Gibson Energy Aktie

Good morning, everyone. Welcome to the Gibson Energy Third Quarter 2026 Conference Call.

Please be advised that this call is being recorded. I would now like to turn the meeting over to Tom Hades, Manager, Capital Markets and Treasurer. Mr. Hades, please go ahead.

Thank you, and good morning, everyone. We appreciate you joining us this morning to discuss Gibson's third quarter 2026 results. Joining me today is Curtis Philippon, President and Chief Executive Officer; and Riley Hicks, Senior Vice President and Chief Financial Officer.

Before we begin, I'd like to remind listeners that today's call will include references to non-GAAP financial measures and forward-looking information, which are subject to certain assumptions and risks. Additional information, including reconciliations of these measures and related disclosures is available in our investor presentation and continuous disclosure documents on SEDAR+ as well as on our website.

With that, I'll now turn the call over to Curtis.

Thank you, Tom, and good morning, everyone. We had a great third quarter with record infrastructure and consolidated adjusted EBITDA and very strong marketing results.

I'll start, as always, with safety and execution. Safe and reliable operations are foundational to everything we do at Gibson. During the quarter, our team safely completed the operational integration of Chauvin and brought the final components of Wink-to-Gateway into service while continuing to operate reliably and deliver for our customers. As our growth program builds, maintaining that execution discipline will remain critical. Wink-to-Gateway is a good example. The project is now complete and in service. We completed the twinning of the harvest connection at Gateway earlier this year, and the new 100,000 barrel tank at Wink is now in service. Together, those investments complete the integration and debottlenecking work between the two assets. We are already seeing the expected operating benefits.

Gateway continues to deliver in a challenging export market. Historically high tanker rates and broader disruption in global crude shipping are affecting export economics and changing customer shipping patterns. Our team has worked closely with customers to remain flexible as the market has changed. That customer focus, together with Gateway's ability to accommodate a range of vessel sizes and operating requirements has allowed the terminal to continue to deliver despite the difficult backdrop. We do not expect freight rates to normalize quickly. Over time, we expect growing Permian production, improved connectivity and a more normal shipping environment to position Gateway for meaningful additional upside. More broadly, the disruption in global energy markets is reinforcing the importance of secure and reliable North American production, and Gateway helps our customers connect that supply to the world.

Turning back to Canada. Chauvin has exceeded our initial expectations. Production in the Mannville remains strong, and we are seeing potential opportunities to bring additional barrels into the system and ultimately through Hardisty. The Hardisty connection remains on track for completion in the first half of 2027. Today, we are also announcing that we have sanctioned the Chauvin expansion project. The project will increase system capacity by approximately 50% upon completion and is supported by strong commercial interest. We'll advance the expansion work through 2027. We also see potential opportunities to add producer connections and laterals over time. This is exactly what we expected Chauvin to do, extend our reach into the basin, bring more barrels into our network and create additional value at Hardisty.

The market has also demonstrated the value of our integrated platform. Strong crack spreads created attractive opportunities at Moose Jaw, while wider Canadian heavy crude differentials increased the value of the terminaling, logistics and market access services we provide across our network. Strong Canadian production, higher Venezuelan heavy crude imports into the U.S. Gulf Coast, high tanker freight rates and pressure on available pipeline capacity have combined to produce some of the widest Canadian heavy crude discounts we've seen in recent years. Those conditions create real challenges for our producer customers. Our role is to help them work through those challenges, access the best available markets and improve their netbacks. Across our Canadian and U.S. network, terminaling, logistics, pipeline connectivity and market access give customers options when markets are disrupted.

At Hardisty, our connections to crude by rail and diluent recovery services provide additional flexibility when pipelines are apportioned and differentials widen. Our marketing team works alongside those physical assets to develop practical solutions for our customers, access the best available markets and improve their netbacks. The assets create flexibility and the marketing team helps customers use it.

Looking beyond the quarter, the need for additional Canadian infrastructure is becoming increasingly clear. Production continues to grow, existing transportation systems are operating under increased pressure and industry attention is turning towards the next wave of egress. For Gibson, we do not need to predict which major pipeline moves first. All pipes are good pipes. More production and more egress create demand for gathering connectivity, terminaling and market access. With our positions at Hardisty and Edmonton, Gibson is well placed to benefit regardless of which projects proceed and when. We are already seeing that translate into increased commercial activity. A number of opportunities have advanced meaningfully since Investor Day.

There's still work to do, and every project must have the right customer support and meet our return thresholds, but the quality and scale of opportunity set continues to improve, and we expect to have more to say as those discussions progress. That growing opportunity set reinforces the targets we presented at Investor Day. We are targeting average annual infrastructure adjusted EBITDA per share growth of at least 7% through 2030. We continue to see a path to deploy up to CAD 1 billion across -- of growth capital across storage, pipeline, producer connections and new services while also getting more from the assets we already own. We will remain disciplined, but we also intend to move with urgency when the right opportunities are in front of us.

Overall, it was a great quarter. We delivered record results, completed Wink-the-Gateway, sanctioned the Chauvin expansion and continue to advance an increasingly attractive infrastructure opportunity set.

And with that, I'll turn the call over to Riley.

Thank you, Curtis. I'll begin with our third quarter results, followed by an update on our financial position and capital allocation priorities.

Starting with infrastructure, we delivered another record quarter, generating CAD 177 million of adjusted EBITDA compared with CAD 154 million in the same period last year. This represents an CAD 8 million increase over our previous record, which we set last quarter, and it reflects contributions from recent investments and the continued optimization across our existing asset base. We benefited from a full quarter of contribution from the Chauvin pipeline system alongside improved utilization across our Canadian terminals, including record volumes moved to TMX during the quarter.

What is particularly encouraging is that our performance reflects contributions from across our business. Our results demonstrate both the strength of our existing infrastructure platform and our ability to generate incremental earnings through commercial execution and optimization. Looking ahead, we expect further contributions from the Wink-to-Gateway integration project and the growth projects associated with Chauvin, alongside continued opportunities to increase utilization across our asset base. Together, these initiatives position us well for continued infrastructure growth.

Turning to our marketing business. We delivered an excellent quarter, generating CAD 35 million of adjusted EBITDA compared with CAD 7 million in the same period last year. Performance was driven primarily by exceptionally strong refining margins at Moose Jaw, reflecting the value of our product diversification efforts and the team's ability to capitalize on favorable market conditions. While margins remained elevated relative to historical levels, we recognize that these conditions will normalize over time. As a result, we have taken steps to lock in a portion of these profits by hedging some of our distillate exposure into 2027, providing greater visibility into our future earnings.

Within our crude marketing business, steep backwardation and low inventory levels continue to constrain traditional storage opportunities. However, market volatility and widening heavy differentials can create other opportunities for our team, and we have an exceptional team that remains focused on capturing value as the market evolves. At the beginning of this year, we outlined an expected range of CAD 0 to CAD 40 million for adjusted EBITDA from our marketing business. With the strong performance in the third quarter, we have already exceeded the upper end of that range on a year-to-date basis. As we look ahead, we continue to see a constructive environment for our refined products business, supported by strong crack spreads and weaker feedstock prices. However, we expect the nominal seasonal slowdown at Moose Jaw to partially offset these favorable conditions in the fourth quarter.

Taking all of these factors together, we expect marketing to deliver approximately CAD 80 million of adjusted EBITDA in 2026, in line with our historical five-year average. As Curtis highlighted, our marketing business plays an important role in helping customers navigate changing market conditions and improving their netbacks while also generating incremental cash flow for Gibson. While the current conditions will not persist indefinitely, the additional cash flow strengthens our balance sheet and provides greater flexibility to fund our growth initiatives.

Moving to costs. G&A was CAD 18 million in the quarter, including approximately CAD 2 million of project development costs. Excluding these costs, our underlying G&A was approximately CAD 16 million, reflecting our continued focus on cost reductions. As we prepare for our next phase of growth, we are focused on simplifying processes, leveraging technology and reducing complexity while continuing to invest in the capabilities needed to support a larger business. Importantly, these initiatives are about more than reducing costs. They are about creating the capacity to grow the business more efficiently and ensuring we continue to get more out of our existing operations.

Bringing this all together, we delivered record consolidated adjusted EBITDA of CAD 193 million. This was an exceptional result, supported by record infrastructure performance and the team's ability to capitalize on a particularly favorable refining environment. Distributable cash flow was CAD 120 million compared with CAD 86 million in the same period last year, representing a year-over-year increase of CAD 34 million. The strong cash flow generation supports our dividend, accelerates deleveraging and provides additional capacity to invest in attractive infrastructure growth opportunities.

And that brings me to our financial position, where we made meaningful progress during the quarter. On a consolidated net debt to adjusted EBITDA basis, we improved to 3.9x from 4.2x last quarter, while our infrastructure leverage declined to 4.2x from 4.4x. On a pro forma basis, reflecting a full 12 months of contribution from the Chauvin acquisition, our overall leverage was 3.7x, and our infrastructure-only leverage was 4x. This improvement reflects the strong performance of the business, including the incremental contribution from Chauvin and the outstanding performance in our marketing business. While we are pleased with the progress, our focus remains on returning leverage to our long-term target of 3x to 3.5x on a consolidated basis, which we expect to achieve in early 2027.

Our trailing 12-month payout ratio improved from 82% from 88% last quarter, reflecting the stronger cash flow generation. On an infrastructure-only basis, our payout ratio was 83%, comfortably below our 100% target. We exited the quarter with a strong liquidity position with our CAD 1 billion revolving credit facility fully undrawn. Taken together, our improving leverage, strong liquidity and the supportive market backdrop provide a solid financial foundation as we prepare for our next phase of growth. As Curtis highlighted earlier, we are encouraged by the growing opportunity set across our infrastructure business, particularly in Canada, where increasing production and the need for additional connectivity is creating attractive opportunities for investment.

Our priority is advancing commercially supported projects that generate attractive risk-adjusted returns and build on the competitive advantages of our existing assets. At the same time, we remain committed to protecting our investment-grade credit ratings and maintaining a strong balance sheet. As these projects advance, we will evaluate the appropriate funding strategies to support growth while preserving financial flexibility and maintaining our disciplined approach to capital allocation.

Overall, we are very pleased with the quarter. Infrastructure continues to deliver record results. Marketing is generating meaningful incremental cash flow, and we are making progress in strengthening our balance sheet. We believe this positions us well to capitalize on the growth opportunities ahead while maintaining the financial discipline that has been central to our strategy.

With that, I'll turn the call back to Curtis.

Thank you, Riley. It was a great quarter, both financially and strategically. We are safely delivering the projects we have sanctioned, getting more from the assets we already own and advancing the next set of growth opportunities. We have the assets, commercial capability and financial capacity to execute. Our focus is on converting those advantages into contracted infrastructure growth and increasing value per share.

Thank you to our team for another great quarter. And with that, I'll turn the call back to the operator for questions.

[Operator Instructions] Our first question comes from the line of Jeremy Tonet. Our next question comes from the line of Sam Burwell of Jefferies.

On the marketing, curious to get your take on like what -- how much contango in the WCS curve do you need to get short-term storage demand to drive some material upside in marketing EBITDA from that leg of the stool? My understanding is that like the implied WCS curve is pretty flat now since you are fighting against such steep WTI backwardation. Were the periods where you did really strong marketing EBITDA in, say, '23 and '24 periods where you had very steep WCS contango? Just trying to figure out how to frame that.

Yes. Thanks, Sam. It's Riley here. I think as we think about short-term storage opportunities on the heavy side, you're typically looking at two components. So you're looking at the backwardation in the WTI curve and then you're looking at the curve on the WCS. And so the math has to work. The contango on the CS curve has to outstrip the backwardation on the WTI curve or else really, there's no storage opportunities. So when you think back historically to how we made a bunch of money in the marketing on the storage side, you would have seen less backwardation in TI and then kind of strong winter to summer storage contango opportunities on the WCS front. So we're looking for those opportunities, and we think they will happen here over time. But obviously, today, they don't exist.

Okay. Understood. And then just sort of tie that to the guidance you just laid out for marketing, that implies Q4 stepping down from 3Q, and that would reflect just a moderation of the Moose Jaw performance for seasonal factors and then really no contribution from like spot storage contribution in Alberta?

Yes. I think that's exactly right. I think we continue to see strength within our refining business, but slightly less in Q4 and Q1 than in Q2 and Q3, just given the seasonality of that business. And then there'll be some opportunities on the volatility side in marketing, but we don't expect massive storage opportunities to kind of drive that side of the business.

Our next question comes from the line of Maurice Choy of RBC Capital Markets.

Just continuing with the marketing theme here. I recognize the comment about steep backwardation and the low inventory levels that limit storage opportunities. But if I could try to conservatively use the CAD 0 million to CAD 40 million of outlook that you used for the start of 2026 and assuming that, that frame applies to 2027, how should we think about the actions that you've taken so far in terms of locking in profits for distillate exposure in reference to the CAD 0 million to CAD 40 million of outlook?

Yes. Thanks, Mau. I think when you think about the CAD 0 to CAD 40 million framework that we put out at the start of the year, we were in a pretty substantially different market environment. So I think when we looked at the world back then, we saw a challenging crude environment with the backwardation that still exists today, but we also saw kind of weak crack spreads, strong heavy differentials. And so as we look at the world today, I think it's materially different, specifically on the refined product side. So I think our view for '27 is we see continued strength in that refined products business with strong crack spreads persisting. And I don't -- we have wide WCS differentials, and I don't necessarily see that changing anytime soon with the freight rates that are kind of driving that weakness. And so I think we don't give out guidance for 2027, but I think you continue to see some strength in our marketing business going into that year.

I suppose as a quick follow-up. You've touched on in the prepared remarks that for this year, you're at that five-year historical average for the segment. But you're also saying that we're not -- suggesting that we're not quite at the CAD 0 to CAD 40 million outlook for next year. So help us bridge us between a more conservative outlook being the 2026 frame versus revisiting again being in the five-year average at CAD 80 million for next year.

I think at the end of the day, I think the market is changing very rapidly. And so we're not giving out guidance for the full year 2027. But I think as we look at the next couple of quarters, we continue to see strength within our marketing business similar to what we're seeing today.

That's fine. And maybe I could just finish off with some more color on what you're seeing and hearing at Gateway. You mentioned earlier that you don't expect the high freight rates to normalize quickly. I suppose what does that do to your customer demand for service at Gateway? And alongside that, what are the pluses and minuses for the facility from higher Venezuela crude imports into the U.S.?

Hi, Mau. Gateway has had an interesting year. The freight dynamics and really just all of the crude shipping flows being disrupted in the world has caused our customers really to scramble and find different solutions for how crude will move. We've seen a real shift in the vessel mix in Gateway this year that obviously, we did all the dredging work and we did all the facility expansions to really have Gateway set up to be the ideal VLCC loading facility in the U.S. And what we've seen with these freight rates is VLCCs are at an extreme premium and there's a real shortage of them around the world.

And so as you look over 2026, the biggest thing we're seeing is that less than half of the vessels coming through Gateway this year are actually Vs. And that's not something we would have said if we look back when we did the dredging that this is really -- we expected this facility to be primarily a VLCC dock, and that's what our customers have primarily utilized it for. And so we've seen a lot more Suez and Aframax vessels going through there. And the team has done a nice job keeping busy with those vessels, but there definitely is a lost throughput opportunity when you don't have sort of the maximum efficient vessel going through there each time.

And so I've been quite pleased with how we performed despite all this volatility and customer disruption and sort of smaller vessels going through. But I do think as this normalizes, there's an interesting upside opportunity for Gateway as you look out beyond -- likely beyond 2027. I don't think these freight rates on VLCCs are going to normalize anytime soon. But as you look out a little bit further, there's obviously somewhere there's a lot of these being built right now. And I think in time, you'll see some normalization of geopolitical and you'll also see some sort of increased supply of VLCCs that we'll see sort of an increased supply of that vessel type and better throughput at Gateway as a result. So I think that's the big thing to watch. I think you'll see us continue to be nimble, work with the team in the near term -- work with customers in the near term, but watch for an uptick on volume as the vessel mix changes in time.

And then on the Venezuelan side, really, it gets more of a heavy story. And so the gateway story is really around exporting Permian light. And I don't know that you're seeing a significant story from Venezuelan crude coming in that's really directly impacting the Gateway operations today.

Our next question comes from the line of Robert Hope of Scotiabank.

I want to follow up on the South Texas discussion that you just had. So I understand that the world is volatile and there is an expectation that tanker rates do normalize at some point. But when you take a look at the duration of contracts as well as kind of the next wave of contracts that are coming due in South Texas, are you moving conversations more towards the smaller tankers? Or could you see more spot capacity there as you look for kind of VLCC dynamics to normalize there? Just want to get a sense of how you're thinking about contracting that asset on a longer-term basis.

Sure. Thanks, Rob. Really, early on in the conflict, we saw customers having a very difficult time thinking beyond sort of the prompt month. And then there was a lot of scrambling with vessel flows and figuring out what they were going to do to supply crude around the world. And so it was a difficult situation for our customers to make any sort of commitments beyond very short-term commitments earlier on in the conflict. Over the last few months, we've seen a bit of shift in that, and people are starting to realize that some of these disrupted curve flows may be the new normal, and they're looking to secure supply longer term. And so we've seen an uptick in the amount of sort of term activity, longer-term activity on re-contracting. And we don't get into commenting on the specifics of it, but I'd say there has been a notable pickup in contracting activity over the last three to six months.

Appreciate that. And then maybe going back to the commentary that you have a number of projects in the next wave that are making progress. Can you maybe add a little bit more color on kind of what buckets of opportunities you're seeing move fastest, whether that's kind of like pipeline opportunity, storage or anything else?

Sure. When we look at the opportunity set in front of us, I feel pretty good about it. We're pretty confident about the opportunity set. In the background, since Investor Day, things have advanced meaningfully, both in the customer discussion side as well as some of the detailed engineering work that Riley referenced in our G&A comments that's going on in the background to advance these projects. I'm looking forward to seeing which one gets over the finish line first. We've got some nice chunky opportunities that are in development. And what you'll see from those as we come out and announce them is they line up very nicely to what you saw us talk about at Investor Day, sort of following those same five buckets that we talked about at that time, same sort of strong customer contract backing, our focus on crude around our crown jewel assets and really meeting our return thresholds. And so looking forward to getting those announced.

Our next question comes from the line of Aaron MacNeil of TD Cowen.

Riley, I want to sort of pin down this distillate hedge comment specifically. Like what share of your exposure in 2027 would be sort of hedged? And can you, for a simpleton sort of translate that into what you've locked in from a margin perspective for next year?

Yes. Thanks, Aaron. I don't think we'll get quite into the specifics of what margins we've locked in so far. But if you think about our distillate production out of the refinery, it's just over 40% of what comes out of a refinery. About half of that is distillates that we sell into the U.S., and that's really the portion that we're able to hedge really well. And so we've done quite a bit of that piece of the business so far, and we're continuing to look at layering on more.

And then the other side of the refinery that we are looking at starting to hedge out as well is the feedstock cost. So we're happy to do up to kind of like 25%, 30% of our feedstock costs through the year just to lock in some of the profitability. So I think we see that as a very beneficial thing to our facility, ensures that we have the earnings visibility that we need to help fund our growth going forward.

Got you. And then maybe switching gears to Chauvin. You noted that it exceeded your initial expectations again, maybe some simple math here, but at acquisition, you said 7.5x in terms of the transaction multiple with line of sight to come down to 5x to 7x through sort of the optimizations and expansions. But you also mentioned that it's performing better than you expected. So what's the sort of implied transaction multiple today? And then what could it look like once all these expansions come through?

We love that asset. The Chauvin assets come in, performed exceptionally well. We've got a great team out there. So on announcement date, we talked about a 7.5x build multiple, talked about adding the Hardisty connection. And now we're adding on the Chauvin expansion project that project is effectively a CAD 20 million capital project with a sub-5x build multiple. You put sort of all the optimization work, the Hardisty connection and just -- and the expansion work together and the multiple on this acquisition starts to get sub-7x and sort of in the 6x to 7x range.

Our next question comes from the line of Robert Catellier of CIBC Capital Markets.

Just a couple of quick questions here. We started to hear about crude by rail perking up in the industry again. I'm curious to gauge your ability and interest to participate in any potential crude-by-rail projects, whether they're associated with a DRU or otherwise?

We're very happy to work with our partner on that. So Strathcona owns the rail terminal adjacent to our Hardisty facility. We work very closely with them on that, and they've been quite vocal on driving a rail strategy. And as you look forward, I think that's part of the solution for egress and finding new markets for Canadian crude, and we look forward to working with them on that strategy.

Okay. And then with the increase in the marketing outlook here, both this year and potentially going forward for a little bit, I wonder what -- clearly, you're interested in capital projects or organic projects there. But where does the incremental dollar go before those projects materialize, is there an opportunity to repurchase shares? Or are you continuing to work on reducing the leverage? And then related to that, you've had some success here with the Chauvin acquisition. I wondered if there's an opportunity or an appetite to further the acquisition strategy.

Yes. Thanks, Rob. So maybe I'll start with the incremental dollar and our capital allocation philosophy. So I think as we sit today, we're seeing nice deleveraging in our balance sheet. We think we'll be nicely back within our range kind of early 2027. But as Curtis mentioned, we're also seeing a nice wave of growth projects. So we're really preparing to deploy capital into infrastructure growth. And so you won't see us buy back shares anytime soon given the growth that we think we have coming. So maybe I'll start there with that one.

And then turning to kind of the second part of the comment on M&A strategy. Chauvin has been a great deal. We love assets like that, that tie into our facilities, create more competitive moat and more structural advantage at our crown jewel assets. So we're always looking for assets like that. We have seen the market kind of get a little bit frothy on pricing on the acquisition side. So we're also going to remain disciplined. So we're out looking. We're always hunting, but it's going to be at disciplined levels. And I think we have a great organic growth backlog coming, that's going to be the priority for the next little bit.

Our next question comes from the line of Benjamin Pham of BMO.

Maybe to start off on the infrastructure EBITDA reached a record result of CAD 177 million of EBITDA. You mentioned the Chauvin contribution, higher throughput and optimization. Can you comment maybe on your existing assets? Just how much room there is for upside potential when you think about the utilization of your existing assets and how that compares to your new growth projects that are getting added through 2028?

It has been one of our success stories for '26 has been just being able to drive some additional utilization through the current assets. And so in 2026, we talked about going from an average utilization across all the platforms of around 85% and pushing that to over 90% by the end of the year. And we've nicely seen that play out that we'd be today over 90% utilized across the facilities. And on top of that, seeing a nice push around some of our optimization and cost reduction activities and really all driving towards about what we expected that we talked a lot about our growth strategy being a 5% and 2% strategy, 5% driven by organic growth projects and 2% driving additional efficiencies out of the current base business. And we're nicely delivering on that 2% and 2% plus on some of the optimization and utilization activities we've been doing this year.

Okay. Got it. And maybe just related to that, as you think about your December upcoming budget and clearly, the organic growth that has been exceeding expectations, including Chauvin, that 7% plus growth rate, do you think you're in a position into the budget or maybe some point to '27 to warrant updating that number?

