Westlake Chemical Partners LP Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy WLKP?
Source: seekingalpha
- Stable Income Performance: Westlake Chemical Partners reported a full-year 2025 net income of $49 million or $1.38 per unit, reflecting a $13 million decrease from the previous year, yet still demonstrating stable cash flows and predictable earnings that ensure continued distributions to unit holders.
- Q4 Financial Data: For Q4 2025, net income was $15 million or $0.41 per unit, with consolidated net sales of $323 million and distributable cash flow of $19 million, an increase of $4 million year-over-year, indicating positive impacts from reduced maintenance capital expenditures.
- Future Growth Strategy: Management emphasized that the absence of planned turnarounds in 2026 will drive production and sales volume growth, with expectations for distributable cash flow and coverage ratios to recover to historical levels, targeting a coverage ratio above 1.1x, showcasing confidence in future growth.
- Ethylene Sales Agreement Renewal: The successful renewal of the Ethylene Sales Agreement through 2027, with unchanged contract terms, further solidifies Westlake Chemical's market position, as management continues to leverage a strong balance sheet and four growth levers to deliver long-term value.
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Analyst Views on WLKP
About WLKP
Westlake Chemical Partners LP is a limited partnership formed by Westlake Corporation to operate, acquire, and develop ethylene production facilities and other qualified assets. Its business and operations are conducted through OpCo. OpCo's assets consist of three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, as well as an ethylene pipeline, which primarily converts ethane into ethylene and has an aggregate annual capacity of approximately 3.7 billion pounds, and a 200-mile ethylene pipeline. It 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 3.0 billion pounds. The Company owns one ethylene production facility at Westlake's Calvert City, Kentucky site (Calvert City Olefins), with an annual capacity of approximately 730 million pounds.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Westlake Chemical Partners LP Q4 2025 Earnings Call Highlights
- Stable Income Performance: Westlake Chemical Partners reported a full-year 2025 net income of $49 million or $1.38 per unit, reflecting a $13 million decrease from the previous year, yet still demonstrating stable cash flows and predictable earnings that ensure continued distributions to unit holders.
- Q4 Financial Data: For Q4 2025, net income was $15 million or $0.41 per unit, with consolidated net sales of $323 million and distributable cash flow of $19 million, an increase of $4 million year-over-year, indicating positive impacts from reduced maintenance capital expenditures.
- Future Growth Strategy: Management emphasized that the absence of planned turnarounds in 2026 will drive production and sales volume growth, with expectations for distributable cash flow and coverage ratios to recover to historical levels, targeting a coverage ratio above 1.1x, showcasing confidence in future growth.
- Ethylene Sales Agreement Renewal: The successful renewal of the Ethylene Sales Agreement through 2027, with unchanged contract terms, further solidifies Westlake Chemical's market position, as management continues to leverage a strong balance sheet and four growth levers to deliver long-term value.
See More
Westlake Chemical Partners Reports Strong Q4 Earnings
- Earnings Performance: Westlake Chemical Partners reported a GAAP EPS of $0.41 for Q4, indicating stable profitability amidst a complex market environment, which may attract investor interest.
- Revenue Growth: The company achieved revenue of $323.05 million in Q4, reflecting an 11.4% year-over-year increase, showcasing strong market demand and effective operational strategies in the chemical sector.
- Coverage Ratio Improvement: Following the completion of the Petro 1 turnaround, Westlake's coverage ratio improved to 1.13x, indicating enhanced financial health that supports future investment and dividend capabilities.
- Financial Transparency: Westlake Chemical Partners provided detailed financial information and historical earnings data, boosting investor confidence in the company's long-term growth potential and further solidifying its market position.
See More
Westlake Chemical Partners Set to Release Q4 Earnings
- Earnings Announcement Schedule: Westlake Chemical Partners is set to announce its Q4 earnings on February 24 before the market opens, with a consensus EPS estimate of $0.38, indicating investor interest in the company's financial performance.
- Earnings Estimate Changes: Over the past three months, EPS estimates for Westlake Chemical Partners have seen no upward revisions and one downward revision, reflecting a cautious market sentiment regarding its profitability, which may impact investor confidence.
- Quant Rating Insights: Seeking Alpha's Quant Rating on Westlake Chemical Partners provides additional analytical perspectives, helping investors better understand the company's financial health and market performance.
- Historical Financial Data: The historical earnings data and dividend scorecard for Westlake Chemical Partners offer crucial reference points for investors, aiding in their decision-making process regarding the company's long-term performance.
See More
Westlake Chemical Partners Declares Quarterly Dividend
- Quarterly Dividend Announcement: Westlake Chemical Partners declared a quarterly dividend of $0.4714 per share, consistent with previous distributions, reflecting the company's stable cash flow and profitability, which bolsters investor confidence.
- Forward Yield: The forward yield of 8.9% offers an attractive return in the current market environment, potentially drawing in more income-focused investors seeking reliable dividend stocks.
- Record Date for Shareholders: The dividend will be payable on February 23, with a record date of February 6 and an ex-dividend date also on February 6, ensuring eligible shareholders receive their dividends promptly.
- Sales Agreement Renewal: Westlake Chemical Partners renewed its ethylene sales agreement through 2027, ensuring future revenue stability while supporting the company's long-term strategic positioning in the chemical market.
See More
Daily Upgrade Report for the Validea Benjamin Graham Strategy - December 12, 2025
Harley-Davidson Stock Update: Harley-Davidson Inc. (HOG) has seen its rating increase from 43% to 86% based on Benjamin Graham's value investing strategy, indicating strong interest due to improved fundamentals and valuation.
Westlake Chemical Partners Stock Update: Westlake Chemical Partners LP (WLKP) also experienced a rating boost from 57% to 86%, reflecting favorable underlying fundamentals and stock valuation according to the same investment strategy.
