Westlake Chemical Partners LP (WLKP) 2025 Q2 法說會逐字稿

Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, August 5, 2025.

午安.感謝您的支持。歡迎參加 Westlake Chemical Partners 2025 年第二季財報電話會議。（操作員指示）提醒一下，本次會議將於今天（2025 年 8 月 5 日）進行錄製。

I would now like to turn the call over to today's host, John Zoeller, Westlake Chemical Partners' Vice President and Treasurer. Sir, you may begin.

現在，我想將電話轉給今天的主持人，Westlake Chemical Partners 的副總裁兼財務主管 John Zoeller。先生，您可以開始了。

Thank you. Good afternoon, everyone, and welcome to the Westlake Chemical Partners second-quarter 2025 conference call. I am joined today by Albert Chao, our Executive Chairman; Jean-Marc Gilson, our President and CEO; Steve Bender, our Executive Vice President and Chief Financial Officer; and other members of our management team.

謝謝。大家下午好，歡迎參加 Westlake Chemical Partners 2025 年第二季電話會議。今天與我一同出席的還有我們的執行主席 Albert Chao、我們的總裁兼執行長 Jean-Marc Gilson、我們的執行副總裁兼財務長 Steve Bender 以及我們的管理團隊的其他成員。

During this call, we refer to ourselves as Westlake Partners or the Partnership. References to Westlake refer to our parent company, Westlake Corporation, and references to OpCo refer to Westlake Chemical OpCo LP, a subsidiary of Westlake and the Partnership, which owns certain olefins assets. Additionally, when we refer to distributable cash flow, we are referring to Westlake Chemical Partners' MLP distributable cash flow. Definitions of these terms are available on the Partnership's website.

在本次電話會議中，我們稱自己為 Westlake Partners 或合夥企業。提及的 Westlake 指的是我們的母公司 Westlake Corporation，所提及的 OpCo 指的是 Westlake Chemical OpCo LP，它是 Westlake 和合夥企業的子公司，擁有某些烯烴資產。此外，當我們提到可分配現金流時，我們指的是 Westlake Chemical Partners 的 MLP 可分配現金流。這些術語的定義可在夥伴關係的網站上找到。

Today, management is going to discuss certain topics that will contain forward-looking information that is based on management's beliefs as well as assumptions made by and information currently available to management. These forward-looking statements suggest predictions or expectations, and thus are subject to risks or uncertainties. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in our regulatory filings, which are also available on our Investor Relations website.

今天，管理層將討論某些主題，這些主題將包含基於管理層的信念以及管理層所做的假設和當前可用的信息的前瞻性資訊。這些前瞻性陳述顯示了預測或預期，因此存在風險或不確定性。我們鼓勵您透過查看我們監管文件中的警告聲明來了解更多可能導致我們的實際結果不同的因素，這些聲明也可以在我們的投資者關係網站上找到。

This morning, Westlake Partners issued a press release with details of our second-quarter 2025 financial and operating results. This document is available in the Press Release section of our web page at wlkpartners.com. A replay of today's call will be available beginning two hours after the conclusion of this call. The replay can be accessed via the Partnership website.

今天上午，Westlake Partners 發布了一份新聞稿，詳細介紹了我們 2025 年第二季的財務和營運表現。文件可在我們網站 wlkpartners.com 的「新聞稿」版塊取得。今日電話會議的重播將於電話會議結束後兩小時開始提供。可以透過合作夥伴網站觀看重播。

Please note that information reported on this call speaks only as of today, August 5, 2025, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay. I would finally advise you that this conference call is being broadcast live through an Internet webcast system that can be accessed on our web page at wlkpartners.com.

請注意，本次通話中報告的資訊僅截至今天（2025 年 8 月 5 日），因此，請注意，時間敏感資訊在任何重播時可能不再準確。最後，我想告訴大家，本次電話會議將透過網路網路直播系統進行現場直播，您可以透過我們的網頁 wlkpartners.com 存取。

Now I'd like to turn the call over to Jean-Marc Gilson. Jean-Marc?

現在我想把電話轉給 Jean-Marc Gilson。讓-馬克？

Thank you, John. Good afternoon, everyone, and thank you for joining us to discuss our second-quarter 2025 results. In this morning's press release, we reported Westlake Partners' second-quarter 2025 net income of $15 million or $0.41 per unit. Compared to the first quarter of 2025, our second-quarter sales and earnings benefited from fewer production days impacted by the planned turnaround at our Petro 1 ethylene unit in Lake Charles, Louisiana. The stability of Westlake Partners' business model is consistently demonstrated to our fixed margin ethylene sales agreement, which minimizes market volatility and other production risk.

