Q3 2025 Gibson Energy Inc Earnings Call

November 4, 2025

Operator: Good morning, everyone, and welcome to the Gibson Energy Q3 2025 conference call. Please be advised that this call is being recorded. 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.

Good morning everyone and welcome to the Gibson energy. Third quarter 2025 conference call.

Please be advised that this call is being recorded.

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 1, 1 on your telephone and you will then hear an automated message. Advising that your hand is raised to withdraw your question. Please press star 1 1 again.

Beth Pollock: Thank you, Jill. Good morning and 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.

I would now like to turn the meeting over to Beth Pollock, Vice President of Capital Markets and Corporate Development. Miss Pollock, please go ahead.

Thank you, Jill. Good morning and Welcome to our third quarter earnings call joining me today from Gibson energy. Our 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.

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 and 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, and 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.

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, if such measures and information are set out in our investor presentation available on our website and our continuous disclosure documents available on Cedar. Plus with that, I will turn the call over to Curtis

Thanks, Beth. Good morning, everyone. And thank you for joining us today, the third quarter was a strong period for our customers in the Gibson team.

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.

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. 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.

In Edmonton. Throughput reached a record level of over 330,000, barrels per day, 14% higher than last quarter, and 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 the TMX,

At Hardesty volumes remained 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 Hardesty by year end.

At our Moose Jaw facility following the successful completion of the turnaround last quarter. We increased third quarter of 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 loading in August alone. And we have made that this momentum into Q4.

The terminal also has saw a record number of vessel loading during the quarter with 85% of those vessels, being vcc's. And Sue Has Maxes

Curtis Philippon: 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 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 essential role our assets and teams play in safely and efficiently delivering energy to global markets at the best possible netbacks for our customers.

These Gateway volumes represent a 20% share of total us crude exports and 44% of the Engleside Market.

And 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 third quarter throughput of approximately 52,000 barrels per day up from 43,000 barrels per day in the same period last year.

Curtis Philippon: 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. We're very proud of the outstanding safety culture and program at Gibson. The team is achieving best-in-class safety performance. In the 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. This week, we will achieve a key milestone 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.

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 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 lost time injury.

A great safety culture that is focused on continuous Improvement is the foundation for our successes and organizations.

This week, we will achieve a key Milestone on our strategic priority at Gateway.

Curtis Philippon: 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. 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.

On our strategic priority of Gateway execution, 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 permanent 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 our 15 to 20% Gateway. Even a 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, 2 connection will enable sustained elevated, throughput volumes,

Curtis Philippon: 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 five 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. The production is now flowing to our Edmonton terminal. On our cost-focused strategic priority, we continue to advance our We Are All Owners cost-focused 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.

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 the strengthen the Gibson growth muscle with the add the appointment of Blake hustle as senior Vice President Chief 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 tall grass and Phillips 66.

As 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 U.S. 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 Becks with successfully completed an important step that adds stable long-term cash flow under the 10 year, taker pay and area dedication agreement. The production is now flowing to our Edmonton terminal

Curtis Philippon: During the quarter, we captured one-time and ongoing cost savings, contributing CAD 9 million to distributable cash flow. On 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, and marketing contributed CAD 7 million of EBITDA as expected. Distributable cash flow was CAD 86 million during the quarter. In summary, the Q3 once again demonstrated the strength and resilience of Gibson's business model. 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 are well-positioned to continue generating stable, growing cash flows.

On our cost Focus strategic priorities. We continue to advance our, we are all owners cost focused initiative. We're on track to exceed 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 1 time, an ongoing cost savings contributing 9 million to distributable cash flow.

On financial highlights, the business delivered a solid quarter that was in line with our expectations in infrastructure, continued to perform exceptionally. Well, this quarter with near record even of 154 million and marketing contributed 7 million of ibida as expected. Distributable cash flow was 86 million during 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, on both sides of the border and maintained our unwavering commitment to safety.

Curtis Philippon: At the same time, our high-performing team continued focus on cost discipline. 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. Thank you, Curtis. As discussed, the 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.

As we look ahead with Gateway running at record levels, the construction and commissioning of cactus 2 complete and our duvet project with Bex on schedule. We are 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.

Riley Hicks: Thank you, Curtis. As discussed, the 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.

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

Thank you Curtis as discussed. The third quarter was another strong quarter for our Core Business.

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

Infrastructure EPA. Also accounted for over 95% of adjusted ibida before GNA During the period.

Emphasizing the high-quality, stable nature of our cash flows.

