Westlake Chemical Partners LP Common Units (WLKP) Q2 2025 Earnings Call Transcript
Net Income (Westlake Partners) $15 million or $0.41 per unit for Q2 2025, essentially in line with Q2 2024. Stability attributed to the fixed margin ethylene sales agreement.
Consolidated Net Income (including OpCo) $86 million for Q2 2025, includes a $14 million benefit to OpCo from the ethylene sales agreement due to production shortfalls.
Distributable Cash Flow $15 million or $0.43 per unit for Q2 2025, decreased by $2 million year-over-year due to higher maintenance capital expenditures from the Petro 1 planned turnaround.
Consolidated Cash Balance and Investments $81 million at the end of Q2 2025, reflecting strong cash management.
Long-term Debt $400 million at the end of Q2 2025, with $377 million at the Partnership and $23 million at OpCo.
Capital Expenditures (OpCo) $24 million in Q2 2025, primarily due to the Petro 1 turnaround.
Quarterly Distribution $0.4714 per unit for Q2 2025, marking the 44th consecutive quarterly distribution since IPO in 2014, with a 71% growth since the original minimum distribution.
Trade with 70% Backtested Accuracy
Analyst Views on WLKP
About WLKP
About the author
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.
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.
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.
Westlake Chemical Partners (WLKP) Maintains 4.8% Profit Margin, Supporting Steady Yield Story
Financial Performance: Westlake Chemical Partners (WLKP) reported a net profit margin of 4.8%, consistent with last year, but has experienced a 6.7% annual decline in earnings over the past five years, with recent negative growth.
Valuation Concerns: Shares are trading at $18.86, significantly below the fair value estimate of $49.88, indicating a notable discount compared to industry peers, which may attract value-seeking investors.
Investor Sentiment: Despite declining earnings, the company is viewed as a "safe haven" for yield due to stable cash flows and secure distribution agreements, appealing to income-focused investors amid sector volatility.
Long-term Outlook: While there are concerns about dividend sustainability and financial strength, the high quality of reported earnings and the partnership's structure provide some reassurance against cyclical downturns.
Highlights from Westlake Chemical Partners LP (WLKP) Q3 2025 Earnings Call: Robust Financial Position
Financial Performance: Westlake Chemical Partners LP reported a net income of $15 million or $0.42 per unit for Q3 2025, with consolidated net income of $86 million on net sales of $309 million, although this was lower than the previous year due to reduced margins on ethylene sales.
Distributions and Cash Flow: The partnership announced a quarterly distribution of $0.4714 per unit, marking 45 consecutive distributions since its IPO, despite a decrease in distributable cash flow attributed to higher maintenance capital expenditures and a planned turnaround.
Operational Developments: A planned turnaround at the Petro 1 Eyne unit positively impacted sales and earnings, and the ethylene sales agreement with Westlake was renewed through 2027, ensuring stable cash flows.
Outlook and Challenges: The CEO indicated that the shortfall in distributable cash flow was temporary due to the turnaround, and future cash flows are expected to cover distributions, despite challenges from a soft global industrial environment.
Transcript of Westlake Partners' Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
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.
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.
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.
Westlake Chemical Partners (WLKP) Maintains 4.8% Profit Margin, Supporting Steady Yield Story
Financial Performance: Westlake Chemical Partners (WLKP) reported a net profit margin of 4.8%, consistent with last year, but has experienced a 6.7% annual decline in earnings over the past five years, with recent negative growth.
Valuation Concerns: Shares are trading at $18.86, significantly below the fair value estimate of $49.88, indicating a notable discount compared to industry peers, which may attract value-seeking investors.
Investor Sentiment: Despite declining earnings, the company is viewed as a "safe haven" for yield due to stable cash flows and secure distribution agreements, appealing to income-focused investors amid sector volatility.
Long-term Outlook: While there are concerns about dividend sustainability and financial strength, the high quality of reported earnings and the partnership's structure provide some reassurance against cyclical downturns.
Highlights from Westlake Chemical Partners LP (WLKP) Q3 2025 Earnings Call: Robust Financial Position
Financial Performance: Westlake Chemical Partners LP reported a net income of $15 million or $0.42 per unit for Q3 2025, with consolidated net income of $86 million on net sales of $309 million, although this was lower than the previous year due to reduced margins on ethylene sales.
Distributions and Cash Flow: The partnership announced a quarterly distribution of $0.4714 per unit, marking 45 consecutive distributions since its IPO, despite a decrease in distributable cash flow attributed to higher maintenance capital expenditures and a planned turnaround.
Operational Developments: A planned turnaround at the Petro 1 Eyne unit positively impacted sales and earnings, and the ethylene sales agreement with Westlake was renewed through 2027, ensuring stable cash flows.
Outlook and Challenges: The CEO indicated that the shortfall in distributable cash flow was temporary due to the turnaround, and future cash flows are expected to cover distributions, despite challenges from a soft global industrial environment.
Transcript of Westlake Partners' Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