We're pretty focused on that. The guidance we gave at Investor Day is focused on delivering over 7% growth, infrastructure per share between over to 2030 is -- that's the North Star for us that we're focused on backfilling and growing. 2026 was more focused on some of these -- with the Chauvin acquisition and some of these smaller projects we've been chipping along at and driving some of these optimizations. And as you get into the next year, you'll see some of the more -- the chunkier growth projects that drive towards that. But at this point, we're not raising the 7% plus.

Okay. Got it. And just a quick cleanup for me on the marketing side of things. You've also mentioned, I believe, by 2030, you would reach CAD 80 million of EBITDA annually. And clearly, you probably reach that this year. But outside of just the crack spreads we've seen in this environment we're seeing today, is there anything else that was driving that bridge through 2030?

I think as we look at our marketing business, we recognize that it's a volatile business that has the ability to generate outsized earnings. So I think we've always been convinced that our marketing business would continue to generate that over time. Our last five years, we've averaged kind of CAD 80 million. And so that -- our expectation is that over the next five, we'll average CAD 80 million as well. It's just going to be probably a little bit disparate in terms of -- some years, we'll probably make CAD 60 million and some years, we'll probably make CAD 100 million, right? And so I think as we think about our marketing business, we think it's going to continue to deliver value for us over time.

Our next question comes from the line of Patrick Kenny of NBF.

Just on the Pacific Link pipeline, I know it's still a ways away from being sanctioned, let alone coming online. But perhaps you could speak to how you might be positioned to participate alongside the project, whether it would be adding tankage in and around Edmonton or perhaps leveraging your export terminal expertise on the West Coast with the existing proponents?

We're excited to see that progress. I think the one maybe I'd comment on the overall backdrop, the positivity and the momentum you see in Western Canada right now is really encouraging. And there's growing optimism that we'll be able to get some of these major projects completed, including the Pacific Link pipeline. So that gets us excited about supporting our customers and how can we do that and how can we participate in some way. Obviously, we've built the lion's share of terminaling capacity in Western Canada over the last number of years and would expect that we'd find a way to participate in that in some way as well. And you're good to flag that we do have some export expertise. And so what's being proposed on the Pacific Link pipeline for an export dock is effectively a match for what we currently operate today in Gateway, sort of a two VLCC dock setup that looks remarkably a lot like what we do in Ingleside. So we have expertise around this. We look forward in finding a way to work and help and support that project.

Okay. And then there's been some further consolidation activity recently from your Canadian upstream customers. So just curious what that can mean for either your throughput outlook, contracting dynamics or even potential expansions at either Hardisty or Edmonton as they look to integrate their acquired production?

I think it's sort of a trend that we've seen in the industry over the last number of years. So no real surprise in that and seen large, well-capitalized companies. I think that trend is going to continue, and I think it's going to help support the production growth that we expect to see in Western Canada. So I think that's a trend that we expect. I think it will be positive for more throughput through our terminals. It's likely shifted our strategy a bit more that we've really focused on how do we partner with these large customers and work closely and offer a broad solution across terminaling, marketing and just in general, how do we find a way to help our customers find a better netback solution for the barrel. And it's all the more important, I would say, today as the customer base gets more consolidated that you're partnering very closely with those key customers.

This concludes the question-and-answer session. I would now like to turn it back to Tom Hades for closing remarks.

Thank you for joining us today. As a reminder, supplemental materials are available on our website. If you have any additional questions, please contact our Investor Relations team. Thank you, and have a great day.

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

Good morning, everyone. Welcome to the Gibson Energy Second Quarter 2026 Conference Call. Please be advised that this call is being recorded.

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

Thank you, and good morning, everyone. We appreciate you joining us today to discuss Gibson's second quarter 2026 results. Joining me are Curtis Philippon, our President and Chief Executive Officer; and Riley Hicks, our Senior Vice President and Chief Financial Officer. Other members of our senior leadership team are also with us and will be available during the Q&A should any additional questions come up.

Before we begin, I'd like to remind listeners that today's call will include references to non-GAAP financial measures and forward-looking information, which are subject to certain assumptions and risks. Additional information, including reconciliations of these measures and related disclosures are available in our investor presentation and our continuous disclosure documents on SEDAR+ as well as on our website.

With that, Curtis, over to you.

Thank you, Beth, and good morning, everyone. We appreciate you joining us today as we review Gibson's second quarter 2026 results. This was a significant quarter for Gibson, and I would like to begin by recognizing our team. Their hard work, disciplined execution and commitment made these results possible. Most importantly, we achieved a notable safety milestone in the quarter, surpassing 1 full year without a recordable injury, inclusive of both employees and contractors. This milestone reflects the strength of our safety culture, the experience and commitment of our teams, the quality of our program and the relentless focus on continuous improvement across the organization.

Turning to the quarter, I'd like to start with the macro backdrop because it has changed meaningfully over the past several months. Looking at the environment today, I see a more constructive backdrop for North American energy infrastructure than even a quarter ago. While this created opportunities which benefited our second quarter results, what gives me the greatest confidence is the long-term opportunity it creates for Gibson. The strategic importance of secure, reliable North American energy has never been more clear. Gibson is well positioned to support our customers with our infrastructure strategically located at critical hubs across the global energy supply chain.

In Canada, recent market access announcements and pipeline developments have created positive momentum for the energy infrastructure sector. This reinforces our long-term growth strategy and has already accelerated commercial discussions with our customers. Historically, every new barrel of pipeline egress has required approximately 4 barrels of storage capacity. Over the past decade, Gibson has developed a significant share of the new merchant crude oil storage in Canada. Today, approximately half of TMX heavy crude volumes move through our Edmonton terminal, underscoring the scale and relevance of our platform. With strategic terminals and land positions in Hardisty, Edmonton and Bruderheim, along with our customer relationships and operating expertise, Gibson is very well positioned to support our customers' evolving infrastructure needs.

The broader market backdrop is also shaping our U.S. business, where geopolitical uncertainty has continued to drive commodity volatility, elevated freight rates, shifting global trade flows and constrained vessel availability, all of which have had temporary impacts on gateway volumes. Following a softer first quarter, market conditions strengthened meaningfully in the second quarter, and we have now set year-to-date volume records at the terminal. Looking ahead, we are monitoring freight rates, vessel availability and commodity volatility closely. Our commercial team is continuing to work with customers to ensure we can meet their needs and capture opportunities together as market conditions remain volatile.

Against this backdrop, Gibson continued to advance our growth strategy and delivered a strong second quarter. We achieved a new record for infrastructure adjusted EBITDA, had our strongest marketing quarter since the second quarter of 2024 and nearly set a new record for overall adjusted EBITDA. The marketing performance was notable in the quarter. The team did an outstanding job capitalizing on opportunities created by crude volatility. Also, the investments we made last year to expand our refined products capability and diversify our customer base are also delivering results in today's stronger crack spread environment. Year-to-date marketing has contributed $18 million of adjusted EBITDA, and it is trending towards the upper end of the $40 million full year range we provided at our Investor Day.

Turning to infrastructure growth. We closed our acquisition of the Chauvin Pipeline system on May 1. This pipeline extends our core position at Hardisty and adds stable contracted cash flows underpinned by long-term agreements with Teine Energy. Since closing, we have started work on the Hardisty Connection project, which will directly connect the Chauvin assets into our core Hardisty terminal, providing customers with improved access to market. We continue to expect this project to be completed in the first half of 2027. We are also advancing the next phase of growth at Chauvin. Engineering work is underway on the planned expansion project to increase effective capacity by 50% from 30,000 barrels per day to 45,000 barrels per day, and we remain on track towards a final investment decision by year-end.

In the U.S., the Wink-to-Gateway integration project is on track to be placed in service by the end of the third quarter. The first phase of the pipeline twinning work is complete, enhancing our ability to move supply concurrently from the Eagle Ford and Permian Basins into Gateway. These growth projects enhance our connectivity, improve network efficiency and support additional capital deployment around our core assets with the objective of delivering sustainable long-term value and attractive per share growth for shareholders.

With that, I've covered our safety milestone, the macro environment, marketing performance and the continued execution of our infrastructure growth strategy. I'll now turn the call over to Riley. He'll walk you through our second quarter financial results and balance sheet, which continue to provide financial strength and flexibility to support the strategy I've outlined today.

Thank you, Curtis. As Curtis highlighted, we delivered a strong second quarter, supported by the continued strength of our infrastructure business, improved marketing performance and disciplined execution across the organization. This quarter demonstrated the strength of our infrastructure business and the benefits of the strategy that we continue to execute. Our infrastructure business delivered a record $169 million of adjusted EBITDA in the second quarter, a $17 million increase from the second quarter of 2025 and $9 million higher than the previous record set in the fourth quarter of 2025.

What stands out to me isn't simply the record EBITDA, but where it came from. We saw stronger utilization across the network, contribution from our newly acquired Chauvin asset and the continued benefits from optimization initiatives, reflected in an increase of approximately 8 million barrels of throughput across our portfolio as compared to the same period last year. Together, these results reinforce our confidence in the quality of our infrastructure business, supported by increasingly resilient cash flows and a stronger long-term growth profile.

In addition to the record infrastructure results, what impressed me this quarter was how quickly the marketing team responded when opportunities emerged. Their execution helped deliver adjusted EBITDA of $15 million in the second quarter compared with $8 million in the second quarter of 2025. More important than the earnings themselves is what they tell us about the business. These results demonstrate that the investments that we've made in people, technology and commercial capabilities are translating into better execution. This quarter's performance was largely driven by our refined products business with strong crack spreads driving increased margins on our distillate sales, offset by slightly weaker-than-expected asphalt demand.

From a capital investment standpoint, operational enhancements that were placed into service during our 2025 turnaround enhanced our product diversity while supporting stronger commercial execution and improved margins on our asphalt sales. Our investments in technology have helped us streamline processes, supporting faster real-time decision-making, enabling our people to respond quickly as opportunities arise.

From a cost perspective, the second quarter G&A expense of $16 million was below the previous guidance of $17 million to $18 million, benefiting from the implementation of certain onetime cost savings initiatives. I am very encouraged by the progress we're making to structurally improve our cost base. Our organizational restructuring and broader efficiency initiatives are simplifying our business, improving decision-making and creating operating leverage that will support long-term earnings growth. We continue to expect these initiatives to deliver approximately $10 million of sustainable annualized savings in 2027.

Perhaps the most important takeaway from our quarterly results is the strength of our overall performance. On a consolidated basis, adjusted EBITDA of $169 million was in line with our previous quarterly record and represented a substantial increase of $22 million from the same period last year, underscoring the momentum we are seeing across our business. Distributable cash flow of $96 million in the quarter, an increase of $15 million compared to the second quarter of 2025 was supported by record infrastructure EBITDA and partially offset by higher financing costs and current income taxes.

These strong financial results reflect the disciplined approach to capital allocation and balance sheet management that we've maintained over many years. This focus was recently reinforced by the reaffirmation of our investment-grade credit ratings and stable outlooks by both DBRS and S&P. This reflects the strength of our financial profile and the confidence in our long-term strategy. Maintaining investment-grade credit metrics is a core financial principle as it ensures we have the financial flexibility and access to markets we need to pursue high-quality infrastructure growth opportunities.

Looking ahead, we expect leverage to return to our long-term target range of 3 to 3.5x in early 2027. At quarter end, our reported net debt to adjusted EBITDA ratio was 4.2x, while infrastructure leverage was 4.4x. To put this in perspective, when considering a full 12 months of contribution from the Chauvin acquisition, our overall leverage was 3.9x and our infrastructure-only leverage was 4.1x. These metrics are within rating agency thresholds, and we are well capitalized and positioned to meet our customers' growing needs.

Looking at our dividend payout ratio, we exited the quarter with a sustainable payout ratio of 88%. This was temporarily elevated due to the impact of the shares issued to fund our Chauvin acquisition not yet being offset by a full 12 months of trailing cash flow contribution. On an infrastructure-only basis, our payout ratio was 83%, well below our target of 100%. This reinforces our confidence in both our financial position and our long-term dividend philosophy.

Since our last call, we further strengthened our financial position and enhanced our financial flexibility by extending our $1 billion revolving credit facility to June 2031. We also issued $400 million of senior unsecured notes, improving our liquidity position. Collectively, these actions reinforce the strength of Gibson's balance sheet. We were able to complete a strategic acquisition, refinance our debt on attractive terms and continue to support our dividend, all while preserving the financial flexibility and investment-grade credit profile that will allow us to fund our long-term growth plans.

With that, I'll turn the call back to Curtis to bring it all together.

Thank you, Riley. To close, we are pleased with our performance during the second quarter. And year-to-date, we remain on track with our plan. Our team's ability to execute in a dynamic market environment is impressive. We delivered record infrastructure results, capitalized on opportunities in marketing, successfully closed the Chauvin acquisition, advanced key infrastructure growth projects and maintained our industry-leading safety performance. The progress we have made this year reinforces our confidence in the long-term strategy and the financial objectives we outlined at Investor Day. We remain focused on executing that plan and creating sustainable value for our shareholders. I'd like to thank the Gibson team for their continued commitment to safe and reliable operations. And I'd also like to thank our shareholders for their continued support.

Before I wrap up, maybe one last shout out. 2 weekends ago, there was a tour of Alberta for cancer that Gibson was proud to be a Northern Light sponsor for that event. And it's a great event in Alberta that raised over $12.5 million for cancer research. It was quite an impressive event. Gibson was proud to be one of the top 5 fundraising groups in that event. We had over 45 riders participating. Riley and myself included, we're suffering along with everybody. And we raised -- the Gibson team alone raised over $410,000, I believe the highest amount of fundraising raise per rider for any team in the ride. It's just a spectacular event, a great success story for Cancer Research and just quite impressive to see what the team did. So thank you to everybody who participated.

With that, I'll turn the call back to the operator to open the line for questions.

Thank you, Curtis. [Operator Instructions] Our first question comes from Aaron MacNeil with TD Cowen.

Curtis, you mentioned a meaningful change in the macro backdrop in your prepared remarks and highlighted the potential for new tankage. New tanks were among the handful of different growth opportunities that you outlined at the Investor Day. Has incremental tankage become the highest likelihood growth opportunity in your view? Or are you also seeing opportunities across those sort of other buckets like producer partnerships, pipelines, DRU expansions as well as optimization? And has your view changed in terms of your goal to deploy $1 billion of growth capital over the next 5 years? Or does recent momentum just improve the visibility for you to reach that goal?

Thanks, Aaron. When I look across that -- those buckets we outlined of over $1 billion of growth capital that we see in front of us, the tank side, obviously, there's some direct implications for more pipeline egress requiring additional tankage. That looks very promising, and we're not quite ready to predict that we're going to be increasing what we projected in that page, but that looks much more probable and feeling very confident on that.

But I'd also note that just in general, excellent egress out of the basin drives all types of growth. And as our customers grow and activity increases, it really enhances every one of these buckets with perhaps the exception of the DRU. But on all the other buckets, pipelines, in particular, there's all kinds of opportunities as producers are increasing their production that they need additional infrastructure solutions to get their barrels to market and tanks are part of that. But pipes and producer partnerships and various optimization projects we can do, all will be necessary to feed the type of production growth you're going to see out of Western Canada. And as I said, the one that perhaps takes a bit of a backseat is the DRU side of things. And I think we've seen discussions quiet on that until you see some more clarity on some of these pipeline egress options.

That's a great segue into my next question. And this one is a bit of an oddball question. So apologies if it doesn't apply, but access to condensate is emerging as a potential impediment to crude oil production growth in Canada. Obviously, the DRU prevents condensate from being exported. But have you looked at how you might participate in helping facilitate incremental condensate imports? And if so, what would that look like?

I think you hit on the one that's very much an actionable thing for us. The DRU can play a role in keeping condensate in Alberta, and there's a role for that to sort of play an increasing role over the next number of years. Beyond that, I wouldn't comment quite yet. It's -- I made one comment in my notes in the script that we've seen an acceleration of commercial discussions with customers. And whether it's condensate or additional crude infrastructure requirements, we've seen a lot more interest from our customers on all these fronts.

Our next call comes from Robert Hope with Scotiabank.

Maybe moving south of the border or South Texas, so how have moving pricing diffs, tanker rates as well as the availability of ships impacted contracting discussions at South Texas? Is it -- are you seeing strong demand there, but having your customers actually sign longer-term contracts is a bit more challenging just given the dynamics there? Can you maybe just walk us through kind of the near and medium-term dynamics?

I think that's a good shout out. We're -- the crude export market is a volatile place right now. I don't think it's a surprise for anybody. And there's all these factors are playing into, all of our customers seeing their supply chains regularly disrupted and plans they thought they had one day are changing the next. And so in this volatile market, we've been more focused on the near term with our customers. It's difficult for customers to be making long-term commitments and decisions in this type of volatile market.

Where I've been really pleased with our team is that this sort of chaotic environment creates an opportunity for us to really grow some new relationships with customers. And we saw over the last quarter that we added 5 new customers on short-term opportunities into Gateway and actually delivered volume on to ships for those customers. That's a really big deal for us that we've probably -- in our history, there hasn't been much more than a dozen customers that have come through Gateway. And so to have 5 new customers, including some super majors experiencing Gateway and the team and the quality of that assets and being able to help them out as they're facing a jam in sort of this chaotic market is -- I think will pay dividends in time. But right now today, I think it's a fair comment to say that people are just seeing so much volatility that it's difficult for them to make long-term decisions in the near term.

All right. I appreciate that. And then maybe just as a follow-up to one of your prior answers. So in your prepared remarks, you mentioned that you are seeing accelerated commercial discussions for new infrastructure. Can we maybe -- or can I ask in what specific areas are you seeing the most incremental demand? And could we see some project announcements by year-end?

Yes. So as I just mentioned, I think we've seen good activity on all fronts with perhaps the DRU being the one in the back burner right now, but we've seen good discussions on all other types of projects with customers. The most likely thing you'll hear us talking about for an FID between now and the end of the year is the work around the Chauvin pipeline. Now we've got good expansion work that's being engineered right now, and we expect that we'll FID that before the end of the year. And we've also got a number of different projects that we're working on with customers to extend additional laterals off the Chauvin pipeline that we're working through some of that. But I think the one I'd watch for FID this year would be the expansion work.

Our next question comes from -- I'm sorry, our next question comes from Maurice Choy. Maurice is with RBC Capital Markets.

Maybe I want to continue our discussion into the capital allocation side of things. It sounds like there's a lot of opportunities, yet you are on a deleveraging journey, at least through to early 2027 when you get back into your debt-to-EBITDA range. If I take the assumption that many of these opportunities are coming at you faster now than before, any early thoughts as to how you reconfigure, how you allocate your distributable cash flows and how you raise funds?

Thanks, Mo. I think when we think about capital allocation, we're very comfortable with where our balance sheet is, and we're very comfortable with what our capital allocation priorities are. So I would say, there's no material change to how we approach funding our business. As we look out over the growth profile of the business, we think we can continue to fund it through distributable cash flow and a mix of debt and stay within our target leverage range. As these projects come to service and as market conditions change, we'll always evaluate other financing alternatives to see what makes the most sense for our shareholders. But as we stand today, there's no change to our capital allocation priorities.

And just finishing up on marketing. Clearly, the performance is better than you had expected when you provided guidance to us at the last conference call. Can you break down a little bit more as to what transpired? I know you mentioned topics about refined products and crack spreads in your prepared remarks. And whether or not you see some of these trends continuing and maybe even outperforming the new guidance that you gave us today about being upper end of the $40 million range?

I think the story of the quarter on marketing is really a refined product story. And you saw over the quarter that crack spreads just continued to be strong and get stronger to just some outstanding levels. And so that was sort of one part of the story. And then the second part of the story was really on what the mix was out of the Moose Jaw facility. We had a really nice success story over this quarter, and we expect that will continue in particular in next quarter on that sort of continued strong mix. We made some changes back at our turnaround last year and did some work with a customer -- with a couple of customers to expand our ability to provide some different products to them. And that's proved out to be a great move. And we're seeing strong demand out of those customers and also some improved margins out of being able to provide that product mix. And so that, combined with the improved crack spread market, really drove stronger than what we initially anticipated for the quarter, and I think you'll see that continue to progress into Q3.

Our next question comes from Sam Burwell with Jefferies.

You've alluded several times to the volatility in exports, which I think we can all understand. But just looking back a little bit, can you provide us just some kind of commentary as to how exports progressed from May to June and then into July? And then any expectations you could share for the rest of the quarter or at least as far out as you have any reasonable visibility?

It is a volatile market. So I'd love to be able to say I can tell you exactly what crude exports look like out of the U.S. for the remainder of the year, but it is definitely changing on a daily basis on what customers are doing with their crude, what vessels are available, what path vessels need to take around the world to get to markets. So all those things are playing into just what vessels are available coming in and that's having some volume impacts.

We think Q3 looks similar to Q2 from a volume perspective, but that's what it is from a contracting perspective, and it's really up to our customers on whether the vessels arrive and we actually load those vessels. So our actual volumes are still to be determined, whether we're sort of above or below what we saw for Q2. But from a contracted and what we've got sort of locked in, we expect that we're going to be at a similar range to Q2 and Q3.

Okay, great. And then on the corporate expense, it's a small difference, but still like showing improvement, this is obviously a good thing. So is $16 million a quarter the right number to assume until we get to that sustained $10 million annualized savings in 2027? Or are we still thinking about the $17 million to $18 million of corporate drag per quarter?

Yes. Thanks, Sam. I think right now, we're still 17% to 18% per quarter for the rest of the year, and you'll see us continue to be laser-focused on trying to bring that down with savings initiatives. But I would point you back to the business and some of the investments we're making that are dragging on our G&A, we're seeing those returns within our business. And specifically, I'd point to the marketing group where we've spent quite a bit of money on technology to improve processes, and it's truly having an impact on the EBITDA in that sector. So despite G&A being higher, we are seeing the positive impacts throughout the business. And then we're going to continue to be laser-focused on bringing our costs down and driving that sustainable cost savings.

Our next call comes from Patrick Kenny with National Bank Capital Markets.

Maybe just back on the potential for new tankage at Edmonton and Hardisty and that 4:1 historical storage to production ratio. Just wondering if maybe customers are now thinking about the benefits of having excess storage capacity in terms of helping to keep differentials relatively tight as well as having more optionality with respect to moving spot barrels westbound versus southbound, depending on where the best netback might be. So just wondering if these dynamics might be pushing up industry demand more towards, say, a 5:1 or 6:1 ratio for that next wave of storage and how you might be able to capitalize on that trend at either Edmonton or Hardisty?

Yes. I think as you look at what is the good rule of thumb to use, I think when you also add in the fact that West Coast pipe is going to the water. And just by the nature of going to the water, you're going to require probably more than that 4:1 ratio on tankage to supply that sort of pipeline. So I think there's some good arguments on why the tankage build-out could be larger as these projects progress. But I'd say we're still really early. We're sort of early stage of pipes getting announced, and we still need FIDs to see how all this progresses. But what we have seen early on is some increasing activity.

There's definitely more calls on tanks than we've had at any time in the last 2 years since I've been here. We've seen some good activity on contracting up some spare capacity over the last few months as people are trying to get ahead of that. And we've been cautious on that to sort of keep that relatively short term in nature as we see how this all shapes up. But it's been a good environment for tanks getting locked up in recent months. I would also say, though, that we still -- when you look across North America, tanks are effectively at bottoms, and you still got a very backwardated market. And so there's still -- I think there's still not quite a rush on tanks in that environment. But let's see how this plays out over the next few years.