謝謝你，約翰。大家下午好，感謝您加入我們討論 2025 年第二季的業績。在今天上午的新聞稿中，我們報告了 Westlake Partners 2025 年第二季的淨收入為 1500 萬美元或每股 0.41 美元。與 2025 年第一季相比，我們第二季的銷售額和收益受益於路易斯安那州查爾斯湖 Petro 1 乙烯裝置的計畫週轉導致生產天數減少。Westlake Partners 商業模式的穩定性始終體現在我們的固定利潤乙烯銷售協議中，該協議最大限度地降低了市場波動和其他生產風險。

The high degree of stability in cash flow, when paired with the predictability of our business, has enabled us to deliver the long history of reliable distribution and coverage. This quarter's distribution is the 44th consecutive quarterly distributions since our IPO in July of 2014, without any reductions.

現金流的高度穩定性，加上我們業務的可預測性，使我們能夠提供長期可靠的分銷和覆蓋範圍。本季的分配是我們自 2014 年 7 月首次公開募股以來連續第 44 次季度分配，沒有任何減少。

I would like now to turn our call over to Steve to provide more detail on the financial and operating results for the quarter. Steve?

現在，我想將我們的電話轉給史蒂夫，以提供有關本季財務和營運結果的更多詳細資訊。史蒂夫？

Thank you, Jean-Marc, and good afternoon, everyone. In this morning's press release, we reported Westlake Partners' second-quarter 2025 net income of $15 million or $0.41 per unit. Consolidated net income, including OpCo's earnings, was $86 million. This amount includes a $14 million benefit to OpCo from protection provided by the ethylene sales agreement to insulate it from certain production shortfalls such as the extension of the Petro 1 turnaround beyond its originally scheduled completion date.

謝謝你，讓-馬克，大家下午好。在今天上午的新聞稿中，我們報告了 Westlake Partners 2025 年第二季的淨收入為 1500 萬美元或每股 0.41 美元。包括 OpCo 的收益在內的綜合淨收入為 8,600 萬美元。這筆金額包括 OpCo 因乙烯銷售協議提供的保護而獲得的 1400 萬美元收益，該協議旨在使其免受某些生產短缺的影響，例如 Petro 1 的周轉時間延長至原定完工日期之後。

Second-quarter 2025 net income for Westlake Partners of $15 million was essentially in line with the second-quarter 2024 Partnership net income. Distributable cash flow of $15 million or $0.43 per unit for the second quarter of 2025 decreased by $2 million compared to the second quarter of 2024 due to higher maintenance capital expenditures as a result of the Petro 1 planned turnaround.

Westlake Partners 2025 年第二季的淨收入為 1,500 萬美元，與 2024 年第二季 Partnership 的淨收入基本持平。2025 年第二季的可分配現金流量為 1,500 萬美元或每單位 0.43 美元，與 2024 年第二季相比減少了 200 萬美元，原因是 Petro 1 計劃的周轉導致維護資本支出增加。

Turning our attention to the balance sheet and cash flows. At the end of the second quarter, we had consolidated cash balance and cash investments with Westlake through our investment management agreement totaling $81 million. Long-term debt at the end of this quarter was $400 million, of which $377 million was at the Partnership and the remaining $23 million was at OpCo.

將我們的注意力轉向資產負債表和現金流。截至第二季末，我們透過投資管理協議與 Westlake 合併了現金餘額和現金投資，總額達 8,100 萬美元。長期本季末的債務為 4 億美元，其中合夥企業債務為 3.77 億美元，OpCo 債務為 2,300 萬美元。

In the second quarter of 2025, OpCo spent $24 million on capital expenditures. We maintained our strong leverage metrics with a consolidated leverage ratio of approximately 1 time. On July 30, 2025, we announced a quarterly distribution of $0.4714 per unit with respect to the second quarter of 2025. Since our IPO in 2014, the Partnership has made 44 consecutive quarterly distributions to unitholders, and we have grown distributions 71% since the Partnership's original minimum quarterly distribution of $0.275 per unit.

