they are a great indicator for us as we look forward. These throughput numbers highlight the strength and growth of our customer base and reinforce the central role our assets and teams play in safely and efficiently delivering energy to global markets at the best possible net backs for our customers.

We're very proud of the outstanding safety culture and program at Gibson. The team is achieving best in class safety performance in the third quarter Gibson hit record levels for total recordable incident frequency for our employees and contractors, we have now surpassed $9 8 million hours without a loss.

On top of these records I'm pleased with the progress made in the quarter on our five strategic priorities safety Gateway execution growth building high performance teams and cost focus.

Time injury.

A great safety culture that is focused on continuous improvement as the foundation for our success as an organization.

This week, we will achieve a key milestone on our strategic priority at gateway.

Curtis Philippon: This week, we will achieve a key milestone on our strategic priority at Gateway on our strategic priority of Gateway execution with the completion of a major capital project. The Cactus II connection at Gateway has finished construction and is being commissioned this week with oil expected to flow as early as tomorrow. The addition of this connection provides our customers with access to an additional 700,000 barrels a day of Permian supply, effectively increasing their supply options by a third and now providing access to 100% of the supply in the region. We remain fully confident in achieving our 15% to 20% Gateway EBITDA growth run rate milestone in Q4. The record-breaking performance of Gateway post-completion of the dredging project, now combined with the supply capabilities provided by the Cactus II connection, will enable sustained elevated throughput volumes.

Our strategic priority of gateway execution with the completion of a major capital project. The Cactus do connection that Gateway is finished construction and is being commissioned this week with oil expected to flow as early as tomorrow.

I'm injury.

A great safety culture that is focused on continuous improvement as the foundation for our success as an organization.

The addition of this connection provides our customers with access to an additional 700000 barrels a day of Permian supply effectively increasing their supply options by a third and now providing access to 100% of the supply in the region.

This week, we will achieve a key milestone on our strategic priority at gateway.

Our strategic priority of gateway execution with the completion of a major capital project. The cactus do connection that Gateway is finished construction and it's being commissioned this week with oil expected to flow as early as tomorrow.

We remain fully confident in achieving our 15% to 20% gateway EBITDA growth run rate milestone in Q4.

And the record breaking performance of Gateway post completion of the dredging project now combined with the supply capabilities provided by the cactus to connection will enable sustained elevated throughput volumes.

On the growth and building a high performance team strategic priorities. We had an important addition to the leadership team in the quarter. We continued to strengthen the Gibson growth muscle and what the appointment of Blake Hartzell as senior Vice President and Chief Senior Vice President commercial development U S based in our Houston Office Blake.

Curtis Philippon: On the growth and building a high-performance team strategic priorities, we had an important addition to the leadership team in the quarter. We continued to strengthen the Gibson growth muscle with the appointment of Blake Hotzel as Senior Vice President, Commercial Development US, based at our Houston office. Blake brings more than 20 years of energy infrastructure experience, including senior commercial and business development roles at Tallgrass and Phillips 66. We expect infrastructure EBITDA per share growth of more than 5% over the next 5 years, Blake's leadership will be instrumental in advancing our US strategy and driving continued growth across the platform. Following the quarter, the construction and commissioning of the infrastructure supporting our long-term strategic partnership with Baytex was successfully completed, an important step that adds stable long-term cash flow under the 10-year take-or-pay and area dedication agreement.

We remain fully confident in achieving our 15 to 20 per cent gateway EBITDA growth run rate milestone in Q4.

Blake brings more than 20 years of energy infrastructure experience, including senior commercial and business development roles at Tallgrass and Phillips 66.

On the growth and building a high performance team strategic priorities. We had an important addition to the leadership team in the quarter. We continued to strengthen the Gibson growth muscle of what you did the appointment of Blake Hartzell as senior Vice President and Chief Senior Vice President of commercial development U S based in our Houston Office Blake.

As we expect infrastructure EBIT per share growth of more than 5% over the next five years Blake's leadership will be instrumental in advancing our U S strategy and driving continued growth across the platform.

Following the quarter, the construction and commissioning of the infrastructure.

Blake brings more than 20 years of energy infrastructure experience, including senior commercial and business development roles at Tallgrass and Phillips 66.

Supporting our long term strategic partnership with <unk> was successfully completed an important step that adds stable long term cash flow under the 10 year take or pay and area of dedication agreement. The production is now flowing to our Edmonton terminal.

As we expect infrastructure EBITDA per share growth of more than 5% over the next five years Blake's leadership will be instrumental in advancing our U S strategy and driving continued growth across the platform.

Curtis Philippon: The production is now flowing to our Edmonton terminal. On our cost focus strategic priority, we continue to advance our We Are All Owners cost focus initiative. We're on track to exceed CAD 25 million in run rate cost savings by the end of 2025, driven by strong engagement from teams across every area of the business. During the quarter, we captured one-time and ongoing cost savings, contributing CAD 9 million to distributable cash flow. Financial highlights, the business delivered a solid quarter that was in line with our expectations. Infrastructure continued to perform exceptionally well this quarter, with near record EBITDA of CAD 154 million. Marketing contributed CAD 7 million of EBITDA as expected. Distributable cash flow was CAD 86 million during the quarter. In summary, Q3 once again demonstrated the strength and resilience of Gibson's business model.

On our cost focused strategic priorities, we continue to advance our we're all owners cost focused initiative, we're on track to exceed $25 million and run rate cost savings by the end of 2025% driven by strong engagement from teams across every area of the business during the quarter, we captured one time and ongoing.

Following the quarter, the construction and commissioning of the infrastructure.

Supporting our long term strategic partnership with latex was successfully completed an important step that are stable long term cash flow under the 10 year take or pay and area of dedication agreement. The production is now flowing through our Edmonton terminal.

Cost savings contributing $9 million for distributable cash flow.

On financial highlights the business delivered a solid quarter that was in line with our expectations infrastructure continues to perform exceptionally well this quarter with near record EBITDA of $154 million and marketing contributed $7 million of EBITDA as expected distributable cash flow was $86 million during.

On our cost focused strategic priorities, we continue to advance our we're all owners cost focused initiative, we're on track to exceed $25 million and run rate cost savings by the end of 2025, driven by strong engagement from teams across every area of the business during the quarter, we captured one time and ongoing.

The quarter.

In summary, the third quarter once again demonstrated the strength and resilience of Gibson's business model, we delivered consistent operational and financial performance advanced key growth projects in both sides of the border and maintained our unwavering commitment to safety.

Cost savings contributing $9 million for distributable cash flow.

On financial highlights the business delivered a solid quarter that was in line with our expectations infrastructure continue to perform exceptionally well this quarter with near record EBITDA of $154 million and marketing contributed $7 million of EBITDA as expected distributable cash flow was $86 million during.

Curtis Philippon: We delivered consistent operational and financial performance, advanced key growth projects on both sides of the border, and maintained our unwavering commitment to safety. As we look ahead, with Gateway running at record levels, the construction and commissioning of Cactus II complete, and our Duvernay project with Baytex on schedule, we're well-positioned to continue generating stable, growing cash flows. At the same time, our high-performing team continued focus on cost discipline and an ownership-driven culture ensures that we remain aligned with our shareholders and well-prepared to deliver on our long-term growth and return objectives. With this, I'll pass it over to Riley, who will discuss our financial performance in more detail.

As we look ahead with gateway running at record levels, the construction and commissioning of cactus to complete in our Duvernay project with vertex on schedule, we are well positioned to continue generating stable growing cash flows at.

The quarter.

At the same time, our high performing team continued focus on cost discipline and an ownership driven culture ensures that we remain aligned with our shareholders and well prepared to deliver on our long term growth and return objectives.

With this I will pass it over to Ryan <unk>, who will discuss our financial performance in more detail.

As we look ahead with gateway running at record levels, the construction and commissioning of cactus to complete in our Duvernay project with pretax on schedule, we are well positioned to continue generating stable growing cash flows at.

Thank you Curtis as discussed the third quarter was another strong quarter for our core business.

Riley Hicks: Thank you, Curtis. As discussed, Q3 was another strong quarter for our core business. Our infrastructure segment continues to deliver solid results, with Q3 adjusted EBITDA of CAD 154 million, an increase of CAD 4 million over the same period last year, and in line with the record that we set earlier in 2025. Infrastructure EBITDA also accounted for over 95% of adjusted EBITDA before G&A during the period, emphasizing the high quality, stable nature of our cash flows. This performance was driven by record throughput across our assets. In Canada, quarterly volumes rose by 26% year-over-year, while in the US, throughput rose by 30% over the same period. These positive results reflect the critical nature of our assets and their value to our customers.

Our infrastructure segment continues to deliver solid results with third quarter adjusted EBITDA of $154 million, an increase of $4 million over the same period last year and in line with the record that we set earlier in 2025.

Infrastructure EBITDA also accounted for over 95% of adjusted EBITDA before G&A during the period.

With this I'll pass it over to Riley, who will discuss our financial performance in more detail.

Thank you Curtis as discussed the third quarter was another strong quarter for our core business.

Emphasizing the high quality stable nature of our cash flows.

This performance was driven by record throughput across our assets in Canada quarterly volumes rose by 26% year over year, while in the U S throughput rose by 30% over the same period.

These positive results reflect the critical nature of our assets and their value to our customers.

Infrastructure EBITDA also accounted for over 95% of adjusted EBITDA before G&A during the period.

Our marketing segment delivered EBITDA of $7 million for the quarter consistent with both our prior guidance in the previous quarter results.

Riley Hicks: Our marketing segment delivered EBITDA of CAD 7 million for the quarter, consistent with both our prior guidance and the previous quarter results. For the Q4 of 2025, we expect the macro environment to remain relatively consistent, and as such, we anticipate marketing EBITDA for the year to be around CAD 20 million within our previously communicated range. As we look towards 2026, we anticipate a stable commodity price environment with marketing performance expected to remain consistent until egress tightens. As such, our focus will continue to be on supporting our long-standing infrastructure customers as they execute their development plans and grow their production around our critical asset base, positioning Gibson for continued stability, growth, and long-term value creation.

Emphasizing the high quality stable nature of our cash flows.

For the fourth quarter of 2025, we expect the macro environment to remain relatively consistent and as such we anticipate marketing EBITDA for the year to be around $20 million within our previously communicated range.

This performance was driven by record throughput across our assets in Canada quarterly volumes rose by 26% year over year, well in the U S throughput rose by 30% over the same period.

