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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): August 2, 2022

Westlake Corporation
(Exact name of registrant as specified in its charter)

Delaware 001-32260 76-0346924
(State or other jurisdiction
of incorporation)
(Commission File Number) (I.R.S. Employer
Identification No.)

2801 Post Oak Boulevard,  Suite 600
Houston, Texas 77056
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 960-9111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value WLK The New York Stock Exchange
1.625% Senior Notes due 2029 WLK29 The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻ On August 2, 2022, Westlake Corporation, formerly known as Westlake Chemical Corporation (the "Company"), issued a press release announcing its 2022 second quarter results.






Item 2.02. Results of Operations and Financial Condition.
A copy of the press release is furnished with this Current Report as Exhibit 99.1.
The information furnished pursuant to this Current Report, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed by Westlake Corporation under the Securities Act of 1933, as amended, unless specifically identified as being incorporated therein.
Item 7.01. Regulation FD Disclosure.
The Company is holding a conference call on August 2, 2022 to discuss its 2022 second quarter results. Information about the call can be found in the press release furnished with this Current Report as Exhibit 99.1. In addition, the Company made available an investor presentation regarding its 2022 second quarter results, which is furnished with this Current Report as Exhibit 99.2.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are furnished herewith:
99.1    Press release issued on August 2, 2022.
99.2    Investor Presentation.
104    The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.




SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WESTLAKE CHEMICAL CORPORATION
Date: August 2, 2022 By: /S/ ALBERT CHAO
Albert Chao
President and Chief Executive Officer




EX-99.1 2 ex991_20220630earningsrele.htm EX-99.1 Document

EXHIBIT 99.1
WESTLAKE CORPORATION

Contact—(713) 960-9111
Investors—Steve Bender
Media—L. Benjamin Ederington


Westlake Corporation Reports Record Second Quarter 2022 Results
•Record quarterly net sales of $4.5 billion, an increase of 57% vs. second quarter 2021 net sales
•Record quarterly net income of $858 million, an increase of 64% vs. second quarter 2021 net income
•Record quarterly EBITDA of $1.5 billion, an increase of 56% vs. second quarter 2021 EBITDA
HOUSTON--(BUSINESS WIRE)--Westlake Corporation (NYSE: WLK) (the "Company" or "Westlake") today announced record second quarter 2022 results.

SUMMARY FINANCIAL HIGHLIGHTS ($ in millions except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Westlake Corporation
Income from operations $ 1,175 $ 720 $ 2,207 $ 1,066
Net income attributable to Westlake Corporation $ 858 $ 522 $ 1,614 $ 764
Diluted earnings per common share $ 6.60 $ 4.04 $ 12.43 $ 5.91
EBITDA $ 1,456 $ 932 $ 2,756 $ 1,485
EBITDA margin 32% 33% 32% 28%
Performance and Essential Materials ("PEM") Segment
Net external sales $ 3,104 $ 2,146 $ 5,936 $ 3,888
Income from operations $ 965 $ 671 $ 1,844 $ 959
EBITDA $ 1,162 $ 846 $ 2,233 $ 1,304
EBITDA margin 37% 39% 38% 34%
Housing and Infrastructure Products ("HIP") Segment
Net external sales $ 1,379 $ 713 $ 2,603 $ 1,328
Income from operations $ 236 $ 96 $ 421 $ 167
EBITDA $ 310 $ 130 $ 568 $ 235
EBITDA margin 22% 18% 22% 18%
BUSINESS HIGHLIGHTS
In the second quarter of 2022, Westlake achieved record quarterly net sales of $4.5 billion, record quarterly net income of $858 million and record quarterly EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $1.5 billion. The Company benefitted from solid market conditions attributable to a strong demand and pricing dynamics. Westlake realized the full quarter impact of all acquisitions completed since June 2021, contributing to record earnings.

i


Overall prices increased 32% versus the year-ago period with significant gains in both operating segments.

