Financial Structure and Debt Management - As of December 31, 2025, PAA's publicly-traded senior notes comprised approximately 85% of its long-term debt[37] - PAA targets a leverage multiple averaging between 3.25x to 3.75x, with an average long-term debt-to-total capitalization ratio of approximately 50% or less[38] - The company has completed acquisitions totaling over $5.7 billion from 2016 to December 31, 2025, with approximately $2.8 billion completed in 2025[118] - Asset sales and partial interest sales to strategic joint venture partners have exceeded $5.0 billion, with a pending divestiture of the Canadian NGL Business expected to close by the end of Q1 2026[118] Crude Oil Segment Operations - The Crude Oil segment includes 20,405 miles of active crude oil transportation pipelines and gathering systems, with an average daily volume of 9,680 barrels per day for the year ended December 31, 2025[52] - The Crude Oil segment has a commercial crude oil storage capacity of 76 million barrels at terminalling and storage locations[51] - PAA operates over 5,600 miles of gathering pipelines in the Permian Basin, with a capacity of approximately 3.9 million barrels per day[57] - The intra-basin pipeline system in the Permian Basin has a capacity of approximately 3.1 million barrels per day, connecting gathering pipelines to mainline pipelines[58] - PAA's long-haul pipelines represent over 2.8 million barrels per day of currently operational takeaway capacity out of the Permian Basin[59] Transportation and Storage Capacity - The company has a condensate processing facility with an aggregate processing capacity of 120,000 barrels per day[51] - The Eagle Ford Pipeline has a total capacity of approximately 660,000 barrels per day, connecting production from the Permian Basin and Eagle Ford area to Corpus Christi, Texas refiners and terminals[67] - The Eagle Ford Corpus Christi terminal has a commercial storage capacity of approximately 1 million barrels, while the Cactus III terminal provides over 3 million barrels of commercial storage capacity[68] - The Cactus II Pipeline has a capacity of approximately 670,000 barrels per day, enhancing access to the Corpus Christi market[69] - The Cushing terminal has a commercial storage capacity of 27 million barrels and is connected to long-haul pipelines from the Permian Basin and Rocky Mountain regions[74] - The Capline Pipeline, in which the company holds a 54% interest, extends from Patoka, Illinois to various terminals in St. James, Louisiana, supported by long-term shipper commitments[76] - The Diamond Pipeline has a total capacity of approximately 200,000 barrels per day, connecting the Cushing Terminal to Valero's refinery in Memphis, Tennessee[77] NGL Business Operations - The Canadian NGL Business includes four natural gas processing plants and six fractionation plants with an aggregate usable capacity of approximately 180,000 barrels per day[92] - The NGL segment revenues are primarily derived from providing storage and/or terminalling services to third-party customers and the transport, storage, and sale of specification NGL products[87] - NGL storage facilities have a total capacity of approximately 24 million barrels[96] - The Empress facility processes up to 5.7 Bcf of natural gas per day, producing approximately 65,000 to 100,000 barrels per day of ethane and 40,000 to 60,000 barrels per day of NGL mix[99] - The Fort Saskatchewan facility has an inlet design capacity of 112,000 barrels per day, with 57,000 barrels per day of full C3+ fractionation capability[101] - The Sarnia fractionator can process an average of approximately 100,000 barrels per day of NGL products[102] - The Co-Ed NGL pipeline system has a transportation capacity of approximately 70,000 barrels per day[100] Revenue and Market Exposure - ExxonMobil Corporation accounted for approximately 31% of revenues for the years ended December 31, 2025, 2024, and 27% for 2023[110] - The prompt month NYMEX light, sweet futures contract price ranged from a low of approximately $55 per barrel to a high of approximately $80 per barrel in 2025[103] - The company is engaged in over 25 joint venture and UJI arrangements across multiple North American basins[116] Compliance and Regulatory Environment - The company is subject to extensive legal requirements and regulations that could result in substantial fines and penalties, impacting profitability[121] - Canada requires large emitters of GHG to report emissions, with a threshold lowered from 50 kt/y to 10 kt/y, affecting four facilities[142] - The U.S. Clean Water Act imposes strict controls on pollutant discharge, with potential penalties for non-compliance[143] - The U.S. Oil Pollution Act subjects facility owners to significant liability for oil spill consequences, impacting operational costs[144] - The U.S. Army Corps of Engineers has authorized pipeline construction under Nationwide Permit 12, which may face legal challenges[145] - The Corps proposed to renew its nationwide permits program in June 2025, with potential for increased costs and project delays due to legal challenges[146] - Uncertainty exists regarding the federal jurisdiction under the Clean Water Act, which could delay project permitting and increase compliance costs[147] - The Endangered Species Act may restrict development activities affecting endangered species, leading to increased project costs[148] - The Energy Policy Act of 2005 allows FERC to impose civil penalties for violations, with fines up to approximately $17,000 per day[155] - The indexing methodology for pipeline rates may hinder cost recovery, affecting cash flows due to regulatory challenges[154] - Compliance with cybersecurity directives from the Transportation Security Administration may significantly impact operations[162] Employee and Workforce Management - As of December 31, 2025, GP LLC and PMC ULC employed approximately 3,900 people in North America, with about 2,800 in the U.S. and 1,100 in Canada[169] - Approximately 70% of the workforce, or about 2,750 employees, are field employees, including around 550 in the trucking division[169] - The company prioritizes employee health and safety, investing in training, equipment, and wellness programs, including free mental and behavioral support[170] - The compensation and benefits programs include competitive salaries, health insurance, retirement savings plans, and education reimbursement[172] - The company has a comprehensive training program covering field operations, health and safety, regulatory compliance, and leadership skills[171] - Approximately 200 employees in Canada are covered by collective bargaining agreements, which are open for renegotiation from 2026 to 2028[169] Taxation and Financial Reporting - Distributions on Class A shares will be treated as dividends for U.S. federal income tax purposes to the extent paid from current or accumulated earnings and profits[186] - Non-U.S. holders may be subject to a 30% U.S. withholding tax on distributions unless a lower rate is provided by an applicable income tax treaty[186] - Future exchanges of AAP units and Class B shares for Class A shares will result in additional basis adjustments, potentially leading to further tax deductions[179] - The company has made elections under Section 754 of the Code, resulting in basis adjustments that may offset taxable income for an extended period[179] - The company expects to remain a U.S. Real Property Holding Corporation (USRPHC) for U.S. federal income tax purposes, impacting non-U.S. holders of Class A shares[192] - Non-U.S. holders may be subject to a 30% branch profits tax on gains connected to U.S. trade or business activities[196] - Backup withholding will not apply to distributions if non-U.S. holders certify their non-U.S. status using IRS Form W-8BEN or W-8BEN-E[194] Accounting and Financial Estimates - A hypothetical 5% variance in estimates for accruals and contingent liabilities could impact earnings by approximately $9 million[481] - The company did not record any charges related to inventory valuation adjustments for the years ended December 31, 2025, 2024, and 2023[489] - Changes in assumptions regarding inventory liquidation timing can materially impact net realizable value[489] - The company assesses property and equipment for impairment based on subjective assumptions regarding future cash flows[485] - A hypothetical 5% variance in retirement obligation estimates could impact earnings by approximately $6 million[483] - The company provides annual reports and other financial information on its website, which is not incorporated by reference into its filings with the SEC[199] - Recent accounting pronouncements may affect the company's consolidated financial statements[492]

