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Barclays Energy Power Conference – Plains All American Pipeline, L.P.

Plains All American Pipeline, L.P. · Sep 9, 2020 · 58 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. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 1
    Investor Presentation September 2020
  2. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 2
    Presentation Content Midstream / Plains Value Proposition Business Overview Outlook & Positioning Sustainability Appendix PAA PAGP 3
  3. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 3
    Midstream / Plains Value Proposition
  4. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 4
    Midstream Sector Solid Relative Value Proposition Relative Valuation 2014 2020 YTD (EV / NTM EBITDA) Midstream valuations have decreased relative to other asset classes, while balance sheet health, governance, financial discipline…
  5. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 5
    Plains: Strong Relative / Absolute Value Highly integrated asset base, investment grade balance sheet, leading Permian franchise Predominately fee-based, substantial long-term contractual support Positioned to benefit from supply /…
  6. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 6
    Plains All American: Financial & Operating Profile Large Integrated Asset Footprint; Investment Grade; Attractive Yield / Free Cash Flow Profile Financial Profile Built over decades through multiple cycles. Positioned for the…
  7. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 7
    Integrated Model, Critical Infrastructure Full-service: supply aggregation, quality segregation, flow assurance, access to multiple markets Aggregation and transportation service in key Integrated business model onshore supply basins…
  8. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 8
    Fee-Based Cash Flow Generated From Operating Critical Infrastructure Strategically located assets, Significantly contracted, Long-term partnerships, Customer alignment Transportation Segment Reporting Segments Crude & NGL pipelines,…
  9. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 9
    Balance of Supply Push & Demand Pull Assets, Strong Alignment with Industry Partners Asset* Producers Peers Marketers Refiners Advantage EF JV White Cliffs BridgeTex Saddlehorn Cactus II Sunrise II W2W Value For Customers…
  10. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 10
    Leading Demand-Hub Positioning Enables Pipeline & Commercial Opportunities, Reinforces Downstream Customer Relationships (Examples: Cushing & St. James terminals) Inbound Outbound (direct connections underlined) Cushing Inbound…
  11. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 11
    Leading Position in World-Class Permian Resource Integrated wellhead to market system, meaningful contractual support PAA Assets (in Blue) Market Access Midland Wink Cushing Houston Corpus Ingleside Plains Permian Profile…
  12. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 12
    Outlook & Positioning
  13. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 13
    Expect NAM Production Growth to be Driven by Timing & Pace of Global Demand Recovery Global Liquids Demand Scenarios mmb/d 3rd party estimates reflect meaningful 0.0 change from Q4 2019 EIA August 2020 STEO recovery in next 5…
  14. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 14
    2020 Guidance Recap (000s, except per-unit results) Adj. EBITDA 2020 (May-G) 2020 (Aug-G) Transportation 1,520 1,540 +20 Transportation: near-term COVID-related crude oil Facilities 680 700 +20 demand uncertainty Fee-Based…
  15. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 15
    Financial Focus Areas Achieve and maintain mid-BBB / Baa credit ratings Committed to generating Free Cash Flow (after dividends), increasing cash returned to equity holders and further deleveraging Via buy-backs / distributions…
  16. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 16
    Capitalization & Liquidity / Other Updates S&P / Fitch: BBB-, Stable Moodys: Ba1, Positive Completed Sr. Notes offering in Credit Stats & Liquidity 12/31/19 3/31/20 6/30/20 Target June (750mm, 10-yr, 3.80%) LT Debt / Book Cap 41% 49%…
  17. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 17
    Recent Actions / Ongoing Initiatives Enhance Positioning Increased 2020 Adj. EBITDA Guidance 3% in August Resilient business performance in challenging environment Reduced 2020 / 2021 Expansion Capital Program by 850mm 2022+: expect…
  18. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 18
    Focus Areas Operating Excellence Financial Strategy Prioritizing IG balance sheet, Employee health & well-being financial flexibility, free cash flow, Operating safely, reliably & responsibly capital discipline & shareholder…
  19. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 19
    Completing Multi-Year Capital Program & Optimizing Portfolio Remaining strategic projects nearing completion Optimizing asset portfolio capital-efficient brownfield projects non-core asset sales strategic / accretive greenfield…