Overall volumes increased 25% versus the prior-year period substantially driven by acquisitions completed over the previous twelve months.
EXECUTIVE COMMENTARY
"We are pleased to deliver another quarter of record results driven by Westlake's strategic market position, which has expanded over the past year with acquisitions that increased our reach into new markets and products while solidifying our ability to capture market value. Our record performance is a result of strong sales volumes across our portfolio of differentiated and specialized product offerings paired with our market position as a global leader in chlorovinyls production continuing to drive the performance of our businesses. With approximately three quarters of our sales in North America, our competitive advantages and focus on disciplined execution enabled us to navigate the impacts of continued logistics constraints, and higher energy and raw material costs. I want to thank all of the Westlake employees for their commitment and dedication in helping us achieve these results. Our Performance and Essential Materials segment continued to benefit from tight market conditions with solid demand for most of our products. We also benefited from strong residential construction and remodeling activity which has pulled cross-segment demand for PVC resin through our value stream into our Housing and Infrastructure Products segment," said Albert Chao, President and Chief Executive Officer.

"We continue to believe in the structural strength of the housing, repair and remodeling markets, and the market position for our Performance and Essential Materials remains on a solid footing. Our Housing and Infrastructure Products business is anchored by a strong presence in the repair and remodeling market, which we believe will remain strong even if new housing starts retreat from their recent highs as global interest rates rise. While the record breaking tailwinds we have experienced in our Performance and Essential Materials segment may be moderating, we believe we will continue to benefit from the high integration within our operations as North American producer's structural cost advantage has expanded with higher global energy costs when compared with our competitors in Europe and Asia. While we are mindful of geopolitical and economic factors which may affect our businesses, we remain confident in the fundamentals of our business and the markets in which we participate," concluded Mr. Chao.
RESULTS
Consolidated Results
For the three months ended June 30, 2022, the Company reported record quarterly net income of $858 million, or $6.60 per share, on record net sales of $4,483 million. The increase in net income of $336 million from the second quarter of 2021 was driven by significantly higher sales prices and margins across our chlorovinyls and housing and infrastructure products businesses, as well as the contributions of the new businesses acquired in the second half of 2021 and early 2022. The strength in the U.S. housing market has driven strong residential construction and repair and remodeling activity, resulting in strong demand and higher pricing for PVC resin, as well as our offerings in the Housing and Infrastructure Products segment. Additionally, the Performance and Essential Materials segment experienced robust demand for chlorine and caustic soda, driving higher prices and margins. Despite rising raw material costs and continuing logistical constraints, margins expanded for the majority of our products with price increases exceeding rising production costs.

Second quarter 2022 net income of $858 million increased by $102 million from first quarter 2022 net income of $756 million. The increase in net income versus the prior quarter was primarily due to higher sales prices for most of our major products, including caustic soda, PVC resin and our building and construction products.

Record EBITDA of $1,456 million for the second quarter of 2022 increased by $524 million compared to second quarter 2021 EBITDA of $932 million. Second quarter 2022 EBITDA increased by $156 million compared to first quarter 2022 EBITDA of $1,300 million. A reconciliation of EBITDA to net income, income from operations and net cash provided by operating activities can be found in the financial schedules at the end of this press release.
ii


Cash and Debt
Net cash provided by operating activities was $913 million for the second quarter of 2022. As of June 30, 2022, cash and cash equivalents were $1,317 million and total debt was $4,868 million. Westlake redeemed $250 million of debt on May 14, 2022. Capital expenditures were $230 million for the second quarter of 2022.

On June 9, 2022, the Company replaced its existing revolving credit facility with a new revolving credit facility in an aggregate principal amount of up to $1.5 billion that matures in June 2027 (the "New Credit Agreement"). The New Credit Agreement bears interest at either (a) Adjusted Term Secured Overnight Financing Rate (as defined in the New Credit Agreement) or (b) Alternate Base Rate (as defined in the New Credit Agreement) plus an applicable margin depending on the rate selected and the credit rating of the Company.
Performance and Essential Materials Segment
Performance and Essential Materials income from operations for the second quarter of 2022 of $965 million increased by $294 million from second quarter 2021 income from operations of $671 million. This increase in income from operations versus the prior-year period was due to higher prices in the chlorovinyls business, higher margins for polyethylene, and the addition of the recently acquired epoxy business. These increases were partially offset by higher global fuel and power costs, higher ethane feedstock costs, and lower sales volumes for PVC resin.

