Financial Data and Key Metrics Changes - For the full year 2025, the company reported a net income of $49 million or $1.38 per unit, a decrease of $13 million compared to 2024 [4][7] - Consolidated net income, including OpCo, was $299 million for the full year 2025 [4] - Fourth quarter 2025 net income was $15 million, or $0.41 per unit, consistent with the fourth quarter of 2024 [6][7] - Distributable cash flow for the fourth quarter of 2025 was $19 million, an increase of $4 million compared to the fourth quarter of 2024 [7] Business Line Data and Key Metrics Changes - The decrease in net income for the full year 2025 was attributed to lower production and sales volumes due to a planned turnaround at the Petro 1 facility [7][11] - The partnership's full year 2025 MLP distributable cash flow was $53 million, down $14 million from $67 million in 2024 [8] Market Data and Key Metrics Changes - The company maintained a strong leverage ratio below 1 time at the end of the fourth quarter [9] - The operating surplus at the end of 2025 was approximately $74 million, sufficient to cover current and future expected annual distributions [19] Company Strategy and Development Direction - The company plans to focus on growth through increasing ownership interest in OpCo, acquiring other income streams, and organic growth opportunities such as expanding ethylene facilities [12][13] - The Ethylene Sales Agreement with Westlake was successfully renewed through 2027 without changes, indicating the importance of OpCo's ethylene supply [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the business model and cash flows, expecting a recovery in distributable cash flow and coverage ratio in 2026 due to no planned turnarounds [11][12] - The company aims to continue providing long-term value and distributions to unit holders while focusing on safe operations and sustainability [13] Other Important Information - The company has made 46 consecutive quarterly distributions since its IPO in July 2014, with a 71% increase in distributions since the original minimum [10] - The fourth quarter distribution of $0.4714 per unit was paid on February 23, 2026 [9][10] Q&A Session Summary Question: Balance sheet and cash flow regarding distribution payments - The CFO clarified that the drawdown on the investment management account was related to maintenance turnaround costs, and the operating reserves were strong enough to cover distributions [17][19] Question: Financing growth initiatives - The CFO explained that any growth opportunities would likely be financed through a combination of new unit issuance and leveraging the balance sheet [21]

Financial Data and Key Metrics Changes - For full year 2025, the company reported net income of $49 million or $1.38 per unit, a decrease of $13 million compared to 2024 [4][7] - Fourth quarter 2025 net income was $15 million or $0.41 per unit, consistent with the fourth quarter of 2024 [6][7] - Distributable cash flow for the fourth quarter of 2025 was $19 million, an increase of $4 million from $15 million in the fourth quarter of 2024 [7] - Full year 2025 MLP distributable cash flow was $53 million, down $14 million from $67 million in 2024 [8] Business Line Data and Key Metrics Changes - The decrease in net income for 2025 was attributed to lower production and sales volumes due to a planned turnaround at the Petro 1 facility [7][11] - The Ethylene Sales Agreement with Westlake was successfully renewed through 2027 without changes, ensuring stable cash flows [8][11] Market Data and Key Metrics Changes - The company maintained a consolidated cash balance of $68 million at the end of the fourth quarter [9] - Long-term debt stood at $400 million, with a consolidated leverage ratio below 1 time [9] Company Strategy and Development Direction - The company aims to enhance long-term value through four growth levers: increasing ownership interest in OpCo, acquiring other income streams, organic growth through facility expansions, and negotiating higher fixed margins in the Ethylene Sales Agreement [12][13] - The absence of planned turnarounds in 2026 is expected to lead to production and sales volume growth, improving distributable cash flow and coverage ratios [11] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the financial and operational