Economic Outlook - BlackRock's Chief Investment Officer of Global Fixed Income, Rick Rieder, expressed optimism about the economy, citing potential tax cuts from President Trump as a means to maintain economic momentum despite concerns about the national deficit [1] - Rieder emphasized the importance of fostering a hotter economy through tax incentives and deregulation, viewing growth as a primary method to diffuse national debt [1] - He believes the Federal Reserve should cut rates to moderate levels to support a growth-oriented environment [1] Market Analysis - Rieder described the current market as fascinating yet challenging, highlighting the need for humility among investors as industries undergo rapid reevaluations [2] - He predicts the economy will grow above 5% nominal this year, with solid earnings growth expected [2] - A significant technical condition noted is the reliance on stock buybacks from hyperscalers, which have provided support during market pressures [2] Undervalued Stocks - A list of the 10 most undervalued stocks under $30 was provided, focusing on companies trading below a forward P/E of 15 and recently reporting noteworthy developments [3][5] - The strategy aims to identify stocks popular among analysts and elite hedge funds, with a historical performance of 427.7% since May 2014, outperforming benchmarks by 264 percentage points [6] Plains GP Holdings (NASDAQ:PAGP) - Plains GP Holdings reported a Q4 adjusted EBITDA of $738 million and a full-year total of $2.833 billion, undergoing a strategic transformation into a pure-play crude oil midstream provider [7] - The crude oil segment contributed $611 million to the final quarter's EBITDA, while the NGL segment faced seasonal volatility [8] - The company aims for $100 million in annual cost savings by 2027 and plans to invest ~$350 million in growth capital to enhance operations [9] HP Inc. (NYSE:HPQ) - HP reported a 7% year-over-year revenue increase for FQ1 2026, reaching $14.4 billion, driven by an 11% revenue jump in the Personal Systems segment [11] - The company faces rising input costs, particularly for DRAM and NAND memory, which have surged to ~35% of the PC bill of materials [12] - HP maintained its full-year guidance but expects to land at the lower end of its non-GAAP EPS range due to anticipated declines in PC unit demand [13]