As we look towards 2026, we anticipate a stable commodity price environment with marketing performance expected to remain consistent until egress tightens as.

These positive results reflect the critical nature of our assets and their value to our customers.

Our marketing segment delivered EBITDA of $7 million for the quarter consistent with both our prior guidance in the previous quarter results.

As such our focus will continue to be on supporting our long standing infrastructural customers as they execute their development plans and grow their production around our critical asset base positioning Gibson for continued stability growth and long term value creation.

As we look towards 2026, we anticipate a stable commodity price environment with marketing performance expected to remain consistent until egress tightens as.

On a consolidated basis third quarter, adjusted EBITDA of $147 million was $4 million lower than the same period in 2024.

Riley Hicks: On a consolidated basis, Q3 adjusted EBITDA of CAD 147 million was CAD 4 million lower than the same period in 2024, primarily driven by lower contributions from the marketing segment and offset by strong performance through our infrastructure segment. Turning to distributable cash flow, we generated CAD 86 million in Q3, a CAD 3 million decrease from Q3 of 2024. During the quarter, we captured one-time and ongoing cost savings, contributing an impressive CAD 9 million or CAD 0.05 per share to distributable cash flow. Approximately 80% of these savings came from four main drivers: lower interest expenses, reduced property taxes, decreased operating costs, and the one that I am most proud of, our grassroots cost savings efforts.

Primarily driven by lower contributions from the marketing segment and offset by strong performance to our infrastructure segment.

As such our focus will continue to be on supporting our long standing infrastructure customers as they execute their development plans and grow their production around our critical asset base positioning Gibson for continued stability growth and long term value creation.

Turning to distributable cash flow, we generated $86 million in the third quarter, a $3 million decrease from the third quarter of 2024.

During the quarter recaptured one time and ongoing cost savings contributing an impressive $9 million or <unk> <unk> per share to distributable cash flow.

On a consolidated basis third quarter, adjusted EBITDA of $147 million was $4 million lower than the same period in 2024, primarily driven by lower contributions from the marketing segment and offset by strong performance to our infrastructure segment.

Approximately 80% of the savings came from four main drivers lower interest expenses reduced property taxes decreased operating costs and the one that I'm. Most proud of our grassroot cost savings efforts. This area made up a significant portion of our total savings through many small initiatives implemented across the company.

Turning to distributable cash flow, we generated $86 million in the third quarter, a $3 million a decrease from the third quarter of 2024.

Riley Hicks: This area made up a significant portion of our total savings through many small initiatives implemented across the company and supported by the participation of 80% of our employees. This is a great example of our culture of ownership and engagement and highlights how individual contributions have meaningfully strengthened our financial performance. quarter-over-quarter, our debt to adjusted EBITDA ratio improved from 4 times to 3.9 times, though it remains above our long-term target range of 3 to 3.5 times, while our consolidated payout ratio for the quarter was 85%. On an infrastructure-only basis, our debt to adjusted EBITDA ratio was 4.1 times and our payout ratio was 80%. As expected, leverage and payout are temporarily above our long-term targets. However, we have clear visibility to returning to our target range in the first half of 2026.

During the quarter recaptured one time and ongoing cost savings contributing an impressive $9 million or <unk> per share to distributable cash flow.

And supported by the participation of 80% of our employees.

This is a great example of our culture of ownership and engagement and highlights how individual contributions have meaningfully strengthened our financial performance.

Quarter over quarter, our debt to adjusted EBITDA ratio improved from four times to three nine times.

<unk> above our long term target range of three to three five times, while our consolidated payout ratio for the quarter was 85%.

Ported by their participation of 80% of our employees.

On an infrastructure only basis, our debt to adjusted EBITDA ratio was four one times and our payout ratio was 80%.

This is a great example of our culture of ownership and engagement and highlights our individual contributions have meaningfully strengthened our financial performance.

As expected leveraging our temporarily above our long term targets. However, we have a clear visibility to returning to our target range in the first half of 2026.

Quarter over quarter, our debt to adjusted EBITDA ratio improved from four times to three nine times.

We remain fully committed to our financial governing principles, our balance sheet remains a key strength of our business supporting both disciplined growth and a sustainable growing dividend.

It remains above our long term target range of three to three five times, while our consolidated payout ratio for the quarter was 85%.

Riley Hicks: We remain fully committed to our financial governing principles. Our balance sheet remains a key strength of our business, supporting both disciplined growth and a sustainable growing dividend. Supporting our conservative financial profile and our continued commitment to our investment-grade rating, both DBRS and S&P have reaffirmed Gibson's BBB (low) and BBB- ratings respectively, each with a stable outlook, underscoring their confidence in our long-term financial plan.

On an infrastructure only basis, our debt to adjusted EBITDA ratio was four one times and our payout ratio was 80%.

Supporting our conservative financial profile, and our continued commitment to our investment grade rating, both <unk> and S&P have reaffirmed gibson's triple below and triple B minus ratings, respectively, each with a stable outlook underscoring their confidence in our long term financial plan.

As expected leverage in payroll are temporarily above our long term targets. However, we have clear visibility to returning to our target range in the first half of 2026.

We remain fully committed to our financial governing principles, our balance sheet remains a key strength of our business supporting both disciplined growth and a sustainable growing dividend.

With this I will now pass the call back to Curtis for a few closing remarks.

Aaron MacNeil: With this, I will now pass the call back to Curtis for a few closing remarks.

Thank you Riley to close the third quarter further demonstrated gibson's ability to deliver strong results through disciplined execution and our clear strategic focus.

Curtis Philippon: Thank you, Riley. To close, the Q3 further demonstrated Gibson's ability to deliver strong results through disciplined execution and a clear strategic focus. We continue to advance our priorities, maintaining top-tier safety performance, executing at Gateway, delivering growth, building high-performance teams, and driving cost efficiency across the business. We'll be holding our Investor Day in Toronto on 2 December 2024 and look forward to seeing you there, where we'll walk through our long-term strategic plan. I'd like to take a moment to thank all of our employees for their continued commitment and exceptional performance. Their dedication to safety, operational excellence, and our ownership culture continues to drive Gibson's success. Thank you again for joining us today and for your continued support in Gibson.

Supporting our conservative financial profile, and our continued commitment to our investment grade rating, both DVR S and S&P have reaffirmed gibson's triple below and triple B minus ratings, respectively, each with a stable outlook underscoring their confidence in our long term financial plan.

We continue to advance our priorities maintaining top tier safety performance executing at gateway delivering growth building high performance teams and driving cost efficiency across the business.

We will be holding our investor day in Toronto on December 2nd and look forward to seeing you there, where we will walk through our long term strategic plan I'd like to take a moment to thank all of our employees for their continued commitment and exceptional performance their dedication to safety operational excellence and our ownership culture continues to drive Gibson success.

With this I will now pass the call back to Curtis for a few closing remarks.

Thank you Riley to close the third quarter further demonstrated gibson's ability to deliver strong results through disciplined execution and our clear strategic focus we continue to advance our priorities maintaining top tier safety performance executing a gateway delivering growth building high performance teams and driving cost efficiency across.

Thank you again for joining us today and for your continued support and Gibson.

Yeah.

The business.

Thank you at this time, we will conduct a question and answer session.

We will be holding our investor day in Toronto on December 2nd and look forward to seeing you there, where we will walk through our long term strategic plan.

Operator: Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the roster. Our first call comes from the line of Jeremy Tonet with J.P. Morgan Securities. Go ahead. Your line is open.

A reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the roster.

Like to take a moment to thank all of our employees for their continued commitment and exceptional performance their dedication to safety operational excellence and our ownership culture continues to drive Gibson success.

You again for joining us today and for your continued support and Gibson.

Yes.

Our first call comes from the line of Jeremy Tonet with J P. Morgan Securities Go ahead. Your line is open.

Thank you at this time, we will conduct a question and answer session.

Hi, good morning.

As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the roster.

Good morning.

Jeremy Tonet: Hi, good morning.

Just wanted to pick up with one of your last points there with regards to the upcoming Investor day in December just wondering if you might be able to provide a little bit more color I guess on what type of.

Curtis Philippon: Good morning.

Jeremy Tonet: Just want to pick up with one of your last points there with regards to the upcoming Investor Day in December. Just wondering if you might be able to provide a little bit more color, I guess, on what type of, you know, topics we could be discussing there. You know, specifically, I guess, you know, growth initiatives as you see at this point. Any, you know, foreshadowing color you could provide at this juncture?

Topics, we could be discussing there specifically I guess.

Growth initiatives as you see at this point any.

Our first call comes from the line of Jeremy Tonet with J P. Morgan Securities Go ahead. Your line is open.

Foreshadowing color you can provide at this juncture.

Hi, good morning.

We want to make sure you come to the Investor day. So we don't want to get too far ahead of ourselves here, but what I would say is the.

Good morning.

Curtis Philippon: Well, we wanna make sure you come to the Investor Day, so we don't wanna get too far ahead of ourselves here. What I would say is, I wouldn't come to it expecting that you're gonna hear big individual project FIDs. Like, we're not, we're not intending to announce a significant or a CAD 100 million-plus project FID in the meeting or even announce any sort of significant change or improvement in marketing outlook. You know, how we look at the world today is how we think it looks like for the front half of the year. We think we see from a capital project perspective, a lot of very good projects, but a lot of projects that are more in the sub CAD 100 million range that we'll be working through.

I wouldn't come to it expecting that you're going to hear big individual project ideas like but we're not we're not intending to announce a significance of $100 million plus project.

Topics, we could be discussing there specifically I guess.

And the meeting or even announce any sort of significant change or improvement in marketing outlook. How we look at the world. Today is how we think it looks like for the front half of the year and.

Growth initiatives as you see at this point any.

Foreshadow any color you can provide at this juncture.

We want to make sure you come to the Investor day. So we don't want to get too far ahead of ourselves here, but what I would say is the no I wouldnt come to it expecting that you're going to hear big individual project ideas like but we're not we're not intending to announce a significance of a $100 million plus project.

And we think we see from a capital project perspective, a lot of very good projects, but a lot of projects that are more in the sub $100 million range. So we'll be working through so I wouldn't come expecting a specific project.

Curtis Philippon: I wouldn't come expecting a specific project FID announcement. What you can expect to hear is, we're gonna be introducing the team. We've got a number of new faces around the table and wanna give people a chance to meet them in person, to meet our senior team. You'll hear a little bit more about what we've been working on over the last year, and you'll see us lay out the specifics of our five-year plan. I think for me, that's the important step, that we lay out some of those specifics and give a bit of a step-by-step of how we're thinking about growth and something that our investors can hold us accountable to.

