Plains All American Pipeline, L.p. · NASDAQ:PAA

Plains All American Pipeline, L.p — Q3 2023 Earnings Presentation

24 slides from Plains All American Pipeline, L.p's earnings presentation, Nov 3, 2023

  1. Slide 1: 3Q23 Earnings Call

    3Q23 Earnings Call November 3, 2023

  2. 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

  3. Slide 3: 3Q23 Results & Highlights

    3Q23 Results & Highlights Another Quarter of Solid Execution Strong Execution Segment Performance Self-Funding Capital $662 $553 / $99 $379 3Q23 Adj. EBITDA 3Q23 Crude / NGL 2023 YTD Investment & Maintenance attributable to PAA ($MM) Segment Adj. EBITDA ($MM) Capital Net to PAA ($MM) Raising Full-Ye

  4. Slide 4: Raising Full-Year 2023 Guidance

    Raising Full-Year 2023 Guidance Strong year-to-date performance and contribution from bolt-on acquisitions Adj. EBITDA attributable to PAA Free Cash Flow (FCF) $2.60 - $2.65B $1.45B(1) (includes A&D activity) Year-End Leverage Ratio Investment Capital (Net to PAA) <3.5x $325MM 2023(G): Furnished Nov

  5. Slide 5: Permian Gathering Bolt-On Acquisitions

    Permian Gathering Bolt-On Acquisitions Enhancing Permian footprint through supply aggregation & system liquidity Overview of Transactions  Permian JV acquired Rattler Midstream's Southern Delaware Basin crude gathering system(1) and LM Midland Basin Energy’s Touchdown crude gathering system(2) – Ag

  6. Slide 6: Lowering Long-Term Leverage Ratio Target Range

    Lowering Long-Term Leverage Ratio Target Range Maintaining flexibility for returns to equity holders & disciplined investment opportunities Balance sheet leverage vs. leverage ratio target range Includes 50% debt treatment for preferred equity NEW Leverage Ratio Reducing leverage target range by 0.5

  7. Slide 7: 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 (Payable Feb-24)(1) $1.27 $1.07(~220%) Future Considerations $0.87 (~265%)  Subject to board approv

  8. Slide 8: Financial & Operational Metrics

    Financial & Operational Metrics Financial ($MM, except per-unit metrics) 2023(G)(1) Adjusted EBITDA attributable to PAA $2,600 - $2,650 Crude Oil Segment $2,125 NGL Segment $480 Other $20 Implied DCF to Common $1,650 Distribution Coverage (Common) 220% Year-End Leverage Ratio <3.5x (2) Cash Flow fro

  9. Slide 9: Free Cash Flow Priorities

    Free Cash Flow Priorities Committed to significant return of capital, continued capital discipline & financial flexibility 2023(G) Capital Allocation Represents +/- $1.45B of Free Cash Flow Targeting multi-year, sustainable distribution growth FCFaD & opportunistic repurchases +/- $450 (Available fo

  10. 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 ~8% Meaningful coverage, targeting multi-year distribution growth Significant Free Cash Flow 2023(G): +/- $1.45B FCF / $450MM FCFaD Balance Sheet Strength YE-2

  11. Slide 11: Appendix

    Appendix Incremental Updates:  Segment Adj. EBITDA Walks  Financial & Operational Updates

  12. Slide 12: Key Drivers: 2Q23 to 3Q23

    Key Drivers: 2Q23 to 3Q23 ($ millions) Crude Oil Segment Adjusted EBITDA NGL Segment Adjusted EBITDA +$56 ($32) $553 $529 Market-Based Increased Volumes / Opportunities Tariff Escalators / Bolt-On Contribution +$48 ($11) $99 Other $62 Sales Volume & Margins 2Q23 2Q23(A) Higher Volumes / Escalation M

  13. Slide 13: Key Drivers: 3Q22 to 3Q23

    Key Drivers: 3Q22 to 3Q23 ($ millions) Crude Oil Segment Adjusted EBITDA NGL Segment Adjusted EBITDA +$55 ($38) $536 $553 Market-Based Increased Volumes / Opportunities Tariff Escalators / Bolt-On Contributions +$26 ($13) $99 $86 Asset Sales / Sales Margin Other 3Q22 3Q22(A) Outside Permian Canadian

  14. Slide 14: Current Financial Profile

    Current Financial Profile 12/31/22 9/30/23 Balance Sheet Short-Term Debt $1,159 $710 Long-Term Debt 7,287 7,296 Total Debt $8,446 $8,006 Cash & Equivalents(1) 378 258 Net Debt $8,068 $7,748 Preferred Equity (50% Debt Treatement) $1,146 $1,148 Total Leverage $9,214 $8,896 Adj. EBITDA (LTM)(2) $2,510

  15. 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 2,145 1,983 1,883 1,905 1,945 1,768 2,390 2,446 2,562 2,569 2,584 2,245 2,202 2,342 6,195 6,295 6,304 6,1

  16. Slide 16: Crude Oil Segment Detail

    Crude Oil Segment Detail Capturing growth via operating leverage 2021 2022 2023(G) Crude Oil Segment (Mb/d) 2023(G): +/- $2,125MM Adj. EBITDA(2) Includes +/-$200MM from Storage Terminals(3) Gathering 1,643 2,346 2,625 Intra-Basin 1,740 2,084 2,200 Permian ~15% Long-Haul 1,029 1,208 1,485 Canada / (1

  17. Slide 17: NGL Segment Detail

    NGL Segment Detail 2023(G): +/- $480MM 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 pricing(1)

  18. Slide 18: NGL Segment Frac Spread & Hedging Profile

    NGL Segment Frac Spread & Hedging Profile C3+ Spec Product Sales(1) (Mb/d) Hedging Profile (2021 – 2023(G)) 60 (table data reflects full-year averages) 2021 2022 2023(G) 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% +/-

  19. Slide 19: Quarterly NGL Segment Detail: Adj. EBITDA & Volumes

    Quarterly NGL Segment Detail: Adj. EBITDA & Volumes Propane & Butane Sales Volumes(1) Quarterly (Mb/d) (Segment Adj. EBITDA, $MM) Seasonally Stronger sales / earnings in winter months (Q1 & Q4) 134 138 125 128 59 58 56 39 44 $192 $161 $141 $120 $151 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 $86 $

  20. Slide 20: Overview of 2023 Goals

    Overview of 2023 Goals Run a safe, reliable and responsible operation Increase return of capital to equity holders Generate meaningful Free Cash Flow Strengthen balance sheet / financial flexibility 20

  21. Slide 21: Free Cash Flow: Historical Detail

    Free Cash Flow: Historical Detail GAAP CFFO to Non-GAAP FCF 2020 2021 2022 1Q23 2Q23 3Q23 YTD Net Cash Provided by Op. Activities (GAAP) $ 1,514 $ 1,996 $ 2,408 $ 743 $ 888 $ 85 $ 1,716 Net Cash (Used in) / Provided by Investing Activities (1,093) 386 (526) 158 (165) (438) (444) Cash Contributions f

  22. Slide 22: Condensed Consolidating Balance Sheet of Plains GP Holdings (PAGP)

    Condensed Consolidating Balance Sheet of Plains GP Holdings (PAGP) 22

  23. Slide 23: 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)

  24. Slide 24: 3Q23 Earnings Call

    3Q23 Earnings Call November 3, 2023

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