Forward-Looking Statements & Non-GAAP Financial Measures Disclosure Investor Presentation First-Quarter 2026 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 This presentation contains forward-looking statements, including, in particular, statements about the performance, plans, strategies and objectives for future operations of Plains A ...

Core Viewpoint - Plains GP Holdings, L.P. is a significant player in the midstream energy sector, focusing on the transportation and storage of crude oil and natural gas liquids across the U.S. and Canada, with extensive assets that enhance its industry presence [1] Group 1: Company Overview - Plains GP Holdings operates pipelines, storage facilities, and processing plants, solidifying its role in the energy industry [1] - The company competes with other energy infrastructure firms, such as Plains All American Pipeline [1] Group 2: Stock Performance and Analyst Sentiment - The consensus price target for PAGP's stock has increased from $21.17 a year ago to $22.5 in the previous quarter, and currently stands at $23, indicating positive analyst sentiment and expectations of growth [2][5] - The upward trend in price targets suggests improved performance expectations for the company [2] Group 3: Investment Appeal - In the context of market volatility, PAGP is viewed as an attractive investment opportunity due to its high-earnings-yield value and positive outlook [3][5] - The Zacks Rank system highlights the importance of earnings estimates and revisions, with PAGP being noted for its potential undervaluation [3] Group 4: Monitoring and Insights - Investors interested in Plains GP Holdings should monitor company news related to stock target prices and earnings for insights into performance and market expectations [4]

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] - The company reported a pro forma leverage ratio of 3.9x at year-end 2025, with expectations to return to the target range of 3.25 to 3.75x after the anticipated closing of the NGL divestiture[4] - Operating income for the twelve months ended December 31, 2025, was $1,434 million, compared to $868 million in 2024, indicating a significant increase of 64.8%[26] - 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, reflecting a substantial increase of 850%[26] - Adjusted net income attributable to Plains All American Pipeline for the twelve months ended December 31, 2025, was $83 million, compared to a loss of $546 million in 2024, showing a significant recovery[46] - Net income for the three months ended December 31, 2025, was $427 million, compared to $119 million for the same period in 2024, representing a significant increase[37] - Basic net income per common unit for the twelve months ended December 31, 2025, was $1.66, up from $0.73 in 2024[36] - The diluted net income per Class A share for the twelve months ended December 31, 2025, was $1.30, compared to $0.51 in 2024[63] 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 is used to assess cash available for distributions, debt repayments, and other partnership purposes[22] - Total cash provided by operating activities for the twelve months ended December 31, 2025, was $2.936 billion, an increase from $2.490 billion in 2024[31] - Cash distributions paid to common unitholders for the twelve months ended December 31, 2025, totaled $1.295 billion, compared to $1.145 billion in 2024, reflecting a 13.1% increase[43] - Adjusted Free Cash Flow for the three months ended December 31, 2025, was $(1.219) billion, compared to $365 million in 2024, indicating a significant decline[43] - Adjusted Free Cash Flow after distributions for the twelve months ended December 31, 2025, was $(2.170) billion, compared to $102 million in 2024, indicating a substantial decrease[43] Revenue and Expenses - Revenues for the three months ended December 31, 2025, were $10,565 million, a decrease from $12,035 million in the same period of 2024, representing a decline of 12.2%[26] - Total revenues for the company in Q4 2025 were $10,565 million, a decrease from $12,035 million in Q4 2024, representing a decline of 12.2%[57] - 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] - The total costs and expenses for 2025 were $42,834 million, a decrease from $48,027 million in 2024[59] - Revenues from discontinued operations for Q4 2025 were $397 million, up from $367 million in Q4 2024, representing an increase of 8.2%[50] - Total costs and expenses for discontinued operations in Q4 2025 were $252 million, a decrease from $264 million in Q4 2024, reflecting a reduction of 4.5%[50] Capital Expenditures and Investments - The company reported total investment capital expenditures of $508 million for the twelve months ended December 31, 2025, compared to $329 million in 2024[33] - Cash used in investing activities for the twelve months ended December 31, 2025, was $3.769 billion, significantly higher than $1.504 billion in 2024, including $2.651 billion for acquisitions[31] - NGL investment capital expenditures from discontinued operations were $11 million in Q4 2025, down from $41 million in Q4 2024, a decrease of 73.2%[52] Operational Efficiency and 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] - Field operating costs for the three months ended December 31, 2025, were $275 million, down from $503 million in 2024, a reduction of approximately 45.0%[46] Market and Economic Conditions - Economic conditions, including potential recession and high inflation, could affect demand for crude oil and midstream services provided by the company[65] - The company faces risks related to fluctuations in crude oil prices and refinery capacity, which may impact margins and commercial opportunities[65] - The company is undergoing a divestiture of its Canadian NGL Business, which may impact business relationships and operating results[65] - Environmental liabilities and regulatory changes may pose risks to the company's operations and growth prospects[68] - The company is monitoring the impact of natural disasters and extreme weather events on its business operations[68] - The currency exchange rate between the Canadian dollar and the U.S. dollar may affect financial performance[68] Strategic Initiatives - The company is focused on strategic opportunities, including acquisitions and joint ventures, to enhance its market position[65] - Plains successfully raised $750 million in senior unsecured notes in November 2025, which were allocated for reducing commercial paper and funding the Cactus III acquisition[4] - The company completed the Cactus III acquisition during the fourth quarter of 2025, contributing to a net cash outflow of $1.786 billion for acquisitions in that quarter[41]

