Plains J.P. Morgan Natural Resources Conference Takeaways

Research evidence excerpt

Plains J.P. Morgan Natural Resources Conference Takeaways

J P M O R G A N North America Equity Research

23 June 2026

Plains

J.P. Morgan Natural Resources Conference Takeaways

Will Chang (CEO) from Plains presented today at the J.P. Morgan Natural Head of North America Power,

Resources Conference. Please see below for some quick takeaways. Utilities, Midstream, LNG, and

Nuclear

Net Takeaway: Fresh off a 2026 capex raise and building into an increasingly Jeremy Tonet, CFA AC

anticipated plan update next earnings call, Plains discussed increased producer (1-212) 622-4915

activity driving renewed Permian and Canadian gathering and brownfield long jeremy.b.tonet@jpmorgan.com

haul takeaway expansions. We see a phased expansion on Cactus III alongside Vrathan Reddy

Rainbow and/or Rangeland growth projects as likely, with finer details provided (1-212) 622-4692

alongside 2Q results. After recounting 7% crude oil segment growth over the past vrathan.reddy@jpmchase.com

five years, PAA appeared confident in steady growth ahead. Separately, Eli Jossen, CFA

(1-212) 622-4113

management sees ~200-300mbpd of Permian crude trapped behind pipe, with eli.jossen@jpmchase.com

subsequent growth tightening the egress S/D picture, though we still lack visibility

Francina Kolluri

to meaningful tightness. (1-212) 270-5796

francina.kolluri@jpmchase.com

• Plains controls crude egress to USGC. We expect Plains to phase the J.P. Morgan Securities LLC

~300mbpd Cactus III expansion capacity in 50-100mbpd increments.

Commitment tenure on the Plains long-haul portfolio runs through 2029, with

~25% of long haul exposure on spot. Contracted rates land in the ~$1.25-$1.50/ PAA, PAA US

bbl range. Near-term optimization levers include drag-reducing agent (DRA)