Westlake Chemical Partners LP Assets and Strategies to Promote Stable Growth of Cash Flows Contract structure with Westlake Chemical and capacity expansions provide Westlake Partners with the means to make consistent growth in…
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 C Corporation parent is strategically aligned with Westlake Partners C Corporation parent is investment grade rated with strong liquidity (LTM 1Q…
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…
NGL Feedstock Flexibility & Infrastructure Westlake World Ethane 100% Ethane Capable Ethane Non-Ethane Feed Westlakes North American Feedslate Capability Ethane Well positioned to take advantage of ethane and other NGLs:…
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 Integration is critical as the vast majority of PE Average Margin Advantage of profitability is captured in ethylene, not the downstream LDPE vs. Other PE Grades polymer…
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 Polyvinyl PVC…
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 Pricing Formula Promotes Stable & 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…
Key Investment Drivers Strategically Located Assets Two ethane-based processing facilities at Westlakes Lake Charles, Louisiana Lake complex Bakken Charles Olefins Combined capacity of 3 billion pounds of ethylene per year after…
WLKP Financial Strategy Maintain financial flexibility to protect and grow distributions Since IPO WLKP has demonstrated a history of substantial growth in distributions while maintaining a strong coverage ratio Protect and Grow…
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 Expand Competitive…
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 2015 LTM 1Q 2016 Adjusted EBITDA 411,183 280,893 87,861 236,909 511,567 583,821…
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