WLKP

• Financial Performance Stability

  • The partnership's fixed-margin ethylene sales agreement minimizes market volatility and production risk, delivering consistent stable cash flow. Q2 2026 marks the 48th consecutive quarterly distribution since the 2014 IPO with no distribution cuts. Cumulative distribution coverage since IPO has remained above 1.0x.
  • Trailing 12-month distribution coverage improved to 1.04x in Q2 2026, up from 1.0x in the prior quarter, as the impact of the 2025 Petro-1 turnaround aged out. Quarterly coverage for Q2 2026 was 1.0x.

• Balance Sheet and Capital Structure

  • End-of-Q2 2026 total cash and cash investments totaled $93 million, with total long-term debt of $400 million ($377 million at the partnership, $23 million at Opco). The consolidated leverage ratio remained strong at approximately 1.0x.
  • The partnership and Opco extended their revolver agreements with parent Westlake Corporation for four years through 2031, and secured a 10 basis point interest rate reduction. This follows the earlier 2026 extension of the ethylene supply agreement with Westlake.
  • The announced Q2 2026 distribution is 47.14 cents per unit, to be paid August 28, 2026 to unitholders of record August 13, 2026. Total distribution growth has reached 71% since the original 27.5 cent per unit minimum quarterly distribution post-IPO.

• Operations and Sustainability

  • Solid operating rates at Opco's ethylene facilities were achieved in the quarter. There are no planned plant turnarounds scheduled for 2026. CapEx for Opco in Q2 2026 was $12 million. Long-standing CFO Steve Bender will retire next month, with John Marks appointed as new CFO.
  • Management maintains a core focus on safe operations, environmental stewardship, and broader sustainability initiatives.

• No planned major plant turnarounds are scheduled for 2026, which supports stable maintenance capital expenditure and cash flow expectations for the full year.
• Management reaffirmed the partnership's business model will continue to deliver stable, predictable cash flows and reliable distributions to unitholders, supported by its fixed-margin structure that insulates earnings from market volatility.
• Management outlined four potential avenues for future growth, but did not provide specific numerical guidance for revenue or earnings for upcoming periods, and did not revise prior formal guidance.

Westlake Chemical Partners' only reported operating segment is Opco, which holds the partnership's olefin and ethylene assets. For Q2 2026, consolidated net sales including Opco earnings was $297 million, and consolidated net income was $82 million. Westlake Partners itself reported net income of $14 million (40 cents per unit), flat both sequentially from Q1 2026 and year-over-year from Q2 2025. Distributable cash flow for the quarter was $18 million (50 cents per unit), a $3 million increase from Q2 2025 driven by higher production/sales volume and lower maintenance capital expenditures following the 2025 Petro-1 turnaround. No separate revenue contribution percentages for multiple product segments are provided in the transcript.

• Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from management expectations, with additional details available in the partnership's regulatory filings.
• The ongoing Middle East conflict has increased volatility in global chemical and ethylene prices, though management noted the partnership's fixed-margin structure leaves ethylene margins largely immune to this volatility.
• The partnership's business and operational continuity is dependent on ongoing support from parent Westlake Corporation, though the recent extension of key agreements demonstrates Westlake's commitment to the partnership.

No questions were submitted by call participants during the question and answer portion of the conference, so there are no exchanges to summarize.