  20. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 20
    Sustainability
  21. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 21
    Our Sustainability Commitment Plains strives to promote sustainability through transparent business practices and safe and responsible use of resources. We believe that continuous improvement of our environmental, social and…
  22. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 22
    The Building Blocks of Our Sustainability Program VALUES FOCUS AREAS OVERSIGHT ADMINISTRATION Environment Board of Directors Implementation Safety & Environmental Stewardship - Operational Safety - Environmental Strategy - Ensure…
  23. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 23
    Environmental Program and Performance Our goal is zero federally reportable releases FEDERALLY REPORTABLE RELEASES We have reduced federally reportable releases by nearly 50% NUMBER OF RELEASES over the past five years 45 We have a…
  24. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 24
    Health and Safety Program and Performance Our goal is zero recordable injuries Recordable Injury Rate TRIR per 200,000 work hours We have improved our total recordable incident rate by more than 50% over the past three years. 1.2…
  25. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 25
    Key Governance Characteristics / Structure Unified Board of Directors PAA GP HOLDINGS LLC (PAGP GP) (Unified Board of Directors) Majority Board Independence (64%) Annual Meetings for the Public Election of (NYSE: PAGP) 1099…
  26. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 26
    Continuous Improvement of our Sustainability Efforts Our priority remains ensuring safe, reliable and sustainable operations. We have: Established executive oversight and a VP-level working group responsible for implementation, with…
  27. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 27
    Key Takeaways
  28. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 28
    Key Takeaways: Essential Business, Critical Assets, Constructive Long-Term Fundamentals, Ongoing Initiatives Enhance Positioning Plains system is critical to North American production Highly integrated North American footprint…
  29. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 29
    APPENDIX
  30. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 30
    Sustainability (ESG) Please visit the Sustainability section of our Website (www.paalp.com) for full sustainability presentation and disclosures.
  31. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 31
    Energy Delivers Quality of Life Roughly 50% of the worlds population ranks low to medium on the UN Human Development Index. 940 million people13% of the worlds population: Live without access to electricity Have limited access to…
  32. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 32
    North American Energy: The Responsibly Produced Option TOP 10 LIQUIDS PRODUCING NATIONS MMB/D AT YE2019 UN SDG RANK LOWER IS FAVORABLE USA 20.8 CANADA 20 RUSSIA 11.5 USA 35 CHINA 39 SAUDI ARABIA 11.5 CANADA 5.6 RUSSIA 55…
  33. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 33
    Plains Plays A Critical Role in Fueling Quality of Life The world needs responsibly produced energy, and Plains is doing our part to fill those needs. Each day Plains moves more than 6 million barrels of crude oil and NGLs, benefitting…
  34. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 34
    Our Commitment to Sustainability Builds Upon Our Core Values SAFETY & RESPECT & ETHICS & ENVIRONMENTAL ACCOUNTABILITY FAIRNESS INTEGRITY STEWARDSHIP We conduct our operations In conducting our business, we We treat each other and…
  35. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 35
    ESG Focus Areas ENVIRONMENT SOCIAL GOVERNANCE Operational Safety Employee Considerations Governance Practices Environmental Strategy Stakeholder Engagement PAA PAGP 36
  36. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 36
    Business Overview
  37. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 37
    Energy Industry, Midstream Sector and Plains Have Evolved Significantly through the Years mb/d Midstream Entry Plains Resources IPO Plains All American IPO 14,000 (Construction of (upstream predecessor) (midstream business) Cushing…
  38. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 38
    Plains Cash Flow Driven by Fee-Based Transportation & Facilities Segments (2020(G): 90% Fee-based) Facilities 110 mmbls Storage(1) Transportation 60 Bcf Nat Gas Storage 18K pipeline miles 30 Crude & NGL Rail Facilities 35 mmbls…
  39. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 39
    Transportation Segment Overview Highly integrated North American footprint; Leading Permian position Majority of assets / cash flow Impact of COVID demand destruction Highly contracted 75% of 2020 / 2021 CAPEX (1) 8,000…
  40. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 40
    Facilities Segment Overview Strategic hubs enable regional interconnectivity & support fee-based growth opportunities 8 Performance Drivers 734 711 705 700 667 7 Leased capacity and throughput at crude oil, NGL and natural gas…