Performance and Essential Materials income from operations for the second quarter of 2022 of $965 million increased by $86 million from first quarter 2022 income from operations of $879 million. This increase in income from operations versus the prior quarter was due to higher prices in our chlorovinyls business as well as the full quarter contribution from the epoxy business. Compared to the prior quarter, the second quarter of 2022 was impacted by higher global fuel and ethane feedstock costs, lower margins and sales volumes for polyethylene, and lower sales volumes for caustic soda PVC resin in Europe.
Housing and Infrastructure Products Segment
For the second quarter of 2022, Housing and Infrastructure Products income from operations of $236 million increased by $140 million from second quarter 2021 income from operations of $96 million. This increase in income from operations versus the prior-year period was the result of continued strength in construction and remodeling activity driving solid demand and higher prices, as well as the contributions of the acquisitions completed in 2021, partially offset by higher raw material and production costs as well as supply chain constraints.

For the second quarter of 2022, Housing and Infrastructure Products income from operations of $236 million increased by $51 million from first quarter 2022 income from operations of $185 million. This increase in income from operations versus the prior quarter was the result of higher prices and volumes.

iii


Forward-Looking Statements
The statements in this release and the related teleconference relating to matters that are not historical facts, including statements regarding favorable future market conditions (such as the repair and remodeling market), our outlook for our business segments, our belief that we will benefit from having high integration and a structural cost-advantage in North America, our ability to create value and grow, our market position, launching sustainable brands, the contribution of recent acquisitions and demand for our products, are forward-looking statements. These forward-looking statements are subject to significant risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: the COVID-19 pandemic and the response thereto; general economic and business conditions; the cyclical nature of the industry; availability, cost and volatility of raw materials and utilities, including natural gas and natural gas liquids from shale production; the price of crude oil; uncertainties associated with the United States and worldwide economies, including those due to global economic and financial conditions; governmental regulatory actions, including environmental regulation and changes in trade policies; political unrest; industry production capacity and operating rates; the supply/demand balance for Westlake's products; competitive products and pricing pressures; access to capital markets; technological developments; the effect and results of litigation and settlements of litigation; operating interruptions; the ability to integrate the recent acquisitions; the diversion of management time on transaction-related issues; and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC in February 2022, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, which was filed with the SEC in May 2022.
Use of Non-GAAP Financial Measures
This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. For this purpose, a non-GAAP financial measure is generally defined by the Securities and Exchange Commission ("SEC") as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that (1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the registrant; or (2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. We report our financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the Company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. A reconciliation of EBITDA to net income, income from operations and net cash provided by operating activities can be found in the financial schedules at the end of this press release.
About Westlake
Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer. For more information, visit the Company's web site at www.westlake.com
Westlake Corporation Conference Call Information:
A conference call to discuss Westlake Corporation's second quarter 2022 results will be held Tuesday, August 2, 2022 at 11:00 AM Eastern Time (10:00 AM Central Time). To access the conference call, dial (646) 307-1963 or (800) 715-9871 for international callers, approximately 10 minutes prior to the scheduled start time and reference passcode 579 06 14.
A replay of the conference call will be available beginning two hours after its conclusion.
The conference call and replay will also be available via webcast at https://edge.media-server.com/mmc/p/e2ywjjui and the earnings release can be obtained via the Company's website at: http://www.westlake.com/investor-relations.
iv