Yes. And you mentioned tanks being effectively at bottoms there, especially PADD 2 and Cushing. I guess, just wondering if this could open up some new location-based opportunities for the marketing team in the back half of the year. And then also, I guess, looking back at Investor Day, the top end of your $40 million guidance, crack spreads weren't anywhere near where they are today. So just wondering if you might have any sensitivities you could provide to the upside should crack spreads and again storage levels remain where they are over the next, say, 6 to 9 months?

Yes. Thanks, Pat. It's Riley here. I think when we think about the forecast being at the upper end of the $0 million to $40 million range, it really reflects the seasonality of our refined products business. So we would agree that the refined products crack spreads are strong, and we would expect Q3 to remain strong. But as we get into Q4, you'll see the impact of seasonality on that business. And in this backwardated market, we're seeing kind of less opportunities for our crude marketing team. So we still think that $0 million to $40 million range is the right range, just the higher end of it.

And in terms of some of the questions around additional location and time-based opportunities down in Cushing or PADD 2, we're always evaluating those opportunities. We're ready to take advantage of them when they exist. We're going to do that within our risk profile. But we are -- we have a team that's ready to execute, and we're confident that they will if that opportunity arises.

And sorry, last one, if I could. Riley, you just started to build out your U.S. marketing initiatives. So appreciating it might still be early days, but just given this constructive backdrop, wondering if you've been able to accelerate and perhaps start to capture any new marketing opportunities south of the border?

We're pretty happy about what our U.S. marketing team has been able to do, relatively early days with that team getting built out. I think the most meaningful thing that you're seeing that team doing right now is really helping in this volatile market to provide additional liquidity and additional access to barrels for our customers at Gateway. And you saw that volume number increase fairly substantially in Q2. And a lot of that in the background is actually very good work by our U.S. marketing team to help source barrels for customers in this sort of volatile market and maybe not directly driving EBITDA with those activities through the marketing group, but absolutely playing a big role in supporting the infrastructure side of the business.

[Operator Instructions] Our next question comes from Benjamin Pham from BMO.

I can appreciate you have the EBITDA infrastructure growth guidance somewhat locked up for this year, and it looks like based on math next year as well, you have potential sanction of a project late this year. How are you thinking then about the 2028 delivery of guidance? Do you think it's more organic driven or you need tuck-in an acquisition here and there?

Yes, I think as you get into '28, what gets really interesting is you start seeing more of these pipe projects becoming more reality, and I think you're getting closer to the time where people are actually building out tankage and doing things like that. So definitely, we would view that this is an organic path to go achieve what we laid out at Investor Day that there's good organic growth projects that will come. And if anything, I think you're going to see more of those growth capital projects starting to get deployed in a bigger way as you get into that '28 time period.

And on top of that, I think it's a good call on the acquisition side of things. So not required to go achieve that over 7% infrastructure growth rate. But as we saw with Chauvin, we're out there hunting for good opportunities to go bolt on around the Gibson base. And we think there's other ones out there. We'll see how that plays out. But I think the team has done a good job in integrating that asset and already driving some good returns out of that. We're going to keep looking for other things like that, that we can keep on bolting on to this crown jewel set of assets.

Got it. And on your balance sheet, the reference is around early next year normalization. Is that in a situation where you can continue to add organic growth, hit your growth guidance, still get that balance sheet down? Or is it more of that target could potentially move forward as you add more CapEx to your budget?

I think as we think about getting our leverage back down to range, if we continue to have strong marketing quarters, it will come down very quickly. And then as we look at our growth profile, we factored in into that estimate of coming down in early 2027, we factored in the growth that we see coming forward. So we're quite confident we're going to bring that down in early 2027.

I got it. And maybe the last one, a couple of questions on the tankage position. You're strategically well positioned to benefit as the egress potentially comes on. Can you maybe talk about -- is it better for you to see more egress benefiting your tanks? Or is it better for production to exceed egress and differentials widen, if that makes sense to you?

In general, we're an infrastructure company. So we love it when it's sort of a healthy environment for our customers that there's lots of egress for our customers to grow production into and healthy growing customers drives great infrastructure projects. That's sort of -- that's plan A. That's -- as this moves out, that's the sort of best case scenario for our customers and ultimately drives the most infrastructure growth for Gibson.

But it is a good call out. Like as you go look at the amount of growth that will happen in Canada over the next number of years and all these various pipe projects and all this production coming online, it will create a challenge for people to time that perfectly. And when does that production come online versus when does that pipe come into service. And inevitably, that will create situations where we have inefficiencies that create a stronger need for more terminaling capacity to help create buffers in that system and will ultimately also create interesting opportunities for our marketing group in some of those inefficient moments as you have these inevitable mismatches between timing, between production and egress coming online.

And our final question today comes from Robert Catellier with CIBC Capital Markets.

I just wanted to follow-up on the tank question again. There's no doubt that more tanks will be required over time as the egress develops. But a lot of those options are sort of longer dated. So what I'd like for you to address or you sort of touched on it in the last answer, but the tension between renewals when there's ample storage and tanks are near their bottoms versus the need to develop more over longer term. So can you walk us through that?

I'm just curious if you see any air pockets maybe where there's perhaps less demand in the short term and maybe pressures rates or renewals? And then compare that to what you're seeing in terms of what you said, I think earlier was accelerating demand. Just sort of walk us -- give us the glide path you see from here on storage before things really pick up and the egress options hit the market.

Sure, Rob. When you look at the Canadian business right now, already, outside of all these recent egress announcements, already, if you look at oil sands producers, it's a positive market right now. There's a lot of very good capital projects that are already in flight and that production is coming online. So we're seeing increased throughput already through our facilities. We're seeing more production that's sort of on the cusp of coming, all of those things will drive more competitive tension in the terminals. But I'd still say, we're at tank bottoms, a backwardated market. So it's still early on that, but it has been quite noteworthy the amount of tank inbounds and some of the sort of contracting off we've been able to do on spare capacity in sort of the recent months.

As you see sort of the -- I think producers and ourselves see that there's more volume coming and people need to have tanks to land that in and help get that to market. So we're seeing an increasing amount of competitive tension over the quarter already, and I expect that will continue to play out. But when we look at the timing of that production coming online versus pipes coming online over the next couple of years, we see that tension growing in Canada.

Okay. That's helpful. And then does that tension -- is that leading to any customer willingness to sign longer duration agreements?

Well, you saw a pretty significant announcement from us back at Investor Day with a very long-term significant re-up of contracting in our Edmonton facility, and we did a couple of other sort of 10-year type deals around that. I don't think there was no accident behind that. Those are some good long-term customers that know the basin very well that saw some of this coming and wanted to make sure they secured their position ahead of some of this additional tension coming into the market. And so I think you're seeing some of that. But -- and then on the other side, I would say, to a certain extent, the volatility that we're seeing on the crude export business in the U.S., you're also seeing some of that in Canada. There's just -- there's a lot of volatility in the market right now, and that's causing I think boardrooms around all over the place to be a little bit cautious on how long term they're committing before they see things settle down a little bit.

Okay. That makes sense. Last one for me. I noticed, as is your custom, you amended and extended the credit facility. Can you let us know if there's any material changes in terms of the amendments to the credit facility?

Yes. Thanks, Rob. Yes, there was no material changes at all to the amendment. So we just -- we did that as a standard, like you said, and nothing new.

Thank you. This concludes the question-and-answer session. I would now like to turn it back to Ms. Pollock for closing remarks.

Thank you, and thank you for joining us today. Supplemental materials are available on our website at gibsonenergy.com. If you have any additional questions, please contact our Investor Relations team. Have a great day.

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

Okay. We're going to start early. Good morning, and welcome to the Annual Shareholder Meeting of Gibson Energy. My name is Jim Estey, and I am the Chairman of Gibson Board. And in accordance with the bylaws of the company, I will act as chair of the meeting. Given the importance of safety within Gibson, and our culture, we will start today this meeting with a safety moment from Nathalie Wyman. That will be followed by a land acknowledgment from Tara Hingley and an introduction of the directors and officers who have joined us today. Following completion of these preliminary matters, we will then move into the formal part of the meeting during which you, our shareholders or duly appointed proxyholders will vote on the 3 matters set forth in the management information circular.

Finally, our President and CEO, Curtis Philippon, will provide a company update, which will be followed by question-and-answer period, which you, shareholders and proxyholders are invited to ask questions of the directors and the executive management. At the conclusion of our program, the directors and officers and senior management will be available in the room to answer further questions you may have. I will now call on Nathalie to provide a safety moment.

Thank you, Mr. Chair. As we begin today, I would like to take a moment to acknowledge that Canadian Mental Health Week began yesterday and continues until Sunday, May 10. This year, Mental Health Week recognizes the role we all play in supporting mental health through connection. At Gibson, Mission Zero is about protecting our people, our environment and our assets and that starts with looking out for one another. Sometimes the most important thing we can do is pause, check in with a colleague and make space for honest conversation. We may not always know what someone is carrying, but listening, showing compassion and encouraging support can make a meaningful difference. Mental health challenges can affect any one of us at any time and reaching out for help should always be a sign of strength. As we go through today's meeting and in the work we do every day, let's remember that taking care of yourselves and each other is part of what it means to work safely. Thank you.

Thank you very much. I will ask now Tara to provide a land acknowledgment.

Thank you, Mr. Chair. In the spirit of respect, reciprocity and truth, we honor and acknowledge the Moh'kinsstis and the traditional Treaty 7 territory and oral practices of the Blackfoot Confederacy, Siksika, Kainai, Piikani, as well as the Îyâxe Stoney Nakoda and Tsuut’'ina Nations, we acknowledge that this territory is home to the Métis Nation of Alberta Districts 4, 5 and 6 within the historical Northwest Métis homeland. We also acknowledge all nations who live work and play on this land and who honor and celebrate this territory. Finally, we acknowledge that our work spans across many lands where the histories, cultures and traditions of indigenous peoples are embedded across North America. We recognize the land and water and benefits it provides all of us and are grateful for generations passed. The traditional knowledge, keepers and elders who are here with us today and future generations who will continue to inspire and share their homeland with us. Thank you.

Thank you very much. It is a privilege to be here on behalf of the Board to reflect on Gibson's history, performance and future. Gibson's history spans more than 70 years. It is a success story built on resilience, discipline and consistent value creation. From our early beginnings, Gibson has grown into a trusted infrastructure partner with an energy value chain anchored in safety, operational excellence and strong customer relations. The long history is reflected in the important milestones across our business. Later this month, our Moose Jaw facility will celebrate 95 years in operation. That is a remarkable milestone that speaks to the longetivity of our assets, the important role it continues to play and the many people who have contributed to its success. Over its history, Gibson has successfully evolved from a traditional energy provider into a diversified infrastructure platform with high-quality long-life assets.

That evolution has involved strategic portfolio decisions, including streamlining our focus through divestments of NGL and the trucking businesses, targeted capital projects such as our DRU and Hardisty, terminal expansion in Edmonton and Hardisty and the acquisitions of Moose Jaw and Gateway Terminal in 2023 and of course, the recent Shaunavon pipeline which closed last Friday. Each of these strategic decisions have diversified and strengthened our business while still maintaining a strategic liquid focus and have positioned Gibson as a key player in the critical energy corridor in North America. At the same time, our focus on managing costs, allocating capital responsibly has delivered strong returns for investors including shareholder returns over the last 10 years of approximately 240% from 2016 to today, driven by both share price appreciation and the value created through dividends.

Gibson's ability to adopt through multiple commodity cycles while maintaining financial strength has been a defining characteristics of the organization. And that track record matters. It reflects a disciplined approach to strategy and capital allocation, and it gives us confidence in our ability to create long-term value. None of this success would be possible without our people. The Board recognizes that Gibson's culture of safety, accountability and performance has enabled us to execute reliably and build long-term partnerships. This is exemplified by the recent milestone of safety loading 1 billion barrels at our Gateway facility since start-up in 2020. An achievement that not only speaks to our operational excellence, but to our commitment of our teams to ensure everyone gets home safely at the end of the day. Gibson's standing as a top performer, safety performer among North American midstream companies is something we're extremely proud of.

And it reflects the professionalism, dedication and leadership of our employees across the organization. We also believe that Gibson's success is strengthened by the ownership mindset of employees, with over 95% of our employees being shareholders, our people are directly invested in long-term performance of the company. This reinforces a culture where our employees think like owners, driving sustainable value for all stakeholders. That same ownership culture is reflected in the way Gibson employees' continue to give back to the communities where we work, live and play. In 2025, Gibson saw a 95% participation rate in our community giving program across our locations, a level of engagement that continues to distinguish Gibson and speaks to the commitment of our people to make a positive impact beyond our operations. Thank you to all Gibson employees who volunteer, donate and support community initiatives throughout the year. On behalf of the Board, I also want to note the importance of fostering diverse and an inclusive organization.

We are proud of the diversity reflected on our Board and across our workforce. At the same time, we recognize that senior management diversity remains a significant gap and an area where more work is needed. Diverse leadership brings broader perspective, strengthens decision-making and supports better long-term outcomes. It is an important focus of the Board as part of our oversight of leadership development and succession. We are proud of Gibson's 70-year plus history. We are equally focused on what comes next. The energy landscape is evolving, and Gibson is well positioned to play a critical role in that transformation.

We see the future defined by principal, by disciplined growth, expanded infrastructure opportunities and continued leadership in reliability and safety. With a strong foundation, a clear strategy and the right team, Gibson is well positioned to continue connecting customers to markets and employees to a rewarding career operating safely, responsibly and creating long-term value for shareholders. Prior to commencing the formal business of the meeting, I would like to welcome Riley Hicks, Senior Vice President, Chief Financial Officer, to introduce the other members of the Board who are present with us today and standing for election.

Thank you, Mr. Chair. I am pleased to introduce the remaining members of the Board who are standing for election today. I would ask each of you to stand quickly as I say your name. Doug Bloom, Judy Cotte, Heidi Dutton, Maria Hooper, Diane Kazarian, Peggy Montana, Khalid Muslih, Craig Richardson and our President and Chief Executive Officer, Curtis Philippon. I would like to thank our directors for their continued service, stewardship and support of Gibson. Biographical information for each director nominee, together with committee memberships and other background information is set out in our management information circular. In addition to our directors, we have the following members of our executive management team with us today. Dave Goss, Senior Vice President and Chief Operating Officer; and Kelly Holtby, Senior Vice President of Commercial Development Canada. Thank you.

Thank you, Riley. We will now proceed with the formal business of the meeting. To deal with the formal portion of the meeting as effectively as a possible, we have prearranged designated shareholders to move and second motions. This is no way intended to discourage any comments, questions on any motion. Only registered shareholders who have held their shares in their name as of the 18th of March 2026, the record date of this meeting or their duly appointed proxyholders are entitled to vote on resolutions presented in this meeting. Should any registered shareholder or duly appointed proxyholder present in person at this meeting wish to speak on the matter, please raise your hand, and a member of our team will bring you a mic. For those shareholders or duly appointed proxyholders who have joined us online, questions and comments can also be submitted electronically on the Lumi platform by following the instructions on the platform.

Unless your comments or questions relate to specific motions being considered at the time. Please hold your comments until the question-and-answer period following the formal portion of the meeting. The Annual General Meeting of the shareholders of Gibson Energy Inc. will now come to order. I appoint Jon Ozirny, Vice President, Legal and General Counsel to act as Secretary. I also appoint Nazim Nathoo of Odyssey Trust Company to act as scrutineer. I have received a declaration prepared by Odyssey indicating that the notice of the meeting, information circular, and the form of proxy were mailed and delivered to shareholders as of record March 23, 2026. With consent, reading of the notice of meeting will be dispensed with. Mr. Ozirny is requested to keep a copy of the notice of the meeting and Odyssey's declaration with the minutes.

The scrutineers have provided me with the attendance report for the meeting. and I declare the requisite quorum of shareholders is present. Mr. Ozirny will keep the scrutineers' report with the minutes. I now declare that the meeting be properly called to order and is duly constituted for the transaction of business. Voting will be conducted by electronic ballot for registered shareholders or duly appointed proxyholders attending the meeting virtually. Paper ballots were provided for all matters of those attending the meeting in person. Voting will be open for all resolutions at the same time, which will allow you to choose to vote for each resolution immediately, or wait until the conclusion of discussion on each resolution prior to casting your vote. For those who have not voted yet, simply click for, against or withhold, as applicable on your Lumi device, if you're attending virtually.

You will see confirmation immediately above the voting buttons once you have submitted your choice. For those attending the meeting in person, if you did not return your completed ballots to the registration table, please raise your hand after the final item of business has been read. The scootineers will then collect the ballots. There will be an opportunity to ask questions on each resolution in turn. Once discussion on all items of business has concluded, voting will be closed on all resolutions. The results will be tallied by the scrutineer once voting is completed and will be provided at the end of the formal portion of the meeting. The polls are now open on all resolutions. I'd like to tell you it gets more interesting, but it doesn't. But I've said this before, I really like that -- to be called Chairman, and I'm going to give you my children's phone number and you could encourage them to address me in that manner.

The first item of business is the presentation of the audited financial statements for the year ended December 31, 2025 and 2024, together with the auditor's report hereon. Shareholders will not be asked to approve the financial statements table. However, Riley Hicks will be available to answer any questions concerning financial statements you may have during the question-and-answer period following the formal portion of the meeting. In addition, there are extra copies of the financial statements available to shareholders upon request or on our website or SEDAR. The next item of business is the election of director nominees as set forth in the company's management information circular being James Estey, Douglas Bloom, Judy Cotte, Heidi Dutton, Maria Hooper, Diane Kazarian, Margaret Montana, I got you this year, Khalid Muslih, Craig Richardson and Curtis Philippon.

The company bylaws concern -- contain advanced notice provisions that require advanced notice to the company of any other director nominees. And since no notice was received, the nominations for directors is now closed. May I please have a motion on the election of directors.

My name is Colin Gair, Senior Supervisor of Maintenance based in Moose Jaw, Saskatchewan. I've been a Gibson shareholder for 11 years. Over the past year, the team at Moose Jaw contributed to strengthening Gibson's safety culture by supporting the successful and safe execution of the turnaround at our Moose Jaw facility completed with 0 injuries. This included 23,800 contractor hours, 146 orientations, 663 permits and 313 work orders. Mr. Chair, I nominate each of the individuals you have listed, and I move that each nominee be elected as a Director of Gibson Energy to serve until the next annual meeting of the shareholders or until their successors are duly elected or appointed.

Thank you very much, and congratulations on your accomplishments. May I please have a seconder for the motion?

Mr. Chair, I second the motion.

Thank you very much. The motion is now open for discussion. Jon, are there any questions.

There are no questions.

Thank you, Jon. If there are no questions, you may cast your vote at this time if you've not already done so.

[Voting]

The next item of business is the appointment of the auditors for the ensuing year. May I please have a motion for the appointment of the auditors.

My name is Cody Johnson, Senior Operations Supervisor based in Hardisty, Alberta, and I've been a Gibson shareholder for 14 years. This past year, the Hardisty team supported Gibson's commitment to safety by leading the turnaround at the DRU, delivering the project with 0 injuries. The turnaround was completed ahead of schedule and under budget over a 25-day execution period, with a peak workforce of 148 people on site and more than 27,000 combined hours worked, all with 0 recordable or lost-time injuries. Mr. Chair, I move the PricewaterhouseCoopers LLP chartered professional accountants, be appointed auditors of the company until the next Annual General Meeting of the shareholders or until their successors are appointed and that the remuneration as such be fixed by the Board of Directors.

Thank you, Cody. So 14 years means Cody bought the stock in the IPO,- and to steal the Bank of Nova Scotia's saying, "You're richer than you think." Is there anybody from the Bank of Nova Scotia in here? Thank you. May I please have a seconder for the motion.

Mr. Chair, I second the motion.

You've got a tough part, [indiscernible].

I know.

How long did it take you to learn your line. Thank you. The motion is now open for discussion and questions. Jon, any questions?

There are no questions.

Thank you. If there are no questions, you may cast your vote at this time if you've not already done so.

[Voting]

The final item of business today is the advisory vote on the company's approach to executive compensation which is described in detail in the company's information circular. As this is an advisory vote, the results may -- the results will not be binding upon the Board of Directors. May I please have a motion for this advisory.

My name is Darcy Smith, the Operations Specialist based in Edmonton, Alberta. I've been a Gibson shareholder for 11 years. This past year, Gibson's commitment to safety was supported through the Edmonton industrial ergonomics initiative using AI to improve railcar loading practices and help achieve 0 railcar loading recordable injuries. Mr. Chair, I move that the shareholders accept the approach to executive compensation disclosed in the Management Information Circular delivered in advance of the 2026 Annual Meeting of Shareholders.

Thank you. May I please have a seconder.

Mr. Chair, I second the motion.

That's 3 times. Thank you. This motion is open for discussion and questions. Jon, any questions?

There are no questions.

Thank you. If there are no further questions, you may now cast your vote at this time if you've not already done so.

[Voting]

Now that all scheduled matters have been voted upon, we will pause for a moment while the results are tabulated. I have been advised -- it's a small moment. I have been advised by the scrutineers that the results are more than 50% in favor of the nomination of each incumbent in director. Therefore, and in accordance with the legal requirements and our majority voting policy, I declare those nominated to be duly elected directors. I have also been advised by the scrutineers that all other motions presented today have been carried by a majority of shareholders. That concludes the formal portion of the meeting, and I direct that the scrutineers' report be kept by Mr. Ozirny with the minutes of the meeting. I will now ask for a motion that the formal portion of the meeting be terminated.

My name is Chris Garcia, terminal operator at the Gateway Terminal in Ingleside, Texas. I've been a Gibson shareholder for 2 years. This past year, I've supported Gibson's commitment to safety through successful and safe execution of gateways, dock upgrades, dredging activities and the Cactus II pipeline tie-in. These projects strengthen Gateway's export capabilities by improving marine loading, efficiency, enabling larger vessel volumes, reducing customer shipping time and costs and expanding access to additional crude supply for export. Mr. Chair, I move that this meeting be terminated.

So a little history. This is Chris' first time in Canada. And we'd take you to a hockey game Chris, but they don't seem to be playing hockey here right now. And we were thinking about what we would get you for your -- as a present for your first gift (sic) [ trip ] to Canada and the BeaverTails shop was closed, and I know you don't know what that is, but you'll Google and find out. But I want you to step forward because we have a little gift for you. Maple syrup.

Thank you, sir.

And I want to thank the -- I second the motion individual who went out and bought it yesterday, that was more difficult than your line. All right, once more. May I have a seconder?

Mr. Chair, I second the motion.

Thank you. Carried. I declare the meeting terminated and thank you, our shareholders, for participating in today's meeting. Before I turn the meeting over to Curtis, I would like to take a moment to recognize Gibson's industry-leading safety performance and the continued commitment of our people to Mission Zero. Please join me in a round of applause to thank everyone across Gibson for their outstanding work and dedication to keeping one another safe. I'd now like to turn the meeting over to Curtis Philippon, our President and CEO. After Curtis' presentation, the Board and management will be happy to answer questions. At that time, if you have any questions, please raise your hand. And once the acknowledgment, a team member will bring you the mic. If you joined us online, you may submit your questions through the Lumi portal. And one of Gibson's representatives will ask the question on your behalf. Curtis?

