Plains Gp Holdings, L.p. · NASDAQ:PAGP
Plains Gp Holdings, L.p — Q1 2025 Earnings Presentation
28 slides from Plains Gp Holdings, L.p's earnings presentation, May 9, 2025
Slide 1: Investor Presentation First-Quarter 2025
Investor Presentation First-Quarter 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 Investor Contacts American Pipeline, L.P. (“PA
Slide 3: Financial & Operating Profile
Financial & Operating Profile Large integrated asset footprint, investment grade, attractive yield Financial Profile ~$25B >7% 3.0x Enterprise Distribution Leverage Value Yield Ratio(1) Investment Grade Credit Rating Operating Profile >8 MMb/d >6 MMb/d >1 MMb/d Total Pipeline Permian Pipeline Crude
Slide 4: Plains' Structure & Tax Attributes
Plains’ Structure & Tax Attributes Dual securities provides flexibility & optionality Summary Ownership Structure(1) Governance Overview Unified Board Directors 73% of PAA GP HOLDINGS LLC (PAGP GP) (Unified Board of Directors) responsible subject to Directors are for PAGP & PAA Public Election(3) in
Slide 5: 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’s Canadian − Distributions generally − The transfer of ML
Slide 6: Leading Distribution Yield Across Sectors
Leading Distribution Yield Across Sectors Targeting multi-year, sustainable distribution growth Distribution Growth (2) Distribution / Dividend Yield (1) Estimates Wells Fargo Research +10.7% 7.7% Distribution Yield (3) >7% +4.9% 3.3% 3.2% 2.8% 2.6% 1.9% 1.5% 1.4% 1.4% 1.2% 1.0% 0.8% 0.7% Energy Rea
Slide 7: Crude & NGL Segment Overview
Crude & NGL Segment Overview NASDAQ: PAA & PAGP
Slide 8: 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 (MMb/d) 20.7 ~106 MMb/d ~103 MMb/d ~100 MMb/d ~93 MMb/d Sanctioned Country 11.0 10.7
Slide 9: Critical Crude & NGL Infrastructure
Critical Crude & NGL Infrastructure Full-service supply aggregation, quality segregation, flow assurance, access to multiple markets Crude Oil Activities Segment Contributions +/- 15% NGL NGL Activities 2025(G) Adj. EBITDA: $2.80B - $2.95B +/- 85% Crude Oil 9 2025(G): Furnished February 7, 2025. Non
Slide 10: Operating Assets Within Crude & NGL Segments
Operating Assets Within Crude & NGL Segments Integrated asset base from wellhead to demand centers Crude Segment (~85% EBITDA(1)) ~55% EBITDA(2) ~15% EBITDA(2) Permian S. Texas USGC Permian JV* Eagle Ford JV* Capline* Cactus I / II* Ironwood Midstream St. James Terminal Basin / Sunrise Aguila Vado M
Slide 11: Premier Permian Crude System
Premier Permian Crude System Operating leverage to capture volume growth & higher margins GATHERING VOLUME(1) ($MM) Cushing (Mb/d) ~$1,320 EBITDA(2) +/- $1.1B 3,075 >4.7 MM EXCESS “CASH FLOW” 2,895 DEDICATED ACRES GENERATED(3) Wichita Falls ~6 YEAR C. City WEIGHTED AVERAGE $245 CONTRACT TENURE Maint
Slide 12: Mid-Con, Rockies & Canadian Crude Asset Overview
Mid-Con, Rockies & Canadian Crude Asset Overview Portfolio generating steady & stable cash flow Mid-Con Canada & Rockies ($MM) ~$710 +/- $610MM EBITDA(1) EXCESS “CASH FLOW” GENERATED(2) Cross border connectivity Cross border connectivity $100 Maintenance + Bakken Growth(3) Cushing Cushing Connect Di
Slide 13: South Texas & Gulf Coast Overview
South Texas & Gulf Coast Overview Strong footprint with significant cash generation & optimization opportunities South Texas Gulf Coast ($MM) ~$380 Eagle Ford Shale EBITDA(1) +/- $330MM EXCESS “CASH FLOW” GENERATED(2) Lyssy Maintenance + Capline Gardendale $50 Growth(3) EFJV 2025(G) 2025(G) Three Ga
