Financial Performance - Total net sales for the three months ended March 31, 2025, were $237.629 million, a decrease of 16.5% compared to $284.673 million for the same period in 2024[10] - Gross profit for the first quarter of 2025 was $54.081 million, down 47% from $102.180 million in the first quarter of 2024[10] - Net income attributable to Westlake Chemical Partners LP for Q1 2025 was $4.948 million, a decline of 66.7% from $14.833 million in Q1 2024[10] - The Partnership's net income attributable for the three months ended March 31, 2025, was $4,948,000, a decrease of 66.7% compared to $14,833,000 for the same period in 2024[40] - For the three months ended March 31, 2025, net income was $42,309, a decrease of 52.8% compared to $89,646 for the same period in 2024[83] Cash and Liquidity - Cash and cash equivalents decreased to $49.624 million as of March 31, 2025, from $58.316 million at the end of 2024, representing a decline of 14.5%[18] - The company reported a net cash provided by operating activities of $45.781 million for Q1 2025, down from $104.565 million in Q1 2024, a decrease of 56.3%[18] - Distributions to unitholders for the first quarter of 2025 totaled $16.611 million, compared to $16.607 million in the same period of 2024, showing a marginal increase[18] - The Partnership's distribution in excess of net income for the three months ended March 31, 2025, was $11,663,000, compared to $1,774,000 for the same period in 2024, indicating a significant increase in distribution pressure[40] Assets and Liabilities - Total assets increased to $1.371 billion as of March 31, 2025, compared to $1.288 billion at the end of 2024, reflecting a growth of 6.4%[8] - Total liabilities rose to $568.246 million as of March 31, 2025, up from $458.642 million at the end of 2024, indicating a 24% increase[8] - The Partnership's total equity decreased to $803.1 million as of March 31, 2025, from $829.3 million at the end of 2024, a decline of 3.2%[8] - Accrued and other liabilities increased significantly to $63,336 as of March 31, 2025, from $16,920 as of December 31, 2024[75] Accounts Receivable and Inventory - Accounts receivable from trade customers increased to $13,310,000 as of March 31, 2025, from $11,757,000 as of December 31, 2024, representing a growth of 13.2%[33] - Total inventories decreased to $2,733,000 as of March 31, 2025, down from $4,058,000 as of December 31, 2024, indicating a decline of 32.7%[34] - Accounts receivable from Westlake rose to $55,051 as of March 31, 2025, compared to $31,975 as of December 31, 2024, indicating a significant increase of 72.5%[59] Related Party Transactions - Sales to related parties (Westlake) for the three months ended March 31, 2025, were $190,781,000, down 19.0% from $235,209,000 in 2024[49] - Charges for feedstock purchased from Westlake included in cost of sales were $85,499,000 for the three months ended March 31, 2025, compared to $78,537,000 in 2024, reflecting an increase of 8.3%[50] - Interest expense related to debt payable to Westlake decreased to $5,537 for the three months ended March 31, 2025, from $6,581 in 2024, a reduction of 15.9%[65] - Operating lease rentals paid to Westlake were $338 for the three months ended March 31, 2025, down from $425 in 2024, a decrease of 20.5%[62] Operational Focus - The company plans to continue focusing on the development of ethylene production facilities and related assets to enhance operational efficiency and market presence[22]

Financial Data and Key Metrics Changes - Westlake Partners reported a net income of $5 million or $0.14 per unit for Q1 2025, which is $10 million lower than Q1 2024 due to lower production and sales volume from the planned turnaround at Petro one [6][7] - Consolidated net income, including OpCo's earnings, was $42 million on consolidated net sales of $238 million [7] - Distributable cash flow for the quarter was $5 million or $0.13 per unit, a decrease of $12 million compared to Q1 2024 [7][8] Business Line Data and Key Metrics Changes - The planned turnaround at the Petro one ethylene unit in Lake Charles, Louisiana, resulted in lower production and sales volume, impacting overall earnings [6][7] - The partnership maintained a strong leverage ratio of approximately one times, with long-term debt at $400 million [8] Market Data and Key Metrics Changes - The company noted that global trade tensions have intensified, creating uncertainty for businesses and investors, which may lead to market volatility [10][11] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquiring other qualified income streams, and organic growth opportunities such