The following is a summary of the Gibson Energy Inc. (GBNXF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 2024 delivered adjusted EBITDA of $159 million and distributable cash flow of $101 million.

• Infrastructure segment marked a record $153 million of adjusted EBITDA, surpassing the previous high set in Q4 2023.

• Marketing segment reported adjusted EBITDA of $20 million, in line with guidance but lower compared to previous quarters.

• The company maintains healthy leverage at 3.5 times, adhering to the governing principle target range of 3x to 3.5x.

Business Progress:

• Gibson Energy announced the extension of a long-term contract and the sanctioning of the Cactus II connection, expected to operational by Q3 2025.

• Continuing construction of two tanks at Edmonton Terminal to support TMX pipeline operations, backed by a 15-year take-or-pay agreement with Cenovus.

• Released the 2023 Sustainability Report, reflecting progress on sustainability goals.

Opportunities:

• The Cactus II project expects to provide connections for approximately 700,000 barrels a day of incremental Permian supply.

• Strategic expansions and contract extensions at Gateway Terminal showcase potential for enhanced cash flows and customer alignment.

• High-quality investment-grade counterparties and infrastructure projects underscore Gibson's operational expansion and revenue possibilities.

Risks:

• Marketing segment's performance indicates potential volatility with diminished storage-based opportunities and tight heavy differentials. Q3's performance is expected to align with the lower results of Q2.

• The potential impact of macroeconomic or sector-specific shifts might affect long-term contract renegotiations and project sanctioning schedules.

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