performance in 2025, highlighting the stability provided by the Ethylene Sales Agreement [11] - The company anticipates a recovery in coverage ratios above 1.1 times in 2026 due to no planned turnarounds [20] Other Important Information - The company has made 46 consecutive quarterly distributions since its IPO in July 2014, with a 71% increase in distributions since the original minimum [10] - The fourth quarter distribution of $0.4714 per unit was paid on February 23, 2026 [9][10] Q&A Session Summary Question: Balance sheet and cash flow regarding distribution payments - Analyst inquired about the drawdown on receivables under the Investment Management Agreement and the expectation for distribution coverage in the new year [17] - Management clarified that the drawdown reflected turnaround costs and that operating reserves were sufficient to cover distributions, expecting coverage ratios to improve in 2026 [19][20] Question: Financing growth initiatives - Analyst asked how the company plans to finance potential growth opportunities [21] - Management indicated that financing would likely involve a drop-down structure, utilizing a combination of new unit issuance and leveraging the balance sheet [21]

Financial Data and Key Metrics Changes - For full year 2025, Westlake Partners reported net income of $49 million or $1.38 per unit, a decrease of $13 million compared to 2024 [7] - Consolidated net income, including OpCo, was $299 million for the full year 2025 [4] - Fourth quarter 2025 net income was $15 million or $0.41 per unit, consistent with the fourth quarter of 2024 [6] - Distributable cash flow for the fourth quarter of 2025 was $19 million, an increase of $4 million compared to $15 million in the fourth quarter of 2024 [7] - Full year 2025 MLP distributable cash flow was $53 million, down $14 million from $67 million in 2024 [8] Business Line Data and Key Metrics Changes - The decrease in net income for 2025 was attributed to lower production and sales volumes due to the planned Petro 1 turnaround [7] - The Ethylene Sales Agreement with Westlake was successfully renewed through 2027 without changes, ensuring stable cash flows [8] Market Data and Key Metrics Changes - The partnership maintained a strong leverage ratio below 1 time at the end of the fourth quarter [9] - The consolidated cash balance and cash investments totaled $68 million at the end of the fourth quarter [9] Company Strategy and Development Direction - The company aims to evaluate growth opportunities through increasing ownership interest in OpCo, acquisitions, organic growth, and negotiating a higher fixed margin in the Ethylene Sales Agreement [12] - The absence of planned turnarounds in 2026 is expected to drive production and sales volume growth, improving distributable cash flow and coverage ratio [11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the business model and cash flows, highlighting the protective provisions of the Ethylene Sales Agreement [11] - The company anticipates a recovery in the coverage ratio back to historical levels due to no planned turnarounds in 2026 [11] Other Important Information - The partnership has made 46 consecutive quarterly distributions since its IPO in July 2014, with a 71% increase in distributions since the original minimum quarterly distribution [10] - The fourth quarter distribution of $0.4714 per unit was paid on February 23, 2026 [9] Q&A Session Summary Question: Balance sheet and cash flow statement concerns - The management confirmed that the drawdown on the Investment Management Agreement was related to planned turnaround expenses, and they expect the distribution coverage ratio to improve in 2026 [16][18] Question: Financing growth initiatives - Management indicated that any growth opportunities would likely be financed through a combination of new unit issuance and leveraging the balance sheet [20]

EXHIBIT 99.1 WESTLAKE CHEMICAL PARTNERS LP Contact—(713) 585-2900 Investors—Steve Bender Media—L. Benjamin Ederington Westlake Chemical Partners LP Announces Fourth Quarter and Full Year 2025 Results HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership in the fourth quarter of 2025 of $14.5 million, or $0.41 per limited partner unit, which was relatively in line with fourth quarter 2024 net income of $15.0 million. ...