as facility expansions [11] - The ethylene sales agreement provides a predictable fee-based cash flow structure, supporting financial performance and distributions [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cash flows due to the fixed margin ethylene sales agreement, which mitigates market volatility [6][10] - The company anticipates solid production levels following the successful completion of the Petro one turnaround [10] Other Important Information - The partnership has maintained a cumulative distribution coverage ratio of approximately 1.1 times since its IPO in 2014, with 43 consecutive quarterly distributions [8][9] - The first quarter distribution of $0.04 per unit will be paid on May 29, 2025 [9] Q&A Session Summary Question: The financial impact of the Q1 turnaround at TETRA one seems significant. Can you explain? - Management indicated that the impact was as planned, with the unit down for February and March, and elevated interest rates may also be a factor affecting financial performance [15][16] Question: Is there still enough valuation difference to justify keeping Westlake healthy around? - Management noted that while the parent company has seen some valuation compression, the value proposition remains strong over the business cycle [17][18]

Financial Data and Key Metrics Changes - Westlake Partners reported a net income of $5 million or $0.14 per unit for Q1 2025, which is $10 million lower than Q1 2024 due to lower production and sales volume from the planned turnaround at Petro one [6][7] - Consolidated net income, including OpCo's earnings, was $42 million on consolidated net sales of $238 million [7] - Distributable cash flow for the quarter was $5 million or $0.13 per unit, a decrease of $12 million compared to Q1 2024 [7][8] Business Line Data and Key Metrics Changes - The planned turnaround at the Petro one ethylene unit in Lake Charles, Louisiana, resulted in lower production and sales volume, impacting overall earnings [6][7] - The partnership maintained a strong leverage ratio of approximately one times, with long-term debt at $400 million [8] Market Data and Key Metrics Changes - The partnership's predictable fee-based cash flow structure continues to provide stability amid global trade tensions and market volatility [10][11] - The ethylene sales agreement with Westlake ensures predictable cash flows, covering 95% of OpCo's production [10][11] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquiring other qualified income streams, and organic growth through facility expansions [11] - The focus remains on providing long-term value and distributions to unitholders while maintaining safe operations and environmental stewardship [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged intensified global trade tensions creating uncertainty but emphasized the stability provided by the ethylene sales agreement [10] - The successful completion of the Petro one turnaround positions the company for solid production levels in the future [10][11] Other Important Information - The partnership has maintained 43 consecutive quarterly distributions since its IPO in July 2014, with a cumulative distribution coverage ratio of approximately 1.1 times [8][9] - The first quarter distribution of $0.04 per unit will be paid on May 29, 2025, to unitholders of record on May 13, 2025 [9] Q&A Session Summary Question: Financial impact of the Q1 turnaround at TETRA one - Management indicated that the impact was as planned, with the unit down for February and March, and elevated interest rates may have affected loan obligations [15][16] Question: Evaluation difference between Westlake and Westlake LP - Management noted that while the parent company has seen valuation compression, the value proposition remains strong over the business cycle, and the valuation differential remains elevated [17][18]

Financial Data and Key Metrics Changes - Westlake Partners reported a net income of $5 million or $0.14 per unit for Q1 2025, which is $10 million lower than Q1 2024 due to lower production and sales volume from the planned turnaround at Petro one [6][8] - Consolidated net income, including OpCo's earnings, was $42 million on consolidated net sales of $238 million [8] - Distributable cash flow for the quarter was $5 million or $0.13 per unit, a decrease of $12 million compared to Q1 2024 [8][10] Business Line Data and Key Metrics Changes - The planned turnaround at the Petro one ethylene unit in Lake Charles, Louisiana, resulted in lower production and sales volume, impacting overall earnings [6][8] - The partnership maintained a strong leverage