Announcement, we can expect to hear is we're going to be introduced in the teams. We've got a number of new faces around the table and want to give people a chance to meet them in person.

And the meeting or even announce any sort of significant change or improvement in marketing outlook. How we look at the world. Today is how we think it looks like for the front half of the year and.

Meet our senior team, you'll hear a little bit more about what we've been working on over the last year and Youll see us lay out the specifics of our five year plan and I think for me Thats. The important step that we lay out some of those specifics and give a bit of a.

And we think we see from a capital project perspective, a lot of very good projects, but a lot of projects that are more in the sub $100 million range, though it will be working through so it wouldn't come expecting a specific project.

Step by step of how we're thinking about growth and something that our investors can hold us accountable to.

Announcements, where you can expect to hear is we're going to be introduced in the team. So we've got a number of new faces around the table and wanted to give people a chance to meet them in person.

And then lastly, we're going to spend a fair bit of time talking about what I believe is a pretty compelling return proposition and Gibson.

Curtis Philippon: Lastly, you know, we're gonna spend a fair bit of time talking about what I believe is a pretty compelling return proposition in Gibson that is backed by an outstanding dividend.

Meet our senior team, you'll hear a little bit more about what we've been working on over the last year and Youll see us lay out the specifics of our five year plan and I think for me. That's the important step that we lay out some of those specifics and give a bit of a step by step of how we're thinking about growth and something that our investors can hold us accountable to.

Is backed by an outstanding dividend.

That's helpful. Thank you for that and maybe picking up on one of your comments there expectation for kind of a static environment through the first half of next year.

Jeremy Tonet: That's helpful. Thank you for that. Maybe picking up on one of your comments there, expectation for kind of a static environment through the first half of the next year. Around the middle of next year, do you see the egress, you know, tightening at that point and supporting better marketing? Any other thoughts you could share, I guess, on how marketing progresses over time?

Around the middle of next year do you see the egress.

Tightening at that point in supporting better marketing or any other thoughts you could share I guess on how marketing progresses over time.

And then lastly, we're going to spend a fair bit of time talking about what I believe is a pretty compelling return proposition and Gibson.

Yeah.

I think we'll wait and see I think at this point when you look at what you see for production and egress I don't know that Youll see significant tightening of egress in 2026, I think thats more in 2027% to start seeing that come in in a bigger way.

<unk> is backed by an outstanding dividend.

Curtis Philippon: I think what we'll wait and see. I think at this point, when you look at what you see for production and egress, I don't know that you see significant tightening of egress in 2026. I think that's more in 2027 that you start seeing that come in in a bigger way. I think you do start seeing it on the horizon, and you start seeing people acting in preparation of those egress challenges coming. I think that'll make for some interesting opportunities for Gibson. We see some slight improvement in the marketing outlook in the back half of the year, but it, you know, it really is fairly consistent for what we see in 2025.

That's helpful. Thank you for that and maybe picking up on one of your comments there expectation for kind of a static environment to the first half of next year.

Around the middle of next year do you see the egress.

I think you do start seeing it on the Horizon, then you start seeing people acting in preparation of those egress challenges coming in so I think that'll make for.

Tightening at that point in supporting better marketing or any other thoughts you could share I guess on how marketing progresses over time.

Some some interesting opportunities for Gibson, so we see some slight improvement in the marketing outlook in the back half of the year, but.

Really is.

Fairly consistent for what we see in 2025.

What I would comment on that is the positive on that is it is a tremendous environment right now for our infrastructure customers that even in low commodity markets. Our infrastructure customers are exceptionally healthy and our growing production and that's really the core of our business and so we're seeing.

Curtis Philippon: What I would comment on that is, you know, the positive on that is it is a tremendous environment right now for our infrastructure customers. You know, even in low commodity markets, our infrastructure customers are exceptionally healthy and are growing production, and that's really the core of our business. We're seeing, you know, very good throughput numbers. You see good project announcements from our customers, healthy balance sheets, all while there's sort of this sort of challenging commodity market backdrop. As much as we do believe in the long-term guidance of marketing and returning back to our range, it's actually phenomenal for our infrastructure business that we have this very efficient market egress happening right now.

I think you do start seeing it on the Horizon and then you start seeing people acting in preparation of those egress challenges coming in so I think that'll make for some.

Some some interesting opportunities for Gibson, so we see some slight improvement in the marketing outlook in the back half of the year, but it.

Very good through the throughput number as you see good project announcements from our customers healthy balance sheets, all while there's sort of this sort of challenging commodity market backdrop and so.

It really is fair.

Fairly consistent for what we see in 2025 and.

What I would comment on that is the positive on that is it is a tremendous environment right now for our infrastructure customers that you know even in low commodity markets. Our infrastructure customers are exceptionally healthy and our growing production and that's really the core of our business and so we're seeing a.

As much as we do believe in the long term guidance of marketing and returning back to a range, it's actually phenomenal for our infrastructure business that we have this very efficient market egress happening right now.

Got it that's helpful I'll leave it there thank you.

Very good news to the throughput number as you see good project announcements from our customers healthy balance sheets, all while there is sort of this sort of challenging commodity market backdrop and so.

Jeremy Tonet: Got it. That's helpful. I'll leave it there. Thank you.

One moment for our next question.

Operator: One moment for our next question. The next question comes from the line of Aaron MacNeil with TD Cowen. Go ahead, your line is open.

The next question comes from the line of Aaron Macneil with TD Cowen Go ahead. Your line is open.

Hey, good morning, all thanks for taking my questions Curtis as you mentioned in the prepared remarks, you've seen record throughput across the platform I'm, hoping you can sort of take this a step further are there any notable contract expiries in the near term, where we could see this performance translate to higher contracted pricing.

Aaron MacNeil: Hey, morning, all. Thanks for taking my questions. Curtis, as you mentioned in the prepared remarks, you've seen record throughput across the platform. I'm hoping you can sort of take this a step further. Are there any notable contract expiries in the near term where we could see this performance translate to higher contracted pricing, to reflect that, you know, stronger fundamental backdrop? If so, how material could that be?

Got it that's helpful I'll leave it there thank you.

One moment for our next question.

To reflect that stronger fundamental backdrop, and if so how material could that be.

The next question comes from the line of Aaron Macneil with TD Cowen Go ahead. Your line is open.

Hey, good morning, all thanks for taking my questions Curtis as you mentioned in the prepared remarks, you've seen record throughput across the platform I am hoping you can sort of take this a step further are there any notable contract expiries in the near term, where we could see this performance translate to higher contracted pricing.

Abhorrent Eric.

It really we always have contract renewals that are happening so theres not theres no sort of.

Curtis Philippon: Good morning, Aaron. Really, we always have contract renewals that are happening. There's no sort of uniqueness to 2026 or 2025 for a contract renewal period. We always are working through those. I would say as you look into next year, though, as you start seeing tightening egress, we like that market condition for renewals as we get into 2026 better than what it had been in 2024 and 2025.

Uniqueness to 2026 or 2025 for a contract renewal period, and we always are working through those I would say as you look into next year, though as you start seeing tightening egress.

To reflect that stronger fundamental backdrop, and if so how material could that be.

We like that market condition for our renewals as we get into 'twenty six.

Better than what it had been in 'twenty, four and 'twenty five.

EVAR and Eric.

So really we always have contract renewals that are happening so theres not theres no sort of.

Okay.

I also wanted to dive a bit deeper into the impact of nonrecurring cost savings I know you don't split it out but can you speak to the specific items. This quarter that were nonrecurring what the impact is and what the visibility to nonrecurring savings could be on a go forward basis.

Aaron MacNeil: Okay. I also wanted to dive a bit deeper into the impact of non-recurring cost savings. I know you don't split it out, but can you speak to the specific items this quarter that were non-recurring, what the impact is, and, you know, what the visibility to non-recurring savings could be on a go-forward basis?

Uniqueness to 2026 or 2025 for a contract renewal period, and we always are working through those I would say as you look into next year, though as you start seeing tightening egress, we liked that market condition for our renewals as we get into 'twenty six.

Yes, we talk about sort of half and half I don't know if <unk> given this such as scattered over a number of different buckets I don't if it's worth getting into the specifics of what are the nonrecurring ones, but it's about half and half.

Than what it had been in 'twenty, four and 'twenty five.

Curtis Philippon: Yeah. We talk about sort of half and half. I don't know if we're given it such as, you know, it's so scattered over a number of different buckets. I don't know if it's worth getting into the specifics of what are the non-recurring ones, but it's about half and half. We'll get into that a bit more at our IR day. You know, I would call out though that the cost savings program has just been tremendous. The cultural impact of people leaning in and finding cost savings across the business has been quite impactful and culturally getting people focused on, hey, We Are All Owners here, let's drive cost efficiencies across the business, has been powerful. Probably talked about over 80% of our employees participating and having a direct impact on it.

Okay.

We will get into that a bit more at IR day, I would call. It the cost savings program has just been tremendous cultural impact of people leaning in and finding cost savings across the business has been quite impactful and culturally getting people focused on it. We're all owners here, let's drive cost efficiencies across the business has been powerful Harley talked about over 80% of them.

Yeah, we talk about sort of half and half I don't know if <unk> given its such as.

Scattered over a number of different buckets I don't know if it's worth getting into the specifics of <unk>.

Our employees participating in having a direct impact on it.

What are the nonrecurring ones, but it's about half and half will get into that a bit more at IR day I would call. It the cost savings program has just been tremendous the cultural impact of people leaning in and finding cost savings across the business has been quite impactful and culturally getting people focused on it we're all owners here, let's drive.

What we had one example in the quarter that I think is a great story, we've got a senior off number of our ops team. That's a long term Gibson employee Kevin below in Hardesty, who had a capital project in hardesty come to come to his attention that we had done an excellent job designing a growth project and hardest they were.

Curtis Philippon: We had one example in the quarter that I think is a great story. We've got a senior ops member of our ops team that's a long-term Gibson employee, Kevin Buelow out in Hardisty, who had a capital project in Hardisty come to his attention that we had done an excellent job designing a growth project in Hardisty. It was about a CAD 800,000 project. Kevin with many, many years of experience and knowledge of that asset, looked at that and felt empowered by the cost program to say, I think there's a better way. Drove a great conversation with our engineering team and directly on that project.

