Good morning, and welcome to the annual and special meeting of the shareholders of Gibson Energy. My name is James Estey. I am the Chairman of Gibson's board, and I will act as the Chairman of the meeting today. We will start the meeting with an acknowledgment from Alisa Denton, Manager of Financial Reporting, followed by Michelle Zhang, Manager of Total Rewards, who will bring us a safety moment, followed by the introduction of the directors and senior management who are joining us today. We'll then move into the formal part of the meeting, during which you, our shareholders, and duly appointed proxy holders will vote on four matters set forth in our management information circular. Following that, our President and CEO, Curtis Philippon, will provide a presentation highlighting Gibson's 2024 accomplishments.
We will finish the meeting by hosting a question-and-answer session, inviting our shareholders and proxy holders to ask questions of our directors and executive management team. For those attending in person, our directors and senior management will remain available following the meeting for informal discussions. I will now ask Alisa Denton to provide a land acknowledgment.
Thank you, Mr. Chair. In the spirit of respect, reciprocity, and truth, Gibson honors and acknowledges that it is headquartered on the traditional territories of the peoples of Treaty 7, which includes the Blackfoot Confederacy, Siksika, Kainai, Piikani, the Tsuut'ina, Îyârhe Nakoda Nations, and the Métis Nation, District Four, Five, Six. Our work also spans many lands across Turtle Island, where the histories, cultures, and traditions of indigenous peoples are embedded. We recognize the land and water and the benefits they provide all of us, and are grateful for generations past, the traditional knowledge keepers and elders who are with us today, and future generations who will continue to inspire and share their homeland with us. As an immigrant to Canada, I'm very grateful for the opportunities I have been afforded, and I am proud to call Canada home.
Thank you, Alisa. Later in the meeting, you will hear about our cost savings initiatives, which we have titled "We Are All Owners." I want to take a moment to acknowledge the incredible contribution that Elisa has made to this effort. Elisa played a key role in validating and implementing nearly 300 cost savings submissions for our employees. Thank you again. I will now call on Michelle Zhang to provide a safety moment.
Thank you, Mr. Chair. In the coming weeks, we are supporting the Canadian Mental Health Association and their National Mental Health Week campaign with a focus on unmasking mental health. Everyone wears a mask at times, offering a smile when struggling or saying, "I'm fine," when things feel heavy. While these masks can help us cope, they can also make it harder to ask for support. Mental health challenges are something we all have, and no one should feel the need to hide them. By removing the stigma and embracing honest conversations, we can create space for empathy, connection, and healing. For support or resources, contact your local mental health association.
Thank you very much. I'd also like to take a moment to reflect on how Gibson continues to make an impact on the communities where we live and work. In 2024, Gibson employees volunteered in more than 9,300 hours across Canada and the U.S., continuing to show what's possible when we work together. Our Houston team is a great example of the commitment Gibson gives in action. Earlier this year, they volunteered with Kids Meals Inc., helping prepare healthy snacks for pre-aged children living below the poverty line. They are also looking forward to their next volunteer day with the Boys and Girls Club of Greater Houston, where the team will support youth through tutoring, sports, and facility cleanup. These efforts reflect our ongoing dedication to creating a positive, lasting change.
Although they are not here today in person, they are watching virtually from Houston, and I ask you to give them a round of applause. Over the last year, we have seen a significant transition at Gibson. From the field to the office to the C-suite, we have plenty of new faces. In just the last couple of months, we have welcomed Curtis Philippon as our President and CEO, Riley Hicks into his new role as Senior Vice President and Chief Financial Officer, Kelly Holtby, Senior Vice President and Commercial Development. I would also like to introduce you to Dave Gosse, who will be joining us as Senior Vice President and Chief Operating Officer. Welcome, Dave. We are excited about these additions to our executive management team: new ideas, unique perspectives, and refreshed enthusiasm that they bring.
We also realize that change can be difficult, and it can put a strain on our people. We understand that people are still adjusting to the changes that we've made, and that is only natural. Through these adjustments, Gibson has become an even better company. The board of directors has full confidence that the team we have in place today is the team that will lead Gibson through the next exciting phase of our evolution. On behalf of the board of directors, I want to thank every single person in this organization for their contribution in keeping this transition as smooth as it has been. It takes a lot of hard work and resilience. Thank you for everyone in the field for yet another great year. As you've heard me say many times, you make the money, we spend it.
