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Investor Presentation March 2022 – Plains All American Pipeline, L.P.

Plains All American Pipeline, L.P. · Mar 1, 2022 · 45 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. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 1
    Investor Presentation March 2022
  2. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 2
    Plains On a Page Significant multi-year Free Cash Flow (FCF) Targeting +/- 1.4B in 2022 (+/- 700MM FCFaD(1)) 2022 FCFaD allocation: 75% to debt reduction, 25% to distribution growth / discretionary repurchases 2023+: increasing…
  3. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 3
    Plains: Critical Infrastructure, Integrated Model Full-service: supply aggregation, quality segregation, flow assurance, access to multiple markets Crude Oil Activities NGL Activities Crude Oil (blue) NGL (red) 4
  4. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 4
    Overview of Plains Business Integrated model across crude & NGL business platforms Crude Oil Segment NGL Segment Assets: Pipelines, storage, terminalling & trucks Assets: Fractionation, straddle, pipelines, storage, terminalling &…
  5. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 5
    Fundamentals: Increasing Demand, Tighter Oil Balance North American hydrocarbons are key to meeting global demand Global Supply & Demand Rebalancing(1) Prolonged Reduction in Upstream Investment(2) MMB/d ( Billions invested) World…
  6. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 6
    Levers for Maximizing FCF and Unitholder Returns Capture volume growth with minimal CAPEX Permian Anticipate +/- 600 mb/d of production growth for next several years Operating leverage can enable throughput & tariff benefit…
  7. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 7
    Permian Key to Meeting Global Energy Demand Expect Permian to Drive Vast Majority of U.S. Short-Cycle Production Growth (3) New Supply Development Breakevens(1) Permian Positioned for Multi-Year Growth Mb/d US Permian 40 8,000…
  8. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 8
    Committed Permian Acreage & Term Supply Supports Long-Term Volume Security & Operating Leverage on Plains Systems High-quality, long-term committed acreage dedicated to Permian JV gathering systems 4mm acres, 6.5-yr wtd. avg.…
  9. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 9
    Long-Haul Pipelines Substantially Backed by Long-Term 3rd Party Contractual Commitments Combination of supply-push and demand-pull pipelines Integrated with Plains hub terminals at Cushing, Midland, Patoka and St. James Key…
  10. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 10
    Crude Oil Hub Terminals: Leading Demand-Hub Positioning Enables Pipeline & Commercial Opportunities, Strong Connectivity Supports Demand Cushing Permian(1) (27MM capacity) (19MM capacity) Patoka St. James (7MM capacity) (15MM…
  11. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 11
    NGL Segment: Highly Integrated & Strategically Positioned Assets Aggregate, Process, Transport & Sell Co-Ed Pipeline PAA Capacities Directional Illustration Ownership: 100% Capacity: 70 mb/d Fort Saskatchewan Ownership: 100% PFS,…
  12. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 12
    Large Footprint with Strong History of / Opportunities for Accretive Optimization With maturation of the industry, Plains commercial focus shifted from large capital projects to aligning assets with natural owners, partners &…
  13. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 13
    Emerging Energy Team Cross-functional team led by Vice President of Emerging Energy & Process Optimization Evaluating wide range of energy evolution opportunities through thoughtful and disciplined approach in and around our assets…
  14. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 14
    2022(G): Financial Metrics (as furnished February 9th 2022) Generating strong FCF, strong coverage & continuing leverage reduction ( millions, except per-unit metrics) Cash Flow Adjusted EBITDA / DCF 2021 2022(G) (+/-) Cash Flow from…
  15. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 15
