Fourth-Ǫuarter 2025
Financial G Operating Profile
Large integrated asset footprint, investment grade, attractive yield
~$22.5B
Enterprise Value
~G.1%
Distribution Yield
3.3x
Leverage Ratio(1)
Investment Grade Credit Rating
Operating Profile >8 MMb/d Total Pipeline Tariff Volume ~135 MMb/mo Liquids Storage Capacity(2) >6 MMb/d Permian Pipeline Tariff Volume ~170 Mb/d NGL Fractionation Capacity >1 MMb/d Crude Purchase Volume ~6 Bcf/d Straddle Capacity3
2025(G): Furnished November 5, 2025. Operating data as of 12/31/24. Enterprise value and distribution yield based on closing unit price as of 11/7/25. Please visit our website for a reconciliation of Non-GAAP financial measures. (1) Leverage ratio as of September 30, 2025; includes 50% debt treatment for preferred equity and partial year contributions from recent bolt-on acquisitions. (2) Includes crude storage capacity, above-ground tank capacity C NGL storage.
Plains' Structure G Tax AttributesDual securities provide flexibility C optionality
Summary Ownership Structure(1)
Governance Overview
(Nasdaq: PAGP) 10GG SECURITY
Indirect owner of PAA GP interest (non-economic) and ~28% PAA LP interest(2)
(Nasdaq: PAA) K-1 SECURITY
Public Investors • Series A C B Preferred 100% of Plains' assets C operations
PAA GP HOLDINGS LLC (PAGP GP)
(Unified Board of Directors)
Unified Board responsible
for PAGP C PAA
Directors subject to Public Election(3)
73% of Directors are independent
PAGP Tax Attributes
1099
Security
(Subject to tax as a Corp.)
+/- $1.2B
deferred tax asset
(~$6.00 / Class A Share(4))
Distributions treated as
"return of capital"(5)
Expect no corp. income taxes until
~2032 tax year(6)
Treated as partnership for tax
PAA Tax Attributes
Distributions treated as
"Pass through"
purposes; K-1 security
"return of capital"
tax attributes
(1) See PAGP 10-K for more detailed ownership structure overview. (2) Excludes ~5% PAA LP interest indirectly owned by private owners through intermediate entity. (3) Staggered board with elections on a 3-year rolling basis. (4) 4
Illustrative based on 9/30/25 PAGP Class A Shares outstanding. (5) We don't expect positive earnings and profits for tax purposes until 2029, at the earliest, at which point a portion of distributions will begin to be treated as dividend income. (6) Expect NOL's to shelter ~80% of any potential taxable income from 2032 through at least 2040 resulting in an effective tax rate of less than ~5%. Note, this does not consider the year the NGL sale occurs.
PAA's MLP Structure Provides Unique Tax BenefitsStructure offers tax and estate planning benefits
Pass Through Tax Structure
Foreign Tax Credit Benefits
Tax Deferred Return of Capital
Estate Planning Advantages
- - | Avoids double taxation (PAA pays no U.S. Federal or state income tax) enabling partnership to return more cash to unitholders Profits C losses are passed through to limited partners | - - | PAA's Canadian subsidiary pays provincial C federal taxes Unitholders can generally use Foreign tax credit against U.S. federal income tax | - - | Distributions generally not taxed, but treated as return of capital After-tax cash flow(1) expected to be ~95% of distributions over +/- 10-years | - - | The transfer of MLP units to beneficiaries upon death does not trigger a taxable event Cost basis of MLP units steps up to the market value as of the date of death | |||
- | U.S. qualified business income currently eligible for 20% rate reduction |
5
Note: Investors should consult a tax advisor regarding the benefits, risks and other consequences of owning PAA Common Units or PAGP Class A Shares.
(1) Based on current PAA Equity prices and assumed federal income tax rate of 37%.