Cost efficiencies across the business has been powerful Harley talked about over 80% of our employees participating in having a direct impact on it.

Moving some connectivity and the hardest the facility it was about an $800000 project.

And Kevin with many many years of experience and knowledge of that asset looked at that and felt empowered by the cost program to say I think there's a better way and drove a great conversation with our engineering team and directly on that project and we ended up saving I believe it's almost $400000 on that project and cut time out of the scope.

What we had one example in the quarter that I think is a great story, we've got a senior off number of our ops team. That's a long term Gibson employee Kevin below out in Hardesty, who had a capital project in hardesty come to come to his attention that we had done an excellent job designing a growth project and hardest they were <unk>.

Curtis Philippon: We ended up saving, I believe it's almost CAD 400,000 on that project and cut time out of the scope thanks to that. You know, I think these, like, these stories. So that'd be a great example of a non-recurring cost impact in the quarter that will be realized. It's some of that was realized in the quarter. We've got stories like that happening all over the business right now. It's just, you know, I think the cost program's just elevated some of these conversations and empowered people to lean in and suggest different ways of doing things. Shout out to Kevin Buelow. Kevin's also one of the newest members of the Hardisty Town Council. Shout out to Kevin, he's a great long-term employee at Gibson.

Thanks for that.

Moving some connectivity and the hardest the facility it was about an $800000 project.

These like this story, so that'd be a great example of a nonrecurring.

Cost impact in the quarter that will be realized.

So shut off the Kevin Bulow, Kevin is also one of the newest members of the hardest the town Council. So several of the Gavin is a great long term employee at Gibson.

Thanks to that.

This story, so that'd be a great example of a nonrecurring.

Cost impact in the quarter that will be realized.

Thanks, Curtis I'll turn it back.

Sure.

Aaron MacNeil: Thanks, Curtis. I'll turn it back.

One moment for our next question.

That was realized in the quarter, but we've got stories like that happening all over the business right now I think the cost programs just elevated some of these conversations and empowered people to lean in and suggest different ways of doing things. So shut off that Kevin Vitolo. Kevin is also one of the newest members of the hardest the town Council. So I'll start with the government.

Operator: One moment for our next question. The next question comes from the line of Sam Burwell with Jefferies. Go ahead, your line is open.

The next question comes from the line of Sam Burwell with Jefferies. Go ahead. Your line is open.

Hey, good morning, guys.

First off on exports, a little bit of volatility month to month through <unk>, even post dredging. So I'm wondering if you could.

Sam Burwell: Hey, good morning, guys. First off on exports, a little bit of volatility month-to-month through Q3, even post dredging. Wondering if you could just sort of illuminate whether that was more idiosyncratic to Gibson or reflective of broader macro conditions. Then any insight you could give us on just like the EBITDA sensitivity to this volumetric volatility?

Great long term employee Gibson.

Just sort of illuminate whether that was more idiosyncratic to gibson or reflective of broader macro conditions.

Thanks, Curtis I'll turn it back.

One moment for our next question.

And then any any insight you could give us on just like the EBITDA sensitivity to this volumetric volatility.

The next question comes from the line of Sam Burwell with Jefferies. Go ahead. Your line is open.

Okay.

Hey, good morning, guys.

So from a gateway gateway advanced Super interesting, obviously post dredging, we are seeing an uptick as we take that facility some sort of <unk>.

First off on exports, a little bit of volatility month to month through <unk>, even post dredging. So I'm wondering if you could.

Curtis Philippon: Yeah. Morning, Sam. From a Gateway volume, super interesting. Obviously, post dredging, we've seen an uptick as we take that facility some sort of 47 to 52 feet of depth. You're able to suddenly fill a VLCC, you know, rather than 1.25 million barrels to 1.5 million barrels. We saw immediate throughput increase. Not every vessel going through is a VLCC, so you don't see it all the time. Not every customer has all that inventory available every time, and so that you don't always get it. We saw from time of dredging, so pre-dredging, we would've been in the 500,000 range per day on average on loading.

<unk> 47 to 52 feet of depth youre able to suddenly fill a VLCC rather than one 5 million barrels to one 5 million barrels and so we saw immediate throughput increase not every vessel going through the Vlccs. So you don't see it all the time and not every customer has all of that inventory available every time and so that you don't always get it.

Just sort of illuminate whether that was more idiosyncratic to gibson or reflective of broader macro conditions.

And then any any insight you could give us on just like the EBITDA sensitivity to this volumetric volatility.

Yeah Mark.

So from a gateway gateway bonds Super interesting, obviously post dredging, we are seeing an uptick as we take that facility some sort of <unk>.

But from from time of dredging, so pre dredging, we would've been in the 500000 range per day on average on loading post dredging over the last.

<unk> 47 to 52 feet of depth youre able to suddenly fill a VLCC rather than one 5 million barrels to one 5 million barrels, but until we saw immediate throughput increase not every vessel going through the Vlccs you don't see it all the time and not every customer has all of that inventory available every time and so that you don't always get it.

Five ish months that it's been we've we've averaged about 725000 barrels a day. There is some month to month flexibility and that some of that is geopolitical theres a lot going on in the world right now, but some of that is really just our customers programs and when they are when they are timing. So we've seen a fair.

Curtis Philippon: Post dredging over the last, five-ish months that it's been, we have, we've averaged about 725,000 barrels a day. There is some month-to-month flexibility in that. Some of that is geopolitical. There's a lot going on in the world right now. Some of that is really just our customers' programs and when they're, when they're timing. We've seen a fairly consistent volume.

But we saw from time of dredging, so pre dredging, we would've been in the 500000 range per day on average on loading post dredging over the last.

Early consistent volume, it's actually quite remarkable that we've been able to do the 725 on average without the cactus connection that we.

Curtis Philippon: It's actually quite remarkable that we've been able to do the 725 on average without the Cactus connection that when we initially planned this out, we really didn't think we would get that big of an uptick without until we got Cactus completed, 'cause it's such a challenge for the facility to keep up and our customers to keep up with that level of activity with only two-thirds of the supply available to them. We've been doing a lot of juggling. Our customers have been extremely supportive on working with us to find ways to get volume onto other pipes to make sure that they can take advantage of using Gateway. It has been a challenging situation to maintain sort of the high. We did that 775 in August.

Five ish months that it's been where we've averaged about 725000 barrels a day. There is some month to month flexibility and that some of that is geopolitical theres a lot going on in the world right now, but some of that is really just our customers programs and when they are when they're timing and so we've seen a fair.

When we initially planned this out we really didn't think we would get that big of an uptick without until we've got cactus completed because it's such a challenge for the facility to keep up and our customers to keep up with that level of activity with only two thirds of the supply available to them and so we've been doing a lot of juggling our customers have been extremely supportive.

Charlie consistent volume, it's actually quite remarkable that we've been able to do the 725 on average without the cactus connection that we.

Working with us to find ways to get volume onto other pipes to make sure that they can take advantage of using gateway, but it has been a challenging situation to maintain sort of the high we did that 775 in August has been challenging to maintain that quite that level without cactus.

Curtis Philippon: It's been challenging to maintain that, quite that level without Cactus. With Cactus now completed, I expect that you're gonna see customers get used to using that, and you'll see a volume uptick as we get into the early part of next year. You know, there is, you know, at the end of the day, we get a certain amount of compensation for volume throughput, but the vast majority is on just booked windows. There is some sensitivity to volume throughput, but there's, you know, at the end of the day, it's MVC minimums that drive the bulk of the revenue at Gateway. There is sometimes month-to-month variations where customers choose, for whatever reason, not to take advantage of their MVC.

With <unk> now completed.

I expect that youre going to see customers get used to using that and youll see a volume uptick as we get into the early part of next year.

On working with us to find ways to get volume onto other pipes to make sure that they can take advantage of using gateway, but it has been a challenging situation to maintain sort of the high we did that 775 in August has been challenging to maintain that quite that level without cactus.

But there is at the end of the day, we get a certain amount of.

Compensation for volume throughput, but the vast majority is on just booked windows.

And so there is some sensitivity to volume throughput, but there is.

At the end of its MVC.

With cactus now completed.

Minimums that drive the bulk of the revenue at Gateway and so there is sometimes a month to month variations our customers choose for whatever reason not to take advantage of their MVC.

I expect that youre going to see customers get used to using that and youll see a volume uptick as we get into the early part of next year.

But there is at the end of the day, we get a certain amount of of.

Okay perfect understood on marketing I. Appreciate the comments that you guys gave earlier than that and it makes sense that the outlook is challenged given.

Sam Burwell: Okay, perfect. Understood. On marketing, appreciate the comments that you guys gave earlier, and that makes sense that the outlook is challenged given where the diffs are. Just curious if there are any other headwinds or tailwinds that you see outside of kind of the headline diff, whether it's refining margins or, I mean, if we do see crude go into contango, just like anything else out there that could potentially swing marketing one way or the other over the, call it, medium term.

Compensation for volume throughput, but the vast majority is on just booked windows.

Where where the dips are but just curious if there any other.

And so there is some sensitivity to volume throughput, but there is.

At the end of its MVC minimums that drive the bulk of the revenue at Gateway and so there is sometimes a month to month variations our customers choose for whatever reason not to take advantage of the MVC.

Headwinds or tailwind that you see outside of kind of the headline diff, whether it's Rick.

Refining margins or I mean, if we do see crude go into contango, just like anything else out there that could potentially swing a marketing one way or the other over the call it medium term.

Okay perfect understood on marketing I. Appreciate the comments you guys gave earlier than that and that makes sense that the outlook is challenged given.

Yes.

A few things but.

And that there is still early on that.

Curtis Philippon: Yeah, I think there's a few things, I caution that they're still early on that. They do give us optimism that we expect to see a bit of an uptick as we get into next year. You know, one thing we flirted with Contango just recently, obviously that's a big deal. We've been very backwardation for a long time. Just recently, we flirted with Contango. If that was to come back, obviously there's a very positive impact for our bottom line. On the refinery side of things, one of it is actually just demand for products that one of our large markets for drilling fluids out of the refinery is Western Canada.

Where the dips are but just curious if there any other <unk>.

Do give us optimism that we expect to see a bit of an uptick as we get into next year.

A headwind or tailwind that you see outside of kind of the headline diff whether it's.

One thing, we flirted with contango, just recently and so obviously thats a big deal we've been very backward dated for a long time, just recently, we've flirted with contango if that was to come back. Obviously, there is a very positive impact for our bottom line on the refinery side of things one of it is actually just demand for products that.

