Plains GP Holdings, L.P. Q1 FY2025 earnings call

• Market uncertainty: Ongoing trade tariff uncertainty weighs on economic forecasts and creates volatility; OPEC dissension and incremental supply lead to lower commodity prices than expected at the start of the year. • EBITDA guidance: Assuming $60 to $65 WTI persists for the remainder of the year, 2025 EBITDA guidance and Permian growth outlook could be in the lower half of respective ranges. • NGL segment progress: Transition to more fee-based earnings continues with the 30,000 barrel a day fractionation bottleneck project at Fort Sask placed into service in the second quarter and other NGL and condensate gathering system expansions completed throughout the year, supported by long-term customer commitments. • Crude segment acquisitions: Acquired the remaining 50% equity in the Cheyenne pipeline in the Rockies and Black Knight Midstream, a Midland Basin crude gathering system for approximately $55 million. • Focus on efficient growth: Continue to execute on efficient growth strategy, generate significant free cash flow, maintain a flexible balance sheet with leverage ratio in the low end of target range, and return capital to unitholders. • Retirement: Wish Harry Pofonis the best in retirement, who played an integral part in building Plains since its inception.

Crude oil segment: Reported adjusted EBITDA of $559 million in the first quarter, impacted by winter weather and higher refinery downtime but saw recovery in April and May with a ramp in gathering volumes. NGL segment: Reported segment adjusted EBITDA of $189 million, benefited from higher frac spreads and NGL sales volumes driven by stronger border flows.

• Assuming a $60 to $65 WTI environment persists for the remainder of the year, 2025 EBITDA guidance and Permian growth outlook could be in the lower half of the respective ranges. • NGL segment has approximately 80% of estimated C3+ spec products sales hedged for 2025. • Expect to generate strong cash flow this year with adjusted free cash flow of about $1.1 billion, excluding changes in assets and liabilities and reduced by approximately $635 million for acquisitions.

• Trade tariff uncertainty: Weighing on economic forecasts and creating significant volatility. • OPEC dissension: Prospects of incremental supply coming to market result in lower price commodity than anticipated at the beginning of the year, impacting forecasts.

Q: Gabriel Marine asked about capital allocation shift to buybacks vs distribution growth given volatility.

A: Al Swanson said focus will continue to be on distribution growth as primary method for returning cash to shareholders; unit repurchases are a component but no change in thinking.

Q: Gabriel Marine asked about M&A landscape and volatility as catalyst for deals.

A: Willie Chiang said more volatile markets create questions, but good deals take time to get to win-win, and they're positioned well with ample M&A opportunities.

Q: Manav Gupta asked about cadence of earnings in Canada with fractionation complex up and details on Black Knight Midstream deal.

A: Chris Chandler said the fractionation complex's earnings will ramp over the remainder of 2025 and into 2026; the Black Knight Midstream deal is in the core of the Northern Midland Basin, with a good win-win situation.

Q: Michael Blum asked about Permian volumes outlook and acquisition multiples.

A: Jeremy Goebel said Permian volumes guidance still stands with wait and see on price impact; Chris Chandler said the bolt-on deals hit return thresholds higher, fitting the model of previous acquisitions.

Q: Robin Reddy asked about CapEx spend and hedging philosophy.

A: Chris Chandler said 2025 CapEx guidance unchanged at $400 million net to Plains; Jeremy Goebel said hedging is consistent with fundamental view, being opportunistic around backwardated market.

Q: Sunil Sibal asked about Permian production sensitivity and NGL segment seasonality.

A: Jeremy Goebel said Permian production guidance still stands and seasonality is optimized with storage; Willie Chiang said NGL seasonality is related to price and timing.

Q: AJ O'Donnell asked about Permian long haul utilization and longer-term outlook.

A: Jeremy Goebel said Permian long haul utilization is a function of production, with world needing crude oil and business plans resting on tariff and OPEC resolution.

Q: John Mackie asked about capital allocation and leverage given macro backdrop.

A: Willie Chiang said committed to returning cash to unitholders and working on bolt-ons; Al Swanson said leverage range is considered, with no desire to be at the bottom end sustained and no interest in jeopardizing ratings.

Q: Theresa Chen asked about M&A opportunities and sellers in volatile landscape.

A: Willie Chiang said there are broad M&A opportunities, often involving creating value through win-win situations with partners.