One of the greatest examples of how well the team has performed in a period of transition is our safety record in 2024. No reportable vehicle incidents, no tier one or tier two process safety incidents. We've recorded over 9 million hours without a lost-time injury, just an exceptional performance. I also want to thank my fellow directors, all of whom are standing for reelection today. You've all leaned in in a major way this year to lead us through this transition, and your hard work and leadership have set Gibson on a path for continued success. I am very grateful. In recent years, diversity, equity, inclusion programs, and more generally, sustainability programs have started to face challenges. Many companies have responded to these challenges by scaling back or even eliminating these programs. Gibson will not be.
VP Crude Exports, Cameron Nassar, VP Finance, Goren Bothic, VP Refined Products and Distribution, Riley Hicks, Senior Vice President and Chief Financial Officer, Dave Gosse, our incoming Senior Vice President and Chief Operating Officer, Kelly Holtby, Vice President and Commercial Development. I didn't know, no, I didn't miss Beth. Beth is VP Capital Markets and Risk, but she has a new title today. She's in charge of getting our stock price up. See, I saved the best to the last. They thought I made my third mistake. The pressure's on. We'll now begin the formal business of the meeting. For the sake of efficiency, we have prearranged and designated shareholders to make and second motions. This is in no way intended to discourage any comments, questions, or discussions on any motion.
Only registered shareholders who held their shares in their name as of the 18th of March 2025, the record date of this meeting, or their duly appointed proxy holders are entitled to vote on resolutions presented at this meeting. If a registered shareholder or duly appointed proxy holder who is present in person would like to speak on a matter, please raise your hand and approach one of the mics set up in the aisle so that you could be heard on our webcast. For those registered shareholders and duly appointed proxy holders who are joining online, questions and comments can be submitted electronically on the LUMI platform by following the instructions on the platform. Unless your question or comment relates to a specific motion being considered at the time, please hold it until the question and answer period.
The annual and special meeting of shareholders of Gibson Energy will now come to order. I appoint Jessica Ferguson to act as secretary of the meeting. I appoint Nessun of Odyssey Trust to act as scrutineer. I have received the declaration prepared by Odyssey indicating that the notice of meeting, information circular, and form of proxies were mailed or delivered on April 4th, 2025, to shareholders' record, March 18, 2025. The scrutineer has provided me with the attendance report of the meeting, and I confirm that a requisite quorum of shareholders is present. Jessica is secretary. I ask that you keep a copy of the notice of meeting, declaration of mailing, and the scrutineer's report with the minutes. I now declare this meeting is properly called to order and duly constituted for the transaction of special business. We will conduct voting by electronic ballot in all matters.
Voting will be open for all resolutions at the same time, which will allow you to choose to vote on each resolution immediately or wait until the conclusion of the discussion on each resolution prior to casting your vote. For those who have not voted yet, simply click on for, withhold, or against as applicable on your device. You will see confirmation immediately above the voting buttons once you have submitted your choice. There will be an opportunity to ask questions on each resolution in turn. Once discussions on all items of business have concluded, voting will be closed on all resolutions. The results will be tallied by the scrutineer once voting is completed, and it will be provided at the end of the formal portion of the meeting. The polls are now open for resolution.
The first item of business is the presentation of the audited financial for the year ended December 31st, 2024. You thought I was kidding you it was going to take an hour. Our shareholders are not being asked to approve the financial statements. However, Riley Hicks will be available to answer any questions that you may have on the financial statements during the question and answer period. There are extra copies of the financial statements available to shareholders upon request, and they're available at Gibson's website and sedarplus.ca. The next item of business is the election of director nominees as set forth in the management information circular. Being Margaret Montana, James Estey, Doug Bloom, Judy Cotte, Heidi Dutton, Maria Hooper, Diane Kazarian, Margaret Montana, [Colin Izzy], Craig Richardson, and Curtis Philippon.
The company's bylaw contained advance notice provision that required advance notice to accompany of any other director nominees. Since no notice was received, the nomination for directors is now closed. May I please have a motion on the election of directors?
Mr. Chair, my name is Daniel Nieuwenhuis, Senior Supervisor Maintenance Projects out of the Gibson Energy Calgary office. I've been a shareholder since 2013. As part of our corporate cost-focused goal, which we've titled We Are All Owners, our supply chain, operations, and project management teams have advanced an initiative to increase our use of an automated tank cleaning system called BLABO at our Hardisty terminal. The automated system reduces tank downtime, improves safety by reducing human involvement, and is expected to result in annualized savings of nearly $200,000.