    2022(G): Operational Metrics (as furnished February 9th 2022) Continued growth in Permian volumes; shift in mix to fill Wink-to-Webster (W2W) MVCs Operational Guidance Permian assets leveraged to production growth (table data…
  16. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 16
    Current Financial Profile S&P / Fitch: BBB-, Stable Moodys: Baa3, Stable 12/31/20 12/31/21 Cash & Equivalents 22 449 +425 Upgraded to IG by Moodys (Nov-21) Short-Term Debt 831 822 Reduced total debt 1B since YE-20 Long-Term Debt…
  17. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 17
    Disciplined Capital Investment Multi-Year Buildout Complete, Significant Operating Leverage, Focused on High-Return Projects ( millions) Consolidated Run Rate Investment: 250MM - 350MM Investment 1,380 50% Wellhead & CDP…
  18. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 18
    Financial Strategy & Capital Allocation Priorities Maximizing FCF & increasing allocation to equity holders as leverage decreases Financial Strategy Maintain Capital Allocation Priorities Achieve Investment Grade credit ratings…
  19. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 19
    Sources & Uses of Cash Continuing debt reduction while increasing returns to equity holders over time 2021 2022 Guidance 2023 & Beyond (Directional Allocation) 11% Repurchases Distribution growth / 875 discretionary repurchases…
  20. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 20
    Investment Considerations Significant multi-year Free Cash Flow (FCF) Targeting +/- 1.4B in 2022 (+/- 700MM FCFaD(1)) 2022 FCFaD allocation: 75% to debt reduction, 25% to distribution growth / discretionary repurchases 2023+:…
  21. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 21
    Sustainability For full sustainability report and disclosures, please visit https://www.plains.com/sustainability.
  22. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 22
    Plains 2020 Sustainability Report Highlights Comprehensive description of Sustainability program, strategy and performance, along with 130+ quantitative metrics (expanded from 64 in 2019), highlights include: 20% 3-yr GHG reduction;…
  23. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 23
    Scope 1 & 2 Emissions 20% improvement over last 3 years Total Scope 1 + Scope 2 GHG Emissions (mmt CO2e) 2020 Scope 1 Emissions 2% Methane 2.4 2.2 1.9 98% Other Emissions 2018 2019 2020 -- Evaluating an emissions…
  24. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 24
    Context for Emissions Estimations & Comparisons Emissions estimation methodologies vary across the industry Plains reported comprehensive emissions for the full enterprise o Includes all material activities (i.e. pipeline, trucking,…
  25. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 25
    Emissions in Perspective 2019 Total Scope 1 + Scope 2 GHG Emissions Worldwide Among Peers(1) (mmt CO2e) Emissions (mmt CO2e)(2) 18 43,100 16 Energy & Non-energy Sources 14 36,800 12 Energy Sources 10 Average U.S. Emissions (mmt…
  26. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 26
    Plains Governance Closely Aligned with C-Corps 1 for 1 Economic & Voting Rights 100% of Directors subject to public election (staggered 3-yr rolling basis) PAA GP HOLDINGS LLC (PAGP GP) (Unified Board of Directors) Mandatory…
  27. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 27
    Multiple Enhancements to Executive Compensation Aligned with Investor Feedback Have engaged independent compensation consultant and have proactively sought investor feedback Examples of recent enhancements: 2018: Converted annual…
  28. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 28
    Appendix
  29. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 29
    Hydrocarbons Remain Critical to Supply Global Energy Demand North America key to global supply response Tight global energy markets highlighting need for security of global supply Global demand approaching pre-COVID levels, against a…
  30. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 30
    North American Energy: The Responsibly Produced Option TOP 10 LIQUIDS PRODUCING NATIONS MMB/D AT YE2021 UN SDG RANK (LOWER IS FAVORABLE) USA 20.0 Canada 21 SAUDI ARABIA 11.9 USA 32 RUSSIA 11.2 Russia 46 CANADA 5.8 China 57 IRAQ…
