Financial Data and Key Metrics Changes - For Q4 2025, the company reported Adjusted EBITDA of $738 million and $2.833 billion for the full year, indicating a pivotal year despite market challenges [3][4] - The crude oil segment Adjusted EBITDA was $611 million, which included contributions from the Cactus 3 acquisition [10] - The NGL segment reported Adjusted EBITDA of $122 million, reflecting seasonal impacts and warm weather [10] Business Line Data and Key Metrics Changes - The company is transitioning to a peer-play crude company, enhancing cash flow quality through the sale of the NGL business and acquisition of the Cactus 3 Pipeline [3][4] - The NGL segment is expected to contribute $100 million of EBITDA post-divestiture, while the oil segment is projected to grow by 13% year-over-year [6][7] Market Data and Key Metrics Changes - Permian crude production is expected to remain flat year-over-year in 2026, with overall basin volumes around 6.6 million barrels by year-end [7] - The company anticipates a more constructive oil market environment in 2027, driven by global energy demand growth [7][30] Company Strategy and Development Direction - The company is focused on three key initiatives for 2026: closing the NGL divestiture, integrating the Cactus 3 Pipeline, and streamlining operations for efficiency [4][5] - A targeted $100 million in annual savings is expected through 2027, with half of that realized in 2026 [5][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding producer sentiment in the Permian Basin, noting improved efficiencies and a focus on preserving inventory [29][30] - The company remains committed to generating significant free cash flow and maintaining a flexible balance sheet while returning capital to unit holders [9][16] Other Important Information - A 10% increase in quarterly distribution was announced, raising the annual distribution to $1.67 per unit, representing an 8.5% yield [7][8] - The company plans to reduce its distribution coverage ratio threshold from 160% to 150%, reflecting improved cash flow visibility [8][39] Q&A Session Summary Question: Synergies from Cactus Pipeline - Management confirmed that $50 million in synergies are already on track, with half achieved through G&A and OPEX reductions [20] Question: Cost savings initiatives - The NGL business sale allows for a comprehensive review of company structure, targeting $100 million in savings by 2027 [24][25] Question: Permian Basin outlook - Producer sentiment is cautiously optimistic, with a focus on efficiency and improved recoveries [29][30] Question: Distribution coverage rationale - The 150% coverage level is seen as conservative, allowing for multi-year distribution growth [38][39] Question: Growth CAPEX details - The 2026 growth CAPEX is guided at $350 million, reflecting a return to typical investment levels [41][42] Question: Impact of geopolitical developments - Management discussed potential impacts from Venezuela, emphasizing the need for stability and investment for long-term changes [49][51] Question: Trends in other business segments - The company sees stable performance in Canadian operations, with growth expected in the Uinta Basin [83]

4Q25 Earnings Call Investor Relations Contacts Blake Fernandez Vice President, Investor Relations Blake.Fernandez@plains.com Ross Hovde Director, Investor Relations Ross.Hovde@plains.com Investor Relations 866-809-1291 plainsIR@plains.com 2 February 6, 2026 Forward-Looking Statements & Non-GAAP Financial Measures Disclosure This presentation contains forward-looking statements, including, in particular, statements about the performance, plans, strategies and objectives for future operations of Plains All Am ...