Curtis Philippon: 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. Our marketing segment delivered EBITDA of $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. As such, we anticipate marketing EBITDA for the year to be around $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.

Riley Hicks: 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. Our marketing segment delivered EBITDA of $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. As such, we anticipate marketing EBITDA for the year to be around $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.

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.

Assets and their value to our customers.

Our marketing segment delivered, ibida of 7 million for the quarter. Consistent with both our prior guidance and the previous quarter results.

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

Curtis Philippon: 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. On a consolidated basis, Q3 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 through our infrastructure segment. Turning to distributable cash flow, we generated $86 million in the Q3, a $3 million decrease from the Q3 of 2024. During the quarter, we captured one-time and ongoing cost savings, contributing an impressive $9 million or $0.05 per share to distributable cash flow.

Riley Hicks: 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. On a consolidated basis, Q3 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 through our infrastructure segment. Turning to distributable cash flow, we generated $86 million in the Q3, a $3 million decrease from the Q3 of 2024. During the quarter, we captured one-time and ongoing cost savings, contributing an impressive $9 million or $0.05 per share to distributable cash flow.

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

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 position in Gibson for continued. Stability, growth, and long-term value creation.

On a Consolidated basis, third quarter, adjusted ibida of 147. Million was 4 million lower than the same period in 2024.

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

Turning to distributable cash flow. We generated 86 million in the third quarter. A million dollar decrease from the third quarter of 2024

Curtis Philippon: Approximately 80% of these savings came from 4 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. 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 4x to 3.9x, though it remains above our long-term target range of 3x to 3.5x, while our consolidated payout ratio for the quarter was 85%. On an infrastructure-only basis, our debt-to-adjusted EBITDA ratio was 4.1x, and our payout ratio was 80%. As expected, leverage and payout are temporarily above our long-term targets.

Riley Hicks: Approximately 80% of these savings came from 4 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. 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 4x to 3.9x, though it remains above our long-term target range of 3x to 3.5x, while our consolidated payout ratio for the quarter was 85%. On an infrastructure-only basis, our debt-to-adjusted EBITDA ratio was 4.1x, and our payout ratio was 80%. As expected, leverage and payout are temporarily above our long-term targets.

During the quarter, we captured 1 time, an ongoing cost savings contributing. An impressive, 95 cents. Per share to distributable cash flow.

Approximately 80% of these savings came from 4, main drivers, lower, interest expenses, reduced property taxes, decreased operating costs and the 1 that I am most proud of are grassroot cost savings efforts. 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 ebit ratio improved from 4 times to 3.9 times.

Though it remains above our long-term target range of 3 to 3 and a half times. While our Consolidated payout ratio for the quarter was 85%,

On an infrastructure, only basis. Our debt to adjusted ebit or ratio was 4.1 times and our payout ratio was 80%.

Curtis Philippon: 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. 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 minus ratings, respectively, each with a stable outlook, underscoring their confidence in our long-term financial plan. With this, I will now pass the call back to Curtis for a few closing remarks. 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.

Riley Hicks: 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. 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 minus ratings, respectively, each with a stable outlook, underscoring their confidence in our long-term financial plan. With this, I will now pass the call back to Curtis for a few closing remarks.

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.

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, Triple B low and Triple B minus ratings. Respectively, each with a stable Outlook underscoring, their confidence in our long-term financial plan.

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.

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 a clear strategic Focus.

Curtis Philippon: We'll be holding our investor day in Toronto on 2 December 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.

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 December 2nd 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 and for your continued support and Gibson.

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 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the roster. Our first call comes from the line of Jeremy Tonnen with JPMorgan Securities. Go ahead, your line is open.

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 1 1 on your telephone and wait for your name to be announced to withdraw your question. Please, press star 1 1. Again please, stand by while we compile the roster.

Jeremy Tonet: Hi, good morning.

Our first call comes from the line of Jeremy tonin with JP Morgan Securities. Go ahead. Your line is open.

Curtis Philippon: Good morning. 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 topics we could be discussing there. Specifically, I guess, growth initiatives as you see at this point, any foreshadowing color you could provide at this juncture?

Curtis Philippon: Good morning.

Hi, 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 topics we could be discussing there. Specifically, I guess, growth initiatives as you see at this point, any foreshadowing color you could provide at this juncture?

Good morning.

Uh, I just want to pick up on one of the last points there with regards to the upcoming, uh, investor day in December. I'm just wondering if you might be able to provide a little bit more color, I guess, on what type of, uh, 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?

