Westlake Chemical Partners LP (WLKP)
NYSE:WLKP
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Westlake Chemical PRN
(NYSE:WLKP)
Select Model
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Rating:80Outperform
Price Target:
$27.00
▲(41.66% Upside)
Action:Reiterated
Date:05/09/26
WLKP scores well primarily on strong cash-flow performance and an unusually cheap valuation with a high dividend yield. Technicals add support with an uptrend versus key moving averages. Offsetting the score are earnings/revenue cyclicality and a modest distribution coverage cushion near 1.0x, plus limited upside from a predominantly fixed-margin contract.
Positive Factors
Free cash flow generation
Sustained operating and free cash flow (high Cash Flow score) provides durable internal funding for distributions, maintenance capex, and opportunistic growth. Strong cash conversion reduces refinancing needs and supports capital allocation even through commodity cycles.
Negative Factors
Counterparty concentration
Heavy reliance on a single affiliate counterparty concentrates commercial and credit risk and ties economics to related‑party terms. Structural dependence limits bargaining leverage and exposes cash flow to any deterioration in the sponsor relationship or contract renegotiation outcomes.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained operating and free cash flow (high Cash Flow score) provides durable internal funding for distributions, maintenance capex, and opportunistic growth. Strong cash conversion reduces refinancing needs and supports capital allocation even through commodity cycles.
Read all positive factors
Westlake Chemical PRN (WLKP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$800.43M
Dividend Yield9.9%
Average Volume (3M)28.50K
Price to Earnings (P/E)2.4
Beta (1Y)0.16
Revenue Growth13.40%
EPS Growth10.28%
CountryUS
Employees2,169
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)3.62
Shares Outstanding35,245,880
10 Day Avg. Volume40,125
30 Day Avg. Volume28,500
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 Cap1.43
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit2.96
Enterprise Value/Ebitda2.46
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
WLKP makes money primarily by manufacturing and selling ethylene (or providing ethylene production capacity) under long-term, fee-based/contractual arrangements with its sponsor/affiliate, Westlake Corporation. Revenue is largely driven by contrac...
Westlake Chemical PRN Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presents a cautiously positive tone: year‑over‑year improvements in net income and distributable cash flow, a restored coverage ratio to 1.0x, continued consecutive distributions with cumulative stability, and a strong balance sheet and leverage metrics. Offsetting factors include only modest sequential earnings changes driven by lower volumes, limited upside due to a predominantly fixed‑margin contract (95% of volumes), some year‑over‑year softness in third‑party sales on a revenue basis, and geopolitical risks that create both opportunity and volatility. Management highlighted opportunistic third‑party sales and no planned 2026 turnarounds, supporting a constructive near‑term outlook.Positive Updates
Net Income and Consolidated Results
Westlake Partners reported first quarter 2026 net income of $14 million ( $0.40 per unit ) and consolidated net income including OpCo of $82 million on consolidated net sales of $306 million.
Negative Updates
Slight Sequential Decline in Net Income Due to Lower Volumes
Net income for Westlake Partners declined by less than $1 million versus Q4 2025, attributed to slightly lower production and sales volumes that only partially were offset by higher third-party average sales prices.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Income and Consolidated Results
Westlake Partners reported first quarter 2026 net income of $14 million ( $0.40 per unit ) and consolidated net income including OpCo of $82 million on consolidated net sales of $306 million.
Read all positive updates
Company Guidance
Management's guidance emphasized stability and no planned turnarounds for 2026, supported by Q1 results of Westlake Partners net income $14M ($0.40/unit), consolidated net income $82M on consolidated net sales of $306M, distributable cash flow $18M ($0.51/unit), and an announced quarterly distribution of $0.4714/unit payable June 1 (record May 14); they noted Q1 coverage ratio of 1.0x (trailing 12‑month coverage improved to 1.0x from 0.8x), an operating surplus improvement of $1M, distributable cash flow up $13M vs. Q1 2025 and net income $9M above Q1 2025. Balance‑sheet and cash metrics cited for modeling include consolidated cash and cash investments with Westlake of $81M, long‑term debt $400M (Partnership $377M; OpCo $23M), consolidated leverage ~1x, OpCo Q1 capex $6M, ~5% of ethylene sold to third parties (with the remainder under a $0.10/lb fixed margin to Westlake), 47 consecutive quarterly distributions, ~1x cumulative distribution coverage since IPO and distributions grown 71% since the original $0.275 minimum; management reiterated four growth levers (increase OpCo ownership, acquisitions, organic expansions and negotiating higher fixed margin) if market opportunities warrant.Westlake Chemical PRN Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.23B | 1.17B | 1.14B | 1.19B | 1.59B | 1.21B |
| Gross Profit | 387.53M | 347.85M | 418.94M | 387.46M | 377.37M | 441.71M |
| EBITDA | 466.81M | 450.00M | 507.59M | 472.14M | 470.33M | 519.56M |
| Net Income | 195.12M | 298.58M | 62.39M | 54.28M | 64.17M | 82.55M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.26B | 1.29B | 1.32B | 1.37B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 44.29M | 44.27M | 58.32M | 58.62M | 64.78M | 17.06M |
| Total Debt | 399.67M | 399.67M | 399.67M | 399.67M | 399.67M | 399.67M |
| Total Liabilities | 443.31M | 454.18M | 458.64M | 460.59M | 468.27M | 508.00M |
| Stockholders Equity | 498.66M | 501.11M | 518.70M | 522.51M | 534.50M | 536.55M |
Cash Flow | ||||||
| Free Cash Flow | 276.47M | 201.65M | 436.03M | 405.18M | 409.62M | 327.27M |
| Operating Cash Flow | 344.89M | 280.47M | 485.00M | 452.00M | 463.74M | 408.44M |
| Investing Cash Flow | -1.42M | 31.18M | -88.97M | -75.94M | -12.00M | -64.30M |
| Financing Cash Flow | -348.80M | -325.70M | -396.33M | -382.23M | -404.01M | -344.24M |
Westlake Chemical PRN Technical Analysis
Positive
19.06
Price Trends
22.14
Positive
21.21
Positive
20.17
Positive
Market Momentum
0.22
Positive
50.04
Neutral
19.26
Positive
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 22.56, below the 50-day MA of 22.14, and below the 200-day MA of 20.17, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $800.43M | 2.40 | 38.87% | 9.90% | 13.40% | 10.28% | |
71 Outperform | $998.28M | 13.80 | 8.91% | ― | 21.54% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | $588.52M | -10.59 | 1.28% | 3.81% | -0.63% | -87.72% | |
49 Neutral | $1.64B | 1.33 | 142.56% | ― | -13.10% | -0.68% | |
48 Neutral | $606.27M | -2.20 | -153.52% | ― | -10.59% | -571.99% | |
47 Neutral | $1.27B | -3.77 | -39.95% | 8.27% | -4.02% | -206.93% |
* Basic Materials Sector Average
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Westlake Chemical PRN Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Westlake Chemical PRN Boosts Distribution After Strong Quarter
Positive
May 5, 2026
Westlake Chemical Partners LP reported that in the first quarter of 2026 it generated net income attributable to the Partnership of $14.2 million, or $0.40 per unit, sharply higher than the $4.9 million earned a year earlier, as higher production ...
Executive/Board Changes
Westlake Chemical PRN announces new chief financial officer
Positive
Apr 20, 2026
On April 20, 2026, Westlake Chemical Partners LP announced that Jonathan H. Baksht will become Senior Vice President and Chief Financial Officer and a director of its general partner, Westlake Chemical Partners GP LLC, effective June 15, 2026. Con...
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.