Filed by Lyondell Chemical Company
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Millennium Chemicals Inc.
Commission File No.: 001-12091
Additional Information:
On April 26, 2004, Lyondell Chemical Company (“Lyondell”) filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus regarding the proposed transaction between Lyondell and Millennium Chemicals Inc. (“Millennium”). Investors and security holders are urged to read that document and any other relevant documents filed or that will be filed with the SEC, including the definitive joint proxy statement/prospectus that will be part of the definitive registration statement, as they become available, because they contain, or will contain, important information. Investors and security holders may obtain a free copy of the definitive joint proxy statement/prospectus (when it becomes available) and other documents filed by Lyondell and Millennium with the SEC at the SEC’s web site at www.sec.gov. The definitive joint proxy statement/prospectus (when it becomes available) and the other documents filed by Lyondell may also be obtained free from Lyondell by calling Lyondell’s Investor Relations department at (713) 309-4590.
The respective executive officers and directors of Lyondell and Millennium and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Lyondell’s executive officers and directors is available in the proxy statement filed with the SEC by Lyondell on March 16, 2004, and information regarding Millennium’s directors and its executive officers is available in Millennium’s Annual Report on Form 10-K/A for the year ended December 31, 2003, which was filed with the SEC on April 27, 2004. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the definitive joint proxy statement/prospectus and other relevant materials filed with the SEC, as they become available.
Forward-Looking Statements:
These materials contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the proposed transaction between Lyondell and Millennium, including financial and operating results, Lyondell’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Lyondell’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. The following factors, among others, could affect the proposed transaction and the anticipated results: approval by Lyondell’s and Millennium’s respective shareholders, amendments to Lyondell’s and Millennium’s respective credit facilities, the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Act, the receipt of other competition law clearances and the parties’ ability to achieve expected synergies in the transaction within the expected timeframes or at all. Additional factors that could cause Lyondell’s results to differ materially from those described in the forward-looking statements can be found in Lyondell’s Annual Report on Form 10-K for the year ended December 31, 2003, which was filed with the SEC on March 12, 2004, and Lyondell’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, which was filed with the SEC on May 7, 2004.
This filing contains slides used by Lyondell in a presentation to analysts during the Bear Stearns 13th Annual Global Credit Conference on May 18, 2004. This information is being filed pursuant to Rule 425 under the Securities Act of 1933.
# # #
Solid Strategy, Confident Execution
Bear Stearns 13th Annual Global Credit Conference
May 18, 2004
Kevin DeNicola
Sr. Vice President & Chief Financial Officer
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the benefits of the proposed transaction between Lyondell Chemical Company (“Lyondell”) and Millennium Chemicals Inc. (“Millennium”), including financial and operating results, Lyondell’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Lyondell’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. The following factors, among others, could affect the proposed transaction and the anticipated results: approval by Lyondell’s and Millennium’s respective shareholders, amendments to Lyondell’s and Millennium’s respective credit facilities, the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Act, the receipt of other competition law clearances and the parties’ ability to achieve expected synergies in the transaction within the expected timeframes or at all. Additional factors that could cause Lyondell’s results to differ materially from those described in the forward-looking statements can be found in Lyondell’s Annual Report on Form 10-K for the year ended December 31, 2003, which was filed with the Securities and Exchange Commission (the “SEC”) on March 12, 2004, and Lyondell’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, which was filed with the SEC on May 7, 2004.
In addition, on April 26, 2004, Lyondell filed with the SEC a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus regarding the proposed transaction between Lyondell and Millennium. Investors and security holders are urged to read that document and any other relevant documents filed or that will be filed with the SEC, including the definitive joint proxy statement/prospectus that will be part of the definitive registration statement, as they become available, because they contain, or will contain, important information. Investors and security holders may obtain a free copy of the definitive joint proxy statement/prospectus (when it becomes available) and other documents filed by Lyondell and Millennium with the SEC at the SEC’s web site at www.sec.gov. The definitive joint proxy statement/prospectus (when it becomes available) and the other documents filed by Lyondell may also be obtained free from Lyondell by calling Lyondell’s Investor Relations department at (713) 309-4590.
