Gibson Energy Inc.

Good morning, everyone. Welcome to the Gibson First Quarter 2023 Conference Call. Please be advised that this call is being recorded. I would now like to turn the meeting over to Mr. Mark Hischus, Vice President, Strategy, Planning, and Investor Relations. Mr. Hischus, please go ahead.

Thank you, Operator. Good morning, and thank you for joining us on this conference call discussing our First Quarter 2023 operational and financial results. On the call this morning from Gibson Energy are Steve Spaulding, President and Chief Executive Officer, as well as 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.

Thanks, Mark. Good morning, everyone, and thank you for joining us today. We are pleased to report another strong quarter demonstrating the consistency of our infrastructure business. While setting a new high watermark for total adjusted EBITDA, at $155 million for the quarter. This outperformance above our previous outlook was primarily driven by opportunities that developed throughout the quarter within our crude marketing and our refined products business and demonstrates the value of having a team that can capture opportunities when they're available in the market. Our distributable cash flow of $107 million in the quarter has pushed our payout ratio down to 56% which is well below 70 to 80% target range. Our leverage ratio also decreased to 2.4 times, which is again, well below the bottom end of our target range, truly demonstrating what we think is a market leading financial position, which has resulted in us doubling our buyback target for the second quarter to $50 million and increasing our full year target to up to $125 million. With the stock yielding around 7% and the increase in the buyback target representing another 4% approximately, that implies a return on capital of over 10% per share this year. With growth on top of that, which we believe is a very competitive in the infrastructure space,