Financial Performance - Fourth-quarter 2025 net income attributable to Plains All American was $342 million, with full-year net income reaching $1.435 billion, an 86% increase compared to 2024[4] - Fourth-quarter 2025 adjusted EBITDA attributable to Plains All American was $738 million, while full-year adjusted EBITDA totaled $2.833 billion, reflecting a 2% increase from 2024[4] - Operating income for the twelve months ended December 31, 2025, was $1,434 million, compared to $868 million in 2024, reflecting a significant increase[26] - Total net income for the twelve months ended December 31, 2025, reached $1.169 billion, a significant increase from $514 million in 2024[29] - Net income attributable to PAA for the three months ended December 31, 2025, was $342 million, up from $36 million in the same period of 2024[26] - Basic net income per Class A share for continuing operations was $0.77 for the twelve months ended December 31, 2025, compared to $0.19 in 2024[64] - Basic net income per common unit for the three months ended December 31, 2025, was $0.41, compared to a loss of $0.04 in the same period of 2024[36] Cash Flow and Distributions - Plains All American anticipates strong adjusted free cash flow generation of approximately $1.80 billion for 2026, excluding changes in assets and liabilities[4] - Adjusted Free Cash Flow after Distributions for the year was impacted by cash distributions paid to preferred and common unitholders, which are critical for assessing available cash for distributions and debt repayments[22] - Cash provided by operating activities for continuing operations was $2.452 billion for the twelve months ended December 31, 2025, compared to $2.236 billion in 2024, reflecting a 9.7% increase[31] - Cash distributions paid to common unitholders in Q4 2025 totaled $268 million, up from $223 million in Q4 2024, a 20.2% increase[40] - Adjusted Free Cash Flow for Q4 2025 was $(1,219) million, compared to $365 million in Q4 2024, showing a significant decline[43] Assets and Liabilities - Total assets increased to $30,169 million as of December 31, 2025, compared to $26,562 million in 2024, indicating growth in the company's asset base[27] - Total debt rose to $11,262 million as of December 31, 2025, from $7,621 million in 2024, leading to a long-term debt-to-total book capitalization ratio of 52%[28] - Current liabilities decreased slightly to $4,902 million as of December 31, 2025, from $4,924 million in 2024[61] - Senior notes increased to $9,118 million as of December 31, 2025, compared to $7,141 million in 2024, indicating a rise of 28%[61] Acquisitions and Divestitures - Plains All American successfully raised $750 million in senior unsecured notes in November 2025, aimed at reducing commercial paper and funding the Cactus III acquisition[4] - The company completed the acquisition of Cactus III in the fourth quarter of 2025, contributing to the growth strategy despite a flat Permian production profile expected for 2026[3] - The pending sale of the Canadian NGL business is expected to close by the end of Q1 2026, with the company retaining all NGL assets in the U.S. and crude oil assets in Canada[5] - The company is undergoing a divestiture of its Canadian NGL Business, which may impact business relationships and operating results[66] Operational Metrics - Revenues for the three months ended December 31, 2025, were $10,565 million, a decrease of 12.2% from $12,035 million in the same period of 2024[26] - Total revenues for the twelve months ended December 31, 2025, were $44,262 million, a decrease of 9% from $48,889 million in 2024[59] - Crude oil pipeline tariff volumes for Q4 2025 totaled 10,079 thousand barrels per day, an increase of 11.7% from 9,028 thousand barrels per day in Q4 2024[53] - NGL fractionation volumes for Q4 2025 were 150 thousand barrels per day, up 8.7% from 138 thousand barrels per day in Q4 2024[53] Cost Management - The company is focused on achieving approximately $100 million in cost savings through efficiency initiatives by 2027, with about half expected to be realized in 2026[4] - Total capital expenditures for the twelve months ended December 31, 2025, amounted to $719 million, up from $571 million in 2024, indicating a 25.9% increase[33] - The company’s total maintenance capital expenditures for the twelve months ended December 31, 2025, were $211 million, down from $242 million in 2024, indicating a decrease of 12.8%[33] Market and Economic Conditions - Economic conditions, including potential recession and high inflation, could affect demand for crude oil and midstream services[66] - There is a risk of significant declines in North American crude oil and NGL production due to reduced producer cash flow and other factors[66] - The company faces competition that may exert downward pressure on rates, volumes, and margins[66] - Future performance may be impacted by the successful operation of joint ventures and the integration of acquired assets[66] - The company is exposed to environmental liabilities and litigation that may not be covered by insurance[66] - The impact of societal sentiment regarding the hydrocarbon energy industry could influence consumer preferences and regulatory actions[66] - The company is monitoring the pace of natural gas infrastructure development and its effect on crude oil production growth in the Permian Basin[69] - The company is subject to risks related to capital markets, including increased costs of capital and liquidity concerns[69]

Core Insights - Plains All American Pipeline, L.P. reported strong financial results for Q4 and full-year 2025, with a net income attributable to PAA of $342 million for Q4 and $1.435 billion for the full year, reflecting an 86% increase year-over-year [5][30] - The company is transitioning to focus on becoming a premier North American pure play crude oil midstream provider, highlighted by the sale of its Canadian NGL business and the acquisition of Cactus III [3][4] Financial Performance - Q4 2025 Adjusted EBITDA attributable to PAA was $738 million, a 1% increase from Q4 2024, while full-year Adjusted EBITDA was $2.833 billion, a 2% increase from 2024 [5][7] - The company achieved a pro forma leverage ratio of 3.9x at year-end 2025, with expectations to return to a target range of 3.25 to 3.75x post-NGL divestiture [5][30] - The annualized distribution rate was increased by $0.15 per unit, resulting in a new rate of $1.67 per unit, representing a 10% increase compared to 2025 levels [5][30] Strategic Initiatives - The company is focused on closing the pending sale of its Canadian NGL business, realizing synergies from the Cactus III acquisition, and implementing efficiency initiatives to drive growth in a volatile oil market [3][4] - Expected Adjusted EBITDA for full-year 2026 is projected at a midpoint of $2.75 billion, assuming a contribution of $100 million from NGL operations for one quarter [5][30] Capital Expenditures and Cash Flow - The company anticipates full-year 2026 growth capital expenditures of approximately $350 million and maintenance capital expenditures of around $165 million [5][30] - Expected strong Adjusted Free Cash Flow generation of approximately $1.80 billion, excluding changes in assets and liabilities [5][30] Market Position and Outlook - The company aims to enhance its market position by focusing on crude oil midstream operations while divesting non-core assets [3][4] - The transition is expected to position the company favorably for improving oil market fundamentals in the future [3][4]