I nominate each of the individuals you have listed, and I move that each nominee be elected as a director of Gibson Energy Incorporated, to serve until the next annual meeting of the shareholders or until their successors are duly elected or appointed.
Thank you, Daniel. May I please have a seconder for the motion?
Mr. Chair, I second the motion.
Thank you, John. The motion is now open for discussion. Jessica, any questions?
No, Mr. Chair, there are no questions at this time.
Thank you, Jessica. If there are no questions, you may cast your vote at this time if you have not already done so. The next item of business is the appointment of auditors for 2025. May I please have a motion for the appointment of auditors?
Mr.
Chair, my name is Megan Kootenay West, Human Resources, Human Resource Advisor out of the Gibson Edmonton Terminal, and I have been with Gibson since 2023. As part of the We Are All Owners cost savings initiative, we identified an opportunity to cut waste management costs at the Edmonton Terminal by switching to an indigenous vendor who unlocked a new revenue stream through metal recycling credits and offered us more competitive pricing. This collaboration is anticipated to reduce our annual waste management costs by over $4,000. It also exemplifies our commitment to enhancing supplier diversity and supporting Indigenous businesses. I move that PricewaterhouseCoopers LLP, Chartered Professional Accountants, be appointed auditors of the company until the next annual meeting or until their successors are appointed and that their remuneration as such be fixed by the board of directors.
Thank you, Megan.
May I please have a seconder for the motion?
Mr. Chair, I second the motion.
Thank you, Andrew. The motion is now open for discussion and questions. Jessica, any questions?
No, Mr. Chair, there are no questions at this time.
Thank you, Jessica. You may now cast your vote at this time if you have not done so already. The next item of business is the advisory vote on the company's approach to executive compensation, which is described in detail in the company's information circular. As this is an advisory vote, the results are not binding upon the board of directors. May I please have a motion for the advisory resolution?
Mr. Chair, my name is Eric Skoberg, Manager of Operational Technologies out of Gibson Hardisty Control Center, and I have been a Gibson owner since 2013.
As part of the We Are All Owners campaign, the operational technology team and I have been able to reduce costs without compromising safety or operations by negotiating preferred rates on our services and software providers across our assets. The combined effect of these efforts is expected to be around $200,000 per year. I move that the shareholders accept the approach to executive compensation disclosed in the management information circular delivered in advance of this meeting.
Thank you, Eric. May I please have a seconder for the motion?
Mr. Chair, I second the motion.
Thank you, John. The motion is now open for discussion. Any questions, Jessica?
No questions, Mr. Chair. We leave a lot of time for questions, as you can see.
Thank you, Jessica. You may now cast your vote at this time if you have not done so already.
The final item of business for today is the special resolution on improving unallocated awards under our long-term equity incentive plan, which is described in detail in the information circular. May I please have a motion for the special resolution?
Mr. Chair, my name is Kelsey Thompson-Dallyn. I am a business analyst in terminals and pipelines accounting at Gibson's Calgary office, and I have been a Gibson owner since 2020. I led the cost savings initiative validation group and oversaw the implementation of the initiatives. In Q1, my team worked to validate the implementation of $18 million in 2025 action savings on an annualized basis. Across Gibson, nearly 400 people representing almost 80% of our employees participated in validated Q1 cost savings initiative submissions. To date, our Gibson employees have submitted 280 items to our cost savings initiative portal.
We continue to receive new submissions daily as we work towards our goal of reducing costs by $25 million in 2025. I move that the special resolution to approve unallocated awards under the equity incentive plan, as described in detail in the information circular, be approved by shareholders.
I love your enthusiasm.
Thank you, sir.
Thank you, Kelsey. May I please have a seconder for the motion?
Mr. Chair, I second the motion.
Thank you, Andrew. The motion is now open for discussion. Jessica, any questions?
No questions, Mr. Chair.
Thank you very much. You may cast your vote at this time. Now that all scheduled matters have been voted on, we will pause for a moment while the results are tabulated. I am advised by the scrutineer that the results are more than 50% in favor of the nomination of each director nominee.
Accordingly, in accordance with our majority voting policy and applicable law, I declare director nominees duly elected. I am also advised by the scrutineer that all other motions presented today have been carried out by the requisite majority shareholders. That concludes the formal portion of the meeting, and I direct the scrutineer's report to be kept by the secretary with the minutes of the meeting. I will now ask for a motion that the formal portion of the meeting be terminated.
Mr. Chair, I move that the meeting be terminated.