WESTLAKE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions of dollars, except per share data and share amounts)
Net sales $ 4,483  $ 2,859  $ 8,539  $ 5,216 
Cost of sales 3,038  1,987  5,809  3,835 
Gross profit 1,445  872  2,730  1,381 
Selling, general and administrative expenses 220  125  420  261 
Amortization of intangibles 43  27  85  54 
Restructuring, transaction and integration-related costs —  18  — 
Income from operations 1,175  720  2,207  1,066 
Interest expense (44) (36) (90) (69)
Other income, net 17  10  28  22 
Income before income taxes 1,148  694  2,145  1,019 
Provision for income taxes 275  158  508  230 
Net income 873  536  1,637  789 
Net income attributable to noncontrolling interests 15  14  23  25 
Net income attributable to Westlake Corporation $ 858  $ 522  $ 1,614  $ 764 
Earnings per common share attributable to Westlake Corporation:
Basic $ 6.65  $ 4.06  $ 12.52  $ 5.94 
Diluted $ 6.60  $ 4.04  $ 12.43  $ 5.91 
Weighted average common shares outstanding:
Basic 128,341,132  128,142,997  128,206,988  128,049,852 
Diluted 129,341,096  128,877,860  129,134,246  128,681,776 
v



WESTLAKE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
2022
December 31,
2021
(In millions of dollars)
ASSETS
Current assets
Cash and cash equivalents $ 1,317  $ 1,908 
Accounts receivable, net 2,535  1,868 
Inventories 2,021  1,407 
Prepaid expenses and other current assets 140  80 
Total current assets 6,013  5,263 
Property, plant and equipment, net 8,303  7,606 
Other assets, net 6,056  5,590 
Total assets $ 20,372  $ 18,459 
LIABILITIES AND EQUITY
Current liabilities (accounts payable and accrued and other liabilities) $ 2,503  $ 2,075 
Current portion of long-term debt, net 10  269 
Long-term debt, net 4,858  4,911 
Other liabilities 3,027  2,676 
Total liabilities 10,398  9,931 
Total Westlake Corporation stockholders' equity 9,404  7,955 
Noncontrolling interests 570  573 
Total equity 9,974  8,528 
Total liabilities and equity $ 20,372  $ 18,459 
vi



WESTLAKE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
2022 2021
(In millions of dollars)
Cash flows from operating activities
Net income $ 1,637  $ 789 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 521  397 
Deferred income taxes 81  24 
Net loss on disposition and others 52  45 
Other balance sheet changes (678) (373)
Net cash provided by operating activities 1,613  882 
Cash flows from investing activities
Acquisition of business, net of cash acquired (1,163) — 
Additions to investments in unconsolidated subsidiaries (156) (9)
Additions to property, plant and equipment (493) (270)
Other, net 15 
Net cash used for investing activities (1,803) (264)
Cash flows from financing activities
Distributions to noncontrolling interests (24) (22)
Dividends paid (77) (69)
Repayment of revolver and senior notes (250) — 
Repurchase of common stock for treasury (31) — 
Other, net 19 
Net cash used for financing activities (377) (72)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (30) (4)
Net increase (decrease) in cash, cash equivalents and restricted cash (597) 542 
Cash, cash equivalents and restricted cash at beginning of period 1,941  1,337 
Cash, cash equivalents and restricted cash at end of period $ 1,344  $ 1,879 
vii



WESTLAKE CORPORATION
SEGMENT INFORMATION
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(In millions of dollars)
Net external sales
Performance and Essential Materials
Performance Materials $ 2,060  $ 1,541  $ 3,989  $ 2,745 
Essential Materials 1,044  605  1,947  1,143 
Total Performance and Essential Materials 3,104  2,146  5,936  3,888 
Housing and Infrastructure Products
Housing Products 1,116  512  2,088  955 
Infrastructure Products 263  201  515  373 
Total Housing and Infrastructure Products 1,379  713  2,603  1,328 
$ 4,483  $ 2,859  $ 8,539  $ 5,216 
Income (loss) from operations
Performance and Essential Materials $ 965  $ 671  $ 1,844  $ 959 
Housing and Infrastructure Products 236  96  421  167 
Corporate and other (26) (47) (58) (60)
$ 1,175  $ 720  $ 2,207  $ 1,066 
Depreciation and amortization
Performance and Essential Materials $ 192  $ 168  $ 376  $ 329 
Housing and Infrastructure Products 70  32  141  64 
Corporate and other
$ 264  $ 202  $ 521  $ 397 
Other income, net
Performance and Essential Materials $ $ $ 13  $ 16 
Housing and Infrastructure Products
Corporate and other
$ 17  $ 10  $ 28  $ 22 
viii



