Plains All American Pipeline, L.P.

Good day and thank you for standing by. Welcome to the PAA and PAGP fourth quarter 2025 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, we'll open up for questions. To ask a question during the session, you will 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 that today's call is being recorded. I would now like to hand it over to your speaker, Blake Fernandez, Vice President, Investor Relations. Please go ahead.

Thank you, Victor. Good morning, and welcome to Plains All-American fourth quarter 2025 earnings call. Today's slide presentation is posted on the Investor Relations website under the news and events section at ir.plains.com. 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. An overview of today's call is provided on slide three. A condensed consolidating balance sheet for PAGP and other reference materials are in the appendix. Today's call will be hosted by Willie Chang, Chairman and CEO and President, and Al Swanson, Executive Vice President and CFO, along with other members of the management team. With that, I'll turn the call over to Willie.

Thank you, Blake. Good morning, everyone, and thank you for joining us. Earlier this morning, we reported fourth quarter and full year adjusted EBITDA attributable to planes of $738 million and $2.833 billion, respectively. 2025 was a pivotal year for planes. The market environment presented multiple challenges, including geopolitical unrest, actions from OPEC to increase oil supply, and uncertainty on the economic impact from tariffs. As highlighted on slide four, despite these transactions or distractions, we remain focused on transitioning to a pure-play crude company. which also serves as a catalyst to streamline our operations and better position planes for the future. This transition has accelerated through the sale of our NGO business, along with the recent acquisition of the epic pipeline now renamed Cactus 3. These transactions enhance the quality and the durability of our cash flow stream, while improving distributable cash flow and positioning us well for future market cycles. 2026 will be a year of execution and self-help, with a focus on three initiatives. First, we remain on schedule to close the NGL divestiture near the end of the first quarter, pending Canadian competition bureau approval. Second, we're integrating the recently acquired Cactus III pipeline and expect to drive synergies related to that system to improve EBITDA. And third, we're streamlining the organization with a focus on efficiency and improving our cost structure. Over the past several months, we have advanced our streamlining initiatives and are targeting 100 million of identified annual savings through 2027, with approximately 50% expected to be realized in 2026. The key drivers of these efficiencies are outlined on slide 5, and including reducing G&A and OPEX to reflect the more simplified business, consolidating operations, and exiting or optimizing lower margin businesses. One example that illustrates our focus on higher margin businesses is the sale of our mid-continent lease marketing business in the fourth quarter of 2025 for a total consideration of approximately $50 million with minimal impact to EBITDA. This sale removes working capital needs associated with line fill. It simplifies operations with an improved cost structure while adding long-term contracts to our business. While this transaction is relatively small, it illustrates an opportunity that we have executed on to streamline our business, improve margins, and do more with less. On the bolt-on acquisition front, in January, we acquired the Wild Horse Terminal in Cushing, Oklahoma, from Kiera for a net cash consideration of approximately $10 million, which includes an upward purchase price adjustment of approximately $65 million upon the closing of the pending NGL divestiture. This asset adds approximately 4 million barrels of storage adjacent to our existing terminal assets and is expected to generate returns well above our internal thresholds. Looking to 2026, and as highlighted on slide 6, we are providing adjusted EBITDA guidance of 2.75 net deplains at the midpoint, plus or minus 75 million, with an oil segment EBITDA midpoint of 2.64 billion net-to-plains, which implies a 13% growth year-over-year in the crude segment. We expect 100 million of EBITDA from the NGL segment, assuming the divestiture closes at the end of the first quarter, and 10 million of other income. We forecast Permian crude production to be relatively flat year-over-year in 26, with overall basin volumes remaining about $6.6 million at the end of the year, similar to end of 2025 levels. That said, we expect growth to resume in 2027, underpinned by more constructive oil market fundamentals, driven by ongoing global energy demand growth and diminishing OPEC spare capacity. Regarding capital allocation, we recently announced a 10% increase in the quarterly distribution payable on February 13th for both PAA and PAGP. On an annualized basis, the distribution represents a $0.15 per unit increase from the November level, bringing the annual distribution to $1.67 per unit, representing an 8.5% yield based on the recent equity price for PAA. With the simplification and streamlining of our business, stable cash flow contributions from the Cactus 3 acquisition, and reduced commodity exposure following the NGL sale, we are modestly reducing our distribution coverage ratio threshold from 160% to 150%. This reflects improved visibility for our business, better alliances with peers, and it paves the way for future distribution growth while still maintaining a prudent level of coverage. Our targeted annualized distribution growth remains 15 cents per unit, and the lower distribution coverage gives us more confidence in our ability to deliver increasing returns to our unit holders. Al will cover specific CapEx guidance for the year, but we expect a meaningful reduction in growth spending versus 2025 levels, and maintenance capital will naturally decrease following the NGL divestiture. We remain committed to our efficient growth strategy, generating significant free cash flow, optimizing our asset base, maintaining a flexible balance sheet, and returning cash to unit holders via our disciplined capital allocation framework. With that, I'll turn the call over to Al to cover our quarterly performance and other financial matters.