Westlake Chemical Partners Lp · NYSE:WLKP
Westlake Chemical Partners Lp — Q2 2023 Earnings Presentation
16 slides from Westlake Chemical Partners Lp's earnings presentation, Aug 3, 2023
Slide 1: 2Q 2023 Earnings Presentation
2Q 2023 Earnings Presentation
Slide 2: Westlake Second Quarter 2023 Highlights
Westlake Second Quarter 2023 Highlights (1) ▪ Net sales of $3.3 billion, net income of $297 million and EBITDA of $690 million ▪ Elevated level of unplanned outages impacted operating income and EBITDA by ~$50 million (2) ▪ Performance and Essential Materials second quarter sales of $2.1 billion wit
Slide 3: Westlake Corporation Performance Second Quarter 2023
Westlake Corporation Performance Second Quarter 2023 2Q 2023 vs. 2Q 2023 vs. ($ in millions) 2Q 2023 1Q 2023 1Q 2023 2Q 2022 2Q 2022 Sales $3,251 $3,356 (3%) $4,483 (27%) Operating Income $396 $536 (26%) $1,175 (66%) Performance and Essential Materials EBITDA $435 $615 (29%) $1,162 (63%) Housing and
Slide 4: Performance and Essential Materials (PEM) Segment Performance
Performance and Essential Materials (“PEM”) Segment Performance 2Q 2023 vs. 2Q 2023 vs. ($ in millions) 2Q 2023 1Q 2023 1Q 2023 2Q 2022 2Q 2022 Performance Materials Sales $1,140 $1,282 (11%) $2,060 (45%) Essential Materials Sales $996 $1,067 (7%) $1,044 (5%) Total PEM Sales $2,136 $2,349 (9%) $3,10
Slide 5: Performance and Essential Materials Update
Performance and Essential Materials Update Softer industrial and manufacturing activity against a challenging 1 macroeconomic backdrop drove sequentially lower sales volumes, particularly for PVC resin, epoxy and caustic soda 2 Feedstock and energy costs fell from the elevated 2022 levels, which sup
Slide 6: Housing and Infrastructure Products (HIP) Segment Performance
Housing and Infrastructure Products (“HIP”) Segment Performance 2Q 2023 vs. 2Q 2023 vs. ($ in millions) 2Q 2023 1Q 2023 1Q 2023 2Q 2022 2Q 2022 Housing Products Sales $918 $818 12% $1,116 (18%) Infrastructure Products Sales $197 $189 4% $263 (25%) Total HIP Sales $1,115 $1,007 11% $1,379 (19%) Opera
Slide 7: Housing and Infrastructure Products Update
Housing and Infrastructure Products Update 1 Stabilizing building products demand with sequential sales volume improvement as homebuilders and homebuyers adjust to higher mortgage rates Our diverse portfolio of brands at multiple price points is well positioned to 2 service homebuilders’ changing ho
Slide 8: Westlake's Historical Financial Performance
Westlake’s Historical Financial Performance Ten Year CAGR Performance (2) Sales EBITDA (1) Free Cash Flow Per Share Higher Sales, Margins and ~15% ~14% ~32% Returns Attributable to: CAGR CAGR $4.2B CAGR $17.75 $15.8B • Focused Bottom Line Growth • Asset Quality $3.8B $1.1B $1.10 • Operating Rate Adv
Slide 9: ESG Rating Agency Score Improvement
ESG Rating Agency Score Improvement Significant ESG score improvement from two leading rating agencies over the past two years Ratings for Westlake now reflect scores BBB in the top 40% of chemical peers BB Chemical CCC CCC Peer Average WLK 0% 50% 2020 2021 2022 2023 ▪ Established 20% carbon intensi
Slide 10: Financial Reconciliations
Financial Reconciliations 10
Slide 11: Consolidated Statements of Operations
Consolidated Statements of Operations Three months ended Three months ended June 30, Six months ended June 30, March 31, 2023 2022 2023 2023 2022 (In millions of dollars, except per share data) Performance and Essential Materials Sales $ 2,136 $ 3,104 $ 2,349 $ 4,485 $ 5,936 Housing and Infrastructu
Slide 12: Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities
Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Three months ended Three months ended June 30, Six months ended June 30, March 31, 2023 2022 2023 2023 2022 (In millions of dollars) Net cash provided by operating activities $ 555 $ 913 $ 51
Slide 13: Reconciliation of PEM, HIP and Corporate EBITDA to Applicable Operating Income (Loss)
Reconciliation of PEM, HIP and Corporate EBITDA to Applicable Operating Income (Loss) Three months Three months ended June 30, ended March 31, Six months ended June 30, 2023 2022 2023 2023 2022 (In millions of dollars) Performance and Essential Materials EBITDA $ 435 $ 1,162 $ 615 $ 1,050 $ 2,233 Le
Slide 14: Reconciliation of Westlake EBITDA to Net Income and to Cash Flow from Operating Activities
Reconciliation of Westlake EBITDA to Net Income and to Cash Flow from Operating Activities (In millions of dollars) LTM 2Q 2023 FY 2022 FY 2021 FY 2020 2023 Q2 2023 Q1 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2021 Q4 2021 Q3 2021 Q2 EBITDA $ 2,938 $ 4,179 $ 3,693 $ 1,246 $ 690 $ 825 $ 619 $ 804 $ 1,456 $ 1,3
Slide 15: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding creating value for our shareholders, pricing and demand for our products, industry outlook for both of our segments, our cost control and efficiency efforts, our ability to capture integ
Slide 16: Vestlake
Vestlake
Westlake Chemical Partners — Q2 2023 Earnings Presentation on 6ix