Curtis Philippon: We want to make sure you come to the Investor Day, so we don't want to get too far ahead of ourselves here. What I would say is I wouldn't come to it expecting that you're going to hear big individual project FIDs. We're not intending to announce a significance or $100 million-plus project FID in 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. 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 that we'll be working through. I wouldn't come expecting a specific project FID announcement.

Curtis Philippon: What you can expect to hear is we're going to be introducing 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. You'll meet our senior team. You'll hear a little bit more about what we've been working on over the last year, 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. Lastly, we're going to 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.

You don't want to get too far ahead of ourselves here, but what I would say is the uh I wouldn't come to it expecting that you're going to hear big individual project fids like we're not we're not intending to announce a significant or hundred million dollar plus project FID in the meeting or even announced any sort of significant change or Improvement in in marketing. Outlook it, you know, how we look at the world today is how we we think it looks like for the front half of the year uh 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 hundred million dollar range. They'll be we'll be working through. Um so I wouldn't come expecting a specific project FID announcement, what you can expect to hear is uh, we're going to be introducing the team. So we've got a number of new faces around the table and want to give people a chance to meet them in person. So, you'll 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 5-year plan. And I think for me, that's the important step that we, we

lay out some of those specifics and give a bit of a, a step-by-step of how we're thinking about growth and something that our investors can hold us accountable to. Um, and then, you know, lastly, we're going to spend a fair bit of time. Talking about what I believe is a pretty compelling return proposition and Gibson that, uh, is backed by an outstanding dividend.

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 next year. Around the middle of next year, do you see the egress tightening at that point and supporting better marketing, or any other thoughts you could share, I guess, on how marketing progresses over time?

That's helpful. Thank you for that and maybe picking up on 1 of your comments there. Uh, 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, um, you know, tightening at that point and supporting better marketing or any other thoughts you could share, I guess, and how marketing progresses over time.

Curtis Philippon: 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 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 really is fairly consistent for what we see in 2025.

Curtis Philippon: 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 are growing production, and that's really the core of our business. We're seeing very good, you see the throughput numbers, you see good project announcements from our customers, healthy balance sheets, all while there's sort of this 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 what, we'll we'll wait and see, I think at this point when you look at what what uh, you see for production and egress, I don't know that you see significant tightening of egress in 2026. So I think that's more in 2027 that you start seeing that coming in a bigger way. Uh, but I think you do start seeing it on the horizon and then you start seeing people acting in preparation of those egress challenges coming. And so I think that'll make for, uh, 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, uh, you know, it really is, uh, fairly consistent for what we see in 2025. And, uh, what I would comment on that is, you know, for the positive on that is, it is a tremendous environment right now for our infrastructure customers that, you know, even in low commodity markets, are infrastructure, customers are exceptionally healthy and are growing production, and that's really the core of our business. And so we're we're seeing um, you know, very good. You see the throughput number of

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

You see good project announcements from our customers, healthy balance sheets, all while there's sort of this challenging commodity market backdrop. And so, 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 degradation happening right now.

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.

Got it. That's uh helpful. I'll leave it there. Thank you.

1 moment for our next question.

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 stronger fundamental backdrop? If so, how material could that be?

The next question comes from the line of Aaron. Mcneel with TD Cohen. 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 to reflect that stronger fundamental backdrop? And if so, how material could that be?

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 you get into 2026 better than what it had been in 2024 and 2025.

Ever aired. I really we, we always have contract renewals that are happening. Uh, so there's no, there's no sort of

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 what the visibility to non-recurring savings could be on a go-forward basis?

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, you as you start seeing tightening egress, um, we, we like that market condition for renewals as you get into 26, uh, better than what it had been in in 24 and 25.

Okay.

Um, I I also wanted to dive a bit deeper into the impact of non-recurring cost savings. I know you. You don't split it up, but can you speak to the specific items? This quarter that we're non-recurring? What the impact is? And you know what, the visibility to non-recurring savings could be on a go forward basis.

Curtis Philippon: Yeah, we talk about sort of half and half. I don't know if we're given 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 IR Day. I would call it, 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're all owners here. Let's drive cost efficiencies across the business, has been powerful. We've probably talked about over 80% of our employees participating and having a direct impact on it. We had one example in the quarter that I think is a great story.

Curtis Philippon: We've got a senior op member of our ops team that's a long-term Gibson employee, Kevin Bulow 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. We're improving some connectivity in the Hardisty facility. 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," and drove a great conversation with our engineering team directly on that project. And 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.