The respective executive officers and directors of Lyondell and Millennium and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Lyondell’s executive officers and directors is available in the proxy statement filed with the SEC by Lyondell on March 16, 2004, and information regarding Millennium’s directors and its executive officers is available in Millennium’s Annual Report on Form 10-K/A for the year ended December 31, 2003, which was filed with the SEC on April 27, 2004. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the definitive joint proxy statement/prospectus and other relevant materials filed with the SEC, as they become available.
Reconciliations of l measures to non-GAAP GAAP financia l measures are provided atfinancia
2
Lyondell Continues To Build A Balanced Portfolio
Lyondell
IC&D
2003 Sales: $3,801 MM 2003 EBITDA: $245 MM
Growth & International Presence
– A leading global producer of PO and derivatives
– Process technology strength
LCR
2003 Sales: $4,162 MM 2003 EBITDA: $377 MM
Cash Generation
– Unique capability to refine heavy crude oils
– Contractually stable business; strong cash flow generator
Equistar
2003 Sales: $6,545 MM 2003 EBITDA: $175 MM
Commodity Leverage
– A leading North American producer of ethylene, propylene and polyethylene
– Low cost position based on feedstock flexibility and scale
Millennium(1)
2003 Sales: $1,687 MM
International Presence and Steady Performance
– Leading product positions in TiO2 and Acetyls
– Ethylene integration
(1) Pending close of announced Millennium transaction
3
3rd Largest Chemical Company in North America (Post-Transaction)
2003 Sales ($ in millions)
4
Overview of Millennium
Millennium
2003 Sales: $1,687MM
29.5%
Equistar
2003 Sales: $6,545MM
100%
TiO2
2003 Sales: $1,172MM
Second largest producer in the world
Largest producer of titanium tetrachloride in N. America & Europe
Other products include zircon, zirconia, silica gel and cadmium-based pigments
Acetyls
2003 Sales: $421MM
Second largest producer of vinyl acetate monomers (VAM) and acetic in North America
Produces methanol through 85% interest in La Porte methanol company
Specialty Chemicals
2003 Sales: $94MM
Produces terpene-based fragrance and flavor chemicals
5
Strategic Benefits Of The Transaction
Consolidated ownership of Equistar
Forms the third-largest independent publicly traded chemical company in North America
Cost savings and synergies provide value to the combined shareholders
Adds breadth / depth to the portfolio
• Market leadership positions
• Broader geographic reach
• Further portfolio diversification – TiO2
• Product integration—Acetyls
Simplifies Lyondell
6
The Current Lyondell Product Portfolio
IC&D
– Propylene Oxide (PO) and Derivatives
– Co-products
- Styrene
- MTBE
– TDI
LCR
– Gasoline
– Heating oil
– Jet fuel
Equistar
– Ethylene
– Ethylene Derivatives
- Polyethylene
- Ethylene oxygenates
7
Leading Product Positions Create Significant Earnings Leverage
Pre-Tax Leverage
Product Annual Capacity Capacity Position (1) ( 1¢/unit)
Propylene Oxide (lbs) (2) 4.5 billion 1st in North America $23MM
Intermediate 1st in the world
Chemicals and Styrene Monomer (lbs) 5.0 billion 1st in North America $21MM
4th in the world
Derivatives MTBE (bbl/day) 58,500 1st in North America $9MM (4)
Ethylene (lbs) 11.6 billion 2nd in North America $116MM
5th in the world
Equistar Propylene (lbs) (3) 5.0 billion 2nd in North America $50MM
7th in the world
Polyethylene (lbs) 5.7 billion 3rd in North America $57MM
4th in the world
TiO2 (lbs) 1.5 billion 3rd in North America $15 MM
2nd in World
