Westlake Chemical Partners Lp · NYSE:WLKP
Westlake Chemical Partners Lp — Investor Presentation (2025)
16 slides from Westlake Chemical Partners Lp's investor presentation, 2025
Slide 1: Investor Presentation 2nd Quarter 2025
Investor Presentation 2 Quarter 2025 nd
Slide 2: Westlake Chemical Partners LP (WLKP) At-a-Glance
Westlake Chemical Partners LP (WLKP) At-a-Glance WLKP OVERVIEW OWNERSHIP STRUCTURE • Limited partnership formed by Westlake Corporation (WLK) to operate, acquire, and Investors Investors develop ethylene production facilities and related assets 59.9% Ownership • Critical supplier of ethylene that WL
Slide 3: Compelling Investment Opportunity
Compelling Investment Opportunity ► 95% of sales at fixed margin to investment-grade parent, WLK, insulates WLKP Stable, Predictable Cash Flows from commodity risks and Strong Balance Sheet ► Conservative financial and leverage metrics Long History of Predictable ► Globally cost advantaged feedstock
Slide 4: WLKP Supplies Vital Ethylene to WLK
WLKP Supplies Vital Ethylene to WLK LAKE CHARLES, LOUISIANA CALVERT CITY, KENTUCKY LONGVIEW, TEXAS • Two ethane-based processing • One ethane-based processing • 200-mile common carrier ethylene facilities at WLK’s complex facility pipeline in Texas • Combined ethylene capacity of 3 • Ethylene capaci
Slide 5: WLK's Short Position in Ethylene Provides Strong and Contractual Demand for WLKP
WLK’s Short Position in Ethylene Provides Strong and Contractual Demand for WLKP Westlake Corp is Still Short ~ 1.2B Pounds of Ethylene and Needs all the Supply WLKP can Provide Additional Ethylene via LACC JV Polyethylene Eligible for WLKP ~1.1 Billion 3.7 Billion Pounds of Pounds Ethylene Provided
Slide 6: WLKP Value Chain | Ethylene Sales Agreement
WLKP Value Chain | Ethylene Sales Agreement WLKP IS CRITICAL SUPPLIER OF ETHYLENE THAT WLK NEEDS TO PRODUCE ITS PRODUCTS • Ethylene Sales Agreement between WLKP and WLK provides stable 10 cents per pound margin on 95% of processed NGLs, with remaining 5% sold to third parties • Ethylene Sales Agreem
Slide 7: Ethylene Sales Agreement Insulates WLKP from Commodity Risk
Ethylene Sales Agreement Insulates WLKP from Commodity Risk and Provides Enhanced Cash Flow Stability • Integrated margin is well above $0.10 historically, as shown in the chart below, supporting margin sustainability and potential to increase margin through negotiation • Requires WLK to purchase 95
Slide 8: WLKP's Contractual Structure with WLK Enables Stable Cash Flows and Distributions
WLKP’s Contractual Structure with WLK Enables Stable Cash Flows and Distributions Through Challenging Market Conditions • Strong, stable, and predictable cash flow from WLKP DISTRIBUTIONS SINCE INCEPTION selling 95% of its product at fixed margin to investment-grade parent, WLK, is a significant dif
Slide 9: Strong Distributable Cash Flows from Ethylene Sales Contract with WLK
Strong Distributable Cash Flows from Ethylene Sales Contract with WLK ANNUAL DISTRIBUTABLE CASH FLOWS & CASH SURPLUS SINCE IPO $100 • Higher, steady production rates $90 enable dependable, stable $80 financials and ultimately lead to stable, growing distributable $70 cash flows to unitholders $60 •
Slide 10: Four Levers of Growth for Stable, Growing Cash Flows
Four Levers of Growth for Stable, Growing Cash Flows Increase ownership interest in OpCo over time by purchasing new OpCo interests or purchasing outstanding interests in OpCo from WLK • Purchased 2.7% of OpCo for $135M in May 2015 Increase Ownership of • Purchased 5.0% of additional OpCo interests
Slide 11: Solid Leverage Metrics | Well-Capitalized with Strong Balance Sheet
Solid Leverage Metrics | Well-Capitalized with Strong Balance Sheet to Provide Financial Stability 80% NET DEBT / CAPITALIZATION 60% WLKP has significant financial flexibility to fund future growth with 40% strong and supportive parent, WLK 20% 0% Liquidity (in millions) June 30, 2025 WLKP C B E F D
Slide 12: Sustainable Commitments Embedded Across Westlake Through Investments, Goals, and Products
Sustainable Commitments Embedded Across Westlake Through Investments, Goals, and Products Reducing Scope 1 and 2 Expanding Portfolio of Efforts Recognized Through Emissions per Tons of Production Environmentally Safe Products Awards and Industry Memberships by 20% by 20301 • To further reduce our ca
Slide 13: Key Investment Drivers
Key Investment Drivers ► WLK’s increasing ► Strategic ► Stable, predictable ► Strategically ► Experienced and demand for relationship cash flows not located assets incentivized ethylene with WLK encumbered by management team IDRs ► Global cost ► Expanded ► Ethylene sales ► Competitive market ► Acces
Slide 14: Appendix
Appendix
Slide 15: Commitment to the Environment Through Both Company Action and Dedicated Industry Organizations
Commitment to the Environment Through Both Company Action and Dedicated Industry Organizations PARTICIPATING IN MULTI-INDUSTRY ASSOCIATIONS FOR ENVIRONMENTAL PROTECTION Westlake is a proud partner with the following organizations to drive sustainable action to eliminate plastic waste, capture more f
Slide 16: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, including statements with respect to the ability to resume distribution growth, potential levers for growth, remaining drop-down opportunities, avoiding the creation of any capital market needs, and accretive M&A as a source o
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