Key Takeaways Plains All American is expected to post Q4 revenues of $11.55B, a 6.85% year-over-year decline.Plains All American relies heavily on fee-based, long-term contracts that support steady cash flow.Plains All American completed the EPIC Crude acquisition, adding assets with long-term volume commitments.Plains All American Pipeline, L.P. (PAA) is expected to post a decline in the top and bottom lines when it reports fourth-quarter 2025 results on Feb. 6, 2026, before market open. The Zacks Consensu ...

Industry Overview - The Zacks Oil and Gas - Pipeline MLP industry consists of master limited partnerships that transport oil, natural gas, refined petroleum products, and natural gas liquids in North America, generating stable fee-based revenues from transportation and storage assets [3] - The industry is currently facing a gloomy outlook due to conservative spending by exploration and production companies, which is expected to reduce demand for transportation and storage assets [1][6] Financial Metrics - The industry has a high debt-to-capitalization ratio of 56.6%, indicating that borrowing is common for financing large infrastructure projects, which may limit financial flexibility [4] - The current trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio for the industry is 11.01X, lower than the S&P 500's 19.05X but above the sector's 5.95X [14] Market Performance - The Zacks Oil and Gas - Pipeline MLP industry has underperformed the broader Zacks Oil - Energy sector and the S&P 500 over the past year, declining by 7.8% compared to the sector's 14.8% gain and the S&P 500's 17.3% rise [10] Future Challenges - The industry is expected to face challenges from a shift to renewable energy, which may lower demand for pipeline and storage networks for oil and natural gas [5] - Oil and gas exploration and production companies are under pressure to prioritize stockholder returns over production growth, negatively impacting the demand for pipeline and storage assets [6] Key Players - Enterprise Products Partners LP (EPD) has a robust business model with a pipeline network exceeding 50,000 miles, generating stable fee-based revenues and returning capital to unitholders consistently [17][18] - Energy Transfer LP (ET) operates a vast pipeline network of 125,000 miles, generating stable revenues and is projected to see earnings growth of 17% this year [20][21] - Plains All American Pipeline LP (PAA) benefits from stable fee-based revenues through its pipeline network and storage assets, with recent upward earnings estimate revisions [23]

Core Insights - The S&P 500's dividend yield is currently at 1.1%, nearing an all-time low, leading to fewer stocks offering attractive income streams. However, companies like Delek Logistics Partners, Hess Midstream, and Plains All American Pipeline provide yields up to 9% and have recently increased their payouts [1]. Delek Logistics Partners - Delek Logistics Partners declared a quarterly distribution payment of $1.125 per unit, reflecting a 0.4% increase from the previous quarter, extending its distribution growth streak to 52 consecutive quarters and raising its yield to 9% [2]. - The company generated enough cash to cover its distribution payment by over 1.3 times last year, allowing for reinvestment in expansion projects and maintaining financial flexibility [3]. - Delek's market cap is $2.7 billion, with a gross margin of 22.31% and a dividend yield of 8.86%. Recent investments include the completion of the Libby 2 gas processing plant and the acquisition of Gravity Water [5]. Hess Midstream - Hess Midstream announced a quarterly cash distribution payment of $0.7641 per share, a 1.2% increase from the prior quarter, resulting in a yield of 8.2%. The company has increased its dividend by 65% since 2021 [6]. - The company has 100% fee-based minimum-volume contracts, providing stability in cash flow through 2028, and expects to increase its dividend by at least 5% annually during this period while generating about $1 billion in excess free cash flow [9]. - Hess Midstream's market cap is $4.7 billion, with a gross margin of 63.94% and a dividend yield of 8.07% [7]. Plains All American Pipeline - Plains All American Pipeline announced a quarterly distribution payment of $0.4175 per unit, a 10% increase from the previous level, resulting in a yield of 8.5%. The company has grown its payout at a 21% compound annual rate over the last four years [10]. - The company is selling its Canadian natural gas liquids business for $3.8 billion, which will enhance its financial position and allow for reinvestment into its oil pipeline operations [12]. - Plains has the financial flexibility to invest in organic expansion projects and acquisitions, which will help grow its cash flow and continue increasing its high-yielding distribution [13]. Investment Opportunities - The energy midstream sector, represented by Delek Logistics Partners, Hess Midstream, and Plains All American Pipeline, offers attractive passive income investment opportunities with yields between 8% and 9%, and all three companies have a history of regularly raising their payments [14].