Refining margins or I mean, if we do see crude go into contango, just like anything else out there that could potentially swing a marketing one way or the other over the call it medium term.

I think there's a few things but.

One of our one of our large markets for drilling fluids out of the refinery as Western Canada, and as you see a fair bit of activity around.

And that there is still early on either but they do give us optimism that we can expect to see a bit of an uptick as we get into next year.

One thing we've flirted with contango, just recently and so obviously, that's a big deal we've been very backward dated for a long time, just recently, we've flirted with contango if that company was to come back. Obviously, there is a very positive impact for our bottom line on the refinery side of things one of it is actually just demand for products that.

Curtis Philippon: As you see, a fair bit of activity around LNG-related drilling activity in Western Canada, we think there's a bit of a small uptick around that, and that's a good product for us. That's a nice indicator for us. Then the other one is just around Gateway, in that in our US side of our business, we haven't really done a lot to take advantage of what our marketing team can do to help Gateway customers. We expect that you'll see us do more out of our US business to grow a bit of a market business that supports Gateway throughput.

LNG related drilling activity in Western Canada.

There's a bit of a small uptick around that and it's a good product for us.

So that's a nice indicator for us and then the other one is just around gateway and that we have in our U S side of our business. We haven't really done a lot to take advantage of what our marketing team can do to help gateway customers and we expect that Youll see us do more out of our U S business to grow a bit of a.

One of our one of our large markets for drilling fluids out of the refinery as Western Canada, and as you see a fair bit of activity around.

LNG related drilling activity in Western Canada.

Our marketing business that supports gateway throughput.

There's a bit of a small uptick around that and it's a good product for us.

Okay, great. Thank you.

Sam Burwell: Okay, great. Thank you.

One moment for our next question.

So that's that's a nice indicator for us and then the other one is just around gateway and that we have in our U S side of our business. We haven't really done a lot to take advantage of what our marketing team can do to help gateway customers and we expect that Youll see us do do more out of our U S business to <unk>.

Operator: One moment for our next question. The next question comes from Robert Hope with Scotiabank. Go ahead, your line is open.

The next question comes from Robert Hope with Scotiabank go ahead. Your line is open.

Good morning, everyone, maybe keeping on the South Texas team.

Robert Hope: Morning, everyone. Maybe keeping on the South Texas theme, you know, with Cactus entering service here imminently as well as the dredging now done, you know, where are you spending most of your time on the files for that asset? Is it on the storage side? You know, are you devoting more time to the incremental dock, or is it all contracting?

With cactus entering service here imminently as well as the dredging done where are you spending most of your time on.

Grow a bit of a marketing business that supports gateway throughput.

On the <unk> for that asset is it on the storage side.

Okay, great. Thank you.

Devoting more time, Inc.

Incremental stock or that all contracting.

One moment for our next question.

The next question comes from Robert Hope with Scotiabank go ahead. Your line is open.

Yes on Gateway, obviously, great story this year with a couple of notable things and so as we get into 2006. There is a certain amount of US has taken advantage of the new capabilities that we've got now we've got this dredged facility.

Curtis Philippon: Morning, Rob. On Gateway, like obviously great story this year with a couple of notable things. As we get into 2026, there's a certain amount of us just taking advantage of the new capabilities that we've got now. Now that we've got this dredged facility and all this connectivity, we can really move into some recontracting with customers at larger MVCs. The original MVCs at the facility were done at an Aframax-sized vessel. Now that we're fully VLCC ready, as recontracting comes up, there'll be larger windows being contracted. You know, it's nice that we're getting paid on throughput today for that incremental volume, but we love MVCs. We're midstreamers, we love guaranteed revenue.

Good morning, everyone, maybe keeping on the South Texas team.

With cactus ancillary service here imminently as well as the dredging now done where are you spending most of your time on.

And all of this connectivity, we can really move into some re contracting with customers to at larger Mvc's and that the original NBC is that the facility were done at an aframax size vessel now that were fully VLCC ready.

On the files for that asset is it on the storage side.

Devoting more time to the increments stock or that all contracting.

Yeah on Gateway, obviously, great story this year with a couple of notable things and so as we get into 'twenty six.

Re contracting comes up it will be larger windows being contracted and it's nice that we're getting paid on throughput today for that incremental volume.

A certain amount of us just taken advantage of the new capabilities that we've got now we've got this dredged facility.

But.

We love Mvc's, but worth more mid streamers, we love guaranteed revenue and so youll see a lot of work over the next couple of years as contracts come up to sort of shift over to larger mvc's versus having.

And all of this connectivity, we can really move into some re contracting with customers to at larger Nbc's and that the original NBC is that the facility were done at an aframax size vessel now that were fully VLCC ready.

Curtis Philippon: You'll see a lot of work over the next couple years as contracts come up to sort of shift over to larger MVCs versus having a variable portion on some of this throughput. That's one piece. The other piece that we're seeing is just with the large amount of activity at Gateway that we're seeing customers really pulling for, looking for additional supply. We're doing a fair bit of work out in Wink to go support sourcing additional volumes for customers. And that's quite helpful as they think about getting incremental cargoes off the dock in Gateway. What can we do to find additional barrels for them?

A variable portion on some of the throughput. So that's that's one piece. The other piece that we're seeing is just with the large amount of activity at gateway that were seeing customers really pulling for a lot looking for additional supply.

As re contracting comes up it will be larger windows being contracted and it's nice that we're getting paid on throughput today for that incremental volume.

We love Mdc's, they're worth more mid streamers, who love guaranteed revenue and so youll see a lot of work over the next couple of years as contracts come up to sort of shift over to larger nbc's versus having.

A variable portion on some of its throughput. So that's that's one piece. The other piece that we're seeing is just with the large amount of activity at gateway that were seeing customers really pulling for a lot looking for additional supply.

A fair bit of work around that and I think we'll talk more about that at the Investor day, and some of the things we're doing there.

Curtis Philippon: We're doing a fair bit of work around that, and I think we'll talk more about that at the Investor Day and some of the things we're doing there. Also out of the Eagle Ford, we see some nice opportunities to provide additional Eagle Ford barrels with existing customers that have a footprint up there that would like to get more of those barrels across the dock. You know, we're doing a few things around that as well to sort of unlock some of that potential for the Eagle Ford.

And then also out of the Eagle Ford, we see some nice opportunities to provide additional eagle Ford barrels with existing customers that have a footprint up there that we'd like to get more and more of those barrels.

So we're doing a fair bit of work out in Wink to go support sourcing additional volumes for customers and that's that's quite helpful. As they think about getting incremental cargoes off the dock and gateway what can we do to find additional barrels for them. So we're doing a fair bit of work around that and I think we'll talk more about that at the Investor day and some of the things we're doing there.

Across the dock and so we're doing doing a few things around that as well to sort of unlock some of that potential for the Eagle Ford.

Alright, Thanks for that and then maybe on <unk>.

Robert Hope: All right. Thanks for that. Maybe on Wink, you've highlighted it a couple times this call, and it's been silent for a number of calls recently. You know, how are you thinking about your Wink assets and, you know, what do you think the outlook for them is and how they fit in to the company longer term?

<unk> highlighted a couple of times as tall and it's been silent for a number of calls recently how are you thinking about your wind assets and what do you think the outlook for that is and how they fit in to the company longer term.

And then also out of the Eagle Ford, we see some nice opportunities to provide additional eagle Ford barrels or existing customers that have a footprint up there that we'd like to get more and more of those barrels.

Wink Wink is it's an interesting one for us early on with Gateway, we definitely under under promised around what is the linkage between gateway and when it can still still early we're learning what exactly that potential was but in the back of our minds.

Across the dock and stuff, we're doing doing a few things around that as well to sort of unlock some of that potential for the Eagle Ford.

Curtis Philippon: Yeah, Wink is Wink has been an interesting one for us. Early on with Gateway, we definitely underpromised around what is the linkage between Gateway and Wink. It was still early. We were learning what exactly that potential was. In the back of our minds, we thought, we think there's something there. We've seen that play out this year, that it is a big deal for customers to be able to find more barrels for the across the dock in Gateway. Having the ability to gather barrels at Wink has been an advantage for us. We've leaned into that. The team has done an exceptional job, and you can see the volumes going up. We're seeing some good activity and profitability out of that Wink business.

Alright, Thanks for that and then maybe on <unk>.

<unk> highlighted a couple of times this call and it's been silent for a number of calls recently how are you thinking about your wind assets and what do you think the outlook for them is and how they are today.

We think theres something there and we've seen that play out this year that it is a big deal for customers to be able to find more barrels for the across the dock and gateway and so having the ability to gather barrels at Wink has been an advantage for us and so we've leaned into that the team has done an exceptional job and you can see the volumes going up.

And the longer term.

Wink Wink is it's an interesting one for us early on with Gateway, we definitely under under promised around what is the linkage between gateway and we can still fill earlier, we're learning what exactly that potential was but in the back of our minds.

So we're seeing some good some good activity and profitability out of that link business. We think there's an opportunity to grow that a little bit as well as we I think it's a good piece of business, but it's also a nicely supports gateway so youll see us leaning into that one a little bit more.

We think theres something there and we've seen that play out this year that it is a big deal for our customers to be able to find more barrels for across the dock and gateway and so having the ability to gather barrels at wink has been an advantage for us and so we've leaned into that the team has done an exceptional job and you can see the volumes going up.

Curtis Philippon: We think there's an opportunity to grow that a little bit as well as you know, I think it's a good piece of business, but it's also nicely supports Gateway. You'll see us leaning into that one a little bit more. I also think just from an overall macro of the Permian, why I'm interested in that is ‘cause you can look forward and say the Permian is right now today a fairly flattish production profile over the next little bit.

And I also think just from an overall macro of the Permian why im interested in that because you can look forward and say the Permian is.

Right now today, a fairly flattish production profile over the next little bit, but if you look specifically at the quality of the barrel in the Permian there is a real trend going on out there right now.

We're so we're seeing some good some good activity and profitability out of that Wink business. We think there's an opportunity to grow that a little bit as well as we I think it's a good piece of business, but it is also nicely supports gateway so you'll see us leaning into that one a little bit more.

Curtis Philippon: If you look specifically at the quality of the barrel in the Permian, there's a real trend going on out there right now that there's increasingly more quality-challenged barrels that would benefit from a terminaling solution that Wink and Gibson can provide to help them make sure that they're optimizing their quality before shipping the barrels out of the field. I think increasingly the importance of our service increased a bit. In saying all that, it's still a relatively small part of our business. We're talking about 50,000 barrels a day of gathering. It's a relatively small asset for us, but we've been pleased with how it's performed.

