Plains Gp Holdings, L.p. · NASDAQ:PAGP
Plains Gp Holdings, L.p — Q4 2024 Earnings Presentation
30 slides from Plains Gp Holdings, L.p's earnings presentation, Feb 7, 2025
Slide 1: Investor Presentation Fourth-Quarter 2024
Investor Presentation Fourth-Quarter 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: Financial & Operating Profile
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
Slide 4: Critical Crude & NGL Infrastructure
Critical Crude & NGL Infrastructure Full-service supply aggregation, quality segregation, flow assurance, access to multiple markets Crude Oil Activities 2024(G) Adj. EBITDA: $2.725B - $2.775B Expect to be Toward the High-End of Full-Year Guidance +/- 15% NGL NGL Activities +/- 85% Crude Oil +/- 85%
Slide 5: Plains' Structure & Tax Attributes
Plains’ Structure & Tax Attributes Dual securities provide flexibility & optionality Summary Ownership Structure(1) GOVERNANCE OVERVIEW PAA GP HOLDINGS LLC (PAGP GP) Unified Board Directors 73% of (Unified Board of Directors) responsible subject to Directors are for PAGP & PAA Public Election(3) ind
Slide 6: PAA's MLP Structure Provides Unique Tax Benefits
PAA’s MLP Structure Provides Unique Tax Benefits Structure offers tax and estate planning benefits Pass Through Foreign Tax Tax Deferred Estate Planning Tax Structure Credit Benefits Return of Capital Advantages • Avoids double taxation (PAA pays • PAA’s Canadian subsidiary pays • Distributions gene
Slide 7: 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 8: Leading Distribution Yield Across Sectors
Leading Distribution Yield Across Sectors Targeting multi-year, sustainable distribution growth (1) Distribution / Dividend Yield Distribution Growth 7.7% Estimates (2) Distribution Wells Fargo Research Yield (3) >7% +10.4% 3.3% 3.2% 2.8% 2.6% +4.9% 1.9% 1.5% 1.4% 1.4% 1.2% 1.0% 0.8% 0.7% Energy Rea
Slide 9: Crude & NGL Segment Overview
Crude & NGL Segment Overview NASDAQ: PAA & PAGP 9
Slide 10: Long-Term Fundamentals Remain Constructive
Long-Term Fundamentals Remain Constructive Permian Basin a key contributor to meeting long-term global demand Global Oil Demand - Remains Robust(1) Global Oil Supply – Permian a Significant Contributor(3) ~120 MMb/d 20.9 ~106 MMb/d ~99 MMb/d ~100 MMb/d ~93 MMb/d Sanctioned Country 11.1 10.8 Long-ter
Slide 11: Permian Basin Growth Continues
Permian Basin Growth Continues Current activity, demonstrated performance & constructive commodity prices driving growth 2024 Forecast Assumptions Permian Basin Production Outlook (1) MMb/d Production Growth 200 - 300 (2) Permian Basin (‘23 Exit to ’24 Exit) Mb/d 6.4 Assumed Activity ~290 6.1 (Annua
Slide 12: Premier Permian Crude Oil Infrastructure Position
Premier Permian Crude Oil Infrastructure Position Operating leverage allows capture of growing production & enhances pull through on broader system Cushing STRATEGICALLY LOCATED CRITICAL CRUDE OIL GATHERING & TAKEAWAY INFRASTRUCTURE FROM THE PERMIAN BASIN Wichita Falls C. City FULLY INTEGRATED Midla
Slide 13: Capturing Permian Growth
Capturing Permian Growth Highly integrated system with operating leverage to capture Permian volumes Gathering Intra-Basin Long-Haul 2,643 2,880 2,346 2,084 2,210 2,315 1,503 1,560 1,208 2022 2023 2024(G) 2022 2023 2024(G) 2022 2023 2024(G) Acreage dedications driving growth Supporting downstream mo
Slide 14: 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 15: NGL Business & Value Chain Overview
NGL Business & Value Chain Overview Highly integrated & strategically positioned assets Field Supply Fractionation Storage Consumer Chemical Plants Straddle Transport Transport Diluent for International Heavy Crude Export Straddle Transport Fractionation Storage Market Access ~6 Bcf/d Capacity ~25 M
Slide 16: Strategically Located Fractionation & Straddle Capacity
Strategically Located Fractionation & Straddle Capacity Growth in Canadian gas production benefits Plains’ Empress & Fort Sask facilities WCSB Gas Forecast (1) Increasing gas production & east gate border (Bcf/d) flows drives increasing utilization of PAA’s Empress & Ft. Sask facilities 20.7 17.3
Slide 17: 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 18: 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 50 NGL Segment Unhedged Volumes C3+ Spec Product Sales(1) (Mb/d) 55 52 +/- 56 40 % of C3+ Sales Hedged(2) 81% 87% +/-
Slide 19: Financial Overview
Financial Overview NASDAQ: PAA & PAGP 19
Slide 20: 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 21: 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 22: 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) ~$545 MM 13% - 15%+ 9 BOLT-ON FRAMEWORK 2022 / 2023 / 2024 Advantage JV Pipeline* DISCIPLINED RETURN threshold – 300 to 500 Bps above WACC Cactus
Slide 23: Disciplined Capital Investments
Disciplined Capital Investments Capital-efficient expansion & debottlenecking opportunities ($ millions) $2,500 Capital Overview Investment Capital Maintaining capital discipline through rigorous vetting (Net to PAA) Maintenance Capital $2,000 (Net to PAA) Hurdle rate well in excess of WACC Se
Slide 24: Balance Sheet Flexibility
Balance Sheet Flexibility Maintaining flexibility for returns to equity holders & disciplined investment opportunities SENIOR NOTE MATURITIE S (Billions) INVESTME NT GRADE CREDIT RATINGS Fitch S&P Moody’s BBB BBB Baa2 FINANCIAL FLEXIBILITY 3.25x- Long-term leverage ratio $1,000 $1,000 3.75x target r
Slide 25: Delivering on Increasing Returns of Capital to Equity Holders
Delivering on Increasing Returns of Capital to Equity Holders Targeting multi-year, sustainable distribution growth ($/Unit; Common Distribution Coverage) 2024: +$0.20/unit annualized (+19%) vs. 2023 $1.27 (~190%) $1.07 (~220%) Future Considerations $0.87 (~265%) Subject to board approval, financi
Slide 26: Meaningful Progress on Long-Term Goals & Initiatives
Meaningful Progress on Long-Term Goals & Initiatives Plains is well positioned today & going forward Pre-2020 T O D AY (1) Midstream 1.0 Midstream 3.0 Average HSE Performance Improvement in Key HSE Metrics Multi-year build out in process Significant Operating Leverage Significant Investment Capital
Slide 27: Key Takeaways from our Presentation
Key Takeaways from our Presentation Positioned Well for the Future North American Hydrocarbons Key to Meeting Global Demand 1 Permian Basin driving U.S. supply growth 2 Capturing Volume Growth via Operating Leverage Growth in Permian tariff volumes 3 Generating Significant Adj. Free Cash ` Flow(1) 2
Slide 28: Appendix
Appendix - ee — sane LIPLAINS ry Se,
Slide 29: 2024(G): Financial & Operational Metrics & Assumptions
2024(G): Financial & Operational Metrics & Assumptions Financial ($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 30: Investor Presentation Fourth-Quarter 2024
Investor Presentation Fourth-Quarter 2024