PAA

• Strategic Execution & Deleveraging

  • Closed the sale of the Canadian NGL business in May 2026, reducing pro forma leverage to 3.3x debt at the end of Q2, which is at the low end of management's target range, following $2.9 billion in debt reduction from the divestiture
  • Captured all targeted synergies from the Cactus 3 pipeline project, improving long-term connectivity to the Corpus Christi export market
  • On track to deliver $50 million in organizational cost efficiencies by the end of 2026, with an additional $50 million in efficiencies targeted by the end of 2027

• Growth Capital Projects

  • Increased 2026 growth capital spending from $350 million to a range of $400 to $450 million, with all projects expected to meet or exceed the company's hurdle rate for returns and contribute to 2027 EBITDA
  • Expanded the Permian Gathering System to service new dedicated acreage in the Midland and Delaware basins, bringing the Pop JV total dedicated Permian acreage to approximately 5.1 million acres, with acreage backed by long-term commitments from high-quality producers
  • Expanded Canadian gathering systems to support strategic development in the Clearwater and DuVernay formations, with expansions backed by producer commitments
  • Sanctioned a capital-efficient 75,000 barrels per day (bpd) expansion of the Cactus III pipeline, bringing total line capacity to 725,000 bpd; the expansion will come online by the end of July 2026 to meet growing demand for crude exports out of Corpus Christi

• Capital Allocation Framework

  • Prioritizes: 1) returning cash to unitholders via targeted 15 cent per unit annual distribution increases; 2) executing accretive bolt-on acquisitions and organic capital investment; 3) maintaining a flexible, strong balance sheet
  • The company's pure-play crude oil focus, post-NGL divestiture, is expected to generate more durable cash flow and create long-term unitholder value

• Market Context

  • Geopolitical volatility and Middle East supply disruptions highlight the value of secure North American energy infrastructure, increasing the strategic value of the company's existing crude oil footprint, with growing global demand for reliable, responsibly produced North American crude

• Full-year 2026 adjusted EBITDA guidance is maintained at $2.88 billion, plus or minus $75 million, with Q2 2026 results positioning the company to meet this target
• 2026 growth capital expenditure guidance is revised upward from $350 million to a range of $400 to $450 million, while 2026 maintenance capital expenditure guidance is revised downward to $175 million due to the timing of the NGL business sale
• Exit-to-exit 2026 Permian crude production growth guidance is revised upward from a forecast of relatively flat production to 100,000 to 200,000 bpd growth versus 2025, driven by earlier-than-expected completion of natural gas egress infrastructure; the production ramp-up will create meaningful momentum for 2027 with minimal impact on 2026 EBITDA
• Approximately 70% of the company's pipeline loss allowance revenue for the second half of 2026 is hedged at an average WTI price of ~$62 per barrel; 2027 hedge position disclosure is scheduled for February 2027 alongside full-year 2027 guidance
• Management expects 2027 annual capital spending to be at least in line with the 2026 revised range of $400 to $450 million, which is slightly above the historical $300 to $400 million net-to-Plains range; full 2027 guidance will be released in late January or early February 2027

For Q2 2026, Plains All-American reported total adjusted EBITDA of $738 million. The Crude Oil segment generated adjusted EBITDA of $690 million, which accounted for approximately 93.5% of total adjusted EBITDA, representing a more than $100 million increase from Q1 2026. This increase was driven by Cactus 3 synergies, operational efficiencies, market opportunities, and the absence of Q1 2026 headwinds, and included a one-off $14 million environmental remediation expense. The NGL segment reported adjusted EBITDA of $40 million, reflecting the mid-May 2026 closing of the sale of the Canadian NGL business. Management is considering discontinuing separate NGL segment reporting starting in Q3 2026, moving to a single segment reporting structure.

• Significant macroeconomic and geopolitical uncertainty stemming from the ongoing Middle East conflict, with unpredictable impacts on global oil inventories, pricing, and demand patterns that make long-term forecasting difficult
• Volatile oil market differentials, margins, and supply chain dynamics can create unexpected quarterly performance swings, with the potential for continued volatility in H2 2026
• Future production growth in the Permian basin and Canada is dependent on sustained supportive crude pricing and producer capital allocation decisions, which are outside of the company's control
• Changes in global crude trade flows (including increased volumes of Venezuelan heavy crude into the Gulf Coast and Canadian egress capacity additions) could create dislocations in heavy crude differentials, though management notes the company is positioned to capture value from these dislocations when they arise

Q: The company raised 2026 growth CapEx to $400-$450 million. How sustainable is this elevated spending level going into 2027 and beyond? / A: Most of the current projects have 18-24 month timelines, so some spending will carry into 2027 and potentially 2028. Management does not expect 2027 CapEx to differ significantly from 2026, and it will trend slightly above the historical $300-$400 million net-to-Plains range. Full 2027 guidance will be released in early 2027.

Q: Higher Permian production growth guidance did not lead to an increase in 2026 EBITDA guidance. Why is that, and when will these volume gains flow to earnings? / A: Q2 crude EBITDA was already more than $100 million above Q1, and the current full-year guidance already models a strong second half of 2026, with projected midpoint H2 adjusted EBITDA in the low $700 million per quarter range, above Q2's $690 million. The bulk of the benefits from faster Permian production growth will flow to 2027, which matches the company's commentary about building momentum into next year, so no change to full-year 2026 guidance was needed.

Q: What is the tradeoff of adding incremental Cactus III capacity versus keeping capacity tighter to support stronger recontracting rates, and are the returns on this expansion compelling? / A: The 75,000 bpd expansion is too small to alter overall market balance, and total Permian production growth is far larger than this incremental capacity, so the market will remain net tighter. The expansion is highly capital-efficient with very strong returns that more than outweigh any potential downside. The entire Cactus system is already well contracted, so this expansion will not hurt the company's ability to secure strong long-term rates across the system.

Q: What progress has been made on the $50 million 2026 cost efficiency target, and where are the savings coming from? / A: As of the end of Q2, the company has realized just under half of the $50 million 2026 target and remains on track to capture the full amount by year end. The NGL sale was a catalyst for streamlining, but savings also come from organizational restructuring, rightsizing the trucking business, consolidating marketing offices, and reengineering core business processes to fit the company's new pure-play crude oil focus. An additional $50 million in efficiencies is still on track to be captured in 2027.