WESTLAKE CORPORATION
RECONCILIATION OF EBITDA TO NET INCOME, INCOME FROM OPERATIONS AND
NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
Three Months Ended March 31, Three Months Ended June 30, Six Months Ended June 30,
2022 2022 2021 2022 2021
(In millions of dollars)
Net cash provided by operating activities
$ 700  $ 913  $ 617  $ 1,613  $ 882 
Changes in operating assets and liabilities and other 106  (1) (67) 105  (69)
Deferred income taxes (42) (39) (14) (81) (24)
Net income 764  873  536  1,637  789 
Less:
Other income, net
11  17  10  28  22 
Interest expense
(46) (44) (36) (90) (69)
Provision for income taxes (233) (275) (158) (508) (230)
Income from operations 1,032  1,175  720  2,207  1,066 
Add:
Depreciation and amortization
257  264  202  521  397 
Other income, net
11  17  10  28  22 
EBITDA $ 1,300  $ 1,456  $ 932  $ 2,756  $ 1,485 
ix



WESTLAKE CORPORATION
RECONCILIATION OF SEGMENT EBITDA TO INCOME FROM OPERATIONS
(Unaudited)
Three Months Ended March 31, Three Months Ended June 30, Six Months Ended June 30,
2022 2022 2021 2022 2021
(In millions of dollars)
Performance and Essential Materials Segment
Income from operations $ 879  $ 965  $ 671  $ 1,844  $ 959 
Add:
Depreciation and amortization 184  192  168  376  329 
Other income, net 13  16 
EBITDA $ 1,071  $ 1,162  $ 846  $ 2,233  $ 1,304 

Three Months Ended March 31, Three Months Ended June 30, Six Months Ended June 30,
2022 2022 2021 2022 2021
(In millions of dollars)
Housing and Infrastructure Products Segment
Income from operations $ 185  $ 236  $ 96  $ 421  $ 167 
Add:
Depreciation and amortization 71 70  32  141  64 
Other income, net
EBITDA $ 258  $ 310  $ 130  $ 568  $ 235 


















x



WESTLAKE CORPORATION
SUPPLEMENTAL INFORMATION
Product Sales Price and Volume Variance by Operating Segments
Second Quarter 2022 vs. Second Quarter 2021 Second Quarter 2022 vs. First Quarter 2022
Average
Sales Price
Volume Average
Sales Price
Volume
Performance and Essential Materials +27.1  % +17.5  % +7.5  % +2.1  %
Housing and Infrastructure Products +46.1  % +47.3  % +5.1  % +7.6  %
Company +31.8  % +25.0  % +6.7  % +3.8  %
We are no longer providing average quarterly industry prices and housing starts data.
xi
EX-99.2 3 ex992_20220630wlkearning.htm EX-99.2 ex992_20220630wlkearning
Q2 2022 Earnings Presentation


 
2 Westlake Delivers Record Quarter  Record quarterly results in 2Q 2022:  Record quarterly net sales of $4.5 billion, an increase of 57% vs. second quarter 2021 net sales  Record quarterly net income of $858 million, an increase of 64% vs. second quarter 2021 net income  Record quarterly EBITDA of $1.5 billion, an increase of 56% vs. second quarter 2021 EBITDA  Performance driven by strong demand for Westlake’s differentiated and specialized product offerings bolstered by our global leading market positions, global cost advantage, and recent acquisitions  Westlake is well positioned with over 75% of its production based in North America benefiting from a significant and durable cost advantage relative to global competitors  Strong balance sheet with $250 million of debt retired in Q2 2022 and extension of fully undrawn 5-year revolving credit facility increased to $1.5 billion from $1.0 billion; TTM Net Debt to EBITDA of 0.74x Business Highlights


