Plains All American Pipeline, L.P. Q3 FY2025 earnings call

• Successfully executed on multiyear strategy, lowering leverage, maximizing free cash flow, and optimizing system. • Pending sale of NGL assets expected to close early 2026, with proceeds redeployed to DCF accretive bolt-ons. • Closed acquisition of remaining 45% operating interest in EPIC Crude Holdings for ~$1.3 billion, owning 100% of EPIC Crude pipeline. • EPIC acquisitions are highly synergistic, expected to generate mid-teens unlevered return, with plan to rename pipeline system Cactus III. • NGL divestiture on schedule, with majority proceeds redeployed through EPIC acquisition. • Adjusted EBITDA guidance narrowed to $2.84 billion to $2.89 billion for 2025, with benefit from EPIC for remainder of year ~$40 million.

Crude Oil segment adjusted EBITDA was $593 million. NGL segment adjusted EBITDA was $70 million, down sequentially due to lower sales volume tied to temporary downtime on a third-party transmission system and the start-up of LNG Canada.

• Narrowed full year 2025 adjusted EBITDA guidance range to $2.84 billion to $2.89 billion. • Overall capital spending remains consistent, with growth capital spending ~$490 million and maintenance capital trending closer to $215 million. • Intend to provide additional 2026 guidance in February, focusing on initiatives to create value for unitholders.

• Regulatory approval delays for NGL divestiture, specifically ongoing Canadian Competition Bureau approval process. • Market volatility affecting crude prices, which could impact financial performance. • FX risk related to Keyera sale, although fully hedged at transaction time.

Q: Can you give more detail on synergy capture from EPIC deal?

A: A good portion is cost synergies, capital synergies, and integration with existing systems. Substantial portion of pipeline contracted long term, with ability to work with shippers to extend contracts or add new shippers.

Q: What are expectations for capital return and distribution growth?

A: Will continue to increase distributions by $0.15 until targeted coverage, with view to grow company in 2026 and beyond, looking at run rate DCF rather than short-term noise.

Q: Color on duration of contracts and rates on EPIC pipeline?

A: Substantial portion of pipeline contracted long term, balance has medium duration contracts. Rates at current market rates, expected to be stable and growing cash flow profile, DCF accretive over time with trade of NGL and EPIC assets.

Q: Thoughts on 2026 and capital allocation post NGL sale?

A: Calling 2026 is tough, will provide best intelligence in February. Proceeds from NGL sale deployed to debt reduction, then return cash to shareholders through distribution, bolt-on acquisitions, retirement, or common repurchases.

Q: How managing FX risk on Keyera sale?

A: Fully hedged at transaction time, locking down rate to avoid adverse movement if transaction didn't happen.

Q: Would consider bolt-on deals even slightly above leverage targets?

A: Would consider strategic opportunities that meet thresholds, considering short-term vs long-term noise.