Jefferies 2016 Energy Conference · 2016. 12. 13. · Jefferies 2016 Energy Conference ... 31, 2015 and their most recently filed Quarterly Reports on Form 10-Q for a more extensive

1www.plainsallamerican.com NYSE: PAA & PAGP

Jefferies 2016 Energy ConferenceHouston, TX November 29, 2016


Forward-Looking Statements & Non-GAAPFinancial Measures Disclosure

Except for the historical information contained herein, the matters discussed in this presentationconsist of forward-looking statements. These forward-looking statements are based on PAGP’sand PAA’s current views with respect to future events, based on what we believe to bereasonable assumptions. Actual results may differ significantly because of risks anduncertainties that are difficult to predict and that may be beyond the control of PAGP and PAA.You should read PAGP’s and PAA’s Annual Reports on Form 10-K for the year ended December31, 2015 and their most recently filed Quarterly Reports on Form 10-Q for a more extensive listof factors that could cause actual results or outcomes to differ materially from the results oroutcomes anticipated in the forward-looking statements. PAGP and PAA undertake no obligationto revise any forward-looking statements to reflect events or circumstances occurring aftertoday’s date.

This presentation also contains non-GAAP financial measures relating to PAA, such as adjustedEBITDA. A reconciliation of these measures to the most directly comparable GAAP measures isavailable in the Investor Relations section of PAA’s and PAGP’s website atwww.plainsallamerican.com, select “PAA” or “PAGP,” navigate to the “Financial Information”tab, then click on “Non-GAAP Reconciliations.”


Discussion Outline

PAA Overview

Industry Status

Midstream Environment & PAA Actions

PAA’s Integrated System & Growth Capacity

Closing Thoughts


Plains All American Profile(NYSE: PAA & PAGP)

Total Enterprise Value $33.1 B

PAA Equity Market Cap(2) $14.5 B

PAGP Equity Market Cap(3) $8.4 B

Total LT Debt(4) $10.2 B

Current PAA Yield ~7.1%

Current PAGP Yield ~6.4%

PAA Total Assets $23.5 B

PAA S&P / Moody’s / Fitch BBB-/Baa3/BBB

Financial Profile(1)

2016 Adjusted EBITDA (5) ~$2.13 B

2016 Adj. Net Income (5) ~$1.09 B

PAA Public Guidance – Mid-point

Pipelines (active miles) 19,200 miles

Liquids Storage 135 mmbls

Natural Gas Storage 97 Bcf

Fractionation Facilities(7) 181,000 b/d

Natural Gas Processing(8) 8.5 Bcf/d

Crude & NGL Rail Facilities 28

Crude & NGL Railcars 10,100

Truck Fleet 1,930 Trailers

990 Trucks

Barge Fleet 142 Barges

64 Tugs

Crude & NGLVolumes(9): >4.6 mmb/d

PAA Assets(6)

(1) As applicable, based on balance sheet data as of 09/30/16, 11/25/16 closing unit prices and distributions paidon 11/14/16 (PAGP’s distribution adjusted for the reverse split on 11/15/16).

(2) $1.6 billion preferred equity included in PAA Equity Market Cap(3) PAGP Equity Market Cap includes AAP Management units as of 11/03/16.(4) Pro-forma for simplification (includes GP debt)(5) Adjusted EBITDA and Adjusted Net Income Attributable to PAA, which has been abbreviated as “Adj. Net

Income,” are the mid-point of PAA’s public guidance furnished via form 8-K on 11/02/16 and exclude selecteditems impacting comparability.

(6) Assets as of 12/31/15.(7) Amount represents net capacity.(8) Amount represents net capacity. Natural gas processing capacity also includes

approximately 2.5 Bcf per day for a long-term liquid supply contract.(9) YTD average daily Transportation segment volumes for period ending

09/30/16.


PAA Has:1. Highly integrated crude oil pipeline &

terminal system in the U.S.

2. Minimal direct exposure to commodity prices

3. Multiple expansion projects coming on-stream supported by long-term contracts

Note: Map includes only most significant PAA assets (includes assets in which PAA owns a partial non-operating interest). Certain PAA assets reflected above are announced or under construction, but not yet in service.

