WLKP - Earnings call transcript Q4 2024 | Westlake Chemical Partners LP

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions]

As a reminder, this conference is being recorded today, February 24, 2025. to Westlake call and Chemical like host, to Treasurer. now Zoeller, John Partners would turn over the your I Vice President Sir, begin. you may

Johnathan Zoeller

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

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

refer we are Additionally, Chemical Definitions to to Westlake cash flow, website. MLP terms of these distributable Partnership's referring cash Partners' the are distributable flow. on when available we

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

section Partners web full available results. at Westlake is of issued release This details and operating Release year the page morning, This and quarter press our Press wlkpartners.com. in our financial with of a XXXX fourth document

the hours accessed will conclusion be replay This this website. the A after via replay of can today's available beginning call. call X be Partnership of

accurate XXXX, information that be are therefore, you may of XX, any replay. that and of Please the speaks February no of this time-sensitive as longer information as time reported advised call today, only note on

live that through system this accessed being web conference can an be our finally call broadcast on webcast that is wlkpartners.com. advise I you would Internet at page

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

Jean-Marc Gilson

Good you, Westlake joining or In net full full afternoon, for full net you press we $XX income income $XXX reported year year OpCo Consolidated to was John. our thank quarter of the Thank XXXX $X.XX XXXX. per discuss everyone, and XXXX release, results. Partners this million for fourth and morning's year us unit. including million

sales ethylene volatility risk. Westlake investment-grade results Partners' to each sales for and financial This cash from production demonstrate produces of planned stability year, predictable XX% and combined margin other our structure, with the stable market earnings from continue us This generated ethylene we annual Westlake, unitholders. value was production our fixed to our our agreement insulating sponsor, another margin in results generated The and year by Westlake contract us distributions deliver forms the flow our unitholders. evident with delivered as foundation for fixed sustained stable XXXX to cash solid fee-based to of flows. long-term

without distribution quarter's is consecutive This the quarterly since reductions. in IPO distribution XXXX, July of our any XXnd

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

Steven Bender

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

primarily in higher of net of SG&A income by Partners million. million $XX XXXX. XXXX quarter by income increased the fourth $XX income million lower of to for Westlake compared driven $X XXXX expense Partnership net the was quarter Fourth quarter net fourth The

of quarter the $X and turnaround. by for to of turnaround due $XX support the flow flow capital higher XXXX Petro maintenance $XX distributable of the million reserve cash fourth quarter decreased cash XXXX planned compared X contributions million primarily fourth Distributable million to to

full increased by full in third-party net million. million the XXXX to income year income due For and year net to prices Partnership $X of which $XX per or to unit, XXXX, income of compared million sales was was the The net $XX increase ethylene attributable higher $X.XX margins.

to million XXXX MLP to $XX the year of income. million increased cash XXXX for higher of year flow full million Our distributable cash of compared flow MLP $XX distributable by due full net $X

for Our year full of distribution XXXX was the coverage X.XXx.

attention through cash sheet we and had cash and investment At quarter, with of fourth agreement to $XXX balance million. our the management Turning Westlake our investments the cash consolidated flows. the totaling end

was debt $XX $XX of strong of remaining million, at In the the was million the capital XXXX, which spent quarter end leverage at metrics million $XXX and Partnership million Xx. $XXX expenditures. OpCo below at the Long-term We leverage a OpCo. our ratio was consolidated maintained on with

since and per fourth will be distribution Partnership's quarterly XX Partnership's a announced to unitholders, fourth per we record $X.XXXX unitholders quarter of unit on our to the distributions paid XX% has distribution with of our minimum Since quarterly to respect X, XXXX. The On distributions the XXXX. in IPO the XXXX, XX original unit. have grown February quarter January February XXXX, quarterly consecutive $X.XXX of distribution of we Partnership XX, made

today's flows. consistency economic fee-based the beneficial by in to is earnings our environment The Partnership's of differentiated and and cash predictable prove flow continues cash

to since the maintained of distribution Looking stability approximately capital were Partnership's we have distribution able our the access to July a cash coverage flows. our XXXX, the back of and ratio We sustain in cumulative and without X.Xx, need markets. IPO current

one charge at In and in XX included The Westlake ratio began unit has end and this the cost reserved of for coverage would result. planned commence recovering. this And similar and funded turnaround. one, such the we Louisiana. the Charles, turnaround we at as for turnaround, a impacted our been we Lake in is is For distribution of we fully modeling This the turnaround been for had before as turnaround we ethylene XXXX amount last to where the January has X to turnaround prior period approximately this expect in planned Petro a years purposes, projected have days.

