Westlake Chemical Partners Q2 Earnings Call Highlights

Stable quarterly performance: Westlake Chemical Partners reported second-quarter net income of $14 million, or $0.40 per unit, while distributable cash flow rose to $18 million, or $0.50 per unit, supported by higher production and sales volumes.

Distribution remains well supported: The partnership declared a $0.4714 per-unit distribution, its 48th consecutive quarterly payout without a reduction. Trailing 12-month distribution coverage improved to 1.04 times.

Financial flexibility and growth options: WLKP extended its revolving credit agreements through 2031 at a lower interest rate and is evaluating growth through higher OpCo ownership, acquisitions, facility expansions, or a higher fixed margin under its Ethylene Sales Agreement.

Westlake Chemical Partners NYSE: WLKP reported second-quarter 2026 net income of $14 million, or $0.40 per unit, matching its first-quarter result as stable production and sales volumes supported the partnership’s fixed-margin business model. President and Chief Executive Officer Jean Marc Gilson said the partnership’s Ethylene Sales Agreement with parent company Westlake Corporation continues to limit exposure to market volatility and production risks. The agreement provides a fixed margin of $0.10 per pound on 95% of the partnership’s ethylene production.

“The stability of Westlake Partners’ business model is consistently demonstrated through our fixed margin Ethylene Sales Agreement, which minimizes market volatility and other production risks,” Gilson said.

Get WLKP alerts: Sign Up Cash Flow and Distribution Coverage The partnership generated distributable cash flow of $18 million, or $0.50 per unit, during the quarter. That was $3 million higher than in the second quarter of 2025, which Chief Financial Officer John Bochert attributed to higher production and sales volumes as well as lower maintenance capital expenditures following the Petro 1 plant turnaround in 2025. The trailing 12-month distribution coverage ratio improved sequentially to 1.04 times from 1.0 times, reflecting the expiration of the impact from the Petro 1 turnaround in the first half of 2025. Gilson said the quarterly coverage ratio was 1.0 time, supported by solid operating rates at OpCo’s ethylene facilities.

On Aug. 3, the partnership declared a quarterly distribution of $0.4714 per unit for the second quarter. The distribution is scheduled to be paid Aug. 28 to unitholders of record as of Aug. 13. The payment marks the partnership’s 48th consecutive quarterly distribution since its July 2014 initial public offering, with no reductions over that period. Bochert said distributions have increased 71% from the original minimum quarterly distribution of $0.275 per unit.

Second-quarter net income: $14 million, or $0.40 per unit Distributable cash flow: $18 million, or $0.50 per unit Quarterly distribution: $0.4714 per unit Trailing 12-month coverage ratio: 1.04 times Consolidated net sales: $297 million

Consolidated Results and Balance Sheet Including the earnings of Westlake Chemical OpCo LP, consolidated net income totaled $82 million on consolidated net sales of $297 million during the second quarter. At quarter-end, the partnership had $93 million of consolidated cash and cash investments with Westlake under its Investment Management Agreement. Long-term debt totaled $400 million, including $377 million at the partnership and $23 million at OpCo. Consolidated leverage stood at approximately one time, according to Bochert. OpCo spent $12 million on capital expenditures during the quarter. Management said there are no planned turnarounds in 2026 for modeling purposes. Revolver Extension and Market Outlook During July, both OpCo and the partne...