Benjamin Graham's Influence: Benjamin Graham, known as the "Father of Value Investing," significantly impacted the investment world, mentoring notable investors like Warren Buffett and achieving impressive returns during his career.
Validea's Investment Research: Validea provides investment research based on the strategies of legendary investors, offering stock analysis and model portfolios aimed at outperforming the market over the long term.
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Upcoming Ex-Dividend Dates for 10 Stocks – Week of November 10, 2025
Dividend Stocks at 52-Week Lows: Several dividend stocks are currently trading near their 52-week lows, presenting potential buying opportunities for investors.
Ex-Dividend Dates: A list of ten stocks is highlighted, which are approaching their ex-dividend dates this week, meaning investors must purchase them before these dates to qualify for the next dividend payout.
See More
Westlake Chemical Partners LP Q4 2025 Earnings Call Highlights
- Stable Income Performance: Westlake Chemical Partners reported a full-year 2025 net income of $49 million or $1.38 per unit, reflecting a $13 million decrease from the previous year, yet still demonstrating stable cash flows and predictable earnings that ensure continued distributions to unit holders.
- Q4 Financial Data: For Q4 2025, net income was $15 million or $0.41 per unit, with consolidated net sales of $323 million and distributable cash flow of $19 million, an increase of $4 million year-over-year, indicating positive impacts from reduced maintenance capital expenditures.
- Future Growth Strategy: Management emphasized that the absence of planned turnarounds in 2026 will drive production and sales volume growth, with expectations for distributable cash flow and coverage ratios to recover to historical levels, targeting a coverage ratio above 1.1x, showcasing confidence in future growth.
- Ethylene Sales Agreement Renewal: The successful renewal of the Ethylene Sales Agreement through 2027, with unchanged contract terms, further solidifies Westlake Chemical's market position, as management continues to leverage a strong balance sheet and four growth levers to deliver long-term value.
See More
Westlake Chemical Partners Reports Strong Q4 Earnings
- Earnings Performance: Westlake Chemical Partners reported a GAAP EPS of $0.41 for Q4, indicating stable profitability amidst a complex market environment, which may attract investor interest.
- Revenue Growth: The company achieved revenue of $323.05 million in Q4, reflecting an 11.4% year-over-year increase, showcasing strong market demand and effective operational strategies in the chemical sector.
- Coverage Ratio Improvement: Following the completion of the Petro 1 turnaround, Westlake's coverage ratio improved to 1.13x, indicating enhanced financial health that supports future investment and dividend capabilities.
- Financial Transparency: Westlake Chemical Partners provided detailed financial information and historical earnings data, boosting investor confidence in the company's long-term growth potential and further solidifying its market position.
See More
Westlake Chemical Partners Set to Release Q4 Earnings
- Earnings Announcement Schedule: Westlake Chemical Partners is set to announce its Q4 earnings on February 24 before the market opens, with a consensus EPS estimate of $0.38, indicating investor interest in the company's financial performance.
- Earnings Estimate Changes: Over the past three months, EPS estimates for Westlake Chemical Partners have seen no upward revisions and one downward revision, reflecting a cautious market sentiment regarding its profitability, which may impact investor confidence.
- Quant Rating Insights: Seeking Alpha's Quant Rating on Westlake Chemical Partners provides additional analytical perspectives, helping investors better understand the company's financial health and market performance.
- Historical Financial Data: The historical earnings data and dividend scorecard for Westlake Chemical Partners offer crucial reference points for investors, aiding in their decision-making process regarding the company's long-term performance.
See More
Westlake Chemical Partners Declares Quarterly Dividend
- Quarterly Dividend Announcement: Westlake Chemical Partners declared a quarterly dividend of $0.4714 per share, consistent with previous distributions, reflecting the company's stable cash flow and profitability, which bolsters investor confidence.
- Forward Yield: The forward yield of 8.9% offers an attractive return in the current market environment, potentially drawing in more income-focused investors seeking reliable dividend stocks.
- Record Date for Shareholders: The dividend will be payable on February 23, with a record date of February 6 and an ex-dividend date also on February 6, ensuring eligible shareholders receive their dividends promptly.
- Sales Agreement Renewal: Westlake Chemical Partners renewed its ethylene sales agreement through 2027, ensuring future revenue stability while supporting the company's long-term strategic positioning in the chemical market.
See More
Daily Upgrade Report for the Validea Benjamin Graham Strategy - December 12, 2025
Harley-Davidson Stock Update: Harley-Davidson Inc. (HOG) has seen its rating increase from 43% to 86% based on Benjamin Graham's value investing strategy, indicating strong interest due to improved fundamentals and valuation.
Westlake Chemical Partners Stock Update: Westlake Chemical Partners LP (WLKP) also experienced a rating boost from 57% to 86%, reflecting favorable underlying fundamentals and stock valuation according to the same investment strategy.
Benjamin Graham's Influence: Benjamin Graham, known as the "Father of Value Investing," significantly impacted the investment world, mentoring notable investors like Warren Buffett and achieving impressive returns during his career.
Validea's Investment Research: Validea provides investment research based on the strategies of legendary investors, offering stock analysis and model portfolios aimed at outperforming the market over the long term.
See More
Upcoming Ex-Dividend Dates for 10 Stocks – Week of November 10, 2025
Dividend Stocks at 52-Week Lows: Several dividend stocks are currently trading near their 52-week lows, presenting potential buying opportunities for investors.
Ex-Dividend Dates: A list of ten stocks is highlighted, which are approaching their ex-dividend dates this week, meaning investors must purchase them before these dates to qualify for the next dividend payout.
See More