 
3 Westlake Corporation Performance Second Quarter 2022 (1) Reconciliations of EBITDA, Housing and Infrastructure Products EBITDA, Performance and Essential Materials EBITDA and Corporate EBITDA to the applicable GAAP measures can be found on pages 13 and 14 + Favorable market pricing offset inflationary cost pressure + Westlake’s leading market positions, globally advantaged low cost raw materials and vertical integration captures strong margins across the integrated value chain – Impacts of raw material and supply chain disruptions impacted production volumes A Record Quarter for Westlake Westlake delivers differentiated, specialty and branded products and solutions ($ in millions) 2Q 2022 1Q 2022 2Q 2022 vs. 1Q 2022 2Q 2021 2Q 2022 vs. 2Q 2021 YTD 2022 YTD 2021 YTD 2022 vs. YTD 2021 Sales $4,483 $4,056 11% $2,859 57% $8,539 $5,216 64% Operating Income $1,175 $1,032 14% $720 63% $2,207 $1,066 107% Performance and Essential Materials EBITDA $1,162 $1,071 8% $846 37% $2,233 $1,304 71% Housing and Infrastructure Products EBITDA $310 $258 20% $130 138% $568 $235 142% Corporate EBITDA ($16) ($29) - ($44) - ($45) ($54) - EBITDA(1) $1,456 $1,300 12% $932 56% $2,756 $1,485 86%


 
4 Our disclosure to SASB industry standard and Global Reporting Initiative (GRI) framework fully conforms and is on our website Westlake is monitoring the SEC guidelines to be in conformance when phased in Sustainability Update We understand the importance of reducing the environmental impacts of our feedstocks, production and usage, and are developing exciting innovations, together with our customers, to meet their objectives while also reducing environmental impacts Nearly 95% of our products are used for durable, long-lasting goods


 
5 Operating Excellence Drives Bottom Line Results and Leads Peers in Returns on Capital Committed to Operating Excellence Allocate Capital Strong capital stewardship supported by a long history of applying a shareholder oriented economic value added (EVA) approach Created “One Westlake” brand including products that meet customer needs in an environmentally sustainable way Sustainability Focus Empowering employees by enabling an ownership mentality and putting safety first Empower Employees Continuously improving our operations through investment in innovation and technology Continuous Improvement Driving growth through attractive organic and inorganic opportunities across both segments Accelerate Growth


 
6 Segment Update


 
7 Performance and Essential Materials (“PEM”) Segment Performance + Strong market conditions across chlorovinyls supported by leading global market position and globally advantaged cost position + Polyethylene benefitted from the continuing strong demand in industrial and consumer packaging markets + First full quarter of Epoxy business contributed to our earnings with solid sales prices and volumes – Higher ethane, natural gas and other raw material costs (1) Reconciliations of PEM EBITDA to the applicable GAAP measure can be found on page 14 PEM Segment 2Q 2022 vs. 1Q 2022 Average Sales Price Volume +7.5% +2.1% PEM Segment 2Q 2022 vs. 2Q 2021 Average Sales Price Volume +27.1% +17.5% ($ in millions) 2Q 2022 1Q 2022 2Q 2022 vs. 1Q 2022 2Q 2021 2Q 2022 vs. 2Q 2021 YTD 2022 YTD 2021 YTD 2022 vs. YTD 2021 Performance Materials Sales $2,060 $1,929 7% $1,541 34% $3,989 $2,745 45% Essential Materials Sales $1,044 $903 16% $605 73% $1,947 $1,143 70% Total PEM Sales $3,104 $2,832 10% $2,146 45% $5,936 $3,888 53% Operating Income $965 $879 10% $671 44% $1,844 $959 92% EBITDA(1) $1,162 $1,071 8% $846 37% $2,233 $1,304 71% EBITDA Margin 37% 38% - 39% - 38% 34% -


