Tudor Pickering Holt 2016 Hotter n Hell Conference Houston, TX June 16, 2016 www.plainsallamerican.com NYSE: PAA & PAGP 1
PAA: Strong Presence In All Major U.S. And Canadian Crude Oil Production Areas And Substantially All Inland And Coastal Crude Oil Terminal / Interchange Locations Enterprise value +/- 29 billion The most integrated U.S. crude oil…
Crude Oil Industry Outlook www.plainsallamerican.com NYSE: PAA & PAGP 4
PAA Crude Oil Industry Outlook The stage is being set for a meaningful recovery in crude oil prices; demand for increased U.S. shale production; surge in drilling & completion activities Macro factors: P World petroleum demand is…
The U.S. May Well Be Taking on the Role of Swing Producer, But . a high level of activity is necessary just to maintain U.S. production volumes and raising production requires even more activity. At year end 2015, more than half of the…
The Treadmill Moves Faster As Production Rises It takes a lot of new well adds to offset old well declines BY Underlying New YE Production Decline Underlying Production Y/Y Production Production Year (mb/d) (mb/d) Decline %…
Not All Equipment, Labor and Locations Are Equal Ramp Up Time Will Likely Take Longer Than Ramp Down Time Currently operating with / in the best of the best equipment, labor and locations Directional Illustration Only Rig Drilling &…
High Inventory Levels Provide A Near Term Buffer But Can Be Meaningfully Reduced In A Short Period of Time Dotted purple line based on estimates prepared by PAA in late 2015 (mbls) DOE Total Crude Stocks (Exc. SPR) U.S. Crude Oil…
Macro Takeaways The stage is being set for a meaningful recovery in crude oil prices Beyond absorption of some ready, idle capabilities, there will be a delay between when significant demand for increased drilling and completion…
U.S. Crude Oil Fundamentals Drilling Down Into Selected Regions www.plainsallamerican.com NYSE: PAA & PAGP 11
PAAs Three Production Forecasts - Major Assumptions These cases are not projections of when prices will recover, but illustrations of production profiles resulting from assumed increases in activity levels at given points in time…
Resulting U.S. Production Forecasts Observation: Extended delays in activity resumption results in a semi- permanent reduction in volumes competing with OPEC for market share. (mb/d) Lower 48 Onshore Oil Production Forecast 9,000…
Comparison Of Historical And Projected Scenario B Rig Counts (Excluding DUC Incr/(Decr), Rig Activity Is A Directional Indicator Of Completion Activity) Rig Count PAA Projected Total Lower 48 US Oil Rigs (Exc. GOM) Scenario B Case…
Comparing The 2009 Cycle vs. The Current Cycle So Far & PAAs Scenario B Activity Forecast Rig Count Oil Cycle Comparison Total US Rig Count 2,500 2009 Cycle Current Cycle Scenario B 10 Months 2,000 20 Months and Growing Average…
Lower 48 Onshore Growth: Comparison Of PAAs Scenario B To Historical Trajectory Higher Base Decline Offsets Portion Of Improved Efficiency 2011 to 2015 Actual Volume Growth 2017 to 2020 Projected Volume Growth* P Average Rig Count:…
Eagle Ford Decline Profile Scenario B Case Eagle Ford Production Declines 1,800 5 Years Eagle Ford SandEagle Historical Deliveries Ford vs. New Sand Well Completions Deliveries Total Eagle Ford Production (mb/d) 1,600 70%…
Williston Decline Profile Scenario B Case Williston Production Declines 1,600 Historical Williston Williston vs. Sand Deliveries Sand Deliveries New Well Completions 80 250 60% from Total Williston Production (mb/d) 1,400…
DJ Basin Decline Profile Scenario B Case 500 DJ Production Declines DJ Basin Historical Sand Deliveries vs.Deliveries DJ Sand New Well Completions 450 25 200 Total DJ Production (mb/d) 400 80% from 2020 2014/2015 180 3…
Permian Basin Decline Profile Scenario B Case Permian Production Declines Historical Permian Permian vs. Sand Deliveries Sand Deliveries New Well Completions 3,000 140 350 Total Permian Production (mb/d) 2,500 55% from 120…
Favorable Intermediate / Long-Term Outlook Significant amount of undrilled inventory throughout North America Undrilled Inventory In Selected Resource Plays Area HZ Est. of 2014 2015 Major U.S. Drilling Acreage Wells Drilled…
Sisyphus (a.k.a. The PLAINS RESOURCES Independent Energy Company) Slide from 1/19/99 HPF Presentation --(Oil & Gas closed at 12.08 per barrel and 1.82 per mcf on 1/19/99)
PLAINS The Independents View RESOURCES Slide from 1/19/99 HPF Presentation --(Oil & Gas closed at 12.08 per barrel and 1.82 per mcf on 1/19/99)
The Realities of a Cyclical Business PLAINS RESOURCES Slide from 1/19/99 HPF Presentation --(Oil & Gas closed at 12.08 per barrel and 1.82 per mcf on 1/19/99)
The Realities Of Crude Oil Price Cycles 160 Slide from September 2015 HPF Presentation 140 HPF HPF Jun 2009 120 Mar 2007 HPF Sep 2015 100 80 HPF HPF Jan 2002 Jan 1999 60 40 20 0 1997 1998 1999 2000 2001 2002 2003…
Defined Resource Base Is Extensive, Drilling & Completion Techniques Proven And PAAs Assets Are Located In All The Right Places Its Not A Question Of If The Resource Gets Developed, But Instead When (1) Yellow highlighted Selected…
Substantial Capacity Across The System Leverages PAA To An Industry Recovery Available Capacity 100 mb/d 0-100 mb/d Substantially Full - With Low to No Capex - PAA Handles 4.6 mmb/d of Crude Oil & NGLs Note: Map includes 3rd…
Illustration OF PAAs Ability To Serve The Industrys Supply Push & Demand Pull Needs Bakken / Patoka Canadian Crude to St. James Cushing to Broom Cushing Diamond STACK Memphis Yellow highlights Stack Injection Station…
PAAs Permian Assets Are Well Positioned Delaware Basin Central Basin Midland Basin Legend Trunkline Gathering New Pipeline Additions www.plainsallamerican.com NYSE: PAA & PAGP Note: Basin shading is for illustrative…
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