Core Insights - The midstream sector is demonstrating strong financial health at the start of 2026, with numerous companies announcing increases in distributions and dividends, reinforcing its position as a reliable income source for investors [1] Payout Growth Across Midstream - Williams (WMB) raised its quarterly cash dividend to $0.525 from $0.50, a 5% increase [1] - Plains All American (PAA/PAGP) increased its quarterly distribution to $0.4175 per unit, reflecting a 9.9% rise [1] - Enterprise Products Partners (EPD) raised its distribution to $0.55, nearly a 1% increase [1] - ONEOK (OKE) announced a 4% sequential increase to $1.07 per share [1] Broad Sector Momentum - Energy Transfer (ET) increased its quarterly distribution to $0.335, a 3.1% year-over-year rise from $0.325 [1] - Hess Midstream (HESM) raised its payout to $0.7641, marking a 9.0% year-over-year increase [1] - Sunoco LP (SUN) announced a distribution of $0.9317, a 5.1% year-over-year increase [1] - Genesis Energy (GEL) raised its distribution by $0.015 to $0.18 per unit, a 9.1% increase [1] - Kinetik (KNTK) raised its payout to $0.81, reflecting a 4% sequential increase [1] - Delek Logistics (DKL) increased its payout to $1.125, representing a 1.85% year-over-year rise [1] ETF Exposure - Energy Transfer, Enterprise, Hess Midstream, Genesis, Delek Logistics, Sunoco, and Plains are included in both the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) [1] - AMLP tracks the Alerian MLP Infrastructure Index (AMZI), while ENFR tracks the Alerian Midstream Energy Select Index (AMEI) [1] - Williams, ONEOK, and Kinetik operate as C-corps, with only ENFR holding them [1]

Core Insights - Three stocks are highlighted with strong buy rankings and positive momentum characteristics for investors to consider on January 22nd Group 1: Banco Bilbao Viscaya Argentaria (BBVA) - BBVA is engaged in a variety of banking and financial activities in Spain and has a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for BBVA's current year earnings has increased by 0.5% over the last 60 days [1] - BBVA's shares have gained 27.9% over the last three months, significantly outperforming the S&P 500's gain of 2.5% [2] - The company possesses a Momentum Score of A [2] Group 2: Metropolitan Bank Holding (MCB) - MCB is a chartered commercial bank providing various financial services and has a Zacks Rank of 1 [3] - The Zacks Consensus Estimate for MCB's current year earnings has increased by 7% over the last 60 days [3] - MCB's shares have gained 20.8% over the last three months, also outperforming the S&P 500's gain of 2.5% [4] - The company possesses a Momentum Score of A [4] Group 3: Plains All American Pipeline (PAA) - PAA is a master limited partnership involved in the transportation and marketing of crude oil and natural gas in the U.S. and Canada, with a Zacks Rank of 1 [5] - The Zacks Consensus Estimate for PAA's current year earnings has increased by 4.8% over the last 60 days [5] - PAA's shares have gained 18.4% over the last three months, again outperforming the S&P 500's gain of 2.5% [6] - The company possesses a Momentum Score of A [6]

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market confidence and investment strategies [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] - The Growth Score assesses a company's financial health and future outlook through projected earnings, sales, and cash flow [5] - The Momentum Score identifies stocks benefiting from upward or downward trends in price or earnings estimates [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [8] - There are typically over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down their choices [9] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] Company Spotlight: Plains All American Pipeline (PAA) - Plains All American Pipeline, L.P. is a master limited partnership involved in the transportation and marketing of crude oil and natural gas across the U.S. and Canada [12] - PAA holds a Zacks Rank of 2 (Buy) and a VGM Score of A, with a Momentum Style Score of B, reflecting a 7.1% increase in shares over the past four weeks [13] - Recent analyst revisions have positively impacted PAA's earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $0.07 to $1.53 per share, and an average earnings surprise of +4.2% [13][14]