Westlake Chemical Partners LP (WLKP) 2026 Q2 法說會逐字稿

Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Second Quarter 2026 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded today, August 4, 2026. I would now like to turn the call over to today's host, Jeff Hawley, Wesley Chemical Partners Vice President and Chief Accounting Officer. Sir, you may begin.

下午好。感謝各位耐心等候。歡迎參加 Westlake Chemical Partners 2026 年第二季財報電話會議。(接線員指示) 提醒各位，本次會議於 2026 年 8 月 4 日錄音。現在我想把電話交給今天的主持人，Westlake Chemical Partners 副總裁兼首席會計官 Jeff Hawley。先生，您可以開始了。

Thank you. Good afternoon, everyone, and welcome to the Westlake Chemical Partners second quarter 2026 conference call. I'm joined today by Albert Chow, our Executive Chairman; Jean-Marc Gilson, our President and CEO; John Baksht, our Senior Vice President and Chief Financial Officer; Steve Bender, our Special Advisor to the President, and other members of our management team.

謝謝。各位下午好，歡迎參加 Westlake Chemical Partners 2026 年第二季電話會議。今天與我一同出席的有：我們的執行董事長 Albert Chow；總裁兼執行長 Jean-Marc Gilson；資深副總裁兼財務長 John Baksht；總裁特別顧問 Steve Bender，以及我們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 a partnership which owns certain olefin assets.

在本次電話會議中，我們將自稱為 Westlake Partners 或本合夥企業；提及 Westlake 時係指我們的母公司 Westlake Corporation；提及 OPCO 時係指 Westlake Chemical OPCO LP，為 Westlake 的子公司及一個合夥企業，持有特定烯烴資產。

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. 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.

此外，當我們提到可分配現金流時，係指 Westlake Chemical Partners MLP 可分配現金流。這些術語的定義可在本合夥企業的網站上查閱。今天，管理層將討論若干主題，其中包含以前瞻性資訊為主的內容，該等資訊係基於管理層的信念，以及管理層所作之假設與目前可得之資訊。

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.

這些前瞻性陳述代表預測或期望，因此可能受到風險或不確定性影響。我們鼓勵您透過查閱我們監管申報文件中的警示性陳述（亦可於我們投資人關係網站取得），以進一步了解可能導致實際結果與預期不同的因素。

This morning, Westlake Partners issued a press release with details of our second quarter 2026 financial and operating results. This document is available in the press release section of our webpage 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's website.

今天上午，Westlake Partners 發布新聞稿，詳述我們 2026 年第二季的財務與營運結果。該文件可於我們網站 wlkpartners.com 的新聞稿專區取得。本次電話會議結束後兩小時起，將提供重播。重播可透過本合夥企業網站收聽。

Please note that information reported on this call speaks only as of today, August 4, 2026, 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 webpage at WLKPartners.com.

請注意，本次電話會議所提供之資訊僅截至今日（2026 年 8 月 4 日）為止，因此提醒您，任何具時效性的資訊在重播時點可能已不再準確。最後提醒您，本次電話會議正透過網路直播系統即時播出，可於我們網站 WLKPartners.com 進入收看。

Now, I would like to turn the call over to Jean-Marc Gilson. Jean-Marc?

現在，我想把電話交給 Jean-Marc Gilson。Jean-Marc？

Thank you, Jeff, and good afternoon, everyone, and thank you for joining us to discuss our second session quarter 2026 results. In this morning's press release, we reported Westlake Partners’ second quarter 2026 net income of $14 million or 40 cents per unit. which was in line with our net income in the first quarter.

謝謝你，Jeff。各位下午好，也感謝各位加入我們，一同討論 2026 年第二季的業績結果。在今天上午的新聞稿中，我們公布 Westlake Partners 2026 年第二季淨利為 1,400 萬美元，或每單位 0.40 美元，與第一季的淨利水準一致。

The stability of Westlake Partners' business model is consistently demonstrated through our fixed-margin E-TLN sales agreement, which minimizes market volatility and other production risks. 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 distributions and coverage.

Westlake Partners 商業模式的穩定性，持續透過我們固定毛利的 E-TLN 銷售協議展現，該協議可降低市場波動及其他生產風險。高度穩定的現金流，搭配我們業務的可預測性，使我們得以長期提供可靠的配息與覆蓋率。

This quarter distribution is the 48th consecutive quarterly distribution since our IPO in July of 2014, without any reductions. Before I turn the call over to John, I want to take this opportunity to thank Steve Bender for all of his many contributions to the partnership as our CFO since its formation over a decade ago and wish him the best of luck with his upcoming retirement.