  41. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 41
    Free Cash Flow GAAP CFFO to Non-GAAP FCF 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 2020 YTD Net Cash Provided by Op. Activities (GAAP) 733 2,499 2,608 1,033 431 314 726 2,504 890 84 974 Net Cash Used in Investing Activities…
  42. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 42
    2019 Annual Revenue Credit Profile Top 100 Customers Credit Quality by Rating Credit Profile of Top 100 Customers 85% Investment Grade or Secured Top 100 Customers 3% 14% 12% 90% of 2019 Consolidated Revenue Top 5 Customers:…
  43. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 43
    Market Hub Terminals: Strategic / Cornerstone Assets Enable regional connectivity & support fee-based opportunities Basin Sunrise Sunrise Cushing Midland OK TX(1) St. James Patoka LA IL Inbound Pipelines PAA PAGP 44…
  44. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 44
    Plains Cushing Terminal Unmatched connectivity, flexibility & operational capabilities (mmbbls) Largest, most interconnected facility in Cushing Cushing Hub Estimated Shell Capacity 30.0 25 25.0 Multi-grade segregation, receipts…
  45. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 45
    Plains St. James Terminal Unmatched connectivity, flexibility & operational capabilities Leading hub terminal position at key USGC hub Large-scale multi-grade handling Multiple dock options Optionality for purity NGL products Key…
  46. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 46
    Crude Oil Supply Aggregation & Sales Plays a key role in delivering value chain solutions for customers and partners Crude Oil Lease Gathering Activity (directional illustration) Value for Producers: Value For Refiners Creates…
  47. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 47
    Optimizing Pipeline & Terminal Systems Through Supply Aggregation & Market Access (Directional Illustration) Supply Aggregation -- Serving supply-push and demand-pull customers -- Supply Hub Market Access Demand Hub -- Flow…
  48. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 48
    Quality Segregation Capability Differentiates System Directional Illustration Condensate WTL WTI WTS Common Stream --ability to segregate at the lease is critical-- PAA PAGP 49
  49. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 49
    Quality Segregation Capability Differentiates System Directional Illustration Dedicated Gathering Dedicated Terminalling Condensate WTL WTI WTS Cond. WTL WTI WTS Batch Segregation --ability to segregate at the lease is…
  50. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 50
    NGL Supply Aggregation & Sale Plays a key role in delivering value chain solutions for customers and partners NGL Sales Activity (directional illustration) Purchase Produce / Process Store Transport Sell Storage Truck Spec Products…
  51. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 51
    Strategic Projects Recap of selected projects either recently completed or currently under development
  52. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 52
    Permian to USGC: Cactus II Completed 3Q19 Project Overview Midland Plains Ownership: 65% Wink Orla Capacity: 670 mb/d Crane McCamey Highly contracted, long-term MVCs Multi-grade segregation and batching Origins: Orla, Wink,…
  53. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 53
    2020 & 2021 Expansion Capital Program Overview ( billions) Expansion Capital YTD Cumulative Reductions of 850mm (37%) (By Category & Selected Examples) +/- 2.30 (1.45 Bln reduction (50%) including elimination of JV project financing)…
  54. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 54
    Permian to USGC: Wink to Webster Project sanctioned and progress advancing Project Overview 1.5 mmb/d capacity (36 diameter) Midland Highly contracted, long-term MVCs Origins: Wink & Midland Wink Destinations: Webster, Baytown,…
  55. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 55
    Brownfield Projects: Upstream of Cushing Optimizing existing system capacity through strong alignment with industry partners Saddlehorn Patoka Saddlehorn Expansion 100 mb/d expansion (fully committed) White Cliffs Sold 10%…
  56. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 56
    Brownfield Projects: Downstream of Cushing Optimizing existing system capacity through strong alignment with industry partners Diamond Expansion / Extension Patoka 200 mb/d expansion & modest extension (contractually supported)…
  57. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 57
    Brownfield Projects: Downstream of Cushing Optimizing existing system capacity through strong alignment with industry partners Cushing Red River Expansion & JV 85 mb/d expansion Wichita Falls Sold 33% interest to Delek…
  58. Barclays Energy Power Conference – Plains All American Pipeline, L.P. – slide 58
    Investor Presentation September 2020

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