Plains All American Pipeline, L.p. · NASDAQ:PAA
Plains All American Pipeline, L.p — Q2 2023 Earnings Presentation
23 slides from Plains All American Pipeline, L.p's earnings presentation, Aug 4, 2023
Slide 1: 2Q23 Earnings Call
2Q23 Earnings Call August 4, 2023
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: 2Q23 Earnings Highlights
2Q23 Earnings Highlights Continued execution, expect to be at the high-end of 2023 full-year Adj. EBITDA guidance range Strong Execution Segment Performance Self-Funding Capital $597 $529 / $62 $244 2Q23 Adj. EBITDA 2Q23 Crude / NGL 2023 YTD Investment & Maintenance attributable to PAA ($MM) Segment
Slide 4: 2023(G): Key Financial Metrics
2023(G): Key Financial Metrics Executing against our 2023 Plan (now expect high-end of Adj. EBITDA range) Adj. EBITDA attributable to PAA Free Cash Flow (FCF) $2.45B - $2.55B $1.6B(1) (now expected at high-end) Year-End Leverage Ratio Investment Capital (Net to PAA) <3.5x $325MM 2023(G): Furnished A
Slide 5: Permian Gathering Bolt-On Acquisition
Permian Gathering Bolt-On Acquisition Capital disciplined & efficient growth transaction further enhances premier Permian footprint Transaction Overview / Highlights ▪ Permian JV acquired(1) the remaining 43% interest Midland in the Northern Midland Basin gathering system Basin from Diamondback – ~$
Slide 6: Plains Fort Saskatchewan & NGL Segment Updates
Plains Fort Saskatchewan & NGL Segment Updates Capital-efficient optimization & contracting improves long-term cash flow durability ▪ Advanced multiple initiatives resulting in more stable & durable long-term cash flow ▪ Sanctioned Fort Saskatchewan Train 1 debottleneck (~30 Mb/d expansion) & additi
Slide 7: 2023(G): Financial & Operational Metrics
2023(G): Financial & Operational Metrics Financial ($MM, except per-unit metrics) 2023(G)(1) Adjusted EBITDA attributable to PAA (Expect to be at the high-end) $2,450 - $2,550 Crude Oil Segment 2,080 NGL Segment 420 Implied DCF to Common $1,600 Distribution Coverage (Common) 215% Year-End Leverage R
Slide 8: Free Cash Flow Priorities
Free Cash Flow Priorities Committed to significant returns of capital, continued capital discipline & financial flexibility 2023(G) Capital Allocation Represents +/- $1.6B of Free Cash Flow Targeting multi-year, sustainable distribution growth FCFaD & opportunistic repurchases +/- $600 (Available fo
Slide 9: Plains' Investment Opportunity
Plains’ Investment Opportunity Generating multi-year Free Cash Flow & increasing returns of capital to equity holders Attractive Current Yield of ~7.5% Meaningful coverage, targeting multi-year distribution growth Significant Free Cash Flow 2023(G): +/- $1.6B FCF / $600MM FCFaD Balance Sheet Strengt
Slide 10: Appendix
Appendix Incremental Updates: ▪ Segment Adj. EBITDA Walks ▪ Financial & Operational Updates
Slide 11: Key Drivers: 1Q23 to 2Q23
Key Drivers: 1Q23 to 2Q23 ($ millions) Crude Oil Segment Adjusted EBITDA NGL Segment Adjusted EBITDA +$33 ($21) $517 $529 Market-Based Increased Opportunities / Volumes Other $192 ($78) ($52) NGL Seasonality $62 Decreased Volumes / Planned Turnarounds 1Q23 1Q23(A) Volume Growth Market-Based / Other
Slide 12: Key Drivers: 2Q22 to 2Q23
