The following is a summary of the Gibson Energy Inc. (GBNXF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Gibson Energy reported a strong Q3 with adjusted EBITDA of $151 million, slightly up from the previous year, primarily due to increased contributions from the Infrastructure segment.

• The Infrastructure segment recorded $150 million in adjusted EBITDA, $10 million higher year-over-year, driven by a full quarter contribution from the Gateway acquisition.

• Marketing segment EBITDA was approximately $14 million, declining due to softer demand in refined products and fewer crude marketing opportunities.

• Distributable cash flow was approximately $88 million, impacted by returning to normalized income tax levels and increased capital expenditures.

Business Progress:

• Construction of two new tanks at the Edmonton Terminal is on schedule with expected operational start by year-end, enhancing storage and connectivity.

• The Cactus II connection at the Gateway terminal, expected to service in Q3 2025, will provide access to approximately 700,000 barrels a day of incremental Permian supply.

• Ongoing discussions for extending a second contract at Gateway Terminal, leveraging the terminal's increased capabilities from strategic upgrades like the potential dock deepening.

Opportunities:

• Growth in infrastructure driven by strong customer demand and strategic asset enhancements such as the Edmonton Terminal expansion and Gateway terminal connections.

• Pursuit of incremental growth through capital projects focused around existing asset bases, with considerations on energy transition aligned with infrastructure fundamentals.

Risks:

• Marketing segment performance anticipated to be modest in the near term due to low Western Canadian storage levels and soft drilling fluid demand, affecting volatility and profitability.

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