ratio of approximately one times, with long-term debt at $400 million [9] Market Data and Key Metrics Changes - The company noted that global trade tensions have intensified, creating uncertainty for businesses and investors, which may lead to market volatility [11] - The ethylene sales agreement provides a predictable fee-based cash flow structure, supporting financial performance despite market conditions [11] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquisitions of other income streams, and organic growth through facility expansions [12] - The focus remains on maintaining a strong balance sheet and conservative financial metrics while providing long-term value and distributions to unitholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cash flows due to the fixed margin ethylene sales agreement, which mitigates market volatility [6][11] - The successful completion of the Petro one turnaround positions the company for solid production levels in the future [12] Other Important Information - The partnership has made 43 consecutive quarterly distributions since its IPO in July 2014, with a cumulative distribution coverage ratio of approximately 1.1 times [10][12] - The first quarter distribution of $0.04 per unit will be paid on May 29, 2025 [10] Q&A Session Summary Question: The financial impact of the Q1 turnaround at TETRA one seems significant. Can you explain? - Management indicated that the impact was as planned, with the unit down for February and March, and elevated interest rates may have also affected performance [17][18] Question: Is there still enough valuation difference to justify keeping Westlake healthy around? - Management noted that while the parent company has seen some valuation compression, the value proposition remains strong over the business cycle [19][20]

[First Quarter 2025 Results Overview](index=1&type=section&id=first-quarter-2025-results-overview) Westlake Chemical Partners LP experienced a significant decline in Q1 2025 financial performance due to the planned Petro 1 turnaround, impacting net income and cash flows [Key Financial Highlights](index=1&type=section&id=key-financial-highlights) Westlake Chemical Partners LP reported a significant decrease in net income, cash flows from operating activities, and MLP distributable cash flow for Q1 2025 compared to Q1 2024 and Q4 2024, primarily due to the planned Petro 1 turnaround Key Financial Highlights (in millions of dollars) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | Q4 2024 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | :------ | :----------- | | Net income attributable to Partnership | $4.9 | $14.8 | -$9.9 | $15.0 (approx) | -$10.1 | | Cash flows from operating activities | $45.8 | $104.6 | -$58.8 | $132.5 | -$86.7 | | MLP distributable cash flow | $4.7 | $16.9 | -$12.2 | $15.0 | -$10.3 | - The decrease in financial performance was primarily attributed to lower production and sales volume and higher maintenance capital expenditures resulting from the planned Petro 1 turnaround[2](index=2&type=chunk)[3](index=3&type=chunk) [Management Commentary & Outlook](index=1&type=section&id=management-commentary-and-outlook) The CEO confirmed that the negative impact on Q1 2025 distributable cash flow and coverage ratio was expected due to the Petro 1 turnaround, which began in late January and extended into early April. The facility has since returned to full operating rates, and the Partnership anticipates a return to strong historical levels for distributable cash flow and coverage ratio in coming quarters, with no further turnarounds planned for several years - The planned turnaround at the Petro 1 ethylene facility in Lake Charles, Louisiana, negatively impacted Q1 2025 distributable cash flow and coverage ratio[4](index=4&type=chunk) - Petro 1 returned to full operating rates in April 2025 and has been operating well since[4](index=4&type=chunk) - Management expects distributable cash flow and coverage ratio to return to strong historical levels in coming quarters, with no further turnarounds planned for several years[4](index=4&type=chunk) [Quarterly Distribution](index=1&type=section&id=quarterly-distribution) The Partnership declared its 43rd consecutive quarterly distribution of $0.4714 per common unit for Q1 2025. The trailing twelve-month coverage ratio for Q1 2025 was 0.82x, a decrease from 1.01x in Q4 2024, primarily due to the Petro 1 turnaround Quarterly Distribution and Coverage Ratio | Metric | Q1 2025 | Q4 2024 | | :-------------------------------- | :------ | :------ | | Quarterly distribution per unit | $0.4714 | $0.4714 | | Trailing