Key Drivers: 2Q22 to 2Q23 ($ millions) Crude Oil Segment Adjusted EBITDA NGL Segment Adjusted EBITDA +$32 +$3 $529 $494 Increased Volumes / Market-Based Tariff Escalators Opportunities / Partially Offset by Lower PLA MVC Timing Prices $120 ($52) ($6) $62 Sales Volumes & Margins Asset Sales 2Q22 2Q22
Slide 13: Current Financial Profile
Current Financial Profile 12/31/22 6/30/23 Balance Sheet Short-Term Debt $1,159 $709 Long-Term Debt 7,287 7,288 Total Debt $8,446 $7,997 Cash & Equivalents(1) 378 915 Net Debt $8,068 $7,082 Adj. EBITDA (LTM)(2) $2,510 $2,594 Credit Stats & Liquidity Target Leverage Ratio 3.7x 3.2x 3.75x - 4.25x Comm
Slide 14: 2023(G): Crude Operational Metrics
2023(G): Crude Operational Metrics Capturing Permian gathering, intra-basin & long-haul growth 2021 2022 2023(G) Crude Oil Segment (Mb/d) 2023(G): $2,080MM Adj. EBITDA(2) Includes +/-$200MM from Storage Terminals(3) Gathering 1,643 2,346 2,695 Intra-Basin 1,740 2,084 2,295 Permian ~15% Long-Haul 1,0
Slide 15: Quarterly Crude Oil Segment Detail: Adj. EBITDA & Volumes
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) 2,088 1,899 1,985 1,983 1,883 1,905 1,945 1,817 1,768 2,390 2,446 2,562 2,569 2,245 2,202 2,342 6,195 6,295 6,304 5,297 5,2
Slide 16: NGL Segment 2023(G) Detail
NGL Segment 2023(G) Detail 2023(G): $420MM Adj. EBITDA(3) ▪ Majority of EBITDA generated by C3+ frac spread benefit ~10% Unhedged C3+ Fractionation & Marketing – Pro-actively hedge Frac Spread exposure ~40% – Purchase AECO natural gas & sell spec products (C3+) on Fee For Service Mont Belvieu pricin
Slide 17: NGL Segment Frac Spread & Hedging Profile
NGL Segment Frac Spread & Hedging Profile C3+ Spec Product Sales(1) (Mb/d) Hedging Profile (2021 – 2023(G)) (table data reflects full-year averages) 2021 2022 2023(G) 60 55 NGL Segment +/- 53 50 50 Unhedged C3+ Spec Product Sales(1) (Mb/d) 50 55 +/- 53 Volumes 40 % of C3+ Sales Hedged(2) 88% 81% +/-
Slide 18: Quarterly NGL Segment Detail: Adj. EBITDA & Volumes
Quarterly NGL Segment Detail: Adj. EBITDA & Volumes Propane & Butane Sales Volumes(1) (Mb/d) Quarterly (Segment Adj. EBITDA, $MM) Stronger earnings in winter months (Q1 & Q4) 134 138 125 128 70 59 58 56 39 $192 $161 $151 $141 $120 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 $86 $54 $62 $21 2Q21 3Q2
Slide 19: Overview of 2023 Goals
Overview of 2023 Goals Run a safe, reliable and responsible operation Increase returns of capital to equity holders Generate meaningful Free Cash Flow Strengthen balance sheet / financial flexibility 19
Slide 20: Free Cash Flow: Historical Detail
Free Cash Flow: Historical Detail GAAP CFFO to Non-GAAP FCF (1) Cash distributions paid during the period presented. (2) Cash distributions paid to our preferred and common unitholders during the period presented. Management uses the non-GAAP financial measures Free Cash Flow (“FCF”) and Free Cash F
Slide 21: Condensed Consolidating Balance Sheet of Plains GP Holdings (PAGP)
Condensed Consolidating Balance Sheet of Plains GP Holdings (PAGP) 21
Slide 22: Definitions
Definitions ▪ Adjusted EBITDA: adjusted earnings before interest, taxes, depreciation and amortization (Consolidated) − Attributable to PAA where noted; Segment Adjusted EBITDA by definition is attributable to PAA ▪ Implied Distributable Cash Flow (DCF) Per Common Unit & Common Unit Equivalent (CUE)
Slide 23: 2Q23 Earnings Call
2Q23 Earnings Call August 4, 2023
Plains All American Pipeline — Q2 2023 Earnings Presentation on 6ix