Why Invest in
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Favourable North American Crude Oil and Liquids Industry Fundamentals
- Oil sands production in Canada expected to increase from 1.3 million barrels per day in 2009 to 3.5 million barrels per day in 2025
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Increase of 157% and a compounded annual growth rate of 6.1%
- Increased activity forecasted in key oil producing regions in Canada and the U.S. including the Bakken, Cardium, Eagle Ford, Niobrara and Viking stemming from ramped up drilling budgets from industry leaders
- Increased production and rising crude price environment drives demand for all facets of the midstream value chain, including storage, transportation, distribution, processing, and refining
- Price differentials between most crude oil streams tend to have wide historical ranges
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Wider differentials means arbitrage between crude oil grades is more profitable
Strategic Infrastructure Asset Base Which is Well Positioned for Growth
- Gibson’s infrastructure assets provide many essential services as oil progresses from the wellhead to the refinery
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By “touching” the barrel multiple times, Gibson earns revenues for each service along the value chain
- Gibson’s assets are located in the Western Canada Sedimentary Basin and key oil producing regions in the U.S. where production growth is expected
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Oil Sands, Bakken and Cardium growth in Canada
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Niobrara, Granite Wash, Eagle Ford and Bakken growth in the U.S.
- Strategic asset foothold, including Hardisty and Edmonton terminal locations at the hub of the energy industry in Canada, provides stable, fee-based cash flow and unique insight into the operations and service needs of Gibson’s customers
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It would be both time consuming and costly to replicate the Gibson footprint
Diversified, Stable Cash Flow Stream
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By integrating its services, Gibson is able to direct barrels internally enabling more “touches” of each barrel, thereby providing more revenue
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Operated as an integrated network, Gibson’s assets provide a diversified and stable stream of cash flows
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Recent financial results demonstrate the ability of Gibson to generate stable cash flows in varying commodity price and economic environments
Proven Track Record of Consistent Growth from Both Organic Projects and Acquisitions
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Organic Growth – Substantial growth originating from customer partnering on projects and proactively identifying customer needs and initiating projects to meet those needs
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Gibson has effectively responded to growing oil sands production with expansion of its Hardisty Terminal
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Hardisty West Terminal joint venture with Suncor
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Approximately 229 acres of undeveloped land in Hardisty and Edmonton positions Gibson to capitalize on future expansion opportunities
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Gibson’s Canwest Propane and Truck Transportation operations have grown by adding infrastructure to keep pace with increasing production volumes from conventional and unconventional production
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Acquisitions – Demonstrated the ability to identify and execute accretive acquisitions
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During the three years ended December 31, 2010, Gibson completed a total of eight business acquisitions for $266 million
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2010 saw two of the largest acquisitions in Gibson's history (Taylor Companies LLC - $153 million; 75% interest in Battle River Terminal - $55 million)
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In October 2011, Gibson purchased the remaining interest (61%) of Palko Environmental Ltd. it did not already own for $62 million.
Experienced Management with a Proven History of Profitable Operations
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Gibson’s senior management team has an average of 27 years of industry experience
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Of the 16 members of senior management, 8 have been working with Gibson for more than 10 years
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CEO and CFO have both been with the Company for more than 20 years
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Demonstrated track record of consistently and conservatively growing the business and producing strong returns on assets and equity
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Positioned Gibson to take advantage of expected robust growth in key liquids rich hydrocarbon areas of Canada and the U.S.
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High quality, independent board of directors
See the detailed list of Management and Board of Directors
Attractive Total Return Profile Underpinned by a Quarterly Dividend and Growing Asset Base
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Total return supported by growth of the underlying asset base and dividend yield
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Annual dividend of $1.00 per share
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Attractive dividend yield in line with peers
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