Westlake Chemical Partners LP (NYSE:WLKP) Q4 2019 Earnings Conference Call - Final Transcript

Feb 18, 2020 • 12:00 pm ET

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Westlake Chemical Partners LP (NYSE:WLKP) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you, sir. [Operator Instructions] Our first question comes from Matthew Blair from Tudor, Pickering, Holt. Please go ahead.

Analyst
Matthew Blair

Hey, good morning. Albert and Steve.

Executive
Albert Chao

Good morning Matthew.

Analyst
Matthew Blair

The release mentioned increased production at OpCo quarter-over-quarter. Can you share any detail on the overall volumes or at least the magnitude of the quarter-over-quarter improvement?

Executive
M. Steven Bender

Yeah, Matthew we haven't given production number specifically, but as you can see it continues to perform quite strongly and as I noted earlier, we do expect to assess the turnaround for a later this year. And -- but I will say that we had very strong production and you can see it really drove our results for the quarter.

Analyst
Matthew Blair

Indeed. Okay. And then back in the second quarter of 2016 with the Petro 1 turnaround, your quarter-over-quarter EBITDA fell by about $20 million, is that a good ballpark impact estimate for the upcoming Petro 2 turnaround? And I guess it's going to be the third quarter of 2020?

Executive
M. Steven Bender

Yeah, so the way to think about the impact is really going to be the number of days of outage. Because we've got a fixed toll arrangement around the facilities and so as you think about the turnarounds and we've given guidance of approximately 60 days that really should give you guidance in terms of the margin times the production that will be lost during that turnaround period.

Analyst
Matthew Blair

Sounds good. Thank you.

Executive
M. Steven Bender

You are welcome.

Operator
Operator

Thank you. Our next question comes from Mike Leithead from Barclays. Please go ahead.

Analyst
Mike Leithead

Thanks. Good morning again guys. Just one [Speech Overlap] one quick for me. On the new ethylene low [Indecipherable] how should we think about potential drop down into the MLP as you think about distribution growth forward versus other drop-downs of OpCo already?

Executive
Albert Chao

So Mike, we know that the unit, the ethylene unit, is a qualified income stream and we've identified it over time as a potential acquisition opportunity for OpCo and certainly as we consider the four levers of growth that we have. Certainly it would be considered as one of those levers that we'll consider as we think about growing the earnings later this year.

Analyst
Mike Leithead

Got it. Thank you.

Executive
Albert Chao

You're welcome.

Operator
Operator

Thank you. At this time, the Q&A session has ended. I would now like to turn the call back over to Jeff Holy.

Executive
Jeff Holy

Thank you again for participating in today's call. We hope you'll join us for our next conference call to discuss our first quarter 2020 results.

Operator
Operator

Thank you for participating in today's Westlake Chemical Partners fourth quarter earnings conference call. As a reminder, this call will be available for replay beginning two hours after the call has ended. The replay can be accessed by calling the following numbers. Domestic callers should dial 855-859-2056, International callers may access the replay at 404-537-3406. The access code is 5679302. This will conclude today's call, goodbye.