Thanks, Jim. Well, I couldn't be prouder of the safety culture, the safety program and the performance across the organization. And just thank you to everybody that took the time to travel here today to share a few of the snippets. There's so many great stories around the company that drive the industry-leading safety performance that we're also proud to be a part of. So thank you very much. Maybe one more round of applause for that. I'm also incredibly proud of the ownership mindset that Jim talked about. And you see it around the room, everybody online can't see it, but we've got a packed house standing room only here. We've also got rooms all across Gibson right now that are tuned in, watching the AGM. And there's a difference here that we have over 95% of employees that are shareholders of the company, it drives a different level of care, a different level of performance that it really is a differentiator for us, and it's just fantastic to see it firsthand, and I fully believe it drives a different level of performance in our results. So thank you very much for that.

Our strategy at Gibson is fairly straightforward. We're crude focused, we're built around these crown jewel crude infrastructure assets and those assets couldn't be more important today. As the world is facing an energy crisis and our assets and our customers are playing a key role in delivering energy to the world to meet that need. And we're going to see that need in the near term and in the long term using a disciplined approach to our business and with these assets and with this team, we're able to drive a very compelling story for shareholders. And we're going to drive a very compelling return story for shareholders. We talk about that we invest with the expectation that we drive an over 100% return for shareholders over the next 5 years. And at the -- at our Investor Day back in December, we spent a fair bit of time walking through what is that strategy? How do we go about delivering on that compelling rate of total return for shareholders. And a key part of it is around driving a growth strategy that drives over -- an over 7% infrastructure EBITDA per share growth rate over the next 5 years.

And we do that from a couple of different angles. We do it from driving through some excellent growth capital projects over these 5 different verticals you see on the left-hand side of the screen, but we also drive it through driving additional optimization through our current assets. And so we talked about sort of driving 5% from projects, another 2% from just driving increasing efficiencies through our business and it's a key strategy for us to go drive this overall 7% plus growth rate. And as you get into the last few months, since this Investor Day, I couldn't be more pleased with the progress that the team has made on advancing those strategies. So number one, from a people perspective, we spent a lot of time over the last few months and over the last year, making sure we've got the right team embedded in different locations. We have the right people to go drive the growth in the seats around the company. We've also made sure that, that team is very goal-oriented. I'm sure everybody in this room here, their employees know that we've spent a lot of time embedding a very goal focused culture into the company.

We've directly linked at the compensation to make sure people are very clear on what success looks like, and we've got good, aligned execution, really advancing the organization. We've also spent some time doing some difficult work to make sure that we've got the team set up to be as lean as possible. We need to be lean and customer-focused in order to win. And we've done some difficult things over the last few months to make sure we've got the organization set up to be that customer-focused, lean organization. Secondly, we've advanced the Wink the Gateway project. And so we announced back in December, the Wink, the Gateway integration project.

This project is a project where we add -- we're adding additional tank capacity in Wink and we're adding additional -- doing some work at Gateway to twin the harvest line coming into the facility to remove bottlenecks. And so the project is really all about driving additional supply to gateway customers. And I got to tell you, back in December, when we sanctioned this project, it was a strong project. Today in this export market and when everybody's just craving as much volume is absolutely possible, that -- this project has become critical. And we're quite pleased to say that it's advancing well on track to be in place for the back half of the year. And lastly, big news this week. It was a milestone week for us. On May 1, we officially closed the $400 million Shaunavon acquisition. We couldn't be happier to welcome that team into the organization, and there is a tremendous amount of work to get it to this point.

And so I'll just thank you to a number of people in this room, there's been a lot of work making sure we had seamless process to integrate that asset in, and we couldn't be more excited to be welcoming 12 new employees from the Shaunavon team into the Gibson organization and we're quite excited to start talking with customers now that we officially have the asset under Gibson control. I'll start with a couple of shots on the end here. So this is a live picture from May 1. This is from on-site with our new Shaunavon team officially kicking off operations. So quite excited to be now have our hands on that and get the work on a number of capital projects and talking with customers. And this really extends the Hardisty platform for us, which is a key part of our business and also gives us a real runway for future growth projects. So very excited to have that one in-house now.

Second big shout-out that I'll end on is something Jim called out. It's a notable milestone that on March 6, we officially loaded our 1 billionth-barrel in Gateway, just a staggering number when you step back and think about it, just from 1 billion barrels loaded since 2020 when the facility started and it continues to be just such a critical part of the overall energy story in the world. And it's great that Gibson has got a front row seat to that as we sit here today and we see everything that's going on in the world, I fully expect that we're going to be breaking a number of new records out of Gateway over the next coming months as export volumes continue to rise out of Corpus Christi. So congratulations to the Gateway team and Chris is representing I'm here today. So thank you very much. I think I'll pause there, and I think I have an obligatory note, I need to say that I will -- do I need to pause for advisory statement there? Or do we pause for questions or as -- I'll now open the meeting for any questions. And as we do this, we'll pause on the advisory statement before we conclude.

If you can read that you've got great eyesight. You're in the wrong job if you can read that.

Is there any questions online?

No.

Well, thank you all for attending the 2026 Gibson Energy Annual Meeting, and please have a safe rest of your day. Thank you.

Good morning, everyone, and welcome to the Gibson Energy First Quarter 2026 Conference Call. Please be advised that this call is being recorded. I would now like to turn the meeting over to Beth Pollock, Vice President, Capital Markets and Corporate Development. Ms. Pollock, please go ahead.

Thank you, and good morning, everyone. Thank you for joining us to discuss Gibson Energy's First Quarter 2026 results. Joining me on the call today are Curtis Philippon, President and Chief Executive Officer; and Riley Hicks, Senior Vice President and Chief Financial Officer. Additional members of our senior management team are also present to assist with the question-and-answer portion of the call. Listeners are reminded that today's call will reference non-GAAP financial measures and forward-looking information, which are subject to certain assumptions and risks. Descriptions and reconciliations of these measures as well as related disclosures are available in our investor presentation and continuous disclosure documents on SEDAR+ and on our website.

I will now turn the call over to Curtis.

Thank you, Beth, and good morning, everyone. I'm pleased to be here today to discuss Gibson's first quarter 2026 results. Before getting into the quarter, I want to start with something that we are proud of at Gibson. This quarter, we reached a major milestone at our Gateway Terminal, safely loading our 1 billionth barrel. This achievement speaks volumes about the strength of our operations team, the trust of our customers and most importantly, the commitment of our people to safety and execution excellence every single day.

Turning to the quarter. The macro environment was certainly eventful. We've all been reminded of the important role North America plays in supplying the world with reliable energy. Gibson's crown jewel assets are a critical part of this energy supply chain. Geopolitical developments created some headwinds. Unpredictable and chaotic markets make it challenging for customers to make long-term commitments. Shipping availability and market uncertainty temporarily disrupted exports from Gateway customers and negatively impacted Infrastructure results in the first quarter. This export disruption was a temporary trend that we are now seeing reversing in the second quarter. Gateway volumes have increased, and we expect to be setting new volume records, including pushing close to 1 million barrels per day in the back half of the second quarter.

In December, we outlined our strategy at the Investor Day. Central to that strategy was a growth plan to achieve an over 7% infrastructure EBITDA per share growth rate through the deployment of capital across 5 different verticals and unlocking capital-free upside through the increased optimization of the business. The team has made impressive progress advancing this strategy. A few of the most meaningful steps we have taken were on people, progressing the Wink-to-Gateway project and closing the Chauvin acquisition.

First, on people, we are continuing to build out our U.S. commercial and marketing team, including adding Andrew Morales in our Houston office to lead our U.S. marketing business. This investment expands our capabilities and has been instrumental in sourcing incremental supply and enabling volume for our customers at Gateway. During the quarter, we took an important step forward towards achieving the 2% capital-free upside target we outlined at Investor Day with the completion of an organizational restructuring, which reduced our headcount by 10% and will drive annual gross cost savings of approximately $10 million in 2027. The changes increased the customer focus of our teams, reduced overhead and reinforced our high-performance culture.

The leaner organization now has both the customer focus and cost competitiveness necessary to win. Secondly, the Wink-to-Gateway growth capital projects that were sanctioned at Investor Day are tracking well. These projects involve adding additional tank capacity at the Wink Terminal and twinning a pipeline connection at Gateway. The basis for these projects is sourcing additional supply and removing bottlenecks to deliver more volume to Gateway customers. These were strong projects when they were sanctioned. And now in this crude export market, they are even more valuable.

And finally, in Hardisty, the successful closing of the $400 million Chauvin acquisition is a milestone moment for Gibson. The acquisition includes a crude oil pipeline and associated infrastructure assets that connect Chauvin to the Hardisty oil hub, increasing our reach into the growing Mannville Stack area, supported by long-term agreements, the assets add stable contracted cash flows and provide a clear runway for additional optimization and growth capital deployments.

Concurrent with closing, we sanctioned the Hardisty Connection Project. We have also started engineering work on a pipeline expansion project, which will increase effective capacity from 30,000 to 45,000 barrels per day. We anticipate sanctioning this expansion later this year. We expect to begin realizing the benefits from the acquisition in the second quarter. The integration work has gone smoothly, and we are excited to welcome Chuck Krahn's Chauvin operations team to Gibson.

And with that, I'll turn the call over to Riley.

Thank you, Curtis. I'll begin with a review of our first quarter financial results, followed by an update on our financial position and capital allocation priorities. We remain focused on disciplined financial management, maintaining the strength of our balance sheet and executing in accordance with our financial principles. In the first quarter, Infrastructure delivered approximately $156 million of adjusted EBITDA, a slight increase over the same period in 2025. We benefited from a full quarter of contribution from the Baytex partnership. However, as Curtis noted, this was largely offset by macro conditions and their impacts on crude exports at Gateway.

While export volumes were strong in January and February, they declined in March, driven by elevated freight rates and shifting global trade flows, which temporarily reduced competitiveness from the U.S. Gulf Coast. Despite these near-term headwinds, we remain confident in our 7% plus growth strategy through 2030 as well as our 2026 infrastructure outlook of 5% EBITDA per share growth that we outlined at our Investor Day, which is supported in part by our recent acquisition.

Turning to Marketing. The business continued to face a challenging operating environment during the quarter. A steeply backwardated futures curve where prompt crude barrels are priced at a premium to future delivery reduced the economic incentive for storage, while the seasonality of our asphalt business limited the performance of our refined products group. As a result, Marketing generated approximately $3 million of adjusted EBITDA, representing a $2.5 million increase compared to the first quarter of last year.

Looking ahead, quarterly results in the Marketing segment are expected to be in line with previously communicated guidance given the current volatility of the commodity markets. We continue to remain confident in the fundamentals of the business and focus on delivering long-term consistent performance. On a consolidated basis, Gibson generated adjusted EBITDA of approximately $139 million during the quarter, a slight decrease from the prior year. In addition to the impacts from the Infrastructure and Marketing businesses discussed earlier, consolidated EBITDA was affected by higher G&A, which we expect to normalize over time as projects come online.

A significant portion of the increase in G&A relates to targeted investments in technology and people, including upfront spending on automation and AI initiatives that are expected to drive savings over time. For example, we are currently implementing a new system that will automate thousands of marketing transactions per month, improving efficiency and accuracy. In addition to this, we continue to progress the migration of the majority of our IT platforms to cloud-based systems with associated costs now reflected in G&A under the rules of IFRS. From a people perspective, we made targeted additions across our commercial, marketing and finance teams to support the continued growth and execution of the business.

And finally, and to a lesser extent, the restructuring resulted in some changes to cost allocations. As an example, we consolidated our corporate and operational accounting groups into a single team, enabling us to do more with fewer resources and at a lower overall cost to the company. While these changes create some near-term noise, the G&A was forecast and considered when we provided our guidance at Investor Day in December. We remain confident in our 5% infrastructure EBITDA per share growth outlook for 2026, and we also expect our consolidated EBITDA per share growth for 2026 to be 5% or greater.

Distributable cash flow for the quarter was approximately $74 million, representing a $17 million decrease compared to the first quarter of 2025. This was primarily driven due to lower EBITDA and higher spending on replacement capital, interest and cash taxes as compared to the same period last year. Turning now to our financial position and capital allocation priorities. We continue to remain committed to our financial principles, maintaining a strong balance sheet, ensuring our growth capital is fully funded and supporting a sustainable dividend backed by stable long-term take-or-pay cash flows.

We continue to take a disciplined approach to capital allocation, focusing on high-quality infrastructure investments that drive long-term shareholder value as reflected by our strategic acquisition of the Chauvin assets. Importantly, both S&P and DBRS reaffirmed our stable investment-grade credit ratings following the announcement of this transaction. At the end of the first quarter, net debt to adjusted EBITDA was approximately 3.8x, representing a decrease from 3.9x at year-end. And on an infrastructure-only basis, leverage of 3.9x remains below our target of less than 4x.

Our dividend payout ratio was approximately 90% on a trailing 12-month basis, primarily driven by lower EBITDA and distributable cash flow mentioned earlier as well as the increased share count following the equity offering ahead of realizing the associated cash flow benefits from our acquisition. We expect the payout ratio to remain elevated until 12 months of trailing cash flow from the acquisition is reflected. Over the long term, we continue to target a sustainable payout range of 70% to 80% of distributable cash flow.

On an infrastructure-only basis, the payout ratio was 83%, comfortably below our target of less than 100%. As the Infrastructure segment continues to grow as a proportion of our earnings, we expect consolidated payout ratios to trend back towards our long-term target range.

I will now turn the call back to Curtis for his closing remarks.

Thank you, Riley. To close, the first quarter reflected both the strength of our underlying business and the impact of a more volatile macro environment, particularly at Gateway. Despite that, our Infrastructure platform continues to perform well, supported by high-quality assets and long-term contracted cash flows. We're making solid progress against our strategic priorities. Safety performance remains best-in-class. We continue to drive increased utilization across our system, and we are advancing key growth initiatives, including the Chauvin acquisition and our Wink-to-Gateway Integration project. At the same time, we are building for the future, advancing our technology and AI capabilities while continuing to strengthen our high-performance customer-focused culture.

Looking ahead, we remain confident in our long-term outlook. While the current environment has introduced volatility, it has also reinforced the importance of secure, reliable energy supply, an area where Gibson is well positioned. Our assets, particularly Gateway, play a critical role in connecting North American barrels to global markets, and we have demonstrated our ability to adapt and capture value as conditions evolve. Our teams have responded well in a dynamic environment, leveraging our integrated platform to manage risk and capture opportunities across the value chain. With a strong balance sheet, disciplined capital allocation and a clear strategy, Gibson is well positioned to deliver continued infrastructure-led growth and long-term value for our shareholders.

And with that, I'll turn the call back to the operator to open the line for questions.

At this time, we will conduct the question-and-answer session. [Operator Instructions] Our first question comes from the line of Jeremy Tonet of JPMorgan.

This is Eli Johnson on for Jeremy. Just wanted to start on the export trends at Gateway. It looks like U.S. exports are at record highs. So can you just describe some of the upside for Gibson to capitalize beyond contracted levels? Any sensitivities or color on export upside would be helpful.

Eli, we're seeing that firsthand. As exports are increasing, Ingleside is exceptionally busy. I was down in Corpus a couple of weeks ago, and you can visually see the increased traffic that's coming to the U.S. right now and the increasing number of VLCCs that you're seeing transiting in the area. So it's quite impressive to see. We're feeling that uptick right now at our facility. As I mentioned, we expect that we'll be pushing 1 million barrels a day of throughput as you get into May and June. So new records for Gateway, quite significant. It's notable for what that means for our customers. The one thing I would temper a little bit on that there is a nice upside as you get some upside on that activity, but there is also a little bit on who's shipping the volume has an impact.

And so typically, our customers are paying for an MVC, a guaranteed window of volume. And what you're seeing right now is virtually all customers are fully utilizing their MVCs. And so you're seeing very good volumes. But on some of that incremental volumes, that's just customers using their contracted volumes. And so there's not an incremental revenue associated with it. So we expect you'll see sort of normalization and a slight uptick from what you saw in Q1, but you shouldn't expect a sort of a dramatic uptick in Gateway as you get into Q2.

Got it. That's helpful. And then maybe switching over to Marketing. I know you provided some color for the outlook to remain consistent with prior guidance. But just thinking about what would need to kind of change to see structural improvement in that business? Is it just the deeply backwardated curves normalizing? Or what else could we see that would lead to improvement in that business?

On Marketing, it's -- you're exactly right. It's the backwardated nature of the market is where you see still some limited opportunity. And in Western Canada, you still have a very efficient egress situation. And so some of those apportionment type plays are not there right now. And so we continue to do well in volatile markets, and our marketing teams do a good job of that. And also, as you look at sort of the refining crack spreads, you see some uptick in our Moose Jaw facility. But I would say it's still fairly incremental for us. So we're seeing some upside out of these things, but we still expect that our guidance of sort of 0 to 10 a quarter is still the right way to be thinking about it.

Our next question comes from the line of Robert Hope of Scotiabank.

Maybe turning over to the higher corporate costs that we saw in the quarter. How should we think about these trending through the year and to what magnitude? I do appreciate the commentary that in the prepared remarks that they will normalize. And then also, just want to confirm that the higher corporate costs as well as the $10 million of incremental savings were part of the longer-term guidance presented at the Investor Day?

Yes. Thanks, Rob. We can confirm that those were part of the presentation at Investor Day and our longer-term guidance. And then in terms of where we sit on corporate costs going forward for 2026, we would expect to be in the $17 million to $18 million range per quarter as we continue to work through some of these projects. We would expect to see the benefit of those projects in 2027 and beyond. But I would note that there's the opportunity for us to continue to evaluate solid IT automation and cyber projects going forward that we might invest capital in as well.

All right. Appreciate that. And then maybe moving back over to Gateway. Just changes in the geopolitical dynamics there, does that have you rethinking longer-term expansion plans at the facility as well as -- can you remind us kind of how you would look to expand that facility?

So when we think about Gateway right now, we're pushing 1 million barrels a day. You've got very high utilization of the facility. I would point towards the Wink-to-Gateway Integration project is something that we'll do that will drive some additional volume and help us debottleneck in particular, the Eagle Ford supply coming to that facility. So those are some nice incremental growth that we'll see as those come online in the back half of the year.

Some of the larger scale projects we've talked about sort of longer term sort of plus 5 years out on the dock expansion. I think those are still really interesting projects. I think as the world needs U.S. crude, the Permian is a prolific play that will drive additional barrels to export over time. And I believe that Ingleside is the most cost competitive way to go export barrels. And I believe that Gibson has got the most capital-efficient way to add additional export capacity in Ingleside.

So I think that still looks very good, but I still put it in the 5-year-plus territory, Rob, because you still fundamentally need to see production uptick a bit more in the -- you need to see production uptick in the Permian. You need to see pipes expanding from the Permian to Corpus or you need to see other supply coming into the Corpus market to drive additional barrels because right now, you still have very good capacity at our terminal and our neighbor's terminal in Ingleside. So we're able to sort of effectively keep up with the current amount of Corpus pipe capacity with the current docks that are in place.

Our next question comes from Aaron MacNeil of TD Cowen.

Maybe big picture, just given that we've got a lot of potential brownfield expansions and even potentially new greenfield crude oil pipeline expansions in Canada. Can you speak to the potential opportunity pipeline at Hardisty and Edmonton? And sort of within that, I'd be most curious about potential timing. Like I'm just giving an example here, but let's say, like a pipeline expansion comes online in 2 years from today, when would we sort of need to see an announcement or a positive FID for a new sort of tank expansion at one of your hubs?

Aaron, yes. I think clearly, the sort of overall macro backdrop of the world needs oil, the political environment in Canada getting considerably better than it's been for a decade has a lot of optimism out there right now that you're seeing some very interesting egress projects getting advanced that I think have some good legs to them, and you're seeing all of our customers talking about very good rates of return paths to increasing production in some pretty substantial ways. And so we see the production coming at us from our executing and sanctioning additional capital on our side, some of the very near-term things we're seeing is the Chauvin acquisition provides us runway of additional capital projects that we see that's sort of effectively extending that Hardisty platform. We've talked about adding this Hardisty connection on Chauvin, but also this pipeline expansion for Chauvin.

But I think what's really interesting and exciting for us around Chauvin is now that we're through the Competition Bureau, we can actually start talking to customers. And I see us spending -- we're already -- we're sort of 1 week into this, and we can now start talking to customers about, okay, what can we do to tie in more production to the Chauvin pipeline and more production into Hardisty and what does that drive? And so I know I'm diverting a little bit from your question, Aaron, but I think that's some of the near-term sanctioning things that I can see right in front of us that you can see us doing over the next 12 months. As over longer term as some of these big egress projects get sanctioned, I think there's probably some good activity inside the terminals that we're going to see.

I think in particular, if I had to see firsthand, I think that the TMX projects are really quite attractive for our customers. Sort of getting volume to the West Coast is the hottest ticket in town here that the people want to get more volume to the West Coast. I expect you're going to see that growth in TMX volume nicely drive some need for additional tankage for us in Edmonton. And you would have heard us talk about before that we've done a lot of work to get ready to add a couple of new tanks in Edmonton. And so all the optimism around expanding TMX nicely leads into needing to do some additional tank expansions in Edmonton over the next year or 2.

So those are probably the nearer term. In Hardisty, we're pretty well set up right now. So I think we can supply a good amount of additional expansion on egress with current tank capacity and nicely add, I think, even higher rates of utilization and some competitive tension in Hardisty is a good thing. And so I think you're a little further out on need to sanction new tanks in Hardisty, but I think you see new tanks in Edmonton faster.

Got you. Okay. You referenced it in passing, Curtis. But as we swing into warmer weather, I'm hoping you can just give us a bit more of a status update at Moose Jaw. Like where are sort of the, I don't know, 2-1-1 crack spreads or other relevant benchmarks versus historical in the markets you serve? And is there any sort of -- I don't know what to call it, but like an inventory-based margin pickup that we should expect because you're building inventory earlier in the year and then prices inflected later in the year? Like how should we be thinking about sort of the profitability of that asset over the next 2 quarters?

There's a couple of things I think about our Moose Jaw. So one, overall, yes, this is a better environment for the Moose Jaw refinery. I think for all refiners in North America, you're seeing it in the world, you're seeing an uptick. What the big thing that we will watch is, one, what does road construction look like across North America? That's -- we're a significant player in that market. I think what we're seeing right now, early feedback from customers is costs are up and customers are sort of reevaluating what is the scale of their road construction projects for the summer. So Q1, obviously not a big road construction quarter. So we didn't see a lot of activity around that as you get into Q2 and Q3, just how active our customers are going to drive just what the asphalt side of that business is. That's obviously the biggest product line coming out of Moose Jaw.

And then the second one that we watch closely on Moose Jaw is our drilling fluid business. And so that typically follows more of a diesel crack spread price. And that -- so obviously, pricing is attractive on that. And what we'd be watching for now is just what does activity look like. And I think everybody is watching what do rig counts do in Canada and the U.S. over the coming quarters. I'm a believer that you're going to see an uptick in activity. These prices are going to be stronger for longer, and that's going to ultimately drive more activity in both Canada and the U.S. on the drilling front, and that will be beneficial to our drilling fluid business. But I would say we haven't seen that yet that we're still seeing a fairly muted response from producers to the increased pricing and some of the rig activity has not significantly upticked and impacted the drilling fluid business yet.

