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NAPTP Investor Conference – Plains All American Pipeline, L.P.

Plains All American Pipeline, L.P. · May 21, 2015 · 50 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. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 1
    NAPTP Annual Investor Conference Orlando, FL May 21, 2015 www.plainsallamerican.com NYSE: PAA & PAGP 1
  2. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 2
    Plains All American Structure One Business - Two Ways to Invest (NYSE: PAA & PAGP) (1) General Partner Owners GP Security (NYSE: PAGP) PAGP Class A Shareholders 34% Taxable, but sheltered by Investors & EMG (et. al.) 20%…
  3. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 3
    Plains All American Profile (NYSE: PAA & PAGP) Financial Profile(1) PAA Assets(4) Total Enterprise Value 48.4 B Pipelines (active miles) 18,900 miles PAA Equity Market Cap 19.9 B Liquids Storage 125 MMBbls PAGP Equity Market Cap(2)…
  4. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 4
    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…
  5. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 5
    PAA In the Information Flow Network of Activities Uniquely Positions PAA to Understand the Markets On a routine basis, PAA: Transports 4 mmb/d of crude oil & NGLs; Acts as the first purchaser of 1 mmb/d of crude oil; Handles over 50…
  6. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 6
    The Recent & Current Industry Environment www.plainsallamerican.com NYSE: PAA & PAGP 7
  7. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 7
    PAA View: You Can Have Too Much of a Good Thing Excerpt From PAAs June 5, 2014 Analyst Meeting Assessment The Environment PAA Is Positioning For (June 5, 2014) As of 5/21/15 Continued robust growth in U.S. & Canadian crude oil…
  8. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 8
    Summary of the Current Oil Price Environment June 14 - Present Crude Oil Price Movement: June 14 - Present Price Differential to WTI (Cushing) 125 15 115 10 105 Price as of % Change 95 5 05/12/15 Since June 85 - 60.75 -42%…
  9. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 9
    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…
  10. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 10
    U.S. Crude Inventories Higher Overall and at Cushing U.S. Crude Stocks at Historic Levels Cushing Crude Stocks Rising Rapidly; Currently Well-Above Historic Levels MBbls MBbls 600,000 70,000 60,000 500,000 50,000 400,000…
  11. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 11
    Looking Forward: 50 Crude Not Sustainable www.plainsallamerican.com NYSE: PAA & PAGP 12
  12. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 12
    It Will Take Time To Resolve The Current Imbalance But The World Needs Sustainable North American Production GROWTH MMBbl/d /---Without U.S. Recovery ---/ MMBbls 2.0 650 1.5 450 1.0 250 0.5 50 - (150) (0.5) (1.0)…
  13. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 13
    It Will Take Time To Resolve The Current Imbalance But The World Needs Sustainable North American Production GROWTH MMBbl/d /---Without U.S. Recovery ---/ MMBbls 2.0 650 1.5 450 1.0 250 0.5 50 - (150) (0.5) (1.0)…
  14. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 14
    It Will Take Time To Resolve The Current Imbalance But The World Needs Sustainable North American Production GROWTH MMBbl/d /---Without U.S. Recovery ---/ MMBbls 2.0 650 1.5 450 1.0 250 0.5 50 - (150) (0.5) (1.0)…
  15. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 15
    It Will Take Time To Resolve The Current Imbalance But The World Needs Sustainable North American Production GROWTH MMBbl/d /---Without U.S. Recovery---/ MMBbls 2.0 650 1.5 450 1.0 250 0.5 50 - (150) (0.5) (1.0)…
  16. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 16
    This Is Not The 80s: OPECs Current Contribution & Excess Production Capacity Is Greatly Reduced MMBbl/d 4% of Global 100 Demand 90 26% of Global Demand 80 70 60 50 40 30 20 10 - 1975 1980 1985 1990 1995 2000…
  17. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 17
    Rest-of-World Last 4 years (Ex OPEC, U.S. & Canada): High Prices, Great Capital Market Conditions, But NO Volume Growth WTI average 95.24 94.23 98.13 92.96 Brent average 111.26 111.63 108.56 99.02 Average diff 16.02 17.40 10.43 6.06…
  18. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 18
    Unprecedented Underlying Decline Rates of U.S. Production -- Requires Reinvestment to Sustain/Grow MMBbl/d Lower 48 U.S. Onshore PDP Decline 8.0 7.0 -2.2 Cumulative Decline 6.0 -3.1 5.0 -3.6 -4.0 4.0 -4.4 3.0 2.0…
  19. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 19
    Directional Indication of The Impact Price Decreases Have on Cash Flow & Capital Reinvestment Directional Illustration of Magnitude of Price Impact Oil NGL (composite bbl) Gas Average 2014 production 8.6 mmb/d 2.9 mmb/d 73.0 bcf/d…
  20. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 20
    Directional Indication of The Impact Price Decreases Have on Cash Flow & Capital Reinvestment Directional Illustration of Magnitude of Price Impact Oil NGL (composite bbl) Gas Average 2014 production 8.6 mmb/d 2.9 mmb/d 73.0 bcf/d…
  21. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 21
