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]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA attributable to Plains of $754 million for Q1 2025, with a crude oil segment adjusted EBITDA of $559 million impacted by winter weather and refinery downtime [6][12] - The NGL segment reported adjusted EBITDA of $189 million, benefiting from higher frac spreads and NGL sales volumes [12] Business Line Data and Key Metrics Changes - The NGL segment's transition to fee-based earnings continues, with a 30,000 barrel per day fractionation project placed into service [8] - The crude segment saw two strategic transactions, including the acquisition of the remaining 50% equity in the Cheyenne Pipeline and the acquisition of Black Knight Midstream for approximately $55 million [9][10] Market Data and Key Metrics Changes - The ongoing uncertainty regarding trade tariffs and OPEC member dissension has created significant market volatility, impacting economic forecasts [6][7] - The company expects a $60 to $65 WTI price environment for the remainder of the year, which may lead to lower EBITDA guidance and Permian growth outlook [7] Company Strategy and Development Direction - The company remains focused on efficient growth strategies, generating significant free cash flow, and maintaining a flexible balance sheet [8][14] - The company has successfully deployed approximately $1.3 billion into bolt-on acquisitions over the last several years, indicating a commitment to capital discipline and attractive risk-adjusted returns [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current market volatility but believes it reinforces the cyclical nature of commodity markets, leading to a constructive medium to long-term outlook [7][39] - The company expects to generate strong cash flow in 2025, with adjusted free cash flow projected at about $1.1 billion [13] Other Important Information - The company has hedged approximately 80% of its estimated C3 plus spec products sales for 2025, providing insulation from lower commodity prices [8] - The company is committed to returning capital to unitholders while maintaining a strong balance sheet and financial flexibility [14][76] Q&A Session Summary Question: Capital allocation in the current environment - Management remains committed to distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases [20] Question: M&A landscape and volatility impact - Volatile markets create questions, but the company is well-positioned to pursue attractive deals while maintaining capital discipline [22] Question: Earnings cadence in Canada post-expansion - The expanded capacity at the PFS facility will ramp up over the remainder of the year and into next year [26] Question: Details on the Black Knight Midstream acquisition - The acquisition is strategically located in the Northern Midland Basin and complements the company's existing asset base [30] Question: Outlook on Permian volumes - The company has already grown over 100,000 barrels a day and maintains a growth expectation of 200,000 to 300,000 barrels per day [35] Question: Acquisition multiples for recent deals - Both recent acquisitions met the company's return thresholds and fit the model of previous successful transactions [41] Question: Capital expenditure guidance - The investment capital guidance for 2025 remains unchanged at $400 million net to Plains, with a focus on pacing capital with producer activity [46] Question: Hedging philosophy - The company maintains a consistent hedging strategy to ensure steady cash flow, with a focus on the front end of the market [49] Question: Sensitivity regarding Permian production - The guidance for Permian production is based on full-year expectations, with a focus on market dynamics influencing pricing [52] Question: Volume recovery in April and May - The recovery was driven by production coming back online after weather-related disruptions, with expectations for increased long-haul throughput [60] Question: Demand signals from refining and export sides - The global refining market remains healthy, with strong crack spreads, while export movements fluctuate based on pricing [72]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA attributable to Plains of $754 million for Q1 2025, with the crude oil segment adjusted EBITDA at $559 million, impacted by winter weather and refinery downtime [5][10] - The NGL segment reported adjusted EBITDA of $189 million, benefiting from higher frac spreads and NGL sales volumes [11] Business Line Data and Key Metrics Changes - The NGL segment's transition to more fee-based earnings continues, with a 30,000 barrel per day fractionation project placed into service [7] - The crude segment experienced two strategic transactions, including the acquisition of the remaining 50% equity in the Cheyenne Pipeline and the acquisition of Black Knight Midstream for approximately $55 million [8][10] Market Data and Key Metrics Changes - The company expects a $60 to $65 WTI price environment for the remainder of the year, which may lead to EBITDA guidance being in the lower half of the respective ranges [6] - The NGL segment remains largely insulated from lower commodity prices, with approximately 80% of estimated C3 plus spec products sales hedged for 2025 [7] Company Strategy and Development Direction - The company continues to execute on its efficient growth strategy, generating significant free cash flow and maintaining a flexible balance sheet [7][13] - The focus remains on distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases [21] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty regarding trade tariffs and OPEC dynamics, which are creating volatility in the market [5][6] - The company remains optimistic about the medium to long-term outlook despite current market conditions, emphasizing the cyclical nature of commodity markets [6][39] Other Important Information - The company has successfully deployed approximately $1.3 billion into bolt-on acquisitions over the last several years, indicating a commitment to pursuing attractive risk-adjusted returns [9] - The management acknowledged the retirement of Harry Pofonis, the President and Co-Founder, recognizing his contributions to the company [9] Q&A Session Summary Question: Thoughts on capital allocation in the current environment - The company remains committed to distribution growth as the primary method for returning cash to shareholders, with opportunistic unit repurchases as a component of capital allocation [21][22] Question: M&A landscape and volatility impact - Volatile markets create questions, but the company believes it is well-positioned to pursue attractive deals while maintaining capital discipline [23][24] Question: Earnings cadence in Canada with new fractionation complex - The expanded capacity at the PFS facility in Edmonton will ramp up over the remainder of the year and into next year, contributing gradually to earnings [27][28] Question: Insights on Permian volumes and producer conversations - The company has seen over 100,000 barrels per day growth from the end of last year, with producers adopting a wait-and-see approach due to market volatility [35][36] Question: Acquisition multiples for recent deals - Both recent acquisitions met the company's return thresholds, with a focus on capital discipline and risk-adjusted returns [41][42] Question: Capital expenditure guidance and 2026 outlook - The investment capital guidance for 2025 remains unchanged at $400 million, with expectations for 2026 to align with long-term capital guidance [45][46] Question: Hedging philosophy and frac spread - The company maintains a consistent hedging strategy, with approximately 80% of estimated C3 plus spec products sales hedged for 2025 [47][48] Question: Demand signals and refining market health - The global refining market remains healthy, with strong crack spreads and refineries running at high capacity [71][73]