Volume Growth Outlook
Q: Do you expect P&SP volume growth to continue?
A: Yes, we anticipate continued strong volume growth in Packaging & Specialty Plastics, with operating rates above 90% in advantaged regions like Canada, U.S. Gulf Coast, and Argentina. We see improvement in Europe due to reduced Middle East material flow. Industrial Solutions holds up well, and we expect our glycol plant back online in Q2.

Restocking Potential
Q: What's your view on potential restocking?
A: We don't think we're in a restocking cycle yet, but inventories are low across value chains. Strong December demand indicates resilient consumer demand. As energy costs rise and demand grows, restocking may pick up, possibly later in the year when interest rates come down and housing demand increases.

Project Impact on 2024
Q: How material are project starts for 2024 earnings?
A: Projects like the MDI distillation facility in Freeport, which increases MDI distillation by 30%, will benefit us. No new plastics capacity is expected except for one Shell plant, and with low inventories and strong export channels, we feel good about the plastics outlook for 2024.

Pension Liability Reduction
Q: Update on pension at year-end?
A: We reduced our pension liabilities by $1.7 billion in Q4 without additional cash from the company, resulting in a one-time noncash settlement charge of $640 million. This de-risks our pension plan through annuitization and risk transfer.

Cost Savings Allocation
Q: How is the $1B cost savings allocated?
A: Approximately 50% of cost savings are in Packaging & Specialty Plastics, with 20–25% in each of the other two segments, plus some in corporate. We ended the year at a $1.4 billion run rate and expect another $400 million in savings for 2024.

Impact of Texas Cold Snap
Q: What's the impact of the Texas cold snap on Q1 EBITDA?
A: The impact was minimal and didn't factor into Q1 estimates. We managed through it well, with affected plants back online quickly. The biggest Q1 impacts are turnarounds of about $200 million and margin effects.

Underperformance in Silicones
Q: Why were earnings lower in PMC segment?
A: Oversupply in siloxanes and monomers pressured volumes and pricing. Year-over-year prices were down due to supply-demand imbalance. Downstream coatings held up relatively well, and we expect a 3% increase in downstream coatings demand this year.

Polyethylene Pricing Expectations
Q: What's your PE price assumption for Q1?
A: We have $0.05 price increases on the table for January and February. Globally, we expect pricing to be flat quarter-over-quarter, with potential increases in EMEA and Asia Pacific due to factors like the Suez Canal impact.

Chemical Railcar Loadings Increase
Q: What's driving the 10% increase in U.S. chemical railcar loadings?
A: Industrial production is rebounding, with destocking appearing to end. Downstream demand is turning into orders, boosting railcar loadings. Strong demand from Mexico and China adds positivity. We expect volume growth in all three segments in 2024.

Silicones Market Outlook
Q: What's your outlook for the silicones market?
A: Downstream silicones demand holds up well, with substantial growth expected in 2024. Upstream monomers markets should tighten in China, helping siloxanes. We're monitoring EV production, as it drives silicon content demand.

Mechanical Recycling Strategy
Q: Discuss your strategy on mechanical recycling.
A: We see demand for all forms of recycling and bio-based products increasing due to global mandates and customer demand. We're investing in capacity, starting in Europe, and expect growth in mechanical recycling to outpace the market by 2030.

Sadara Joint Venture Outlook
Q: Can you update on the Sadara JV and potential impacts?
A: We expect Sadara earnings to improve with rising oil prices. Although feedstock cost increases are possible, we're working to offset these costs. No additional cash contributions have been needed since 2021.

Mid-Cycle Earnings Timing
Q: When will projects reach mid-cycle earnings contribution?
A: We expect to move toward mid-cycle in 2025. For 2024, perhaps $300–$400 million of mid-cycle type returns, with the balance in 2025, as the market improves and projects ramp up.

Equity Earnings Improvement
Q: How will equity income improve by $50–$100 million?
A: Sadara JVs should be up about $100 million year-over-year due to recovery from outages. Kuwait JVs up about $60 million, Thai JVs down due to naphtha cracking pressure, netting to an increase of about $100 million.

Additional Infrastructure Divestments
Q: Are you considering more infrastructure divestments?
A: Yes, we expect over $1 billion in additional cash proceeds from divesting non-product-producing assets in 2024, aiding in reinvesting in revenue-generating assets like the Alberta project.