Plains All American Pipeline, L.p. · NASDAQ:PAA
Plains All American Pipeline, L.p — Q4 2024 Earnings Presentation
24 slides from Plains All American Pipeline, L.p's earnings presentation, Feb 7, 2025
Slide 1: 4Q24 Earnings Call
4Q24 Earnings Call February 7, 2025
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 about the performance, plans, strategies and objectives for future operations of Plains All American Pipeline, L.P. (“PAA”) and Plains GP
Slide 3: 4Q24 Results & Key Highlights
4Q24 Results & Key Highlights Continued execution & focus on asset & capital structure optimization Strong $729MM $2.78B 3.0x Execution 4Q24 Adj. EBITDA 2024 Adj. EBITDA(1) YE 2024 Leverage(3) Attributable to PAA ~4% Above Guidance(2) Significant Financial Flexibility Efficient Growth & ~$670MM ~12.
Slide 4: 2025 Guidance Highlights
2025 Guidance Highlights Strong integrated asset base combined with contributions from bolt-ons Adj. EBITDA attributable to PAA Adj. Free Cash Flow(2) $2.80 - $2.95B ~$1.15B 3% growth year over year(1) Reduced by ~$580MM for bolt-on acquisitions Long-term Leverage Ratio Target Range(3) Investment Ca
Slide 5: Permian Basin Growth Continues
Permian Basin Growth Continues Current activity, productivity & constructive commodity prices driving growth PERMIAN PRODUCTION OUTLOOK PERMIAN TAKEAWAY UTILIZATION(1) Cushing YE’24 vs. YE’25 Growth (MMb/d) Improving market fundamentals 100% ~6.7 ~85% ~6.4 90% ~80% 80% Forecast Wichita Falls 70% C.
Slide 6: Ironwood Midstream Bolt-on Overview
Ironwood Midstream Bolt-on Overview Eagle Ford: Bolstering Western footprint & providing extension opportunity into the East IRONWOOD MIDSTREAM South Texas Bolt-on Transaction EAGLE FORD GATHERING EAGLE FORD JV ▪ Completed the previously announced acquisition of Ironwood Midstream Energy o Total cas
Slide 7: Extending & Expanding Permian / Mid-Con Footprints
Extending & Expanding Permian / Mid-Con Footprints Integrated business model and asset base drives pull through benefits and synergies Midway Pipeline LLC Mid-Con Bolt-on Transaction Medallion Delaware Bolt-on ▪ Plains acquired the remaining 50% interest in Gathering Bolt-on Midway Pipeline LLC o To
Slide 8: Key Drivers: 3Q24 to 4Q24
Key Drivers: 3Q24 to 4Q24 Crude Oil Segment Adj. EBITDA NGL Segment Adj. EBITDA $577 $8 ($16) $569 Increased volumes / Opex tariff escalation +$80 $1 $154 Other $73 Seasonality / straddle production 3Q24 3Q24(A) L-H, POPB JV, Outside Canadian Crude, Other 4Q24 4Q24(A) 3Q24 3Q24(A) NGL Commodities NG
Slide 9: Key Drivers: 4Q23 to 4Q24
Key Drivers: 4Q23 to 4Q24 Crude Oil Segment Adj. EBITDA NGL Segment Adj. EBITDA +$37 ($31) $563 $569 Higher volumes / Fewer market-based tariff escalation / opportunities / bolt-on contributions other $169 ($10) ($5) $154 Lower frac spread Other 4Q23 3Q24(A) L-H, POPB JV Canadian Crude, Other 4Q24 4
Slide 10: 2025 Guidance
2025 Guidance Financial & Operational Metrics & Assumptions Financial ($MM, except per-unit metrics) 2025(G)(1) Adjusted EBITDA attributable to PAA $2,800 - $2,950 Crude Oil Segment 2,410 NGL Segment 450 Other 15 Distributable Cash Flow available to Common Unitholders $1,875 Common Unit Distribution
Slide 11: Key Drivers: 2024 to 2025(G)
Key Drivers: 2024 to 2025(G) Contributions from bolt-on acquisitions and higher volumes driving 2025 growth Adj. EBITDA(1) ($ millions) $2,800 - $2,950 Primarily lower contracted rates on certain Permian Lower forecasted market Guidance Range Increasing volumes / full $2,779 year benefit from tariff
Slide 12: Strong Cash Flow Generation
Strong Cash Flow Generation Committed to capital discipline, significant return of capital & financial flexibility 2025(G) Capital Allocation +/- $1,730 MM Targeting multi-year, sustainable distribution growth 2025: $0.25/unit annual distribution increase to $1.52/unit Bolt-on +/- $580 +/-MM $300 ac
