Westlake Chemical Partners LP

Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Second Quarter 2020 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. After the speaker's remarks, you'll be invited to participate in a question and answer session. As a reminder, this conference call is being recorded today, August 6, 2020. I would now like to turn the call over to today's host, Jeff Holly, Westlake Chemical Partners Vice President and Treasurer.

Thank you, Michelle. Good afternoon, everyone, and welcome to the Westlake Chemical Partners second quarter 2020 conference call. I'm joined today by Albert Chao, our president and CEO, Steve Bender, our senior vice president and CFO, and other members of our management team. During this call, we refer to ourselves as Westlake Partners for the partnership. References to Westlake or Westlake Chemical refer to our parent company Wesley Chemical Corporation, and references to Opco refer to Wesley Chemical Opco LP, a subsidiary of Wesley Chemical and the partnership, which owns certain Oliphant assets. Additionally, when we refer to distributable cash flow, we are referring to Wesley Chemical Partners MLP distributable cash flow. Definitions of these terms are available on the partnership's website. Today, management is going to discuss certain topics that will contain forward-looking information that is based on management's beliefs as well as assumptions made by and information currently available to management. These forward-looking statements suggest predictions or expectations and thus are subject to risks or uncertainties. Actual results could differ materially based upon many factors including operating difficulties, the volume of ethylene that we are able to sell, The price at which we are able to sell ethylene, changes in the prevailing economic conditions, actual and proposed governmental regulatory actions, competitive products and pricing pressures, the COVID-19 pandemic, our ability to borrow funds and access capital markets at a reasonable cost, and other risk factors discussed in our FCC filings. This morning, Let's Lake Partners issued a press release with details of our second quarter 2020 Financial and Operating Results. This document is available on the press release section of our webpage at wlkpartners.com. A replay of today's call will be available beginning two hours after the conclusion of this call. The replay may be accessed by dialing the following numbers. Domestic callers should dial 855-859-2056. International callers may access the replay at 404- 537-3406. The access code is 386-7318. Please note that information reported on this call speaks only as of today, August 6, 2020, and therefore you are advised that time-sensitive information may no longer be accurate as of the time of any replay. I would finally advise you that this conference call is being broadcast live through an internet webcast system that may be accessed on our webpage at wlkpartners.com. Now, I'd like to turn the call over to Albert Chao. Albert?

Thank you, Jeff. Good morning, ladies and gentlemen, and good afternoon to those on the East Coast. Thank you for joining us to discuss our second quarter 2020 results. These are extraordinary and unprecedented times. Before we discuss the quarter, I would like to acknowledge this has been and continues Our first priority is to ensure the health and safety of our employees who continue to work diligently to serve our customers to produce essential products in these uncertain times. Although this pandemic is creating short-term turbulence, our long-term fundamentals and thesis remain strong. Turning to our financials, in this morning's press release reported consolidated net income, including up-cost earnings of $80 million for the second quarter of 2020. Westlake Partners' second quarter net income was $15 million. These solid financial results are a testament to the stability generated from our fixed-margin ethylene sales agreement for 95% of our sales and resulting in consistency of our cash flow stream. Our ethylene facilities ran well and delivered solid financial performance, with slightly lower production in the second quarter. I will note that year-to-date production volumes are only down approximately 2% versus the same period in 2019. The Ethylene Sales Agreement provides for Westlake Chemical, our investment-grade rated sponsor, to purchase 95% of annual plant Thank you, Robert, and good day, ladies and gentlemen.