Strong Presence Throughout The Value Chain In All Major U.S. AndCanadian Crude Oil Production Areas And Substantially All Inland AndCoastal Crude Oil Terminal / Interchange Locations

Crude Oil Value Chain


Industry Status


PAA’s View

Bullish intermediate to long-term, but remain cautious near-term

(preparing for another 9 months or more of challenging conditions)

Compared to last cycles:

1. Tighter global supply/demand imbalance

2. Facing steeper decline curves

3. Greater magnitude of global capital retrenchment

4. Inventory overhang presents near-term challenges


Comparison of Current Cycle to Last Four Cycles’U.S. Rig Count

Sources: Baker Hughes Inc., Robert W. Baird, IEA, Simmons & Co.

Unlike The 1984+ Cycle, OPEC’s Excess ProductionCapacity is Greatly Reduced

(1) Rig data as of 11/23/2016

Current Downturn Similar To The Early 1980s Cycle; However,Supply / Demand Imbalance Much Narrower


Steep Shale Decline Curves Require More ActivityTo Maintain/Increase Production

At year end 2015, more than half of the onshore crude oil production in theLower 48 came from wells completed in the prior 24 months.

1st year declines generally range from 65% to 80% in horizontal / hydraulicfractured oil wells in shale/resource plays (30% to 40% in 2nd year)

~55% from2014 / 2015completions

Lower 48 Onshore Production Declines

To

tal

L48

On

sh

ore

Pro

du

cti

on

(mb/d)

Total L48 onshore ~55%

Permian ~55%

Eagle Ford ~70%

Williston ~60%

DJ ~80%

All other ~30%


Source: EIA, HPDI

Encouraging Signs That We Are At Or Near TheBottom Of The Current Downturn

Permian & STACK represent over 50% of total working rigs in L48 onshore areas (extensive PAA footprint)

Continuation of upstream progress (e.g. D&C efficiency, well-economics, resource definition, M&A)

OPEC public comments indicating plans to reduce production 0.5mmb/d –1.0mmb/d

However, crude oil inventory levels continue to present near-term challenges


Midstream Environment& PAA Actions


The Midstream Sector Has Generally “Over-solved” The

Infrastructure Shortfall Driven By The Shale Renaissance

Midstream Response

From 2010 - 2018, ~50 major crude oil pipeline

projects

~$35 billion capital investment

~12 mmb/d of supply push/demand pull capacity

Many projects supported by volumetric

commitments

Result = Long takeaway capacity, Short

production volumes

Crude oil takeaway capacity exceeds near-termneeds in all major U.S. crude oil producingbasins (Permian Basin likely first to absorb)

Adverse impact to midstream companies andshippers compounded by:

Impact of low prices on production trends

Shipper MVC over-commitments and intensecompetition for the marginal barrel

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S. L48 Onshore Crude Oil Production

Source: EIA Production data as of August 2016

mb/d

L48 onshore oil

production increased

4.5 mmb/d (150%)…

…but has declined

~1mmb/d since mid-2015


Midstream Response To Current EnvironmentShifting Focus To Optimization & Rationalization

Maximizing Margin

Optimization - increased utilization of existing assets

Reducing costs

Focusing the core business (e.g. non-core asset sales)

Debottlenecking systems

Developing and connecting gathering systems

Increasing Capital Efficiency

Reducing project costs

Executing strategic JV partnerships

Pursuing bolt-on acquisitions

Leveraging system interconnectivity and integration – lease gathering focus

Midstream sector trends and other focus areas

Focus on export capability

Investing in quality segregation

Emphasis on system interconnectivity, flexibility, and optionality


PAA’s Actions Have Improved Its Ability To Manage ThroughThe Downturn And Be Well Positioned For Recovery

Operating Initiatives

Intensify efforts to capture incremental gathering and

transportation barrels

Focus on system optimization and cost efficiencies

Sale of non-core assets and execute strategic joint ventures

Raised approximately $550mm in cash proceeds (excludes current

disposition efforts)

Reduce and focus capital initiatives and execute capital program

(reduced $600mm)