Our next question comes from the line of Robert Catellier of CIBC Capital Markets.

Yes. I just have one follow-up question here. With the geopolitical events really resurfacing the importance of North American oil exports, you talked about what you're seeing in activity levels. But I'm curious to see -- to learn from you if there's -- the customer interest is leading to longer-dated commitments at Gateway. Is that entering the discussion? Or is it still skewed to a bit shorter duration optionality here?

Rob, yes, it's one of the things we've seen is definitely in this amount of market uncertainty, you're seeing people really just focused on the very short term right now. And so initially, you saw just sort of a pullback in the uncertainty in the market caused people to pull back initially for us, our customers anyway. And now we're seeing them rushing to go find supply, but they're still very much living in the prompt here right now and trying to find ways to solve short-term problems and people are having difficulty sort of determining what does the long-term situation look like and make long-term commitments is a challenge for our customers right now.

The one -- the one really notable trend, though, I would say for us is we've seen a real uptick in the number of customers at Gateway. And so if you look at Gateway historically, it's been a relatively small group of customers that we've supported and probably over time, there's probably been no more than a dozen different customers that have loaded out of Gateway. Over the second quarter, we will load over 5 or more new customers out of Gateway. So almost a 50% increase in the number of customers that are touching the terminal.

And we're going out of our way to try and help people out here right now and find ways to squeeze in additional cargoes. And to be clear, these are, for the most part, sort of relatively short-term sort of spot volumes and things we're doing to help people out in sort of this crisis moment. But I believe there's going to be a long-term payoff from that. You're going to -- I think people have long memories, and we're helping people out in times where they're having some challenges. And these are some really notable customers, including some supermajors that we're going out of our way to help out. And I think it's also given them a chance to get a taste of Gateway. And I think we've got an impressive facility, an impressive team out of Gateway and getting used to working with that group and getting that into the flow of their operation really sets us up nicely to think about longer-term arrangements with these customers in time. But for full transparency, I think right now, people are very focused on meeting their short-term needs and a lot of the activity has been very short-term focused right now.

Yes, that's helpful context and it makes a lot of sense. And hopefully, that converts to something longer term.

Our next question comes from the line of Sam Burwell of Jefferies.

Apologies if I missed this disclosed anywhere, but curious if you could share with us Gateway volumes for February, March and April, if you have them? And if you can't quantify it, just sort of a trajectory over the past few months would be helpful.

Yes. Thanks, Sam. I think we saw some really nice volumes at Gateway in January and February, touching kind of on average, 800,000 barrels a day or so, which was a nice uptick and kind of what we expected with some of the projects we've done over the last year. And then with the spiking freight rates and some of the other geopolitical events that happened, we saw that drop down to kind of what would have been closer to our prior run rate before all those projects, around kind of 600,000 a day. And so a meaningful drop in March really around kind of those freight rates and some of the tensions politically. But certainly, as Curtis has mentioned, we've seen that recover quickly here in April and see it pushing up closer to the 1 million barrels a day in the back half of this quarter.

Okay. Got it. And then shifting over to Chauvin. Would you -- is it fair to say that the Hardisty connection and the pipe expansion would fill the growth CapEx budget for 2027? Just curious if you're able to essentially fill your capital spending needs through just stuff tied to Chauvin or if we need to see additional other projects sanctioned to get CapEx flushed out next year?

So on CapEx for 2027, so it will flow into 2027, the CapEx related to those projects. But no, there'll be additional sanctioning over and above those projects. I think those are a nice base load to start and help us, as we've talked about, those 2 projects alone, we expect that brings the acquisition multiple on Chauvin down below 7. So quite attractive projects, but there still will be additional project sanctioning you can expect to see from us over the next year as we go feed into the 7% plus growth rate.

Our next question comes from the line of Maurice Choy of RBC Capital Markets.

Just apologies if I missed this, but I just wanted to follow up on an earlier comment about how shippers have changed their attitudes since the war began and how the volumes have gone up to 1 million barrels a day. Have you actually seen customers change how they look at contracting, wanting to contract longer and perhaps willing to take higher rates? Or has that not led to that just yet?

Maurice, right now, I would say we're just seeing people scrambling to find supply right now. So you're just seeing a mass scramble across the world as people are trying to find supply. And so it's fairly short term in nature right now as they're repositioning their supply chains to point them towards the U.S. They're repositioning their VLCC fleet. They have it come to the U.S. And so we're seeing a fairly significant shift on people trying to find that. There are margin opportunities within some of those, within some of that.

But I think it's a lot of very short-term activities right now. Our people are just really just trying to deal with an energy crisis right now and find ways to get supply.

I suppose if you look beyond the short-term effects, what are the long-term effects -- more durable long-term effects that you're anticipating for Gateway?

Well, I think clearly, from our view, and I think you're seeing the impact of the world seeing that you need North American energy supply in a bigger way. So I fully expect you're out of this, you will see people looking for ways to derisk their supply chain on oil. You're going to see an increasing shift on supply coming out of the U.S. And I do expect that will translate into more longer-term arrangements coming out of the U.S. to supply customers.

I think no matter what happens in Iran, and there's all kinds of different scenarios that will play out here. But no matter what, there's a lot of work to do in the world here to sort of replenish some of the supply that's been lost over the last number of months. And then on top of that, I expect you're going to see people need to not only refill their strategic reserves, but you're going to need to see -- I think people are going to want to have even more strategic reserves on the other side of this disruption in the world.

And so I think you've got a pretty long runway in front of us where there's going to be a big pull on U.S. exports and Gateway is going to be a good beneficiary of that. I think one interesting observation we've seen from our customers is that we've seen some of our Asian customers be a little bit more front foot on this and some of the increase in activity has been focused on supply in Asia. And we actually have seen a little bit less from some of the European customers. I think that's sort of notable interesting trend out of this. But I think in time, I think the entire world has an oil supply problem, and that's going to drive all kinds of demand from all over the world on U.S. supply. So I think that's a trend that is still -- we're still see play out over the next number of months.

Understood. If I could just finish off keeping this theme about derisking the supply chain. I recognize that you do have some DRUs in your $1 billion 5-year backlog. Given your comments about potential for incremental pipeline egress in the years ahead from Canada, how do you see the outlook for DRUs, especially like would you and your partner ever consider proceeding with these DRUs if they aren't fully long-term contracted competitively?

So I think when you look at the sort of the stack of the 5 verticals on where we see capital opportunities, I think the DRU would be on the back end of those opportunities that we see probably more actionable things upfront for as far as new DRU development, I think, is sort of on the back end of the 5-year time frame. But I still think there's a position for additional DRU phases to sort of solve the overall egress solution out of Western Canada that I think you're going to see a number of these pipe projects go forward that's going to drive some good efficient flow of barrels to the U.S.

And I'd be a believer that you're going to see some good expansion for producers to be able to get barrels to the U.S. But I think you're going to be limited on what you can get to the West Coast beyond sort of expanding TMX. And I think the play for the DRU for additional phases sort of 2 parts. One, it allows you perhaps to give you a way to expand additional export capacity to the West Coast that there's a way to use a DRU to feed additional export capabilities. Or two, is a bit of a very custom supply option to some refinery that want sort of a neat product that can come out of the DRU and a bit of a custom solution.

But I think those are probably a little bit further down the pecking order related to things that are going to get sanctioned over the next few years, though. So I think it's one to watch and one that I think still has legs, but I think you're going to see other pipeline expansion, other tank expansion type projects from us before you see the DRU.

[Operator Instructions] Our next question comes from the line of Patrick Kenny of NBCN.

Just maybe back on the Marketing business. You mentioned the headwinds from backwardation, which makes perfect sense. But I guess what I'm not clear on is this dislocation we've seen between the physical spot markets versus the financial prompt markets. And maybe you could just walk us through what's been going on there? And if this unusual dynamic does continue going forward, if that represents any incremental opportunities for your team?

Pat, I think we're all seeing the same thing that there is this dislocation and just what is the reality of how these markets will play out. That's something we watch. I think there's -- within there, there's there is volatility opportunities for our Marketing customers. I also think clearly, within that, there's opportunity for our producer customers to realize a higher price for their barrel as you look out further in the curve, I think that's quite healthy for our customers. And I don't believe that's properly priced into the curve yet.

So I think that's probably where you see the bigger impact relative -- sure, there's some -- our marketing group does a great job in volatile times. And so I think there'll be some small wins around volatility that the marketing group will take advantage of. But the far bigger impact for us is sort of healthy opportunities for Infrastructure customers that I think you'll see as sort of actual prices start to get realized.

Got it. That's helpful. And then I guess just back on the back of the Chauvin acquisition and as your team looks for that next tuck-in opportunity, wondering if you could just help us compare and contrast the Canadian versus U.S. landscape right now, if you might be seeing more attractive acquisition multiples in either jurisdiction, more buyers than sellers in either market? And if labor availability also has any impact on how you're thinking about monetizing any growth potential off of any asset that might be acquired down the road?

M&A is a good question. I think the Chauvin acquisition was a great one for us. We're just getting our hands around it a week in. But it -- I think it gets a message to the market that we're very open for these types of things. Like we are a crude-focused business, and we love assets that potentially tie into our current crown jewel assets, both in Canada and the U.S. And so we spent a lot of time with our team looking around at various assets and being proactive, reaching out like we did with Chauvin to see, is there a potential fit that we can find a home for those assets within Gibson. That's -- I think that's something we'll stay active with.

I think in general, you probably heard me talk before that I think there's opportunities that come up out there right now where we have some other gas-weighted names that are maybe a little bit more focused on building up their gas portfolio and perhaps we can we can help them with sort of finding a different home for some of their crude assets. And so we look at those sorts of things across Canada and the U.S. to try and find a fit.

I think in Canada, just in general on both M&A and on sort of organic growth capital because of just the overall growth that you're seeing right now in Western Canada, I'd say there's probably a little bit more active environment in Canada related to M&A and organic growth capital, just growth drives lots of interesting opportunities that fit in well with Gibson. So we're seeing a bit more of that.

So we're staying active on the M&A side, looking around. I think we saw with the Chauvin deal that our shareholders will be very supportive of finding other deals like this, and so we'll be very open to that. But I just caution around that, that it takes 2 to do a deal, and there's only so many great assets out there. And so I think there's nothing imminent that I would be messaging that we're going to go fine. But we're going to stay proactive and look for good fits.

I am showing no further questions at this time. So I would like to turn the conference back to Beth Pollock for closing remarks.

Thank you. Thanks, everyone, for joining us today. Supplemental materials are available on our website at gibsonenergy.com. If you have any additional questions, please reach out to our Investor Relations team.

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

Good morning, everyone, and welcome to the Gibson Energy Fourth Quarter and Full Year 2025 Conference Call. Please be advised that this call is being recorded. I would now like to turn the meeting over to Beth Pollock, Vice President, Capital Markets and Corporate Development. Ms. Pollock, please go ahead.

Thank you, [ Towanda ], and good morning. Thank you for joining us to discuss Gibson Energy's Fourth Quarter and Full Year 2025 results. Joining me on the call today are Curtis Philippon, President and Chief Executive Officer; and Riley Hicks, Senior Vice President and Chief Financial Officer. Additional members of our senior management team are also present to assist with the question-and-answer portion of the call.

Listeners are reminded that today's call will reference non-GAAP financial measures and forward-looking information, which are subject to certain assumptions and risks. Descriptions and reconciliations of these measures as well as related disclosures are available in our investor presentation and continuous disclosure documents on SEDAR+ and on our website. I will now turn the call over to Curtis.

Thank you, Beth, and good morning, everyone. I'm pleased to discuss Gibson's fourth quarter and full year 2025 results. I'll begin with a few highlights and then turn it over to Riley to walk through our financial results and balance sheet before I conclude the call with some closing remarks.

At the outset of 2025, we established 5 strategic priorities: safety, gateway execution, growth, high-performance teams and cost discipline. Over the course of 2025, we delivered on our key objectives across each of these areas, exiting the year delivering Infrastructure segment growth and a clear line of sight to the next phase of our growth as outlined at our December Investor Day.

From a safety perspective, we surpassed 10 million hours without a lost time injury and safely completed 2 major turnarounds at our Moose Jaw Facility and the Hardisty Diluent Recovery Unit. Most notably, we are proud to finish 2025 as the top-performing midstream company in North America on the key metric of total recordable injury frequency. At Gateway, we successfully executed both the dredging project and the Cactus II pipeline connection, increasing throughput to a new high watermark of 815,000 barrels per day in January of 2026 and delivering on our 15% to 20% run rate EBITDA growth objective in the fourth quarter that was established when we acquired the asset in 2023.

During the fourth quarter, we sanctioned the $50 million Wink-to-Gateway integration project, which will enhance supply optionality and increase throughput capacity. The project is expected to enter service in the third quarter. The cost focus campaign was a success. In 2025, we generated more than $25 million of recurring and nonrecurring cost savings, increasing DCF per share by 8%. This efficient and cost competitive focus sets us up well for continued success.

Finally, on the people front, we've built a strong team that delivered on our goals this year. This group is passionate about supporting our customers exceptionally well and is well positioned to lead us into a successful 2026. Turning to the financials. Our 2025 results reflect the successful execution of our crude oil infrastructure strategy. We delivered record infrastructure adjusted EBITDA of $622 million for the full year, including a new quarterly high watermark in the fourth quarter.

Infrastructure throughput across our core terminals increased approximately 13% or 95 million barrels year-over-year. This performance was driven primarily by higher volumes at Gateway and Edmonton as well as the completion of the dredging, Cactus II and Baytex Infrastructure Capital Projects during the year. The strength and quality of our cash flows improved as we renewed several major long-term contracts all between 10 and 20 years in duration across our Edmonton and Hardisty terminals.

These take-or-pay extensions increased our contract backlog by approximately $500 million. The renewals supported by high-quality counterparties included senior integrated energy companies and a multinational refiner, reinforce the strength and sustainability of our cash flows. Complementing our infrastructure growth, last week, we announced that we had entered into an agreement to acquire Teine Energy's Chauvin crude oil infrastructure assets for $400 million. This acquisition is expected to close in the second quarter of 2026, subject to regulatory approvals. The Chauvin pipeline will strengthen our Hardisty platform by extending our connectivity into the prolific Mannville Stack, adding long-term contracted cash flows and providing near-term expansion opportunities, including the Gibson Hardisty Connection Project, which was announced and conditionally sanctioned subject to regulatory approvals.

The transaction was executed at a mid-7x multiple with a clear path to less than 7x as we execute on identified growth and optimization opportunities. We expect the transaction to be mid-single-digit accretive to distributable cash flow per share with the proceeds of the $215 million equity financing that closed yesterday. The acquisition will be leverage neutral with our investment-grade credit ratings confirmed by both DBRS and S&P.

At Investor Day, we outlined a clear road map to deliver over 7% annual infrastructure EBITDA growth over the next 5 years. The progress achieved in 2025, combined with our recent Chauvin acquisition and its associated growth projects positions us well to execute on this plan. I'll now turn the call over to Riley.

Thank you, Curtis. 2025 was a strong year for Gibson, and I'll walk through our fourth quarter and full year financial results, followed by an update on our financial position and capital allocation priorities. Our focus remains unchanged: disciplined financial management, maintaining a strong balance sheet and adhering to our financial principles. These principles helped lead us to a strong fourth quarter and a record year from an infrastructure standpoint, reflecting the quality and resilience of our crown jewel asset base.

In the fourth quarter, Infrastructure delivered record adjusted EBITDA of approximately $160 million, driven by contributions from recently completed capital projects, continued strong performance across our terminal network and the full quarter benefit of the Gateway dredging work completed earlier in 2025. Touching quickly on our Marketing segment. The business continued to operate in a challenging environment during the quarter. Tight heavy oil differentials, limited crude storage opportunities and seasonal asphalt storage reduced available arbitrage during the quarter.

As a result, marketing adjusted EBITDA was approximately $1 million. While this is at the low end of our previously communicated guidance range, it represents a $6 million improvement over the fourth quarter of last year. As we think about our business holistically, marketing now represents a smaller portion of consolidated EBITDA, underscoring the increasing stability and contracted nature of our cash flow profile. Looking ahead, we are reiterating our previously communicated marketing guidance range of $0 million to $10 million per quarter.

Market conditions in Canada remain efficient, and we have not seen a structural shift away from crude backwardation. On a consolidated basis, Gibson generated adjusted EBITDA of approximately $145 million in the fourth quarter, reflecting strong infrastructure performance and an increase of $15 million compared to the prior year. Distributable cash flow for the quarter was approximately $79 million, representing an increase of $8 million compared to the fourth quarter of 2024.

Turning to our full year results. 2025 was a great year for Gibson. Infrastructure adjusted EBITDA totaled $622 million, up from $601 million last year, driven mainly by higher volumes at Gateway and Edmonton, the success of our cost savings initiative and contributions from key capital projects coming online. Marketing adjusted EBITDA totaled approximately $15 million for the year, reflecting a challenging environment for both crude marketing and our refined products business. As a result, consolidated adjusted EBITDA was $581 million and distributable cash flow was approximately $337 million.

Looking at our current financial position, we remain aligned with our financial principles, maintaining a strong balance sheet and meaningful capital flexibility. We remain prudent capital allocators focused on maximizing long-term shareholder value through investing in high-quality infrastructure projects as shown by our strategic acquisition of the Chauvin infrastructure assets. Following the announcement of this acquisition, alongside 2 actionable growth projects, we have now adjusted our 2026 growth capital outlook to reflect $100 million of organic growth capital.

This includes capital related to our previously sanctioned Wink-to-Gateway integration project. The change in outlook reflects our continued focus on disciplined customer-backed infrastructure growth while ensuring we preserve our balance sheet strength. At year-end, net debt to adjusted EBITDA was approximately 3.9x, reflecting the timing of capital deployment and lower marketing contributions in 2025. With full year EBITDA contributions from recently completed projects and a reduction in growth capital to $100 million in 2026, we expect leverage to trend down lower over the course of the year.

On an infrastructure adjusted basis, leverage was approximately 4x, which is consistent with our commitment to maintain infrastructure leverage at or below that level. Importantly, as part of our recent transaction, both S&P and DBRS have reaffirmed our stable investment-grade credit ratings. Our dividend payout ratio was approximately 84% on a trailing 12-month basis. Over the long term, we continue to target a sustainable payout range of 70% to 80% of distributable cash flow. On an infrastructure-only basis, the payout was 78%, which is comfortably below our target of less than 100%.

As our Infrastructure segment continues to grow and become a larger proportion of our earnings, we expect our consolidated payout ratios to migrate towards our long-term range. The continued growth of our high-quality infrastructure cash flows during the year supports our seventh consecutive annual dividend increase, bringing the quarterly dividend to $0.45 per share, an increase of 5% year-over-year. We remain focused on delivering long-term value for our shareholders as we enter 2026 from a position of strength. I will now pass the call back to Curtis for his closing remarks.

In closing, we made meaningful progress in 2025 as we executed on our 5 key priorities: safety, Gateway execution, growth, high-performance teams and cost discipline. We also delivered record infrastructure results marked by a new high watermark in Q4. As we start 2026, we are once again focused on 5 strategic priorities: maintaining our industry-leading safety performance, increasing the utilization of our assets, growing our infrastructure business, advancing technology and AI-driven initiatives to drive efficiency and further enhancing the high-performance ownership culture.

We also look forward to integrating the Chauvin Pipeline into our portfolio, subject to regulatory approvals. With continued discipline and focus, we are confident Gibson is well positioned for its next phase of infrastructure-led growth and to deliver on the Investor Day strategy from a position of strength. With that, I'll turn the call back to the operator to open the line for questions.

[Operator Instructions] our first question comes from the line of Aaron MacNeil with TD Cowen.

Curtis, presumably, you looked at a lot of opportunities prior to pursuing the Teine acquisition. How should we think about M&A for Gibson going forward? Would you describe this as a bit of a unique opportunity? Or was there a bit more depth to the M&A opportunity set?

We definitely look at a lot of different things. I'd say a year ago, we were very focused on Gateway execution. And it was important for us to be delivering on that significant acquisition we did back in 2023. And so a year ago, although we were looking at a lot of things, we were cautious on that. We want to make sure we delivered well on Gateway. But over the last year, we proved that we could deliver well on Gateway. I think that ability to go deliver on that project, combined with at a macro level, we look at the opportunity set out there, we see some interesting opportunities for M&A.

That got us more active over the last 6 months looking at a wide range of different opportunities. In particular, we are looking for things that are crude focused, connected to our current platform and ideally just continue to drive that same contract profile, customer quality profile that we're looking for. So I think there's a few things out there we looked hard at. Chauvin is just a perfect fit. Hardisty is our backyard. That's where we've been for 70 years. It is the core crown jewel of the Gibson asset base. And so when the opportunity came up to add Chauvin to the story and help extend the reach of that Hardisty platform, that was the most attractive one that we want to act on.

Makes sense. Switching gears and fully appreciating that you've reiterated the $0 to $10 million marketing guidance, but we're starting to observe some positive signals for this business, including higher apportionment levels on Enbridge Mainline storage levels ticking up, wider heavy oil differentials, although maybe not for the same reasons you've seen in the past. But appreciating that this is all early days, what would you sort of guide us to in terms of looking for market signals or variables that we should be looking at as we think about the outlook for the segment?

I think it's fair to say we're encouraged by some slightly wider dips and a few positive indicators out there. I would completely agree with your assessment, though this is early days. If you look at our track record over the last year, we've been firmly in that $0 million to $10 million a quarter range. I expect that's where we're going to be in 2026 as well. There's still very low levels of storage out there right now. And so each of these volatility events that happened that in the past maybe drove higher marketing earnings have a much more muted effect in an environment where you have very low crude inventories.

And so I think that will persist through the year is what my expectations are. And so I think you'll see a fairly muted year for marketing. The big thing you would look for is we're still a very backwardated market. And so I think that would be the one thing to maybe watch for. If you get into a contango market, that's a significant shift. And we've been in this backwardated market for quite a long period of time. In time, that will change, and there will be contango opportunities that provide a great opportunity for Gibson to use its assets well to capitalize on that. But until you see that, I think you'll still be in that $0 million to $10 million range.

Our next question comes from the line of Jeremy Tonet with JPMorgan Securities.

This is [ Eli ] on for Jeremy. Just wanted to start on the expansion opportunities at Chauvin. Can you just provide some incremental color on the timing and return profile here and how these stack up against other opportunities across the portfolio and also get you to the kind of that 5 to 7 acquisition multiple that you highlighted?

Thanks, [ Eli ]. As -- we messaged that right out of the gate, we see a number of interesting growth projects that come with Chauvin. It's one of the really attractive things about Chauvin is it really gives us a nice runway of growth projects over the next few years. But immediately out of the gates, once we're closed, there's 2 projects that we see acting on. One is the Hardisty Connection project to connect the Chauvin pipeline into our Hardisty Gibson Facility. And so that is one that we will sanction immediately after regulatory closing. We expect that is roughly a 12-month process from that period from when we officially sanction it.

And then the second one is the expansion project. And the expansion project is exciting. It's -- the pipeline is currently operating at near full at sort of 30,000 barrels a day capacity. And we see an opportunity to expand that to 45,000 barrels a day and have some pretty, I think, an interesting opportunity with that. So the timing on that is realistically anywhere from 18 to 24 months from the closing of the transaction for all of the work involved with the preparation and the execution of that expansion. Overall, we've messaged that we did this acquisition at a mid-7x multiple. Those 2 projects are strong, and those 2 projects will immediately drive this acquisition into a sub-7x multiple range.