Slide 13: Driving Value Through Efficient Growth
Driving Value Through Efficient Growth Portfolio strength allows for continued growth and increasing return of capital (3) Adjusted EBITDA(1) Adjusted FCF(2) Leverage Ratio Leverage Ratio (2) Distribution Per Unit Adjusted EBITDA (billion) (Cumulative; billion) Distribution Per Unit (billion) $1.52/
Slide 14: Appendix
-&i- PLAINS Appendix NASDAQ: PAA & PAGP
Slide 15: Current Financial Profile
Current Financial Profile 12/31/23 12/31/24 Balance Sheet Short-Term Debt $446 $408 Long-Term Debt 7,305 7,213 Total Debt $7,751 $7,621 Cash & Equivalents(1) 444 347 Net Debt $7,307 $7,274 Preferred Equity (50% Debt Treatment) $1,148 $1,151 Total Leverage $8,455 $8,425 Adj. EBITDA (LTM) (2) $2,711 $
Slide 16: Quarterly Crude Oil Segment Detail
Quarterly Crude Oil Segment Detail Segment Adj. EBITDA & Volumes Quarterly Pipeline Tariff Volumes (Permian / Other) (Mb/d) Permian Gathering Volumes (Mb/d) (Segment Adj. EBITDA, $MM) 2,193 2,237 2,222 2,182 $577 1,899 1,985 2,088 2,145 2,172 $576 $569 $553 $563 $553 $529 $517 $504 2,854 2,820 2,842
Slide 17: Crude Oil Segment Detail
Crude Oil Segment Detail Capturing growth via operating leverage & bolt-on acquisitions Regional Breakdown Canada / Tariff Volumes (Mb/d) 2023FY 2024FY 2025(G) Rocky Mountain / Western Gathering 2,643 2,895 3,075 15% Intra-Basin 2,210 2,305 2,450 Long-Haul 1,503 1,531 1,700 South Texas / Total (2) 6
Slide 18: NGL Segment Detail
NGL Segment Detail C3+ Frac Spread largely hedged for 2025 Unhedged C3+ fractionation ▪ Fee Based Overview & marketing 15% Fee Based o Third-party throughput(1): fractionate, store, and transport (~55 Mb/d not included in reported NGL sales) 2025(G): 45% +/- $450MM(4) Hedged C3+ o Net purchased volu
Slide 19: NGL Segment Frac Spread & Hedging Profile
NGL Segment Frac Spread & Hedging Profile C3+ Spec Product Sales(1) (Mb/d) Hedging Profile: 2023 – 2025(G) 70 (table data reflects full-year averages) 2023 2024 2025(G) 60 59 Associated NGL Segment with the 52 transition to “Fee Based” Unhedged 50 C3+ Spec Product Sales(1) (Mb/d) 52 59 +/- 45 Volume
Slide 20: Quarterly NGL Segment Detail
Quarterly NGL Segment Detail Segment Adj. EBITDA & Volumes Propane & Butane Sales Volumes Quarterly (Mb/d) (Segment Adj. EBITDA, $MM) Seasonally stronger sales / earnings in 138 winter months (Q1 & Q4) 128 125 128 127 $192 54 59 $169 $159 39 44 $151 $154 $99 $94 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q
Slide 21: Adjusted Free Cash Flow: Historical Detail
Adjusted Free Cash Flow: Historical Detail GAAP CFFO to Non-GAAP Adj. FCF Measures 2022 2023 1Q24 2Q24 3Q24 4Q24 2024 Net Cash Provided by Op. Activities (GAAP) $ 2,408 $ 2,727 $ 419 $ 653 $ 692 $ 726 $ 2,490 (1) Net Cash Used in Investing Activities (526) (702) (261) (157) (823) (264) (1,504) Cash
Slide 22: PAGP - Condensed Consolidating Balance Sheet
PAGP - Condensed Consolidating Balance Sheet December 31, 2024 December 31, 2023 Consolidating Consolidating PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP ASSETS Current assets $ 4,802 $ (26) $ 4,776 $ 4,913 $ 3 $ 4,916 Property and equipment, net 15,424 — 15,424 15,782 — 15,782 Investments in u
Slide 23: Definitions
Definitions ▪ Adjusted EBITDA: adjusted earnings before interest, income tax (expense)/benefit, depreciation and amortization (Consolidated)(1) o Attributable to PAA throughout slides; Segment Adjusted EBITDA by definition is attributable to PAA ▪ Implied Distributable Cash Flow (DCF) Per Common Uni
Slide 24: 4Q24 Earnings Call
4Q24 Earnings Call February 7, 2025
Plains All American Pipeline — Q4 2024 Earnings Presentation on 6ix