 
8 Increasing mix of specialty, differentiated, and downstream product offerings with leading market positions enhances margin and competitive positioning Over 75% of production capacity concentrated in North America provides significant and durable cost advantage relative to global competitors Epoxy extends Westlake’s end-market exposure to higher growth sustainability- oriented markets such as wind energy as well as automotive and aerospace light weighting Well positioned to benefit from secular demand driven by increasing product requirements for formulated, differentiated and specialty products in housing, packaging, wind energy, aerospace and automotive Performance and Essential Materials Update 1 2 4 5 Expect improved demand growth in Asia as economic activity picks-up from pandemic related lockdowns in the first half of 2022 to improve global supply / demand dynamics 3


 
9 Housing and Infrastructure Products (“HIP”) Segment Performance (1) Reconciliations of HIP EBITDA to the applicable GAAP measure can be found on page 14 + Strong repair and remodeling and new residential construction activity in North America + Residential housing has driven demand for our higher-margin offerings in building products, pipe and fittings as well as building wire and cable compound products + 2Q 2022 benefited from 2nd half 2021 acquisitions and associated integration activities HIP Segment 2Q 2022 vs. 1Q 2022 Average Sales Price Volume +5.1% +7.6% HIP Segment 2Q 2022 vs. 2Q 2021 Average Sales Price Volume +46.1% +47.3% ($ in millions) 2Q 2022 1Q 2022 2Q 2022 vs. 1Q 2022 2Q 2021 2Q 2022 vs. 2Q 2021 YTD 2022 YTD 2021 YTD 2022 vs. YTD 2021 Housing Products Sales $1,116 $972 15% $512 118% $2,088 $955 119% Infrastructure Products Sales $263 $252 4% $201 31% $515 $373 38% Total HIP Sales $1,379 $1,224 13% $713 93% $2,603 $1,328 96% Operating Income $236 $185 28% $96 146% $421 $167 152% EBITDA(1) $310 $258 20% $130 138% $568 $235 142% EBITDA Margin 22% 21% - 18% - 22% 18% -


 
10 Affordability and rising mortgage rates are slowing new construction activity yet the undersupplied hosing market continues to support new construction activity at more normalized levels Strong 2nd quarter demand for building products driven by both new construction and repair and remodel (R&R) markets R&R activity expected to remain strong driven by high number of homes in prime remodel age, healthy home equity levels, low inventory of “trade-up” homes, backlog of projects, and lower historical volatility in R&R Infrastructure Investment and Jobs Act beginning to drive demand as states and municipalities develop and start construction of projects to address our nations long neglected infrastructure needs Housing and Infrastructure Products Update 1 3 4 5 Longer-term fundamentals for housing strength remain intact related to recent decade plus of under-building, increasingly favorable demographics, and prevalence of remote work 2


 
11 Financial Reconciliations


 
12 Consolidated Statements of Operations Three months ended March 31, Three months ended June 30, Six months ended June 30, 2022 2022 2021 2022 2021 (In millions of dollars, except per share data) Performance and Essential Materials Sales $ 2,832 $ 3,104 $ 2,146 $ 5,936 $ 3,888 Housing and Infrastructure Products Sales 1,224 1,379 713 2,603 1,328 Net sales 4,056 4,483 2,859 8,539 5,216 Cost of sales 2,771 3,038 1,987 5,809 3,835 Gross profit 1,285 1,445 872 2,730 1,381 Selling, general and administrative expenses 200 220 125 420 261 Amortization of intangibles 42 43 27 85 54 Restructuring, transaction and integration-related costs 11 7 — 18 — Income from operations 1,032 1,175 720 2,207 1,066 Interest expense (46) (44) (36) (90) (69) Other income, net 11 17 10 28 22 Income before income taxes 997 1,148 694 2,145 1,019 Provision for income taxes 233 275 158 508 230 Net income 764 873 536 1,637 789 Net income attributable to noncontrolling interests 8 15 14 23 25 Net income attributable to Westlake Corporation $ 756 $ 858 $ 522 $ 1,614 $ 764 Earnings per common share attributable to Westlake Corporation: Basic $ 5.87 $ 6.65 $ 4.06 $ 12.52 $ 5.94 Diluted $ 5.83 $ 6.60 $ 4.04 $ 12.43 $ 5.91