A bit more at IR de, you know, I would call it the the cost Savings Program has just been tremendous. So the cultural impact of people leaning in and finding cost savings across. The business has been quite impactful and culturally getting people focused, and we're 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. Um, you know what, we had 1 example in the quarter that I think is a, is a great story. We've got a, a senior off member of our office team. That's a long-term Gibson employee Kevin buelow out in Hardesty who uh 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 improving some connectivity in in the Hardesty facility. You know, it was about an $800,000 project. Uh, you know, and Kevin with, you know, 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.

Curtis Philippon: I think these stories, so that'd be a great example of a non-recurring cost impact in the quarter that will be realized, that some of that was realized in the quarter. We've got stories like that happening all over the business right now. It's just I think the cost program has just elevated some of these conversations and empowered people to lean in and suggest different ways of doing things. Shout-out to Kevin Bulow. Kevin's also one of the newest members of the Town of Hardisty. Shout-out to Kevin. He's a great long-term employee of Gibson.

And drove a great conversation with our engineering team and uh, directly on that project. And we ended up saving I believe it's almost 400,000 dollars on that project and cut time out of the scope. Thanks to that, you know, I think these like these stories. So that would be a great example of a, a non-recurring uh uh cost. In fact in the in the quarter that will be realized that some of that was realized in the quarter. But we've got stories like that happening all over the business right now and it's just you know, I think the cost programs just

Elevated some of these conversations and empowered people to to to lean in and and suggest different ways of doing things.

So shout out to Kevin vulo. Kevin's also uh, 1 of the newest members of the hardest, the Town Council. So shout out to Kevin, he's a great long-term employee of Gibson.

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

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

Thanks Curtis. I'll turn it back.

1 moment for our next question.

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

Hey, good morning, guys. Um, first off on, on exports a little bit of volatility month-to-month through 3Q. Even uh, post dredging so wondering if you could um just sort of illuminate, whether that was more idiosyncratic, to Gibson or reflective of broader macro conditions. Um and and then any any insight you could give us on just like the EBA sensitivity to this volumetric volatility.

Curtis Philippon: Yeah, works out. 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 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, you don't always get it. We saw from time of dredging, so pre-dredging, we would have been in the 500,000 range per day on average on loading. Post-dredging, over the last five-ish months, 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.

Yeah. What's that? The so from a gateway gateway volumes. Super interesting. Obviously, post dredging we've seen an uptick. As we, 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. And so we saw immediate throughput increase. Not every vessel going through is a vlcc so you don't see it all the time. And and not every customer has all that inventory available every time and so that you don't always get it. Uh, but we saw from, from

Curtis Philippon: Some of that is really just our customers' programs and when they're timing. We've seen a fairly consistent volume. It's actually quite remarkable that we've been able to do the 725 on average without the Cactus connection. When we initially planned this out, we really didn't think we would get that big of an uptick until we 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. 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.

Time of dredging. So pre- dredging, we would have been in the, the 500,000 range per day on average on loading post, dredging over the last, uh, 5-ish months that it's been. We have, uh, We've averaged about 725,000 barrels a day. There is some month-to-month, uh, flexibility in that. Some of that is geopolitical there's a lot going on in the world right now. Uh, but some of that is really just our our customers programs and when they're, when they're timing. So we've seen, uh, a fairly consistent volume. It's actually quite remarkable that we've been able to do the 7:25 on average without the cactus connection that we we, 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 because it's such a challenge for the facility to keep up in our customers to keep up um, with that level of activity, with only 2/3 of the supply available to them. And so we've been doing a lot of juggling. Our customers have been extremely supportive on on working with us to find ways to get

Curtis Philippon: It has been a challenging situation to maintain sort of the high we did that 775 in August. It's been challenging to maintain quite that level without Cactus. With Cactus now completed, I expect that you're going to see customers get used to using that, and you'll see a volume uptick as we get into the early part of next year. 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. There's some sensitivity to volume throughput, but there's 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.

Volume on to other pipes to make sure that they they can take advantage of of using Gateway. But it, it has been a, a challenging situation to, to maintain sort of the, the high we did that 775 in August has been challenging to maintain that, quite that level without Cactus. Um, with cactus now completed, uh, I expect that you're going to see customers get used to do using that, and you'll, you'll see a volume uptick as we get into the early part of of next year. Um, but, you know, there is, you know, at the end of the day,

George Burwell: Okay, perfect. Understood. On marketing, I 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.

Curtis Philippon: 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. One thing, we flirted with Contango just recently. Obviously, that's a big deal. We've been very backward-dated 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. One of our large markets for drilling fluids out of the refinery is Western Canada. 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.