Leading Distribution Yield Across SectorsG.1%
Executing on multi-year, sustainable distribution growth
Distribution / Dividend Yield (1)
0.5%
0.8%
1.1%
1.1%
1.4%
1.4%
1.7%
2.0%
2.6%
2.8%
3.3%
3.4%
Distribution Yield (2)
~3.1%
Real Estate
Energy Cons. Staples
Utes Materials Health Care
Financials Industrials SGP 500
Comm. Services
Cons. Disc
Tech.
6
(1) Source: FactSet as of 11/7/25. (2) Last quarter annualized yield based on closing unit price as of 11/7/25.
Crude G NGL OverviewNASDAǪ: PAA G PAGP
Long-Term Fundamentals Remain Constructive
Permian Basin a key contributor to meeting long-term global demand
Global Oil Demand - Remains Robust(1)
~106 MMb/d
~123 MMb/d
Global Oil Supply - Permian a Significant Contributor(3)
(MMb/d)
20.7
~103 MMb/d
~G3 MMb/d
~100 MMb/d
Long-term demand for crude oil and
natural gas liquids
Sanctioned Country
11.0 10.7
G.6
6.2
Sanctioned Country
5.0 4.4 4.1 4.1
3.5
2.7
2024(2)
2050 Demand
U.S. Saudi Arabia
Russia Permian Canada Iran China U.A.E. Iraq Brazil Kuwait
8
(1) IEA World Energy Outlook 2024, IEA Oil Market Report, OPEC World Oil Outlook 2024 C ExxonMobil Global Outlook. (2) IEA Oil Market Report.
(3) 2024 data provided by EIA, SCP Global C PAA Estimates; Liquids includes production of crude oil (including lease condensates), natural gas plant liquids, biofuels, other liquids, and refinery processing gains.
Key 2025 Crude G NGL ConsiderationsIntegrated asset base from wellhead to demand centers
Crude (~83% EBITDA(1))
Key 2025 Considerations
Permian volume growth of 200- 300 Mb/d(3)
Contributions from bolt-on MCA
Permian long-haul re-contracting (2H'25)
15%
15%
2025(G):
+/- $2,365MM(1)(2)
55%
Annual contract escalation
15%
NGL (~17% EBITDA(1))
Key 2025 Considerations
2Ǫ25 start-up of PFS debottleneck
▪ +/- 85% of C3+ sales hedged(5) at approximately $0.70/gallon level
Lower forecasted spot opportunities
45%
10%
2025(G):
+/- $485MM(1)
45%
G
2025(G): Furnished November 5, 2025. (1) Adj. EBITDA attributable to PAA. Aligns with midpoint of 2025 guidance. (2) 2025(G) Includes ~$40MM of Adj. EBITDA from EPIC acquisition. (3) Expect to be towards the bottom half of the range in prevailing environment. (4) Includes western region. (5) Annual Frac spread volume hedged as a percentage of total C3+ volume produced / forecasted that is exposed to frac spread.
EPIC / Cactus III Acquisition OverviewMultiple ways to win with improved flexibility for our customers
ORLA WINK
CRANE UPTON
Transaction Highlights
~10x 2026 EBITDA (improving significantly over next few years)
Upstream connectivity and downstream market optionality
Backed by long term minimum volume commitments
100% EPIC Acquisition Overview
Plains acquired remaining 45% operated interest in
EPIC Crude Holdings, LP. for ~$1.33 billion from a portfolio company of Ares Private Equity funds, inclusive of ~$500 million of debt
Transaction closed effective November 1, 2025
Previously announced acquisition of 55% non-operated interest also closed on October 31, 2025
Transactions expected to generate returns in-line with PAA's return criteria (mid-teens unlevered IRR)
~10x EBITDA / ~11x DCF in 2026 and improving with synergies
Operatorship offers clear line of sight and accelerates cost and commercial synergies
`
HOBSON
EPIC Pipeline
Plains Oryx JV "POPJV" Plains EF Gathering Other Plains Assets
GARDENDALE
INGLESIDE
10
EPIC TERMINAL 10
(1) Attributable to PAA.
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |