Key Points – 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…
mains 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.
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…