Okay. Perfect understood, um, on marketing. I appreciate the comments that you guys gave earlier and that, and that makes sense that the Outlook is challenged given, uh, where where the diffs are, but just curious, if there are any other, um, headwinds or or Tailwind that you see outside of kind of the, the headline diff, whether it's, uh, refining margins or I mean, if we do see crude go into contango, just like anything else out there that could potentially swing, uh, marketing, uh, 1 way or the other over the call it medium term.

Curtis Philippon: That's a nice indicator for us. The other one is just around Gateway in that we've 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 marketing business that supports Gateway throughput.

I think there there's a, there's a few things but I I caution that there. There's still early on that. If I do, they do give us optimism. That we expect to see a bit of an uptick as we get into next year, uh, you know, 1 thing. We, we flirted with contango just recently. And so, obviously, that's that's a big deal. We've been very backward dated for a long time. Uh, just recently, we flirted with kadango if that was to come back, obviously there's a, a very positive impact for our bottom line. On the refinery side of things 1 of it is actually just demand for products that uh, uh, 1 of our 1 of our large markets for Drilling Fluids. Out of the refinery is, is western Canada. And as you see, uh, a fair bit of activity around, uh, LNG, related, drilling activity in western Canada. Uh, we think there's a, a bit of a small uptick around that. And that's a, that's a good product for us. Um, so that, that's, that's a nice indicator for us. And then the other 1 is just the round Gateway and that we've in our us side of our business. We haven't really done a lot.

George Burwell: Okay, great. Thank you.

To take advantage of what our marketing team can do to help Gateway customers. And we expect that you'll, you'll see us do do more out of our us business to, uh, to grow a bit of a marketing business that supports Gateway throughput.

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

Okay, great. Thank you.

1 moment for our next question.

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

The next question comes from Robert. Hope with Scotia Bank. Go ahead, your line is open

Uh, morning everyone. Maybe keeping on the South, Texas themed, you know, with cactus entering service here immediately as well as the dredging now done. You know, where are you spending most of your time on, uh, on the files for that asset? Uh, is it on the storage side? You know, are you devoting more time to the incremental dock? Or is it all contracting?

Curtis Philippon: Yeah, on Gateway, 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. 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. You'll see a lot of work over the next couple of years as contracts come up to sort of shift over to larger MVCs versus having a variable portion on some of this throughput.

Yeah, on on Gateway. Like obviously great story this year with a couple of notable things. And so as we get into 26,

There's a certain amount of us just taking advantage of the new capabilities that we've got now, but now that we've got this dredged facility, uh, and all this connectivity, we can really move into some recontracting with customers to at larger mvcs. And that the, the original mvc's that the facility were done at an afro Max size vessel. Now that we're fully vlcc ready, um, as recontracting comes up, this will be larger Windows being contracted and you know it's nice though, we're getting paid on throughput today for that incremental volume. Uh, but, uh,

Curtis Philippon: 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 a lot, looking for additional supply. We're doing a fair bit of work out in Wink to go support sourcing additional volumes for customers. 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? 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.

Curtis Philippon: We're doing a few things around that as well to sort of unlock some of that potential for the Eagle Ford.

Where we love mvc's. We're we're Midstream. We love guaranteed revenue. And so 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, um, a variable portion on some of this throughput. So that that's, that's 1 piece. The other piece that we're seeing is just a with the large amount of activity at Gateway, that we're seeing customers really pulling for a lot, looking for additional Supply. Um, and so we're doing a fair bit of work out in, in wink to go support sourcing, additional volumes for customers. And that's, that's quite helpful as I think about getting incremental, cargos 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, uh, and then also out of the eagleford, we see some nice opportunities to provide additional legal flow, barrels, with existing customers that have a have a footprint up there, that would like to get more more of those barrels. Uh,

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

Across the dock. And so you know, we're doing doing a few things around that as well to sort of uh unlock some of that potential for the eagleford.

Curtis Philippon: Yeah, 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, but in the back of our minds about it, 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 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.

All right, thanks for that. And then maybe on wink, um, you've highlighted in 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, uh, to the company longer term?

Curtis Philippon: We think there's an opportunity to grow that a little bit as well as I think it's a good piece of business, but it 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 because you can look forward and say the Permian is right now today a fairly flat-ish production profile over the next little bit. 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 barrel out of the field.

Curtis Philippon: 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.

