Plains All American Pipeline, L.P. Q4 FY2025 earnings call

• 2025 was a pivotal year with transition to pure-play crude company, sale of NGL business, and acquisition of Cactus III pipeline. - 2026 focus on closing NGL divestiture, integrating Cactus III, and streamlining organization for $100 million annual savings by 2027, with 50% realized in 2026. - Sold Mid-Continent lease marketing business in 2025 for ~$50 million. - Acquired Wild Horse Terminal in Cushing, OK for ~$10 million, adding 4 million barrels of storage. - Achieved best-ever safety performance in 2025.

For the fourth quarter, the crude oil segment reported adjusted EBITDA of $611 million. The NGL segment reported adjusted EBITDA of $122 million, reflecting a seasonal uptick moderated by warm weather impacts on sales volumes and weak frac spreads. In 2026, adjusted EBITDA guidance is $2.75 billion net to Plains at the midpoint plus or minus $75 million, with an oil segment EBITDA midpoint of $2.64 billion net to Plains, implying a 13% year-over-year growth in the crude segment. The NGL segment is expected to contribute $100 million of EBITDA assuming divestiture closes at the end of the first quarter, and there's $10 million of other income.

• Adjusted EBITDA guidance for 2026 is $2.75 billion net to Plains at midpoint ± $75 million, oil segment EBITDA midpoint $2.64 billion net to Plains (13% Y/Y growth). - Permian crude production expected flat in 2026, resuming growth in 2027. - 10% increase in quarterly distribution, annualized distribution $1.67 per unit (8.5% yield). - Reduced distribution coverage ratio threshold from 160% to 150%. - Expect ~$350 million growth capital and ~$165 million maintenance capital net to PAA in 2026. - Expect ~$1.8 billion adjusted free cash flow in 2026 excluding NGL divestiture sales proceeds.

• Geopolitical unrest, OPEC actions, and tariff uncertainties as market challenges. - Impact of weather events on volumes (e.g., storm impacts on gas and crude infrastructure). - Volatility in commodity prices and market conditions affecting business performance.

Q: Focus on Cactus pipeline synergies and ability to expand without new pipe A: Synergies of $50 million on run rate, half achieved in Q4 with G&A/OpEx reductions, other half ramping up. Ability to expand in phases, recontracting base pipeline and looking at capital-efficient optimizations for upstream/downstream connectivity Q: Producer sentiment in Permian Basin and $60-$65 WTI scenario A: Larger producers less sensitive to $5 swings, cautiously optimistic. Producers working to preserve inventory, improve efficiency, with more constructive environment expected in 2027+ for growth Q: Distribution coverage rationale for 1.5 threshold A: Reset to be conservative, consistent with peers, allows multiyear distribution growth, and reflects durable cash flow stream Q: Growth CapEx details and projects A: 2026 growth CapEx $350 million, includes Permian program, Cactus III integration, and potential Canadian crude oil business investments. Previously completed projects reduced prior year CapEx Q: Geopolitical impact on Plains flows and assets A: Venezuela developments create opportunities for quality management and cross-border flows, with intermediate term logistical opportunities, but longer term requires substantial investment and stability Q: Consolidation in crude oil infrastructure industry A: Focus on executing current transactions, monitoring opportunities, with Permian and Western Canada being key basins with need for infrastructure repurposing and investment Q: Distribution growth beyond 2026 and growth drivers A: Confident in continuing growth beyond 2026 with self-help initiatives, Permian growth, and efficient growth synergies from asset base Q: Storm impacts on volumes and recovery A: Back-to-back freezes impacted gas infrastructure, causing crude shutdown, with ~10-12 million barrels production loss over 7-10 days, now recovered Q: Wildhorse Terminal acquisition details A: Net cost ~$10 million, adds 4-5 million barrels of storage adjacent to existing facility, with low-cost basis and sufficient demand Q: Sensitivities of Permian production change on business A: Impact on gathering system relatively modest, 10-15 million impact for 100,000 bbl/day change, with potential widening of long-haul margins over time