PAA - ClearBridge Energy MLP Strategy Portfolio Manager Commentary Q3 2020

• ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.
• The combination of Saudi Arabia increasing oil production in March and global oil demand plummeting at roughly the same time due to the COVID-19 pandemic left the oil market grossly oversupplied, with prices plunging and global inventories rapidly building.
• Investor focus is seemingly only on oil, but U.S. energy production is more than just oil. The steep decline seen in U.S. oil production has not occurred with natural gas or natural gas liquids.
• The transformed midstream business model, including free cash flow after dividends/distributions with the resultant natural balance sheet deleveraging, share buybacks, and/or dividend/distribution increases, should begin to resonate with investors.

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