Common use of EBITDA Reconciliation Clause in Contracts

EBITDA Reconciliation. The following table reconciles segment adjusted EBITDA to net income attributable to PAA (in millions): Segment adjusted EBITDA $ 2,081 $ 2,167 $ 2,212 Adjustments (1): Depreciation and amortization of unconsolidated entities (2) (45) (50) (45) Gains/(losses) from derivative activities net of inventory valuation adjustments (3) 46 (404) (110) Long-term inventory costing adjustments (4) 24 58 (99) Deficiencies under minimum volume commitments, net (5) (2) (46) — Equity-indexed compensation expense (6) (23) (33) (27) Net gain/(loss) on foreign currency revaluation (7) 26 (9) 29 Line 901 incident (8) (32) — (83) Significant acquisition-related expenses (9) (6) — — Depreciation and amortization (626) (494) (432) Interest expense, net (510) (467) (432) Other income/(expense), net (31) 33 (7) Income before tax 902 755 1,006 Income tax expense (44) (25) (100) Net income 858 730 906 Net income attributable to noncontrolling interests (2) (4) (3) Net income attributable to PAA $ 856 $ 726 $ 903

EBITDA Reconciliation. The following table reconciles segment adjusted Segment Adjusted EBITDA to net income attributable to PAA (in millions): Segment adjusted Adjusted EBITDA $ 2,681 $ 2,081 $ 2,167 $ 2,212 Adjustments (1): Depreciation and amortization of unconsolidated entities (2) (56) (45) (50) (45) Gains/(losses) from derivative activities net of inventory valuation adjustments (3) 519 46 (404) (110) Long-term inventory costing adjustments (4) (21) 24 58 (99) Deficiencies under minimum volume commitments, net (5) (7) (2) (46) — Equity-indexed compensation expense (6) (55) (23) (33) (27) Net gain/(loss) on foreign currency revaluation (7) (3) 26 (9) 29 Line 901 incident (8) — (32) — (83) Significant acquisition-related expenses (9) — (6) — — Depreciation and amortization (626520) (494517) (432514) Gains/(losses) on asset sales and asset impairments, net 114 (109) 20 Gain on sale of investment in unconsolidated entities 200 — — Interest expense, net (431) (510) (467) (432) Other income/(expense), net (7) (31) 33 (7) Income before tax 2,414 902 755 1,006 Income tax expense (198) (44) (25) (100) Net income 2,216 858 730 906 Net income attributable to noncontrolling interests — (2) (4) (3) Net income attributable to PAA $ 2,216 $ 856 $ 726 $ 903726

EBITDA Reconciliation. The following table reconciles segment adjusted EBITDA to net income attributable to PAA PAGP (in millions): Segment adjusted EBITDA $ 2,081 $ 2,167 $ 2,212 Adjustments (1): Depreciation and amortization of unconsolidated entities (2) (45) (50) (45) Gains/(losses) from derivative activities net of inventory valuation adjustments (3) 46 (404) (110) Long-term inventory costing adjustments (4) 24 58 (99) Deficiencies under minimum volume commitments, net (5) (2) (46) — Equity-indexed compensation expense (6) (23) (33) (27) Net gain/(loss) on foreign currency revaluation (7) 26 (9) 29 Line 901 incident (8) (32) — (83) Significant acquisition-related expenses (9) (6) — — Unallocated general and administrative expenses (4) (3) (3) Depreciation and amortization (626628) (494495) (432433) Interest expense, net (510) (467480) (432443) Other income/(expense), net (31) 33 (7) Income before tax 902 755 1,006 896 738 991 Income tax expense (44937) (2578) (100182) Net income 858 730 906 income/(loss) (41) 660 809 Net income attributable to noncontrolling interests (2690) (4566) (3691) Net income income/(loss) attributable to PAA PAGP $ 856 (731) $ 726 94 $ 903118