Awesome. And then I know the transaction was leverage neutral, and you have added some kind of attractive growth CapEx that you can continue to chip away at. But can you just kind of post transaction close, reframe the overall capital allocation waterfall and how you kind of see growth CapEx shaping up versus other competing priorities and maybe just whether buybacks remain part of the story longer term?

Yes. Thanks, [ Eli ]. It's Riley. When we think about capital allocation, our priorities, they really haven't changed. So we think about funding our business first, which means maintaining a strong balance sheet, investing in infrastructure growth and funding our dividend. And so as we sit today, buybacks are certainly a great tool that we can have in our toolkit. But as we look at our balance sheet today, we'll need to see that kind of get back into our 3 to 3.5x range before we would start to consider those buybacks. And then they would have to compete for capital allocation with the great infrastructure projects that we see ahead of us. So we're going to continue to be prudent and disciplined and invest in our business.

Our next question comes from the line of Sam Burwell with Jefferies.

Just another one on the Chauvin acquisition. Just curious like what attributes of the asset make you most confident in being able to sanction the expansion? Is it just the amount of volumes that are currently trucked or the production growth profile or anything else? And then sort of piggybacking on to that, is there an opportunity to meaningfully take up the take-or-pay portion of the capacity on the pipeline?

Sam. What gets us excited is this is our backyard. So we know it quite well. We know the customers quite well in that area, and we know the geology in that area is driving a lot of great activity there. So the pipe is already running at near capacity. We see a very actionable path that you can expand that capacity and achieve some very good utilization even on the expanded pipe. So we feel very confident on that.

As far as shifting it to a take-or-pay structure on the expanded capacity, absolutely, that's part of our strategy. We're still very early days. The transaction is not even closed yet. But I think with a midstreamer now owning the pipe, I think you see a slightly different strategy coming in now for us to be able to partner with our customers to perhaps look at different take-or-pay structures.

And I would point that specifically, we see a lot of really interesting opportunities to extend the reach of the pipe and that there's a number of our customers that are currently needing to truck the last leg into the Chauvin pipe to get access to it. And we think there's a really interesting opportunity for us to help them find a netback win by extending the pipe reach and tie that in perhaps to some take-or-pay structure on the contract as well.

Okay. That certainly makes sense. And the next one sort of touches on Venezuela. And obviously, it's still very, very early, but I was curious for your view on whether you think that more Venezuelan barrels hitting PADD III coming on to the Gulf Coast and presumably taking the PADD III slate heavier might offer you greater opportunities around more exports from Gateway of light crudes and possibly making expansion projects down there more viable.

Yes. Interesting. I think Venezuela, obviously, we're watching Venezuela closely. I think it's interesting. One, I think as everybody is saying, I think there's still a lot of question marks around what exactly plays out in Venezuela, and there's still a lot of work to do to actually see a sustained increase in production that and a sustained shift in where those volumes are going to have a meaningful impact on that. I'd say Gibson is in a unique position to see upside around that, though, both in -- if there is an impact on dips, potentially, there's an impact for Gibson's marketing business that you perhaps see from Venezuela crude coming into there.

Perhaps you could make the leap to increasing activity around Gateway. One of the interesting observations some of our customers have made around Gateway is that just the -- perhaps some of the change in flows and the fact that the U.S. has a greater influence on those flows of crude coming out of Venezuela just increases the amount of ship traffic in the area that's sort of controlled by customers and sort of the entities that are out of the U.S.

And that's helpful for our gateway customers for getting ease of access to ships to have efficient shipping out of Gateway. And it's a bit of a unique unexpected upside that we're hearing from our customers of perhaps some sort of shipping efficiency increasing with the Venezuela changes.

Our next question comes from the line of Robert Hope with Scotiabank.

So I want to go back to M&A. So Teine was a nice tuck-in. How does the M&A pipeline look for further tuck-ins? Are you seeing nice deal flow? Or do you want to take a little time to integrate that asset before getting back on the hunt?

We're going to keep -- we'll keep looking at it. I think at a macro level, Rob, what I think is super interesting is that there's been such a rush towards gas assets in the overall market that I think that creates an interesting opportunity for Gibson that has a crude-focused strategy that there are some excellent crude assets out there that are potentially not the top focus for some companies that are perhaps shifting a bit more towards some gas-focused assets. And we love those crude assets.

We think those crude assets with the right attributes in the right location are going to be things that are going to be great assets for the rest of our lifetime, and we'll be active in looking at those, both in Canada and in the U.S. In saying all that, we're a pretty disciplined operator. And so Chauvin was a big deal for us. We're going to be focused in 2026 on executing well on integrating that in and making sure we deliver on everything around that. And so -- we'll keep looking, but I would caution that if you look at our pace, our last big deal back in 2023, we did this one this year. I wouldn't look for us to dramatically increase the pace of M&A activity. We'll be active and look at it. It really does take 2 people to get a deal done, though. So we'll see on what actually transpires.

All right. Appreciate that. Switching gears. At the December Investor Day, you spoke about 7% plus infrastructure growth out to 2030. How does the Teine acquisition and the associated accretion change your thinking there? Do you view this growth outlook as significantly derisked? Or are you looking at potentially upside versus the prior outlook?

When we talked about those numbers back in December, obviously, Chauvin was fairly well advanced at that time. And so we looked at the Chauvin asset or similar type assets as part of the story of how you got to this confidence around an over 7% infrastructure EBITDA per share growth rate. And so I would say that this nicely supports and derisks and is sort of perfectly aligned with the strategy we laid out at the Investor Day, but it doesn't sort of dramatically increase that rate. We still have that same confidence that sort of above 7% is what you should be expecting.

[Operator Instructions] Our next question comes from the line of Maurice Choy with RBC Capital Markets.

Just wanted to come back to the philosophy of transactions. You mentioned earlier that strategically and from a risk perspective, crude focus connected to current platforms and having similar contract and counterparty profiles were important to you. Can you also speak philosophically to the financial and funding priorities when you look at some of these wide range of opportunities?

Yes. Sure, Maurice. It's Riley here. So when we think about funding, obviously, we go back to kind of our financial positioning and maintaining our flexibility. And so when we looked at this one specifically, given where our leverage was, we felt it was most prudent to do a leverage-neutral transaction. To the extent our balance sheet was in a different position and we were a little bit less levered, we would have maybe thought about not doing equity and doing it fully from the balance sheet. But everything is going to be done in the context of maintaining or improving our investment-grade credit ratings. And so that's really the critical factor. That's massively important to our strategy. And so we think about funding in that context.

Understood. And then maybe along the same vein here on the leverage for the year, I recall that pre-transaction around midyear this year, you would have reached your 3 to 3.5x debt-to-EBITDA target range. And I recognize that the Chauvin transaction is leverage neutral. I just wanted to know what your outlook is for this metric. Any steps you consider to be in that range, especially if marketing does stay flat this year?

Yes. I think we're seeing marketing remain muted. And so likely getting back to that 3.5% range is kind of as we go through 2026 now. I will say, though, given where our infrastructure leverage is, we're quite confident with our balance sheet and where we're positioned today. Marketing is in a trough, and we still remain well below our kind of our infrastructure leverage targets.

And importantly, we did discuss with both S&P and DBRS on the back of this transaction, our profile, and they're quite comfortable with where we are and reaffirmed our rating. So we will see us delever through the year, but it's likely through 2026 and not fully done in the first half now.

Our next question comes from the line of Benjamin Pham with BMO.

I just go back to the Chauvin transaction and the multiple that you highlighted, the mid-7x. I'm curious, my question is more when we look at transactions in North America and even looking at acquisitions versus organic growth. We don't typically see multiples being similar in that vein. Can you share context on maybe just your observations of acquisitions and the multiples? And any specific characteristics that resulted in a quite attractive multiple for Chauvin?

On the multiple side, I think it's a fair -- it was a fair price for both ourselves and Teine. And I think from -- I don't want to comment too much on Teine's perspective, but I think I think it was important for both of us to recognize that this is a long-term agreement that we're entering into a 15-year agreement with partnering with Teine, and they were doing the same thing. And it was important -- the purchase price is one thing, but the overall relationship and having a great commercial relationship to go grow that business over the next 15 years was also very critical.

And so we spent probably more time on that aspect of the transaction and talking about how we grow this business together was a key factor. And I think when you look at all that together, where we got to on price was a fair swap for both sides.

And maybe to tack on to that, I mean your overall observations, you've looked at a lot of acquisitions. I mean, is the valuations between M&A and organic growth, is that narrowing over time? Or is this nature of [indiscernible] is a very unique situation that popped up for you?

I think it will depend on the particular asset and its characteristics. This one is -- this was sort of right up the fairway directly tied into Hardisty had some unique attributes that made it made sense and with some immediately actionable growth projects that allowed us to be directly in that 5 to 7 build multiple that lines up with our organic capital. That's a great story. I think as you look forward at other M&A opportunities, it will depend on their characteristics. There will be situations where you'd consider going above that range for the right type of crown jewel assets with the right type of contract profile, but it really is on a case-by-case basis. We obviously are very focused on that 5% to 7% range is how we think about it. And we have some great use of organic growth capital that we're quite comfortable staying focused on as well if the right M&A opportunity isn't available.

Understood. And continue to Maurice's question on the balance sheet and where things were going. How do you think about perhaps balancing over equitizing this deal and delevering earlier and setting yourself up for the next wave of organic growth for M&A versus maybe just being more what you did the leverage neutral and maintaining that 5% accretion on the deal?

Yes, it's a great question, Ben. And so I think when we looked at over-equitizing, what we found on a deal of this size is it really just didn't move the needle enough to make it make sense. So you're just trying to balance the accretion levels versus your balance sheet. And for this one, we could have overequitized, but it really wouldn't have moved the needle enough on leverage to make it make sense to give up that accretion. So that's kind of how we landed where it was. On maybe a bit of a bigger deal, it might have made more sense to over-equitize and delever quicker.

Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Beth for closing remarks.

Thanks, [ Towanda ], and thank you for joining us today. Supplemental materials are available on our website at gibsonenergy.com. If you have any additional questions, please contact our Investor Relations team. Have a great day.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

Good morning, and welcome to Gibson Energy's 2025 Investor Day. For those of you who haven't met me, my name is Beth Pollock, and I'm our Vice President of Capital Markets and Corporate Development. It's great to have so many of you in the room, but also online joining us. It's been 6 years since our last Investor Day, and we are very excited to take this opportunity to tell you a little bit about where we're at and where we're headed as a company.

In terms of the formal agenda, we plan to start now, obviously, and conclude the formal presentation at 9:30, after which we'll take Q&A. First, Curtis will walk you through some team introductions with everybody here on the stage. Then he'll talk a little bit about strategy, our value proposition and growth opportunities. Subsequently, Riley will walk us through the financial summary and outlook, and then we will open it up for the Q&A session.

Two administrative items. The first, please be reminded that today's presentation refers to non-GAAP measures and forward-looking information, which 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 at the end of this presentation, which is available on our website and our continuous disclosure documents available on SEDAR+. As well, for all those of us who are in the room in the event of emergency, we'll exit through the back and follow the overhead signage.

So with that, I will pass it over to Curtis to run through a snapshot of the company and get the intro started. We know that you're going to be as excited about what's to come as we are.

Well, good morning, and welcome to the Gibson Energy Investor Day. It is pretty great, fantastic to see the amount of interest and support there is for the Gibson story. I joined Gibson just over a year ago. And coming in, what got me interested and excited to join the Gibson team and invest in Gibson is I saw a very good company with impressive assets and an opportunity to accelerate the growth around those assets and create a tremendous amount of shareholder value in the process. A year in, and I couldn't be happier with the progress that the team has made, and I couldn't be happier about the opportunity set that I see in front of us today.

Now on the screen, you see a number of key numbers and facts about Gibson, our snapshot of the business. And most of these are things that you've seen before, but there are 2 new numbers on there, 2 new targets that we're going to spend a fair bit of time today on. One is an infrastructure growth rate on the far right-hand side of the screen and also on the far right is a total shareholder return target. So we'll spend the majority of today talking about how we will deliver on an over 7% infrastructure growth rate and in doing so, generate over 100% shareholder return over the next 5 years.

Now to do that, you need great people. And we've got a lot of great people at Gibson. And maybe I'll just start it off with a bit of a shout out to the fact that we have 500 people in the Gibson team, and they're watching live today or recorded later on today this presentation. And they are an impressive group. It's a very experienced, knowledgeable group of employees that are driving our success. They take a tremendous amount of pride in not just serving our customers well, but being the best in our industry at supporting our customers. They're also owners, and I firmly believe that drives a difference. So over 95% of our employees are owners in Gibson. It drives a different level of care and performance in everything that we do.

Now up on the screen, you also see the executive team of Gibson. And I want to start off the day with pausing a bit, getting each one of them to introduce themselves, talk a little bit about how their experience enables them to make an impact in the business and also talk about what gets them excited for the future.

So with that, I'll turn it over to our Chief Financial Officer, Riley Hicks.

Yes. Thank you, Curtis, and good morning, everybody. Thank you all for joining us for our Investor Day. I know I can speak on behalf of the rest of the leaders up here and tell you we're incredibly excited to walk you through the next step in our journey. So I've been at Gibson for just over 7 years now, and I've had the opportunity to work all throughout the organization, holding leadership roles in finance, commercial and marketing. That background has given me just a really deep understanding of our people, our assets and the needs of our customers. As you can imagine, over 7 years here at Gibson, I've had the chance to work on lots of meaningful work. But the piece that I'm probably most proud of is leading the team that executed the Gateway transaction. That deal has been incredibly transformative for Gibson and has reshaped our growth profile moving forward.

Prior to joining Gibson, I worked at other midstream companies in public accounting and in equity research, where I covered mid-cap producers. Many of those producers are key customers of Gibson today. Moving forward, I think I'm most excited to work with this great leadership team and all of our talented people across the organization to drive the next phase of our growth and ensure we do it in a disciplined manner. Equally as important as financial discipline is operational excellence.

And with that, I'll pass to Dave.

Thanks, Riley. Good morning, everybody. I'm Dave Gosse. I'm the SVP and Chief Operating Officer here at Gibson. I'm responsible for the safe operation of our energy infrastructure, liquids infrastructure assets, including our Hardisty terminal, our Edmonton terminal, our facility at Moose Jaw, our terminal in Gateway just outside of Corpus Christi and of course, our Wink terminal.

I have over 30 years' experience in the operations and leadership -- operations and engineering leadership space. I've had the opportunity to do a bunch of different things with a number of different companies, various senior roles over that time span with -- including up to or over 10 years with each of Nexen as well as SemCAMS/Energy Transfer Canada, the latter at which I was President for just over 8 years.

During my career, I've also led teams that have safely and successfully executed on capital projects, major multimillion dollar infrastructure projects. I bring a very focused approach to our operational excellence at Gibson. We've had some recent successes in that regard, and I'll share a few of those with you right now. Our safety performance. Curtis is going to speak to this a little bit more, but we have had exceptional safety performance this year, industry-leading.

Our people, we focused on the organization and optimizing that as well as building the culture. Reliability, we have had 0 unplanned downtime at our facilities, and we continue to optimize the throughput at all of our terminals. OpEx or cost control, we have a relentless focus on OpEx. And for those folks that are in the field listening to this right now, they're all nodding their heads, I can feel it. And as well as execution. We continue to execute on our capital projects. And we've had a very successful year in executing on 2 successful turnarounds at each of our Moose Jaw and our DRU facility.

I'm very fortunate to be part of this team and very happy to be here today as we work with the team, both in this room but also outside of this room on building shareholder value. We obviously couldn't execute on our strategy without having an ace commercial team.

So with that, I'll turn it over to what's your name? Kelly.

Yes. Thanks, Dave. Good morning, everyone. I'm Kelly Holtby, Senior Vice President of Commercial Development for Canada. A little bit about me. So I joined Gibson just over 4 years ago after spending almost 17 years at Suncor in a variety of legal, commercial and strategy roles. Much of my time there was spent developing and negotiating agreements, both in a hands-on and in a leadership capacity for pipeline and storage infrastructure across North America, representing over $10 billion in capital. Through that work, I developed a clear understanding of what drives customer value and built strong relationships across the industry, including with Gibson, where I saw firsthand the strength of its assets and its value proposition.

That experience is a big part of what excites me about Gibson today. Our storage assets have exceptional connectivity and are located at hubs that serve as the nexus to the global oil markets. And when you combine that with increasing Canadian production, it positions Gibson very well to see sustained demand for our services and infrastructure. You guys might ask like why am I so confident we'll see that demand? Well, for me, it starts with what I'm focused on, deepening customer relationships and providing excellent customer service, maximizing the utilization of our core infrastructure and developing new growth opportunities. And when we do that, we will see increased demand for our services and infrastructure that will translate into long-term stable cash flows.

So exciting time to be at Gibson, very proud to be playing a part in leading the Canadian business. Equally excited about the U.S. business and the synergies with Canada.

And so with that, I'll turn it over to Blake.

Thank you, Kelly, and good morning, everybody. My name is Blake Hotzel, and I'm the Senior Vice President of Commercial for Gibson's business in the U.S. In my role, I lead the company's commercial development and marketing activities in the U.S., including the development and execution of our strategy to grow the business. I joined Gibson after nearly 20 years in the North American midstream space, helping companies compete and grow. From that, I carry with me the perspective that urgency and creativity and anticipating and serving the needs of the market is the simple formula for success in our business no matter the market environment. I joined Gibson to apply that formula to shape the next chapter of the company's U.S. story.

The -- our platform in the U.S. is strong, anchored by a great set of assets and a talented and committed team. I'm really excited about the prospects for deepening and growing our presence in the U.S. by focusing on solutions that matter to our customers, enabling efficiency, optionality, leveraging our integrated capability. As we progress that, our success will be determined by delivering results that matter to you all, our investors, including sustainably growing EBITDA, bolstering our contract base and cash flow quality and capitalizing on growth opportunities to deliver strong returns and align with our strengths and with the needs of the market.

I'm really excited about what's ahead for Gibson and the important role that the company's U.S. business will play in that success, and I look forward to getting to meet you all today and discussing the business with you.

And with that, I'll hand it to Beth.

Thanks, Blake. Your comments around growth are a perfect segue because in my role, I'm looking after ensuring that we have access to the financial means to execute on the growth plans. So to introduce myself, as I mentioned earlier, my name is Beth Pollock, and I'm our Vice President of Capital Markets and Corporate Development. I'm ensuring that we have the financial strength, the relationships with investors such as yourselves and the credibility in the markets to deliver on the commitments that my colleagues have spoken about this morning.

I first came to know Gibson while I was working in investment banking and covering the company. And I was immediately struck as Kelly was with just the high quality of the assets and the relationships that the company has with the premier producers across North America. As a result, I'm here today. Since joining Gibson, I've held a number of roles of increasing level of responsibility across the finance organization and have led the execution of over $5 billion in transactions. When I look out at the company now, what really stands out to me is the alignment that we have across the organization at all levels. We're really focused on the goals that we have in place and execution of those objectives. It runs from the top all the way through the organization, and you're going to hear a little bit more from some of the employees in a video to come shortly.

So with that, I will bring my introduction to a close, and let's get to the important part and the important information that we have to share with you today. And I will pass it back to Curtis.

Great. Thanks, Beth. So we put together a video for you today to introduce you to a few more members of the Gibson team, but also to introduce you to our -- what we call our crown jewel assets. These are truly integral parts of the North American energy infrastructure picture. And this video is going to give you a bit of an appreciation for the scale and criticality of those assets. And so we'll pause for 1 minute here just to clear the stage, and we'll roll the video.

[Presentation]

All right. Thank you. The team had a lot of fun putting that together. It's impressive assets. It's impressive drone work, I got to say as well that's great to watch. Hopefully, that gave you a good view of just how critical these assets are and how impactful they are to the North American energy infrastructure picture. And these assets really act as the building block for our strategy and the basis for our growth going forward. We're very excited about them. The other thing about these assets are is they're exceptionally safely run operations. And this is a success story that we're most proud of, you see on the screen is our safety performance over the last year.

So on the right-hand side of that chart, you see the total recordable injury frequency for the midstream sector across Canada and the U.S. And Gibson is not just top quartile. We are the #1 safety performing company in the midstream space across all of North America over the last year. And that type of safety performance doesn't just happen. We've got an outstanding safety program, an outstanding safety culture driving that level of performance. It starts with a relentless focus on continuous improvement, a real learning culture, a very engaged leadership. And all those things drive these great safety results and culture and performance. And all of that goes into driving great operations. And it's really with that operations capability that it really enables us to execute well on our strategy.

So our strategy is simple, and it hasn't changed, and it's straightforward. We are a crude oil infrastructure company. We've been doing this for 70 years, and we are very good at it. Our business is based around crown jewel infrastructure assets around Canada and the U.S. and those crown jewel assets provide an opportunity for us to drive strong infrastructure growth around those assets. We've got a disciplined approach in how we allocate capital and how we grow our business. And with this very engaged strong group, we're able to drive differentiated results.

Beth mentioned that our last Investor Day was 6 years ago. So we thought it would be timely to step back and take a look at what has our track record been over the last 6 years. And so Gibson has changed a lot over that time. So since 2019, our storage footprint has more than doubled to over 25 million barrels. Our infrastructure EBITDA has more than doubled. We've become increasingly diversified across Canada and the U.S. with now 1/4 of our revenues driven out of the U.S. and we've become increasingly infrastructure focused, and that's driven more consistency and stability in our cash flows. And when you really step back and look at Gibson over the last 6 years, we've done a good job of decluttering the business, getting it focused on our core high-quality infrastructure assets. And we now have 2 platforms for growth, one on each side of the border that we can drive growth from going forward.

Specifically, over the last year, I'm quite proud of the results the team has driven. It's been a record year for the business. You've heard me a number of times talk about our 5 big pushes on our goals in the business. But today, I'll talk about 2 of them in particular. We spent a lot of time developing what we call our high-performing team. And we've got a real push on making sure we've got the right team, the right people in the seats across the organization that set us up for our success.

And one of the things that we spent a lot of time over the last year is increasing the commercial bench strength and the depth and the strength of our commercial team to support an accelerated growth rate. We've also spent a fair bit of time working on what I call the plumbing of a goal-focused culture. And to really have a high-performing goal-focused culture, you have to be deliberate about that. We spent a lot of time developing aligned goals, making sure that people understood what good goals were that drive impactful results in the business. And we -- we made sure that they're communicated well through the business to the point where I would challenge you to find very many people within our 500 employees that don't have a very clear picture of what Gibson's goals are and what success looks like for the business. Then on top of that, we layered in compensation systems to make sure that employees are properly rewarded for executing on goals and also held accountable for executing on goals.

Second goal I'll touch on today is our cost focus initiative. We're super proud of this. It's been a big success story for us, drove significant run rate cost savings of over $25 million. And I'll share one more -- Riley will talk about this a bit more later in the presentation, but I'll share one more success story around this. It's around our execution of our capital program over the last year. We're updating today that we expect that we will finish our year -- this year at around $110 million of growth capital deployed. But through outstanding project execution and cost focus, those -- the returns on those projects are expected to be at the bottom end of the 5 to 7 build multiple.

