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1. Company Snapshot

1.a. Company Description

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States.The company's ethylene production facilities primarily convert ethane into ethylene.It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis.


Westlake Chemical Partners GP LLC serves as the general partner of the company.The company was incorporated in 2014 and is headquartered in Houston, Texas.

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1.b. Last Insights on WLKP

Westlake Chemical Partners LP's recent performance was driven by strong operating cash flows, increasing by $24.8 million to $132.5 million in Q4 2024, and relatively in-line net income of $15.0 million, or $0.43 per limited partner unit. This solid earnings report suggests the company's operations remain stable, supporting its distribution payments. The partnership's ability to generate consistent cash flows is a key positive driver, providing a solid foundation for its future performance.

1.c. Company Highlights

2. Westlake Chemical Partners' Q3 2025 Earnings: Steady Performance Amidst Higher Maintenance Capex

Westlake Chemical Partners reported a net income of $15 million or $0.42 per unit for the third quarter 2025, slightly below analyst estimates of $0.43 per unit. The company's distributable cash flow for the quarter was $15 million or $0.42 per unit, a decrease of $3 million compared to the third quarter 2024, primarily due to higher maintenance capital expenditures. Consolidated net sales stood at $309 million, with net income of $86 million, including OpCo's earnings, indicating a stable operational performance.

Publication Date: Nov -23

📋 Highlights
  • Net Income:: $15 million ($0.42 per unit) for Q3 2025, driven by $86 million in consolidated net income including OpCo earnings.
  • Distributable Cash Flow Decline:: $15 million ($0.42 per unit), down $3 million QoQ due to higher maintenance capex.
  • Cash & Debt Position:: $51 million in consolidated cash vs. $400 million in long-term debt at quarter-end.
  • Quarterly Distribution Growth:: $0.4714 per unit (45 consecutive payments since 2014), up 71% from initial $0.275/unit.
  • Contract Stability:: Ethylene Sales Agreement with Westlake renewed through 2027 with unchanged terms and volume protections.

Financial Health and Leverage

The company maintained a healthy balance sheet with $51 million in consolidated cash and cash investments and $400 million in long-term debt at the end of the quarter, resulting in a Net Debt / EBITDA ratio of 0.87. This indicates a manageable leverage position, allowing the company to continue its distribution payments to unitholders.

Distribution and Ethylene Sales Agreement

A quarterly distribution of $0.4714 per unit was announced on October 28, 2025, marking 45 consecutive quarterly distributions since the Partnership's IPO in 2014. The distribution represents a 71% growth since the original minimum quarterly distribution of $0.275 per unit. Furthermore, the Ethylene Sales Agreement with Westlake was renewed through the end of 2027 without any changes to the contract terms or conditions, ensuring stable sales volume and pricing.

Outlook and Valuation

The company expects to continue providing long-term value to its unitholders, focusing on safe operations and sustainability efforts. With no planned turnarounds for the remainder of 2025 or in 2026, the stage is set for stable operational performance. Analysts estimate a revenue growth of 14.0% for next year. At current prices, the stock trades at a P/E Ratio of 5.31 and a Dividend Yield of 10.36%, suggesting an attractive income proposition for investors.

Valuation Metrics

Considering the current valuation metrics, the stock appears reasonably priced, with a P/S Ratio of 0.57 and an EV/EBITDA of 2.4. The high Free Cash Flow Yield of 32.6% and ROIC of 26.41% indicate strong cash generation capabilities and efficient capital allocation, supporting the company's ability to sustain its distribution growth.

