PAGP

• Strategic Positioning

  • Geopolitical conflict in the Middle East and Strait of Hormuz supply disruptions highlight the value of secure, responsibly produced North American energy and existing midstream infrastructure, positioning Plains well to meet long-term global energy demand
  • The company completed the sale of its Canadian NGL business in May 2026, reducing pro forma leverage to 3.3x, at the low end of management's target range, with $2.9 billion in total debt reduction from the divestiture
  • All targeted Cactus 3 synergies have been captured, improving long-term connectivity to the Corpus Christi export market

• Cost Efficiency Initiatives

  • Management remains on track to deliver $50 million in total organizational cost efficiencies by the end of 2026, with less than half of the $50 million realized year-to-date as of Q2
  • An additional $50 million in streamlining cost efficiencies is targeted for capture by the end of 2027, driven by organizational restructuring, rightsizing of non-core operations, and business process optimization following the NGL divestiture

• Organic Growth Projects

  • Growth capital spending for 2026 was increased from $350 million to a $400-$450 million range, with all projects expected to meet or exceed the company's hurdle rate for returns and contribute to 2027 EBITDA
  • Key projects include: expansion of the Permian Gathering System to service additional dedicated acreage, bringing the Pop JV total dedicated Permian acreage to ~5.1 million acres across the Midland and Delaware basins; expansion of Canadian gathering systems to support development in the Clearwater and DuVernay formations, backed by producer commitments; a capital-efficient 75,000 barrels per day (bpd) expansion of the Cactus III pipeline, bringing total Cactus III capacity to 725,000 bpd, which will come online at the end of July 2026 to support growing export volumes out of Corpus Christi

• Capital Allocation Framework

  • Management's priorities remain unchanged: 1) return cash to unit holders through targeted 15 cent per unit annual distribution increases; 2) execute on accretive organic growth and bolt-on acquisition opportunities; 3) maintain a flexible, strong balance sheet
  • The company now expects 100,000-200,000 bpd of exit-to-exit Permian production growth in 2026 versus 2025, up from the prior forecast of relatively flat growth, driven by earlier-than-expected natural gas egress infrastructure coming online
  • All new 2026 capital projects are small, quick-to-online opportunities that build momentum for 2027 with minimal impact on 2026 EBITDA

• Full-year 2026 adjusted EBITDA guidance is maintained at $2.88 billion, plus or minus $75 million, with the midpoint of the second half 2026 EBITDA forecast currently above Q2 2026's $690 million result, modeled to land in the low $700 million range
• 2026 growth capital guidance is revised upward to $400-$450 million from the prior $350 million, while 2026 maintenance capital guidance is revised downward to $175 million, primarily due to the timing of the NGL business sale
• 2026 Permian production growth guidance is revised upward to 100,000-200,000 bpd (exit-to-exit 2026 vs 2025), up from the prior forecast of near-flat production
• Approximately 70% of the company's pipeline loss allowance revenue is hedged for the remainder of 2026 at an average WTI price of ~$62 per barrel; the 2027 hedge position will be disclosed alongside full-year 2027 guidance in February 2027
• Management confirms it expects to generate ~$1.75 billion in operating pre-cash flow in 2026, and will return significant capital to unit holders while maintaining financial flexibility
• Full 2027 guidance and outlook will be released in late January to early February 2027

Crude Oil Segment: Reported Q2 2026 adjusted EBITDA of $690 million, a significant increase from Q1 2026. This result includes $14 million in one-off environmental remediation expenses, with growth driven by Cactus 3 synergies, operational efficiencies, market opportunities, and the absence of Q1 headwinds. The crude oil segment accounted for ~93.5% of total Q2 adjusted EBITDA attributable to Plains. NGL Segment: Reported Q2 2026 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, and would only report one combined segment going forward. The NGL segment accounted for ~5.4% of total Q2 adjusted EBITDA attributable to Plains. Total adjusted EBITDA attributable to Plains for Q2 2026 was $738 million, in line with full-year 2026 expectations.

• Geopolitical uncertainty from the ongoing Middle East conflict creates significant volatility in global oil markets and supply chains, with unclear timing for any resolution that makes long-term forecasting difficult
• Persistent volatility in oil prices and regional differentials can create unpredictable quarterly performance swings, with market conditions that can change quickly through the second half of 2026
• Future Permian production growth acceleration depends on sustained supportive commodity prices, which are uncertain in the current volatile macro environment
• Incremental heavy crude supply from Venezuela and growing Canadian production creates dynamic shifts in heavy crude differentials, though management notes the company is positioned to capture value from resulting dislocations

Q: Asked about the sustainability of the new higher 2026 growth CapEx level of $400-$450 million, and what to expect for 2027 and beyond. / A: Most of the 2026 projects have 18-24 month timelines, so some spending will carry into 2027 and early 2028. Management does not expect 2027 CapEx to differ significantly from the 2026 level, which is trending slightly above the historical $300-$400 million range. Full 2027 CapEx guidance will be published with full-year 2027 guidance in early 2027.

Q: Why was 2026 EBITDA guidance left unchanged despite the upward revision to Permian production growth? / A: A strong second half 2026, with EBITDA above Q2 2026 levels, was already modeled into the existing guidance. Some volume upside has already been captured in Q2, and the bulk of the benefit from higher Permian growth will flow through to 2027 rather than adding incremental upside to 2026 EBITDA.

Q: What is driving the shift in export customer behavior, and how do you see Corpus Christi vs Houston export markets performing in H2 2026? / A: Management notes the global crude market is shifting from a longstanding supply-push model to a demand-pull model as global inventories draw down to low levels, with new customers seeking secure, reliable WTI supply from North America rather than relying solely on Middle Eastern barrels. Both markets have utilization near 90% and are tight, with Corpus Christi commanding a premium for homogeneous WTI export barrels, and both markets are expected to continue growing alongside North American production.

Q: Could you share an update on the progress of the $50 million 2026 cost efficiency target, and where the savings are coming from? / A: As of Q2 2026, the company has realized slightly less than half of the $50 million 2026 target, and remains on track to hit the full target by the end of the year. Savings come from organizational streamlining after the NGL divestiture, targeted rightsizing of the trucking business, consolidation of marketing offices, and end-to-end business process optimization. The company is also on track to hit the additional $50 million efficiency target for 2027.

Q: What are your current views on Permian basin production growth for 2027, and when could the basin approach 8 million bpd? / A: Current 2026 production growth is tracking positively toward the 100,000-200,000 bpd range based on early July-August volume trends, with positive momentum into 2027. Current rigs are more productive than 2025 rigs due to technological improvements, and break-even levels have continued to fall. A path to over 7 million bpd is very favorable, and 8 million bpd by 2030 is a reasonable scenario if commodity prices remain supportive.