Plains All American Pipeline, L.p. · NASDAQ:PAA
Plains All American Pipeline, L.p — Q2 2024 Earnings Presentation
21 slides from Plains All American Pipeline, L.p's earnings presentation, Aug 2, 2024
Slide 1: 2Q24 Earnings Call
2Q24 Earnings Call August 2, 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: 2Q24 Results & Highlights
2Q24 Results & Highlights Continued strong execution, raising 2024 guidance range Additional Bolt-On Strong Execution Segment Performance Acquisition $674 $576 / $94 ~$20 2Q24 Adj. EBITDA 2Q24 Crude / NGL Acquired an additional ~0.7% interest attributable to PAA ($MM) Segment Adj. EBITDA ($MM) in Wi
Slide 4: Raising Full-Year 2024 Guidance
Raising Full-Year 2024 Guidance Strong year-to-date performance & continued free cash flow generation Adj. EBITDA attributable to PAA Adj. Free Cash Flow excluding changes in Assets & Liabilities; includes $130MM of bolt-on acquisitions $2.725 - $2.775B ~$1.55B ~10% Yield(1) Long-term Leverage Ratio
Slide 5: Plains' Bolt-On Strategy
Plains’ Bolt-On Strategy Well positioned to capture incremental opportunities (1) (2) CUMULATIVE NET INVESTMENT RETURN THRESHOLD BOLT-ON ACQUISITIONS ~$535 MM 15% + 8 BOLT-ON FRAMEWORK 2022 / 2023 / 2024 Advantage JV Pipeline* DISCIPLINED RETURN threshold – 300 to 500 Bps above WACC Cactus II OMOG J
Slide 6: Free Cash Flow Priorities
Free Cash Flow Priorities Committed to capital discipline, significant return of capital & financial flexibility 2024(G) Capital Allocation +/- $1.55B of Adj. Free Cash Flow (excluding changes in Assets & Liabilities) +/- $130 Announced Bolt-on Acquisitions Targeting multi-year, sustainable distribu
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 2024(G): +/- $1.55B Adj. FCF(2) / $390MM FCFaD Balance Sheet Stren
Slide 8: Appendix
Appendix Incremental Updates: Segment Adj. EBITDA Walks Financial & Operational Updates
Slide 9: Key Drivers: 1Q24 to 2Q24
Key Drivers: 1Q24 to 2Q24 ($ millions) Crude Oil Segment Adjusted EBITDA NGL Segment Adjusted EBITDA +$24 ($1) $576 $553 Higher Volumes Other $159 ($70) +$5 $94 NGL Seasonality Other 1Q24 2Q24 1Q24 1Q24(A) 2Q24 2Q24(A) Crude Oil Segment NGL Segment – Higher Volumes: primarily higher Permian Long
Slide 10: Key Drivers: 2Q23 to 2Q24
Key Drivers: 2Q23 to 2Q24 ($ millions) Crude Oil Segment Adjusted EBITDA NGL Segment Adjusted EBITDA +$69 ($22) $576 $529 Fewer Market-Based Higher Volumes / Opportunities / Other Tariff Escalation / Bolt-On Contributions $29 $3 $94 $62 Other / Opex Higher Sales Volumes 2Q23 2Q23(A) Outside Permian
Slide 11: 2024(G): Financial & Operational Metrics & Assumptions
2024(G): Financial & Operational Metrics & Assumptions (1) Financial ($MM, except per-unit metrics) 2024(G) 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 Cov
Slide 12: Current Financial Profile
Current Financial Profile 12/31/23 6/30/24 Balance Sheet Short-Term Debt $446 $765 Long-Term Debt 7,305 7,211 Total Debt $7,751 $7,976 Cash & Equivalents(1) 444 550 Net Debt $7,307 $7,426 Preferred Equity (50% Debt Treatment) $1,148 $1,149 Total Leverage $8,455 $8,575 Adj. EBITDA (LTM)(2) $2,711 $2,
Slide 13: 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) 2,193 2,237 2,088 2,172 1,899 1,985 2,145 1,883 2,854 2,820 2,842 2,446 2,562 2,569 2,584 2,390 6,195 6,295 6,304 6,710 6,42
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 Merchant Terminals Canada / Gathering 2,346 2,643 2,870 Rocky Mountain / Western Intra-Basin 2,084 2,210 2,285 15% Long-Haul
Slide 15: 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 16: 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 17: 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 39 44 $192 $151 $169 $159 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 $86 $99 $94 $62 3Q22 4
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 YTD Net Cash Provided by Op. Activities (GAAP) $ 2,408 $ 2,727 $ 419 $ 653 $ 1,072 Net Cash Provided Used in Investing Activities (526) (702) (261) (157) (418
Slide 19: Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet Plains GP Holdings (PAGP) 19
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: 2Q24 Earnings Call
2Q24 Earnings Call August 2, 2024
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