Thank you very much. Do I have a seconder? You again?
Mr. Chair, I second the motion.
You know, John, I could get used to you calling me Mr. Chair all the time. Thank you, John. I declare the meeting terminated, and thank you, shareholders, for your participation today.
I would like to now turn the meeting over to Curtis Philippon. After Curtis's presentation, the board and management will be happy to answer any questions. At that time, if you have any questions, please raise your hand, and once you are acknowledged, please approach one of the mics so that the question can be heard on the webcast. If you are joining us online, you may submit your questions through the LUMI portal, and one of Gibson's representatives will ask the question on your behalf. Thank you.
Good morning, everybody. Thanks, Jim. And thank you for the kind words to start off. I'm excited to be part of Gibson. It is an incredible group that we've got here, and it's a great company. I'm just very proud to be part of this organization. I'm also particularly proud of the turnout we've got here today.
This is incredible to see the number of people that came up for the AGM today. I think one of the really special things about Gibson is that we have a true owners mentality. Over 90% of Gibson employees are shareholders of the company. I firmly believe that drives a differentiated behavior. People just care tremendously. Whether it's responsiveness to customers or what you heard today on sort of just really driving cost savings, there is truly a differentiated performance that you get from that owners mentality. I just really appreciate the support. That is true here today in the AGM, but it is also true if you go to the lunchroom at Edmonton or Hardisty or Ingleside, it is equally as alive, the passion around Gibson as a company and what can we do as owners. Thank you very much. We'll do a bit of a snapshot.
We'll keep the comments brief here today, but a bit of a snapshot on Gibson. We have got a long history in the crude infrastructure space, over 70 years of history in this space. A couple of stats that I love is we are a critical part of the North American energy infrastructure. We touch one in four barrels in Western Canada to get them to market, and we have the second largest crude export terminal in the U.S. We have this great customer base that's supported well by contracts. We have a healthy balance sheet, and we have this strong growing dividend. I'm particularly proud of our safety performance. You heard a little bit from Jim that started off, but maybe a few highlights. You heard over 9 million hours since our last lost-time incident.
From a total recordable incident frequency perspective, over the last 12 months, so from our rolling 12-month perspective, Gibson hit a new record low here in the last month. I am particularly proud of that one. Also notable, as we just announced this morning, is the completion of our dredging project in Ingleside. Again, a significant milestone to complete that project on time, on budget, but even more important, with no incidents whatsoever. Big success to the team. Thank you. Our strategy is fairly simple. We are a crude infrastructure-focused company. We have these assets across Canada and the U.S. that are not just good. They are not just good. They are great. They are true crown jewel assets that we have to provide us a platform to really grow around those assets. We can provide good, strong, stable growth going forward, just growing around that asset base.
We have this incredible high-performance team that absolutely sees safety as foundational in all of our success that we have. Lastly, the owners mentality. I think it differentiates Gibson as a company. There is a true owners mentality, and we understand the importance of growing value on a per-share basis. A few highlights from the year. Notable, we added two large tanks with Cenovus at the end of the fourth quarter last year. Those are large projects for us. We saw the first full quarter benefit in Q1. We had record volumes out of Edmonton as we supported Cenovus getting volume onto TMX. We just completed the dredging project. That is a significant milestone for us to increase our ability to drive additional capacity through the Gateway Terminal. We are actually going to be loading our first VLCC later this week with the new dredged capacity.
I think we're all quite excited to see our first loading that'll be in excess of 1.5 million barrels. It'll be a big milestone moment. At one point, we thought we might be live streaming that as part of the town hall, but it's a significant week for us. The next one is the Baytex partnership. Earlier in the quarter, we announced a partnership with Baytex to develop the infrastructure in the Duvernay. That's significant. I think it opens up a whole new growth leg for Gibson. It allows us to develop infrastructure solutions directly with our great customer base that's outside of our fence. Most importantly, it drives additional volume to our core terminal, in this case, directly into our Edmonton facility. A great new project. We're looking forward to getting that on stream by the end of the year.
From a cost campaign, you heard about the cost campaign a lot already this morning. That has been a tremendous success. It has been really amazing to see the entire company rally around this and really exceed our expectations from a cost savings perspective. Through the first quarter, we are already through $18 million of savings and well on track to exceed $25 million of savings by the end of the year. Lastly, I am super excited about the team. We have added Riley in the CFO seat and Dave Gosse on the COO side. Excited that we got the team in place as we go forward into the next chapter of Gibson. Maybe I will pause.