Westlake Westlake Corporation Fourth Quarter 2021 Earnings Presentation February 22, 2022 Westlake Corporation 2021 Highlights Business Highlights Record fourth quarter and full-year 2021 results for sales, net income and EBITDA Re-segmentation of business to provide greater clarity and enhanced reporting of all businesses Housing and Infrastructure Products segment EBITDA of $534 million for 2021 Performance and Essential Materials segment EBITDA of $3,247 million for 2021 Announce $3.8 billion of acquisit ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended September 30, 2021, including key financial positions and performance such as total assets of $1.36 billion, net income of $66.1 million for Q3 2021, and net cash provided by operating activities of $386.6 million for the nine months ended September 30, 2021 Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $291,243 | $263,305 | | **Total assets** | $1,360,562 | $1,356,488 | | **Total current liabilities** | $54,559 | $39,754 | | **Long-term debt payable to Westlake** | $399,674 | $399,674 | | **Total liabilities** | $455,743 | $441,351 | | **Total equity** | $904,819 | $915,137 | Consolidated Statements of Operations Highlights (in thousands, except per unit data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total net sales** | $293,966 | $231,969 | $884,402 | $721,018 | | **Gross profit** | $75,928 | $100,391 | $294,656 | $293,969 | | **Income from operations** | $68,136 | $94,136 | $269,922 | $275,379 | | **Net income** | $66,075 | $91,848 | $262,991 | $265,995 | | **Net income attributable to Westlake Chemical Partners LP** | $12,790 | $18,535 | $53,035 | $51,142 | | **Net income per limited partner unit (basic and diluted)** | $0.36 | $0.53 | $1.51 | $1.45 | Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $386,577 | $340,876 | | **Net cash used for investing activities** | ($111,364) | ($58,170) | | **Net cash used for financing activities** | ($273,720) | ($279,298) | | **Net increase in cash and cash equivalents** | $1,493 | $3,408 | - The Partnership operates ethylene production facilities and holds a **22.8%** limited partner interest in Westlake Chemical OpCo LP ("OpCo"), which it consolidates as the primary beneficiary Westlake Chemical Corporation owns the remaining **77.2%** interest in OpCo[22](index=22&type=chunk)[23](index=23&type=chunk)[26](index=26&type=chunk) - A quarterly cash distribution of **$0.4714** per unit for Q3 2021 was declared on November 1, 2021, payable on November 29, 2021[37](index=37&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition and results of operations, highlighting the Partnership's reliance on a long-term, fee-based Ethylene Sales Agreement with Westlake for stable revenue, and analyzing key performance indicators, operational events, and liquidity [Partnership Overview and Revenue Generation](index=18&type=section&id=Partnership%20Overview%20and%20Revenue%20Generation) The Partnership's primary asset is its 22.8% limited partner interest in OpCo, with most revenue generated through a long-term, fee-based Ethylene Sales Agreement with Westlake, ensuring stable cash flows by insulating from commodity price volatility - The Partnership owns a **22.8%** limited partner interest in OpCo, while Westlake retains the remaining **77.2%** interest[84](index=84&type=chunk)[85](index=85&type=chunk) - The core of the business model is the Ethylene Sales Agreement with Westlake, which features a take-or-pay commitment for **95%** of annual budgeted production at a fixed margin of **$0.10** per pound, plus pass-through of feedstock and other production costs[86](index=86&type=chunk) - In the event of a force majeure, the Partnership can recognize buyer deficiency fees representing the fixed margin and certain costs for production that would have occurred[86](index=86&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) For Q3 2021, net income decreased to $66.1 million from $91.8 million in Q3 2020, primarily due to higher feedstock costs and a significant buyer deficiency fee recognized in the prior-year period, while nine-month net income remained relatively stable at $263.0 million Q3 2021 vs. Q3 2020 Performance (in millions) | Metric | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $294.0 | $232.0 | +$62.0 | | **Gross Profit** | $75.9 | $100.4 | -$24.5 | | **Net Income** | $66.1 | $91.8 | -$25.7 | | **Net Income attributable to Partnership** | $12.8 | $18.5 | -$5.7 | | **MLP Distributable Cash Flow** | $13.0 | $21.2 | -$8.2 | | **EBITDA** | $94.7 | $120.1 | -$25.4 | Nine Months 2021 vs. 2020 Performance (in millions) | Metric | Nine Months 2021 | Nine Months 2020 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $884.4 | $721.0 | +$163.4 | | **Gross Profit** | $294.7 | $294.0 | +$0.7 | | **Net Income** | $263.0 | $266.0 | -$3.0 | | **Net Income attributable to Partnership** | $53.0 | $51.1 | +$1.9 | | **MLP Distributable Cash Flow** | $54.8 | $56.4 | -$1.6 | | **EBITDA** | $352.8 | $353.9 | -$1.1 | - The Partnership recognized buyer deficiency fees and Shortfall of **$21.5 million** in the first nine months of 2021 due to force majeure events at its Petro 1 and Petro 2 facilities[94](index=94&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The Partnership's liquidity is supported by cash from operations, two **$600 million** revolving credit facilities with Westlake, and a **$50 million** ATM equity program, with total debt at **$399.7 million** and sufficient resources for operational needs and distributions - Primary liquidity sources include cash from operations, the OpCo Revolver, the MLP Revolver, and a **$50 million** ATM Program No common units have been issued under the ATM program as of September 30, 2021[123](index=123&type=chunk)[125](index=125&type=chunk) Debt Position as of September 30, 2021 (in millions) | Facility | Outstanding Borrowings | | :--- | :--- | | **OpCo Revolver** | $22.6 | | **MLP Revolver** | $377.1 | | **Total Debt** | $399.7 | - As of September 30, 2021, the Partnership had **$18.6 million** in cash and cash equivalents, plus an additional **$196.3 million** of cash invested with Westlake under an Investment Management Agreement[130](index=130&type=chunk)[131](index=131&type=chunk) - Total capital expenditures for the nine months ended September 30, 2021 were **$38.5 million**[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Partnership's commodity price risk is limited to about **5%** of ethylene production due to its cost-plus Ethylene Sales Agreement, while its primary market risk is interest rate risk on **$399.7 million** in variable-rate debt, where a 100 basis point increase would raise annual interest expense by approximately **$4.0 million** - Direct exposure to commodity price risk is limited to approximately **5%** of total ethylene production sold to third parties, as the Ethylene Sales Agreement with Westlake mitigates the risk for the majority of sales[140](index=140&type=chunk) - The company is exposed to interest rate risk on its **$399.7 million** of variable-rate debt A hypothetical **100 basis point (1%)** increase in interest rates would increase annual interest expense by approximately **$4.0 million**[141](index=141&type=chunk) - The company is monitoring the phase-out of LIBOR, set to conclude by June 30, 2023, but does not currently expect the impact to be material[142](index=142&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of September 30, 2021, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation by management, the President and CEO, and the EVP and CFO, the Partnership's disclosure controls and procedures were deemed effective as of the end of the period covered by the report[143](index=143&type=chunk) - There were no changes in internal control over financial reporting during Q3 2021 that have materially affected, or are reasonably likely to materially affect, internal controls[144](index=144&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The Partnership is involved in legal proceedings incidental to its business, including a potential EPA enforcement action regarding flare emissions (indemnified by Westlake) and five pending lawsuits related to a flash fire at the Petro 2 facility, none of which management believes will have a material adverse effect - The EPA is conducting an enforcement initiative regarding flare emissions at the Calvert City and Lake Charles facilities, which may result in a monetary sanction over **$0.3 million** Westlake is expected to fully indemnify the Partnership for such costs[147](index=147&type=chunk) - Five lawsuits are pending in connection with a flash fire that occurred at the Petro 2 facility's quench tower during its turnaround in September 2021[81](index=81&type=chunk)[148](index=148&type=chunk) - Management does not believe that any current legal proceedings will have a material adverse effect on the Partnership's financial condition, results of operations, or cash flows[149](index=149&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, stating no material changes from those previously disclosed - There have been no material changes from the risk factors previously disclosed in the 2020 Form 10-K[150](index=150&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications (Rule 13a-14(a)/15d-14(a) and Section 1350) and XBRL data files - The report lists exhibits filed concurrently, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL-related documents[151](index=151&type=chunk)