本季配息為自 2014 年 7 月 IPO 以來連續第 48 次季度配息，且未曾下調。在我把電話交給 John 之前，我想藉此機會感謝 Steve Bender 自十多年前合夥企業成立以來擔任財務長期間所做的諸多貢獻，並祝福他即將到來的退休生活一切順利。

Thank you, Jean-Marc, and it's been a pleasure working with you, Albert, and James Chao, and the entire Westlake Chemical Partners team for many years. I leave for retirement next month knowing that the partnership is on very firm financial footing, having recently renewed both its revolver, and the ethylene supply agreement with Westlake.

謝謝你，Jean-Marc。多年來能與你、Albert、James Chao，以及整個 Westlake Chemical Partners 團隊共事，是我的榮幸。我將於下個月退休，離任時我深知本合夥企業的財務基礎非常穩健，因為我們近期已完成循環信貸額度（revolver）以及與 Westlake 的乙烯供應協議之續約。

And with that, I'll turn the call over to the partnership's new Chief Financial Officer, Baksht

那麼，我把電話交給本合夥企業的新任財務長 Baksht。

John? Thank you, Steve. Your contributions to the partnership will be missed, and we all wish you the best of luck in your retirement. In this morning's press release, we reported Westlake Partners' second quarter 2026 net income of $14 million, or 40 cents per unit. Consolidated net income, including OPCO's earnings, was $82 million on consolidated net sales of $297 million.

John？謝謝你，Steve。你對本合夥企業的貢獻將令人懷念，我們也祝福你退休生活一切順利。在今天上午的新聞稿中，我們公布 Westlake Partners 2026 年第二季淨利為 1,400 萬美元，或每單位 0.40 美元。合併淨利（包含 OPCO 的獲利）為 8,200 萬美元，合併淨銷售額為 2.97 億美元。

The partnership had distributable cash flow for the quarter of $18 million or 50 cents per unit. Second quarter 2026 net income for Westlake Partners of $14 million was essentially in line with the second quarter 2025 partnership net income.

本合夥企業本季可分配現金流為 1,800 萬美元，或每單位 0.50 美元。Westlake Partners 2026 年第二季淨利 1,400 萬美元，基本上與 2025 年第二季本合夥企業的淨利相當。

Distributable cash flow of $18 million for the second quarter of 2026 increased by $3 million compared to the second quarter of 2025 due to the higher production and sales volume and lower maintenance capital expenditures as a result of last year's Petro-1 plan termination. turnaround.

2026 年第二季可分配現金流 1,800 萬美元，較 2025 年第二季增加 300 萬美元，主要因產量與銷售量提高，以及由於去年 Petro-1 計畫終止之歲修（turnaround）而使維護性資本支出降低。

On a sequential basis, net income for Westlake Partners of $14 million in the second quarter of 2026 was in line with the first quarter on relatively stable production and sales volume. Sequentially, our trailing 12-month coverage ratio improved to 1.04 times from 1.0 times, reflecting the aging out of the impact of the Petra 1 turnaround that occurred in the first half of 2025.

以季比基礎來看，Westlake Partners 於 2026 年第二季的淨利為 1,400 萬美元，在產量與銷售量相對穩定的情況下，與第一季大致持平。按季比較，我們過去 12 個月的分配覆蓋率由 1.0 倍提升至 1.04 倍，反映 2025 年上半年發生的 Petra 1 停機檢修影響已逐步淡出。

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 $93 million. Long-term debt at the end of the quarter was $400 million, of which $377 million was at the partnership, and the remaining $23 million was at OPCO.

接著我們把焦點轉向資產負債表與現金流。截至第二季末，透過我們與 Westlake 的投資管理協議，我們的合併現金餘額及現金投資合計為 9,300 萬美元。季末長期負債為 4 億美元，其中 3.77 億美元在合夥企業層級，其餘 2,300 萬美元在 OPCO。

In the second quarter of 2026, Opco spent $12 million on capital expenditures. We maintained our strong leverage metrics with a consolidated leverage ratio of approximately one time. Last month, both OPCO and the Partnership extended their existing revolver agreements with Westlake for an additional four years through 2031.

2026 年第二季，Opco 的資本支出為 1,200 萬美元。我們維持強勁的槓桿指標，合併槓桿比率約為 1 倍。上個月，OPCO 與合夥企業均將其與 Westlake 的既有循環信貸協議延長四年，至 2031 年。

Additionally, we successfully negotiated a 10 basis point reduction in the associated interest rate. As was the case earlier this year when Westlake extended our ethylene supply agreement, we believe that the revolver extension demonstrates the critical nature of OPCO's supply of Ethylene to their operations and their commitment to support OPCO's continued safe, reliable operations through stable, predictable, cash-free operations. cash flows.

此外，我們也成功協商將相關利率下調 10 個基點。如同今年稍早 Westlake 延長我們的乙烯供應協議一樣，我們認為此次循環信貸展期顯示 OPCO 對其營運供應乙烯的重要性，以及其承諾透過穩定、可預測、無現金支出的營運現金流，支持 OPCO 持續安全且可靠地運作。

On August 3, 2026, we announced a quarterly distribution of 47.14 cents per unit with respect to the second quarter of 2026. Since our IPO in 2014, the partnership has made 48 consecutive quarterly distributions to our unit holders, and we have grown distributions 71% since the partnership's original minimum quarterly distribution of 27.5 cents per unit.