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

Jean-Marc Gilson

you, Steve. Thank

and the We business Partnership's associated and ethylene are agreement benefit and year financial The fourth quarter model our performance the through and pleased Partnership flows as earnings the with through predictable demonstrate sales flows. and provisions the its of operational cash the provide that long-term our a whole. stability protective cash

improving of third-party and ethylene and favorable ethylene During financial the ethylene benefit conditions. which our prices far, sales margin. was from in through sales Through XXXX, spot supply-demand once XXXX, Partnership relatively levels, OpCo, to benefit conditions prices Thus higher and are prices performance again North at improved American tightening a should these again. due industry to margins margins third-party able

with leverage Turning balance metrics. financial to our and a maintain capital sheet, conservative strong structure. We

conditions, ethylene acquisitions we continue our margin as interest sales we Westlake. income market our of negotiation our and other of streams, levers navigate to higher of via evaluate will X in facilities, organic including of agreement growth ownership As of fixed current our expansions a of growth opportunities such with in qualifying ethylene OpCo, future, the increases opportunities

to continue to unitholders. ability provide our long-term distributions our on focused remain value to and We

live operations on work broader with to as continue sustainability being of efforts. of will environment our where stewards good along part the safe focus we always, and As we

and year very earnings fourth Thank listening our much you for full XXXX call. quarter to

will I the to turn over Now call John. back

Johnathan Zoeller

Thank you, Jean-Marc.

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

replay the the to access at call. instructions We will provide of the end

Kevin, we take questions. will now

Operator

Blair [Operator Instructions] First question TPH. from comes with Matthew

Matthew Blair

WLK the further? interested ending cut about Would arrangement there call, parent call, cuts targets MLP a way as some talk in in costs incremental cost the On Westlake was XXXX. to be the

Steven Bender

And the Steve. administrative that Partnership, multiple a multiple. provided value continues the to a would the as look to administer at Westlake, EBIT Partnership the while value look you it look Partnership to at to opportunities has operations from as when the it's at I brought proposition perspective really of Matthew, say provide there value has are incremental So EBITDA look the proposition the at Partnership, costs we you the we for forward.

So cost. value therefore, administrative an proposition offsets while the it cost, is that administrative

control not consideration. reasons, for that would So be a cost

Matthew Blair

you could XX-day planned expected coverage I mentioned impact turnaround? think that this down. you the more about from little the then financial a And Okay. bit ratio talk would come

this a headwind So as per to temporary about think flow? is things like earnings is unit the way on and cash

Steven Bender

Yes.

think this so from during historically, as about an Matthew, And the period. take that you of coverage loss impact does production the

and perspective, now. in net capital a that fully upcoming turnaround. from course, already midst have today, we're as we funded right turnaround to speak of reserved And we've the Of this

recover. fully after stream the I comes of expect this turnaround, earnings but on would ought So as coverage to unit the the end impact, back

forward the being as resume. target we set so we X.Xx, beyond, coverage And that I and we 'XX look expect should have into

turnaround this years exact of back back expect that. If you is of performance. over same since we've earnings recovering an kind turnarounds, had performance entity the XX the kind go have continue and of with years, was to the this formed full have in this This we many number and same type not associated I after and and of turnaround, to is it expect a unusual exhibited production XXXX, we a performance the the with

Operator

session to this has now I the turn will call over now back Q&A At ended. time, Zoeller. the John

Johnathan Zoeller

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

Operator

you participating Conference Fourth Thank in Year and for XXXX Full Earnings Call. Chemical Partners today's Quarter Westlake

for after Eastern day. XXXX. Goodbye, has the this p.m. may can will be As via website. call a accessed replay reminder, Partnership be and have on hours Monday, wonderful ended X the a and until beginning March call be X, XX:XX accessed The Time replay available

Westlake Chemical Partners (WLKP) 24 Feb 252024 Q4 Earnings call transcript