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].

Core Insights - Three stocks with strong value characteristics and a buy rank are highlighted for investors to consider on November 28 Group 1: Interface, Inc. (TILE) - Interface, Inc. is a modular carpet products company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 8.8% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 15.05, significantly lower than the S&P 500's P/E of 25.07 [1] - Interface possesses a Value Score of A [1] Group 2: Universal Health Services, Inc. (UHS) - Universal Health Services, Inc. operates hospitals and outpatient and behavioral health care facilities, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 6.7% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 11.19, compared to the S&P 500's P/E of 25.07 [2] - Universal Health possesses a Value Score of A [2] Group 3: Plains GP Holdings, L.P. (PAGP) - Plains GP Holdings, L.P. is a midstream infrastructure systems company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 2.9% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 12.89, lower than the industry average of 18.90 [3] - Plains GP possesses a Value Score of A [3]

Group 1 - The topical investment idea for November 2025 focuses on acquiring assets in the energy sector due to positive expectations for the recovery of the hydrocarbon market and increasing demand for energy resources [1] - The analysis combines macro-economic insights with real-world trading experience to identify profitable and undervalued investment opportunities primarily in the U.S. market [1] - The goal is to build a high-yield, balanced portfolio by leveraging deep knowledge in economics and fundamental investment analysis [1] Group 2 - The professional background includes a combination of roles as an Investment Consultant and an Active Intraday Trader, enhancing the ability to maximize returns [1] - The expertise is supported by two university degrees in Finance and Economics, complemented by active practice in management and trading [1] - The analysis aims to provide clear, actionable investment ideas designed to build a balanced portfolio of U.S. securities [1]

Financial Performance - Net income for the nine months ended September 30, 2025, was $1,279 million, a 34% increase from $953 million in the same period of 2024[136] - Net income for the three months ended September 30, 2025, was $504 million, a 67% increase from $301 million in 2024[160] - Basic net income per Class A share for continuing operations increased by 67% to $0.60 for the nine months ended September 30, 2025, compared to $0.36 in 2024[137] - Adjusted EBITDA for the three months ended September 30, 2025, was $806 million, slightly up by 1% from $805 million in 2024[160] - Adjusted EBITDA attributable to PAA for the nine months ended September 30, 2025, was $2,095 million, a 2% increase from $2,051 million in 2024[160] Revenue Changes - Product sales revenues decreased by 9% to $32,389 million for the nine months ended September 30, 2025, compared to $35,606 million in 2024[137] - Services revenues increased by 5% to $1,309 million for the nine months ended September 30, 2025, compared to $1,248 million in 2024[137] - Crude Oil segment revenues for Q3 2025 were $11,559 million, a decrease of 7% compared to $12,444 million in Q3 2024[165] - NGL segment revenues for Q3 2025 were $24 million, an increase of 20% from $20 million in Q3 2024[173] Operating Costs and Expenses - Field operating costs decreased by 9% to $873 million for the nine months ended September 30, 2025, compared to $962 million in 2024[137] - General and administrative expenses increased by 2% to $255 million for the nine months ended September 30, 2025, compared to $251 million in 2024[137] - Field operating costs decreased by 30% in Q3 2025 compared to Q3 2024, primarily due to prior year settlements related to the Line 901 incident[169] - Depreciation and amortization from continuing operations for the three months ended September 30, 2025, was $230 million, a 2% increase from $226 million in 2024[160] Capital Expenditures and Investments - Total capital expenditures for the nine months ended September 30, 2025, amounted to $1.382 billion, significantly higher than $547 million for the same period in 2024[181] - The company projected total investment capital for the year ending December 31, 2025, to be approximately $600 million, with about half allocated to Permian JV assets[182] - Maintenance capital expenditures for Q3 2025 were $36 million, down 25% from $48 million in Q3 2024[165] Debt and Interest Expenses - Interest expense for the three months ended September 30, 2025, increased to $112 million from $97 million in 2024, a rise of 15%[149] - The company issued $1.0 billion in senior notes at 5.95% in January 2025 and $650 million at 5.70% in June 2024, contributing to the increase in interest expense[149] - In January 2025, the company completed the offering of $1.0 billion in senior notes at a 5.95% interest rate, with net proceeds of approximately $988 million used for acquisitions and debt repayment[188] - In September 2025, the company issued $1.25 billion in senior notes, with net proceeds of approximately $1.2 billion used to redeem existing senior notes and fund the EPIC Pipeline acquisition[189] Strategic Changes and Acquisitions - The pending sale of the Canadian NGL Business is expected to close in the first quarter of 2026, representing a strategic shift for the company[133] - A net gain of $31 million was recognized related to the acquisition of the remaining 50% interest in Cheyenne in the first quarter of 2025[148] - PAA acquired 100% of the EPIC Pipeline for approximately $2.9 billion, including $1.1 billion of debt assumed[204] Cash Flow and Liquidity - Net cash provided by operating activities for the first nine months of 2025 was $1.833 billion, compared to $1.592 billion for the same period in 2024, reflecting a year-over-year increase of 15.1%[180] - As of September 30, 2025, the company had a working capital surplus of $218 million and approximately $3.9 billion in liquidity available for ongoing needs[177] Shareholder Distributions - A quarterly cash distribution of $0.38 per Class A share will be paid on November 14, 2025, amounting to an annualized distribution of $1.52 per share[195] - PAA plans to pay a quarterly cash distribution of approximately $0.615 per unit to Series A preferred unitholders on November 14, 2025[197] - PAA will pay a quarterly cash distribution of approximately $21.93 per unit to Series B preferred unitholders on November 17, 2025[198] Risk Management - PAA's risk management policies include the use of derivative instruments to hedge commodity price risks associated with crude oil and power[212] - The company anticipates potential impacts from economic conditions, including inflation and supply chain issues, on demand for midstream services[210] Other Financial Metrics - The average NYMEX Price for crude oil was $67 per barrel for the nine months ended September 30, 2025, down from $78 per barrel in 2024[141] - The overall impact of lower commodity prices and fewer market-based opportunities partially offset the benefits from higher tariff volumes and recent acquisitions[168] - As of September 30, 2025, PAA had outstanding letters of credit of approximately $70 million[205] - PAA has approximately $939 million of unsold securities available under its shelf registration statement as of September 30, 2025[192] - PAA has approximately $1.1 billion of unsold securities available under its PAA Traditional Shelf as of September 30, 2025[193]