Plains All American Pipeline L P : 2021 2Q PAA & PAGP Earnings Conference Call Script - Q&A - Slides - Non-GAAP Reconciliation

Houston, TX | August 3, 2021

2Q 2021

Earnings Package

Index

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

PAA	PAGP 2

Second-Quarter 2021 Earnings Conference Call

Tuesday, August 3, 2021

Roy Lamoreaux:

Thank you, Carl. Good afternoon, and welcome to Plains All American's second-quarter 2021 earnings call. Today's slide presentation is posted on the Investor Relations website under the "News & Events" section at plainsallamerican.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. A condensed consolidating balance sheet for PAGP and other reference materials are located in the appendix.

Willie Chiang, Chairman and CEO, and Al Swanson, Executive Vice President and CFO will host our call. 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 and CAO. Before turning the call over to Willie, I'll note that we will focus today's discussion on our second-quarter results and full-year guidance. With respect to the Permian Basin joint venture that we intend to form with Oryx Midstream, given that the transaction is not expected to close until the fourth- quarter, we do not plan to share any additional information beyond what was provided on our July 13th conference call.

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

Willie Chiang:

Thanks, Roy and thanks to everyone for joining. This afternoon we reported better than expected second-quarter Adjusted EBITDA of $579 million, and we increased our full-year guidance by $25 million to plus or minus $2.175 billion. Our second-quarter results benefitted

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from certain timing-related items, which, as Al will discuss, are incorporated within our full- year guidance. A summary of financial highlights is provided on slide 3.

In previous calls we have discussed reaching a positive inflection point in our business. We have been advancing a number of initiatives aimed to maximize Free Cash Flow with the near-term benefit of accelerating debt reduction while returning capital to our equity holders. These initiatives take time to develop and materialize. I'm very pleased with the progress we have made, several of which have come to fruition since our first-quarter earnings call in May. A recap is provided on slide 4.

• On Asset sales, yesterday we closed the $850 million sale of our natural gas storage business, which was roughly two months ahead of schedule. We continue to progress additional opportunities and expect to achieve $920 million in total asset sales in 2021, well exceeding our initial target of $750 million.
• Regarding Portfolio Optimization, we announced the execution of a definitive agreement to form the strategic Plains Oryx Joint Venture through a cashless transaction. This debt-free entity will align directly with our optimization strategies.
• As for our Capital Program, we have further reduced our 2021 investment capital by $50 million to plus or minus $325 million, or 25% below our February guidance, with a majority of the reduction related to the cancelation of the Byhalia Connection Project.
• And importantly, on Sustainability, last week we published our 2020 Sustainability Report, greatly increasing our quantitative disclosures, including Scope 1 and Scope 2 GHG emissions data, which reflects a reduction over each of the last three years and screens favorably relative to peers on overall emissions. The full report is posted to our website, highlights from which are included within today's presentation.

Regarding our macro view, our fundamental outlook remains positive and we expect global crude oil supply and demand to continue rebalancing over the next several quarters. While recent OPEC+ actions have been largely consistent with our expectations, we continue to

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monitor potential near-term headwinds to global demand recovery. As commodity price signals have responded, producer activity levels in the Permian ramped earlier in the year and have stabilized in recent months. We expect growth activity to resume as supply and demand balance further improves which we expect to be in mid-2022.

We believe Plains is well positioned for a multi-year period of Permian growth, with significant operating leverage and assets underpinned by high-qualitylong-term cash flow. Further reinforcing this will be the completion of our recently announced Permian Basin JV with Oryx, Wink-to-Webster entering full-service later this year as well as the completion of projects outside the Permian such as the Capline reversal.

As a collective result of this progress, we have further increased our 2021 estimated Free Cash Flow after Distributions to plus or minus $1.35 billion, or $450 million excluding proceeds from asset sales. As illustrated on slide 5, we plan to continue allocating our Free Cash Flow in a balanced manner, with a near-term focus on debt reduction and allocating a larger percentage over time to equity holders.

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

Al Swanson:

Thanks, Willie. An overview of our second-quarter results is illustrated on slide 6 within the context of our full-year guidance and directional estimates for the EBITDA contribution by quarter. Second-quarter Adjusted EBITDA of $579 million was roughly $110 million above the high-end of the percentage range estimated for the second-quarter within our May guidance, which acknowledged the potential for timing shifts across individual quarters.

As Willie mentioned, and as illustrated on the slide, roughly $70 million of our second- quarter Adjusted EBITDA was a function of timing benefits, the vast majority of which occurred within our Supply & Logistics segment, which represented gains from our decision to monetize certain contango positions earlier than forecast, in addition to earlier than forecast NGL sales. Additionally, roughly $40 million of our second-quarter Adjusted EBITDA was driven by over-

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