Plains All American Pipeline, L.P. Q2 FY2025 earnings call

• Announced sale of substantially all NGL business to Keyera for ~$3.75 billion, expected close in Q1 2026, with net proceeds of ~$3 billion to be used for bolt-on M&A and capital structure optimization. • Bolt-on acquisition of an additional 20% interest in BridgeTex Pipeline Company LLC for $100 million net to Plains, bringing total interest to 40%. • Year-to-date, 5 bolt-on transactions totaling ~$800 million completed. • Second quarter crude oil segment adjusted EBITDA $580 million,受益于Permian产量增长、近期bolt-on收购贡献及炼油客户从一季度停机中恢复带来的更高吞吐量；NGL segment adjusted EBITDA $87 million，因正常季节性和季度环比压裂价差降低而环比下降。 • Full year 2025 EBITDA guidance range $2.8 billion to $2.95 billion remains intact, likely in lower half. • 2025 adjusted free cash flow ~$870 million; growth capital guidance increased to $475 million, maintenance capital ~$230 million.

Crude Oil segment: Adjusted EBITDA of $580 million. NGL segment: Adjusted EBITDA of $87 million, with the majority reclassified as discontinued operations following the NGL business sale announcement. Revenue contribution: Prior to reclassification, NGL segment was a significant portion, but post-sale, crude oil segment is the focus.

• Full year 2025 EBITDA guidance range $2.8 billion to $2.95 billion remains unchanged, expected to be in the lower half. • 2025 adjusted free cash flow is expected to be approximately $870 million. • Growth capital guidance for 2025 has been increased to $475 million, with maintenance capital trending closer to $230 million.

• Market volatility which could impact financial performance. • Uncertainties in executing bolt-on M&A strategies and identifying attractive opportunities. • Macroeconomic factors that may affect demand for crude oil and NGLs, impacting revenue and margins.

Q: When you think about assets in the Mid-Con, there may be more onetime step-ups in synergy versus the Permian that could have more organic growth on top of that. So when we look at more bolt-on strategies and M&A, how do you factor in the sensitivity to basin level growth. And in general, what basins are you seeing more growth in over time?

A: Jeremy L. Goebel says they take all into consideration, use DCF, look at integrated networks, consider market fundamentals, and need to beat return thresholds by 300-500 basis points.

Q: Can you provide some color on real-time demand signals, any sign of slowdown or anything you're seeing on the refining or on the export side?

A: Jeremy L. Goebel says to follow refiners, who have talked about improving diesel demand and strong demand, with no significant slowdown seen recently.

Q: Can you speak to the BridgeTex, maybe how it's situated contractually and the value?

A: Jeremy L. Goebel says they're excited about consolidating the interest with ONEOK, working together to optimize the pipeline's operating capacity and cost structure.

Q: On the CapEx increase, how much is due to producer activity pickup or commercial success?

A: Christopher R. Chandler says it's a combination of new opportunities not in original guidance, bolt-on strategy bringing synergy capture, and some deferrals from previous years.

Q: Is there a shift in messaging on distribution growth?

A: Al P. Swanson says no intended shift, they intend to grow distribution over a multiyear period and expect to redeploy proceeds in a way accretive to DCF to enhance dividend growth.

Q: Thoughts on second half of 2025 guidance and back half performance?

A: Jeremy L. Goebel says contract roll-offs of Cactus II, Cactus I, and Sunrise in second half, but backfilled with growth.

Q: Weighing ability to do larger deals with $3B from NGL sale?

A: Wilfred C.W. Chiang says they have a robust BD team and financial flexibility to absorb various opportunities.

Q: Clarification on BridgeTex and retained U.S. NGL business?

A: Jeremy L. Goebel says BridgeTex is independent purchase, retained U.S. NGL business is minor, retained for tax and operations, to be monetized later.

Q: CapEx increase and macro theme?

A: Christopher R. Chandler says combination of new opportunities, bolt-on strategy, and deferrals; likely to see modest CapEx growth with good opportunities.

Q: Quantification of retained NGL assets?

A: Jeremy L. Goebel says retained NGL assets have EBITDA in $10M to $15M range and valuation in $100M to $200M range.

Q: Likelihood of moving towards midpoint of EBITDA guidance?

A: Al P. Swanson says guidance is for lower half, not low end, with crude oil prices near high end of previous range.