WLKP - Earnings call transcript Q1 2022 | Westlake Chemical Partners LP

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Operator

Good afternoon. Thank you for standing by, and welcome to the Westlake Chemical Partners First Quarter 2022 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. After the speakers' remarks, you will be invited to participate in a question-and-answer session.

As a reminder, this conference is being recorded today, May 3, 2022. to Westlake call and Chemical like host, to Treasurer. now Holy, Jeff Partners would turn over the today's I Vice President Sir, begin. you may

Jeff Holy

Westlake Executive XXXX our Good Partners our today members President you. afternoon, of Steve and management and Chao, to Thank Bender, CFO; CEO; our other everyone, by Albert First President Call. Conference the Quarter and I'm Vice joined team. welcome Chemical and

refer OpCo Partnership. to refer we ourselves Westlake References to certain Corporation, to the references and to Westlake subsidiary olefins parent During OpCo this call, owns Westlake and a Partners as Partnership Westlake LP, company, refer or which of assets. the to Westlake a Chemical

at details expectations learn or factors of Westlake call. which reported are about will time-sensitive thus issued predictions reviewing Domestic (XXX) by could or our (XXX) morning, web today, this Partners A replay to cash today's access information accurate Release we flow, statements discuss operating to that also suggest quarter our of is access available the with terms replay are as by distributable as cash you numbers: these document callers These This forward-looking well an that this code X on Internet as refer XXX-XXXX. is the Partnership's The our advise XXXX, to the I first page are speaks information a results our system differ on we available that Please information call the when Press callers made beginning is is at management. web on replay Westlake more lead may X, our and conference wlkpartners.com. should any that beliefs only actual Today, XXXX as through the Relations available topics accessed of to longer dialing information financial following on to of This that Definitions you being statements International MLP available currently call after of May going forward-looking website. be may flow. of wlkpartners.com. at note available that the hours encourage page cautionary are XXX-XXXX. uncertainties. conclusion may of The XXXXXXX. broadcast results. that section management to is We based be finally in no filings, you by would be the of press and webcast referring on Additionally, therefore, this Investor contain time distributable be will website. certain risks are the in replay. Chemical live can and assumptions call accessed and to subject advised dial Partners' regulatory release management's our

Now Albert Albert? would the to I like Chao. turn call over to

Albert Chao

credibility cash unit. healthy fixed including plant Good of OpCos volatility minimizing production you, XXXX and $XX per net $XX stability -- margin business demonstrated qualities, delivered insulated Strong market and through for everyone, Petro margins million. reported the from for long production of a paired production first and other high release, This of production results. risks. cash annual the generated flow flow XX% Thank In XXXX during morning's to Partners Westlake third-party Partners reliable our our supported and fee-based sales consistently history of stability its net ethylene distributions. Westlake press consolidated afternoon, discuss degree agreement joining stable or drove million our turnaround Jeff. quarter us quarter X sales of the of first income this after income, quarter thank with $X.XX you

to to the distribution I turn quarter. more provide IPO. on like our detail the quarterly results and for to now Steve? would Steve operating since is distribution financial the over XXst consecutive quarter's our This call

Steve Bender

Partners reported income, sales and we including good was XXXX everyone. $XX press million distributable OpCo's consolidated the first earnings morning's of flow or $XXX net Albert, or $XX you, on this Partnership release, In million afternoon, Thank net $X.XX of million. quarter net per Consolidated for unit. million The income quarter $X.XX of cash Westlake unit. $XX had per

cash million following of of Partners in quarter the First X for million fourth Westlake $XX of of of that $X Petro XXXX flow first turnaround $XX for early net from was income and solid by was XXXX of million. quarter. net compared production compared to $X income Partnership million of and XXXX margins driven the first solid Partnership flow third-party the to the $XX of XXXX $XX distributable turnaround cash lower increased quarter that reserve. million million quarter first in production benefited first of completed quarter XXXX Distributable increase sales an by quarter strong

million Since announced with XXXX, $XX quarterly XX the to Xx. of of On end which end was had $X.XXXX Turning metrics million we quarter, management distribution quarter, debt quarter in was per was cash with the the attention quarterly the distributions we quarter $XXX remaining through the the sheet Consolidated our with In and cash strong and Partnership leverage million, a OpCo. capital of our first balance cash totaling the flows. made Partnership below XXXX. Westlake our IPO our at and investment $XXX to the consolidated consolidated has OpCo of consecutive at agreement At investments million. first at unitholders. unit respect XXXX, million the first $XXX expenditures. our on leverage maintained ratio to $XX balance X, the of May spent We

distributions of Partnership's distribution $X.XXX unit. grown XX% minimum the quarterly per since have original We