Millennium Acetyls (lbs)
- Acetic Acid 1.2 billion 2nd in North America $12 MM
3rd in World
- Vinyl Acetate Monomer 0.9 billion 2nd in North America $9 MM
3rd in World
1 Source: Capacities as of January 2004, CMAI, 2 Includes 100% of joint venture volumes 3 Does not include material or production refinery-grade he product flexibility from ‘s facility
4 Based ¢/galon 1
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Investing Based on Differential Technology –PO & Derivatives
• Growth rate: 4-5%/yr
• End Use:
• Polyols: seating, mattresses, insulation, coatings
• PG: deicers, boat hulls, coatings, countertops/showers, personal care
• Ethers: coatings, electronics
• BDO: Spandex, electrical & auto parts
• Basis of differentiation:
• Proprietary process technology/cost
• Global position
• Derivative integration
2003 PO Capacity Share
LYO & Partners
Dow
Shell/BASF
Other
Chlorine-Based Technology
Co-Product Technology
LYO & Partners
PO Technology Source
Source: SRI, Tecnon, Lyondell estimates
9
There Are Very Few Future Propylene Oxide Capacity Additions
Source: SRI / Lyondell
10
There are Three Principal Propylene Oxide Technologies. Lyondell Practices Two Co-Product Technologies
Technology
PO & Styrene (POSM)
PO & MTBE (PO / MTBE)
Chlorine Based
Principal Participants
Lyondell, Shell
Lyondell, Huntsman
Dow, Asian Plants
11
The North American MTBE Industry Has Been Adjusting To The Regulatory Changes
2002 VS. Q1 2004
M B/D
U.S. Demand (130)
U.S. Supply / Capacity
— U.S. Dehydro Capacity (70)
— Refinery / Olefins Capacity (20)
— Import / Export (40)
(130)
Source: EIA, Lyondell Estimates
12
U.S. Spot MTBE Raw Material Margins 1997—Present
Basis: Platts USGC MTBE, butane & MeOH
13
Steps Toward Increased IC&D Cash Flow
Potential Cash Improvement From 2003
Complete PO-11 Capital Spend
Convert PO/SM
Purchases on Production
1999 PO / TDI
SM Margins
MTBE Resolution
Sell-out at 1995 PO / TDI / SM Margins
14
LYONDELL-CITGO Refining Is Structured To Be Largely Independent of Crude Oil Costs and Refining Margins
JV with CITGO
CITGO 100% Owned by PDVSA
268 M B/D Heavy Crude Refinery Located in Houston 230 M B/D contract with PDVSA
Deemed Margin
Crude Price Based on Product Price Less Cost Formula Balance of Crude Purchased in the Market
15
LCR Important Cash Generator – Operating Reliability and Crude Deliveries Drive Performance
1 4Q01: Scheduled maintenance turnaround
16
Equistar is a Leading Ethylene Producer
#2 in North America
Competitive position based on feedstock flexibility
Top 5 North America
40%
Exxon
7%
Union Carbide
7%
Nova
8%
Dow
9%
Shell
9%
1991
64%
Nova
8%
ChevronPhillips
10%
ExxonMobil
13%
Equistar
15%
Dow/Carbide
18%
2003
Source: CMAI
17
North American Supply/Demand Balance Is On Track To Improve Significantly
Ethylene Supply/Demand Balance – North America
Source: CMAI / Equistar (September/2003)
18
Effective Ethylene Operating Rates Are Forecast To Be In The Low To Mid 90% Range
U.S. Ethylene Supply/Demand
CMAI-4/04
19
Liquid Cracking Provides an Advantage vs. Ethane Raw Materials
Equistar Capability
NGL 37%
Liquid 63%
N. American Industry (ex. Equistar)
Liquid 25%
NGL 75%
Liquid Cracking Variable Cost Advantage vs. NGL
Ethane—Light Naphtha Cost of Ethylene Spread
Source: ChemData
Source: CMAI and Lyondell
20
It Takes Time to Move Raw Material Increases Through The Supply Chain: $3 Per Barrel Impact At Equistar
Hours Days Weeks Months
Naphtha Impact
NGLs Follow
Petro -chemicals Rise
Fuel Co-Products Rise
Polymers/ Derivatives Rise
21
Co-Product Prices Have Increased More Rapidly Than Raw Material Costs
