Plains All American Pipeline (PAA) Investor presentation summary

Financial and operating highlights

• Enterprise value stands at approximately $28 billion with an 8% distribution yield and a 3.9x leverage ratio as of year-end 2025.

• Over 9 million barrels per day (MMb/d) total pipeline tariff volume, with more than 7 MMb/d from the Permian and 2.8 MMb/d Permian takeaway capacity.

• Liquids storage capacity is about 118 MMb/month, and the company operates over 20,000 miles of active pipeline.

• Adjusted EBITDA guidance for 2026 is $2.75 billion, with cumulative adjusted free cash flow since 2022 reaching $5.5 billion.

• Distribution per unit increased from $0.72 to $1.67 since 2022, representing a 19% CAGR.

Strategic initiatives and growth

• Completed NGL divestiture with $3.2 billion net proceeds, enhancing cash flow durability and reducing leverage to ~3.5x.

• Executed 17 bolt-on transactions since 2022, investing $4.3 billion and targeting 13–15%+ returns.

• Focused on efficient growth, streamlining operations, and optimizing lower-margin assets to improve returns and cash flow conversion.

• Cactus III integration expected to add $50 million incremental EBITDA in 2026.

• 85% of 2026 EBITDA is expected from fee-for-service contracts, with a weighted average contract term of about 5 years.

Market outlook and fundamentals

• Long-term oil demand remains robust, with global demand projected to rise from 104 MMb/d in 2025 to 126 MMb/d by 2050.

• Industry underinvestment is reflected in organic reserve replacement ratios trending below 100%.

• Near-term oil market volatility is driven by OPEC+ supply changes, but long-term fundamentals are constructive due to population growth and limited new projects.