WLKP

Annual Report Filing: Westlake Chemical Partners LP filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with the SEC on March 5, 2025, which is available on their website.

Partnership Overview: The Partnership, based in Houston, operates and develops ethylene production facilities and holds a 22.8% interest in Westlake Chemical OpCo LP, which includes processing facilities in Kentucky and Louisiana.

Financial Performance: Westlake Chemical Partners LP reported a net income of $15.0 million for Q4 2024, slightly up from $14.3 million in Q4 2023, with cash flows from operating activities increasing to $132.5 million due to higher net income and favorable working capital changes.

Future Outlook: The company plans to conduct a maintenance turnaround at its Petro 1 ethylene unit in early 2025, which may temporarily affect production and coverage ratios, but anticipates improved cash flows post-turnaround due to rising third-party ethylene prices and margins.

Q4 Revenue Performance: Westlake Chemical Partners reported Q4 revenue of $290.06 million, a slight decrease from $297.27 million the previous year, but noted strong performance in 2024 due to deferred maintenance at their Petro 1 ethylene unit, which allowed them to capitalize on favorable market conditions.

Future Outlook: The company anticipates a planned maintenance turnaround at the Petro 1 unit in early 2025, which may temporarily reduce their coverage ratio below 1.00x; however, they expect sufficient cash flow to maintain distributions and foresee improved cash flows post-2025 due to rising ethylene prices and margins.

Q4 Financial Performance: Westlake Chemical Partners reported a Q4 GAAP EPS of $0.43 and revenue of $290.06 million, which represents a 2.4% year-over-year decline and missed expectations by $789.94 million.

Investment Outlook: Despite offering a stable dividend yield of 8%, the company is not seen as a value investment opportunity due to fluctuating ethylene prices and a lack of growth momentum.

Earnings Reports Overview: Several companies, including Summit Therapeutics, Domino's Pizza, and Owens Corning, are set to report their earnings for the quarter ending December 31, 2024, with varying forecasts indicating increases or decreases in earnings per share compared to the previous year.

Industry Comparisons: The Price to Earnings ratios for these companies show significant differences when compared to industry averages, suggesting varied growth prospects within their respective sectors.

Hess Midstream and Other Companies' Dividend Announcements: Hess Midstream declared a quarterly cash distribution of $0.7012 per Class A share, marking an increase supported by excess adjusted free cash flow; Westlake Chemical Partners announced a distribution of $0.4714 per unit, while Kimberly-Clark raised its quarterly dividend to $1.26 per share, continuing a 53-year trend of increases.

Norfolk Southern's Consistent Dividend Payments: Norfolk Southern announced a quarterly dividend of $1.35 per share, maintaining a record of paying dividends for 170 consecutive quarters since its inception in 1982.

Distribution Announcement: Westlake Chemical Partners GP LLC has declared a quarterly distribution of $0.4714 per unit, marking the 42nd distribution since its IPO, payable on February 25, 2025, to unit holders of record by February 7, 2025.

Tax Implications for Non-U.S. Investors: The Partnership's distributions to non-U.S. investors will be subject to federal income tax withholding at the highest applicable rate, as they are considered effectively connected with a U.S. trade or business.

Financial Performance: Westlake Chemical Partners LP reported a net income of $18.1 million for Q3 2024, an increase from $13.2 million in Q3 2023, driven by higher ethylene sales volumes and margins. Cash flows from operating activities also rose to $126.1 million, up from $100.9 million year-over-year.

Future Outlook: The company anticipates some moderation in distributable cash flow for Q4 2024 due to increased maintenance capital spending and the planned turnaround at its Petro 1 ethylene unit, although it expects continued strong cash flows and distributions to unitholders based on improved third-party ethylene margins.

Distribution Announcement: Westlake Chemical Partners GP LLC has declared a quarterly distribution of $0.4714 per unit, marking the 41st distribution since its IPO, payable on November 27, 2024, to unit holders recorded by November 12, 2024.

Tax Implications for Non-U.S. Investors: The Partnership's distributions to non-U.S. investors will be subject to federal income tax withholding at the highest applicable rate, as they are considered effectively connected with a U.S. trade or business.

ETF Analyst Target Price: The FT Energy Income Partners Enhanced Income ETF (EIPI) has an implied analyst target price of $21.17 per unit, indicating a potential upside of 9.96% from its recent trading price of $19.25.

Underlying Holdings Performance: Notable underlying holdings such as Plains All American Pipeline LP, Westlake Chemical Partners LP, and Energy Transfer LP show significant upside potential, with expected increases ranging from 18.34% to 27.00% based on average analyst target prices.

U.S. Stock Futures: U.S. stock futures showed mixed results, with Dow futures up by 0.1% while several companies, including PDD Holdings Inc, experienced significant pre-market losses after disappointing earnings reports.

PDD Holdings Performance: PDD Holdings reported a revenue growth of 86% year-on-year but missed analyst expectations, leading to a sharp decline in its shares by 15.2% in pre-market trading. Other companies like SM Energy Co and Daqo New Energy Corp also saw notable drops in their stock prices.

Financial Performance: Westlake Chemical Partners LP reported a net income of $14.4 million for Q2 2024, an increase from $11.9 million in Q2 2023, with cash flows from operating activities rising to $121.9 million due to higher production and sales volumes.

Future Outlook: The company is preparing for a maintenance turnaround at its Petro 1 ethylene unit, which may temporarily impact earnings, but anticipates improved third-party ethylene sales prices and margins moving forward.

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