Plains GP L P : 2022 2Q PAA & PAGP Earnings Conference Call Script - Q&A - Slides - Non-GAAP Reconciliation

Houston, TX | August 3, 2022

2Q 2022 Earnings Package

Index

• Conference Call Transcript
• Conference Call Slides
• PAA / PAGP Earnings Release and Guidance
• PAA Non-GAAP Reconciliations

PAA	PAGP 2

Second-Quarter 2022 Earnings Conference Call

Wednesday, August 3, 2022

Roy Lamoreaux:

Thank you, Sheree. Good afternoon, and welcome to Plains All American's second- quarter 2022 earnings call. Today's slide presentation is posted on the Investor Relations website under the "News & Events" section at plains.com, where an audio replay will also be available following today's call. Important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on slide 2. An overview of today's call is provided on slide 3. A condensed consolidating balance sheet for PAGP and other reference materials are located in the appendix.

Today's call will be hosted by Willie Chiang, Chairman and CEO, and Al Swanson, Executive Vice President and CFO. Other members of our team will be available for Q&A, including: Harry Pefanis, President; Chris Chandler, Executive Vice President and COO; Jeremy Goebel, Executive Vice President and CCO; and Chris Herbold, Senior Vice President, Finance and CAO.

With that, I will now turn the call over to Willie.

Willie Chiang:

Thanks Roy. Good afternoon and thank you for joining us. Today we announced second- quarter results above our expectations, reflecting continued execution of our long-term goals and initiatives as well as strength in both our crude and NGL segments. In summary:

• Second-quarterAdjusted EBITDA attributable to PAA was $615 million
• We increased our full-year 2022 Adjusted EBITDA guidance by $100 million to plus or minus $2.375 billion, which is $175 million above our initial February guidance. This was

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driven by outperformance in both our NGL and Crude Oil segments due to higher volumes and higher commodity prices

• As a result, we now expect to achieve the midpoint of our leverage target range of 4.0 times by year-end 2022
• In regard to buybacks, we repurchased approximately $50 million of common units during the quarter, bringing year-to-date repurchases to approximately $75 million, and total repurchases of $300 million since program inception
• Additionally, we are increasing our 2022 asset sales target by $100 million as a result of greater clarity on asset sales anticipated during the balance of the year. Al will provide more detail on our quarterly results and our full-year outlook in his portion of the call

As highlighted on slide 4 and 5, the overall fundamentals of our business remain

constructive as North American shale remains key to meeting global energy demand. Current activity levels in the Permian are running roughly 10% ahead of our forecasts, and we expect to see between 650,000 and 700,000 barrels per day of production growth exit-to-exit during 2022. Our operating leverage and integrated business model with large-scale supply aggregation, quality segregation, flow assurance, and access to multiple markets has positioned us well to support increasing producer activity levels. Both our crude and NGL systems have meaningful capacity to grow alongside the needs of our customers for the next number of years, and we are well positioned to capture incremental volumes with minimal capital investment.

At the beginning of July, our Permian Gathering JV closed a bolt-on acquisition for the remaining 50% ownership interest of the Advantage Pipeline for approximately $65 million, or $42 million net to Plains' interest, plus customary closing costs. The negotiated transaction provides the JV additional operational, commercial, and capital synergies at an attractive multiple. The acquisition costs associated with this bolt-on opportunity are more than offset by the incremental proceeds expected from the previously mentioned increase in 2022 asset sales.

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In our NGL segment, we continue to advance capital-efficient optimization and debottlenecking opportunities at our existing facilities. Furthermore, we expect growing western Canadian gas production to drive incremental gas border flow volumes towards our strategically located Empress facility.

With regard to our financial strategy, we expect to continue generating significant Free Cash Flow over the next several years, and we intend to allocate this cash in a manner that takes into account the progress we have made to date on our leverage, while increasing cash returned to equity holders through distribution growth and opportunistic buybacks, as well as continuing to make disciplined capital investments. As noted in my opening remarks, we have made significant progress in strengthening our balance sheet. We entered the year with leverage at 4.5 times with the expectation of finishing 2022 at the high-end of our target, or

4.25 times. We now expect to exit the year at the mid-point of our target which is 4.0 times. The improved trajectory allows us to further accelerate our goal of increasing return of capital to our unitholders over the coming years.

Before turning the call over to Al, I would like to mention that we published our 2021 Sustainability report last week. As reflected on slide 25 of the appendix, we have made continuous improvement in our emissions and advanced sustainability in many areas of the company. We are proud of these achievements and look forward to continuing the dialogue with many of you on our Sustainability performance.

With that, I will turn the call over to Al.

Al Swanson:

Thanks, Willie. We reported second-quarter Adjusted EBITDA of $615 million which includes the benefit of higher straddle plant volumes at Empress due to increased gas border flows, elevated commodity prices benefitting our pipeline loss allowance revenues and higher volumes on our Permian Basin long-haul pipelines, primarily flows on Basin Pipeline to Cushing. Slides 16 and 17 in today's appendix contain quarter-over-quarter and year-over-year Segment Adjusted EBITDA walks which provide more detail on our second-quarter performance.

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