Gibson Energy Inc.

Good morning. My name is Sylvie and I will be your conference operator today. At this time, I would like to welcome everyone to the Gibson Energy Q3 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 would like to ask a question during this time, simply press star 1 on your telephone keypad. And if you would like to withdraw your question, please press star then number 2. Thank you. Mr. Hitzchess. You may now begin the conference.

Thank you, operator. Good morning, and thank you for joining us on this conference call discussing our third 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, Senior Vice President and Chief Administrative and Sustainability Officer, as well as Kyle DeGrucci, Senior Vice President and Chief Commercial 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. Steve? Steve?

Thanks, Mark. Good morning, everyone, and thank you for joining us today. I'm very pleased with the performance of the business during the third quarter. Our infrastructure segment continues to provide consistent, stable cash flow and was very much in line with our expectations. On the marketing side, on our last call, we provided our outlet for a much stronger quarter, which we outperformed. As the business environment improved over the quarter, we ended up well above our expectations for both our refined products business and our crude oil marketing. Our distributable cash flow of $115 million represents the strongest quarter ever for Gibson. An adjusted EBITDA of $149 million would also be one of the strongest for the company. Perhaps more important is our infrastructure reaching a new high-water mark when excluding one-time items. While we certainly had a strong quarter from marketing, it's this rateable infrastructure performance that supports our dividend and capital structure. These strong results further improve an already strong financial position, our leverage ratio has decreased to 2.7 times, which is below the bottom end of our target range. And our payout ratio decreased to 64%, which is also the lower end of our target range of 70 to 80%. Given this strong financial position and consistent Consistent with our plan, in the event we realized improved business performance, we have continued to be very active with share repurchases to increase the capital we return to our shareholders. Since the start of the third quarter, we bought back $41 million, or about 1.2% of our outstanding shares. With this buyback activity in the quarter, We have now reached the full-year target of $100 million, with buybacks to date representing just under 3% of our outstanding shares. And we will continue these repurchases through the balance of the year, targeting up to $150 million for the year, which would represent the repurchase of nearly 4.5% of our outstanding shares. which we see as meaningful and reflective of a robust third quarter financial performance, as well as our current view of another strong financial performance in the fourth quarter. We also see it as acting as our commitment to return capital to shareholders when appropriate and within our capital allocation framework. We consider our share repurchase as complementary to our dividend, which we increased by 6% earlier this year and will review again in February. I would remind everyone that both management and the board sees value in providing a steady growing dividend, especially in the current inflationary macro environment. Fortunately, If we buy back 4.5% of our shares, it also reduces our dividend costs by that same percentage. In terms of running the business, our major focus right now is on securing additional growth projects. Our goal remains to deploy $150 to $200 million each year. And we are increasing our commercial focus by developing a new ventures team to review and develop opportunities outside our existing footprint and in an energy transition. In terms of sanctioning the next round of capital, at Edmonton, we continue to hold discussions for additional tankage. We believe Gibson is well positioned to support shippers on TMX, optimize crude oil netbacks, and meet stream requirements. We remain optimistic that we can sanction an additional two tanks. In terms of timing, clear visibility to TMX in-service date remains important to our potential customers, meaning sanctioning decision has gotten pushed into 2023. We also believe we continue to develop out additional infrastructure to Edmonton under the Suncor MSA. As we saw with the biofuels blending project, which had a capital cost equivalent to roughly one and a half tanks, opportunities under the MSA can be sizable. And we are in the early stages of a potential project under that MSA in 2023. On the DRU, we continue to advance discussions for an additional phase and continue to believe that economics for the full value chain will remain strong relative to pipelines over the long term. We'll provide a more fulsome capital outlook for our 2023 capital in early December. Like this year, capital for 2023 will be contingent on sanctioned additional projects. Given we expect it to be below our internal funding capacity, we expect buybacks will continue through 2023. We continue to advance our ESG journey at Gibson. And we released our second sustainability report. We believe the report showcases the progress we've made embedding sustainability in our business and culture, as well as working towards our 2025 and 2030 targets and our roadmap to net zero. On the safety side, we are achieving the best health and safety performance in our company's history. We view both our lost time injury frequency and our recordable vehicle incident frequency rates of zero for employees and contractors for the second year in a row as an outstanding result. Also, our improvement in our total recordable injury frequency, or TRIF, is a rate at around .4 for employees and contractors. This is top quartile safety performance among our peers in Canada and North America. We remain vigilant and will continue to develop and mature our safety culture with a focus on zero incidents. It's also worth noting that we have already achieved both our board diversity targets and one of our senior leadership targets. having at least one racial and ethnic minority or an indigenous person on the board, of having 40% women on the board, both ahead of our 2025 target, and having at least one racial or ethnic minority person or indigenous person hold an SVP title or above. Of important note, 50% of our leadership team, vice president and above, identify as female or underrepresented. We are proud of our commitment to our communities. We operate in and around, having made $1.5 million in contributions to nonprofit organizations this year, and the average employee having volunteered at least 12 hours across the year. As we continue our ESG journey, we recently released our indigenous engagement principles. This will help us continue to advance our indigenous relations effort and further our relationships with indigenous communities in and around our areas of operation. To close, the business certainly delivered a strong quarter. Infrastructure reached a new high. strong performance across the asset base. The marketing segment was well above our expectations. And as a result of our strong business performance, we stayed true to our commitment to return capital to shareholders through the buyback of just under $100 million to date and an expectation to buy back up to an additional $50 million through the remainder of the year. I'll now pass the call over to Shawn who will walk us through our financial results in more detail. Sean. Thanks, Steve.