Plains GP Holdings, L.P.

Thank you for standing by, and welcome to PAA and PAGP's first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. To remove yourself from the queue, you may press star 1 1 again. I would now like to hand the call over to Blake Fernandez, VP, Investor Relations. Please go ahead.

Thank you, Lateef. Good morning, and welcome to Plains All-American First Quarter 2024 Earnings Call. Today's slide presentation is posted on the Investor Relations website under the News and Events section at 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 Chairman and CEO Willie Chang, Executive Vice President and CFO Al Swanson, as well as other management members. With that, I will now turn the call over to Willie.

Thank you, Blake. Good morning, everyone, and thank you for joining us. Our strategy remains consistent. and is anchored around capital discipline, generating free cash flow, return of capital to our investors, and financial flexibility. And consistent with those themes, earlier this morning we reported first quarter results that are in line with our expectation, which reflects progress towards our full year 2024 targets, and provides us with confidence in our ability to deliver on the plan that we laid out in February. For the first quarter of 24, and as illustrated on slides 3 and 4, We reported adjusted EBITDA attributable to PAA of $718 million, and we reaffirmed our 2024 adjusted EBITDA outlook. Al will share additional details on our quarterly performance and the 2024 outlook in his portion of the call. As noted in our press release this morning and as illustrated on slide five, we have increased contract volumes and extended the term on certain contracts such that our weighted average contract duration of our Permian long-haul portfolio It's approximately five years, which takes us through 2028. This includes new contracts or extensions on Cactus 1, Cactus 2, Basin, and Sunrise. This also includes transactions related to 200,000 barrels a day of Cactus 1 capacity that has been finalized on terms that are consistent with the rates in the range of $1.25 to $1.50 per barrel that will become effective in September of 2025. Today's announcement is a win-win for both Plains and our partners, and it strikes a good balance between term commitments and maintaining flexibility to capture higher margins from uncontracted long-haul capacity over time. While we are not providing formal guidance for 26, we would expect continued underlying growth in the business and contributions from efficient growth investments to offset the lower contracted rates, which results in a broadly flat adjusted EBITDA rate in 2026 as compared to 2024 guidance for the crude segment. In summary, we believe these actions should provide greater clarity and confidence in the outlook for our crude oil segment and our ability to continue to generate significant free cash flow over multiple years. Consistent with our efficient growth strategy and as summarized on slide six, Plains acquired an additional 10% in the Saddlehorn Pipeline Company LLC and a mid-con terminal asset for an aggregate cash consideration of approximately $110 million. These bolt-on acquisitions are expected to generate unlevered returns in line with our return threshold of approximately 300 to 500 basis points above our weighted average cost of capital, in addition to enhancing our position in both the Rockies and the mid-con. With that, I'll turn the call over to Al.