    The Long Term Outlook Remains Fundamentally Solid For The Industry & Midstream Oil MLPs But Requires Higher Prices Production Curve Outlook Developable Resource Base June 2015 June 2014 100+ 80 -- For illustrative purposes…
  22. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 22
    50 Oil Environment Is Not Sustainable Long-Term 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…
  23. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 23
    Industry Related Takeaways Near-term could be challenging may get worse before it gets better High inventory levels; Potential for off-line production to come back on-line (e.g. Iran, Libya, etc.) will require rebalancing within…
  24. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 24
    Future Growth, Financial Strategy, & Summary www.plainsallamerican.com NYSE: PAA & PAGP 25
  25. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 25
    Demonstrated Ability to Deliver Solid Performance In Volatile Markets and Fluctuating Supply and Demand Scenarios U.S. Land Rig Count 1,800 1,600 of Rigs (Oil & Gas/Oil) 1,400 1,200 1,000 800 600 400 2008 2009 2010…
  26. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 26
    While Maintaining Disciplined Capital Structure Management Throughout Periods of Growth and Challenging Markets Treasury LT Debt to Adj. EBITDA(1) 17.0 5.0x Equity Market & Interest Rate Environment Yield 16.0 Total…
  27. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 27
    Long-term Demand for Energy Infrastructure Remains.. Irrespective of future growth, existing production volumes must be transported to markets Adjusted EBITDA by Segment 2015 Guidance Summary (In Millions) (May 5, 2015) 2,500…
  28. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 28
    ..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 2,150 Growth 2,026 2,000…
  29. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 29
    PAAs Asset Base + Business Model + Capital Structure = Attractive Unlevered Return Profile on Organic Investments Targeted Return Profile Key Takeaways vs. WACC The gold region below represents a Vast majority of PAAs organic…
  30. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 30
    Long Term, Acquisitions Expected to be Additive to Organic Growth PAA Remains Active, but Disciplined PAA Acquisitions Total: 11 Billion (2001-2014) The MLP Sector Growth 2006 MLPs 110 120 More Critical to M&A Today: 94 3.0…
  31. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 31
    Consistent Execution Of PAAs Strategy Has Driven Attractive Distribution Growth & Total Returns Over Multi-Year Period Annualized Year-end Distributions(1) Targeting Increased 42 out of last 44 quarters 7% Growth 3.00 2.82 2.64…
  32. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 32
    PAGP Distribution Growth Summary & Outlook Annualized PAGP Distribution 1.00 0.95 0.923 0.888 0.90 0.85 0.812 0.80 0.763 0.75 0.7336 0.70 0.6822 0.63914 0.65 0.59616 0.60 0.55 0.50 (2) IPO Q1 2014(1) Q2 2014 Q3 2014 Q4…
  33. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 33
    Key Takeaways Strategically located, geographically diverse & operationally flexible assets Well-positioned to weather a challenging crude oil market environment, to benefit from volatile market conditions and to service major N.A.…
  34. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 34
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 35
  35. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 35
    www.plainsallamerican.com NYSE: PAA & PAGP 36
  36. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 36
    www.plainsallamerican.com NYSE: PAA & PAGP 37
  37. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 37
    www.plainsallamerican.com NYSE: PAA & PAGP 38
  38. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 38
    www.plainsallamerican.com NYSE: PAA & PAGP 39
  39. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 39
    www.plainsallamerican.com NYSE: PAA & PAGP 40
  40. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 40
    www.plainsallamerican.com NYSE: PAA & PAGP 41
  41. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 41
    www.plainsallamerican.com NYSE: PAA & PAGP 42
  42. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 42
    www.plainsallamerican.com NYSE: PAA & PAGP 43
  43. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 43
    www.plainsallamerican.com NYSE: PAA & PAGP 44
  44. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 44
    www.plainsallamerican.com NYSE: PAA & PAGP 45
  45. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 45
    www.plainsallamerican.com NYSE: PAA & PAGP 46
  46. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 46
    PAA Non-GAAP Reconciliations www.plainsallamerican.com NYSE: PAA & PAGP 47
  47. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 47
    www.plainsallamerican.com NYSE: PAA & PAGP 48
  48. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 48
    www.plainsallamerican.com NYSE: PAA & PAGP 49
  49. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 49
    www.plainsallamerican.com NYSE: PAA & PAGP 50
  50. NAPTP Investor Conference – Plains All American Pipeline, L.P. – slide 50
    www.plainsallamerican.com NYSE: PAA & PAGP 51

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