Financial Initiatives

Secured $1.6 billion of non-conventional financing

Executed PAA/PAGP simplification transaction

Reduced PAA’s incremental cost of equity by eliminating IDRs

Reset PAA’s annualized distribution from $2.80 to $2.20 per unit

Reiterated distribution coverage target of 115% and commitment to

Investment Grade credit ratings

Prudent equity issuance

(~$440mm raised via COP

from August – October 2016)

PAA’s Actions Have Improved Its Ability To Manage ThroughThe Downturn And Be Well Positioned For Recovery

Summary: significantly improvedPAA’s cost of capital and overall

financial flexibility


PAA’s Integrated System &Growth Capacity


Texas City

Wichita Falls

Longview

Houston

Shreveport

Mobile

Patoka

Cushing

PAA Is Completing A Multi-Year Capital Program Focused OnBuilding Out Regional Interconnectivity Across The Value Chain

Nederland

St. James

SCOOP

Cushing toBroom

Delek

Caddo

Scoop InjectionStation

Bakken /CanadianCrude to

St. James

Stack InjectionStation

STACK

Imports / Exports

Note: Map for illustrative purposes and only includes most significant PAA assets. Not all PAA 3rd

party assets are shown. Asset / Activity data as of 12/31/15. (1) All amounts are approximate.

Memphis

Diamond

ColoradoCity

Corpus Christi

Yellow highlightsrepresent significant

recent / ongoingcapital investments

McCamey

CraneDriver

JalMidland

Wink

Permian

ThreeRiversGardendale

Lyssy

Tuscaloosa

Haynesville

--Supply Push &Demand Pull--


2016(G) based on guidance furnished via Form 8-K on 11/02/16.

Regional illustration of2016 capital program

PAA’s Capital Program Focused On Key Growth Regions-- Both Supply Push & Demand Pull

2016(G) based on guidance furnished via Form 8-K on 11/02/16.2017 (PE) represents a preliminary estimate range for capital expenditures and includes incrementalcapex associated with the Empress Acquisition and certain timing adjustments from 2016.

Regional Area

MVC /

Contractual

Support

Strategy CAPEX In-Service Timing

Permian Basin

Permian Basin Area Projects Yes Supply Push $185 Present – 4Q16

Cactus Pipeline Yes Supply Push $20 Present – 2Q17

Central

Red River Pipeline (Cushing to Longview) Yes Demand Pull $310 4Q16

Diamond Pipeline Yes Demand Pull $105 4Q17

Cushing Terminal Expansions Yes - $70 Present – 2Q17

Caddo Pipeline Yes Demand Pull $35 4Q16

Rocky Mountains

Saddlehorn Pipeline Yes Supply Push $125 3Q16

Canada

Ft. Sask Facility Projects / NGL Line Yes - $205 2016 & 2018

Gulf Coast

St. James Terminal Expansions Yes - $50 Present – 1Q17

South Texas / Eagle Ford

Eagle Ford JV Project Yes Supply Push $25 Present – 4Q18

Other Projects (Various Areas) $295 FY 2016 – 2017

Total 2016 CAPEX $1,425


$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

2009 2010 2011 2012 2013 2014 2015 2016 (G)

Transportation Facilities Supply & Logistics

PAA’s Investments Have Continued To Drive Growth InFee-Based Transportation & Facilities Segments

(G) Midpoint of guidance furnished via form 8-K on November 2, 2016.

Continued Growth In PAA’s Fee-BasedAdjusted EBITDA

Continue to Anticipate Fee-basedAdj. EBITDA to be >80% of Total

($ millions)

Revenue Growth From Select CapitalProjects Supported by MVCs


Texas City

Wichita Falls

Longview

Houston

Shreveport

Cushing

Nederland

St. James

SCOOP

Cushing toBroom

Delek

Caddo

Scoop InjectionStation

Stack InjectionStation

STACK

Imports /Exports

Note: Map for illustrative purposes and only includes most significantPAA assets. Not all PAA 3rd party assets are shown. Asset data as of12/31/15. Gathering data as of 9/30/16.