twelve-month coverage ratio | 0.82x | 1.01x | - The decrease in the coverage ratio was attributed to the planned Petro 1 turnaround[4](index=4&type=chunk) [Company Information](index=1&type=section&id=company-information) Westlake Chemical Partners LP, a limited partnership formed by Westlake Corporation, operates and develops ethylene production facilities, holding a 22.8% interest in Westlake Chemical OpCo LP [Business Description](index=2&type=section&id=business-description) Westlake Chemical Partners LP is a limited partnership formed by Westlake Corporation to operate, acquire, and develop ethylene production facilities and other qualified assets. It holds a 22.8% interest in Westlake Chemical OpCo LP, which owns three ethylene production facilities and an ethylene pipeline - Westlake Chemical Partners LP is a limited partnership formed by Westlake Corporation[9](index=9&type=chunk) - The Partnership owns a **22.8% interest** in Westlake Chemical OpCo LP[9](index=9&type=chunk) - OpCo's assets include three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, and an ethylene pipeline[9](index=9&type=chunk) [Ethylene Sales Agreement](index=1&type=section&id=ethylene-sales-agreement) OpCo's Ethylene Sales Agreement with Westlake Corporation is structured to provide stable and predictable cash flows. Under this agreement, 95% of OpCo's ethylene production is sold to Westlake for a fixed cash margin of $0.10 per pound, after accounting for operating costs, maintenance capital expenditures, and reserves for future turnaround expenditures - The Ethylene Sales Agreement with Westlake is designed to provide stable and predictable cash flows[5](index=5&type=chunk) - **95%** of OpCo's ethylene production is sold to Westlake for a cash margin of **$0.10 per pound**[5](index=5&type=chunk) - The margin is net of operating costs, maintenance capital expenditures, and reserves for future turnaround expenditures[5](index=5&type=chunk) [Financial Statements](index=4&type=section&id=financial-statements) Westlake Partners' Q1 2025 financial statements reveal a significant decline in operational profitability and cash flow compared to the prior year, alongside an increase in total assets and liabilities [Consolidated Statements of Operations](index=4&type=section&id=consolidated-statements-of-operations) For the three months ended March 31, 2025, Westlake Partners reported a significant decline in total net sales, gross profit, and net income attributable to the Partnership compared to the same period in 2024, primarily driven by lower sales to Westlake Corporation Consolidated Statements of Operations (in thousands of dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Total net sales | $237,629 | $284,673 | | Cost of sales | $183,548 | $182,493 | | Gross profit | $54,081 | $102,180 | | Income from operations | $46,607 | $95,103 | | Net income attributable to Westlake Partners | $4,948 | $14,833 | | Net income per limited partner unit | $0.14 | $0.42 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=condensed-consolidated-balance-sheets) As of March 31, 2025, Westlake Partners' total assets increased compared to December 31, 2024, mainly due to a significant rise in other assets, net. Total liabilities also saw a substantial increase, primarily in current liabilities, while total equity decreased Condensed Consolidated Balance Sheets (in thousands of dollars) | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------- | :------------- | :---------------- | | Total current assets | $225,151 | $240,926 | | Property, plant and equipment, net | $903,497 | $903,588 | | Other assets, net | $242,704 | $143,442 | | Total assets | $1,371,352 | $1,287,956 | | Total liabilities | $568,246 | $458,642 | | Total equity | $803,106 | $829,314 | - Current liabilities increased significantly from **$55,372 thousand** at December 31, 2024, to **$164,822 thousand** at March 31, 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=condensed-consolidated-statements-of-cash-flows) For the three months ended March 31, 2025, net cash provided by operating activities decreased significantly compared to the prior year. Investing activities shifted from a net use of cash to a net provision of cash, while net cash used for financing activities also decreased Condensed Consolidated Statements of Cash Flows (in thousands of dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $45,781 | $104,565 | | Net cash provided by (used for) investing activities | $14,044 | ($9,773) | | Net cash used for financing activities | ($68,517) | ($97,651) | | Net decrease in cash and cash equivalents | ($8,692) | ($2,859) | | Cash and cash equivalents at end of period | $49,624 | $55,760 | - The shift in investing activities was primarily due to maturities of investments with Westlake under the Investment Management Agreement[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=non-gaap-financial-measures) Westlake Partners utilizes non-GAAP financial measures, including MLP distributable cash flow, coverage ratio, and EBITDA, to offer investors supplemental insights into its operational performance and financial health [Definition and Purpose](index=2&type=section&id=definition-and-purpose) Westlake Partners uses non-GAAP financial measures such as MLP distributable cash flow, coverage ratio, and EBITDA to provide supplemental information to investors. These measures help assess underlying business trends, operating performance, debt servicing ability, and investment viability, complementing U.S. GAAP results - Non-GAAP measures like MLP distributable cash flow, coverage ratio, and EBITDA provide useful supplemental information for investors[8](index=8&type=chunk) - MLP distributable cash flow is defined as distributable cash flow less amounts attributable to noncontrolling interest and incentive distribution rights holder, not reflecting changes in working capital[8](index=8&type=chunk) - EBITDA is defined as net income before interest expense, income taxes, depreciation, and amortization[8](index=8&type=chunk) [MLP Distributable Cash Flow Reconciliation](index=7&type=section&id=mlp-distributable-cash-flow-reconciliation) The reconciliation shows a significant decrease in MLP distributable cash flow for Q1 2025 compared to both Q4 2024 and Q1 2024, primarily due to higher maintenance capital expenditures and lower net cash provided by operating activities MLP Distributable Cash Flow Reconciliation (in thousands of dollars) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $132,469 | $45,781 | $104,565 | | Net income | $87,387 | $42,309 | $89,646 | | Add: Depreciation, amortization and disposition of property, plant and equipment | $27,582 | $27,171 | $28,265 | | Less: Contribution to turnaround reserves | ($11,829) | ($7,622) | ($11,476) | | Less: Maintenance capital expenditures | ($15,923) | ($20,577) | ($7,749) | | Less: Distributable cash flow attributable to noncontrolling interest in OpCo | ($72,259) | ($36,567) | ($81,794) | | MLP distributable cash flow | $14,958 | $4,714 | $16,892 | [EBITDA Reconciliation](index=8&type=section&id=ebitda-reconciliation) EBITDA for Q1 2025 decreased substantially compared to both Q4 2024 and Q1 2024, reflecting the lower net income and income from operations during the period EBITDA Reconciliation (in thousands of dollars) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $132,469 | $45,781 | $104,565 | | Net income | $87,387 | $42,309 | $89,646 | | Income from operations | $92,025 | $46,607 | $95,103 | | Add: Depreciation and amortization | $27,478 | $27,068 | $27,994 | | EBITDA | $120,838 | $75,021 | $124,431 | [Additional Information](index=2&type=section&id=additional-information) This section provides crucial context regarding forward-looking statements, a qualified notice for tax purposes, and details for the Q1 2025 earnings conference call [Forward-Looking Statements](index=2&type=section&id=forward-looking-statements) The release contains forward-looking statements regarding future events, such as turnaround timing, future distributable cash flow, and market conditions. These statements are subject to significant risks and uncertainties, including operating difficulties, market prices, feedstock costs, and regulatory changes, which could cause actual results to differ materially - Statements about future turnarounds, distributable cash flow, ethylene margins, and feedstock costs are forward-looking[6](index=6&type=chunk) - Actual results may differ materially due to risks such as operating difficulties, sales volume and price, feedstock availability, economic conditions, and regulatory changes[6](index=6&type=chunk) [Qualified Notice](index=2&type=section&id=qualified-notice) This release serves as a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100% of the Partnership's distributions to non-U.S. investors as income effectively connected with a U.S. trade or business, making them subject to federal income tax withholding at the highest applicable effective tax rate - The release is a qualified notice under Treasury Regulation Section 1.1446-4(b)[7](index=7&type=chunk) - **100%** of distributions to non-U.S. investors are considered effectively connected with a U.S. trade or business[7](index=7&type=chunk) - Distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate[7](index=7&type=chunk) [Conference Call Details](index=3&type=section&id=conference-call-details) A conference call to discuss Westlake Chemical Partners' first quarter 2025 results was scheduled for Friday, May 2, 2025, at 1:00 PM Eastern Time. Registration and webcast details were provided - Conference call for Q1 2025 results was held on Friday, May 2, 2025, at **1:00 PM Eastern Time**[10](index=10&type=chunk) - Registration and webcast links were provided for access[10](index=10&type=chunk)