Crude Oil-Based Raw Materials Naphtha Cracking Product Yield
Fuel Gas / Oil
Ethylene
Propylene
Butadiene
Butylenes
Benzene
Gasoline
Unit Price / Value, ¢ / Unit % Change
Dec. 2003 Apr. 2004
Raw Materials
- Lt. Naphtha gal 79 87 10
Ethylene lbs 29.5 32.5 10
Co-Products
- Propylene lbs 22.5 32.25 43
- Butadiene lbs 29 29 —
- Butylene lbs 15 20 33
- Benzene gal 155 235 52
- Gasoline gal 85 115 35
- Fuel Gas/Oil MMBTU 490 544 11
Source: CMAI, Lyondell Estimates
22
In Summary, The Business Areas Are Positioned For Significant Improvement
Improving Global Economy
Significant Volumetric Leverage
Tightening Supply/Demand Outlook In Key Products
Differential Positions:
– POSM Technology
– LCR Crude Contract
– Liquid Crackers
23
Results Have Started to Reflect Improved Conditions
Quarterly EBITDA
24
Enterprise Earnings Capability Far Exceeds Recent Trough Results – Current Ownership
Cycle EBITDA Potential
Recession/ Trough
Pre-Recession
Peak
2003 Proportional Interest, Dividends & Capital
2003 1999/2000 1995 Margins 1988 Margins Margins 1 LCR IC&D Equistar
1 Chem Data/CMAI industry margins conditions for IC&D and Equistar products (ex. MTBE) applied to current capacities and ownership, LCR 2003 EBITDA
25
Our Financial Strategy is Focused and Unchanged
Maintain Sufficient Liquidity
Repay Debt
26
We Have Maintained Significant Liquidity
($ in millions)
December 31, 2002 March 31, 2004
Lyondell Equistar Lyondell Equistar
Cash and ST Investments $ 330 $ 27 $ 471 $ 111
Facility Availability $ 301 $ 434 $ 298 $ 384
Total Liquidity $ 631 $ 461 $ 769 $ 495
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No Significant Near-Term Debt Maturities
Debt Maturities(1),(2)
Lyondell 9 3/8% ACC Debenture
Lyondell 9 1/2% Sr. Secured Notes Series C Equistar 10 1/8% Senior Notes
Lyondell 9 5/8% Sr. Secured Notes Series A Equistar 11.2% Medium Term Notes Millennium 7% Senior Unsecured Notes due 2006
Lyondell 9 7/8% Sr. Secured Notes Series B Equistar 6 1/2% Notes
Millennium 9 1/4% Senior Unsecured Notes due 2008
(1) Lyondell: Does not include $350MM Revolving Credit Facility, which expires in 2005, or $100MM Accounts Receivable Sales Facility
(2) Equistar: Does not include $250MM Inventory-Based Revolving Credit Facility or $450MM Accounts Receivable Sales Facility
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…However, There is a Significant Amount of Accessible Debt
Accessible Debt(1)
Lyondell 9 3/8% ACC Debenture
Lyondell 9 1/2% Sr. Secured Notes Series C Equistar 6 1/2% Notes Millennium 7% Senior Unsecured Notes due 2006
Lyondell 9 5/8% Sr. Secured Notes Series A Lyondell 11 1/8% Sr. Secured Notes Series D Equistar 10 1/8% Senior Notes Millennium 9 1/4% Senior Unsecured Notes due 2008
Lyondell 9 7/8% Sr. Secured Notes Series B Equistar 11.2% Medium Term Notes Equistar 10 5/8% Senior Notes
(1) Accessible debt is shown for the first year in which it is callable and does not include subordinated debt. Debt with make-whole provisions is shown at maturity, including the $900MM Senior Secured Notes Series A due 2007 (Lyondell) and $700MM Senior Notes due 2008 (Equistar)
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After the Millennium Transaction Lyondell Will Ultimately Have Increased Access to Equistar Distributions
Flow of $1 of Equistar Distributions *
Lyondell
Negative Basket—0¢ Positive Basket—14.75¢
70.5¢
Millennium
Constraints
EBITDA / Interest Ratio Restricted Payments Basket
29.5¢
Equistar
Constraints
Penalty Interest
* Includes simplifying assumptions such as ignoring timing, tax effects, etc.