So as we step forward into our 2026 priorities, that groundwork we did this year on building out the team, getting those good habits built around the team and that cost discipline serve us exceptionally well as we go execute on 2026 goals. And in particular, I'll highlight 2 of them today. One is around customers that we recognize there's an opportunity in the market right now with increasing activity, increasing production for us to find new solutions to help support our customers well. We've got an opportunity within our current terminal assets to increase our asset utilization, and we've got a goal to increase our utilization of our terminal assets from 85% currently to over 90% in 2026.

And the second big growth area that we focused goal, we're focused on is around growth specifically. We've got a $150 million capital program that we announced earlier this morning. And there's a number of milestones that we'll be tracking over the course of the year as we execute on that program within that 5 to 7 build multiple.

So we'll talk in more depth about growth a bit later in the presentation, but let me step back first and talk a little bit about why invest in Gibson. So it starts with these irreplaceable assets. So Gibson's terminals sit at the start and the end of the straws that feed the global energy markets. We play a critical role in not just helping our customers get their barrels to market, but also to help our customers get their barrels to market at the best possible netbacks. And we are a significant role in that.

If you look at some of these stats, we're quite proud of, 1 in 4 barrels in Western Canada go through a Gibson terminal to get to market. Over 50% of the heavy volumes on TMX go through Gibson terminals. Over 50% of the Keystone line goes through Gibson terminals, 20% of the mainline. And in the U.S., with our recently expanded Gateway facility, we are the fastest-growing, most efficient crude export terminal in North America and to the point now where we are today exporting 1 in 5 barrels out of the U.S. go through the Gibson Gateway facility. It's something we're quite proud of.

So going along with great assets, you've got great customers. So our customers appreciate the value of these assets and they occupy our terminals, and we have had long-standing relationships with our customers. On the left-hand side of this chart, you see that over 85% of our customers are investment grade in nature. In Canada, the majority of our large customers are oil sands producers that are extremely healthy and all of them are growing right now, creating lots of very interesting opportunities for us.

One of them, in particular, a long-term customer for us that we've been working with for over 35 years in Edmonton, helped us out with a little bit of sizzle today to our Investor Day. They re-upped the 20-year contract extension to our -- in our Edmonton terminal. It's really significant. This customer and this contract represents about 40% of our revenues in our Edmonton terminal, and we're very proud to extend this 35-year relationship for another 20 years and proud to work well with that customer. And thank you to them.

So that long-term nature of strong customers feeds well into this, and it really drives a stable, consistent high-quality cash flow for our business. And I love this chart for how boring it is. And if you look at over time, so this is from 2021 to current, the black line shows what the WTI price has done. And you see all types of volatility over the last 5 years. But if you look at the blue bars, that is our infrastructure EBITDA per quarter, and you see a remarkable consistency. Save for midway through there where we acquired the Gateway terminal and there was a step-up. There's just been consistent incremental improvement with the deployment of additional growth capital.

And that sort of boring consistency to our infrastructure business really enables us to pay a very strong dividend, and it's a key part of the Gibson story. We've got 6 consecutive years of a growing dividend, a consistent growth of our dividend. We expect that to continue. It's well supported with our infrastructure business with sort of consistently over those last 5 years, an 80% payout ratio from an infrastructure perspective. And we're proud on the right-hand side of the chart that you see that we are the seventh highest yield for an investment-grade company from a dividend perspective.

And if you step back, you see that over the last 5 years, we've returned over $1.4 billion to shareholders. So that $1.4 billion helps drive an attractive total return for our customers. Over the last 5 years, we generated over a 70% return or almost a 70% return for shareholders. From where I sit today and the opportunity set that we see in front of the company, we see the ability to drive a growth rate of over 7%. And with that, combined with a strong dividend yield, I personally invest in Gibson with an expectation that we will achieve over 100% return for shareholders over the next 5 years.

So we get asked, why are you so confident in the growth of Gibson? Well, it starts with the macro. If you step back, you look at the world needs more energy, the world needs more crude oil. Even the IEA, its current policy scenario talks about oil growth and demand -- oil demand continuing to grow through 2050. A significant amount of that oil demand will be met by Canada and the U.S. and Gibson has a key role to play in that. From a crude export perspective, we see continued growth in crude export. And I mentioned earlier that Gibson's Ingleside facility is the fastest-growing, most efficient crude export terminal. We expect we'll continue to realize good benefits of this increasing crude export story in the world.

And then if you look specifically in Canada, you see healthy producers that are continuing to grow. And also, I'll step back, I would say this is the best political climate we've seen in Canada for growing and building energy infrastructure that we've seen in a decade. And so each time you see a headline that talks about a customer increasing production or perhaps a pipeline capacity increase and even incremental increases in capacity or whole new pipelines know that those are great positive indicators for Gibson. A good rule of thumb that we use is that for every barrel of pipeline capacity increase that you see in the market, you need 4 barrels of terminal storage to be able to support that. And Gibson over the last 10 years has built the lion's share, the vast majority of tankage terminal capacity to support pipeline growth, and we firmly expect you'll see that continue as you go forward as well.

So why else are we confident in this top-tier sort of growth torque from the Gibson business? Well, there's two things on this slide. So one is we've done it before. So over the last 5 years, we've been north of 7%. So we've already demonstrated an ability to drive that north of 7% growth rate. And the second thing is the Gibson size. And I think this is quite interesting in that Gibson is big enough to do big projects, and we have got a platform on both sides of the border to go grow off of. But we're small enough that bite-sized projects actually matter for us, and we can have impactful results from even very small projects.

And if you look on the right-hand side of the chart, we call it the power of small numbers that for Gibson to go drive a 1% increase in infrastructure growth rate, we need to deploy between $30 million and $45 million of growth capital. That compares to our peers who need several hundred million and in some cases, over $1 billion of growth capital to go move their growth rate by 1%. It's a real advantage for Gibson in that there's more growth torque to our numbers, but also allows us to grow without requiring us to take major project risks.

Now I know that one of the comments that we've heard a lot is people are craving additional insight into what exactly is this growth pipeline that you talk about. And what is this backlog of projects? We've talked a lot over the last year that we see in front of us a backlog of $1 billion in projects that we can go deploy over the next 5 years. And I know people are craving some additional details. So I'm going to pause a bit on this slide to dive deep into each of the 5 legs that I see that will drive the growth over the next 5 years.

So the first leg is our producer partnerships. And this is a new leg for Gibson that we started this year when we announced our infrastructure partnership in the Duvernay with Baytex and so we announced that project back in March of this year, and we've put it into service in the fourth quarter. We deployed about $40 million in that particular project, and it's been a great success story. We love these projects because it involves building infrastructure in the field to support our customers and solve a problem for our customers, but it also drives additional volume to our core terminals. So we get incremental benefit in those terminals, and we also get a competitive barrier, put a bit of a moat up. In this particular case, we locked up those barrels for the next 10 years plus. And that's a significant advantage for our core terminals.

Doing that project opened that market up for us. And we expect that we'll do 1 to 2 of these types of agreements per year for the next 5 years, and we see a total opportunity set of about $300 million. And I'll note that on these overall numbers on each bucket that you see on the slide in front of you that we've risked that number to say what is a realistic execution. This is not the total backlog. If you added up the total backlog of potential projects, it's much larger. But we've looked back and said, realistically, with the real opportunities we see in front of us and the time frame of 5 years, what can you actually deploy? And so we view that as $300 million in this particular segment.

Second segment is around extending pipeline networks. And so increasing production, increasing customer demand drives the need for more pipeline connections and additional pipes coming into our core terminals. We see that clearly. We've seen that accelerate as more and more growth plans are happening, both in Canada and the U.S. And we think this is an interesting growth leg for us for some of these smaller connections and smaller pipeline additions around our core assets. We'll talk about one of them in particular already that we're sanctioning this morning. So we see a total opportunity set of over $250 million in this particular leg.

Now also with increasing pipeline connections and increasing customer growth, we see opportunity for tanks. And we're Gibson, we love tanks. We're very good at tanks. This is a great part of our business, and we're excited to see that with this production growth, you're going to see more tanks being deployed. We expect over the next 5 years across our Canadian and U.S. terminals, you'll see us put into service more than 5 tanks, deploy over $250 million, specifically around adding more tankage in our facilities to support this growth. And we announced this morning a couple of smaller tanks out in our Wink, West Texas asset.

Next one is around the DRU. So the DRU we put into service in 2021. So that was the first phase. And when that first phase was built, it was built with the idea that you could add 4 additional phases to that facility. So first phase has been running now for about 5 years, and it's proven to be a very efficient and effective way to provide an additional egress option out of Canada. And what's interesting is that it's proven, it works, and you can build it in under 2 years, potentially build it as short as 18 months. And when we look forward and you think about all this production growth coming at Western Canada, we see that there will be a need for all of the above when it comes to egress solutions. And we expect that the DRU will be part of the solution for providing egress options and also market optionality for our customers. Now the DRU allows you to take your product to multiple different markets across the world. And so with that, we expect that we will put into service 1 to 2 phases of the DRU over the next 5 years, additional phases.

We also see optimization projects. And these will always come up. There's just a lot of interesting opportunities to help us debottleneck our facilities, drive additional profitability or also just to respond to a unique customer need in our facilities. And there's a number of different projects in the queue that we'll constantly be working at. We see an opportunity to deploy about $100 million on those types of projects over the next 5 years.

So in total, we see that we have an ability to go deploy -- we expect to go deploy between $700 million and $1 billion of growth capital across those 5 buckets over the next 5 years, not even talking about the longer-term projects of a Gateway further dock expansion. But just within the next 5 years, we see the $700 million to $1 billion capital deployment program that on that alone will drive an over 5% growth rate for the business.

So specifically today, we announced the sanctioning of the first part of that. So we announced a growth capital program of $150 million for 2026. And the first part of that is the sanctioning of a project that's just about $50 million related to what we're calling a Wink-to-Gateway integration project. And the need for this project comes out of the fact that we're seeing increasing demand from customers, and there's a benefit we can provide to our customers by helping them source additional supply for off-the- dock capacity.

And so we love that we can help out our customers solve a problem, find additional supply, but we also love that by extending our value chain, we get to touch the barrel a few more times along the process. And it's an attractive project from that perspective. There's 2 parts to it. One is out and Wink will additional tank capacity to increase the capacity of that asset. And the second part of it is at Gateway that will be twinning a connection point, a pipeline connection coming into that facility to allow us to simultaneously feed from the Eagle Ford harvest connection as well as the epic Cactus III line directly into our facility.

Overall, this project is expected to be in service in Q3 2026, and we expect it to be built at a 5x build multiple. These projects also have a nice feature of really building off of the success we've had in Gateway over the last year on the dredging project and the Cactus II connection as well.

On top of the growth capital, there's an opportunity and a lever that I believe is underappreciated within Gibson. And this is a beautiful thing from my perspective and that there's an ability to drive a capital-free rate of growth out of the business. We expect that through a combination of asset utilization, pricing and cost discipline that there's an opportunity to drive an incremental $70 million a year by 2030 out of our assets and drive an over 2% growth rate in our business out of these capital-free options alone.

So overall, when you step back, you see the combination of growth projects, and the combination of these capital-free levers to go pull will drive an attractive 7% growth rate. I think that's exciting because, in my view, that type of growth rate is not currently priced into the Gibson share price. And as we go out and we go deliver and execute on this, it's going to drive a material improvement in shareholder returns.

So with that, I'm going to turn it over to Riley Hicks to walk through how we're going to finance all this exciting growth.

Thank you, Curtis. This is an incredibly exciting time for Gibson as we enter the next phase of our growth, and our disciplined financial strategy will help guide us into the future. You might be wondering what does that strategy look like for Gibson? Well, to me, our financial principles make it simple. We maintain discipline across our entire business. We balance growth with returns by deploying capital at 5 to 7x build multiples. We consistently enhance the quality of our cash flow stream, and we preserve the strength of our balance sheet and our investment-grade rating.

Over time, these principles have served us well as reflected in the current quality of our cash flow profiles. Over 95% of our infrastructure revenue is driven by take-or-pay or fee-for-service contracts with the majority of those backstopped by high-quality investment-grade counterparties. Why does this matter? Well, to me, it means that our cash flow stream is both predictable and durable in any commodity cycle.

From a balance sheet perspective, we continue to target infrastructure leverage of 4x or less while maintaining an attractive payout ratio and funding a sustainable and growing dividend and a robust organic growth capital program. I'm sure we can all agree that financial discipline is critical to the success of any company and that discipline and capital allocation go hand-in-hand, and so I'll touch on that next.

So at Gibson, we're incredibly proud of our ownership culture. And as owners ourselves, we treat every dollar, whether it's revenue, cost or capital as an investment that must generate long-term value. Our capital allocation philosophy really revolves around 3 core priorities. First, we fund our dividend, ensuring we return a reliable stream of capital back to our shareholders. Second, we invest in our business. That means disciplined infrastructure growth backed up by great contracts and customers. And third, we endeavor to fund the first 2 priorities while maintaining a strong and flexible balance sheet.

Once we've addressed these 3 priorities, we return -- we look to return additional capital to our shareholders through sustainable dividend increases that are directly tied to our infrastructure growth profile, share buybacks and when the right opportunity exists, strategic and accretive M&A. This consistent approach to capital allocation gives investors confidence in our reliable yield and our ability to execute on all of our growth, and it's delivered meaningful results in our infrastructure business over time.

So you heard Curtis talk a lot and you saw a really great video about our crown jewel assets. And these assets have really been the historical engine of Gibson's growth. The critical nature of these assets and the increasing demand for our services will ensure that these assets drive our growth well into the future. Since 2020, our infrastructure adjusted EBITDA per share has grown at an 8% CAGR, which translates roughly to a 3% per share annual EBITDA increase.

I want to pause here and point that out a little bit further. We've delivered an 8% infrastructure EBITDA growth rate over the last 5 years, while divesting a portfolio of noncore assets and returning over $1.4 billion to our shareholders. So why does this matter? It shows that we have a track record of consistently delivering top-tier growth, and we've kept a focus on safety, operational efficiency and cost discipline. That focus on cost discipline has really paid off this year as in 2025, we recognized $25 million of annual savings to the business, with the impact split roughly equally between adjusted EBITDA and distributable cash flow.

We talked a lot about how 2025 has been a record year for Gibson, and it's truly been a great year. But the one thing that I'm most proud of is our cost savings initiative, and that's because it's been led by our people. Over 80% of our organization submitted an idea to this initiative, and we've implemented over 300 of their ideas this year. So why is this so meaningful to me? Well, it's because it became from all parts of our organization, truly from the ground up. It's a great reflection of Gibson's ownership culture and action. These cost savings have resulted in nearly a 30% decrease in our operating cost per barrel year-over-year, setting us up for sustained growth and strengthening both our competitive and financial position.

So let's take a look at that financial position for a little bit. Our balance sheet remains one of the strongest in the Canadian midstream space. With leverage of 3.9x and a stable investment-grade credit rating, we have both resilience and flexibility built into our model. Why does the balance sheet mean so much to me? Well, ultimately, it's what gives us confidence that we can execute on the $1 billion growth portfolio that Curtis laid out for you.

As we dive a little bit further into our funding strategy, we would expect to fund roughly 75% of our capital priorities over the next 5 years with internally generated cash flow. This aligns with our financial principles and creates ample capacity for us to fund all of our growth objectives while preserving the strength of our balance sheet. This is an incredibly rare position. We can fund the entire growth portfolio that Curtis just laid out, $1 billion, and we will still reduce our leverage over time. That sets us up for sustained success and an ability to deliver additional capital back to our shareholders over time.

So what does the future look like? Well, Curtis said it, but I'm going to say it again. We will deliver over 7% infrastructure EBITDA per share growth through 2030. This will be achieved by organic expansion, asset optimization and capital discipline. From a distributable cash flow per share perspective, this steady infrastructure growth will result in a 10% growth rate in that time, setting us up to continually sustainably grow our dividend. So from an investor perspective, what does that mean? Well, when you combine a 7% infrastructure yield with our top-tier dividend, Gibson becomes the single most compelling total return story in the entire midstream sector.

I'll leave you with one last piece. As you combine all the things that make Gibson's great, our disciplined strategy, our critical irreplaceable asset base and our financial strength, we have a clear line of sight to delivering over 100% total shareholder returns by 2030. Our model is proven, predictable and built to deliver financial returns well into the future.

With that, I'm going to turn it back to Curtis for some closing remarks.

Thanks, Riley. Well, I think Riley did a great job summing this up. We think this is a pretty compelling story to go drive this type of growth rate and the total returns that come out of that. And I got to say we're not just saying these things. We believe it. Gibson Board, Gibson management, Gibson employees are all out buying the shares. And over the last year since I joined, we've personally purchased shares over $12 million into the story, and we're proud of that. And we're proud of the fact that we're invested alongside with you, and we're going to go out and deliver on this.

So with that, I'm going to pause, and we're going to clear the state. I think we're going to take a 30-second pause, and we'll get Beth and Riley up on the stage for some Q&A. So thank you.

Thanks, everyone. So we'll have two mics in the room for the Q&A, and then we'll also be accepting questions via the online platform. So if you would like to ask a question please raise your hand and operator will bring you the microphone if you're in the room. [Operator Instructions]

Rob Catellier from CIBC. A couple of questions for you. I wondered if you could address directly the Canada, Alberta MOU that was announced last week. Obviously, there's still a lot of wood to chop and a lot of unknowns. But there seems to be an appetite generally in the industry for pipeline to the West Coast, and that could move some of the food from Hardisty over to Edmonton. Maybe that all comes from growth, but maybe there's some displacement as well. So I wanted to get your view on that and how Gibson is positioned and maybe some of the commercial strategies you're considering for -- to retain customers over at Hardisty.

Great. Thanks, Rob. So yes, the MOU announced last week, and I'd say I'd sort of step back and say, just in general, the positive climate from a political standpoint that is the best we've seen over the last 10 years. And that MOU was a great step along the way. It's quite encouraging to see the changes that we're talking about. And I would say the #1 thing for me that stood out out of the MOU was the removal of the oil and gas emissions cap. And that is really impactful for our customers. It really gives our customers the ability now to act like a normal business and actually think about deploying capital and make smart decisions to go grow their businesses and have confidence in investing capital into Canada. That was a really significant step out of that. I think there is a lot of wood to chop on what exactly the pipeline looks like.

But I'll tell you that one change alone really allows our customers now to go to work and think about growing their business with confidence. And I would say the market will decide where the best pipeline egress option is and for how that works out and whether that's to the West Coast or South or where it is. But I think it's just a great positive indicator that we're out there doing these sorts of practical things. And so that was the #1 thing.

And from a commercial strategy perspective, I think one of the benefits is we already have a great relationship with all the big producers that will be most directly impacted by this. And so we're already seeing an increase in activity from a commercial standpoint of the largest producers already thinking about seeing increased production. And so you saw in one of the slides, they're already before this thinking about sort of seeing almost 1 billion -- almost 1 million barrels a day of production coming on stream over the next 5 years -- over the next sort of just over 5 years. And so you're seeing this now added on top of that already with that same group of customers we already talked about. So we've been seeing good commercial discussions already in support of this and expect that to accelerate.

So just a quick second question here for Riley. Just in terms of capital allocation, the -- both the leverage and the payout ratio are slightly higher than your stated targets. So I'm wondering how that impacts your approach to capital allocation, specifically the dividend and dividend growth. There's obviously some short-term things that happen in the business that may not recur, but I'm just curious how you're looking at the dividend growth rate.

Yes. Thanks, Rob. Yes, when you take a look at our leverage, the overall leverage is slightly elevated, and that's really a result of our marketing performance over the last year. But when I think about the leverage that impacts our dividend and the potential to grow our dividend, I really look at infrastructure leverage, and we feel really comfortable with where our infrastructure leverage is right now. So we think about the dividend, the dividend is always going to be a Board decision whether or not we raise it, but we feel very confident in our growth rate in our infrastructure business, and that's how we kind of typically would look at dividend increases. How is our infrastructure business growing and how do we feel about that?

Let's take one from the room, and then we'll go online.

It's Ben Pham, BMO Capital Markets. A couple of questions for me. On the growth guidance, 7% plus. It's interesting to see that versus, say, a range of 5% to 7%. So the 7% plus, you think of it as a floor on growth, which is quite good compared to your peers. Can you expand on what's out of the possible? Is it going to be 10% theoretically? And what gets you there? Do you need acquisitions to get you to that a higher amount than 10%?

Yes. Thanks, Ben. So what does that look like? What does that range look like? So we feel very good about the over 7% growth rate, and that's within our control. So these are within growth projects that we see that we can go deploy and some of these internal levers we can go pull for growth within our current business that don't require capital. So we feel very good about being north of 7%. I maybe won't put an end cap on where -- how high we think we can run off that, but we feel very good about being north of 7%. And yes, any sort of complementary M&A and things like that have the ability to potentially further enhance that. But right now, when we think about the 7% target, it's really what do we have in front of us right now that we can go control and go execute on.

And maybe one follow-up from the 5% plus I recall from the Gateway tour, which isn't so long ago, you've topped it up with another 2%. Is that more of evidence you're seeing from the recent recontracting that gives you some evidence around that, just the recontracting rates may you're seeing some upward bias to it?

Yes. I think it's really all of the above. Like we're seeing very good trends on just what our commercial discussions with customers are, but we're also seeing progress on these growth projects in the background as well that's giving us confidence. And we also wanted to save a little bit for the Investor Day today, to be honest, Ben, that let's say 5% plus midway through the year. And when we have a little bit more granular detail for today, we could unveil the true target of over 7%.

And we have a follow-up question online related to the EBITDA growth guidance. So the 7% EBITDA growth guidance -- and this is from Jeremy Tonet at JPMorgan -- through 2030. Would you be able to provide some additional color on the shaping of the growth? Is it going to be linear or not?

Yes, I'll take this one. Thanks, Jeremy. Typically, when we think about the shaping of the growth, it isn't usually a linear process. It's -- it's a little bit chunkier. And so in 2026, we've said we expect to do 5% or more on the infrastructure side, and we feel great about that number. And then we see it ramping up over the years, especially as we build out the commercial backlog that we have great line of sight to. It certainly takes 2 people to do a deal. So the timing of that is always tougher to say, but we feel very confident in the 7% plus.

A follow-up on growth from Derek Tovich at Manulife. For the growth projects, will you be developing these projects on spec? Or would you proceed once you have secured commercial take-or-pay contracts? And then how do you see your marketing business growing as you develop your growth projects? And what do you see as your run rate EBITDA for the marketing business out to 2030?

We're midstreamers. So yes, thank you for the question. But we're midstreamers. We value customer relationships and long-term contracts with our customers. And so we don't do things on spec at large scale. There's small things we may do that bolt-on around our current assets, but our business is based around finding solutions that work for our customers that have good, strong contract backing. And with that is when we would go forward with those projects. And as Riley noted, that does drive a little bit of chunkiness at times to the timing of the projects, but it's important to us that the contracts are well backed by our customers.

And then the second part of the question was around the marketing business outlook as we develop our growth projects and what we see as our run rate EBITDA for the marketing business out to 2030.