Core Viewpoint - Westlake Chemical Partners LP (WLKP) is highlighted as a potentially undervalued investment opportunity, with a focus on its stable cash flow and unique business model that differentiates it from traditional chemical operators [1][11]. Business Overview - WLKP operates an ethylene production business with Westlake Corp. as its primary customer, utilizing a fee-based income model that is insulated from commodity price volatility [2]. - The partnership structure allows for a more stable distributable cash flow profile compared to upstream petrochemical peers [2]. Valuation Metrics - WLKP has an Intrinsic Value to Price (IV/P) ratio of 2.0, indicating it may be worth twice its current market price under conservative assumptions, providing a significant margin of safety [3]. - The Acquirer's Multiple (AM) is 4.39, placing WLKP in deep value territory, suggesting the market is pricing the partnership as if it faces imminent structural volume impairments [4][15]. Financial Performance - Revenue for the trailing twelve months (TTM) is approximately US$ 1.13 billion, with a gross profit of US$ 350 million and an operating income of US$ 322 million, resulting in an operating margin of about 28% [7]. - The net income stands at approximately US$ 49 million, with a net margin of around 4% [7]. Balance Sheet Position - WLKP's balance sheet features long-term off-take contracts and cost-plus pricing structures, which contribute to predictable capacity utilization and reduced sensitivity to energy and natural gas liquids (NGL) spreads [6][8]. Cash Flow and Capital Efficiency - WLKP demonstrates strong cash flow generation, converting operating income into significant free cash flow while returning capital to unit holders, resembling a toll-road model rather than a speculative chemical processor [9]. Market Perception and Conclusion - The current market valuation appears to be driven by perception gaps, with the partnership behaving more like an infrastructure cash-flow vehicle than a cyclical manufacturer, yet being priced as the latter [10]. - With substantial free cash flow and a favorable IV/P ratio, WLKP is positioned as a compelling deep value opportunity for investors comfortable with MLP structures [11].

Financial Performance - Total net sales for Q3 2025 reached $308.9 million, a 11.5% increase from $276.9 million in Q3 2024[10] - Gross profit for Q3 2025 was $99.4 million, down 15.0% from $116.9 million in Q3 2024[10] - Net income attributable to Westlake Chemical Partners LP for Q3 2025 was $14.7 million, a decrease of 19.8% compared to $18.1 million in Q3 2024[10] - The company reported a net income of $214.3 million for the nine months ended September 30, 2025, compared to $281.8 million for the same period in 2024[10] - Net income for the nine months ended September 30, 2025, was $214,318, a decrease from $281,772 in the same period of 2024, representing a decline of approximately 24%[19] - Net income for the three months ended September 30, 2025, was $14,653, a decrease of 19.5% compared to $18,136 for the same period in 2024[43] - For the nine months ended September 30, 2025, net income was $34,159, a decrease of 28.0% from $47,396 in the same period of 2024[45] - Total net income attributable to the Partnership for the nine months ended September 30, 2025, was $34,159, down from $47,396 in 2024, a decrease of about 28%[41] - Total net income for the three months ended September 30, 2025, was $86,214, a decrease of 17.2% from $104,100 in 2024[85] - OpCo's net income for the nine months ended September 30, 2025, was $233,296, down from $303,505 in 2024[85] Assets and Liabilities - Total assets as of September 30, 2025, were $1.27 billion, slightly down from $1.29 billion at the end of 2024[8] - Total liabilities decreased to $458.3 million from $458.6 million at the end of 2024[8] - Cash and cash equivalents decreased to $37.9 million from $58.3 million at the end of 2024[8] - The company’s total equity as of September 30, 2025, was $813.3 million, down from $829.3 million at the end of 2024[8] - Accounts receivable from third parties increased to $16,141 as of September 30, 2025, from $11,576 at the end of 2024, representing an increase of approximately 39%[34] - Inventories decreased to $3,078 as of September 30, 2025, down from $4,058 at the end of 2024, indicating a decline of about 24%[36] - Accrued and other liabilities increased to $32,036 as of September 30, 2025, from $16,920 at December 31, 2024[77] - Long-term debt payable to Westlake