Slide 14: NGL Segment Shifting to More Durable Earnings Stream
NGL Segment Shifting to More Durable Earnings Stream Leveraging existing footprint for brownfield expansion opportunities ed C3+ hedg Un 15% +30 Mb/d Debottleneck Project 2025(G): 45% 2Q’25 ISD r Service +/- $450MM(1) H ed g On budget / On-time 40% Ft. Sask e fo ed C Fe Co-Ed 3+ Pipeline Kerrobert (
Slide 15: 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 Unhedged 52 transition to Volumes “Fee Based” C3+ Spec Product Sales(1) (Mb/d) 52 59 +/- 45 5
Slide 16: High-Quality Contracted Asset Base
High-Quality Contracted Asset Base Stable cash flows driven by strong counterparties Contracted Creditworthy Cash Flows Customer Base (1 ) ed elat Min im R u ity m od Vo mm lum Co 80% ~35% eC ommi tment 90% of 2025(G) of revenue exposure is to Adj. EBITDA(2) investment-grade D ur a b from fee for se
Slide 17: Financial Overview
Financial Overview NASDAQ: PAA & PAGP
Slide 18: 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 19: 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 20: 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) ~$1.2Bln 13% - 15%+ 12 BOLT-ON FRAMEWORK 2022 / 2023 / 2024 Advantage JV Pipeline* DISCIPLINED RISK ADJ. RETURNS – strict vetting process Cactus I
Slide 21: Disciplined Capital Investments
Disciplined Capital Investments Capital-efficient expansion & debottlenecking opportunities Capital Overview $700 Investment Capital (Net to PAA) ▪ Maintaining capital discipline through rigorous vetting Maintenance Capital +/-$400 (Net to PAA) $600 ▪ Hurdle rate well in excess of WACC $500 ▪ Self-f
Slide 22: Balance Sheet Flexibility
Balance Sheet Flexibility Maintaining flexibility for returns to equity holders & disciplined investment opportunities SENIOR NOTE MATURITIES INVESTMENT GRADE CREDIT RATINGS (Millions) Fitch S&P Moody’s BBB BBB Baa2 FINANCIAL FLEXIBILITY Long-term leverage 3.25x - 3.75x ratio target range(1) $1,000
Slide 23: Delivering on Increasing Returns of Capital to Equity Holders
Delivering on Increasing Returns of Capital to Equity Holders Targeting multi-year, sustainable distribution growth $1.52/unit (~175%) $1.27/unit (~195%) Future Considerations $1.07/unit (~230%) ▪ Subject to board approval, financial positioning, $0.83/unit business outlook & investment opportunitie
Slide 24: Levers for Efficient Growth
Levers for Efficient Growth Returns focused value proposition Growth CAPEX $300-$400MM Annualized run rate net to PAA; Returns well in excess of WACC Streamline Operations Higher margins Tariff increases, Market opportunities, Higher utilization, Cost control Modest Growth in EBITDA & DCF Bolt-on M&
Slide 25: Why Plains?
Why Plains? Key North American infrastructure to help meet global energy demand Attractive Asset Tax Efficient Base + Growth Financial Strong Return Investment Levers Strength of Capital Strategically Located Investment Grade $0.15/unit Annual Dual Structure with & Fully Integrated Credit Rating Dis
Slide 26: Appendix
3 PLAINS Appendix
Slide 27: 2025 Guidance
2025 Guidance Financial & Operational Metrics & Assumptions Financial ($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 28: Investor Presentation First-Quarter 2025
Investor Presentation First-Quarter 2025