Company Overview - Westlake Chemical Partners (WLKP) shares increased by 5.1% to close at $22.71, following a significant volume of trading, contrasting with a 9.1% loss over the past four weeks [1] - The stock's rally is attributed to a rise in material stocks after President Trump announced a 90-day pause on reciprocal tariffs for most countries [1] Earnings Expectations - WLKP is projected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 9.5%, while revenues are expected to reach $295.59 million, an increase of 3.8% from the previous year [2] - The consensus EPS estimate for WLKP has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - WLKP is part of the Zacks Chemical - Specialty industry, where another company, Orion (OEC), saw its stock rise by 12.3% to $12.08, despite a 19% decline over the past month [3] - Orion's consensus EPS estimate for its upcoming report is $0.53, showing a year-over-year increase of 1.9%, with a Zacks Rank of 4 (Sell) [4]

Sales Performance - The company reported a significant increase in ethylene sales volume, reaching 1.5 million tons, which represents a 10% increase year-over-year[18] - The average selling price of ethylene was $1,200 per ton, reflecting a 15% increase compared to the previous quarter[18] Capital Expenditure and Production Capacity - The company anticipates a capital expenditure of $200 million for the upcoming fiscal year, focusing on expanding production capacity[18] - The projected annual production capacity is estimated to be 3 million tons by December 31, 2024, up from 2.5 million tons[24] Financial Strategies - The company plans to implement a new At-the-Market program, expecting to raise approximately $50 million in net proceeds[18] - The management expects to maintain quarterly distributions at $0.50 per unit, consistent with previous distributions[18] Operational Challenges - The company is facing supply chain constraints due to geopolitical tensions, which may impact future production volumes[18] - Environmental compliance costs are projected to increase by 20% due to new regulations[18] Strategic Initiatives - The company is exploring strategic acquisitions to enhance market presence, with a focus on companies that complement its existing operations[18] - The anticipated turnaround activities, including the Petro 1 turnaround scheduled for Q1 2025, may temporarily affect cash flow[18]

Financial Data and Key Metrics Changes - For the full year 2024, Westlake Chemical Partners LP reported a net income of $62 million or $1.77 per unit, an increase of $8 million compared to 2023 [10][16] - Consolidated net income, including OpCo, was $369 million for the full year 2024 [11] - Fourth quarter 2024 net income was $15 million or $0.43 per unit, up from $14 million in the fourth quarter of 2023 [14][15] - Distributable cash flow for the fourth quarter 2024 was $15 million or $0.42 per unit, a decrease of $1 million compared to the fourth quarter of 2023 [15][16] - Full year 2024 MLP distributable cash flow increased by $4 million compared to $63 million in 2023 [16] Business Line Data and Key Metrics Changes - The partnership's financial results were supported by a fixed margin ethylene sales agreement for 95% of annual plant production, providing stability against market volatility [11][12] - The higher net income in 2024 was primarily driven by increased third-party ethylene sales prices and margins [16] Market Data and Key Metrics Changes - North American spot ethylene prices and margins improved in 2024 due to tightening supply-demand conditions, benefiting the partnership through higher sales prices [24] - In 2025, third-party ethylene sales prices and margins are expected to remain favorable, positively impacting financial performance [24] Company Strategy and Development Direction - The company maintains a strong balance sheet with conservative financial metrics and plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquisitions, organic growth, and negotiating higher fixed margins in sales agreements [25] - The partnership