remained constant at $399,674 for both September 30, 2025, and December 31, 2024[67] - The weighted average interest rate on long-term debt was 6.1% as of September 30, 2025, down from 6.4% at December 31, 2024[71] - Total assets as of September 30, 2025, were $1,271,613, a slight decrease from $1,287,956 at December 31, 2024[85] Cash Flow and Distributions - Net cash provided by operating activities decreased to $160,090 for the nine months ended September 30, 2025, compared to $352,532 in 2024, reflecting a decline of about 55%[19] - The Partnership declared a quarterly cash distribution of $0.4714 per common unit for the three months ended September 30, 2025[39] - Distributions to unitholders for Q3 2025 totaled $49.8 million, consistent with $49.8 million in Q3 2024[19] - Total cash distributions declared for the nine months ended September 30, 2025, amounted to $49,838,000, compared to $49,826,000 for the same period in 2024[41] - Distributions per common unit for the nine months ended September 30, 2025, were $1.4142, consistent with the previous year[46] Related Party Transactions - Westlake accounted for approximately 89.5% of the Partnership's net sales for the three months ended September 30, 2025, compared to 77.9% in 2024, indicating a significant increase in concentration[68] - Charges for feedstock purchased from Westlake included in cost of sales for the three months ended September 30, 2025, were $95,110, compared to $65,053 in 2024, representing a 46.2% increase[52] - Interest on related party debt for the three months ended September 30, 2025, was $5,947, a decrease of 11.2% from $6,698 in 2024[66] - For the nine months ended September 30, 2025, interest on related party debt was $17,391, down 12.8% from $19,930 in 2024[66] - The Partnership's accounts receivable from Westlake increased to $59,665 as of September 30, 2025, compared to $31,975 at the end of 2024[61] - Operating lease rentals paid to Westlake for the nine months ended September 30, 2025, were $1,246, down from $1,326 in 2024[63] Expenses - Interest expense for Q3 2025 was $5.9 million, a decrease from $6.7 million in Q3 2024[10] - The Partnership's depreciation and amortization expenses for the nine months ended September 30, 2025, were $93,424, compared to $84,421 in 2024, an increase of approximately 11%[19] - Depreciation expense on property, plant, and equipment for the three months ended September 30, 2025, was $21,966, compared to $21,626 for the same period in 2024[37] - Amortization expense on deferred charges and other assets for the three months ended September 30, 2025, was $11,906, up from $6,486 for the same period in 2024[38] - Interest paid by the Partnership decreased to $17,292 for the nine months ended September 30, 2025, from $19,852 for the same period in 2024[79] Agreements and Renewals - On October 28, 2025, OpCo and Westlake renewed the Ethylene Sales Agreement and Feedstock Supply Agreement through December 31, 2027[88] - The Partnership's long-term debt valuation methodology is classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs[74]

Financial Data and Key Metrics Changes - Westlake Chemical Partners reported a net income of $15 million, or $0.42 per unit, for Q3 2025, which is lower than the net income for Q3 2024 due to lower margins on ethylene sales [5][6] - Consolidated net income, including OpCo's earnings, was $86 million on consolidated net sales of $309 million [6] - Distributable cash flow for the quarter was $15 million, or $0.42 per unit, a decrease of $3 million compared to Q3 2024 due to higher maintenance capital expenditures [6][7] Business Line Data and Key Metrics Changes - The completion of the planned turnaround at the Petro One Ethylene unit positively impacted sales and earnings in Q3 2025 [5] - The Partnership maintained a cumulative distribution coverage ratio of approximately 1.1 times since its IPO in 2014, despite the recent dip in coverage due to planned turnarounds [8] Market Data and Key Metrics Changes - Global industrial and manufacturing activity remains soft in 2025, affecting the global chemical industry [10] - The ethylene sales agreement with Westlake Corporation, which covers 95% of OpCo's production, continues to provide predictable fee-based cash flow [10] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquiring other qualified income streams, and expanding current ethylene facilities [11] - The renewal of the ethylene sales agreement through the end of 2027 under the same terms demonstrates the critical