Plains All American Takes Definitive Actions in Response to Industry Challenges to Further Strengthen Financial Positioning; Declares First Quarter Distributions

Plains All American (NYSE: PAA and PAGP) (“Plains” or “the Partnership”) today announced the following actions:

• Reduced 2020/2021 capital program by $750 million, or 33% (reduced by $1.35 billion, or 47% including elimination of assumed JV project financing)
• Decreased PAA common unit / PAGP Class A share distributions payable in May by 50% (reduction of approximately $525 million on annualized basis)
• Completed an additional $165 million asset sale ($440 million closed or under definitive agreement year to date)
• Continue to pursue capital and cost reductions throughout the organization and supply chain, as well as additional asset sales

“We are taking a number of actions in response to the current dynamic and uncertain market conditions to further strengthen our balance sheet and further enhance our liquidity and long-term financial flexibility,” stated Willie Chiang, Chairman and CEO of Plains All American. “These actions include significantly reducing and continuing to challenge our capital program, reducing our distribution, progressing asset sales, and reducing costs, while remaining focused on operating safely and responsibly.”

“We are committed to further strengthening our balance sheet, reducing leverage, and further enhancing our financial flexibility for the benefit of all of our stakeholders,” stated Al Swanson, Executive Vice President and CFO of Plains All American. “Importantly, we ended the first quarter with approximately $2.5 billion of committed liquidity and no near-term needs to access either the debt or equity capital markets. We continue to actively monitor the current environment and intend to address forward guidance and related matters on our first-quarter earnings conference call in May.”

Total expansion capital for 2020/2021 is now targeted to be approximately $1.55 billion, or $750 million (33%) lower than the previously targeted $2.3 billion capital program, and $1.35 billion (47%) lower when eliminating $600 million of assumed JV project financing (net to Plains) for the Red Oak project, which has been deferred. The balance of the capital reductions relate to cancelations, cost savings and scope adjustments to other capital projects. First quarter 2020 expansion capital expenditures are estimated to be approximately $350 million. The Partnership will continue to work closely with customers and industry partners to optimize, defer and potentially further reduce the capital program, subject to producer activity levels on Plains system.