WLKP News & Events

Westlake Chemical Partners files $500M mixed securities shelf

Reports Q3 revenue $308.9M vs. $277M last year. "During Q3 of 2025, OpCo's assets ran well and production returned to nameplate capacity levels following the completion of the planned Petro 1 turnaround in the first half of the year. While spot ethylene prices declined throughout the third quarter, there was minimal impact on the Partnership's cash flows due to the Ethylene Sales Agreement with Westlake that provides a predictable, fee-based cash flow structure with take-or-pay protections for 95% of OpCo's production," said CEO Jean-Marc Gilson. "Given its importance to the stability and predictability of the Partnership's cash flows, we were pleased that OpCo renewed the Ethylene Sales Agreement with Westlake earlier this week with no changes to the contract's terms or conditions. We look forward to continuing our mutually-beneficial relationship with Westlake for years to come."

Westlake Chemical Partners (WLKP) announced that Westlake Chemical OpCo LP and Westlake Corporation (WLK) agreed to renew the Ethylene Sales Agreement between the parties through December 31, 2027 in accordance with its terms, which provides for an initial term through December 31, 2026 and automatic 12-month renewal periods until terminated at the end of the initial term or any renewal term on not less than 12-months' notice. The renewal of the Ethylene Sales Agreement will facilitate continued offtake on attractive terms for 95% of the ethylene produced by OpCo. The renewed agreement maintains the same pricing formula and sales volume protections that have provided the Partnership with the distributable cash flow to make 45 consecutive quarterly distributions to unitholders, without any decreases, since its initial public offering in 2014. In connection with the renewal of the Ethylene Sales Agreement, OpCo and certain affiliates of Westlake entered into an amendment to the Services and Secondment Agreement to align the term of such agreement with the term of the Ethylene Sales Agreement. In addition, the Partnership, OpCo and certain affiliates of Westlake also entered into an amendment to the Omnibus Agreement to provide that the Omnibus Agreement would terminate upon termination of the Ethylene Sales Agreement. The amendment also addressed certain procedural requirements in connection with Westlake's obligation to indemnify the Partnership for certain matters, including, among others, environmental and tax matters, under the Omnibus Agreement.

Reports Q2 revenue $297.12M vs. $284.17M last year. "The Partnership's second quarter financial results improved significantly from the first quarter of 2025 due to higher production and sales volume at our Petro 1 facility as a result of fewer production days lost to the turnaround that began at the end of January and lasted until early April. While there were some lingering impacts to distributable cash flow in the second quarter from the extension of the turnaround into April, primarily in the form of elevated maintenance capital expenditures, this was not unexpected and should not re-occur at such a high level in future quarters," said CEO Jean-Marc Gilson. "Looking ahead, we expect distributable cash flow and the associated coverage ratio to solidly improve in the second half of 2025 back towards our strong historical levels now that the Petro 1 turnaround has been completed."