 
13 Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Three months ended March 31, Three months ended June 30, Six months ended June 30, 2022 2022 2021 2022 2021 (In millions of dollars) Net cash provided by operating activities $ 700 $ 913 $ 617 $ 1,613 $ 882 Changes in operating assets and liabilities and other 106 (1) (67) 105 (69) Deferred income taxes (42) (39) (14) (81) (24) Net income 764 873 536 1,637 789 Less: Other income, net 11 17 10 28 22 Interest expense (46) (44) (36) (90) (69) Provision for income taxes (233) (275) (158) (508) (230) Income from operations 1032 1,175 720 2,207 1066 Add: Depreciation and amortization 257 264 202 521 397 Other income, net 11 17 10 28 22 EBITDA $ 1,300 $ 1,456 $ 932 $ 2,756 $ 1,485


 
14 Reconciliation of HIP, PEM and Corporate EBITDA to Applicable Operating Income (Loss) Three months ended March 31, Three months ended June 30, Six months ended June 30, 2022 2022 2021 2022 2021 (In millions of dollars) Performance and Essential Materials EBITDA $ 1,071 $ 1,162 $ 846 $ 2,233 $ 1,304 Less: Depreciation and Amortization 184 192 168 376 329 Other Income (Expenses) 8 5 7 13 16 Performance and Essential Materials Operating Income (Loss) 879 965 671 1,844 959 Housing and Infrastructure Products EBITDA 258 310 130 568 235 Less: Depreciation and Amortization 71 70 32 141 64 Other Income (Expenses) 2 4 2 6 4 Housing and Infrastructure Products Operating Income (Loss) 185 236 96 421 167 Corporate EBITDA (29) (16) (44) (45) (54) Less: Depreciation and Amortization 2 2 2 4 4 Other Income (Expenses) 1 8 1 9 2 Corporate Operating Income (Loss) (32) (26) (47) (58) (60) Performance and Essential Materials Operating Income (Loss) 879 965 671 1,844 959 Housing and Infrastructure Products Operating Income (Loss) 185 236 96 421 167 Corporate Operating Income (Loss) (32) (26) (47) (58) (60) Total Operating Income (Loss) $ 1,032 $ 1,175 $ 720 $ 2,207 $ 1,066


 
15 We are no longer providing average quarterly industry prices and housing starts data Quarterly Industry Data


 
16 Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding creating value for our shareholders, pricing and demand for our products, continued recovery in key end markets, industry outlook for both of our segments, our cost control and efficiency efforts, our ability to deliver end-use building products to consumers, our ability to capture integrated chain margin, our development of additional green products in the future, our sustainability goals and commitments and our reduction in carbon impact. Actual results may differ materially depending on factors, including, but not limited to, the following: the effects of our recently completed acquisitions, including our future financial condition, results of operations, strategy and plans; and expected synergies and other benefits from the acquisitions and our ability to realize such synergies and other benefits; general economic and business conditions; the cyclical nature of the chemical and building products industries; the availability, cost and volatility of raw materials and energy; uncertainties associated with the United States, European and worldwide economies, including those due to political tensions and unrest in the Middle East and elsewhere including the conflict between Russia and Ukraine; uncertainties associated with pandemic infectious diseases, particularly COVID-19; current and potential governmental regulatory actions in the United States and 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, weather-related incidents, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, spills and releases and other environmental risks); changes in laws or regulations, including trade policies; technological developments; information systems failures and cyber attacks; foreign currency exchange risks; our ability to implement our business strategies; creditworthiness of our customers; 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. Investor Relations Contacts Westlake Corporation 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