There is increasingly more quality challenged barrels that.

Would benefit from a terminalling solution that link.

And I also think just from an overall macro of the Permian why I'm interested in that does because you can look forward and say the Permian is.

<unk> can provide to help them make sure that they're optimizing their quality before shipping the barrels out of the field and so I think increasingly the <unk>.

Portance of our service increase a bit been saying all of that it's still a relatively small part of our business. This is we're talking about 50000 barrels a day of gathering.

There is increasingly more quality challenged barrels that that.

It's a relatively small asset for us, but we've been pleased with how it's performed.

Would benefit from a terminalling solution that wink and Gibson can provide to help them make sure that they are optimizing their quality before shipping the barrels out of the field and.

Thank you.

Standby for our next question.

Robert Hope: Thank you.

Operator: Stand by for our next question. The next question comes from Maurice Choy with RBC Capital Markets. Go ahead, your line is open.

The next question comes from Maurice Choy with RBC capital markets Go ahead. Your line is open.

And so I think increasingly the importance of our service.

Thank you and good morning.

<unk>.

<unk> been saying all that it's still a relatively small part of our business. This is we're talking about 50000 barrels a day of gathering it.

Just a question on I guess, taking a bigger picture about your objectives and your second year as CEO.

Maurice Choy: Thank you. Good morning. Just a question on, I guess, taking a bigger picture about your objectives in your second year as CEO. Feels like the first year you've channeled the company's focus, including on keeping things more simple, focusing on the crude oil theme, optimizing costs, and on culture. When you think about your second year, what are some of the mandates you've been given by the board and, you know, how do you look at things like M&A as well as, you know, any of the hirings that you need to make beyond Blake?

It's a relatively small asset for us, but we've been pleased with how it's performed.

Feels like the first year, you've channels, the company's focus including on keeping things simple focusing on crude oil theme optimizing costs on culture.

Thank you.

Standby for our next question.

Do you think about your second year.

The next question comes from Maurice Choy with RBC capital markets Go ahead. Your line is open.

Some of the mandates you've been given by the board and.

Do you look at things like M&A.

And you have to hire them, so you need to make beyond Lake.

Thank you and good morning.

Question on I guess, taking a bigger picture about your objectives and your second year as CEO.

Hey, good morning Morris.

I think it's been I think you characterized the first year well that we had a certain amount of work to do in the first year to get the organization focused on cost and strategically aligned.

Curtis Philippon: Yeah. Good morning, Maurice. I think it's been, I think you characterized the first year well, that we had a certain amount of work to do in the first year to get the organization focused on cost and strategically aligned. Execute really well out in Gateway, and the team has done a phenomenal job of that. I think as we get into next year, it's a little bit of, okay, we've got the team in place now and let's go really, let's accelerate this now. There's an opportunity to accelerate our growth in some of the things that we're doing.

It looks like the first year, you've channels, the company's focus including on keeping things simple focusing on crude oil theme optimizing cost on culture.

Execute really well out in gateway and the team has done a phenomenal job of that and so I think as we get into next year, it's a little bit of okay. We've got the team in place now and.

Think about your second year, what are some of the mandates you've been given by the board and how do you look at things like M&A and so all of those.

And let's let's go really let's accelerate this now there is an opportunity to accelerate our growth in some of the things that we're doing.

So you need to make beyond Lake.

Hey, good morning worse.

I think it's been a I think you characterized the first year well that we had.

And now that we've been through a bit of a period of change I think now we've got a bit of ability just go run no and I'm really pleased with the team we've got around the table and pretty excited about what we can do with that but we'll see what that means for M&A I think we've proven with gateway that Gibson is capable of doing.

Curtis Philippon: You know, now that we're sort of been through a bit of a period of change, I think now we've got a bit of ability to just go run now, and I'm, you know, really pleased with the team we've got around the table and pretty excited about what we can do with that. We'll see what that means for M&A. I think, you know, we've proven with Gateway that Gibson's capable of doing excellent M&A and going and integrating it well and delivering on it. We're not gonna force that. We know I think one of our benefits is we're, of our size that we don't, there's not a need to go do M&A just to get a little bit bigger for the sake of getting bigger.

Certain amount of work to do in the first year to get the organization focused on cost and strategically aligned.

Executing really well out in gateway and the team has done a phenomenal job of that and so I think as we get into next year, it's a little bit of okay. We've got the team in place now and.

And let's let's go really let's accelerate this now there is an opportunity to accelerate our growth in some of the things that we're doing.

Excellent M&A, and going and integrating well and delivering on it.

But we're not going to force that I think one of our.

And now that we've sort of been through a bit of a period of change I think now we've got a bit of ability to just go run no and I'm really pleased with the team we've got around the table and pretty excited about what we can do with that but we'll see what that means for M&A I think we've proven with gateway that gibson's capable of doing.

<unk> of our size that we don't there's not a need to go do M&A just to get a little bit bigger for the sake of getting bigger we would do M&A on crude focused assets that were true crown jewel type assets that we could add to our portfolio that nicely plugged into our into our current assets as vessels.

Curtis Philippon: We would do M&A on crude-focused assets that were true crown jewel type assets that we could add to our portfolio that nicely plugged into our current assets as best as possible and had the sort of contract profile and customer quality that we're after. The valuation has to make sense. In saying all that, I think we'll be pretty focused on growth capital, but have an eye on is there potential M&A out there that's crude-focused that makes sense for us.

Excellent M&A.

Hospital and had the sort of contract profile and customer quality that we're after.

And going and integrating it well and delivering on it but.

But we're not going to force that I think one of our.

And the valuation is to make sense. So in saying all that I think will be pretty focused on growth capital, but have an eye on is there a potential M&A out there thats crude focused it makes sense for us.

<unk> where are.

Size that we don't there's not a need to go do M&A just to get a little bit bigger for the sake of getting bigger we would do M&A on crude focused assets that were true crown jewel type assets that we could add to our portfolio that nicely plugged into our into our current assets as best as possible and had the sort of.

Understood and if I could just finish off on a question on the leverage targets.

Maurice Choy: Understood. If I could just finish off on a question on the leverage and the targets. Riley, I think you mentioned earlier that you're forecasting to reach your 3 to 3.5 debt-to-EBITDA target by the first half of next year. I think previously there was a mention of this being early 2026. Would you view that to be consistent with your prior messaging? If not, is it merely the marketing outlook having changed a little bit for 2026, or are there other drivers that you highlight?

Brian I think you mentioned earlier that Youre forecasting to meet your three to three and a half debt to EBITDA target by the first half of next year.

Contract profile and customer quality that we're after.

And the valuation has to make sense, so saying all that I think you will be pretty focused on growth capital, but have an eye on is there a potential M&A out there thats crude focused that makes sense for us.

I think previously there was mention of this being early 2026, so would you view that to be consistent with your prior messaging and if not is it me.

<unk> marketing outlook have changed a little bit between 26 value drivers that you highlight.

Understood and if I could just finish off on a question on the leverage target.

Thanks, Paul I think as we look at our leverage and kind of returning to a normalization in the first half we would view that is consistent with our prior messaging.

Brian I think you mentioned earlier that youre forecasting to reach your 3% to three and a half.

Curtis Philippon: Thanks, Mo. I think as we look at our leverage and kind of returning to our normalization in the first half, we would view that as consistent with our prior messaging. Really the main impact driving that downward is realizing the benefit of all the great capital projects we've done here in 2025. As that EBITDA comes online, we'll drive our leverage back down to the range that we like. We feel very comfortable with our long-term deleveraging plan, and we expect to achieve that in the next first half of next year.

Target.

And really the main impact driving that downward is realizing the benefit of all the great capital projects. We've got in here in 2025 is that EBITDA comes online what will drive our leverage back down to the range that we like so we feel very comfortable with our long term deleveraging plan that.

First half of next year.

I think previously there was mentioned that Thats being early 2026, so would you view that to be consistent with your prior messaging and if not is it me.

<unk> marketing outlook.

And we expect to achieve that in the next.

A little bit between 26 are on that and drivers that you highlight.

First half of next year.

Thanks, Paul I think as we look at our leverage and kind of returning to a normalization in the first half we would view that is consistent with our prior messaging.

Thank you very much.

Maurice Choy: Understood. Thank you very much.

One moment for our next question.

Operator: One moment for our next question. The next question comes from Benjamin Pham with BMO. Go ahead, your line is open.

The next question comes from Benjamin Pham with BMO go ahead. Your line is open.

Alright. Thanks, Good morning, I wanted to follow up on that.

Benjamin Pham: Hi. Thanks. Good morning. I wanted to follow up on the last question and maybe just touch base on your thoughts on the your current leadership team. Are you effectively have completed what you need to place on your team? I'm also curious with the new hire, what priorities you've set for him and any potential changes in terms of how you think about the US versus before?

Yes.

Question, and maybe just touch base on your your.

Thoughts on.

And we expect to achieve that in the first half of next year.

And.

Your current leaner.

Leadership team are you effectively have completed what.

Thank you very much.

Do you need to place on your team and I'm also curious with the new hire what priorities.

One moment for our next question.

The next question comes from Benjamin Pham with BMO go ahead. Your line is open.

You've set for him and.

Alright. Thanks, Good morning, I wanted to follow up on that.

Any potential changes in terms of.

How do you think about the U S versus before.

Yes.

Question, and maybe just touch base on your.

Thoughts on.

Yes, so from a team perspective on predict cited about the team we've got I think we've got it.

And.

Your current leaner.

Curtis Philippon: Morning, Ben. So from a team perspective, I'm pretty excited about the team we've got. I think we've got. You know, it's so important to get the right team around the table. We've done that. We've got a team that's pretty excited about growing Gibson over the next phase of time. We're excited about that. In particular with Blake joining now, you know, we looked at the US business with the addition of Gateway, is now Gibson's very relevant in the US. You know, we've got, you know, part of bringing Blake in is like, one, let's make sure that we're running and are managing our Gateway and our Wink asset very well and continuing to drive good growth out of those things and driving great recontracting and doing all those positive things.

Leadership team are you effectively have completed what.

So important to get the right team around the table.

You need to place on your team and I'm also curious, what's the new hire what priorities.

We've done that we've got a team thats pretty excited about growing Gibson over the next phase of time.

