Westlake Chemical Partners Lp · NYSE:WLKP
Westlake Chemical Partners Lp — Investor Presentation (September 2017)
13 slides from Westlake Chemical Partners Lp's investor presentation, Sep 26, 2017
Slide 1: Investor Presentation September 2017
Investor Presentation September 2017 Westlake Chemical Partners LP Exhibit 99.3
Slide 2: Notices and Disclaimers
Notices and Disclaimers This presentation contains certain forward-looking statements, including statements with respect to future growth, potential levers for distributable cash flow, growth for Westlake Chemical Partners and the timing and results of a scheduled debottleneck of ethylene cracking u
Slide 3: Drop Down Overview and Rationale
Drop Down Overview and Rationale Westlake Chemical Partners LP is acquiring an additional 5.0% fully diluted interest in OpCo Purchase price of $229 million representing a multiple of approximately 10.5x on a trailing twelve months basis Transaction will be funded through equity offering as well as
Slide 4: Westlake Chemical Partners has Performed Strongly Since IPO
Westlake Chemical Partners has Performed Strongly Since IPO Westlake Chemical Partners LP has executed on its growth strategy, even during the IRS' regulatory proceeding and amidst the backdrop of challenging MLP markets (12.0% distribution per unit CAGR since IPO) With the final IRS regulations pub
Slide 5: Key Investment Highlights: Stable and Predictable Cash Flows
Stable and Predictable Cash Flows Ethylene Sales Agreement designed to provide stable 10 cents per pound margin on 95% of ethylene volumes, with 5% sold to third parties at market prices Strategic Relationship with Westlake Fosters Operational Alignment Completed expansions, plus a multi-year drop d
Slide 6: Ethylene Sales Agreement Overview
Overview Initial term through December 31, 2026 with an automatic annual renewal mechanism thereafter unless terminated by either party Requires WLK to purchase 95% of OpCo’s planned ethylene volume each year, with a maximum commitment of 3.8 billion pounds per year If OpCo’s actual volume is in exc
Slide 7: Strategic Relationship with Westlake Fosters Operational Alignment
Westlake Chemical Corp (WLK) 100% ownership Key Investment Highlights Strategic Relationship with Westlake Fosters Operational Alignment Polyethylene Styrene Olefins Vinyls Westlake Chemical Partners LP (WLKP) 18.3% PF ownership 81.7% PF ownership Chlorine + EDC + VCM + PVC + Building Products Ethan
Slide 8: Strategically Located Assets: Lake Charles, Calvert City, Longview Pipeline
Lake Charles Olefins Two ethane-based processing facilities at Westlake’s Lake Charles, Louisiana complex Combined capacity of 3 billion pounds of ethylene per year Primarily consumed by Westlake in the production of chemicals including PE and PVC One ethane-based processing facility located in Calv
Slide 9: Positive Industry Fundamentals
Key Investment Highlights Positive Industry Fundamentals Well positioned to take advantage of ethane and other NGLs: The shale oil & gas revolution has triggered an increase in infrastructure build over the last several years The continuing NGLs flowing from these basins will drive further pipeline
Slide 10: Business Strategy: Stable Fee-Based Cash Flow and Growth
Generate Stable, Fee-Based Cash Flow Ethylene Sales Agreement is designed to provide stable margin on 95% of ethylene produced, with 5% sold to third parties at market prices Focus on Operational Excellence Maximize the throughput of our processing facilities while providing safe, reliable and effic
Slide 11: Westlake Chemical
Westlake Chemical Enhancing Your Life Every Day
Slide 12: Reconciliation of EBITDA to Net Income
Reconciliation of EBITDA to Net Income (000's of dollars) Q2 2017 Q1 2017 Q4 2016 Q3 2016 Net cash provided by operating activities $ 113,208 149,078 110,356 (7,907) Changes in operating assets and liabilities and other $ (26,630) (62,958) (16,820) 83,835 Deferred income tax expense $ (108) (92) 45
Slide 13: Reconciliation of MLP Distributable Cash Flow to Net Income
Reconciliation of MLP Distributable Cash Flow to Net Income (000's of dollars) Q2 2017 Q1 2017 Q4 2016 Q3 2016 Net cash provided by operating activities $ 113,208 149,078 110,356 (7,907) Changes in operating assets and liabilities and other $ (26,630) (62,958) (16,820) 83,835 Deferred income tax exp
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