nature of OpCo's supply of ethylene [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the operating surplus will continue to build following the successful completion of the turnaround, expecting distributions to be well covered by cash flows [15][16] - The company remains focused on safe operations and sustainability efforts while navigating market conditions [11] Other Important Information - The Partnership announced a quarterly distribution of $0.4714 per unit for Q3 2025, marking 45 consecutive quarterly distributions since its IPO [7][8] Q&A Session Summary Question: Outlook for getting distributable cash flow up to a level where the distribution will be covered - Management indicated that the dip in coverage was due to the planned turnaround, which impacted production and sales, but expects the operating surplus to continue to build now that production is back to full capacity [15] Question: Pro forma basis for distributable cash flow without the impact of the turnaround - Management confirmed that, without the impact of the turnaround, the distributable cash flow would have been in excess of the distribution [16]

Financial Performance - Westlake Corporation's net sales for 3Q 2025 were $2838 million, a decrease of 9% year-over-year from $3117 million in 3Q 2024[6, 25] - The company's EBITDA for 3Q 2025 was $313 million, a 46% decrease compared to $580 million in 3Q 2024[5, 6] - Westlake reported a net loss attributable to the company of $782 million for 3Q 2025, compared to a net income of $108 million in 3Q 2024[25, 27] - The company achieved approximately $115 million in company-wide cost savings year-to-date, including $40 million in 3Q 2025, toward its fiscal year 2025 target of $150 - $175 million[6] Segment Performance - Housing and Infrastructure Products (HIP) - HIP segment sales for 3Q 2025 were $1091 million, a 1% decrease compared to $1098 million in 3Q 2024[10, 25] - HIP segment EBITDA for 3Q 2025 was $215 million, an 18% decrease compared to $262 million in 3Q 2024[6, 10] - The company expects 2025 revenue and EBITDA margin for the HIP segment to be at the low ends of the previously communicated ranges of $4200 - $4400 million of sales with a 20% - 22% EBITDA margin[11] Segment Performance - Performance and Essential Materials (PEM) - PEM segment sales for 3Q 2025 were $1747 million, a 13% decrease compared to $2019 million in 3Q 2024[15, 25] - PEM segment EBITDA for 3Q 2025 was $90 million, a 70% decrease compared to $297 million in 3Q 2024[6, 15] - PEM EBITDA includes an estimated $32 million unfavorable FIFO impact[18] Strategic Initiatives - Westlake is progressing towards $200 million of identified cost savings in 2026, in addition to a footprint optimization benefit of approximately $100 million in 2026 from the Pernis shutdown[5] - The company is taking action to achieve $200 million of company-wide identified cost savings in 2026 with the majority of that occurring in the PEM segment[22]

Financial Performance - Net income attributable to Westlake Chemical Partners in Q3 2025 was $14.7 million, or $0.42 per limited partner unit, down from $18.1 million in Q3 2024[2] - Cash flows from operating activities in Q3 2025 were $105.2 million, a decrease of $20.9 million compared to $126.1 million in Q3 2024[2] - MLP distributable cash flow for Q3 2025 was $14.9 million, down $3.0 million from $17.9 million in Q3 2024[2] - Gross profit for Q3 2025 was $99.4 million, down from $116.9 million in Q3 2024, a decrease of 15.0%[14] - EBITDA for Q3 2025 was $126.1 million, compared to $139.1 million in Q3 2024, reflecting a decrease of 9.4%[14] - Net income for the nine months ended September 30, 2025, was $214,318, a decrease of 24% compared to $281,772 for the same period in 2024[18] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $160,090, down 54% from $352,532 in 2024[18] - EBITDA for the nine months ended September 30, 2025, was $325,487, a decrease of 16% compared to $386,756 for the same period in 2024[22] - MLP distributable cash flow for the nine months ended September 30, 2025, was $34,607, a decrease of 33% from $51,906 in 2024[19] Sales and Revenue - Total net sales for Q3 2025 were $308.9 million, compared to $277.0 million in Q3 2024, representing an increase of 11.5%[14] Cash Flow and Distributions - The declared quarterly distribution for Q3 2025 was $0.4714 per common unit, marking the 45th consecutive quarterly distribution[4] - The trailing twelve-month coverage ratio for MLP distributable cash flow was 0.75x for Q3 