WLKP - Earnings call transcript Q3 2024 | Westlake Chemical Partners LP

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Operator

Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today, November 5, 2024. I would now like to turn the call over to today's host, John Zoeller, Westlake Chemical Partners Vice President and Treasurer. begin. may you Sir,

Johnathan Zoeller

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

Westlake the Corporation; to of Partnership. we which references LP, this refer ourselves our as assets. parent Partners OpCo to call, certain owns refer company, to References Westlake OpCo or and Westlake to Partnership, Chemical to refer During Westlake olefins and Westlake the subsidiary a

website. Please we These or our reviewing are risks management Investor suggest to will about available our contain by thus Westlake results release management's factors as time are discuss these are when will you of terms available of statements encourage Press XXXX, beliefs that Additionally, longer today, MLP cautionary is website. This cash certain would that be that Relations Release on our after system and of information page can our speaks predictions which Westlake accurate live This learn the call. to XXXX as well by actual expectations November only statements are this uncertainties. topics a We beginning you morning, to Definitions and webcast to the referring Partnership the this The web available through could Chemical press and Partnership's no the based accessed an results. the note or that via X differ call may is our going X, of broadcast be of flow, be available subject replay at today's document to regulatory at hours that available is web on to Internet as to finally lead of conference our are quarter the in can filings, information time-sensitive issued made the in of management. currently advise with forward-looking call website. Today, being financial on we on also page and third information distributable you refer reported wlkpartners.com. A wlkpartners.com. replay forward-looking more distributable of call any on Partners' accessed therefore, as this is advised Partners conclusion cash details that be that information section assumptions replay. I operating flow.

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

Jean-Marc Gilson

Thank press our you, unit. net earnings price income benefited John. we from and Good third sales Compared of XXXX, the afternoon, us results. In discuss quarter joining margins. of everyone, or XXXX third-party sales for release, this XXXX quarter higher $X.XX morning's third Partners' quarter and Westlake of to our thank quarter million reported ethylene third you per XXXX $XX third to and

quarter to of quarter. these volume turnaround an in for attractive Petro third X margins, also first to sales unit at third-party year to opportunistically decision ethylene our the XXXX the into planned capture better the made planned In effort we the the defer while shifting third-party later

since quarter, highest were generate cash to able result, distributable operating quarterly also we third during a to surplus. flow adding As the our while our XXXX

enabled business business for Steve, of stability $X.XXX results the in traded paired call per over now celebrated will Over reductions. The without quarter, has volatility like have high enabled to time history quarter. third degree Partnership's master Westlake of from our partnership. distribution fixed we ethylene to our turn any unit. a minimum of that would the original of by we consecutive by XX% During us grown market risk. our year is publicly production the model other our we and XXXX, made XXth the margin XX minimizes our flow the and to period, quarterly who quarterly IPO distributions the Since Steve? deliver distributions. I sales as Partners distribution stability limited operating which more cash of provide The predictability long agreement, financial on reliable with a detail

Steven Bender

$XXX Jean-Marc, Consolidated you, $XX The quarter Partnership per reported sales release, In had consolidated including of net and unit. Thank income Partners' for $XXX per million $X.XX cash $X.XX quarter million or income, afternoon, everyone. of of press $XX good this net earnings, the unit. or third net OpCo's Westlake million we morning's was distributable flow million. on XXXX

to was quarter Partners for net Partnership third the the higher Compared OpCo's XXXX, and higher of Partnership production than higher income. from income quarter the XXXX benefited $X compared Westlake flow volumes, third-party sales cash third volumes. Distributable prices The sales million higher primarily to XXXX net due of third quarter and third by margins ethylene $XX quarter million XXXX third-party volumes, and increased of XXXX sales ethylene and to of margins. million sales the sales third third-party the higher $X for price of quarter $XX million

of $XX distribution million. will with million of Partnership's at the end strong the third sheet remaining quarter maintained leverage unitholders to third of XXXX. and consolidated expenditures. per debt which of of was quarter our consolidated we The management at capital a October a quarter, Westlake $XX flows. leverage XXXX. balance OpCo. our attention quarterly with $X.XXXX had November to below the $XXX Long-term of XX, to cash Xx. On XX, XXXX, spent third the record paid your on unit was cash quarter investment million quarter and balance cash million was on XXXX, the XX, In respect third Partnership we be announced We through and ratio million, the Turning end the agreement at totaling $XXX OpCo the XXXX, with distribution metrics November At investments the $XXX of

unit XXXX Louisiana Charles, remainder it first January until this XX and expect following at begin for currently XXXX our Petro at decision For last defer modeling days. the X no of Lake of planned the we XXXX. to turnaround for We quarter the the approximately have to purposes, end in ethylene of to turnaround turnarounds our

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

Jean-Marc Gilson

Steve. you, Thank

We quarter. with the Partnership's performance financial are pleased and third operational in the

prices margins timing to volume X elevated from other our fourth margins. quarter, quarter. due sales far, and and third-party levels improved third-party and the in and in decreased from in events quarter, turnaround ethylene third-party Thus highest the the and prices Petro third pricing improved shifted have the sales opportunistically part the response, ethylene the of During benefit the weather to sales to at we in margins quarterly production average outages our years, producers. In

we for However, of XXXX. the third-party sales relatively little have volume planned rest

which the unplanned continue stable unpredictable, our predictable provides predictable While cash flow production, to overall structure ups planned ethylene from as turnarounds. flows and sales well XX% a and our remains contract macroeconomic agreement, fee-based cash through downs deliver OpCo's with economic will Westlake take-or-pay global environment and of for as

very our call. safe we stewards the As you listening of along and always, on efforts. Thank environment part third broader good being to where continue of with operations, our quarter sustainability for will focus earnings work to much live we as

will call turn John. to the I over Now back

Johnathan Zoeller

Thank you, Jean-Marc.

will available to like would teleconference call I remind ended. after the this hours you replay X questions, taking begin has we be that of a Before

end the will questions. take of call. Chergan, we'll We now instructions provide at replay to the access the

Operator

comes TPH. Blair question the Instructions] Our Matthew from first line from [Operator of

Matthew Blair

I as touch comments sales Steve, quarter. the that volumes it prepared give we quarter, And Jean-Marc significant this for was? to shifted just and into ethane sense you should these third want possible from volumes? lower the from some fourth as mentioned spot to a then of well expect on margins that the the third-party Is reduced impact, both us how an cracking

Steven Bender

Yes.

we in market we to volume saw in in the into we the market. selling to the left had sell try to move margins sell to the was Matthew, a the when third of So maximize shift really strategic up remaining more quarter what

you X% markets. we over As the the of year course the third-party recall, into sell

been so XXXX has sell need what to in And majority the sold. of now we

sell there's fourth little to very the So left in quarter.

we those in very be left the declined the third, quarter even so in fourth the though sold margins little relative quarter. And have have fourth to in to

X that in margin lower in have QX. effect will really results So our

Matthew Blair

Okay.

we of you for you restarting the drop? MLP interest distribution then increased that in of an growth and equities? would good. are Sounds put sort as XXXX, into any And chance asset sensing What look restarting

Steven Bender

Yes.

changed really to markets and significantly to we'll that market continue XX-year continue recognize a and in we understanding at the the continue assess We have interest assess for has and we'll appetite the period our IPO in So all look options. strong consider options. all to interest the since and

into that growth, predicated attractive have started at find an on price. We ability to our investors others that's noticed distribution accretive come their the unit and to have

look transactable, there available options with dialogue investors that good to pursue we continue and continue find all to that and us. see we'll have we'll opportunities out are make can So a and if but to that

Operator

I'm at Zoeller now showing call remarks. no to to this any further time. I John questions turn for like over back the closing would

Johnathan Zoeller

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

Operator

participation your for conclude does the program. you Thank today's in conference. This

You now disconnect. may

Westlake Chemical Partners (WLKP) 5 Nov 242024 Q3 Earnings call transcript