The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matthew Blair - Tudor, Pickering, Holt & Co. - Analyst
: Thank you, and good morning, Albert and Steve.
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MAY 01, 2024 / 5:00PM, WLKP.N - Q1 2024 Westlake Chemical Partners LP Earnings Call
Albert Chao - Westlake Chemical Partners LP - President, Chief Executive Officer, Director of Westlake Chemical Partners GP LLC
Morning, Matthew.
Question: Matthew Blair - Tudor, Pickering, Holt & Co. - Analyst
: So Albert, you mentioned at the beginning the Q1 earnings benefited from a higher sales price to Westlake. What was the driver of the higher sales
price? And does that represent a renegotiation of the fixed margin contract?
Question: Matthew Blair - Tudor, Pickering, Holt & Co. - Analyst
: Okay, sounds good. And then could you talk about the outlook for coverage? You're below your [1.1 times] target. But I guess, we would expect
the coverage to improve next quarter as you roll off the Calvert City turnaround from Q2 2023. Is that how you're looking at it as well?
Question: Matthew Blair - Tudor, Pickering, Holt & Co. - Analyst
: Sounds good. Thank you.
Question: Salvator Tiano - Bank of America Securities, Inc. - Analyst
: Thank you very much. So my first question is, as you think about the options to either expand the company or its earnings, and you mentioned
that you can consider projects to expand ethylene capacity or even M&A, does any of this would make sense if you still get $0.10 from per pound
from Westlake? Or does it have to be accompanied by a better margin in your agreement with the sponsor?
Question: Salvator Tiano - Bank of America Securities, Inc. - Analyst
: Okay, perfect. And with regard to, I guess, sustainability. I know many of the companies -- petrochemical companies are looking into a lot of things,
including some options for their ethylene crackers, electrifying them or using hydrogen.
I understand that obviously, you would have to work with Westlake Corporation for that but is it something that would make sense for the specific
assets that are included into Westlake Partners?
Question: Salvator Tiano - Bank of America Securities, Inc. - Analyst
: Great. Thank you very much.
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