  31. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 31
    4Q & FY 2021 Earnings Call Highlights & Outlook (Feb 9th) Solid execution, reducing debt & returning cash to equity holders Adj. EBITDA(1): 4Q 564MM / FY 2021 2,196MM Since Equity Repurchases: 4Q 61MM / FY 2021 175MM 3Q21 Call…
  32. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 32
    2021 Execution & Results Reinforces Positioning for 2022+ Maximizing 1.65B of FCFaD (600MM increase from Feb(G)) FCF Stronger asset sales 125MM (875MM total), Capex 230MM, Adj. EBITDA 65MM Capital 1B debt reduction & 450MM cash on…
  33. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 33
    Key Drivers: 2021 vs. 2022(G) 2022 growth offsetting 2021 unique items (Adj. EBITDA attributable to PAA, millions) 2021 Unique Items: (200MM) 2022 Growth Items: 200MM 2,196* +/- 2,200 Feb(G): 2,150 Ft. Sask / Margin-Based Projects…
  34. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 34
    4Q21 Earnings Call Key Takeaways 2021 2022 2023+ Maximize FCF 1.65B FCFaD ( 600MM from Feb(G)) 1.4B FCF (700MM FCFaD(1)) Expecting meaningful FCF Capital Discipline Capex 230MM from Feb(G) Run-Rate (Investment &…
  35. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 35
    Overview of 2022 Goals Run a safe, reliable and responsible operation Generate meaningful Free Cash Flow Strengthen balance sheet / financial flexibility Increase Returns to Equity Holders 36
  36. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 36
    Free Cash Flow: Historical Detail GAAP CFFO to Non-GAAP FCF 2016 2017 2018 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 3Q21 4Q21 2021 Net Cash Provided by Op. Activities (GAAP) 733 2,499 2,608 2,504 890 84 282 258 1,514 791 235 336 635…
  37. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 37
    Permian to USGC: Wink to Webster Current Status Midland-to-Webster - interim service Jan-2021 MVCs ramping from 1Q22 through 2023 Deferred portion of investment to align w/ MVC ramp Midland Project Overview 1.5 mmb/d capacity (36…
  38. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 38
    Patoka to St. James: Capline Reversal Current Status In-service as of Jan-2022 Patoka Initial throughput 100mb/d, with additional capacity to meet growth in Canadian production Project Overview Reversal of 40 pipe to southbound…
  39. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 39
    Crude Segment Detailed Data (2019 2021) Crude Oil Segment Considerations / Context: Pipeline Tariff Volumes(2) (mb/d) 6,911 6,974 7,202(3) 1.4B in non-core / strategic JV asset sales since 2019 6,201 6,522 6,807 6,006 6,162 5,656…
  40. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 40
    Plains Permian Tariff Volumes (tariff volumes in MB/d) 5,297 Winter Storm Impact 1,146 Long-Haul 4,427 4,394 4,189 1,048 3,753 1,110 1,020 835 1,905 Intra-Basin 1,907 1,687 1,762 1,602 Oryx 649 2,246 Gathering 1,472…
  41. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 41
    NGL Segment Detailed Data (2019 2021) NGL Segment Considerations / Context: 175MM in non-core asset sales since 2019 Fractionation (mb/d) Seasonally stronger demand / sales in winter months 157 154 137 140 142 144 129 129 127 Frac…
  42. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 42
    Additional NGL Detail: Fractionation Volumes by Asset (mb/d) Fort Sask Empress 59 51 53 54 22 23 23 49 46 48 20 20 20 20 42 42 45 45 18 18 18 19 17 29 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 (1) 1Q19 2Q19…
  43. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 43
    Crude Oil & NGL Segment Detailed Data (2021 by Quarter) Three Months Ended Three Months Ended Three Months Ended Three Months Ended Twelve Months Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 December 31,…
  44. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 44
    Definitions Adjusted EBITDA: adjusted earnings before interest, taxes, depreciation and amortization (Consolidated) Attributable to PAA where noted; Segment Adjusted EBITDA by definition is attributable to PAA Implied Distributable…
  45. Investor Presentation March 2022 – Plains All American Pipeline, L.P. – slide 45
    Investor Presentation March 2022

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