March differentiated able sustain of XX, we distributable current the May our the is environment accessing today's without XX, markets our long-term provides distribution consistency maintaining distribution first XXXX, coverage. while XXXX, and paid predictable of X.Xx to the X.Xx cash Therefore, and be economic For on provided flow earnings XXXX. by distributions. months a Partnership's of will to significant are flow capital targeted unitholders our XX ending benefit of distribution quarter flows. the in coverage cash cash record Partnership's XX, declared fee-based May

For no in modeling we have turnarounds planned XXXX. purposes,

Our more next will Louisiana, X we our turnaround on for Charles, the turnaround planned details provide facility in XXXX we Lake our and is which Petro is at planning. currently once complete

I'll back make Albert? to comments. over the Now, turn call closing Albert some to

Albert Chao

Thank you, Steve.

and quarter the downstream and by derivatives solid in remain We continuing demand performance financial strong both market end-use a optimistic are pleased needs first operational be packaging. We the Westlake the by consumer our believe should and this with and robust ethylene, Partnership's operationally financially. year, driven products about through for demand and a parent,

XXXX. sales by we'll our deliver sales ethylene conservative structure to in continued elevated XX% cash take-or-pay demand contract continue positive predictable from feel a with we healthy margins third-party which should agreement, maintained Our strong from provides to fee-based leverage stable or with OpCo's flow balance confident production, market Westlake sheet of and a We predictable fundamentals, metrics. flows the deliver continue and financial driven cash our

acquisitions sales of with value to As negotiation provide we and including: via facilities; ethylene on ethylene of ability unitholders. our remain focused our to continue of opportunities continue streams; organic opportunities, We to such a our margin in of levers Westlake. long-term current our of navigate growth our expansions agreement higher in interest income market fixed as to ownership increases conditions, other growth qualified of OpCo; we'll our future, the evaluate X

always, with quarter live. environment to stewards As where our good call. for continue being of we operate earnings and we very you will first safely much along work the to Thank listening

to back Jeff. call Now, I'll over the turn

Jeff Holy

Thank Albert. you,

Before be we begin taking the to questions, like teleconference remind call X will available hours after I a was that ended. you this would of replay

We that will now questions. call. again provide of will take the Chris, at number the end we

Operator

of Pickering, question Holt. we from Matthew [Operator have Tudor, Instructions] Blair And a

Matthew Blair

investor given consistent just for was and couple years a you've guess, -- talk you additional it's current of are I about, potential of for Or what you look you you as drops at at a for could equity? asset to held a more the question of distribution distribution do more valuation markers of appetite I growth? potential looking question it was for that I that MLP now, feel the hoping is the of MLP? restart growth And just

Steve Bender

Yes.

Steve. it's Matthew, So

seen say into and as in the I we we've these accretive the future, flow more And year of four levers will this some in made think in so capital that reference the opportunities markets some XXXX. into see that provide for flow the And would see the markets capital undertake to Partnership to. we use that growth I to Albert ability of that

there I ready where certainly, certainly to to capital can is valuation are We that But in we the of value grow stability. the to this the to accretive reflective is that your question into the of so that so as not trading, provide certainly, distribution, think to be stand is fully unitholders. do of think units to the long the that flow space And we do able manner. ability adequate reflective

Operator

[Operator Instructions] back ended. this will the has Jeff the At session call I time, to Q&A turn now now Holy.

Jeff Holy

join again quarter XXXX next you conference second Thank for call. you'll discuss participating us We hope to today's our for our call in results.

Operator

participating Chemical Conference Call. Thank today's First you Westlake in for Partners Earnings Quarter

call for replay a replay hours the be should pleasant holders on (XXX) callers replay following As after by Tuesday, Eastern XX:XX access The until A bye XXX-XXXX. be and beginning will may a dial today's XXXXXXX. available code Domestic call May X day. has can International replay for the conclude p.m. is will numbers: call. accessed XX, the be the XXX-XXXX. have and (XXX) Good accessed XXXX. This this calling reminder, Time access at ended may

Westlake Chemical Partners (WLKP) 3 May 222022 Q1 Earnings call transcript