And so we're excited about that in particular with Blake joining now.

You've set for him and.

Any potential changes in terms of.

We looked at the U S business with the addition of Gateway is now gibson's very relevant in the U S and so we've got.

How do you think about the U S versus before.

Yes, so from a team perspective, I'm pretty excited about the team we've got I think we've got it.

Part of bringing Blake in as like one, let's make sure that we're running and managing our gateway and our wink asset very well and continuing to drive good growth out of those things and driving great re contracting and doing all of those positive things. So that sort of plan is sort of keep the card on the tracks are having a bunch of success keep that keep that going well.

So important to get the right team around the table. We've we've done that we've got a team that's pretty excited about growing Gibson over the next phase of time.

And so we're excited about that in particular with Blake joining now.

Curtis Philippon: That's sort of plan A, sort of keep the car on the track. We're having a bunch of success, keep that going well. The second part of that is, boy, we're relevant now. Like, we're exporting 1 in 5 barrels out of the US goes through the Gibson Gateway facility. We're a meaningful part of the energy infrastructure in the US. We've got a footprint now, what do we do with that? What other incremental growth capital or other things could we do that could expand that growth down in the US? You know, I think that's really what his mandate is.

We looked at the U S business with the addition of Gateway is now Gibson is very relevant in the U S and so we've got.

Second part of that is boy, we're relevant now we're exporting one in five barrels out of the U S goes through the Gibson Gateway facility. So we are a meaningful part of the energy infrastructure in the U S. We've got a footprint now what do we do with that and what other incremental growth capital or other things can we do that could expand.

Part of bringing Blake in as like one, let's make sure that we're running and managing our gateway and our wink asset very well and continuing to drive good growth out of those things and driving great re contracting and doing all those positive things. So thats. Our plan is to keep the car on the track. So we're having a bunch of success keep that keep that going well.

And that growth down in the U S.

So I think Thats thats really what his mandate is and saying that we're targeting.

The second part of that is boy, we're relevant now we're exporting one in five barrels out of the U S goes through that Gibson Gateway facility. So we are a meaningful part of the energy infrastructure in the U S. We've got a footprint now what do we do with that and what other incremental growth capital or other things can we do that.

Curtis Philippon: In saying that, it's, you know, we're targeting this overall infrastructure EBITDA per share growth of over 5%, and I expect there'll be a nice mix of Canadian and US growth that'll be pushing for that. A little bit of adding Blake to the mix, and his counterpart, Kelly Holtby in Canada is just we grid a nice competitive tension of a lot of projects coming to the forefront for us to compete for capital and make sure we're driving the best possible projects forward on both sides of the border at the best possible returns. You know, I think that's a little bit of how we're thinking about it.

Getting this overall infrastructure EBITDA.

Per share growth of over 5% and I expect there'll be a nice mix of Canadian and U S growth that will be pushing for that and a little bit of adding Blake to the mix and his counterpart Kelly hope be in Canada.

We get a nice a nice competitive tension of a lot of projects coming to the forefront for us to compete for capital and make sure. We're driving the best possible projects forward on both sides of the border at the best possible returns and so I think that's a little bit of how we're thinking about it.

To expand that growth down in the U S.

So I think that's really what his mandate is and saying that's where we're targeting this overall infrastructure EBITDA.

Per share growth of over 5% and I expect there'll be a nice mix of Canadian and U S growth that will be pushing for that and a little bit of adding blake to the mix.

Okay.

Daily not not necessary, putting put any numbers at this point in time that you can see key long term.

Benjamin Pham: Okay. To go out ideally, not necessarily putting numbers at this point in time that you could see long term, nice balance, mix of sanction and projects between both countries?

And his counterpart Kelly hope be in Canada.

<unk>.

Actually on projects between the countries.

Regret a nice a nice competitive tension of a lot of projects coming to the forefront to for us to compete for capital and make sure. We're driving the best possible projects forward on both sides of the border at the best possible returns and so I think that's a little bit of how we're thinking about it.

Yes, it's hard to predict what the mixes.

Curtis Philippon: Yes, it's hard to predict what the mix is. I think right now, I think it's a fair assumption that you've got a balance between both sides of the border. We've got the US market is obviously much larger, the opportunity set is tremendous. On the other side, in Canada, Gibson's got 70 years of history and just a really substantial asset base across the Western Canadian basin that gives us a lot of relationships and a lot of opportunities on the Canadian side of the border as well.

Right now I think Thats, a fair assumption that you've got a balance between both sides of the border.

When you.

We've got the U S market is obviously much larger and so the opportunity set is tremendous but on the other side in Canada Gibson got 70 years of history and just a really.

Okay.

Not necessarily putting putting numbers at this point in time that you could see a key long term balance.

Substantial asset base across the Western Canadian basin that gives us a lot of a lot of relationships and a lot of opportunities on the Canadian side of the borders.

Actually on projects between the countries.

It's hard to predict what the mixes.

Right now I think that's a fair assumption that you've got a balance between both sides of the border.

Okay got it and then maybe a follow up question to <unk>.

Benjamin Pham: Okay. Got it. Maybe a follow-up question to your earlier comments, Curtis, on the volume uptick maybe not necessarily translating to one-to-one on the EBITDA side of things. I was wondering, as I just simply look at your numbers infrastructure year-to-date, year-to-year, it's up 2%. Understand there's some dredging impacts there. There's asset sales, you got the Edmonton project, and you got a big wrap up in Gateway. I guess maybe just unpack that a bit of just maybe the disconnect between volumes and EBITDA growth. Is the 15% to 20% then is that more of sounds like it's more of a back end uptick than depending on your comments on the first point?

Earlier.

When you know we've got the U S market is obviously much larger and so the opportunity set is tremendous but on the other side in Canada Gibson got 70 years of history and just a really.

Comments, Chris on the volume uptick maybe not necessarily translating to the one for one on the EBITDA.

Got it thanks.

I was wondering I just.

Abstention asset base across the Western Canadian Basin.

Simply look at your numbers infrastructure year to date.

It gives us a lot of relationships and a lot of opportunities on the Canadian side of the borders.

Yes, it's up 2%.

And I understand there's some dredging impacts there there is asset sales, but then you've got the Edmonton project and you've got a big ramp up in gateway.

Okay got it and then maybe a follow up question to <unk>.

Earlier.

Comment Chris on the volume uptick maybe not necessarily translating to the one for one on the EBITDA.

So is that.

I guess, maybe just unpack that a bit I just made a disconnect between volumes and EBITDA growth and then.

Got it thanks.

I was wondering.

Is it 15%, 20% then is that more sounds like it's more of a backend.

I just simply look at your numbers infrastructure year to date.

Yeah, it's up 2%.

Uptake then depending on your comments on the first point.

And I understand there's some tragic impacts there there is asset sales, but then you've got the Edmonton project and you've got a big ramp up in gateway.

I think you've got it got.

We've definitely seen volume increases, but as I mentioned, there is not a direct correlation between sort of revenue on some of those volumes and so when I look at those volume increases I get excited about okay. The next set of re contracting when does the next tank demand come on as you see our customers getting more and more active in the terminal.

Curtis Philippon: Yeah, I think you've got it. We've definitely seen volume increases, but as I mentioned, there is not a direct correlation between sort of revenue on some of those volumes. When I look at those volume increases, I get excited about, okay, the next set of recontracting, when does the next tank demand come on as you see our customers getting more and more active in the terminal? Then, and then on top of that, when you get into situations where you get into egress challenges in the future, you know, the fact that we've got a great customer base moving a lot of volume, I think that just really even further enhances how can we help them at times of egress challenges in the future.

So is that.

I guess, maybe just unpack that a bit I just made a.

Between volumes and EBITDA growth and then.

Is it 15%, 20% Dan is that more sounds like it's more of a backend.

And then and then on top of that when you get into situations, where you get into egress challenges in the future. The fact that we've got a great customer base moving a lot of volume I think that just really even further enhances how can we help them at times of egress challenges in the future. So it's a it's definitely a very much a forward look that we get excited about what that impact is versus.

Uptick then depend.

Depending on your comments on the first point.

Yes, I think you've got you've got it there is we've definitely seen volume increases, but as I mentioned, there is not a direct correlation between sort of revenue on some of those volumes and so when I look at those volume increases I get excited about okay. The next set of re contracting when does the next tank demand come on as you see our customers getting more and more.

Curtis Philippon: It's definitely very much a forward look that we get excited about what that impact is versus sort of, an immediate, earnings impact other than in Gateway, where we see some throughput, earnings impact on the sort of the excess over MBC numbers. That's a little bit about how I'm thinking about the volumes. In the 15% to 20% marker on Gateway, we feel very good about that. That's the marker we set on acquisition day that we thought that we'd realize some benefits and drive a 15% to 20% increase from what the run rate was at the time of acquisition to at some point in the future. We're hitting that some point in the future here in Q4.

Sort of an immediate earnings impact other than in gateway, where we see some throughput earnings impact on the sort of the excess over MVC numbers.

We're active in the terminal.

And then and then on top of that when you get into situations, where you get into egress challenges in the future. The fact that we've got a great customer base moving a lot of volume I think that just really even further enhances how can we help them at times of egress challenges in the future. So it's a bit of it definitely very much a forward look that we get excited about what that impact is versus.

So that that's a little bit about how I'm thinking about the volumes.

Is the 15% to 20% marker on gateway we.

We feel very good about that the world. So that's the marker was that an acquisition day that we wanted to we thought that we would realize some benefits and drive a 15% to 20% increase from what the run rate was at the time of acquisition to two at some point in the future we're hitting that some point in the future here in Q4.

Sort of an immediate earnings impact other than gateway, where we see some throughput earnings impact on the sort of the excess over MVC numbers.

There will be a step up in Q4 with the.

Curtis Philippon: There will be a step up in Q4 with, just being able to realize sort of a bit more of the full benefit of having these, of these assets available to us. I think you'll see a bit more of that. We'll likely be closer to the 15% in Q4, and you'll see a bit more of that as you get into 2026 now that you've got... Obviously, we only have Cactus for part of the quarter here in 2025.

So that that's a little bit about how I'm thinking about the volumes.

Being able to realize sort of a bit more of the full benefit of having these SaaS.

Is the 15% to 20% marker on gateway we.

Assets available to us I think you'll see a bit more of that will likely be closer to the 15%.

We feel very good about that that well. So that's the marker was that an acquisition that we wanted to we thought that we would realize some benefits and drive a 15% to 20% increase from what the run rate was at the time of acquisition to two at some point in the future we're hitting that some point in the future here in Q4.