has sustained 42 consecutive quarterly distributions since its IPO in 2014, with a 71% increase in distributions since the original minimum [19][20] Management Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the financial and operational performance, highlighting the stability provided by the ethylene sales agreement [23] - The planned turnaround at the PetroOne ethylene unit is expected to impact the coverage ratio temporarily, but full recovery is anticipated post-turnaround [21][34] Other Important Information - The partnership's fourth quarter distribution of $0.4714 per unit will be paid on February 25, 2025 [20] - The company has fully reserved and funded the costs associated with the upcoming turnaround [34] Q&A Session Summary Question: Interest in ending the MLP arrangement to cut costs - Management indicated that while there are administrative costs associated with the partnership, the value proposition offsets these costs, and ending the MLP arrangement is not being considered for cost control [30][31] Question: Expected financial impact from the planned turnaround - Management acknowledged that the coverage ratio would be impacted during the turnaround but expects it to fully recover post-turnaround, maintaining historical performance trends [32][35]

Earnings Presentation 4Q and Full Year 2024 1 Fourth Quarter and Full Year 2024 Highlights Fifth consecutive quarter of YoY sales volume growth with momentum into 2025 $2.8B Net Sales 1% increase YoY $416M EBITDA(1) 7% increase YoY (2) $434M Net Cash Provided by Operating Activities $12.1B Net Sales 3% decrease YoY $2.3B EBITDA(1,2) 12% decrease YoY(2) $1.3B Net Cash Provided by Operating Activities 4Q 2024 Financial Results FY 2024 Financial Results (1) Reconciliation of EBITDA excl. Identified Item to Net ...

Financial Performance - Net income attributable to the Partnership for Q4 2024 was $15.0 million, or $0.43 per limited partner unit, compared to $14.3 million in Q4 2023[2] - For the full year 2024, net income attributable to the Partnership was $62.4 million, or $1.77 per limited partner unit, up from $54.3 million in 2023[4] - Net income for the twelve months ended December 31, 2024, increased to $369,159,000, up from $334,626,000 in 2023, representing an increase of approximately 10.3%[19] Cash Flow - Cash flows from operating activities in Q4 2024 were $132.5 million, an increase of $24.8 million from $107.7 million in Q4 2023[2] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $485,001,000, an increase from $451,999,000 in 2023, marking a growth of approximately 7.3%[19] - The company reported a net cash used for investing activities of $88,971,000 in 2024, compared to $75,937,000 in 2023, indicating an increase of approximately 17.2%[19] Distributable Cash Flow - MLP distributable cash flow for the full year 2024 was $66.9 million, an increase of $4.3 million compared to $62.6 million in 2023[4] - MLP distributable cash flow provided trailing twelve-month coverage of 1.01x the declared distributions for Q4 2024, down from 1.03x in Q3 2024[5] - Distributable cash flow attributable to noncontrolling interest in OpCo for the twelve months ended December 31, 2024, was $321,928,000, compared to $308,456,000 in 2023, reflecting an increase of about 4.4%[20] Sales and Profitability - Total net sales for Q4 2024 were $290.1 million, compared to $297.3 million in Q4 2023[15] - Gross profit for Q4 2024 was $98.6 million, slightly down from $100.7 million in Q4 2023[15] - EBITDA for the full year 2024 was $507.6 million, an increase from $472.1 million in 2023[15] - EBITDA for the twelve months ended December 31, 2024, was $507,594,000, compared to $472,143,000 in 2023, indicating an increase of approximately 7.5%[22] Assets and Liabilities - Total current assets rose to $240,926,000 in 2024, compared to $226,203,000 in 2023, reflecting an increase of about 6.5%[17] - Total liabilities decreased slightly to $458,642,000 in 2024 from $460,592,000 in 2023, a reduction of about 0.4%[17] - Total equity decreased to $829,314,000 in 2024 from $856,250,000 in 2023, a decline of about 3.1%[17] Capital Expenditures - The company made additions to property, plant, and equipment totaling $48,971,000 in 2024, compared to $46,821,000 in 2023, representing an increase of approximately 4.6%[19] Strategic Decisions - The decision to defer the Petro 1 turnaround to 2025 allowed the Partnership to capture higher third-party ethylene prices and margins in H2 2024[5] Distributions - The Partnership declared a quarterly distribution of $0.4714 per unit, marking the 42nd consecutive quarterly distribution[5]