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]

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]