Gibson Energy Inc.

Good morning, everyone, and welcome to the Gibson Energy second quarter 2023 conference call. Please be advised that this call is being recorded. And I would like to turn the meeting over to Beth Pollack, Vice President, Capital Markets and Risk. Ms. Pollack, please go ahead.

Thank you, Sylvie. Good morning, and thank you for joining us on this conference call discussing our second quarter of 2023 financial and operational results. Speaking on the call this morning from Gibson Energy are Steve Balding, President and Chief Executive Officer, and Sean Brown, Senior Vice President and Chief Financial Officer. We also have the rest of the senior management team in the room to help with questions and answers as required. 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 would like to turn the call over to Steve.

Thanks, Beth. Good morning, everyone, and thank you for joining us today. We are pleased to deliver not only another strong quarter from a financial and operational perspective, but also the acquisition of the South Texas Gateway Terminal and contracting of additional storage at our Edmonton Terminal. The Gateway Terminal is in Ingleside, Texas, at the port of Corpus Christi. Gateway is a world-class Gulf Coast terminal, which complements and enhances our existing infrastructure position across North America, including Hardesty and Edmonton, and provides us with a new platform for growth connected to the prolific Permian Basin. The terminal is strategically advantaged as one of the only two terminals in Texas with the ability to load very large crude carriers, also known as DLCCs. Further, the cash flows associated with the asset are underpinned by take-or-pay contracts with investment-grade or high-quality counterparties, many of whom Gibson has long-standing relationships with. We are confident that moving forward, Gateway will serve as a platform for growth for Gibson and can be expanded upon to meet the growing needs of both new and existing customers. In the near term, we will be actively pursuing the sale of additional loading windows at the terminal, and we will work with our customers to provide commercial opportunities to blend and extend their existing contracts. Additionally, post-close, we'll seek to increase throughput and have the ability to add over 1.5 million barrels of storage at the terminal to support our customers' requirements. We expect the acquisition will close in the very, very near term and are confident it will provide us with considerable growth opportunities in the future and look forward to welcoming our Gateway and its new employees into our portfolio. From a commercial perspective, during the second quarter, we announced the expansion of our base infrastructure business with the sanctioning of two new tanks at Edmonton. representing 870,000 barrels of new tankage, all of which are underpinned by a 15-year take-or-pay and stable fee-paced contract. These two tanks are expected to be placed into service in late 2024, and along with another Edmonton tank being placed in service Q4 of this year. The new tankage will support our customers' shipments on the TMX pipeline and demonstrate the strength of our Edmonton franchise, and the service offering we provide to our customers.