Gibson Energy Inc.

Good morning, my name is Pam and I will be your conference operator today. At this time, I'd like to welcome everyone to the Gibson Energy Q4 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star then the number one on your telephone keypad. If you'd like to withdraw your question, please press star then the number two. Thank you. I would now like to turn the meeting over to Mr. Mark Hitchchast, Vice President, Strategies, Planning, and Investor Relations. Mr. Hitchchast, you may begin your conference.

Thank you, Operator. Good morning, and thank you for joining us on this conference call discussing our fourth quarter and full year 2021 operational and financial results. On the call this morning from Gibson Energy are Steve Spalding, President and Chief Executive Officer, and Sean Brown, Chief Financial Officer. Listeners are reminded that today's call refers to non-GAAP measures and forward-looking information. Descriptions and qualifications of such measures and information are set out in our continuous disclosure documents available on CDAR. Now, I'd like to turn the call over to Steve.

Thanks, Mark, and good morning, everyone, and thank you for joining us today. I'm pleased to say we delivered another solid quarter. keeping what we see as a strong year, especially from our infrastructure segment. As such, we are in position to continue a consistent annual dividend growth. With the increase this year of $0.02 per share per quarter to $0.37 per quarter per share or an annual amount of $1.48 per share. As important, we saw the restart of commercial discussions and a pause brought on by the onset of COVID, which led to the sanctions of several new projects during the year and the development of projects we expect to sanction in 2022. Also, we made some big strides in advancing ESG and sustainability at Gibson. Looking briefly at our financial results, Infrastructure adjusted EBITDA of $436 million for the year is a very strong result. That's $63 million, or 17% increase over 2020. Also notable is if you look at the infrastructure growth over the past five years, you see a figure of the same amount of 17%. which truly reflects our ability to deploy capital in what we think are the highest quality projects in our sector. On the marketing side, adjusted EBITDA of $43 million was reflective of a challenging environment. We continue to see marketing as an opportunity-driven business, but we won't stretch or take additional risks just to hit a number. Relative to 2020, our adjusted EBITDA stayed flat. But the decrease in marketing numbers was offset by higher quality long-term cash flows from infrastructure. In fact, infrastructure represents now 91% of our adjusted EBITDA. Despite that challenging marketing environment, our payout ratio of 70% remains near the bottom of our target range of 70 to 80%. The leverage of 3.2 times is within our three to 3.5 times target range. Given our solid financial position, we also want to make sure we continue to adhere to our capital allocation philosophy. Our priority remains infrastructure growth capital focused on high quality cash flows. and targeting that five to seven times billed multiple. At the same time, we also recognize that many investors would also like to see increased return on capital from the sector as a whole. As I mentioned, we increased our dividend more than any of the past years, and Sean will discuss a stock buyback strategy. On the operational front during the year, we completed the construction of the DRU on schedule and within our initial capital range. ConocoPhillips has now been moving neat bitumen to the U.S. Gulf Coast for roughly six months now, and they're seeing a strong market develop for their product. Also, refinery customers are seeing meaningful improvement in refinery runs versus dill bits. all of which further demonstrates the DRU competes, if not beats, pipelines on a head-to-head basis, which is helping us advance discussions for additional phases. On the tankage front, we were very pleased to announce the sanction of a new tank at Edmonton during the third quarter. With this tank, we welcome a new investment-grade customer to our Edmonton terminal. And we continue to be in discussions potential Edmonton customers, including TMX shippers. We believe Gibson is well positioned to support shippers on TMX, optimize their crude netbacks, and meet the stream requirements. At the Edmonton Terminal, one of the commercial achievements of 2021 was the signing of an MSA with Suncor, our principal customer at the Terminal. The agreement simplified several contracts into one contract and extended their aggregate terms. As part of the agreement, we announced the sanction of a biofuels blending project. It was roughly equivalent to one, one and a half tanks in terms of capital. And it's ESG positive and aligned with energy transition. One of the things I really like is that 25-year term. execution of the agreement and the sanctioning of the biofuels project demonstrates the long-term needs of Edmonton Terminal by one of the most prominent integrated producers in Canadian energy. We believe we'll continue to build out additional infrastructure to support their needs in energy transition fuels over the coming years. We're dedicated to presenting energy transition infrastructure opportunities. We put together an energy transition team to identify and develop opportunities in this space. Most notable is the potential renewable diesel facility that we continue to advance. If we're successful, we expect to generate very attractive risk-adjusted returns for our shareholders and likely push us back to that $300 million in growth capital per year we were at prior to COVID. This is a very interesting opportunity. There's still a lot of work to be done. We continue to look for M&A opportunities that fit our strategy and provide consistent and quality cash flow. It's tough to find that match where it fits your strategy, your cash flow quality, and evaluation with a willing seller. Shifting to ESG. This is another part of our business that we meaningfully advanced in 2021. We set on each of the E, S, and G fronts with deliverables in 2025 and 2030. As we believe, it is important that we have a credible near-term targets to drive change today. And as part of that, 35% of our short-term compensation is tied to ESG and safety metrics. We were the first public energy company in North America to fully transition its principal syndicated revolving credit facility to a sustainability-linked facility. On the east side, in terms of the highlights, we were targeting reducing our overall emissions intensity by 20%. in eliminating our scope two emissions by 2030. We've made a net zero commitment by 2050. A key focus for us is setting each of our targets with a credible path to get there. On the S and G front, we've made some real progress over the past 12 months. We're well on our way with over 45% of our vice presidents and us being women or ethnic representation. Our target is for women to comprise at least 43% of the overall workforce by 2030. We continue our focus on communities in which we operate. We seek to give at least $5 million in community initiatives through 2025 and at least $1 million per year which is really pretty good when you think of our relative size. I'm most proud of our employees, how they're contributing and participating in community investments. We had over 95% participation by our employees. That's really outstanding. On the safety front, we achieved a TRIPS score in 2021 of 0.43, which is the lowest score and our company's history, and puts Gibson in the top quartile of our US and Canadian industrial peers. Given all these efforts, we're very pleased that our work was recognized by third-party rating agencies, which provided external confirmation that we're meeting our overall goal of being an ESG leader in our sector. For example, towards the end of the year, MSCI upgraded our rating to AAA. This is their highest rating in our sector, and we are the only company in North America to receive this leadership rating. We were also awarded the Bronze Class Distinction in S&P Global 2022 Sustainability Yearbook. where only four other companies globally received this Medal of Distinction within the oil and gas storage and transportation industry. We believe we have well-positioned Gibson as a great fit for the ESG-minded investor. We have the lowest carbon intensity among our peers, and the steps we've been taking have earned us very strong ratings. from the major agencies. Again, we feel we've had another strong quarter, contributing to a good year and remain very well positioned going forward. Our infrastructure business remains strong and our run rate increasingly notable from the startup of the DRU. We will continue to have growth opportunities around our traditional assets I'm excited about the new growth opportunities around the DRU and in the energy transition space, and potentially some M&A opportunities that fit us. It's nice to be recognized as one of the top ESG companies in our space. I'll now pass it over to Sean, who will walk us through our financial results in more detail. Sean?