Gibson Energy Inc.

Good morning, my name is Pam and I will be your conference operator today. At this time, I would like to welcome everyone to the Gibson Energy Q2 2022 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 would 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 Hitzchest, Vice President, Strategies, Planning, and Investor Relations. Mr. Hitzchest, please go ahead.

Thank you, Operator. Good morning, and thank you for joining us on this conference call discussing our second quarter 2022 operational and financial results. On the call this morning from Gibson Energy are Steve Spaulding, President and Chief Executive Officer, and Sean Brown, Chief Financial Officer. Also in the room from the senior management team are Sean Wilson, Chief Administrative Officer and Sustainability Lead, and Kyle DeGrucci, Senior Vice President, Commercial. Legislators 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. Good morning, everyone, and thank you for joining us today. I'm pleased to say we had another solid quarter with both infrastructure and marketing segments in line with our expectations. We view our adjusted EBITDA of $114 million and distributable cash flow of $74 million as strong results and are very pleased with our solid financial position exhibited by by leverage ratio of three times, which is at the bottom end of our target range, and our payout ratio of 73%, which is also at the lower end of our 70 to 80% target range. Given this solid financial position, we've been able to meaningfully add to the amount of capital we return to shareholders. So far this year, we've increased our dividend by 6%, and on top of that, we have already bought back $60 million in shares, or 1.6% of our outstanding shares. And in the back half of this year, we would expect to continue these repurchases, targeting that $100 million for the year. We're also seeing strengthening performance in our business. And to the extent that this improving outlet materializes, we see the potential to increase this targeted amount. On the project execution side of our business, we've had several noticeable milestones. We successfully completed the Moose Jaw turnaround and used the downtime as an opportunity to perform required connections to complete our plant expansion and fuel switching project, where we capture the NGLs being used as fuel and replace them with less expensive natural gas. It also increases our capacity of the plant by an additional 10% to give us just over 24,000 barrels per day. The project also has some pretty good significant savings in our fuel cost and a reduction in our emission intensity by 15% per barrel. At Edmonton, the biofuels blending project was placed in service at the start of the quarter. This project was delivered on schedule and on budget. It was sanctioned early last year under the MSA with Suncor, which is our principal customer at the terminal. Capital cost was roughly equivalent to one and a half tanks. And it's under that 25-year term. And one of the really big benefits is it's ESG positive and aligned with energy transition. At Edmonton, we continue to progress construction of that TMX-related tank, and it's expected to be placed in service early next year. Shifting to our outlet for next round of capital at Edmonton, we continue to hold discussions for additional tankage. We believe Gibson is very well positioned to support shippers on TMX, optimize cruise netbacks, and meet stream requirements. We remain optimistic that we can sanction additional tankage over the next several quarters. With clear visibility of a TMX in-service date being important, to several of our potential customers. We also believe we'll continue to build out additional infrastructure at Edmonton under the MSA. On the DRU at Hardesty, we continue to believe that the economics for the value chain will remain strong relative to pipelines well into the future. Discussions have advanced, and I'm very optimistic we will sanction a second 50,000 barrel a day facility under a long-term contract prior to the end of the year. On our development opportunities for transitional energy, we continue to advance numerous discussions with partners on the development of an HRD or hydro-treated renewable diesel facility. We see it as an attractive opportunity in an energy transition aligned value chain. There is still significant work to be done here. and any sort of FID is likely going to be mid-next year. If we do proceed, we will ensure that this project and its approximate size to our company are aligned, especially given the current inflationary environment and the returns that will be very attractive on a risk-adjusted basis relative to our capital allocation opportunities, including share buybacks. And while renewable diesel is interesting opportunity, our core focus on the commercial side remains deploying that $150 to $200 million in growth capital each year in our existing value chain at those five to seven times build multiples and under high quality long-term contracts with investment grade partners. For this year, recall that we set that $150 million in growth capital range in December. It was contingent on timing of sanctioning additional projects through the balance of the year. As I discussed earlier, the tank and the DRU expansion opportunity has been pushed back to later in the year or next year. The lagging effects of the slowdown we saw in the sector during COVID has persisted longer than we expected and is reflected in the tepid increase in capital redeployment in the upstream sector. We now expect to deploy $100 to $125 million in growth capital this year, with where we end up in the range still dependent on sanctioning new projects and how much work we're able to complete by the end of the year. To close, we feel we had another strong quarter. Both our infrastructure and marketing businesses are within line of our expectations. We continue to execute operationally, successfully completing the Moosejaw turnaround, bringing both the biofuels blending and the fuel switching projects into service. Our financial position is very strong, which has allowed us to return more capital to our shareholders. I will now pass the call over to Sean, who will walk us through our financial results in more detail. Sean? Thanks, Steve.