Westlake Chemical Partners LP Q4 FY2025 earnings call

• Westlake Partners' financial results in 2025 demonstrated stability from fixed margin ethylene sales agreement, with 46 consecutive quarterly distributions since IPO in 2014. • 2025 saw completion of planned turnaround at Pecan ethylene facility in Lake Charles, Louisiana. • OpCo successfully renewed ethylene sales agreement with Westlake through 2027. • At end of fourth quarter 2025, consolidated cash balance and cash investments with Westlake totaled $68 million, long-term debt was $400 million, and consolidated leverage ratio was below 1x. • 2026 has no planned turnarounds, expected to drive production/sales growth and recovery in distributable cash flow and coverage ratio. • Growth levers include increasing ownership interest in OpCo, acquiring other qualified income streams, organic growth of current ethylene facilities, and negotiating higher fixed margin in ethylene sales agreement. • Focus on safe operations and environmental sustainability.

Westlake Partners 2025 full year net income was $49 million or $1.38 per unit. Fourth quarter 2025 net income was $15 million or $0.41 per unit. Consolidated net income including OpCo was $299 million for full year 2025 and $84 million for fourth quarter 2025 with consolidated net sales of $323 million. Partnership's distributable cash flow for fourth quarter 2025 was $19 million or $0.53 per unit. Full year 2025 MLP distributable cash flow was $53 million, down $14 million from 2024. Full year 2025 net income decreased by $13 million from 2024. Distribution coverage for full year 2025 was 0.8x. OpCo renewed ethylene sales agreement with Westlake through 2027 in 2025 with no changes to terms.

• 2026 has no planned turnarounds, expected solid production and sales volume growth to drive recovery in distributable cash flow and coverage ratio back to historical levels. • Should pursue growth initiatives, would finance through actions like drop-downs, external funding via debt or equity or combination.

Q: Looking at the balance sheet and cash flow statement, it appears that in the past year, you drew down on the item receivable on the investment management agreement, Westlake, and don't have too much left. Also, expecting distribution coverage ratio to improve in 2026. Is that how you expect to cover distributions from operations without drawing down under the receivable anymore?

A: The investment balance drawn down in 2025 reflected cost of maintenance turnaround. Every month, invoice Westlake for planned turnaround expenses and cash received is invested. Operating reserves in 2025 were strong enough to pay distributions. 2026 with no planned turnarounds, expect coverage ratio to rise above 1.1x, operating surplus to build and investment balance to build.

Q: In his prepared remarks, the CEO talked about various opportunities for expansion growth, such as increasing the percentage ownership of the OpCo organic growth. How would you anticipate financing any of these initiatives if you decide to pursue them?

A: Should undertake growth opportunities, would do a drop-down where a party monetizes portion of OpCo interest and contribute that down, finance with external funding whether debt or equity or combination.