2016 Deloitte Oil & Gas Conference

2016 Deloitte Oil & Gas Conference Houston, TX  September 21, 2016 www.plainsallamerican.com NYSE: PAA & PAGP

PAA: Strong Presence In All Major U.S. And Canadian Crude Oil Production Areas And Substantially All Inland And Coastal Crude Oil Terminal / Interchange Locations  



Enterprise value +/- $30 billion The most integrated U.S. crude oil pipeline & terminal system  Both supply push & demand pull Each day PAA:  Transports Crude Oil & NGLs:  Pipeline > 4.6 mmb/d  Truck, barge & rail ~0.5 mmb  Purchases > 1.0 mmb/d of crude oil & NGL

Note: Map includes 3rd party assets and only most significant PAA assets. Certain PAA assets reflected above are announced or under construction, but not yet in service.

www.plainsallamerican.com NYSE: PAA & PAGP

Crude Oil Midstream Cycle: Many Elements Common To A Typical Movie Script     



Great need/opportunity Good guys respond; successful results Fun and games; everyone wins (false victory) Encounter unexpected challenges; things go south (false defeat) Doing the right things, hard work and perseverance solve the problems  Bad guys defeated  Community is saved  …but, not everyone survives Happy ending….. ….teaser showing highlights of the next episode (cycle) www.plainsallamerican.com NYSE: PAA & PAGP

Horizontal Drilling + Hydraulic Fracturing + Shale = U.S. Renaissance in Crude Oil Production U.S. Lower 48 Onshore Crude Oil Production 10,000 9,000

1,800

L48 onshore oil production increased 4.5 mmb/d (150%)

8,000 9,000 7,000

1,600 1,400

8,000 6,000

1,200

5,000

1,000

7,000 4,000

800

6,000 3,000

600

2,000

400

5,000 200

1,000

0

4,000 0 1987 1987

1988 1988

1989 1989

1990 1990

1991

1992 1992

1993 1993

1994 1994

1995 1995

1996 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 200320042004200520052006200620072007

Production exceeded or strained takeaway capacity in many regions. Source: Production data (EIA)


Midstream Sector has Generally “Over-solved” The Problem (exacerbated by recent/ongoing downcycle) Sector Response:  From 2010 - 2019, ~50 major crude oil pipeline projects have been completed or are pending/under construction  ~$37 billion capital investment  ~12 mmb/d of supply push/demand pull capacity

 Many projects supported by volumetric commitments; in several cases:  Commitments materially less than full capacity  Shippers intentionally required development of excess capacity Result = Long takeaway capacity & Short production volumes in many regions.

Consequences:  Crude oil takeaway capacity exceeds near-term needs in all of the major U.S. oil producing basins  Permian expected to be first to absorb excess capacity

 Adverse impact to midstream companies and shippers compounded by:  Impact of low prices on production trends  Excess commitments  Intense competition for the marginal barrel to meet excess commitments www.plainsallamerican.com NYSE: PAA & PAGP

Note: EIA monthly data as of May 2016

Looking Forward – Very Positive Outlook: Extensive Resource Base; Proven Technology & Economics A Question Of “When” The Resource Gets Developed, Not “If”

-- Ring size is illustrative of scope of YE 2015 activity levels --

Note: Map includes 3rd party assets and only most significant PAA assets. Certain PAA assets reflected above are announced or under construction, but not yet in service.


Selected Major US Resource Plays

(1)

~Area Acreage (millions)

~HZ Wells Drilled (’09-’15)

Estimate # of Undrilled Locations

~Drilling Years

15-16

~9,500

>210,000

~75 Yrs

Eagle Ford

7

~16,500

>69,000

~20 Yrs

Williston

9

~10,000

>26,000

~15 Yrs

DJ Basin

4

~4,000

>22,000

~17 Yrs

Permian

Recap of North American Crude Oil Midstream Outlook Near-Term Expectations:  

Continuation of a competitive environment for new volumes Midstream capital projects will likely be limited to:    



Completion of existing projects Debottlenecking systems Developing and connecting gathering systems (regional buildout) Incremental tankage for quality segregation / market-balancing purposes

Future cash flow growth less capital intensive; primarily driven by  Increased utilization & optimization of existing assets

Intermediate / Long-Term Expectations 

Very constructive    

Extensive, well defined resource base (still being extended) Producers’ development capabilities & economics are proven and improving U.S. an essential source of incremental world supply Midstream asset acquisitions / consolidation and capacity rationalization


Compelling Case For Midstream Sector Consolidation  Significant wave of infrastructure build out/expansion is winding down  Most regions have ample, if not excess takeaway capacity  Complicated by expiring T&D agreements

 Substantial increase in number of midstream players over last 5 - 7 years  >100 midstream MLPs  50 to 100+ private midstream entities

 Consolidation would facilitate leveraging scale, scope and ability to interconnect/integrate assets & extract commercial value  Enhance competitive position with respect to volume capture  Opportunity for capacity rationalization & optimization

Consolidation often warranted / predicted; but routinely encounters limited follow-through www.plainsallamerican.com NYSE: PAA & PAGP

PAA’s Extensive, Interconnected Footprint Positions PAA For An Industry Recovery & / Or Consolidation Available Capacity >100 mb/d 0-100 mb/d Substantially Full - With Low to No Capex -

PAA Handles > 4.6 mmb/d of Crude Oil & NGLs Note: Map includes only most significant PAA assets (includes assets in which PAA owns a partial non-operating interest). Certain PAA assets reflected above are announced or under construction, but not yet in service. Color shading is applied to selected assets in major producing regions.


Illustration OF PAA’s Inter-Regional Capability To Serve Both Supply Push & Demand Pull Needs Patoka

Bakken / Canadian Crude to St. James Cushing to Broom Cushing Diamond

STACK

Memphis

Stack Injection

Station SCOOP Scoop Injection Station Wichita Falls

Permian Jal

Haynesville

Colorado City

Longview

Midland

Caddo Delek Shreveport

Wink Crane

Driver

Tuscaloosa Mobile

McCamey

Houston

St. James Nederland

Texas City Lyssy

Gardendale

Three Rivers

Corpus Christi Note: Map for illustrative purposes and only includes most significant PAA assets. Not all PAA and 3rd party assets are shown. All amounts are approximate.


Imports / Exports

PAA Has The Largest Presence In The Permian Basin (Permian rig activity greater than all other major regions combined)

C. City

Central Basin

Midland Basin

Midland

Wink

Legend Trunk line Gathering New Pipeline Additions

Delaware Basin


Crane

Note: Basin shading is for illustrative purposes McCamey

(1) Source: Drilling Info. Data as of 9/6/16


2016 Deloitte Oil & Gas Conference

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