Has been 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. Um, we're so we're, we're seeing some good, some good activity, and profitability out of that, that wink business. We think there's an opportunity to grow that a little bit as well as we, you know, I think it's a good piece of business, but it's also nicely supports Gateway. So you'll see us leaning into that 1 a little bit more, um, and I also think just from an overall macro of the Parian, why I'm interested in that is because you can look forward. And say, the Parian is, uh, 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's a real Trend going on out there right now that the, uh, there. There's increasingly more CH quality challenged barrels that, uh, that would benefit from a terminaling solution that that wink and, and, and Gibson can provide to help them make sure that they're optimizing their quality before shipping the barrel, uh, out of the field.

Robert Hope: Thank you.

Uh and so I I think increasingly the the importance of our service uh increased a bit been saying, all that it's still a relatively small part of our business. This is, we're talking about 50,000 barrels a day of of gathering. It's a, it's a, it's a relatively small asset for us, but we've been pleased with how it's performed.

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

Stand by for our next question.

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 a 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 how do you look at things like M&A as well as any other hirings that you need to make beyond Blake?

The next question comes from Maurice, Troy with RBC Capital Markets. Go ahead. Your line is open.

Thank you and good morning. Um, 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 a crude oil theme, optimizing costs and on culture. Uh, 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 Lake?

Curtis Philippon: More and worse. 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. The team's 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 accelerate this now. There's an opportunity to accelerate our growth and some of the things that we're doing. 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 now.

More and Morris.

Curtis Philippon: I'm 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 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 going to force that. We think one of our benefits is we're of our size, that 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 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.

I think it's, it's been uh, I think a characterized the first year. Well, that we, we had a, a certain amount of work to do in the first year to get the organization focused on cost and strategically aligned, um, execute really well out in Gateway. And 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's an opportunity to accelerate our growth and some of the things that we're doing. Uh, and, 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, uh, pretty excited about what we can do with that.

Curtis Philippon: 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?

We'll, we'll see what that means for m&a. I think, you know, we've proven with Gateway that Gibson's capable of doing uh excellent m&a uh and going and integrating it well and delivering on it. Uh but we're not going to force that we you know, we think 1 of our benefits is we're of our size that we don't. Uh there's not a a need to go do m&a just to get a little bit bigger for the sake of getting bigger. We we would do m&a on crude focused assets that were true Crown. Jewel type assets that we could add to our our portfolio that nicely plugged into our into our current assets as best as possible and had the sort of contract profile and customer quality that that we're after. Um, and the and the valuation has to make sense. Um, so in in saying all that, I think it will be pretty focused on growth Capital but have an eye on on. Is there potential m&a out there? That's crude focused, that makes sense for us.

Maurice Choy: Understood. If I could just finish off on a question on the leverage and targets. Riley, I think you mentioned earlier that you're forecasting to reach your 3 to 3.5x 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'll highlight?

Curtis Philippon: Thanks, Moe. 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 first half of next year.

Understood, uh, and if I could just finish off on a question on The Leverage and targets, um, Riley. I think you mentioned earlier that your forecasting to reach your 3 to 3 and a half, gets a bit of Target by the first half of next year. Um, I think previously, there was a mention of this being early 2026, so would you view that to be consistent with your product messaging? And and if not is, it may may lead the marketing Outlook having changed a little bit between 26. So, are there other drivers that that you highlight

Uh, thanks Mo, I think as we look at our leverage and, and kind of returning to our normalization. In the first half, we would view that as consistent with our prior messaging, uh, and really the the main impact driving that downward is is realizing the benefit of all the great capital projects. We've done here in 2025 is that even? It comes online, we'll, we'll drive our leverage back down to the range that we like. So, we feel very comfortable with, with our long-term deleveraging plan, um, and we expect to achieve that in the next, uh, first half of next year,

Maurice Choy: Understood. Thank you very much.

thank you very much.

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

1 moment for our next question.

The next question comes from Benjamin fam with beimo. Go ahead, your line is open.

Benjamin Pham: Hi, thanks for the morning. I wanted to follow up on the last question and maybe just touch base on your thoughts on your current leadership team. 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.

All right, thanks, good morning. I wanted to follow up on that the last uh, question and maybe just touch base on your, your thoughts on, on the, your current, uh, leadership team. Are you, you effectively have completed. Uh, what, what you need to to place on your team. And I'm I'm also curious, uh, with the new hire, what priorities, you've you've set for him and, uh,

any potential changes in terms of

How you think about the US versus before?

