BMLP - Plains All American Fireside Chat: Capital Allocation Permian In Focus

• The midstream business model has transitioned from capital-intensive growth mode to capital-light efficiency mode, with Plains and others emphasizing free cash flow generation.
• Management noted the potential for buybacks and/or distribution increases to take greater precedence in capital allocation decisions as debt is reduced. The same can likely be said for others in the midstream space.
• The outlook for the Permian remains positive, with recent rig additions trending above management’s expectations. Plains' footprint in the Permian will be enhanced by its joint venture with Oryx, which is expected to close in 4Q21.

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