Westlake Chemical Partners LP (WLKP)
NYSE:WLKP
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Westlake Chemical PRN
(NYSE:WLKP)
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Rating:68Neutral
Price Target:
$23.00
▲(20.67% Upside)
Action:DowngradedDate:02/24/26
The score is driven primarily by solid underlying financial performance (especially cash flow strength) but constrained by cyclical earnings/revenue and a balance-sheet data inconsistency. Technicals are supportive with the unit price above major moving averages, and valuation is helped by a high dividend yield and moderate P/E. Earnings-call guidance is constructive for 2026, though the recent full-year coverage shortfall keeps risk moderate.
Positive Factors
Cash generation
Consistent operating cash flow and positive free cash flow across reporting periods provide durable internal funding for distributions, maintenance capex, and opportunistic growth. Strong cash conversion underpins flexibility to rebuild reserves, service debt, and finance drop‑downs without immediate external funding.
Negative Factors
Cyclicality and turnaround risk
Planned maintenance (Petro 1 turnaround) materially reduced 2025 production and cash flow, pushing coverage well below the partnership's target. Periodic outages and cyclical end‑market demand therefore pose recurring risks to distributable cash flow and can force reserve drawdowns or tougher allocation choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and positive free cash flow across reporting periods provide durable internal funding for distributions, maintenance capex, and opportunistic growth. Strong cash conversion underpins flexibility to rebuild reserves, service debt, and finance drop‑downs without immediate external funding.
Read all positive factors
Westlake Chemical PRN (WLKP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$778.93M
Dividend Yield9.9%
Average Volume (3M)40.95K
Price to Earnings (P/E)2.0
Beta (1Y)0.17
Revenue Growth-0.82%
EPS Growth-20.35%
CountryUS
Employees2,169
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)0.41
Shares Outstanding35,245,880
10 Day Avg. Volume30,731
30 Day Avg. Volume40,953
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.34
Price to Sales (P/S)0.57
P/FCF Ratio3.32
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda2.92
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.85
Revenue Forecast (FY)$1.30B
Westlake Chemical PRN Business Overview & Revenue Model
Company Description
Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company's ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-p...
How the Company Makes Money
Westlake Chemical PRN generates revenue primarily through the production and sale of ethylene and polyethylene products. Its revenue model is based on the volume of products sold, with pricing influenced by market demand and raw material costs. Th...
Westlake Chemical PRN Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced picture: operational stability and contract-backed predictable cash flows enabled Westlake Partners to maintain distributions and solid leverage metrics, and Q4 distributable cash flow improved versus prior-year quarter. However, a planned turnaround in 2025 materially reduced full-year net income and MLP distributable cash flow (both down ~21%), leaving a full-year coverage ratio of 0.8x and causing drawdowns of turnaround-related investment balances. Management highlighted no planned turnarounds in 2026 and a renewed sales agreement through 2027, expecting a recovery in cash flow and coverage, but near-term metrics show meaningful year-over-year declines.Positive Updates
Consistent Distributions and Long Track Record
46 consecutive quarterly distributions since IPO (July 2014) with distributions grown 71% from the original minimum quarterly distribution; quarterly distribution declared of $0.4714 per unit and paid on February 23, 2026.
Negative Updates
Full Year Net Income Decline
Westlake Partners reported full year 2025 net income of $49 million (or $1.38 per unit), a decrease of $13 million (approximately -21.0%) versus full year 2024 net income of $62 million, primarily due to lower production and sales volumes from the planned Petro 1 turnaround.
Read all updates
Q4-2025 Updates
Positive
Negative
Consistent Distributions and Long Track Record
46 consecutive quarterly distributions since IPO (July 2014) with distributions grown 71% from the original minimum quarterly distribution; quarterly distribution declared of $0.4714 per unit and paid on February 23, 2026.