Curtis Philippon: Morning, Ben. Yeah, from a team perspective, I'm pretty excited about the team we've got. I think we've got 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. We looked at the US business with the addition of Gateway as now Gibson's very relevant in the US. We've got part of bringing Blake in is, 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 recontracting and doing all those positive things. That's sort of plan A, sort of keep the car on the track. We're having a bunch of success.

Curtis Philippon: Keep that going well. The second part of that is, boy, we're relevant now. 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 can we do that could expand that growth down in the US? I think that's really what his mandate is. In saying that, we're targeting this overall infrastructure EBITDA per share growth of over 5%. I expect there'll be a nice mix of Canadian and US growth that'll be pushing for that.

Or been? Yeah, so from a, 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 we've, we've done that. We've got a team that's pretty excited. About growing Gibson over the next phase of time. Uh, and so, we're, we're excited about that in particular with Blake joining now. Uh, you know, we, we looked at the US business with the addition of Gateway is now Gibson's very relevant in the US and so you know we've got, you know you know part of bringing Blake in is like 1. Let's make sure that we're running and managing our Gateway and our wink asset very well, and continuing to drive good growth of those things and driving great recontracting and doing all those positive things. So, that's sort of plan, a sort of keep the car on the track. So we're having a bunch of success. Keep that, keep that going. Well, the second part of that is boy, we're relevant now. Like we, we're, we're actually

Exporting 1 and 5 barrels out of the US, goes through the Gibson Gateway facility, so we're a meaningful part of the energy infrastructure in the US. We've got a footprint. Now, what do we do with that and and what other incremental growth capital or other things could we do, that could expand that that growth, uh, down in the US and, um, you know, so I think that's, that's really what his mandate is. And then in saying that it's, you know, we're

Curtis Philippon: A little bit of adding Blake Hotzel 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. I think that's a little bit of how we're thinking about it.

We're targeting this overall, infrastructure Eva 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. And a little bit of adding Blake to the mix. Uh, and and his counterpart Kelly, holtby in Canada is just we Grant a nice. A nice competitive tension of a lot of projects coming to the Forefront that 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 you know, I think that's a little bit of how we're thinking about it.

Benjamin Pham: I think what ideally, not necessarily putting numbers at this point in time, that you could see long-term a nice balanced mix of sanctioning projects between both countries?

Curtis Philippon: Yeah, it's hard to predict what the mix is. 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, and so 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.

Hey I think what I do or not? Not necessary putting putting numbers at this point in time that you you could see see long term, nice balance, next substantial and projects between both countries.

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

That it's hard to predict what the mix is. Uh, I I think right now, I think it's a fair assumption that you've got to balance between both sides of the Border. Uh, when you, you know, we've got the US market is obviously much larger and so the opportunity set is tremendous, but in the other side in Canada, Gibson's got 70 years of history and just a really, uh, substantial asset base Across the Western Canadian Basin that, uh, gives us a lot of, a lot of relationships, and a lot of opportunities. So, on the Canadian side of the Border as well.

Okay, I got it and maybe a a pop question to, uh, your earlier, uh, comments to Curtis on, on the volume uptick, maybe not necessarily translating to the 1 for 1 on the ibida.

Side of things. Um, as I was wondering though is, I just simply look at your numbers infrastructure year to date uh, year to year. It's up to 2%.

And uh, understand there's some dredging impacts there, there's asset sales.

But then you got the Edmonton project and you got a big wrap-up and and Gateway.

So, is that?

I guess maybe just unpacked it. A bit of just made a disconnect between volumes and beta growth and then

Is a 15 to 20% Then is is that more sounds like it's more of a back-end.

Uh, uptick than uh, depending on on your comments in the first point.

Curtis Philippon: Yeah, I think you've got yeah, 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? 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.

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 sort of the excess over MVC numbers. That's a little bit about how I'm thinking about the volumes. The 15% to 20% marker on Gateway, we feel very good about that. That's the marker we set on acquisition day that we wanted to 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.

earnings impact other than in Gateway, where we see some throughput, um, earnings impact on the sort of the excess over MVC numbers,

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

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 assets available to us. I think you'll see a bit more of that. We'll likely be closer to the 15% in Q4. 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.

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

Um, the 15 to 20% marker on Gateway. Uh, we feel very good about that, that well, so that's the marker we set on, on acquisition day that we wanted to. 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, to, at some point in the future. We're heading that some point in the future here in Q4. Um, there will be a step up in Q4 with the just being able to realize sort of a bit more of the full benefit of having these, uh, of the assets available to us. I think you'll see a bit more of that. We'll, we'll likely be closer to the 15% uh, in Q4 and you'll see a bit more of that. Uh, as you get into into 2026 now that you've got, obviously we only have Cactus for part of the quarter here and uh, in 25

Okay, that's great. That's what I was thinking. Thanks for confirming.

