Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners third quarter 2026 earnings conference call. During the presentation, all participants will be in a listen-only mode after the speaker's remarks. You will be invited to participate in a question and answer session. As a reminder, this conference is being recorded today, November 4th, 2026. I would now like to turn the call over to today's host, Jeff Hawley, Westlake Chemical Partners, Vice President of Finance and Investor Relations. Sir, you may begin.

Thank you. Good afternoon, everyone, and welcome to the Westlake Chemical Partners third quarter 2026 conference call. I'm joined today by Albert Chao, our executive chairman, Jean-Marc Gilson, our president and CEO, John Wacht, our senior vice president and chief financial officer, and other members of our management team. During this call, we refer to ourselves as Westlake Partners or the partnership. References to Westlake refer to our parent company, Westlake Corporation, and references to Opco refer to Westlake Chemical Opco LP, a subsidiary of both Westlake and the partnership, which owns certain Oleson's assets. Additionally, when we refer to distributable cash flow, We are referring to Westlake Chemical Partners MLP, Distributable Cash Flow. Definitions of these terms are available on the partnership's website. Today, management is going to discuss certain topics that will contain forward-looking information that is based on management's beliefs and assumptions made by and information currently available to management. These forward-looking statements suggest predictions or expectations We encourage you to learn more about the factors that can lead our actual results to differ by reviewing the cautionary statements and our regulatory filings, which are also available on our investor relations website. This morning, Westlake Partners issued a press release with details of our third quarter 2026 financial and operating results. This document is available in the press release section of our webpage at wlkpartners.com. A replay of today's call will be available beginning two hours after the conclusion of this call. The replay can be accessed via the partnership's website. Please note that information reported on this call speaks only as of today, November 4th, 2026, and therefore you are advised that time-sensitive information may no longer be accurate as of the time of any replay. I would finally advise you that this conference call is being broadcast live through an internet webcast system that can be accessed on our webpage at wlkpartners.com. Now, I would like to turn the call over to Jean-Marc Gilson. Jean-Marc?

Thank you, Jeff. Good afternoon, everyone, and thank you for joining us to discuss our third quarter 2026 results. In this morning's press release, We reported Westlake Partners third quarter 2026 net income of $16 million or $0.46 per unit, which was above our net income in both the second quarter of 2026 and the third quarter of 2025. The stability of Westlake Partners business model is consistently demonstrated through our fixed margin effluent sales agreement which minimizes market volatility and other production risk. The high degree of stability in cash flow when fed with the predictability of our business has enabled us to deliver the long history of reliable distributions and coverage. This quarter distribution is the 49th consecutive quarterly distribution since our IPO in July of 2014 without any reductions. And with that, I would like now to turn over our call to John to provide more detail on the financial and operating results for the quarter. John?

Thank you, Jean-Marc, and good afternoon, everyone. In this morning's press release, we reported Westlake Partners' third quarter 2026 net income of $16 million, or 46 cents per unit. Consolidated net income, including OCTCO's earnings, was $91 million on consolidated net sales of $314 million. The partnership had distributable cash flow for the quarter of $18 million, or 51 cents per unit. Third quarter 2026 net income for Westlake Partners of $16 million was higher than the third quarter 2025 partnership net income, primarily due to higher production and sales volume. Distributable cash flow of $18 million for the third quarter of 2026 increased by $3 million compared to the third quarter of 2025 due to the higher production and sales volume and lower maintenance capital expenditures. On a sequential basis, net income for Westlake Partners of $16 million in the third quarter of 2026 was higher than the second quarter on higher production and sales volume. Sequentially, our trailing 12-month coverage ratio improved to 1.09 times from 1.04 times, reflecting the aging out of the impact of the Petro-1 turnaround that occurred in the first half of 2025. Turning our attention to the balance sheet and cash flows, at the end of the third quarter, we had a consolidated cash balance and cash investments with Westlake through our investment management agreement totaling $113 million. Long-term debt at the end of the quarter was $400 million, of which $377 million was at the partnership and the remaining $23 million was at the OPCO. In the third quarter of 2026, OPCO spent $12 million on capital expenditures. We maintained our strong leverage metrics with a consolidated leverage ratio of approximately one time. On November 2nd, 2026, we announced a quarterly distribution of 47.14 cents per unit with respect to the third quarter of 2026. Since our IPO in 2014, the partnership has made 49 consecutive quarterly distributions to our unit holders and we have grown distributions 71% since the partnership's original minimum quarterly distribution of 27.5 cents per unit. The partnership's third quarter distribution will be paid on December 1st, 2026 to unit holders on record on November 13th, 2026. The partnership's predictable fee-based cash flow continues to prove beneficial in today's economic environment and is differentiated by the consistency of our earnings and cash flows Looking back, since our IPO in July of 2014, we have maintained a cumulative distribution coverage ratio in excess of 1.5, and with the partnership's stability in cash flows, we are able to sustain our current distribution without the need to access the capital margins. For modeling purposes, we have no planned turnarounds for the remainder of 2026 or in 2027. Now, I'd like to turn the call back over to Jean-Marc to make some closing comments. Jean-Marc.