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]

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 - Investors often focus on the price-to-earnings (P/E) ratio for stock valuation, but this metric has limitations [1] - The EV-to-EBITDA ratio is considered a more comprehensive valuation metric, providing a clearer picture of a company's true value and earnings potential [2][4] Valuation Metrics - EV-to-EBITDA is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), offering a complete view of a company's valuation [4] - A lower EV-to-EBITDA ratio typically indicates a stock may be undervalued, making it attractive for acquisition targets [5] - Unlike P/E, EV-to-EBITDA can be applied to companies with negative net earnings but positive EBITDA, making it useful for evaluating highly leveraged firms [6] Limitations of EV-to-EBITDA - EV-to-EBITDA has its own limitations and should not be used in isolation; it varies across industries and is not suitable for comparing companies in different sectors [7] Screening Criteria for Bargain Stocks - Parameters for screening include: - EV-to-EBITDA ratio lower than the industry median [8] - P/E ratio lower than the industry median [8] - P/B ratio lower than the industry median [9] - P/S ratio lower than the industry median [9] - Estimated one-year EPS growth greater than or equal to the industry median [9] - Average 20-day volume greater than or equal to 50,000 [10] - Current price greater than or equal to $5 [10] - Zacks Rank of 1 or 2 [10] - Value Score of A or B [11] Selected Stocks - Industrial Logistics Properties Trust (ILPT) has a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 20% for 2026 [11][12] - Plains GP Holdings (PAGP) also has a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 27% for 2026 [12][13] - ASGN Incorporated (ASGN) holds a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 10.1% for 2026 [13][14] - California Water Service Group (CWT) has a Zacks Rank of 2 and a Value Score of B, with an expected earnings growth rate of 8.3% for 2026 [14][15] - Dollar Tree, Inc. (DLTR) has a Zacks Rank of 2 and a Value Score of B, with an expected earnings growth rate of 12.4% for the current fiscal year [15][16]

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) announced their quarterly distributions for the fourth quarter of 2025 and the timing for their earnings release [1][4]. Distribution Declaration - PAA and PAGP declared a quarterly cash distribution of $0.4175 per Common Unit and Class A Share, which is an increase of $0.0375 from the previous distribution in November 2025, representing a 10% annualized increase [7]. - PAA also announced a quarterly distribution of $21.02 per Series B Preferred Unit, payable on February 17, 2026 [2]. Earnings Timing - The companies will release their fourth quarter 2025 earnings before market open on February 6, 2026, followed by a conference call at 9:00 a.m. CT to discuss the earnings [4]. Company Overview - PAA operates midstream energy infrastructure and logistics services for crude oil and natural gas liquids, handling approximately nine million barrels per day [5]. - PAGP holds a non-economic controlling general partner interest in PAA and is one of the largest energy infrastructure and logistics companies in North America [6].