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

1 moment for our next question.

Patrick Kenny: Thank you. Good morning, guys. Just on the Edmonton terminal, seeing the throughput being up nicely with TMX, 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?

Thank you. Good morning guys. Um, just on the Edmonton terminal um seeing the through foot being up nicely with TMX.

And then obviously the becks deal coming online. Just wondering if you could refresh us on um what the remaining upside story here looks like at Edmonton either from a

City or capital investment standpoint.

Curtis Philippon: Yeah, part of that. Yeah, we're pretty excited. 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 continue 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 on 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.

Mark that.

Says oh over half the volume is going up to TMX. That's that's a good story, I think.

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.

Where we think about what is the additional growth specifically in Edmonton, when we added those last 2 tanks for cenovis on 15th, we did the pre-work to get ready to build 2, more tanks as you see, volume and activity continued to increase. I think that the probability of adding, those 2 tanks just increases as well. Um, whether I think there's sort of 2 things, there's sort of is there additional TMX, the bottlenecking and growth and whether that's dredging and and 1 end uh of that uh that allows them to get additional through. But I think there's some positive indicators on, sort of volume increase that will have a good impact on Gibson but also the second part is it's still so new that I think our our customers are telling us that uh they're still finding ways to to further optimize their net back on what they're on how they're shipping on on TMX. And I think there's things we can do to to help them uh on on how they're shipping on on TMX that sort of offer some upside. And so I think that that provides a bit of a growth opportunity for us with our customers. Uh but

All saying all that, uh, I'd say this is exceeded our expectations. For how much volume we've seen on on TMX coming through the Gibson facility? And pretty excited about how that, uh, how that pipe's been operating?

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. If I'm not mistaken, that target was set a while back. I'm just wondering if based on where your market share is now, Incorporate Security, 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.

Okay, that's great. And then maybe at Gateway just coming back to, um, you mentioned, you're still comfortable with the 15 to 20% growth Target but if I'm not mistaken that that Target was set a while back and so I'm just wondering you know 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. Um as we look into next year,

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.

And just wondering if if um, your your base Outlook includes your ability to move vcc's at night or any other optimization efforts that might be in the works.

Patrick Kenny: Got it. Maybe just lastly for Riley, not to steal too much thunder from Investor Day, but just coming back to the balance sheet and 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 additional partnerships like the Baytex deal or other tucking acquisition opportunities.

Yeah, I think we'll dive into a bunch more of that at investor day Patrick I think that's I think there's an interesting additional value that you can unlock at at Gateway 1, just using the current capabilities that we've already got. But yes, as you get into uh, things like night moves of VCS and thinking about, how do you optimize that capacity? Uh, I think there's some additional levers still to be pulled uh even uh even as we get to the 15 to 20% marker. Now opportunity to exceed that as you go forward.

Got it and then uh, maybe just lastly for Riley not to steal too much Thunder from investor day. But um, just coming back to the balance sheet and, you know, I guess the plan to stay under 3 and a half times once you get there next year, uh,

Curtis Philippon: Yeah, thanks, Pat. I think when we think about those type of opportunities, we think we have ample liquidity and ample ability to access the financial markets to support our growth plan. 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 tucking acquisitions or opportunities or potential partnerships, we will be happy to execute.

Riley Hicks: Yeah, thanks, Pat. I think when we think about those type of opportunities, we think we have ample liquidity and ample ability to access the financial markets to support our growth plan. 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 tucking acquisitions or opportunities or potential partnerships, we will be happy to execute.

Curious how much dry powder you might see being available for, you know, additional partnerships like the Beex deal or other tuck-in acquisition opportunities.

To the extent that we, we find great talking and Acquisitions or opportunities or potential Partnerships. We will, we will be happy to execute

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

Curtis Philippon: Thank you.

Riley Hicks: Thank you.

Okay, that's great. Thanks guys and I'll leave you there.

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

Thank you.

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.

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 to Q3 2025 earnings call additional supplementary information is available on our website at Gibson. Energy.com for follow-up questions. Please reach out to investors relations at Gibson energy.com, thank you.

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

Thank you for your participation. In today's conference, this does conclude the program. You may now disconnect.

Q3 2025 Gibson Energy Inc Earnings Call

Request a DemoDemo

GBN

Gibson Energy

Earnings