Westlake Chemical Partners LP (NYSE:WLKP) Q3 2021 Results Conference Call November 2, 2021 12:00 PM ET Company Participants Jeff Holy - VP and Treasurer Albert Chao - President and CEO Steve Bender - EVP and CFO Conference Call Participants Matthew Blair - Tudor, Pickering, Holt Operator Good morning. Thank you for standing by. Welcome to the Westlake Chemical Partners Third Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today, November 2, 202 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or For the Transition Period from to Commission File No. 001-36567 Westlake Chemical Partners LP (Exact name of registrant as specified in its charter) Delaware 32-0436529 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 2801 Post Oak Boulevard ...

Second Quarter 2021 Earnings Presentation August 3, 2021 Commitment to Corporate Social Responsibility is Formed by Five Longstanding Core Values | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------- ...

| --- | |-------| | | | | Acquisition Significantly Expands Westlake's Leading Positions in Fast Growing Home Building Products • Acquisition of Boral Limited's North America building products business ('BNA') adds significant scale and product diversification to Westlake to broaden its leading Building Products business: – BNA has leading positions in Concrete & Clay Roofing, Decorative Stone, and Plastic Shutters; as well as strong positions in Stone Coated Metal Roofing, Texas Windows, and Premium Siding ...

| --- | --- | |-------|---------------------------------------------------------------------------------------| | | | | | Goldman Sachs Leveraged Finance Conference May 17, 2021 Westlake Chemical Partners LP | Westlake Chemical Partners LP Attractive Yield, Stability, and Long Growth Runway Westlake Chemical Partner's (WLKP) combination of yield, cash flow stability, and runway of available growth offers a compelling investment opportunity relative to other yield oriented investments • WLKP currently pays a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File No. 001-36567 Westlake Chemical Partners LP (Exact name of registrant as specified in its charter) Delaware 32-0436529 (State or other jurisdiction of ...

Westlake Chemical Partners LP (NYSE:WLKP) Q1 2021 Earnings Conference Call May 4, 2021 1:00 PM ET Company Participants Jeff Holy - Vice President & Treasurer Albert Chao - President & Chief Executive Officer Steve Bender - Senior Vice President & Chief Financial Officer Conference Call Participants Mike Leithead - Barclays Steve Byrne - Bank of America Operator Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners First Quarter 2021 Earnings Conference Call. During the present ...

Financial Performance - Westlake's sales for the first quarter of 2021 were $2357 million, a 20% increase compared to $1965 million in the fourth quarter of 2020 and a 22% increase compared to $1932 million in the first quarter of 2020[11] - The company's operating income for 1Q21 was $346 million, a 94% increase compared to $178 million in 4Q20 and a 154% increase compared to $136 million in 1Q20[11] - Westlake's EBITDA for 1Q21 was $553 million, a 43% increase compared to $386 million in 4Q20 and a 64% increase compared to $337 million in 1Q20[11] - Net income attributable to Westlake Chemical Corporation for 1Q21 was $242 million, compared to $113 million in 4Q20 and $145 million in 1Q20[8, 24] - Diluted earnings per share attributable to Westlake Chemical Corporation for 1Q21 was $1.87, compared to $0.87 in 4Q20 and $1.13 in 1Q20[8, 24] Segment Performance - Vinyls segment sales for 1Q21 were $1820 million, a 14% increase compared to $1590 million in 4Q20 and a 21% increase compared to $1505 million in 1Q20[15] - Vinyls segment EBITDA for 1Q21 was $367 million, a 10% increase compared to $334 million in 4Q20 and a 58% increase compared to $232 million in 1Q20[15] - Olefins segment sales for 1Q21 were $537 million, a 43% increase compared to $375 million in 4Q20 and a 26% increase compared to $427 million in 1Q20[18] - Olefins segment EBITDA for 1Q21 was $216 million, a 266% increase compared to $59 million in 4Q20 and a 120% increase compared to $98 million in 1Q20[18] Industry Outlook and Sustainability - The company is focused on sustainability, launching green caustic soda with a reduced CO2 impact of more than 30% compared to conventional caustic soda[4, 10] - Over a five-year period, Westlake has reduced Sulphur Dioxide emissions to almost zero and achieved a nearly 30% reduction on CO2 emissions[4]