Yes. The marketing business is for 2026, we expect it's going to look a lot like 2025. And through 2025, as you've all come to expect, each quarter, we're seeing sort of between a $0 million and $10 million EBITDA per quarter. We think realistically, it's going to be an efficient market again next year, and we're not currently seeing a shift from a backward dated market. And so we expect as you get into 2026, you're going to continue to see that sort of $0 million to $10 million per quarter type run rate for the marketing business. Overall, it's a relatively small part of the Gibson story. We're focused on growing our infrastructure business. And when the marketing numbers are a little bit on the down end of the cycle, that's quite helpful for our customers as it shows there's an efficient market that allows our infrastructure customers to grow.

As you look out over the longer term, we do think that inevitably, there'll be disruptions in the market. There'll be egress challenges at times in the market that will create a sort of return to different opportunities for the marketing business. It's a great part of the Gibson business and that as there's disruptions, the nature of our assets allows us to help our customers out and also provide opportunities for the marketing business. And so as we get out to 2030, we expect that to return to the $80 million range out in 2030 from a marketing contribution perspective.

Thanks, Curtis. Maybe we'll take a couple more from the room, and then we'll go back.

Robert Hope from Scotiabank. Can we dive a little bit deeper into the 2% growth that is capital free. On the pricing opportunity there, how much is related to just the normal inflationary increases there versus are there uplifts in pricing as you renew contracts? And I guess, specifically, was there an uplift at the Edmonton contract?

Do you want to talk to that?

Yes. Maybe we'll start with the Edmonton contract, and then we can kind of get into some of the granular details. So on the Edmonton contract, those are 2 great contracts that we've signed with our customers. We're excited to keep them in the terminal. And what I'd say about that is no change to your guys' models in terms of what our run rate EBITDA would look like.

And then I'll echo on how do we think about the pricing opportunity on the 2%. So a big part of this is just contractually baked in. So our typical contract from an infrastructure perspective, there is a 2% adder typically for inflationary adder per year on these contracts. And so you have this natural opportunity around that, and we need to do a good job of executing and maintaining cost discipline to be able to drive some of that to the bottom line. But that's sort of naturally baked into our contracts. We are seeing good positive indicators for pricing overall in the market. I would maybe hesitate to talk about sort of pricing-related discussions with customers in this venue, but it's -- we are -- a lot of the pricing indicator that we've baked into this is really just the contractually what's already in the contract from the 2% escalation per year.

All right. I appreciate that. And then maybe shifting the focus to Gateway. You've done a great job getting that 15% to 20% run rate EBITDA boost. When we look beyond that, what do you think the natural growth rate is for Gateway?

We called out on that 2% slide that I see that out of -- with the current assets, so what's the growth opportunity in Gateway with the current work that we've done today in Gateway with the Cactus connections and also with the work we've done with the port to be able to get night window capacity additions. So the ability to move large-scale vessels over at night, that really opens up an interesting further growth leg for that business. And so we targeted just over $20 million of upside out of existing capital that's deployed in addition to what we're already seeing in the fourth quarter. And some of that is a very good sort of a nice profitability uptick. But from a midstreamer perspective, one of the changes that you'll see over the next few years is just an increasing shift to lock that in, in a take-or-pay perspective.

And so post dredging, we realized the benefit immediately on some of the profitability increase, but some through the increasing activity at the terminal. But some of that's just coming through additional throughput fees because the original contracts at Gateway were based around an Aframax-sized vessel. And now that we've dredged and we're a VLCC sized vessel, you're getting paid on that incremental throughput, but as midstreamers would rather have it as a take-or-pay. And so as the contracts are coming up on a renewal basis, we're contracting now on a Suezmax or VLCC basis and increasing that guaranteed revenue per window.

It's Aaron MacNeil here from TD Cowen. So Curtis, you mentioned the reduction in marketing activities that's freed up terminal capacity for customers. Can you sort of dig into that a bit deeper? Curious to know what you think the order of magnitude is there?

Yes. Thanks, Aaron. Yes, it's significant enough that we've put a real focus on our infrastructure business. And we're just looking at what the opportunity set within marketing is and what we see our customers doing from a growth perspective, we saw an opportunity to better utilize some of those tankage capacity for third-party customers. And so you would have heard us in the past talk about how we're 100% utilized, and that's true. But the marketing was at times using a good chunk of that tankage. And so we scaled that back now, and we've got it sort of rightsized for the size of the marketing business, and that's opened up -- nicely opened up 15% of our capacity within our terminals to go grow with third-party customers.

Maybe I'll just jump in there, too, Aaron. Just to be clear, Curtis and I made that change at the start of the year. So our EBITDA that we've been running at on the infrastructure side is reflective of that 85% utilization. And so this is true upside to our EBITDA.

Got it. Okay. And then maybe I'll just ask the M&A question. So what type of acquisition or asset profile as possible for Gibson? And what do you think makes sense strategically?

Sure. Maybe I'll start and Curtis can jump in. But when we think about M&A, obviously, we're incredibly disciplined. I've been here for 7 years. I ran that business for a long time. We did one deal. But when we look at the opportunity set, we like assets that tie into our facilities and increase the competitive moat of our facilities. So value chain extending assets that we can drive synergies off of whether it's commercial or operational synergies that can really drive our multiple down into that 5 to 7 build multiple over time. So that's where we're focused. We think there's some out there that will be available over the next few years, but we will remain incredibly disciplined. We aren't going to go spend a number that doesn't make sense for us. We're going to stick within our financial principles, and so we'll see how that works.

I'll just add to that a little bit. So I think there's a couple of interesting things from an M&A perspective. One, from an overall market perspective out there that I think there's been a tremendous push around gas assets that a number of companies are very focused on pursuing gas assets. That actually opens up a bit of an opportunity for Gibson and a crude-focused name like us to find some very interesting assets out there in the market. So we're spending a fair bit of time thinking about what are some of those crude assets that fit in really nicely with our current assets and our current profile of what we're looking for. So we're excited about that. We're spending a bit more time on that.

And then also from an internal inside the company perspective, we did a major acquisition just over a couple of years ago with Gateway. And so a year ago, I would have said our focus is on delivering on gateway. Like we added a significant new platform. We need to do a very good job of integrating that asset and go on delivering on that and proving to the market that we did an excellent acquisition, and we did that. I think there's a resounding check market on that. I think we've done an excellent job. The team has done a great job of delivering on that asset. So I think that gives us confidence to look and what else can we add that bolts into our current story to further strengthen these core assets.

We have a quick question online, and then we'll jump back to the room. So Gower Ramesh from Picton asked about the FIDs. How far along are we on them? Are they all roughly the same stages of decision-making? Are they in substantially different stages? And what should we expect? I think this is a reference to the slide number with regards to project FIDs. No, it's not a slide number. It's the year 2026.

Thanks, Gower. Yes, the projects are progressing at various stage. I wouldn't say they're all at the same stage. We feel good about the $150 million of capital deployed in 2026. It does require customers to hit certain decision points and milestones. And so we'll see for the exact timing of the deployment of the capital, but we feel very good about the growth capital. We've got a number of interesting things right in front of us. We talked about already on the Wink-to-Gateway integration projects that are coming a little bit faster into the front end of the year and feel good about some of the FIDs that we'll see in the back half of the year. Anything else you'd add to that one?

No, I think we've said we're going to spend $150 million next year, and I think we feel very confident in that number. So that would be the last comment.

It's Maurice Choy from RBC Capital Markets. First question on -- you mentioned the positive political climate earlier on. What more do you want to see or anticipate to see from any of the federal or provincial governments?

Thanks, Maurice. What more do we want to see from the political -- maybe the removal of a tanker ban would be helpful. That's -- but I think it's just continuing progress on -- we're starting to see some clarity on some of these rules and just maybe just the consistency of that message shift. This is a significant step that we've taken. And I think people have been burned in the past. And I think they're going to need to see government political parties and all governments acting in a consistent rational way for a consistent period of time in order to have the confidence to go deploy capital in Canada. And I think these are -- we're all good capitalists making decisions and boardrooms all over the place.

And I think if you set up that sort of confidence to go deploy capital, you'll see capital come to Canada. There's just a tremendous resource. There's a tremendous opportunity. And I think it's just that consistency and confidence that you know the rules and you can invest with confidence. And I think you'll see investment not just locally, but I think you'll see global investment coming back to Canada in a bigger way with that.

Great. And just a second question, just I want to double-click on M&A comment earlier again. You mentioned that Gibson's terminals sit at the start and end of the straws that feed the global energy markets. What about the body of the straw like pipelines and whether that integrated model will be attractive to you strategically over the long term?

Yes. We see pipes fitting well into our terminals, in particular, things that connect directly into our facility. I think that's a great fit for us, and we're happy to look at those sorts of things. We operate a number of pipes already today, some smaller pipe systems that fit nicely into our assets that help us control the barrel and touch in a few different ways. And so we find that interesting.

Pat Kenny, National Bank. Just on the 2028 time frame for the DRU expansion, I was just wondering if you could help us square up your expectations for customer demand just in light of the 700,000 to 800,000 barrels a day of pipeline egress opportunities that are being talked about out there. What other attributes of the DRU expansion might customers be thinking about in light of the pipeline opportunities?

Yes. I think what's the key attribute of the DRU expansion is that it's actionable, that it's a clearly actionable solution that gives you efficient egress. Each phase gives you 50,000 barrels a day of egress capacity at a reasonable price. So a phase of the DRU is around $200 million. If you compare that against various other options to give increasing capacity out of Western Canada, it's a reasonable cost. You can execute it in under 2 years. And so I think that's going to be part of the sort of all of the above solution. And some of these projects -- these projects are all great. We love all of them. There is some uncertainty on the timing of when some of these projects hit. And so the ability to have a controllable time line with the DRU is interesting.

And the second part of that is I do think the market matters. I think we've had a number of customers that have seen a number of -- just a number of parties that have seen the impact of having an option to where you can take your barrel. And I think that's the interesting aspect of the DRU because you've got a portable product that you can put on rail, you can take it anywhere. You're not necessarily limited to where the linear infrastructure can take your barrel. And that allows you some sort of on-land options to be able to take a very custom barrel to a refiner in North America or it allows you to go access the global market with that barrel very directly and not need a new pipeline to go pull that off.

And so I think it's an interesting option. So it's really that sort of actionability nature of the DRU, combined with that optionality on the end market that makes it attractive gives us confidence that you'll see that grow. And I would shout out as well that I don't think it's an accident that we've got a significant new partner with the rail terminal attached to the DRU. We see our large producers in Strathcona, our large producers all thinking about they need all of the above solutions for getting barrels out of Western Canada. And you see them -- I see Strathcona making a bet to say that they see this is going to be part of the solution set.

Okay. That's great. And just a quick follow-up on the Wink integration opportunity that you announced today. Just in light of the current commodity price environment, the outlook for 2026, maybe you can just comment any other greenfield or brownfield opportunities that might still be in the BD pipeline in light of the current oil price environment.

Yes, there's -- maybe I'll hesitate to announce any other projects here, Pat, but there's -- yes, we feel good about the $150 million of capital deployed for this year. So there's a number of well-developed projects that we see that we can go deploy this year. I think the interesting one I'd point back at is the infrastructure arrangement that we did with Baytex that we announced that in March of this year, and we were through the build and fully deployed on that project, generating revenue for that project by November. And so it gives you a bit of a taste of -- we talked about how these small projects are impactful to the bottom line. They're also faster cycle time. And it allows us to go from sort of FID announcement to revenue generation in a faster cycle than if you're talking about a $1 billion project.

Sam Burwell, Jefferies. On that note, I wanted to ask about the producer partnership opportunity. It seems like you want to do quite a few of these over the next 5 years. So like where do you see the most opportunities? Is it in the Duvernay, Clearwater, oil sands? How many of these could potentially be on the U.S. side? Just how might some of these future partnerships look different than the Baytex partnership?

Yes. We see it on both sides of the border, Sam. So thanks for the question. So where do we see it? We see it on both sides of the border. I think the Duvernay, because we did that initial agreement there, there's other interesting efficiencies by doing other agreements in that same area. So that's an interesting area. But really, it's any area that we have the right counterparty that we can partner with that has the right sort of take-or-pay agreement structure with that agreement, and it drives barrels to our core terminals, we're interested. And so we've looked at these sorts of projects in all different areas. In the Baytex example, it's driving volume to our Edmonton terminal. We've looked at other ones that are driving it to every other terminal in the company as well. So it makes us feel good about this -- we put out there as our target that we'll do 1 to 2 of these a year over the next 5 years.

Okay. And then it seems like there's just a little bit of a deemphasis around marketing, trying to deploy more capacity towards the infrastructure piece of the business. So how much of that was informed by the experience over the past year or so relative to just the outlook that might be different with more crude egress potentially and possibly just more production but at a tighter dip?

I think the key thing on why the emphasis on infrastructure is that's the core of our business. We're an infrastructure company. Over 95% of our earnings comes from infrastructure. So we intentionally spent a lot of time talking about today. I firmly believe it's the infrastructure business that drives the value for Gibson shareholders, and we spent a tremendous amount of time on growing that business and growing the customer relationships that support a strong growing infrastructure business. The marketing business is always going to be an interesting part of the Gibson business that we get the advantage of getting some additional earnings power to the business over the cycle, but it will be lumpy. Like it's just the nature of that business.

Over the last 6 years, the Gibson marketing business contributed around $100 million a year, but it is all over the place. Like every year goes up and down. It depends on what's going on in the market from a sort of shape of the curve, refining crack spreads demand for asphalt. There's just a number of factors. Is there a disruption in the market from a pipeline perspective? There's all -- there's so many different things that it is a challenging business to predict.

And so when we look forward today, for what we know today, we feel good about sort of the guidance we're giving you today for -- we expect it's going to be a fairly muted year for marketing. But we -- as I'd say, again, we love our infrastructure business and that muted environment for marketing is a great environment for our infrastructure customers. So we feel quite fine about that.

Do we have any other questions online or in the room? Perfect. So with that, thank you again for joining, and I will ask Curtis if he has any closing remarks.

Thanks, Beth, and thank you, everybody, for joining. It's great to see everybody that traveled -- joined us online. I think I saw a huge number for the number of people that are online. Great to see that and that kind of support in person. And thank you again to the number of people that traveled a long distance to be with us here today. So thank you very much. I see 161 people. All right. Thank you.

Good morning, everyone, and welcome to the Gibson Energy Third Quarter 2025 Conference Call. Please be advised that this call is being recorded. [Operator Instructions] I would now like to turn the meeting over to Beth Pollock, Vice President, Capital Markets and Corporate Development. Ms. Pollock, please go ahead.

Thank you, Jill. Good morning, and welcome to our third quarter 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.

Thanks, Beth. Good morning, everyone, and thank you for joining us today. The third quarter 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 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 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 volumes shipped to TMX. At Hardisty, 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 Hardisty by year-end.

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 717,000 barrels per day including a new monthly record of 775,000 barrels per day of loadings in August alone, and we have maintained that 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's. These Gateway volumes represent a 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 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.

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, 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. 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 the quarter on our 5 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 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 success as an organization. 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 1/3 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 and 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 continue to strengthen the Gibson growth muscle with the appointment of Blake Hotzel as Senior Vice President, Chief -- Senior Vice President, Commercial Development U.S. based in 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. 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 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 focus initiative.

We are 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 onetime 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. Infrastructure continued 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 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.

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. 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.

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 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, 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.

Our Marketing segment delivered EBITDA 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 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. 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, 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 through our Infrastructure segment.

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, we captured onetime and ongoing cost savings contributing an impressive $9 million or $0.05 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 one that I am 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 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. 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- 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 third quarter 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 December 2 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's success. Thank you again for joining us today and for your continued support in Gibson.

[Operator Instructions] Our first call comes from the line of Jeremy Tonet with JPMorgan Securities.

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?

We want to make sure you come to the Investor Day. So we don't want to get too far ahead of ourselves there. But what I would say is the -- I wouldn't come to it expecting that you're going to hear big individual project FIDs. Like we're not intending to announce a significant sort of $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. 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 that we'll be working through. So I wouldn't come expecting a specific project FID announcement.

What you can expect to hear is 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 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. And then 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.

That's helpful. And 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?

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 a bigger way. But I think you do start seeing it on the horizon and you start seeing people acting in preparation of those egress challenges coming. And so I think that will make for some interesting opportunities for Gibson. So 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.

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

The next question comes from the line of Aaron MacNeil with TD Cowen.

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?

Aaron, really, we always have contract renewals that are happening. So 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 '26, better than what it has been in '24 and '25.

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?

Yes. We talk about sort of half and half. I don't know if we're given such a -- it's sort of scattered over a number of different buckets. I don't know if it's worth getting into the specifics of what are the nonrecurring ones, but it's about half and half. We'll get into that a bit more at IR Day. I would call out 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. Riley 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. 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. We're improving some connectivity in the Hardisty facility. It was about an $800,000 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 $400,000 on that project and cut time out of the scope, thanks to that.

I think these stories, so that would be a great example of a non-recurring cost impact in the quarter that will be realized -- 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 -- I think the cost program just elevated some of these conversations and empowered people to lean in and suggest different ways of doing things. So shout out to Kevin Buelow. Kevin is also one of the newest members of the Hardisty Town Council. So shout out to Kevin, he's a great long-term employee of Gibson.

The next question comes from the line of Sam Burwell with Jefferies.

First off, on exports, a little bit of volatility month-to-month through 3Q, even post dredging. So 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 like the EBITDA sensitivity to this volumetric volatility?

Sam. So from a Gateway volumes, super interesting. Obviously, post dredging, we've seen an uptick as we take that facility 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 since we saw immediate throughput increase. Not every vessel going through is a VLCC, so you don't see it all the time and not every customer has all that inventory available every time. And so that you don't always get it. But we saw from time of dredging, so pre-dredging, we would have been in the 500,000 range per day on average unloading.

Post dredging over the last 5-ish months that it's been -- 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. But some of that is really just our customers' programs and when they're timing. And so we've seen a fairly consistent volume. It's actually quite remarkable that we've been able to do the 725,000 on average without the Cactus connection that 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 and our customers to keep up 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 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. It's been challenging to maintain that -- 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. 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's -- at the end of the day, it's MVC minimums that drive the bulk of the revenue at Gateway. And so there is sometimes month-to-month variations where customers choose for whatever reason, not to take advantage of their MVC.

Okay. Perfect. Understood. On marketing, I appreciate the comments you guys gave earlier and that makes sense that the outlook is challenged given where the dips are. But just curious if there are any other headwinds or tailwinds that you see outside of kind of the headline dip, 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?

Yes, there's a few things, but I caution that they're still early on that. But 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. And so obviously, that's a big deal. We've been very backwardated 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. And 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. So that's a nice indicator for us.

And then the other one is just around Gateway and that we've -- 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 you'll see us do more out of our U.S. business to grow a bit of a market business that supports Gateway throughput.

The next question comes from Robert Hope with Scotiabank.

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?

Yes. On Gateway, obviously, a 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 that we've got this dredged facility and all this connectivity, we can really move into some recontracting with customers to -- at larger MVCs and that the original MVCs at the facility were done at an Aframax size vessel. Now that we're fully VLCC ready, as recontracting comes up, there'll be larger windows being contracted.

And 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. And so 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. So 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. And so 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. 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.

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 would like to get more of those barrels across the dock. And so we're doing a few things around that as well to sort of unlock some of that potential for the Eagle Ford.

All right. And then maybe on Wink, you've highlighted 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?

Wink has been -- it's an interesting one for us. So early on with Gateway, we definitely underpromised around what is the linkage between Gateway and Wink. And it was still, still early, we're learning what exactly that potential was. But in the back of our minds, I think there -- we think there's 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. So we're seeing 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's also nicely supports Gateway. So you'll see us leaning into that one a little bit more.

And 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 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 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. And so I think increasingly, the importance of our service increased a bit. When 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 gathering. It's a relatively small asset for us, but we've been pleased with how it's performed.

The next question comes from Maurice Choy with RBC Capital Markets.

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

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. 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 let's go really -- let's accelerate this. There's an opportunity to accelerate our growth and some of the things that we're doing. 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 now, 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 excellent M&A and going and integrating it well and delivering on it but we're not going to force that. 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.

If 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 and the valuation has to make sense. So in saying all that, I think we'll be pretty focused on growth capital, but have an eye on is there a potential M&A out there that's crude focused that makes sense for us.

Understood. And 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 3x 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. So would you view that to be consistent with your prior messaging? And if not, is it merely the marketing outlook having changed a little bit for 2026? Or are there other drivers that you highlight?

Thanks, Mau. 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. And really, the main impact driving that downward is realizing the benefit of all the great capital projects we've got here in 2025. As that EBITDA comes online, we'll drive our leverage back down to the range that we like. So we feel very comfortable with our long-term deleveraging plan, and we expect to achieve that in the next -- first half of next year.

The next question comes from Benjamin Pham with BMO.

I wanted to follow up on the last question and maybe just touch base on your thoughts on the -- your current leadership team. You effectively have completed so what you need to place on your team. And 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 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 -- I think 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. And so we're excited about that. In particular, with Blake joining now. 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 -- part of bringing Blake in is 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 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 going well.

The second part of that is, boy, we're relevant now. Like we're exporting 1 in 5 barrels out of the U.S. goes through the Gibson Gateway facility. So we're 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 could we do that could expand that growth down in the U.S. And so I think that's really what his mandate is. And in saying that, it's -- 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 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 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.

Think what ideally, not necessarily putting numbers at this point in time that you could see long term a nice balance mix of sanction projects between both countries?

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. 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 has 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.

Okay. Got it. And 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, I just simply look at your numbers, infrastructure year-to-date, year-to-year, it's up 2%. And I understand there's some dredging impacts there. There's asset sales, but then you got the Edmonton project and you got a big ramp-up in Gateway. So is that I guess maybe just unpack that a bit of just the disconnect between volumes and EBITDA growth? And then is the 15% to 20% then is that more -- it sounds like it's more of a back-end uptick then depending on your comments on the first point?

Yes. I think you've got -- there's -- 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 recontracting, when does the next tank demand come on as you see our customers getting more and more active in the terminal. And then on top of that, when you get into situations where you get into egress challenges in the future, over 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 -- 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 MVC numbers.

So that's a little bit of how I'm thinking about the volumes. The 15% to 20% marker on Gateway, we feel very good about that. Well -- so 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 at some point in the future here in Q4. 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 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 '25.

The next question comes from Patrick Kenny with NBCM.

Just on the Edmonton Terminal, see the throughput being up nicely with TMX and then 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?

Yes, 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 2 tanks for Cenovus on 15-year agreements, we did the prework to get ready to build 2 more tanks as we see volume and activity continue to increase, I think the probability of adding those 2 tanks just increases as well, whether -- I think there's sort of 2 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.

But 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 netback on what they -- on how they're shipping on TMX. And I think there's things we can do to help them on how they're shipping on TMX to sort of offer some upside. And so I think that provides a bit of a growth opportunity for us with our customers. But 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 has been operating.

Okay. That's great. And then 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. 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 we look into next year. And 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?

Yes. 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 Gateway. One, just using the current capabilities that we've already got. But 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.

Got it. And then 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 tuck-in acquisition opportunities?

Yes. 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. So 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. So to the extent that we find great tuck-in acquisitions or opportunities or potential partnerships, we will be happy to execute.

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's Q3 2025 Earnings Call. Additional supplementary information is available on our website at gibsonenergy.com. For follow-up questions, please reach out to [email protected]. Thank you.

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