Westlake Chemical Corporation

Overview: Skip Teel, EVP, Olefins

2018 EIA Energy Conference
Safe Harbor Language

This presentation contains certain forward-looking statements, including statements with respect to future growth, the

ultimate outcome (such as cost savings, synergies, and joint venture development) and results of integrating the

operations of Westlake and Axiall, and the timing and results of planned expansions, cost advantages of ethylene,

distributable cash flow growth of WLKP and the potential of the Lotte ethylene JV as an additional lever of growth for

WLKP. Actual results may differ materially depending on factors such as general economic and business conditions; the

cyclical nature of the chemical industry; the availability, cost and volatility of raw materials and energy; uncertainties

associated with the United States, Europe and worldwide economies, including those due to political tensions in the

Middle East, Ukraine and elsewhere; current and potential governmental regulatory actions in the United States and

Europe and regulatory actions and political unrest in other countries; industry production capacity and operating rates; the

supply/ demand balance for our products; competitive products and pricing pressures; instability in the credit and financial

markets; access to capital markets; terrorist acts; operating interruptions (including leaks, explosions, fires, weatherrelated incidents, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, spills and

releases and other environmental risks); changes in laws or regulations; technological developments; our ability to

implement our business strategies; creditworthiness of our customers; the results of potential negotiations between

Westlake Chemical Corporation and Westlake Chemical Partners and other factors described in our reports filed with the

Securities and Exchange Commission. Many of these factors are beyond our ability to control or predict. Any of these

factors, or a combination of these factors, could materially affect our future results of operations and the ultimate accuracy

of the forward-looking statements. These forward-looking statements are not guarantees of our future performance, and

our actual results and future developments may differ materially from those projected in the forward-looking statements.

Management cautions against putting undue reliance on forward-looking statements. Every forward-looking statement

speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any

forward-looking statements.

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Investor Relations Contacts

Westlake Chemical

2801 Post Oak Boulevard, Suite 600

Houston, Texas 77056

713-960-9111

Steve Bender

Executive Vice President & 

Chief Financial Officer

Jeff Holy

Vice President &

Treasurer
Westlake Chemical Corporation

A Leading Integrated Plastics Materials Company

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(1) Includes WLK Corporate EBITDA

(2) Net Income attributable to WLK

(3) Includes tax benefit recorded in the fourth quarter of 2017 of approximately $591 million, resulting from the reduction of the federal corporate income tax rate under the Tax Act

Net Sales $8,248 Million 

EBITDA (1) $2,029 Million

Net Income (2,3) $1,453 Million 

OUR MISSION

 profitable growth ...

 in businesses we understand...

 globally in areas we can gain an edge...

 in a disciplined and opportunistic manner

Olefins Vinyls

$765 million EBITDA (1) $1,309 million

37% % of Total 63%

(LTM 1Q 2018)

Pictures: Benecke
Geographically Diversified Global Footprint

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North America Europe Asia

Natrium, West Virginia and Calvert City, Kentucky facilities 

are part of Westlake Chemical’s large global footprint.
Low-Cost, Integration & Profitable Growth: 

Key Elements of our Strategy

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• Additional global capacity expansions announced: 750MM lbs of PVC, 200MM lbs of VCM, 60MM lbs of 

Caustic Soda and 55MM lbs of Chlorine

• The JV with Lotte provides potential further ethylene integration and a reduction in purchased merchant 

ethylene

Expansion

Olefins

Vinyls

All ethane 

feedstock 

capability

Chlorinated 

Products

Key:

Ethylene

3.7B lbs Polyethylene

2.6B lbs

Styrene

570MM lbs

Chlorine

7.1B lbs

Vinyls

PVC

6.8B lbs

Building 

Products

2.0B lbs

Chlorinated Products

3.0 B lbs

Additional Ethylene 

via JV with Lotte

~220MM to 1.1B lbs

Caustic Soda

7.9B lbs

Merchant 

Ethylene 

Purchases 

~1.9B lbs 

Westlake 
Strategic Investment Drives EBITDA Growth

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2012 

EBITDA 

Future 

EBITDA 

• Timely investments to integrate the full value chain drive EBITDA

• PVC acquisitions provides profitable growth

Vinyls Olefins

2013 to 2015

2016 to 2018

2019 to 2021

Added Ethylene Capacity

Added PVC Capacity

Added Chlor-Alkali Capacity

Acquired Vinnolit and 

Speciality PVC Products

Added Ethylene Capacity

Acquired Axiall

Adding Ethylene Capacity

Adding PVC Capacity

Adding Chlor-Alkali Capacity
9%

12%

60%

19%

 Ethane

 Propane

 Naphtha

 Other

World Ethane

 Ethane

 Other NGL's

NGL Feedstock Flexibility & Infrastructure

Well positioned to take advantage of ethane and other NGL’s:

• The shale oil & gas revolution has triggered an increase in infrastructure 

build over the last several years

• The continuing NGL’s flowing from these basins will drive further pipeline 

and infrastructure expansion through 2018 and beyond

• Westlake ethylene plants are fully capable to use ethane and have some 

NGL flexibility

 Lake Charles ethylene plants are able to access ethane in basins and 

shale plays from Eagle Ford, Permian, Rockies, Marcellus and Utica

 Calvert City ethylene plant is now receiving ethane from the Marcellus 

and Utica basins

 Westlake’s European business (Vinnolit) purchases ethylene which is 

naphtha-based and provides further feedstock diversification

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Source: IHS Markit

Westlake’s North American 

Ethylene Feedslate Capability 

Western Europe Ethylene 

Industry Feedslate

Westlake

100% 

Ethane 

Capable

Ethane Non-Ethane Feed

Westlake World Ethylene
Ethane from Marcellus has Improved our 

Calvert City Ethylene Plant’s Cost-competitiveness 

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IHS analysis - U.S. ethylene plant cost curve

2018 

Relative 

Cost of 

Production

Index for

U.S 

Ethylene 

Plants

Number of U.S. ethylene plants

0.0

20.0

40.0

60.0

80.0

100.0

120.0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49
Financially Disciplined

• Disciplined Investment Culture

• Strong Balance Sheet

• Higher-Margin Polyethylene and 

PVC Products

• Low Cost U.S. Feedstocks

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