In Q4, and you'll see a bit more of that as you get into 2026 now that you've got.

So we only have cactus for part of the quarter here in <unk> and 'twenty five.

Okay, that's great.

There will be a step up in Q4 with the.

Thank you and thanks for confirming.

Benjamin Pham: Okay. That's great. That's what I was thinking. Thanks for confirming.

<unk> been able to realize sort of a bit more of the full benefit of having these SaaS.

One moment for our next question.

Operator: One moment for our next question. The next question comes from Patrick Kenny with NBCM. Go ahead, your line is open.

Assets available to us I think you'll see a bit more of that will likely be closer to the 15%.

The next question comes from Patrick Kenny with NBC and go ahead. Your line is open.

In Q4, and you'll see a bit more of that as you get into 2026 now that you've got obviously, we only have cactus for part of the quarter here in <unk> and 'twenty five.

Thank you good morning, guys.

On the imaging terminal.

Patrick Kenny: Thank you. Good morning, guys. Just on the Edmonton terminal, seeing the throughput being up nicely with TMX and obviously the Baytex deal coming online, just wondering if you could refresh us on what the remaining upside story here looks like at Edmonton, either from a capacity or capital investment standpoint.

Seeing the throughput being up nicely with Pemex.

And then obviously the <unk> deals coming online just wondering if you could refresh us on what.

Okay. That's great that's what I was thinking and thanks for confirming.

But the remaining upside story here it looks like at Edmonton.

One moment our next question.

City or capital investment standpoint.

The next question comes from Patrick Kenny with NBC and go ahead. Your line is open.

Yes.

Yes, we're pretty excited I think it's over half the volume is going into <unk>. That's a good story I think where we think about what does the additional growth specifically in Edmonton. When we added those last two tanks for synovus on 15 year agreements. We did the pre work to get ready to build two more tanks as you see volume of activity continued to increase.

Curtis Philippon: Mark, Pat. We're pretty excited. Like, it's over half the volume is going on to TMX. That's a good story. I think where we think about what is the additional growth, specifically in Edmonton, when we added those last two tanks for Cenovus on 15-year agreements, we did the pre-work to get ready to build two more tanks. As you see, volume and activity continued to increase. I think the probability of adding those two tanks just increases as well. I think there's sort of two things. There's sort of, is there additional TMX debottlenecking and growth and whether that's dredging at one end of that that allows them to get additional throughput. I think there's some positive indicators on sort of volume increase that will have a good impact on Gibson.

Thank you good morning, guys.

On the Edmonton terminal.

Seen the throughput being up nicely with BMX and then obviously the <unk> deal coming online just wondering if you could refresh us on.

What's the remaining upside story here it looks like it emitted from a capacity or capital investment standpoint.

I think the probability of adding those two thanks, just increases as well.

Whether I think theres sort of two things there is sort of.

Yes.

Yes, we're pretty excited.

Over half the volume is going into <unk>. That's a good story I think.

Additional <unk>, debottlenecking and growth and whether thats dredging in one end of that.

We think about what is the additional growth specifically in Edmonton when we added those last two tanks for synovus on 15 year agreements. We did the pre work to get ready to build two more tanks as you see volume and activity continued to increase the probability of adding those two thanks just increases as well.

All of them to get additional throughput I think there is some positive indicators on sort of volume increase that will have a good impact on Gibson, but also the second part is it still so new that I think our customers are telling us that they.

Curtis Philippon: Also the second part is it's still so new that I think our customers are telling us that, they're still finding ways to further optimize their net back on how they're shipping on TMX. I think there's things we can do to help them on how they're shipping on TMX to sort of offer some upside. I think that provides a bit of a growth opportunity for us with our customers. Saying all that, I'd say this has exceeded our expectations for how much volume we've seen on TMX coming through the Gibson facility, and pretty excited about how that pipe's been operating.

We're still finding ways to further optimize their netback on what they are on other shipping on <unk> and I think there's things we can do to help them on how they are shipping on <unk> X the sort of offer some upside and so I think that provides a bit of a growth opportunity for us to their customers.

Whether I think theres sort of two things.

Is there additional Tms debottlenecking and growth and whether that's dredging in one end of that.

Allows them to get additional throughput I think there is some positive indicators on sort of volume increase that will have a good impact on Gibson, but also the second part is it still so new that I think our customers are telling us that.

But saying all of that.

I'd say this has exceeded our expectations for how much volume we've seen on T X coming through the Gibson facility and pretty excited about how that how that pipe has been operating.

We're still finding ways to further optimize their netback on what they are on other shipping on <unk> and I think there's things we can do it to help them on how theyre shipping on Tms that to sort of offer some upside and so I think that provides a bit of a growth opportunity for us to their customers.

Okay, that's great and then.

Maybe a gateway just coming back to.

Patrick Kenny: Okay, that's great. Maybe at Gateway, just coming back to, you mentioned you're still comfortable with the 15% to 20% growth target, but if I'm not mistaken, that target was set a while back. I'm just wondering, you know, based on where your market share is now in Corpus Christi, seeing how strong throughput has been year to date, just wondering how close you are to exceeding that 20% growth target as we look into next year. Just wondering if your base outlook includes your ability to move VLCCs at night or any other optimization efforts that might be in the works.

You mentioned youre still comfortable with the 15% to 20% growth target.

But if I'm not mistaken that target was set a while back and so I'm just wondering.

Based on where your market share is now in Corpus Christi seeing how strong throughput has been year to date, just wondering how close you are to exceeding that 20% growth target as.

But saying all of that.

I'd say this has exceeded our expectations for how much volume we've seen on <unk> coming through the Gibson facility and pretty excited about how that how that pipe has been operating.

As we look into next year.

And just wondering if.

Okay, that's great and then.

Gateway just coming back to you.

Your base outlook includes your ability to move Vlccs at nights or any other optimization efforts that might be in the works.

You mentioned youre still comfortable with the 15% to 20% growth target.

But if I'm.

I'm not mistaken that target was set a while back and so I'm just wondering if based on where your market share is now in Corpus Christi seeing how strong throughput has been year to date, just wondering how close you are to exceeding that 20% growth target as.

Yes, I think we will dive into a bunch more of that at Investor Day Patrick.

Curtis Philippon: Yeah. I think we'll dive into a bunch more of that at Investor Day, Patrick. I think there's an interesting additional value that you can unlock at Gateway. One, just using the current capabilities that we've already got. Yes, as you get into things like night moves of VLCCs and thinking about how do you optimize that capacity, I think there's some additional levers still to be pulled, even as we get to the 15% to 20% marker now, opportunity to exceed that as you go forward.

I think there is an interesting additional value that you can unlock at at gateway.

One just using the current capabilities that we've already got but yes, as you get into things.

As we look into next year.

And just wondering if.

Things like night moves of Vlccs in thinking about how do you optimize that capacity.

Your base outlook includes your ability to move Vlccs at nights or any other optimization efforts that might be in the works.

I think there is some additional lever is still to be pulled even.

Even as we get to the 15%, 20% marker now opportunity to exceed that as we go forward.

Yes, I think we will dive into a bunch more of that at Investor Day Patrick.

Got it and then maybe just lastly for Riley.

I think there is an interesting additional value that you can unlock at at gateway.

Patrick Kenny: Got it. Maybe just lastly for Riley, not to steal too much thunder from Investor Day, just coming back to the balance sheet and, you know, I guess the plan to stay under 3.5x once you get there next year. Curious how much dry powder you might see being available for, you know, additional partnerships like the Baytex deal or other tuck-in acquisition opportunities.

Still too much Thunder from Investor day, but.

Just coming back to the balance sheet.

One just using the current capabilities that we've already got but yes, as you get into things.

I guess the plan.

<unk> to stay under three five times once you get there next year.

Things like night moves of Vlccs in thinking about how do you optimize that capacity.

I'm curious how much dry powder, you might see being available for additional partnerships like the <unk> deal or other tuck in acquisition opportunities.

I think there is some additional lever is still to be pulled even.

Even as we get to the 15% to 20% marker now opportunity to exceed that as you go forward.

Yes, Thanks, Pat I think when we think about those type of opportunities. We think we have ample ample liquidity and ample ability to access the financial markets to support our growth plans. So no real concerns in growing and deploying capital to grow.

Got it and then maybe just lastly for Riley.

Riley Hicks: Yeah. Thanks, Patrick. I think when we think about those type of opportunities, you know, we think we have ample liquidity and ample ability to access the financial markets to support our growth plans. No real concerns in growing and deploying capital to grow. We're very comfortable with our financial plan and where we stand with the investment credit rating agencies. To the extent that we find great tuck-in acquisitions or opportunities or potential partnerships, we will be happy to execute.

Steal too much Thunder from Investor day, but.

Just coming back to the balance sheet.

I guess the plan to stay under three five times once you get there next year.

Very comfortable with our financial plan, and where we stand with the investment.

I'm curious how much dry powder, you might see being available for additional partnerships like the <unk> deal or other tuck in acquisition opportunities.

The credit rating agencies so to.

To the extent that we find great tuck in acquisitions or opportunities or potential partnerships. We will we will be happy to execute.

Okay. That's great. Thanks, guys I'll leave it there.

Patrick Kenny: Okay. That's great. Thanks, guys. I'll leave it there.

Thank you.

There are no further questions and I would now like to hand, the call back to that.

Riley Hicks: Thank you.

Operator: There are no further questions, and I would now like to hand the call back to Beth.

Thank you. Thank you for joining us for Gibson Energy Q3, 2025 earnings call additional supplementary information is available on our website at Gibson energy Dot com for follow up questions. Please reach out to Investor Relations at Gibson Energy Dot com. Thank you.

Very comfortable with our financial plan, and where we stand with the investment.

Beth Pollock: Thank you. Thank you for joining us for Gibson Energy's Q3 2025 earnings call. Additional supplementary information is available on our website at gibsonenergy.com. For follow-up questions, please reach out to investor.relations@gibsonenergy.com. Thank you.

The credit rating agencies, so do.

To the extent that we find great tuck in acquisitions or opportunities or potential partnerships. We will we will be happy to execute.

Okay. That's great. Thanks, guys I'll leave it there.

Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Thank you.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

There are no further questions and I would now like to hand, the call back to Beth.

Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Okay.

[music].

Q3 2025 Gibson Energy Inc Earnings Call

Request a DemoDemo

GEI

Gibson Energy

Earnings