Westlake Chemical Partners LP Earnings Call Transcripts
Fiscal Year 2026
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Net income and distributions remained stable in Q2 2026, supported by a fixed margin agreement that shields cash flows from market volatility. Leverage and coverage ratios remain strong, with no planned turnarounds in 2026 and continued focus on reliable distributions.
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First quarter 2026 net income rose to $14 million, with distributable cash flow up $13 million year-over-year. Stable operations, strong coverage ratios, and higher third-party ethylene margins were supported by global supply disruptions.
Fiscal Year 2025
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Full year 2025 net income was $49 million, with stable cash flows supported by a fixed margin sales agreement. Distributable cash flow and coverage dipped due to a planned turnaround, but both are expected to recover in 2026 with no major maintenance planned.
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Net income for Q3 2025 was $15 million, with lower year-over-year distributable cash flow due to higher maintenance spending. The ethylene sales agreement was renewed through 2027, supporting stable distributions despite ongoing global industry softness.
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Second quarter 2025 net income was $15 million, with stable cash flows supported by a fixed margin ethylene sales agreement. The successful Petro-1 turnaround and strong leverage metrics position the partnership for continued reliable distributions despite a soft global market.
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Q1 2025 net income fell to $5M due to a planned turnaround at Petro One, reducing production and sales. Despite this, stable fee-based cash flows supported the 43rd consecutive quarterly distribution, and no further turnarounds are planned through 2026.
Fiscal Year 2024
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Full year 2024 net income rose to $62 million, with stable cash flows and 42 consecutive quarterly distributions. A planned 2025 turnaround will temporarily impact coverage, but favorable ethylene market conditions are expected to support future performance.
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Q3 2024 net income rose to $18M, driven by higher ethylene prices and strategic sales timing. Distributable cash flow reached its highest since 2022, and a planned turnaround was deferred to Q1 2025 to capitalize on strong market conditions.
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Q2 2024 net income rose to $14M, driven by higher production and improved ethylene margins. The 40th consecutive quarterly distribution was announced, and a 60-day turnaround at Petro 1 is expected to temporarily impact earnings and coverage.