Westlake Chemical Partners Lp · NYSE:WLKP
Westlake Chemical Partners Lp — Goldman Sachs Leveraged Finance Conference 2021
20 slides from Westlake Chemical Partners Lp's conference presentation, May 17, 2021
Slide 1: Westlake Chemical Partners LP
Westlake Chemical Partners LP Goldman Sachs Leveraged Finance Conference May 17, 2021
Slide 2: Attractive Yield, Stability, and Long Growth Runway
Westlake Chemical Partners LP Attractive Yield, Stability, and Long Growth Runway Westlake Chemical Partner’s (WLKP) combination of yield, cash flow stability, and runway of available growth offers a compelling investment opportunity relative to other yield oriented investments • WLKP currently pays
Slide 3: Commitment to Social Responsibility and Advancing Sustainability
Commitment to Social Responsibility and Advancing Sustainability Westlake Chemical’s commitment to social responsibility and advancing sustainability is formed by the company’s longstanding core values: ▪ Health, Safety & Environmental: The vigilant stewardship of the environment and sustainability
Slide 4: Predictable and Stable Cash Flows with Conservative Financial Structure
Westlake Chemical Partners LP & Westlake Chemical Corporation Predictable and Stable Cash Flows with Conservative Financial Structure Investors Investors 59.9% ownership Westlake Chemical 40.1% ownership Westlake Partners LP Chemical Corp (WLKP) (WLK) 22.8% ownership 77.2% ownership Westlake Chemica
Slide 5: Westlake Partners Assets Provide Vital Ethylene to Westlake Chemical
Westlake Partners Assets Provide Vital Ethylene to Westlake Chemical Lake Charles, Louisiana Calvert City, Kentucky Longview, Texas Complex Complex Complex • Two ethane-based processing • One ethane-based processing • A 200-mile common carrier ethylene facilities at Westlake’s Lake facility located
Slide 6: Westlake Partners Value Chain: Ethylene Sales Agreement
Westlake Partners Value Chain: Ethylene Sales Agreement Pricing Formula Promotes Stable & Predictable Cash Flows • Westlake Partners is the critical supplier of the Ethylene Westlake Chemical needs to produce it’s products • Ethylene Sales Agreement between Westlake Chemical and Westlake Partners pr
Slide 7: Stability of WLKP's Cash Flows Provides Significant Flexibility in Current Market Environment
Stability of WLKP’s Cash Flows Provides Significant Flexibility in Current Market Environment The stability and predictability of WLKP cash flows has enabled it to grow or maintain distributions to unitholders every quarter since IPO • Ability to keep distribution stable places WLKP among top MLPs w
Slide 8: Four Levers of Growth for Stable, Growing Cash Flows
Four Levers of Growth for Stable, Growing Cash Flows Increase our ownership interest in OpCo over time either by purchasing new OpCo interests or by purchasing outstanding interests in OpCo from WLK • Purchased 2.7% of OpCo for $135 Million in May 2015 • Purchased 5% of additional OpCo interests for
Slide 9: Solid Leverage Metrics
Solid Leverage Metrics Well Capitalized for Financial Stability WLKP is well capitalized and has significant financial flexibility to fund future growth with its strong and supportive parent; Westlake Chemical (WLK) Westlake Partners Liquidity Liquidity (in millions) Mar 31, 2021 Cash and Equivalent
Slide 10: Westlake Chemical Partners LP
Westlake Chemical Partners LP • Predictable and stable cash flows insulated from commodity price risk • Long history of reliable operations from strategically located assets Long history of predictable operation from Stable and predictable cash flows strategically located assets 95% of sales at fixe
Slide 11: Appendix
A\ U4 Westlake Enhancing Your Life Every Day Chemical
Slide 12: Westlake Chemical's Short Position in Ethylene Provides Strong and Contractual Demand
Westlake Chemical’s Short Position in Ethylene Provides Strong and Contractual Demand for Westlake Partners Westlake Partners’ current production capacity plus the potential 1.1B lbs in the JV cracker would still leave Westlake Chemical short an additional 1.1B lbs of Ethylene Westlake Westlake Chem
Slide 13: Sales Agreement has Insulated WLKP From Commodity Risk and Enhanced Cash Flow Stability
Sales Agreement has Insulated WLKP From Commodity Risk and Enhanced Cash Flow Stability OpCo Margin Source: IHS/ Markit • The integrated margin shown above is well above 10 cents historically supporting sustainability of margin and potential to negotiate increase to the margin • Requires WLK to purc
Slide 14: Strong Distribution Growth From Conservative Financial Structure
Strong Distribution Growth From Conservative Financial Structure Annual Distributable Cash Flows and Production since IPO Higher, steady production rates lead to Capacity dependable, expansion Hurricane outage outage stable financials and ultimately to stable growing distributable cash flows to unit
Slide 15: Completed Capacity Expansions + IDR Resets + Acquisition of JV Opportunity
Completed Capacity Expansions + IDR Resets + Acquisition of JV Opportunity Provides Extended Growth Runway to WLKP LACC JV IDR reset OpCo drop Cracker Calvert City provides down eligible to Expansion longer add to drop and OpCo growth path down Petro 1 drop down OpCo drop inventory down Expansion 77
Slide 16: Reset IDR Tiers for Westlake Chemical Partners
Reset IDR Tiers for Westlake Chemical Partners Initial Newly reset distribution structure distribution structure Quarterly Annualized % distribution Quarterly Annualized % distribution IDR Tiers distribution distribution to IDRs distribution distribution to IDRs First target distribution up to: $ 0.
Slide 17: Westlake Makes Essential Products To Protect and Enhance Our Daily Lives
Westlake Makes Essential Products To Protect and Enhance Our Daily Lives Westlake’s products support over half Westlake’s products are used for many of the 17 Sustainable Development essential goods that are particularly important Goals adopted by the United Nations: in today’s environment: Chlor Al
Slide 18: Westlake's Environmental Responsibility
Westlake's Environmental Responsibility At Westlake, we strive to protect the world around us and preserve our natural resources. We have made meaningful reductions in our emissions and the natural resources that we use. Among these reductions described in our Sustainability Report, we have: • Reduc
Slide 19: 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 20: 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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