Westlake Chemical Partners LP Q3 FY2025 earnings call

• Completion of the planned turnaround at Petro 1 ethylene unit in Lake Charles, Louisiana during the second quarter benefited third quarter sales and earnings.
• Reported net income of $15 million or $0.42 per unit for Westlake Partners, with consolidated net income including OpCo's earnings at $86 million on net sales of $309 million.
• Distributable cash flow was $15 million or $0.42 per unit, with decrease from prior year due to higher maintenance capex.
• Balance sheet had consolidated cash and cash investments totaling $51 million, long-term debt $400 million, consolidated leverage ratio ~1x.
• Renewed Ethylene Sales Agreement with OpCo and Westlake through end of 2027 with same terms, providing predictable cash flow.
• Focus on stable business model with fixed margin ethylene sales agreement, minimizing market volatility; focus on safe operations and sustainability.

Westlake Partners' third quarter 2025 net income was $15 million or $0.42 per unit. Consolidated net income including OpCo's earnings was $86 million on consolidated net sales of $309 million. Distributable cash flow for the quarter was $15 million or $0.42 per unit. Third quarter 2025 net income was lower than third quarter 2024 due to lower margins on sales of ethylene to third parties. Distributable cash flow decreased by $3 million compared to third quarter 2024 due to higher maintenance capital expenditures.

• No planned turnarounds for remainder of 2025 or 2026.
• Ethylene Sales Agreement provides predictable fee-based cash flow structure.
• Evaluate growth levers including increasing ownership interest of OpCo, acquisitions of qualified income streams, organic growth opportunities like expanding ethylene facilities, and negotiating higher fixed margin in Ethylene Sales Agreement with Westlake.

• Forward-looking statements subject to risks or uncertainties due to factors that could lead actual results to differ.
• Global industrial and manufacturing activity being soft broadly impacting the global chemical industry, which could affect performance.

Q: I noticed that the distributable cash flow for the quarter was less than the amount of distribution per unit. What is the outlook for getting the distributable cash flow up to a level, again, where the distribution will be covered?

A: The entire reason for that was the planned turnaround. When we have planned turnarounds, it impacts production and sales. Our operating surplus is robust, and we've paid distributions out of operating surplus. Now that turnaround is complete and back in full production, operating surplus should build, and distributions should be well covered. Yes, on a pro forma basis, without turnaround impact, distributable cash flow would have been in excess of distribution.