Westlake Chemical Partners LP
1st Quarter 2021
Commitment to Corporate Social Responsibility is
Formed by Five Longstanding Core Values
HEALTH, SAFETY | OUR PEOPLE | |
& ENVIRONMENT | ||
("HSE") | The integrity, | |
creativity, | ||
The health and | dedication, diversity | |
safety of our | and drive of our | |
employees and | employees allow us | |
communities, and | to excel. We | |
the vigilant | support, develop | |
stewardship of the | and inspire our | |
environment and | people to achieve | |
sustainability are of | their personal best | |
utmost importance | and treat them with | |
and at the forefront | dignity and respect | |
of everything we do | ||
QUALITY & | COMPETITIVENESS | CITIZENSHIP | ||
CONTINUOUS | ||||
IMPROVEMENT | We are committed to | We recognize the | ||
enhancing the lives of | importance of | |||
Our commitment to | people in the global | |||
supporting the | ||||
quality products and | marketplace every | |||
communities in | ||||
service is so strong | day. We do this by | |||
which we work and | ||||
that both are | providing innovative | |||
live and make it a | ||||
symbolized as the | and useful products, | |||
priority to take an | ||||
two check marks that | maintaining high | |||
form the Westlake | standards of | active role in | ||
"W" in our logo. We | customer service and | making these | ||
seek to maintain this | operational | communities better | ||
commitment through | excellence with a | |||
an intensive practice | constant focus on | |||
of "never-ending | managing costs | |||
process of | ||||
improvement" | ||||
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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
95% of sales at fixed margin to investment
grade parent
Long history of predictable operation
from strategically located assets
Globally cost advantaged feedstock with operating rates that exceed North American industry averages
Excellent governance and strategic
alignment with investment grade parent
Q3 2018 IDR reset with no compensation paid illustrates parent company commitment to Westlake Partners
Four levers of continued growth:
- Negotiate higher ethylene margin
- Acquisition opportunities
- Periodic drop downs from OpCo
- Expansion opportunities
- WLKP's stable and predictable cash flows gives it the flexibility to keep its distribution stable to build cash in the current MLP equity market conditions
- Ability to keep distribution stable places WLKP among top MLPs with many other MLPs reducing distributions during 2020
- Significant growth runway remains available at WLKP through its four growth levers
3
Westlake Chemical Partners LP & Westlake Chemical Corporation
Predictable and Stable Cash Flows with Conservative Financial Structure
Investors | Investors | |
59.9% ownership | ||
Westlake | Westlake | |
Chemical | 40.1% ownership | |
Chemical Corp | ||
Partners LP | ||
(WLK) | ||
(WLKP) | ||
22.8% ownership | Westlake | 77.2% ownership |
Chemical | ||
OpCo LP |
WLKP's predictable and stable cash flows are bolstered by:
- Increased earnings and extended distribution growth runway through added capacity expansions, IDR reset, significant remaining drop down capacity at OpCo, and potential opportunity to acquire an interest in the Lotte / Westlake JV cracker
- Conservative balance sheet and a DCF coverage ratio target of 1.1x providing significant flexibility to fund future growth
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Westlake Partners Assets Provide Vital Ethylene to
Westlake Chemical
Lake Charles, | Calvert City, Kentucky | Longview, Texas | ||
Louisiana Complex | Complex | Complex | ||
• Two ethane-based processing | • One ethane-based processing | • A 200-mile common carrier ethylene |
facilities at Westlake's Lake | facility located in Calvert City, | pipeline that runs from Mont Belvieu, |
Charles, Louisiana complex | Kentucky | Texas to the Longview, Texas |
• Combined capacity of 3 billion | • Capacity of 730 million pounds of | chemical complex, which includes |
Westlake's Longview PE production | ||
pounds of ethylene primarily | ethylene per year primarily | |
facility | ||
consumed by Westlake in the | consumed by Westlake in the | |
production of chemicals | production of higher value-added | |
including PE and PVC | chemicals including PVC |
Westlake Chemical depends on Westlake Partners to supply the Ethylene used to produce all of its key end products: Polyethylene, Styrene, PVC, and Building Products
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Westlake Chemical Partners LP published this content on 28 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2021 16:36:05 UTC.