This presentation contains forward-looking statements, including, in particular, statements about the performance, plans, strategies and objectives for future operations of Plains All American Pipeline, L.P. ("PAA") and Plains GP Holdings, L.P. ("PAGP"). These forward-looking statements are based on PAA's current views with respect to future events, based on what we believe to be reasonable assumptions. PAA and PAGP can give no assurance that future results or outcomes will be achieved. Important factors, some of which may be beyond PAA's and PAGP's control, that could cause actual results or outcomes to differ materially from the results or outcomes anticipated in the forward-looking statements are disclosed in PAA's and PAGP's respective filings with the Securities and Exchange Commission.
This presentation also contains non-GAAP financial measures relating to PAA, such as Adjusted EBITDA attributable to PAA, Implied DCF and Free Cash Flow. A reconciliation of these historical measures to the most directly comparable GAAP measures is available in the Investor Relations section of PAA's and PAGP's website at www.plains.com, select "PAA" or "PAGP," navigate to the "Financial Information" tab, then click on "Non-GAAP Reconciliations." PAA does not provide a reconciliation of non-GAAP financial measures to the equivalent GAAP financial measures on a forward-looking basis as it is impractical to forecast certain items that it has defined as "Selected Items Impacting Comparability" without unreasonable effort. Definitions for certain non-GAAP financial measures and other terms used throughout this presentation are included in the appendix.
Plains: Strong Positioning for the Future
Streamlined asset base, improved financial flexibility, increasing returns of capital to equity holders
Constructive, Long-Term Fundamentals
Permian Operating Leverage
Generating Meaningful Multi-Year FCF
Leverage below mid-point of targeted range
Increasing Returns of Capital to Equity Holders
Targeting multi-year, sustainable distribution growth & opportunistic repurchases
Plains' Structure & Tax Attributes
Dual securities provide flexibility & optionality
1 for 1 Economic & Voting Rights
PAA GP HOLDINGS LLC (PAGP GP)
(Unified Board of Directors)
(Nasdaq: PAGP) 1099 SECURITY
100% of Directors subject to public election (staggered 3-yr rolling basis)
75% of Directors independent
No Incentive Distribution Rights ("IDRs") or "Golden Share"(1)
PAGP Tax Attributes
PLAINS AAP, L.P. (AAP)(2)
(Private Owners & Management)
(Nasdaq: PAA) K-1 SECURITY
Public Investors • Series A & B Preferred
• 100% of Plains' assets & operations
Not subject to minimum corporate income tax
$1.325B deferred tax asset at 9/30/22 (book value of ~$6.82 / Class A Share(3))
Do not expect PAGP to pay corporate income taxes for 10+ years
PAGP Cash distributions treated as a "return of capital" until there are positive "earnings & profits" for tax purposes (estimated timing 6+ years)
Incentive Distribution Rights ("IDRs") gave a general partner an increasing share of incremental distributable cash flow based upon certain conditions. "Golden Share" refers to a control right granted in certain
partnership agreements whereby the holder has the right to direct certain activities of the partnership, including the unilateral right to appoint and replace board members, irrespective of the holder's economic interest.
(2) Right to exchange AAP Unit for PAGP Class A Share, or alternatively, right to redeem AAP Unit for PAA Common Unit
Illustrative based on 9/30/22 PAGP Class A Shares outstanding.
Plains All American Pipeline LP published this content on 16 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2022 13:38:03 UTC.