Gibson Energy Inc.

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

Thank you, Operator. Good morning, and thank you for joining us for this conference call discussing our Third Quarter 2023 operational and financial results. Speaking on the call this morning from Gibson Energy are Steve Spaulding, President and Chief Executive Officer, and Sean Brown, Senior Vice President and Chief Financial Officer. We have the rest of the senior management team in the room as well to help with questions and answers as required. Listeners are reminded that today's call refers to non-GAAP measures, forward-looking information, and pro forma financial information. Proforma information is derived in part from historical financial information from the South Texas Gateway Terminal LLC financials and is subject to certain assumptions and adjustments and may not be indicative of actual results. Descriptions and qualifications of such measures and information are set out in our investor presentation available on our website and our continuous disclosure documents available on CDAR+. Now, I would like to turn the call over to Steve.

All right, thank you, Beth. Good morning, everyone, and thank you for joining us today. The third quarter of 2023 was a transformative quarter for our company, marked by the successful closing of the Gateway Terminal on August 1st. As you may recall, prior to this acquisition, we had consistently communicated that any M&A opportunity would need to be on strategy and deliver high-quality cash flows through take-or-pay contracts with high credit quality customers. This transaction met all of these objectives and provides us an additional core platform that is competitively advantaged. I'm also pleased to report that over the two months since closing the Gateway acquisition, the asset has exceeded our expectations with respect to both the financial and operational performance. During the month of August, the terminal loaded 12 very large crude oil carriers, or VLCCs. That's a record for the facility and something that sets us apart from other terminals in Corpus Christi since we are one of only two facilities in the Texas Gulf Coast with the ability to load VLCCs. This high watermark also speaks to the continued demand for the terminal services and our facility located and the advantaged outer harbor of Ingleside. At the same time, our focus is on expanding the contracted loading windows and committed volumes per loading window at the facility. During the quarter, I'm excited to share that we hired a new head of commercial for Gateway, Andrew Kaplan. He joins us from Buckeye, where he was commercially responsible for the Gateway terminal. He brings a solid relationship with our existing Gateway and a deep understanding of Gateway's competitive advantages and the overall value proposition, which will ensure we retain these customers and attract new ones to continue to grow the terminal. Since we acquired the facility in August, we've met with all six of the existing customers at the facility, which as a reminder, all of our existing customers, all of the existing customers at the terminal are customers of ours in Canada, four of which are among our top 10 customers. While negotiations do take time, the constructive market dynamics in the region have increased our optimism around our ability to enter new contracts and or extend existing contracts at or above current rates. Turning to our financial results, which include two months of contribution from Gateway, We achieved consolidated adjusted EBITDA of $150 million for the quarter. This performance, above our previous outlook for the quarter, was driven by a strong infrastructure quarter, as well as a solid quarter for marketing. Our distributable cash flow of $93 million in the quarter resulted in a payout ratio of 61%, well below our 70% to 80% target range. Our leverage ratio pro forma where the full-year contribution from Gateway acquisition was 3.1 times, which is at the low end of our 3 to 3.5 times target. From an ESG perspective, we had some notable milestones during the quarter as we announced a 15-year renewable power purchase agreement with Capstone Infrastructure and Salt Ridge First Nations. In conjunction, we also released our new sustainability update report. The power purchase agreement demonstrates Gibson's commitment to low carbon transition and achieving our emissions reduction target, including net zero by 2050. Power prices under this agreement are below current rates and competitive in context to historic rates in recent years. In summary, we are proud of Gibson's third quarter financial and operational results. We successfully closed the Gateway acquisition during the quarter with financial results exceeding our expectations. Infrastructure continued to deliver consistent performance with a non-marine infrastructure business ahead of Gibson's previous expectations for the quarter and a strong contribution from Gateway from the first two months of ownership. Marketing delivered in line with last quarter's guidance, benefiting from the storage opportunities and strong refined products volumes. We made meaningful strides towards our emissions targets, including net zero by 2050, by entering into a renewable power purchase agreement during the quarter. I'll now pass the call over to Sean, who will walk us through our financial results in more detail.