2025 年第二季度，OpCo 的資本支出為 2,400 萬美元。我們維持了強勁的槓桿指標，綜合槓桿比率約為 1 倍。2025 年 7 月 30 日，我們宣布 2025 年第二季每單位季度分配 0.4714 美元。自 2014 年首次公開募股以來，合夥企業已連續 44 次向單位持有人進行季度分配，自合夥企業最初設定每單位 0.275 美元的最低季度分配額以來，我們的分配額增長了 71%。

The Partnership's second-quarter distribution will be paid on August 27, 2025, to unitholders of record on August 12, 2025. The Partnership predictable fee-based cash flow continues to prove beneficial in today's economic environment and is differentiated by the consistency of our earnings and cash flows.

合夥企業的第二季分配將於 2025 年 8 月 27 日支付給 2025 年 8 月 12 日登記在冊的單位持有人。合夥企業可預測的收費現金流在當今的經濟環境下繼續證明是有益的，並且因我們的收益和現金流的一致性而與眾不同。

Looking back since our IPO in July of 2014, we have maintained a cumulative distribution coverage ratio of approximately 1.1 times, and the Partnership's stability and cash flows, we were able to sustain our current distribution without the need to access the capital markets. For modeling purposes, the Petro 1 turnaround completed, we have no further plans in 2025 or 2026.

回顧自2014年7月首次公開募股以來，我們一直保持著約1.1倍的累計分配覆蓋率，加上合夥企業的穩定性和現金流，我們能夠維持當前的分配，而無需進入資本市場。出於建模目的，Petro 1 轉型已完成，我們在 2025 年或 2026 年沒有進一步的計劃。

Now I'd like to turn the call back over to Jean-Marc to make some closing comments. Jean-Marc?

現在我想把電話轉回給 Jean-Marc 來做一些總結發言。讓-馬克？

Thank you, Steve. The successful completion of the Petro 1 turnaround during the second quarter of 2025 was a major accomplishment that positions the Partnership for solid earnings and distributable cash flows well into the future.

謝謝你，史蒂夫。Petro 1 在 2025 年第二季度成功扭虧為盈，這是一項重大成就，為合夥企業在未來實現穩健的盈利和可分配現金流奠定了基礎。

Turning to our outlook. Global industrial and manufacturing activity has been soft thus far in 2025, which is broadly impacting the global chemical industry. Despite the challenging global macroeconomic backdrop, the Partnership's financial performance and distributions will continue to be supported by our ethylene sales agreement, which provides a predictable fee-based cash flow structure from our take-or-pay contract with Westlake for 95% of OpCo's production. As has been the case since our IPO over 10 years ago, this ethylene sales agreement has delivered stable and predictable cash flows through economic ups and downs as well as planned and unplanned turnarounds.

轉向我們的展望。2025 年迄今，全球工業和製造業活動一直疲軟，這對全球化學工業產生了廣泛影響。儘管全球宏觀經濟背景充滿挑戰，合夥企業的財務業績和分配仍將繼續受到我們乙烯銷售協議的支持，該協議透過我們與 Westlake 簽訂的照付不議合約為 OpCo 95% 的產量提供了可預測的基於費用的現金流結構。正如我們十多年前首次公開募股以來的情況一樣，這項乙烯銷售協議在經濟起伏以及計劃內和計劃外的轉變過程中提供了穩定且可預測的現金流。

Turning to our capital structure, we maintain a strong balance sheet with conservative financial and leverage metrics. As we continue to navigate market conditions, we will evaluate opportunities via our four levers of growth in the future, including increases of our ownership interest of OpCo, acquisition of other qualified income streams, organic growth opportunities such as expansions of our current ethylene facilities, and negotiation of a higher fixed margin in our ethylene sales agreement with Westlake.

談到我們的資本結構，我們維持了強勁的資產負債表，並採用保守的財務和槓桿指標。隨著我們繼續應對市場狀況，我們將透過未來的四個成長槓桿來評估機會，包括增加我們對 OpCo 的所有權權益、收購其他合格收入來源、有機成長機會（例如擴大我們現有的乙烯設施）以及在與 Westlake 簽訂的乙烯銷售協議中協商更高的固定利潤率。

We remain focused on our ability to continue to provide long-term value and distribution to our unitholders. As always, we will continue to focus on safe operations along with being good stewards of the environment where we work and live as part of our broader sustainability efforts.

我們仍然專注於繼續為我們的單位持有人提供長期價值和分配的能力。像往常一樣，我們將繼續注重安全運營，同時做好我們工作和生活的環境管理，這是我們更廣泛的永續發展努力的一部分。

Thank you very much for listening to our second-quarter's earnings call. Now I will turn the call back over to John.

