PAA
Investor Presentation
Fourth-Quarter 2024
Forward-Looking Statements & Non-GAAP Financial Measures Disclosure
Investor Contacts
Blake Fernandez
Vice President, Investor Relations
Blake.Fernandez@plains.com
Michael Gladstein
Director, Investor Relations
Michael.Gladstein@plains.com
Investor Relations
866-809-1291 plainsIR@plains.com
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Financial & Operating Profile
Large, integrated asset footprint; investment grade; attractive yield
Financial Profile
~$22B
>7%
>10%
Enterprise
Distribution
Adj. FCF(1)
Value
Yield
Yield
Investment Grade Credit Rating
Operating Profile
>8 MMb/d
>6 MMb/d
>1 MMb/d
Total Pipeline
Permian Pipeline
Crude Purchase
Tariff Volume
Tariff Volume
Volume
~135 MMb/mo
~170 Mb/d
~6 Bcf/d
Liquids Storage
NGL Fractionation
Straddle
Capacity (2)
Capacity
Capacity
2024(G): Furnished November 8, 2024. Operating data as of 12/31/23. EV and last quarter annualized yield based on closing unit price as of 11/8/24. Please visit our websitefor a reconciliation of Non-GAAP financial measures.
(1) Adj. FCF Yield based on 2024(G); calculated as Adj. FCF excluding changes in Assets & Liabilities less preferred distributions compared to common unit market cap as of 11/8/24;
3
includes ~$140 million of bolt-on acquisitions; impacted by $120 million earnings charge for legal settlements. (2) Includes crude storage capacity, above-ground tank capacity & NGL storage.
Critical Crude & NGL Infrastructure
Full-service supply aggregation, quality segregation, flow assurance, access to multiple markets
Crude Oil Activities
NGL Activities
2024(G) Adj. EBITDA: $2.725B - $2.775B
Expect to be Toward the High-End of Full-Year Guidance
+/- 15%
NGL
+/- 85% Crude Oil
2024(G): Furnished November 8, 2024. Non-rangebound metrics align with midpoint of Adj. EBITDA attributable to PAA; amounts intended to be +/-.
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Plains' Structure & Tax Attributes
Dual securities provide flexibility & optionality
Summary Ownership Structure(1)
PAA GP HOLDINGS LLC (PAGP GP)
(Unified Board of Directors)
(Nasdaq: PAGP) 1099 SECURITY
GOVERNANCE OVERVIEW
Unified Board
Directors
73% of
responsible
subject to
Directors are
for PAGP & PAA
Public Election(3)
independent
PAGP TAX ATTRIBUTES
1099
+/- $1.2B
Distributions
Expect no corp.
Security
deferred tax asset
treated as
income taxes
(Subject to tax as a Corp.)
(>$6.00 / Class A Share(4))
"return of capital"(5)
for ~9 years
(Nasdaq: PAA) K-1 SECURITY
Public Investors • Series A & B Preferred
• 100% of Plains' assets & operations
PAA TAX ATTRIBUTES
Treated as
Distributions
"Pass through"
partnership for tax
treated as
tax attributes(6)
purposes; K-1 security
"return of capital"
(1)
See PAGP 10-K for more detailed ownership structure overview. (2)
Excludes ~5% PAA LP interest indirectly owned by private owners through intermediate entity. (3) Staggered board with elections on a 3-year rolling basis.
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(4)
Illustrative based on 9/30/24 PAGP Class A Shares outstanding. (5)
Until there are positive earnings & profits for tax purposes (estimated timing ~5 years); thereafter distributions treated as dividends or capital gain. (6) K-1 allocates income / (loss) to owners.
PAA's MLP Structure Provides Unique Tax Benefits
Structure offers tax and estate planning benefits
Pass Through
Tax Structure
Foreign Tax
Credit Benefits
Tax Deferred
Return of Capital
Estate Planning
Advantages
Note: Investors should consult a tax advisor regarding the benefits, risks and other consequences of owning PAA Common Units or PAGP Class A Shares. (1) Based on current PAA Equity prices and assumed federal income tax rate of 39.6%
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Plains' Investment Opportunity
Generating multi-year Free Cash Flow & increasing returns of capital to equity holders
Attractive Yield(1) of >7%
Meaningful coverage, targeting multi-year distribution growth
Significant Free Cash Flow(2)
2024(G): +/- $1.45B Adj. FCF(2) / $300MM FCFaD
Balance Sheet Strength
Long-Term Leverage Target 3.25x - 3.75x
Strategically Located in Growth Basins
Premier North American Crude & Canadian NGL Assets
2024(G): Furnished November 8, 2024. (1) Distribution yield based on closing unit price as of 11/8/24.
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(2) Excluding changes in Assets & Liabilities; includes ~$140 million of bolt-on acquisitions net to PAA's interest and impacted by $120 million earnings charge for legal settlements.
Leading Distribution Yield Across Sectors
Targeting multi-year, sustainable distribution growth
Distribution / Dividend Yield (1)
Distribution Growth
Estimates (2)
Distribution
Yield (3)
>7%
3.3%
3.2%
2.8%
2.6%
1.9%
1.5%
1.4%
1.4%
1.2%
1.0%
0.8%
0.7%
Wells Fargo Research
+10.4%
+4.9%
Energy
Real
Utes
Cons.
Materials Health FinancialsIndustrials
S&P
Comm.
Cons.
Tech.
Estate
Staples
Care
500
Services
Disc
S&P 500 Sectors
(1) Source: FactSet as of 11/8/24. (2) Source: Wells Fargo Securities, LLC estimates as of 11/4/24. (3) Last quarter annualized yield based on closing unit price as of 11/8/24.
MLPs
3-Yr Forward CAGR
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Crude & NGL Segment Overview
NASDAQ: PAA & PAGP
Long-Term Fundamentals Remain Constructive
Permian Basin a key contributor to meeting long-term global demand
Global Oil Demand- Remains Robust(1)
~120 MMb/d
~106 MMb/d
~99 MMb/d
~100 MMb/d
~93 MMb/d
Long-term demand for
crude oil and
natural gas liquids
2023(2)
2050 Demand
Global Oil Supply- Permian a Significant Contributor(3)
20.9
Sanctioned
Country
11.1 10.8
8.9
Sanctioned
6.1
Country
4.8
4.5
4.4
3.9
3.8
2.8
U.S.
Russia
Saudi Permian Canada
Iran
China
Iraq
Brazil
U.A.E.
Kuwait
Arabia
(1) IEA World Energy Outlook 2024, OPEC World Oil Outlook 2024, ExxonMobil Global Outlook. (2) IEA World Energy Outlook 2024.
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(3) Raw data provided by EIA, S&P Global & PAA Estimates; Liquids includes production of crude oil (including lease condensates), natural gas plant liquids, biofuels, other liquids, and refinery processing gains.
Disclaimer
Plains All American Pipeline LP published this content on November 12, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 12, 2024 at 12:46:05.519.