Q2 2024 Westlake Chemical Partners LP Earnings Call Transcript
Key Points
- Westlake Chemical Partners LP (WLKP) reported a net income of $14 million or $0.41 per unit for the second quarter of 2024, an increase from the previous year.
- The company benefited from higher production and sales volumes due to last year's Calvert City turnaround and higher third-party ethylene sales prices and margins.
- WLKP has maintained a cumulative distribution coverage ratio of approximately 1.1x since its IPO in 2014.
- The company announced its 40th consecutive quarterly distribution since its IPO, demonstrating consistent performance.
- WLKP has a strong balance sheet with consolidated cash balances and cash investments totaling $160 million and a consolidated leverage ratio of approximately 1x.
- Higher interest expenses partially offset the benefits from increased production and sales volumes.
- The planned 60-day turnaround at the Petro 1 ethylene unit in Lake Charles, Louisiana, is expected to temporarily impact earnings and production.
- The global macroeconomic environment remains unpredictable, which could affect future performance.
- The MLP equity markets remain challenging, limiting opportunities for equity financing.
- Despite the positive outlook, the company faces risks associated with market volatility and production disruptions.
Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Second Quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, August sixth, 2024. I would now like to turn the call over to today's host, John Zoeller, Westlake Chemical Partners Vice President and Treasurer. Sir, you may begin.
Thank you. Good afternoon, everyone, and welcome to the Westlake Chemical Partners Second Quarter 2024 conference call. I am joined today by Albert Chao, our Executive Chairman; Jean Marc Gilson, our President and CEO; Steve Bender, our Executive 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
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