非常感謝您收聽我們第二季的財報電話會議。現在我將把電話轉回給約翰。

Thank you, Jean-Marc. Before we begin taking questions, I would like to remind you that a replay of this teleconference will be available two hours after the call has ended. We will provide instructions to access the replay at the end of the call.

謝謝你，讓-馬克。在我們開始回答問題之前，我想提醒您，本次電話會議的重播將在會議結束兩小時後提供。我們將在通話結束時提供訪問重播的說明。

Angelina, we will now take questions.

安吉麗娜，我們現在來回答問題。

Thank you. At this time, we will conduct the question-and-answer session. (Operator Instructions)

謝謝。此時，我們將進行問答環節。（操作員指示）

Matthew Blair, TPH.

馬修·布萊爾，TPH。

I think you mentioned on the Westlake C-Corp call that some of the outage impact from Q2 might be persisting into Q3. Would any of that outage impact affect the OpCo assets, the crackers specifically? And I guess, in general, could you talk about how those assets have been running so far in the third quarter?

我記得您在 Westlake C-Corp 電話會議上提到過，第二季的部分停電影響可能會持續到第三季。停電影響是否會影響 OpCo 資產，特別是裂解設備？我想，總的來說，您能談談這些資產在第三季迄今為止的運作情況嗎？

Yeah, Matthew, the impact that we were speaking to did not affect the ethylene unit here. And that unit, as I mentioned, was completed. And so there is no continuation of that turnaround in 2Q or -- excuse me, in Q3. And so, it was completed in 2Q. And that has -- therefore, the plant is running very reliably and producing as we would expect it to after the turnaround.

是的，馬修，我們所說的影響並沒有影響這裡的乙烯裝置。正如我所提到的，該單元已經完成。因此，第二季或第三季不會繼續出現這種好轉。因此，它在第二季完成了。因此，工廠運作非常可靠，生產也如我們預期的那樣。

Sounds good. And then you also mentioned the four levers of possible growth. Are there certain opportunities that look more appealing in the current environment? Certain levers that look less appealing? And I guess in general, how likely do you think it would be that Westlake LP would see some sort of distribution growth either in the back half of 2025 or into 2026?

聽起來不錯。然後您還提到了可能的成長的四個槓桿。在當前環境下是否存在更具吸引力的機會？某些槓桿看起來不太吸引人？我想，總的來說，您認為 Westlake LP 在 2025 年下半年或 2026 年實現分銷成長的可能性有多大？

Yeah. The -- if you recall, going back to the origination of the Partnership, it was designed to be a mechanism to continue to fund the C-Corp at attractive yields or attractive structures as issuing equity in that market. Today, as you think about Westlake, the C-Corp Westlake Corporation, there really isn't an immediate need for capital. And so as we think about the markets that the Partnership could attack, those markets, as you know, have contracted over the last number of years.

是的。如果你還記得的話，回顧合夥企業的起源，它被設計成一種機制，透過在該市場發行股票，繼續以有吸引力的收益率或有吸引力的結構為 C 公司提供資金。今天，當你想到 Westlake，即 C-Corp Westlake 公司時，你會發現它實際上並不急需資金。因此，當我們考慮合夥企業可能進入的市場時，正如您所知，這些市場在過去幾年中已經萎縮。

And so given the combination of that contraction and the need -- the lack of need immediately for Westlake Corporation to attract equity capital, I don't see a need in the current year to raise equity capital through one of these four levers.

因此，考慮到這種收縮和需求——Westlake Corporation 不需要立即吸引股權資本，我認為今年沒有必要透過這四個槓桿之一來籌集股權資本。

I am showing no further questions at this time. I would now like to turn it back to John Zoeller.

我目前沒有其他問題。現在我想把話題轉回約翰·佐勒。

Thank you again for participating in today's call. We hope you will join us for our next conference call to discuss our third-quarter 2025 results.

再次感謝您參加今天的電話會議。我們希望您能參加我們的下一次電話會議，討論我們 2025 年第三季的業績。

Thank you for participating in today's Westlake Chemical Partners second-quarter 2025 earnings conference call. As a reminder, this call will be available for replay beginning two hours after the call has ended and may be accessed until 11:59 PM Eastern Time on Tuesday, August 19, 2025. The replay can be accessed via the Partnership website. Goodbye.

感謝您參加今天的 Westlake Chemical Partners 2025 年第二季財報電話會議。提醒一下，本次通話將在通話結束兩小時後開始重播，並可在 2025 年 8 月 19 日星期二東部時間晚上 11:59 之前訪問。可以透過合作夥伴網站觀看重播。再見。