Diamond

ColoradoCity

Corpus Christi

McCamey

CraneDriver

JalMidland

Wink

Permian

ThreeRiversGardendale

Lyssy

Tuscaloosa

Haynesville

Permian Basin Assets / Activities (1)

Transportation Volumes ~1,850 mb/d

1st Purchaser Gathered Barrels 470 mb/d

Active Pipeline Miles 4,189

Crude Storage Capacity 14 mmbbls

Crude Rail Loading Capacity 25 mb/d

Truck Injection Stations 120

PAA’s Permian Basin Crude Oil System: UnmatchedInterconnectivity Providing Access To Multiple Markets


PAA Has An Extended Reach and IncrementalCapacity Within The Permian Basin

C. City

*Capacity data includes quality assumptions and incremental investment required toincrease pumping capacity within PAA’s existing Permian Basin asset footprint.

Midland

Crane

McCamey

Delaware

Basin

MidlandBasin

CentralBasin

Wink

PAA’s Available Permian Pipeline Capacity*

Delaware Trunk lines > Wink: ~750

Permian Trunk lines > Hubs: ~750

Permian Takeaway Capacity: ~400

PAA Total Available Capacity: ~1,900

Source: Drilling Info; PAA estimates,Note: Quality estimates based on the following API gravities: Condensate: >45.0, Light: 35.1-45.0, Medium: 25.1-35.0, Heavy: <25.1


PAA’s Views On Permian Basin Takeaway Capacity

Currently ~2.5mmb/d of takeaway capacity in the Permian Basin (including400mb/d of regional refining capacity)

Expect there will be an additional 700 – 800mb/d of nameplate capacity available,which consists of the following:

300mb/d (ini� al capacity) from EPD’s Midland → Houston pipeline

400 – 500mb/d of expandable capacity of existing pipelines (BridgeTex, Cactus, PE II, and EPD)

Expansions can be achieved relatively quickly and at relatively low cost by adding additionalpump stations

Identified projects would increase total Permian takeaway capacity to~3.1 – 3.3mmb/d vs. current production of ~2mmb/d in the Permian

Timing for additional pipeline demand dependent upon:

1. Pace of Permian production growth

2. Crude quality segregation needs

3. Market availability (global demand growth)


Cashion Terminal

BlaineCounty

KingfisherCounty

CanadianCounty

PAACushing

HubSTACK corecrude oil region

STACK & SCOOP – Growth Opportunities

Note: Not all PAA assets are labeled on the above map.STACK/SCOOP shading is illustrative.

STACK

SCOOP

Lindsay Terminal


PAA Handles > 4.6 mmb/dof Crude Oil & NGLs

Note: Map includes only most significant PAA assets (includes assets inwhich PAA owns a partial non-operating interest). Certain PAA assetsreflected above are announced or under construction, but not yet in service.Color shading is applied to selected assets in major producing regions.

Available Capacity

>100 mb/d

0-100 mb/d

Substantially Full

PAA’s Substantial Capacity Across The Asset SystemLeverages PAA To An Industry Recovery

- With Low to No Capex -


(1) Represents PAA’s estimates of cash flow increases over 2016 associated withpotential production growth in the U.S. onshore lower 48 and similar assumptionsfor selected assets in Canada.

Transportation & Facilities (1) (~$600mm)

Supply & Logistics (~$400mm)

Increased Utilization Of PAA’s Asset Base Can Result InSignificant EBITDA Growth With Low-to-No Incremental Capex

Production volume growth in each of the basinscan potentially fill a large portion of currentlyavailable pipeline capacity

PAA captures reasonable share of productiongrowth in each respective basin

Supply and Logistics segment has potential foradditional margin as a result of a return to amore balanced market Primarily

PermianRelated


PAA Key Takeaways

PAA has one of the largest and most integrated midstream systems in North America

Growth profile driven by 2016/2017 capital program underpinned by MVCs

Significant liquidity and competitive cost of capital – financial flexibility

Committed to IG credit ratings and achieving/maintaining 115% distribution coverage

PAA’s system provides significant leverage to market recovery with low-to-noincremental capital requirements

Located in all major crude oil resource plays and substantially all crude demand centers

Extensive crude oil footprint in the Permian Basin leverages PAA to the most prolific andactive producing basin in North America


Q&A

Documents

Jefferies 2016 Energy Conference · 2016. 12. 13. · Jefferies 2016 Energy Conference ... 31, 2015 and their most recently filed Quarterly Reports on Form 10-Q for a more extensive