Westlake Chemical Partners LP Q1 FY2026 earnings call

• Net income for Westlake Partners in first quarter 2026 was $14 million, or 40 cents per unit; consolidated net income including OPCO's earnings was $82 million on net sales of $306 million.
• Distributable cash flow for first quarter 2026 was $18 million, or 51 cents per unit, increased by $13 million compared to first quarter 2025.
• Trailing 12 - month coverage ratio improved to 1 times from 0.8 times sequentially.
• Operating surplus improved by $1 million with coverage ratio above 1 in first quarter.
• Consolidated cash and cash investments with Westlake through investment management agreement were $81 million at end of first quarter.
• Long - term debt at end of quarter was $400 million, with $377 million at partnership and $23 million at OPCO.
• OPCO spent $6 million on capital expenditures in first quarter 2026.
• Maintained strong leverage metrics with consolidated leverage ratio of approximately 1 times.
• Announced quarterly distribution of 47.14 cents per unit for first quarter 2026, 47th consecutive quarterly distribution since IPO in 2014.
• Growth in distributions by 71% since original minimum quarterly distribution.
• First quarter distribution paid on June 1, 2026, to unit holders of record on May 14, 2026.
• Solid operating rates at OPCO's ethylene facilities in first quarter resulted in 1.0x coverage ratio.
• Middle East conflict disrupted global supply of oil, chemical feedstocks, and polymers, leading to higher demand and prices for North American ethylene, benefiting margin on third - party sales.
• Strong balance sheet with conservative financial and leverage metrics.
• Evaluate growth opportunities via four levers: increase ownership interest of OPCO, acquisitions of other qualified income streams, organic growth opportunities like expansions of current ETLN facilities, and negotiation of higher fixed margin in ETL and SACE agreement with Westlake.
• Focus on safe operations and sustainability efforts.

Westlake Partners' first quarter 2026 net income was $14 million, or 40 cents per unit. Consolidated net income, including OPCO's earnings, was $82 million on consolidated net sales of $306 million. Distributable cash flow for the quarter was $18 million, or 51 cents per unit. First quarter 2026 net income for Westlake Partners was $9 million above the first quarter of 2025 due to higher production and sales volumes. Distributable cash flow increased by $13 million compared to first quarter 2025. Sequentially, trailing 12 - month coverage ratio improved to 1 times from 0.8 times. At end of first quarter, consolidated cash and cash investments with Westlake through investment management agreement were $81 million. Long - term debt was $400 million, with $377 million at the partnership and $23 million at OPCO. OPCO spent $6 million on capital expenditures in first quarter 2026. Cumulative distribution coverage ratio since IPO in 2014 is approximately 1 times. Third - party average sales price was higher in first quarter 2026 offsetting slightly lower production and sales volume. Margin for approximately 5% of production sold to third parties is benefiting from higher selling prices due to Middle East conflict affecting global supply of oil, chemical feedstocks, and polymers, leading North American chemical customers to source more material from North America.

• No planned turnarounds in 2026.
• Middle East conflict is disrupting global supply of oil, chemical feedstocks, and polymers, supporting higher demand and prices for North American ethylene, which is benefiting margin on third - party sales. If ethylene remains elevated, expect more positive impact in second quarter

Q: In your prepared remarks, you mentioned increased margins on 5% of sales to third parties due to war, and asked if we saw impact in first quarter as war started end of February. Also noted third - party sales revenue was a few million less than comparable quarter last year.

A: As a result of run - up in ethylene pricing, took opportunity in first quarter, March, to sell more third - party ethylene volumes than normally the case, did improve margins. Impact of only one month of activity, but if ethylene remains elevated, expect more positive impact in second quarter