2026 年 8 月 3 日，我們宣布就 2026 年第二季每單位配發季度分配金 47.14 美分。自 2014 年 IPO 以來，合夥企業已連續 48 個季度向單位持有人配發分配金，且自合夥企業原始最低季度分配金每單位 27.5 美分以來，分配金累計成長 71%。

The partnership's second quarter distribution will be paid on August 28, 2026, to unit holders of record on August 13, 2026. The partnership's 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.

合夥企業第二季分配金將於 2026 年 8 月 28 日支付給截至 2026 年 8 月 13 日登記在冊的單位持有人。合夥企業可預期的、以費用為基礎的現金流在當前經濟環境中持續展現其優勢，並以我們獲利與現金流的一致性作為差異化特點。

Looking back, since our IPO in July of 2014, we have maintained a cumulative distribution coverage ratio in excess of one times, and with the partnership's stability in cash flows, we were able to sustain our current distribution without the need to access the capital markets. For modeling purposes, we have no plan turnaround in 2026.

回顧自 2014 年 7 月 IPO 以來，我們一直維持累計分配覆蓋率高於 1 倍；憑藉合夥企業現金流的穩定性，我們得以在無需進入資本市場的情況下維持目前的分配水準。就模型假設而言，我們在 2026 年沒有計畫性停機檢修。

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

現在我想把電話交回給 Jean-Marc，請他做一些結語。Jean-Marc？謝謝你，John。

We are pleased with the partnership's financial and operational performance during the second quarter. Solid operating rates at OpCo's ethylene facilities during the quarter resulted in a quarterly coverage ratio of 1.0 times.

我們對合夥企業在第二季的財務與營運表現感到滿意。本季 OpCo 乙烯設施的穩健開工率使季度分配覆蓋率達到 1.0 倍。

Turning to our outlook, the conflict in the Middle East has created increased volatility in chemical prices, including SELNs. However, the partnership's ethylene margins remain largely immune to the heightened market price volatility. Thanks to its Ethylene supply agreement with Westlake, that provides for a fixed margin of 10 cents per pound on 95% of our Ethylene production.

談到我們的展望，中東衝突導致化學品價格（包括 SELNs）波動加劇。然而，合夥企業的乙烯利差在很大程度上不受市場價格波動升高的影響。這要歸功於我們與 Westlake 的乙烯供應協議，該協議規定我們 95% 的乙烯產量享有每磅 10 美分的固定利差。

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 levels of growth in the future, including increases of our ownership interest of OpCo, acquisitions of other qualified income streams, organic growth opportunities, such as expansions of our current land facilities, and negotiation of a higher fixed margin in our SEL and SACE agreement with Westlake.

就資本結構而言，我們維持強健的資產負債表與保守的財務及槓桿指標。在持續因應市場環境的同時，我們將透過未來四個層級的成長來評估機會，包括提高我們對 OpCo 的持股比例、收購其他合格的收益來源、有機成長機會（例如擴建我們現有的土地與設施），以及與 Westlake 就我們的 SEL 與 SACE 協議協商更高的固定利差。

We remain focused on our ability to continue to provide long-term value and distributions to our unit holders. 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. Thank you very much for listening to our second quarter earnings call.

我們仍專注於持續為單位持有人提供長期價值與分配。一如既往，我們將持續聚焦安全營運，並在更廣泛的永續努力中，善盡我們工作與生活所在地的環境管理責任。非常感謝各位收聽我們第二季的財報電話會議。

Now I will turn the call back over to Jeff.

現在我將把電話交回給 Jeff。

Thank you, John Mark. 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'll provide instructions to access the replay at the end of the call. Ari, we will now take questions.

謝謝你，John Mark。在開始提問之前，我想提醒各位，本次電話會議的重播將於會議結束兩小時後提供。我們會在會議結束時提供存取重播的指引。Ari，我們現在開始提問。

(Operator Instructions)

(接線員指示)

I'm showing no questions at this time, so I will turn the call back over to Jeff Holley.

目前顯示沒有提問，因此我將把電話交回給 Jeff Holley。

Thanks. Thank you again for participating in today's call. We hope you'll join us for our next conference call to discuss our third quarter 2026 results.

謝謝。再次感謝各位參與今天的電話會議。我們希望各位能參加下一次電話會議，屆時將討論我們 2026 年第三季的業績。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. This live transcript is auto generated without human intervention or review.

感謝各位參與今天的會議。本節目到此結束。您現在可以掛線。本即時逐字稿為自動生成，未經人工介入或審閱。