Westlake Chemical Partners
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Westlake Chemical Partners (WLKP) investor relations material

Westlake Chemical Partners Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary30 Oct, 2025

Executive summary

  • Q3 2025 consolidated net income was $86.2 million on $308.9 million in net sales, down from $104.1 million in Q3 2024, mainly due to higher feedstock and energy costs and lower third-party sales prices, but up sequentially from Q2 2025 after the planned turnaround.

  • Net income attributable to the partnership for Q3 2025 was $14.7 million ($0.42 per unit), down from $18.1 million in Q3 2024, but stable sequentially.

  • The ethylene sales agreement with Westlake was renewed through 2027 at unchanged terms, ensuring stable, fee-based cash flows for 95% of production.

Financial highlights

  • Q3 2025 net sales increased 11.5% year-over-year to $308.9 million, driven by higher ethylene sales prices and volumes to Westlake.

  • Gross profit for Q3 2025 was $99.4 million (32.2% margin), down from $116.9 million (42.2% margin) in Q3 2024, due to higher feedstock and energy costs.

  • MLP distributable cash flow for Q3 2025 was $14.9 million, down $3 million year-over-year, primarily due to higher maintenance capital expenditures.

  • Quarterly distribution of $0.4714 per unit was declared, to be paid November 26, 2025, marking the 45th consecutive quarterly distribution.

  • Cumulative distribution coverage ratio since IPO is approximately 1.05x.

Outlook and guidance

  • No planned turnarounds for the remainder of 2025 or in 2026, with production returned to nameplate capacity after the Petro 1 turnaround.

  • Predictable, fee-based cash flows expected to continue due to the renewed ethylene sales agreement with take-or-pay protections.

Future distribution coverage post-turnaround?
Significance of ESA renewal for stability?
Partnership's strategy for future growth?
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Frequently asked questions

Westlake Chemical Partners LP produces ethylene and its co-products, including various types of polyethylene resins, aliphatic hydrocarbons, glycols, and associated alcohols with their respective co-products, and factors. It also offers polymer resins; aqueous ammonium hydroxide solution that is used in certain industrial applications as a chemical intermediate and to neutralize acids. It serves chemical resins manufacturers and plastic processors primarily in North America. Westlake Chemical Partners LP was founded in 2014 and is headquartered in Houston, Texas.

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