2025, down from 0.79x at the end of Q2 2025[4] - Cash and cash equivalents at the end of the period were $37,936, a decrease of 37% from $60,208 at the end of the same period in 2024[18] - Net cash used for financing activities for the nine months ended September 30, 2025, was $230,482, a decrease of 23% compared to $300,446 in 2024[18] Investments and Expenditures - Additions to property, plant, and equipment for the nine months ended September 30, 2025, were $69,988, an increase of 97% compared to $35,497 in 2024[18] - Maintenance capital expenditures for the nine months ended September 30, 2025, were $65,233, an increase of 88% compared to $34,808 in 2024[19] Assets and Liabilities - Total assets as of September 30, 2025, were $1.27 billion, slightly down from $1.29 billion at the end of 2024[16] - Distributions to noncontrolling interest retained in OpCo by Westlake for the nine months ended September 30, 2025, were $180,645, a decrease of 28% from $250,622 in 2024[18] - Maturities of investments with Westlake under the Investment Management Agreement for the nine months ended September 30, 2025, were $120,000, with no comparable figure in 2024[18] Agreements and Contracts - The Ethylene Sales Agreement with Westlake was renewed through 2027, ensuring stable cash flows for 95% of OpCo's production[4]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited consolidated financial statements for Westlake Chemical Partners LP, detailing financial position, operational results, and cash flows for the period ended June 30, 2025 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, statements of operations, and cash flows, for the period ended June 30, 2025 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | **Total current assets** | 156,524 | 240,926 | | **Total assets** | **1,307,187** | **1,287,956** | | **Total current liabilities** | 72,906 | 55,372 | | **Long-term debt payable to Westlake** | 399,674 | 399,674 | | **Total liabilities** | 476,022 | 458,642 | | **Total equity** | 831,165 | 829,314 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total net sales** | 297,119 | 284,168 | 534,748 | 568,841 | | **Gross profit** | 97,532 | 101,232 | 151,613 | 203,412 | | **Income from operations** | 91,232 | 93,627 | 137,839 | 188,730 | | **Net income** | 85,795 | 88,026 | 128,104 | 177,672 | | **Net income attributable to Westlake Chemical Partners LP** | 14,558 | 14,427 | 19,506 | 29,260 | | **Net income per limited partner unit (basic and diluted)** | $0.41 | $0.41 | $0.55 | $0.83 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 54,852 | 226,461 | | **Net cash provided by (used for) investing activities** | 49,664 | (19,951) | | **Net cash used for financing activities** | (126,253) | (199,130) | | **Net increase (decrease) in cash and cash equivalents** | (21,737) | 7,380 | | **Cash and cash equivalents at end of period** | 36,579 | 65,999 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The Partnership was formed to operate ethylene production facilities, holding a **22.8% limited partner interest** in Westlake Chemical OpCo LP ("OpCo") and consolidating OpCo's financial results as the primary beneficiary, with Westlake Corporation owning the remaining **77.2% interest**[23](index=23&type=chunk)[24](index=24&type=chunk)[27](index=27&type=chunk) - A quarterly cash distribution of **$0.4714 per common unit** for Q2 2025 was declared on July 30, 2025, payable on August 27, 2025[39](index=39&type=chunk) - The Partnership has significant related-party transactions with Westlake, its major customer, with sales to Westlake accounting for approximately **86.0% of the Partnership's net sales** for the six months ended June 30, 2025[50](index=50&type=chunk)[70](index=70&type=chunk) - As of June 30, 2025, the Partnership had **$399.7 million in long-term debt** payable to Westlake, comprising borrowings under the OpCo Revolver and the MLP Revolver[71](index=71&type=chunk) - The Partnership operates as a **single reportable segment, OpCo**, encompassing its ethylene production operations[85](index=85&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial performance and condition of the Partnership, highlighting decreased net income and operating cash flow due to a planned maintenance turnaround [Partnership Overview and Revenue Generation](index=20&type=section&id=Partnership%20Overview%20and%20Revenue%20Generation) - The Partnership's primary asset is its **22.8% limited partner interest in OpCo**, which owns and operates three ethylene production