3. NewsRoom

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68 Graham Value All-Star (GVAS) November Dividend Dogs Show 27 'Safer' And 17 Ideal Buys

Dec -02

Source: seekingalpha.com

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Westlake Chemical Partners LP Common Units (WLKP) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Westlake Chemical Partners LP Announces Third Quarter 2025 Results

Oct -30

Source: businesswire.com

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Westlake Chemical Partners Announces Renewal of Ethylene Sales Agreement

Oct -30

Source: businesswire.com

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Financial Survey: Westlake Chemical Partners (NYSE:WLKP) vs. DAQO New Energy (NYSE:DQ)

Oct -20

Source: defenseworld.net

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3 Dividend Stocks With Over 8% Yield To Buy In August

Aug -07

Source: 247wallst.com

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WLKP Earnings Miss by 13%

Aug -06

Source: fool.com

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Westlake Chemical Partners LP Common Units (WLKP) Q2 2025 Earnings Call Transcript

Aug -05

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Westlake

Expected Growth: 5.0%

Westlake Chemical Partners LP's 5.0% growth is driven by increasing demand for polyethylene and polypropylene, supported by growing packaging and construction industries. Additionally, the partnership's fee-based income model and low-cost operations provide a stable cash flow, enabling investments in growth projects and debt reduction, further fueling expansion.

Co-products, Ethylene and Other

Expected Growth: 5.0%

Westlake Chemical Partners LP's 5.0% growth in Co-products, Ethylene, and Other segments is driven by increasing demand for polyethylene and polyvinyl chloride (PVC) in construction and packaging industries, coupled with strategic acquisitions and capacity expansions, as well as favorable feedstock costs and operational efficiencies.

7. Detailed Products

Ethylene

A highly versatile and widely used petrochemical, ethylene is a key building block for the production of plastics, adhesives, and other chemicals.

Polyethylene

A type of plastic resin used in a wide range of applications, including packaging, plastic bags, and containers.

Styrene

A key building block for the production of plastics, styrene is used in the manufacture of polystyrene, acrylonitrile-butadiene-styrene (ABS), and other plastics.

Caustic Soda

A strong alkaline substance used in a variety of industrial applications, including the production of paper, textiles, and detergents.

Chlorine

A highly reactive gas used in the production of a wide range of chemicals, including plastics, pharmaceuticals, and water treatment chemicals.

Vinyl Chloride Monomer (VCM)

A key building block for the production of PVC, VCM is used in the manufacture of pipes, fittings, and other PVC products.

8. Westlake Chemical Partners LP's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Westlake Chemical Partners LP is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Westlake Chemical Partners LP is low due to the company's strong market position and limited buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Westlake Chemical Partners LP is medium due to the presence of multiple suppliers and moderate switching costs.

Threat Of New Entrants

The threat of new entrants for Westlake Chemical Partners LP is low due to the high barriers to entry and significant capital requirements in the industry.

Intensity Of Rivalry

The intensity of rivalry for Westlake Chemical Partners LP is high due to the presence of several established players and high competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.34%
Debt Cost 6.69%
Equity Weight 56.66%
Equity Cost 9.21%
WACC 8.11%
Leverage 76.49%

11. Quality Control: Westlake Chemical Partners LP passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Westlake Chemical Partners

A-Score: 7.3/10

Value: 9.2

Growth: 3.1

Quality: 7.5

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

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CVR Partners

A-Score: 7.2/10

Value: 7.3

Growth: 4.7

Quality: 5.9

Yield: 10.0

Momentum: 8.0

Volatility: 7.7

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Oil-Dri

A-Score: 7.0/10

Value: 5.8

Growth: 9.0

Quality: 7.0

Yield: 4.0

Momentum: 10.0

Volatility: 6.0

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FutureFuel

A-Score: 4.7/10

Value: 8.8

Growth: 2.0

Quality: 1.7

Yield: 10.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Valhi

A-Score: 4.5/10

Value: 9.5

Growth: 3.1

Quality: 5.9

Yield: 4.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

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AdvanSix

A-Score: 4.4/10

Value: 7.7

Growth: 2.9

Quality: 4.1

Yield: 4.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.16$

Current Price

19.16$

Potential

-0.00%

Expected Cash-Flows