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MARCH 2015 UPDATE – Plains All American Pipeline, L.P.

Plains All American Pipeline, L.P. · Mar 12, 2015 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 1
    March 2015 Update www.plainsallamerican.com NYSE: PAA & PAGP 1
  2. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 2
    Discussion Outline Overview of Plains All American The Current Environment & PAAs Positioning Looking Forward Future Growth, Financial Strategy, & Summary Q&A www.plainsallamerican.com NYSE: PAA & PAGP 3
  3. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 3
    Plains All American Structure One Business - Two Ways to Invest (NYSE: PAA & PAGP) General Partner General Partner Owners (1) PAGP Class A Shareholders 33% Structured as a limited partnership, but has checked the box to be taxed…
  4. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 4
    Plains All American Profile (NYSE: PAA & PAGP) Financial Profile(1) PAA Assets(4) Total Enterprise Value 46.9 B Pipelines (active miles) 18,900 miles PAA Equity Market Cap 19.4 B Liquids Storage 125 MMBbls PAGP Equity Market Cap(2)…
  5. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 5
    PAAs Integrated North American Assets Are Located in Major Crude Oil Production & Liquids Rich Areas as well as Inland and Coastal Terminal & Interchange Locations PAA Crude Oil Activities NGL 20% Crude oil 75% NGL…
  6. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 6
    The Current Environment & PAAs Positioning www.plainsallamerican.com NYSE: PAA & PAGP 7
  7. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 7
    Summary of the Current Oil Price Environment Crude Oil Price Movement: June 14 - Present Price Differential to WTI (Cushing) 15.00 120 10.00 110 Price as of % Change 5.00 100 2/24/2015 Since June - 90 49.28 -49% 80 (5.00)…
  8. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 8
    How Did We Get Here US and Canadian Petroleum Supply Growth Has Exceeded Global Demand Growth Since 2011 Since 2011, cumulative 4.5 Cumulative World-Wide +1.4 mmb/d production growth has 4.0 Supply Growth exceeded…
  9. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 9
    PAAs Business Model and Integrated Asset Base are Well Positioned for All Types of Market Conditions PAA Business Model Understand the markets Fundamental supply/demand drivers Volatility, seasonality, and cyclicality Performance in…
  10. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 10
    PAA Has Demonstrated Its Ability to Deliver Solid Performance In Volatile Markets and Fluctuating Supply and Demand Scenarios Historical Rig Count 1,800 of Rigs (Oil & Oil/Gas) 1,600 1,400 1,200 1,000 800 600…
  11. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 11
    PAAs Disciplined Management of Distribution Coverage Results in Preparedness for Market Disruptions 11-Year Historical WTI Crude Oil Price Distribution Coverage 131%(1) 160 14% 1,800 140 Shale Oil Development Era YOY…
  12. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 12
    PAA Capital Structure Management Has Remained Disciplined Throughout Periods of Growth and Challenging Markets Treasury LT Debt to Adj. EBITDA(1) 5.0x Equity Market & Interest Rate Environment Yield 17.0 700% 6% 16.0 10-Yr US…
  13. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 13
    Looking Forward www.plainsallamerican.com NYSE: PAA & PAGP 14
  14. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 14
    Excerpt From PAAs June 5, 2014 Analyst Meeting Assessment The Environment PAA Is Positioning For (June 5, 2014) As of 2/25/15 Continued robust growth in U.S. & Canadian crude oil production through 2018 but in a non-linear…
  15. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 15
    Despite Current Weakness, The Long Term Outlook Remains Fundamentally Solid For The Industry & Midstream Oil MLPs Daily Production Rate Outlook Developable Resource Base Volumes Pre-Crash Post-Crash 100+ 80 to 90 -- For…
  16. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 16
    Current Environment of 50 Oil Is Not Sustainable Illustrative Depiction of PAAs View of an Oil Price Recovery Lower 48 U.S. Oil Production Price Sensitivity Common Common production point production point reached 24 reached 36…
  17. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 17
    Future Growth, Financial Strategy, & Summary www.plainsallamerican.com NYSE: PAA & PAGP 18
  18. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 18
    Long-term Demand for Energy Infrastructure Remains.. Adjusted EBITDA by Segment 2015 Guidance Summary (In Millions) (February 4, 2015) 2,500 2,350 PAAs 2015 guidance assumes an 50/Bbl 2,282 oil environment will linger for the…
  19. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 19
    ..as does PAAs Opportunity to Invest in Growth Projects at Attractive Rates of Return Relative to PAAs Cost of Capital (In Millions) Annual Levels of Organic Investment 2,400 Strong Visibility for Growth 2,026 2,000 1,850…
  20. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 20
    PAAs Asset Base + Business Model + Capital Structure = Attractive Unlevered Return Profile on Organic Investments Targeted Return Profile vs. WACC Key Takeaways The gold region below represents a Vast majority of PAAs organic capital…
  21. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 21
    Recent & Current Investments in Organic Capital Projects Provide Visibility for Future Distribution Growth Organic Growth Capital Investment Directional Example of Time Lag Between 2,400 Completion of Annual 2,026 2,000 1,850…
  22. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 22
    Long Term, Acquisitions Expected to be Additive to Organic Growth PAA Remains Active, but Disciplined The MLP Sector Growth PAA Acquisitions Total: 11 Billion (2001-2014) 120 MLPs 110 94 3.0 2006 More Critical to M&A Today: 72…
  23. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 23
    PAAs Financial Strategy Fund growth capital with at least 55% equity and excess cash flow Closed a 1.1 billion equity offering this week Minimize capital market risk: early/pre-funding is a priority Target a credit profile of: LT…
  24. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 24
    PAA & PAGP Capitalization & Liquidity As of December 31, 2014 Capitalization Capitalization (in millions) PAA PAGP Long-term Debt 8,762 9,298 Partners' Capital 8,191 9,381 Total Book Capitalization 16,953 18,679 Credit Stats &…
  25. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 25
    Consistent Execution Of PAAs Strategy Has Driven Attractive Distribution Growth & Total Returns Over Multi-Year Period Annualized Year-end Distributions(1) Targeting Increased 41 out of last 43 quarters 7% Growth 3.00 2.83 2.64…
  26. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 26
    Key Takeaways Strategically located, geographically diverse & operationally flexible assets Well positioned to weather a challenging crude oil market environment, benefit from volatile market conditions and service high-growth crude…
  27. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 27
    Q&A www.plainsallamerican.com NYSE: PAA & PAGP 28
  28. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 28
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 29
  29. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 29
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 30
  30. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 30
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 31
  31. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 31
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 32
  32. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 32
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 33
  33. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 33
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 34
  34. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 34
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 35
  35. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 35
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 36
  36. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 36
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 37
  37. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 37
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 38
  38. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 38
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 39
  39. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 39
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 40
  40. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 40
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 41
  41. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 41
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 42
  42. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 42
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 43
  43. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 43
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 44
  44. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 44
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 45
  45. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 45
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 46
  46. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 46
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 47
  47. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 47
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 48
  48. MARCH 2015 UPDATE – Plains All American Pipeline, L.P. – slide 48
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 49

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