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De-leveraging Will Benefit All Stakeholders
Impact of Lyondell debt reduction at constant capitalization1
Debt Reduction
$2 Billion $3 Billion
(w/o MCH) (with MCH)
Debt to Capitalization 40% 45%
Avoided Interest Expense $ 200MM / Year $ 300MM / Year
Earnings Improvement 75¢ / share 80¢ / share
Share Price Improvement at 2 3
$11.50 / share $12.25 / share
Constant Capitalization
1 Capitalization = debt + book value of equity + minority interest
2 Assumes 175MM shares outstanding
3 Assumes 245MM shares outstanding
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LYONDELL CHEMICAL COMPANY
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
For the Twelve Months Ended December 31, 2003
(Millions of dollars)
Lyondell net loss $ (302)
Add: Benefit from income tax (179)
Interest expense, net 392
Depreciation and amortization 250
Loss from equity investment in Equistar 228
Income from equity investment in LCR (144)
Lyondell EBITDA $ 245
Equistar net loss $ (339)
Add: Depreciation and amortization 307
Interest expense, net 207
Equistar EBITDA $ 175
Proportionate Share—70.5% $ 123
LCR net income $ 228
Add: Depreciation and amortization 113
Interest expense, net 36
LCR EBITDA $ 377
Proportionate Share—58.75% $ 222
Lyondell and Proportionate Share of Equity Investments—EBITDA
Lyondell EBITDA $ 245
70.5% of Equistar EBITDA 123
58.75% of LCR EBITDA 222
Lyondell and Proportionate Share of Equity Investments $ 590
32
Lyondell Chemical Company
Reconciliation of Lyondell and Proportionate Share of Ventures’ Interest, Capital Expenditures and Dividends For the Twelve Months Ended December 31, 2003
(Millions of dollars)
Lyondell IC&D
Interest expense, net $ 392
Capital expenditures (a) 50
Dividends 116
Total $ 558
Equistar
Interest expense, net 207
Capital expenditures 106
Total $ 313
Proportionate Share—70.5% $ 221
LCR
Interest expense, net 36
Capital expenditures 46
Total $ 82
Proportionate Share—58.75% $ 48
Lyondell and Proportionate Share of Equity Investments -
Interest, Capital Expenditures and Dividends
Lyondell IC&D $ 558
75% of Equistar 221
58.75% of LCR 48
Lyondell and Proportionate Share of Equity Investments
Interest, Capital Expenditures and Dividends $ 827
(a) Excludes contributions to PO-11 and U.S. PO joint ventures and the purchase of the BDO-2 facility.
33
Reconciliation of Net Loss to EBITDA
For the Year Ended December 31, 2003
(Millions of dollars)
Millennium net loss $ (184)
Add: Cumulative effect of accounting change 1
Benefit from income tax (65)
Interest expense, net 92
Depreciation and amortization 113
Loss from equity investment in Equistar 100
Millennium EBITDA $ 57 *
Add: Impairment costs $ 103
Closure costs 18
Minority interest 5
EBITDA before impairment, closure costs and minority interest $ 183
* Includes asset impairmentge of $103, reo office and plant closure costs
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LYONDELL CHEMICAL COMPANY
RECONCILIATION OF LCR NET INCOME (LOSS) TO EBITDA
(Millions of dollars)
1Q 2000 2Q 2000 3Q 2000 4Q 2000 1Q 2001 2Q 2001 3Q 2001 (a) 4Q 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 (b) Q1 2003 Q2 2003 Q3 2003 Q4 2003 1Q 2004
Net income (loss) $ 22 $ (22) $ 66 $ 62 $ 42 $ 66 $ 78 $ 17 $ 41 $ 63 $ 50 $ 59 $ 28 $ 58 $ 69 $ 73 $ 91
Add: Depreciation and amortization 26 30 28 28 28 27 26 27 29 30 28 29 28 29 28 28 30
Interest expense, net 12 16 16 17 16 15 10 10 8 7 8 9 10 9 8 9 10
LCR EBITDA $ 60 $ 24 $ 110 $ 107 $ 86 $ 108 $ 114 $ 54 $ 78 $ 100 $ 86 $ 97 $ 66 $ 96 $ 105 $ 110 $ 131
(a) EBITDA for LCR for the three months ended September 30, 2001 was originally reported as $116 million and was restated to include extraordinary charges related to early debt retirement, currently reflected in other expense, net.