Thank you, John. Turning to our outlook, third-party ethylene prices have been volatile in 2026 due largely to the ongoing conflict in the Middle East. Thus far, in the fourth quarter of 2026, ethylene prices have been rising and are currently higher than the average price in the third quarter of 2026. which could provide a modest benefit to the partnership on the roughly 5% of annual sales made to third parties. Turning to our capital structure, we maintain a strong balance sheet with conservative financial and leverage metrics. As we continue to navigate market conditions, we will evaluate opportunities via our four levers of growth in the future, including increases of our ownership interest of Opco, acquisitions of other qualified income streams, organic growth opportunities such as extensions of our current ethylene facilities, and negotiation of a higher fixed margin in our ethylene-safe agreement with Westlake. We remain focused on our ability to continue to provide long-term value and distributions to our unit holders. As always, we will continue to focus on safe operations, along with being good stewards of the environment where we work and Liv as part of our broader sustainability efforts. Thank you very much for listening to our third quarter earnings call. Now I will return the call back over to Jeff.

Thank you, Jean-Marc. Before we begin taking questions, I'd like to remind listeners that a replay of this teleconference will be available two hours after the call has ended. We will provide instructions to access the replay at the end of the call. Grace, we will now take questions.

Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of James Altishull with Aviation Advisory Service, Inc. Your line is open.

Wonderful. Thank you for taking my question. Actually, two questions. First of all, just now you made reference to the possibility of negotiating an increased fixed margin with Westlake. What incentive would they have to

The current contract we have in place is in place between 2027 and we'll have those discussions next year. As it relates to margins, I think the comment was referring to the margins that we're seeing in the marketplace. and ethylene PE margins are currently with current pricing in polyethylenes are constructive and it's the third-party margins we refer to, the 5% of third-party sales.

Oh, okay. Okay, well, but okay, if that's following on what you just said, I'll have to call you right back, sorry.

Busy day today.

What incentive, I mean, I believe when you're negotiating with Westlake, they're sort of like on both sides of the trend.

If you refer to the 10 cents margin that Westlake is paying for Ethylene, we think that this is an appropriate level right now and considering sometimes it goes up, I mean the marketplace sometimes it goes up, sometimes it goes down, the real price of ethylene, so we think that over the last more than 10 years, it has provided a stable, I mean some stability to the partnership and we intend to continue to do it like that.

Okay, because I mean Westlake is sort of on both sides of the negotiation, so they wouldn't have a lot of incentive to make the terms more favorable to the partnership, would they?

Yeah, no, I mean, it's now. Westlake has an incentive also in having that stability in the operation. And so that's why we will continue like that right now. And there is a negotiation, and the negotiation opens and just happened last year. And so we do not intend to change anything. We'll try to negotiate higher prices, but we are two parties at the table.

Okay. The other thing, if you're looking at comparing the cash flow statement with the reconciliation of MLP, distributable cash flow to net income, and the reconciliation, the number from maintenance capital expenditures is different from the additions to property, plant, and equipment on the cash flow statement. Why is the discrepancy? or is PPP&E's special additional property planning equipment separate from maintenance capital expenditures?

That's correct. So when you're thinking of maintenance expenditures, many of those will not be capitalized. And so you're thinking of that maintenance expenditure piece being both that cash flow numbers are going to include both capitalized numbers and pure expense items. Okay, okay. And just as a reminder as well, last year on a year-over-year basis, we did have the petro turnaround, and so you will see higher levels on a year-over-year comparative basis on the full year set of cash flows. So that's also some of the delta when looking at it on a comparative basis.

Okay. I guess finally, am I correct in thinking that the idea is ordinarily the turnaround expenses will be covered by what you have in the turnaround reserves?

That's correct. It's pre-funded with the turnaround reserve, but you'll still see those flow through in the cash flow statement in the year of the turnaround. It's just funded from cash on the balance sheet that's already been received through the turnaround reserve.

Okay. Well, thank you very much for answering all my questions. I'm sorry I had to interrupt you. My other phone was ringing and I wanted to cut that off, but apologies for disturbing everybody. Thank you very much.

You're very welcome.

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

Thank you. Thank you again for participating in today's call.

Thank you for participating in today's Westlake Chemical Partners third quarter 2026 earnings conference call. As a reminder, this call will be available for replay beginning two hours after the call has ended and may be accessed until 1159 p.m. Eastern Time on Wednesday, November 18, 2026. The replay can be accessed via the partnership website. Goodbye.