Westlake Chemical Partners (WLKP) investor relations material

Executive summary

• Q3 net income attributable to limited partners was $16.2M, or $0.46/unit, versus $14.7M, or $0.42/unit, a year earlier; higher production and sales volumes lifted results QoQ and YoY.

• Fixed-margin ethylene sales support stable cash flows; the $0.4714/unit distribution marked the 49th consecutive quarterly payment without a reduction since the July 2014 IPO.

Financial highlights

• Q3 net sales were $314.5M, gross profit $103.9M and operating income $95.6M, versus $308.9M, $99.4M and $92.0M, respectively, a year earlier.

• Q3 consolidated net income was $90.9M versus $86.2M; net income attributable to limited partners was $16.2M versus $14.7M.

• Q3 MLP distributable cash flow was $18.0M versus $14.9M YoY and $17.6M in Q2; higher sales volume and lower maintenance capex drove the YoY increase.

• Nine-month net sales were $917.2M versus $843.6M, net income attributable to limited partners was $44.6M versus $34.2M, and operating cash flow was $362.2M versus $160.1M.

• Q3 operating cash flow was $122.2M, up $17.0M YoY, primarily from more favorable working-capital changes; it fell $7.6M QoQ as working-capital changes were less favorable.

Outlook and guidance

• No turnarounds were planned for the remainder of 2026 or in 2027.

• The ethylene sales agreement provides a $0.10/lb cash margin, net of operating costs, maintenance capital expenditures and turnaround reserves, on 95% of OpCo production sold under the agreement.

• Q4 ethylene prices were above the Q3 average, potentially benefiting roughly 5% of annual sales to third parties; current polyethylene pricing supported constructive third-party margins.

• Growth options include increasing the OpCo ownership interest, acquisitions, facility expansions and negotiating a higher fixed margin under the ethylene sales agreement.

• Cash from operations, revolving credit facilities and other potential funding sources were expected to meet working-capital and capital-expenditure needs and support distributions.