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- **Ethylene Agreement Stability**: Renewed 2027 contract maintains 95% production coverage, supporting $0.4714 quarterly distribution
- **Turnaround Impact**: Third-quarter distributable cash flow temporarily down $3M YoY due to planned maintenance, but production now fully restored
- **Financial Strength**: 1.1x cumulative distribution coverage since 2014 IPO; 1x leverage ratio; $51M cash
- **Growth Levers**: Exploring ownership expansion, organic ethylene facility expansion, and margin renegotiation

**【Management Opening Remarks】**
- Westlake Chemical Partners reported third-quarter 2025 net income of $15 million ($0.42 per unit), with distributable cash flow of $15 million ($0.42 per unit). 
- The Partnership completed a planned turnaround at its Lake Charles ethylene unit, which improved production efficiency.
- A quarterly distribution of $0.4714 per unit was announced, maintaining the Partnership's streak of 45 consecutive distributions since IPO in 2014.

**【CEO Commentary】**
- CEO Jean-Marc Gilson highlighted the Ethylene Sales Agreement renewal through 2027, maintaining stable cash flows despite global macroeconomic challenges.
- The fixed-margin agreement covers 95% of OpCo's production, providing resilience against market volatility.
- Management emphasized operational stability and balance sheet strength (leverage ratio ~1x), supporting consistent distributions.

**【CFO Financial Commentary】**
- CFO Steve Bender detailed financial performance:
  - Consolidated net income: $86 million on $309 million in sales
  - Distributable cash flow decreased $3 million YoY due to higher maintenance capex
  - Cash and investments: $51 million; long-term debt: $400 million
  - No planned turnarounds for remainder of 2025 or 2026
- Partnership maintains 1.1x cumulative distribution coverage ratio since IPO.

**【Q&A Highlights】**
- **Distributable Cash Flow Concerns**: CFO clarified that the turnaround caused temporary underperformance, but:
  - Production has resumed at full capacity
  - Operating surplus is rebuilding
  - Distribution coverage will improve as turnaround costs are one-time
- Management reaffirmed confidence in long-term cash flow stability despite macro challenges.

Westlake Chemical Partners LP Common Units (WLKP) Q3 2025 Earnings Call Transcript

Net Westlake

Net Co-Product, Ethylene and Other-Third Parties

WLKP

WLKP fundamentals

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