Westlake Chemical Partners LP 2015 RBC Capital Markets MLP Conference November 18, 2015
Westlake Chemical Partners LP Assets and Strategies to Promote Stable Growth of Cash Flows Contract structure with Westlake Chemical provides Westlake Partners with the means to make consistent growth in distributions since IPO. Map…
Westlake Chemical Partners LP & Westlake Chemical Corporation Organizationally Aligned for Profitable Growth Investors Investors 48% ownership Westlake Chemical 52% ownership Westlake Partners LP Chemical Corp (WLKP) (WLK)…
Westlake Chemical Corporation A Leading Integrated Plastics Materials Company (LTM Q3 2015) Net Sales 4,612 Million EBITDA (1) 1,348 Million Net Income (2) 718 Million Olefins Vinyls 967 million EBITDA (1) 409 million 70% %…
Recent IRS Proposed Regulations Westlake Partners (WLKP) believes that the IRS was correct in providing a favorable Private Letter Ruling in 2013 qualifying our income stream for MLP treatment and this was the basis for WLKPs…
Westlake Chemical Partners LP Key Investment Highlights The Partnership was formed to operate, acquire and develop permitted income streams from the processing of NGLs and related assets to sell ethylene to Westlake Chemical…
Westlake Chemical Partners LP Business Strategies Generate Stable, Ethylene Sales Agreement is designed to provide stable margin on 95% of Fee-Based Cash processed NGLs, with 5% sold to third parties at currently higher market…
Assets Well Positioned Ethane & NGL Advantage U.S. Ethane Production Forecast Supply of NGLs has risen dramatically from shale and tight rock formations in the US driving down ethane prices domestically NGL production has with…
Ethylene Prices Set on Global Basis Positive Industry Fundamentals Ethylene Industry Overview World's most widely used petrochemical Building block for a number of derivatives such as PE and PVC Principal feedstocks are petroleum…
WLK: Advanced Product Mix and Positive Industry Fundamentals Superior Product Mix Integration is critical as vast majority of PE profitability is Margin Differential of LDPE vs. Other PE Grades(1) captured in ethylene, not the…
Low Cost Producer of PVC Due to High Integration Positive Industry Fundamentals Chlor-Alkali Overview of the Vinyls Chain Typical Vinyls Industry Margin Caustic Soda Distribution Over the Last Cycle Ethylene Vinyl 7% Polyvinyl…
Growing Global PVC Demand Supports Exports 60,000 60% (as % of Total North America Production) Global PVC Demand N.A. PVC Exports 50,000 50% North America PVC Exports (thousand Metric Tons) Global PVC Demand 40,000…
Key Investment Drivers Stable and Predictable Cash Flows Initial term through December 31, 2026 with an automatic annual renewal mechanism thereafter unless terminated by either party Requires WLK to purchase 95% of OpCos planned…
Key Investment Drivers Strategically Located Assets Two ethane-based processing facilities at Westlakes Lake Charles, Louisiana Lake complex Bakken Charles Olefins Combined capacity of 2.7 billion pounds of ethylene per year…
WLKP Financial Strategy Maintain financial flexibility to protect and grow distributions Conservative total unit distribution coverage target of 1.10x at IPO, and 1.17x as of 3Q 2015 Protect and Grow Distributions Approximately 50%…
Comparable Leverage Metrics WLKP is well capitalized and has significant financial flexibility to fund future growth with its strong and supportive Parent WLK Westlake Partners Post IPO Liquidity Liquidity (in millions) Actual as of…
Key Investment Drivers Positive Strategic Stable and Experienced & Strategically Incentivized Industry Relationship Predictable Located Assets Management Fundamentals with Westlake Cash Flows Team Competitive Capitalize on…
Appendix
Reconciliation of EBITDA to Net Income (Loss) and to Cash Flow from Operating Activities (in thousands) 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q 2015 Adjusted EBITDA 411,183 280,893 87,861 236,909 511,567 583,821 779,841…
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