Read all positive updates
Company Guidance
Guidance from the call was that Westlake Partners expects no planned turnarounds in 2026, which should drive solid production and sales volume growth and a recovery in distributable cash flow and the coverage ratio back toward historical levels (management expects coverage to rise above its ~1.1x target). Key metrics cited: Q4 2025 MLP distributable cash flow was $19 million ($0.53/unit) (Q4 2024: $15M), full-year 2025 MLP distributable cash flow was $53 million (down from $67M in 2024) with full-year distribution coverage of 0.8x, partnership net income for FY2025 of $49M ($1.38/unit) and Q4 partnership net income of $15M ($0.41/unit), consolidated net income including OpCo of $299M for FY2025 and $84M in Q4 on consolidated sales of $323M. Balance-sheet and liquidity metrics to support the outlook include consolidated cash and investments of $68M at quarter end, an operating surplus of approximately $74M, long-term debt of $400M ($377M at the Partnership, $23M at OpCo), OpCo 2025 capex of $79M, and consolidated leverage below 1.0x; management also noted the fixed-margin ethylene sales contract (covering ~95% of plant production) was renewed through 2027 and that future growth would be financed via drop-downs and a mix of debt and/or equity.Westlake Chemical PRN Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.17B | 1.14B | 1.19B | 1.59B | 1.21B |
| Gross Profit | 347.85M | 418.94M | 387.46M | 377.37M | 441.71M |
| EBITDA | 450.00M | 507.59M | 472.14M | 470.33M | 519.56M |
| Net Income | 298.58M | 62.39M | 54.28M | 64.17M | 82.55M |
Balance Sheet | |||||
| Total Assets | 1.26B | 1.29B | 1.32B | 1.37B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 44.27M | 58.32M | 58.62M | 64.78M | 17.06M |
| Total Debt | 399.67M | 399.67M | 399.67M | 399.67M | 399.67M |
| Total Liabilities | 454.18M | 458.64M | 460.59M | 468.27M | 508.00M |
| Stockholders Equity | 501.11M | 518.70M | 522.51M | 534.50M | 536.55M |
Cash Flow | |||||
| Free Cash Flow | 201.65M | 436.03M | 405.18M | 409.62M | 327.27M |
| Operating Cash Flow | 280.47M | 485.00M | 452.00M | 463.74M | 408.44M |
| Investing Cash Flow | 31.18M | -88.97M | -75.94M | -12.00M | -64.30M |
| Financing Cash Flow | -325.70M | -396.33M | -382.23M | -404.01M | -344.24M |
Westlake Chemical PRN Technical Analysis
Positive
19.06
Price Trends
21.72
Positive
20.28
Positive
20.25
Positive
Market Momentum
0.11
Positive
51.53
Neutral
61.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLKP, the sentiment is Positive. The current price of 19.06 is below the 20-day moving average (MA) of 22.18, below the 50-day MA of 21.72, and below the 200-day MA of 20.25, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 61.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLKP.
Westlake Chemical PRN Risk Analysis
Westlake Chemical PRN disclosed 2 risk factors in its most recent earnings report. Westlake Chemical PRN reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westlake Chemical PRN Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $778.93M | 1.99 | 23.49% | 9.90% | -0.82% | -20.35% | |
68 Neutral | $1.08B | 25.00 | 4.90% | ― | 12.49% | 95.48% | |
64 Neutral | $661.88M | 9.44 | 6.06% | 3.81% | -5.05% | 35.01% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $1.47B | -1.41 | -29.85% | 8.27% | -7.81% | -334.15% | |
52 Neutral | $654.64M | -4.74 | -99.69% | ― | -9.75% | -386.63% | |
43 Neutral | $1.22B | -0.66 | 142.56% | ― | -10.68% | 36.31% |
* Basic Materials Sector Average
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Westlake Chemical PRN Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Westlake Chemical Partners Highlights Q4 Recovery, Maintains Distribution
Positive
Feb 24, 2026
Westlake Chemical Partners LP reported fourth-quarter 2025 net income attributable to the partnership of $14.5 million, or $0.41 per unit, essentially flat versus a year earlier, with operating cash flow down to $120.4 million but MLP distributabl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.