Westlake Chemical Partners Lp · NYSE:WLKP
Westlake Chemical Partners Lp — Investor Presentation (2023)
19 slides from Westlake Chemical Partners Lp's investor presentation, 2023
Slide 1: Westlake Chemical Partners LP 2nd Quarter 2023
Westlake Chemical Partners LP 2nd Quarter 2023
Slide 2: 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 Stable and predictable cash flows Long history of predictable operation from strategically located assets 95% of sales at fixe
Slide 3: Westlake Partners Assets Provide Vital Ethylene to Westlake Corporation
Westlake Partners Assets Provide Vital Ethylene to Westlake Corporation Lake Charles, Calvert City, Longview, Texas Louisiana Complex Kentucky Complex Complex • Two ethane-based processing • One ethane-based processing • A 200-mile common carrier ethylene facilities at Westlake’s Lake Charles, facil
Slide 4: Predictable and Stable Cash Flows with Conservative Financial Structure
Westlake Chemical Partners LP & Westlake Corporation Predictable and Stable Cash Flows with Conservative Financial Structure Investors Investors 59.9% ownership Westlake Chemical 40.1% ownership Westlake Partners LP Corporation (WLKP) (WLK) 22.8% ownership 77.2% ownership Westlake OpCo LP WLKP’s pre
Slide 5: Westlake Corporation's Short Position in Ethylene Provides Strong Contractual Demand
Westlake Corporation’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 Additional Ethylene via Westlake Corporation LACC JV eligible for WLKP ~1.1 Billion lbs Westlake
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 Corporation needs to produce it’s products • Ethylene Sales Agreement between Westlake Corporation and Westlake Partn
Slide 7: Sales Agreement Insulates WLKP From Commodity Risk
Sales Agreement Insulates WLKP From Commodity Risk and Provides Enhanced Cash Flow Stability Industry Integrated Margins – Ethylene and Polyethylene Integrated Margin (cents / lb) 70 60 50 40 30 20 OpCo 10 Margin 0 -10 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Y
Slide 8: WLKP's Contractual Structure Allows Stable Cash Flows and Distributions
WLKP’s Contractual Structure with WLK Allows Stable Cash Flows and Distributions Through Challenging Market Conditions The committed contractual structure with WLK provides WLKP with the financial stability to drive consistent cash distributions to unitholders Westlake Chemical Partners Distribution
Slide 9: Strong Distributable Cash Flows From Ethylene Sales Contract
Strong Distributable Cash Flows From Ethylene Sales Contract with Westlake Corporation Annual Distributable Cash Flows Since IPO Petro 2 turnaround $80 Hurricane outage Higher, steady outage production rates lead Capacity $60 expansion to dependable, stable outage financials and $40 ultimately to st
Slide 10: Westlake Chemical Partners Distribution
Westlake Chemical Partners Distribution • For its Q2 2023 distribution, WLKP maintained its distribution at the prior quarter level of $0.4714 to build cash and avoid creating any capital market needs • The strength of WLKP’s stable and predictable cash flows through 95% of its sales at a fixed marg
Slide 11: 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 12: 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 Corporation (WLK) Westlake Partners Liquidity Liquidity (in millions) Jun 30, 2023 Cash and Equival
Slide 13: Sustainable Commitments Embedded Across Westlake
Sustainable Commitments Embedded Across Westlake Through Investments, Goals and Products Reducing Scope 1 Expanding Efforts and 2 Emissions Portfolio of Recognized per Tons of Environmentally Through Awards Production by Safe Products and Industry 20% by 20301 Memberships To further reduce our carbo
Slide 14: Key Investment Drivers
Key Investment Drivers Stable and Westlake Strategic Predictable Cash Experienced & Corporation’s Relationship with Strategically Located Flows Incentivized Increasing Demand Westlake Assets Unencumbered with Management Team for Ethylene Corporation IDR’s Global Cost Expanded Ethylene Sales Competit
Slide 15: Appendix
Westlake j . A\ Vi Chemical Enhancing Your Life Every Day
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 Quarterly Annualized distribution distribution distribution distribution distribution distribution IDR Tiers to IDRs to IDRs First target distribution up to: $ 0.
Slide 17: Sustainability Focus Grounded in Longstanding Values
Sustainability Focus Grounded in Longstanding Values Our CORE VALUES, in place since our founding, we are grounded in socially responsible business Sustainable practices and continue to be a guiding light for our Products evolving sustainability strategy Health, Safety & Environment (“HSE”) Proactiv
Slide 18: Commitment to the Environment Through Company Action and 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 19: 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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