(b) EBITDA for the three months ended December 31, 2002 was originally reported as $98 million and was restated to include extraordinary charges related to early debt retirement, currently reflected in other expense, net.
RECONCILIATION OF LCR NET CASH DISTRIBUTIONS
1Q 2000 2Q 2000 3Q 2000 4Q 2000 1Q 2001 2Q 2001 3Q 2001 4Q 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 1Q 2004
Investment in LCR
at beginning of quarter $ 52 $ 35 $ 32 $ 58 $ 20 $ 27 $ 44 $ 33 $ 29 $ 54 $ 71 $ 54 $ 68 $ 20 $ 1 $ (14) 3
Add: Equity in income (loss) of LCR 16 (10) 42 38 27 41 48 13 27 39 32 37 19 37 43 45 56
Other comprehensive loss
due to minimum pension liability - - - - - - - - - - - (16) - - - 4 -
Accrued interest converted to capital - - - - - - - - - - - - - 10 - - -
Contribution payable to LCR - - - - - - - - - - - - - 3 (3) - -
Less: Investment in LCR at end of quarter (35) (32) (58) (20) (27) (44) (33) (29) (54) (71) (54) (68) (20) (1) 14 (3) (5)
Net cash distributions from
(contributions to) LCR $ 33 $ (7) $ 16 $ 76 $ 20 $ 24 $ 59 $ 17 $ 2 $ 22 $ 49 $ 7 $ 67 $ 69 $ 55 $ 32 $ 54
Distributions from LCR $ 33 $ - $ 24 $ 86 $ 22 $ 30 $ 79 $ 34 $ 24 $ 27 $ 63 $ 12 $ 88 $ 69 $ 58 $ 38 $ 63
Contributions to LCR - (7) (8) (10) (2) (6) (20) (17) (22) (5) (14) (5) (21) - (3) (6) (9)
Net cash distributions from
(contributions to) LCR $ 33 $ (7) $ 16 $ 76 $ 20 $ 24 $ 59 $ 17 $ 2 $ 22 $ 49 $ 7 $ 67 $ 69 $ 55 $ 32 $ 54
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LYONDELL CHEMICAL COMPANY
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(Millions of dollars)
Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004
Lyondell net loss $ (113) $ (68) $ (44) $ (77) $ (15)
Add: Benefit from income tax (55) (39) (27) (58) (9)
Interest expense, net 83 99 106 104 109
Depreciation and amortization 57 61 66 66 63
(Income) loss from equity investment in Equistar 100 32 26 70 (6)
Income from equity investment in LCR (19) (37) (43) (45) (56)
Lyondell EBITDA $ 53 $ 48 $ 84 $ 60 $ 86
Equistar net income (loss) $ (146) $ (49) $ (40) $ (104) $ 5
Add: Depreciation and amortization 78 76 76 77 76
Interest expense, net 49 53 51 54 55
Equistar EBITDA $ (19) $ 80 $ 87 $ 27 $ 136
Proportionate Share—70.5% $ (14) $ 57 $ 61 $ 19 $ 96
LCR net income $ 28 $ 58 $ 69 $ 73 $ 91
Add: Depreciation and amortization 28 29 28 28 30
Interest expense, net 10 9 8 9 10
LCR EBITDA $ 66 $ 96 $ 105 $ 110 $ 131
Proportionate Share—58.75% $ 39 $ 56 $ 62 $ 65 $ 77
Lyondell and Proportionate Share of Equity Investments—EBITDA
Lyondell EBITDA $ 53 $ 48 $ 84 $ 60 $ 86
70.5% of Equistar EBITDA (14) 57 61 19 96
58.75% of LCR EBITDA 39 56 62 65 77
Lyondell and Proportionate Share of Equity Investments $ 78 $ 161 $ 207 $ 144 $ 259
36