Plains All American Pipeline, L.p. · NASDAQ:PAA
Plains All American Pipeline, L.p — Q3 2024 Earnings Presentation
21 slides from Plains All American Pipeline, L.p's earnings presentation, Nov 8, 2024
Slide 1: 3Q24 Earnings Call
3Q24 Earnings Call November 8, 2024
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures Disclosure
Forward-Looking Statements & Non-GAAP Financial Measures Disclosure This presentation contains forward-looking statements, including, in particular, statements Investor Contacts about the performance, plans, strategies and objectives for future operations of Plains All American Pipeline, L.P. (“PA
Slide 3: 3Q24 Results & Highlights
3Q24 Results & Highlights Continued execution, trending toward high-end of full-year guidance range Solid Execution Segment Performance Bolt-On Acquisitions(1) $659 $577 / $73 ~$140 YTD 3Q24 Adj. EBITDA 3Q24 Crude / NGL Incremental Bolt-on: attributable to PAA ($MM) Segment Adj. EBITDA ($MM) Fivesto
Slide 4: Expect to be Toward the High-End of FY'24 Guidance
Expect to be Toward the High-End of FY’24 Guidance Strong year-to-date performance & continued free cash flow generation Adj. EBITDA attributable to PAA Adj. Free Cash Flow(1) $2.725 - $2.775B ~$1.45B ~10% Free Cash Flow Yield(2) Long-term Leverage Ratio Target Range(3) Investment Capital 3.25x - 3.
Slide 5: Plains' Bolt-On Strategy
Plains’ Bolt-On Strategy Well positioned to capture incremental opportunities CUMULATIVE NET INVESTMENT (1) RETURN THRESHOLD (2) BOLT-ON ACQUISITIONS (3) ~$545 MM 13% - 15%+ 9 BOLT-ON FRAMEWORK 2022 / 2023 / 2024 Advantage JV Pipeline* DISCIPLINED RETURN threshold – 300 to 500 Bps above WACC Cactus
Slide 6: Key Drivers: 2Q24 to 3Q24
Key Drivers: 2Q24 to 3Q24 ($ millions) Crude Oil Segment Adj. EBITDA NGL Segment Adj. EBITDA $576 +$14 ($13) $577 Higher Volumes / Fewer Market-Based Tariff Escalation Opportunities / Other $94 ($10) ($11) $73 Opex / Commercial Other Margin 2Q24 2Q24(A) LH + Outside + Can Crude Mkt Other 3Q24 3Q24(A
Slide 7: Key Drivers: 3Q23 to 3Q24
Key Drivers: 3Q23 to 3Q24 ($ millions) Crude Oil Segment Adj. EBITDA NGL Segment Adj. EBITDA +$37 ($13) $577 $553 Fewer Market-Based Higher Volumes / Opportunities / Other Bolt-On Contributions $99 ($28) +$2 $73 Lower Frac Spread Other 3Q23 3Q23(A) Outside Permian / POPB / LH Canadian Mkt Opps / Mer
Slide 8: 2024(G): Financial & Operational Metrics & Assumptions
2024(G): Financial & Operational Metrics & Assumptions Financial ($MM, except per-unit metrics) 2024(G)(1) Adjusted EBITDA attributable to PAA $2,725 - $2,775 Crude Oil Segment 2,270 NGL Segment 465 Other 15 Distributable Cash Flow available to Common Unitholders $1,700 Common Unit Distribution Cove
Slide 9: Free Cash Flow Priorities
Free Cash Flow Priorities Committed to capital discipline, significant return of capital & financial flexibility 2024(G) Capital Allocation +/- $260 ~$140MM Bolt-on acquisitions(1) & $120MM legal settlements Targeting multi-year, sustainable distribution growth Adj. FCFaD(2) 1Q24: $0.20/unit annual
Slide 10: Plains' Investment Opportunity
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 St
Slide 11: Appendix
Appendix Incremental Updates: Operational & Financial Updates
