Plains All American Pipeline, L.P.

Good day and thank you for standing by. Welcome to the PAA and PAGP first quarter 2023 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised today's conference is being recorded. I would now like to turn the conference over to your speaker today, Blake Fernandez, Vice President, Investor Relations. Please begin.

thank you kevin good morning and welcome to planes all americans first quarter 2023 earnings call thank you for all all of you for joining us on our new time today the new day and time for our earnings call is a result of feedback from many of you and part of our ongoing efforts to continue optimizing our engagement with investors and analysts today's slide presentation is posted on the investor relation website under the news and events section at planes.com where an audio replay will also be available following today's call. Important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on slide two. Highlights from the quarter are provided on slide three. A condensed consolidating balance sheet for PAGP and other reference materials are located in the appendix. Today's call will be hosted by Willie Chang, Chairman and CEO, and Al Swanson, Executive Vice President and CFO, as well as other members of our management team. With that, I will turn the call over to Willie.

thank you Blake happy Friday everyone and thank you for joining us earlier this morning we announced strong results reflecting good progress towards executing on our full year 23 targets and providing us with confidence in our ability to deliver on the plan that we laid out in February as a result our comments today will be brief it's been a volatile few months from a macro perspective with recessionary concerns headlines in the banking industry and an unexpected OPEC production cut, along with the ongoing war in the Ukraine. Through all of this, we remain confident that Plains is well positioned for the long term as North American supply will continue to be critical to meeting growing long-term global demand. For 2023, and as illustrated on slide four, our focus is on execution. And through the first quarter, we've done just that, reporting adjusted EBITDA attributable to PAA of $715 million. As a result of our first quarter performance and our outlook for the balance of the year, we are reaffirming our adjusted EBITDA guidance range of $2.45 to $2.55 billion for 2023. Additionally, we continue to expect free cash flow generation of approximately $1.6 billion and common distribution coverage of 215%, which includes our recent 20 cent per unit annualized distribution increase. Looking forward, We expect that our continued focus on free cash flow supports our previously announced capital allocation framework, which targets multi-year annualized distribution increases of 15 cents per unit and further debt and leverage reduction. Al will share additional detail on our quarterly performance and 2023 outlook in his portion of the call. Let me shift to the Permian. We continue to capture increasing volumes on our system, and we expect production growth of plus or minus 500,000 barrels a day exit-to-exit in 2023, based on an assumed 2022 exit production of approximately 5.65 million barrels a day. While still relatively early in the year, current horizontal rig count is tracking in line with our expected full-year average of 340 horizontal rigs, and we continue to monitor additional data points, including well completion activity and commodity price environment. Consistent with our February guidance, and as shown in slide five, We expect year-over-year growth in our crude oil segment underpinned by continued Permian production and tariff growth volumes in our gathering and our long-haul systems. Before I hand it over to Al, I wanted to reinforce that capital discipline remains front and center as we continue to advance capital-efficient MGL opportunities around our Fort Saskatchewan facility, which we expect to share additional detail on later this year. With that, I'll turn the call over to Al.