Westlake Chemical Partners LP — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income attributable to the Partnership for Q3 2026 was $16.2 million ($0.46 per unit), an increase from $14.7 million in Q3 2025.
• Net income attributable to the Partnership for Q3 2026 increased by $2.0 million compared to Q2 2026.
• Cash flows from operating activities in Q3 2026 were $122.2 million, up $17.0 million from $105.2 million in Q3 2025, primarily due to favorable working capital changes; this figure decreased by $7.6 million compared to Q2 2026.
• MLP distributable cash flow for Q3 2026 was $18.0 million, an increase of $3.1 million from $14.9 million in Q3 2025 and $0.4 million from $17.6 million in Q2 2026, driven by higher production and sales volume and lower maintenance capital expenditures.
• Total net sales for Q3 2026 were $314.5 million, compared to $308.9 million in Q3 2025.
• Gross profit for Q3 2026 was $103.9 million, compared to $99.4 million in Q3 2025.
• EBITDA for Q3 2026 was $128.3 million, compared to $126.1 million in Q3 2025.
• Long-term debt payable to Westlake remained constant at $399.7 million as of September 30, 2026.
• Cash and cash equivalents were $47.6 million as of September 30, 2026, compared to $44.3 million as of December 31, 2025.

Guidance and Future Outlook

• Management expects earnings and cash flows to continue benefiting from the stability provided by the ethylene sales agreement with Westlake.
• The trailing twelve-month MLP distributable cash flow coverage ratio was 1.09x for Q3 2026, up from 1.04x at the end of Q2 2026.
• Since the IPO in July 2014, the cumulative coverage ratio is approximately 1.05x.

Business Segments and Product Lines

• The Partnership owns a 22.8% interest in Westlake Chemical OpCo LP, which operates three ethylene production facilities (Calvert City, Kentucky; Lake Charles, Louisiana) and an ethylene pipeline.
• OpCo's Ethylene Sales Agreement with Westlake covers 95% of OpCo's ethylene production, sold to Westlake for a cash margin of $0.10 per pound, net of operating costs, maintenance capital expenditures, and reserves for future turnaround expenditures.
• Net sales to Westlake Corporation in Q3 2026 were $261.9 million, down from $276.5 million in Q3 2025.
• Net co-products, ethylene, and other sales to third parties in Q3 2026 were $52.5 million, up from $32.4 million in Q3 2025.

Market and Competitive Landscape

• The press release notes potential impacts from the conflict in the Middle East on global demand for products as a forward-looking risk factor.
• The Partnership's business model relies on a stable sales agreement with Westlake to provide predictable cash flows.

Risks and Challenges

• Forward-looking statements are subject to risks including operating difficulties, ethylene volume and price variability, feedstock and energy cost changes, economic conditions, and actions by Westlake.
• Specific risks include legal proceedings, weather conditions, environmental hazards, regulatory changes, permit acquisition issues, equipment failures, labor disputes, and industrial accidents.
• Political tension and conflict in the Middle East and elsewhere, as well as supply/demand balance, are cited as potential factors affecting results.

Management Commentary and Tone

• Jean-Marc Gilson, President and CEO, expressed pleasure with the Q3 2026 performance, noting increases in net income, EBITDA, and MLP distributable cash flow compared to the second quarter.
• Management highlighted the stability provided by the ethylene sales agreement as a key driver for future earnings and cash flow expectations.

Other Key Points

• The Board of Directors approved a quarterly distribution of $0.4714 per common unit for Q3 2026, payable on December 1, 2026, to unitholders of record as of November 13, 2026.
• This marks the 49th consecutive quarterly distribution to unitholders.
• The Partnership is a limited partnership formed by Westlake Corporation to operate, acquire, and develop ethylene production facilities and other qualified assets.
• Distributions to non-U.S. investors are treated as 100% effectively connected income subject to federal income tax withholding at the highest applicable effective tax rate.