Slide 12: Quarterly Crude Oil Segment Detail
Quarterly Crude Oil Segment Detail Adj. EBITDA & Volumes Pipeline Tariff Volumes (Permian / Other) Permian Gathering Volumes Quarterly (Mb/d) (Mb/d) (Segment Adj. EBITDA, $MM) 2,222 2,193 2,237 1,899 1,985 2,088 2,145 2,172 1,883 2,854 2,820 2,842 2,941 2,446 2,562 2,569 2,584 6,944 2,390 6,195 6,29
Slide 13: Crude Oil Segment Detail
Crude Oil Segment Detail Capturing growth via operating leverage & bolt-on acquisitions Regional Breakdown Tariff Volumes (Mb/d) 2022FY 2023FY 2024(G) Includes +/-$200MM from Commercial Terminals Canada / Rocky Mountain / Gathering 2,346 2,643 2,880 Western Intra-Basin 2,084 2,210 2,315 15% Long-Hau
Slide 14: NGL Segment Detail
NGL Segment Detail C3+ Frac Spread substantially hedged for 2024 Majority of EBITDA generated by C3+ frac spread benefit Unhedged C3+ Fractionation 5% & Marketing – Purchase AECO natural gas & sell spec products (C3+) on Fee for Mont Belvieu pricing(1) 40% Service 2024(G): +/- $465MM(4) – +/- 56 M
Slide 15: NGL Segment Frac Spread & Hedging Profile
NGL Segment Frac Spread & Hedging Profile C3+ Spec Product Sales(1) (Mb/d) Hedging Profile: 2022 – 2024(G) 60 55 +/- 56 (table data reflects full-year averages) 2022 2023 2024(G) 52 Unhedged 50 NGL Segment Volumes C3+ Spec Product Sales(1) (Mb/d) 55 52 +/- 56 40 % of C3+ Sales Hedged(2) 81% 87% +/-
Slide 16: Quarterly NGL Segment Detail
Quarterly NGL Segment Detail Adj. EBITDA & Volumes Propane & Butane Sales Volumes Quarterly (Mb/d) (Segment Adj. EBITDA, $MM) Seasonally stronger sales / earnings in winter months (Q1 & Q4) 138 128 125 128 56 54 59 39 44 $192 $151 $169 $159 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 $86 $99 $94 $6
Slide 17: Current Financial Profile
Current Financial Profile 12/31/23 9/30/24 Balance Sheet Short-Term Debt $446 $765 Long-Term Debt 7,305 7,212 Total Debt $7,751 $7,977 Cash & Equivalents(1) 444 636 Net Debt $7,307 $7,341 Preferred Equity (50% Debt Treatment) $1,148 $1,150 Total Leverage $8,455 $8,491 Adj. EBITDA (LTM)(2) $2,711 $2,
Slide 18: Adjusted Free Cash Flow: Historical Detail
Adjusted Free Cash Flow: Historical Detail GAAP CFFO to Non-GAAP Adj. FCF Measures PAA Historical Adjusted Free Cash Flow 2022 2023 1Q24 2Q24 3Q24 YTD Net Cash Provided by Op. Activities (GAAP) $ 2,408 $ 2,727 $ 419 $ 653 $ 692 $ 1,763 Net Cash Used in Investing Activities(1) (526) (702) (261) (157)
Slide 19: Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet Plains GP Holdings (PAGP) September 30, 2024 December 31, 2023 Consolidating Consolidating PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP ASSETS Current assets $ 5,169 $ (9) $ 5,160 $ 4,913 $ 3 $ 4,916 Property and equipment, net 15,651 — 15,651 15,782 — 15,7
Slide 20: Definitions
Definitions Adjusted EBITDA: adjusted earnings before interest, income tax (expense)/benefit, depreciation and amortization (Consolidated)(1) Attributable to PAA where noted; Segment Adjusted EBITDA by definition is attributable to PAA Implied Distributable Cash Flow (DCF) Per Common Unit & Co
Slide 21: 3Q24 Earnings Call
3Q24 Earnings Call November 8, 2024
Plains All American Pipeline — Q3 2024 Earnings Presentation on 6ix