Westlake Chemical Partners LP
NYSE:WLKP
Westlake Chemical Partners LP
Westlake Chemical Partners LP engages in the operation, acquisition and development of ethylene production facilities and related assets. The company is headquartered in Houston, Texas. The company went IPO on 2014-07-30. The firm operates, acquires and develop ethylene production facilities and related assets. Its business and operations are conducted through Westlake Chemical OpCo LP (OpCo). OpCo's assets are comprised of three ethylene production facilities, which primarily convert ethane into ethylene and have an aggregate annual capacity of approximately 3.7 billion pounds, and a 200-mile ethylene pipeline. OpCo owns two ethylene production facilities at Westlake's Lake Charles, Louisiana site (Petro 1 and Petro 2, collectively Lake Charles Olefins), with an annual combined capacity of approximately three billion pounds, and one ethylene production facility at Westlake's Calvert City, Kentucky site (Calvert City Olefins), with an annual capacity of approximately 730 million pounds. OpCo produces ethylene co-products, including chemical grade propylene, crude butadiene, pyrolysis gasoline and hydrogen.
Westlake Chemical Partners LP engages in the operation, acquisition and development of ethylene production facilities and related assets. The company is headquartered in Houston, Texas. The company went IPO on 2014-07-30. The firm operates, acquires and develop ethylene production facilities and related assets. Its business and operations are conducted through Westlake Chemical OpCo LP (OpCo). OpCo's assets are comprised of three ethylene production facilities, which primarily convert ethane into ethylene and have an aggregate annual capacity of approximately 3.7 billion pounds, and a 200-mile ethylene pipeline. OpCo owns two ethylene production facilities at Westlake's Lake Charles, Louisiana site (Petro 1 and Petro 2, collectively Lake Charles Olefins), with an annual combined capacity of approximately three billion pounds, and one ethylene production facility at Westlake's Calvert City, Kentucky site (Calvert City Olefins), with an annual capacity of approximately 730 million pounds. OpCo produces ethylene co-products, including chemical grade propylene, crude butadiene, pyrolysis gasoline and hydrogen.
Full-Year Results: Net income for 2025 was $49 million or $1.38 per unit, down from the prior year, due to a planned plant turnaround.
Distribution Stability: The company paid its 46th consecutive quarterly distribution, maintaining stable payouts since its 2014 IPO.
Coverage Ratio: 2025 distribution coverage dipped to 0.8x due to the turnaround but is expected to rise above 1.1x in 2026 with no planned outages.
Cash Flow: Distributable cash flow for 2025 was $53 million, down from 2024, but operating reserves remain strong.
Contract Renewal: The Ethylene Sales Agreement with parent Westlake was renewed through 2027 with unchanged terms, supporting cash flow predictability.
Growth Outlook: No turnarounds are planned for 2026, which should result in higher production, sales, and improved financial metrics.