facilities and a pipeline[90](index=90&type=chunk)[91](index=91&type=chunk) - Revenue is primarily generated through a long-term, fee-based Ethylene Sales Agreement with Westlake, including a minimum purchase commitment of **95% of budgeted production** and a fixed margin of **$0.10 per pound**, ensuring stable cash flows[93](index=93&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) - **Q2 2025 vs Q2 2024:** Net income decreased by **$2.2 million to $85.8 million**, driven by higher feedstock and natural gas costs, partially offset by higher ethylene sales prices and a **$13.6 million buyer deficiency fee** from the Petro 1 turnaround[109](index=109&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - **H1 2025 vs H1 2024:** Net income decreased by **$49.6 million to $128.1 million**, primarily due to lower sales volumes from the Petro 1 turnaround and higher feedstock and natural gas costs[110](index=110&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) Non-GAAP Financial Measures Reconciliation | Metric ($ thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | 85,795 | 88,026 | 128,104 | 177,672 | | **MLP distributable cash flow** | 15,007 | 17,135 | 19,721 | 34,027 | | **EBITDA** | 124,391 | 123,199 | 199,412 | 247,630 | [Cash Flow and Liquidity](index=27&type=section&id=Cash%20Flow%20and%20Liquidity) - Cash from operating activities decreased by **$171.6 million in H1 2025** compared to H1 2024, falling to **$54.9 million**, mainly due to Petro 1 turnaround costs and lower income from operations[125](index=125&type=chunk) - Sources of liquidity include cash from operations, a **$600 million OpCo Revolver**, a **$600 million MLP Revolver**, and an Investment Management Agreement with Westlake; cash and cash equivalents were **$36.6 million**, with an additional **$43.9 million invested with Westlake** as of June 30, 2025[130](index=130&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Total debt outstanding as of June 30, 2025, was **$399.7 million**, entirely owed to Westlake through the OpCo and MLP revolvers[138](index=138&type=chunk)[139](index=139&type=chunk)[148](index=148&type=chunk) - Capital expenditures for H1 2025 were **$40.3 million**, an increase from **$20.0 million in H1 2024**, primarily due to the Petro 1 turnaround[126](index=126&type=chunk)[135](index=135&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Partnership's primary market risk is interest rate exposure on variable-rate debt, while commodity price risk is mitigated by a fee-based sales agreement - Direct exposure to commodity price risk is limited as the Ethylene Sales Agreement with Westlake provides for cost-plus based pricing and a minimum purchase commitment[147](index=147&type=chunk) - The main market risk is interest rate risk on **$399.7 million of variable-rate debt**, where a **1% (100 basis points) increase** in the average interest rate would increase annual interest expense by approximately **$4.0 million**[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures are effective as of the end of the period covered by the report[149](index=149&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[150](index=150&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, other information, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The Partnership is involved in various legal proceedings but does not anticipate any material adverse effects, with Westlake Corporation providing indemnification for certain liabilities - The Partnership does not believe that any ongoing legal proceedings will have a material adverse effect on its financial condition, results of operations, or cash flows[154](index=154&type=chunk) - Westlake has agreed to indemnify the Partnership for certain environmental liabilities existing before August 4, 2014, and for liabilities related to services performed under the Services and Secondment Agreement[153](index=153&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred from the risk factors previously disclosed in the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes from the risk factors disclosed in the 2024 Form 10-K[155](index=155&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No director or officer of the Partnership's general partner adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025[156](index=156&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications - The report lists various exhibits filed, including the CEO and CFO certifications under Rule 13a-14(a) and Section 1350[158](index=158&type=chunk)