NYSE:WLKP Westlake Chemical Partners Q2 2025 Earnings Report $21.97 +0.01 (+0.05%) As of 12:59 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Westlake Chemical Partners EPS ResultsActual EPS$0.41Consensus EPS $0.44Beat/MissMissed by -$0.03One Year Ago EPSN/AWestlake Chemical Partners Revenue ResultsActual Revenue$297.12 millionExpected Revenue$301.00 millionBeat/MissMissed by -$3.88 millionYoY Revenue GrowthN/AWestlake Chemical Partners Announcement DetailsQuarterQ2 2025Date8/5/2025TimeBefore Market OpensConference Call DateTuesday, August 5, 2025Conference Call Time1:00PM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Westlake Chemical Partners Q2 2025 Earnings Call TranscriptProvided by QuartrAugust 5, 2025 ShareLink copied to clipboard.Key Takeaways Neutral Sentiment: Westlake Partners reported Q2 2025 net income of $15 million (US$0.41/unit) and distributable cash flow of $15 million (US$0.43/unit), down US$2 million year-over-year due to higher maintenance capital expenditures for the Petro R1 turnaround. Positive Sentiment: The partnership declared its 44th consecutive quarterly distribution, achieving 71% growth since its IPO and sustaining a cumulative distribution coverage ratio of approximately 1.1×, underscoring reliable unitholder returns. Positive Sentiment: As of quarter-end, consolidated cash and investments totaled $81 million, long-term debt was $400 million, and leverage remained near 1×, enabling funding of operations without accessing capital markets. Positive Sentiment: The 95% take-or-pay ethylene sales agreement with Westlake ensures fixed-margin, fee-based cash flows that insulate the partnership from market volatility and production disruptions. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallWestlake Chemical Partners Q2 202500:00 / 00:00Speed:1x1.25x1.5x2xThere are 5 speakers on the call. Operator00:00:00Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Second Quarter twenty twenty five Earnings Conference Call. During the presentation, all participants will be in a listen only mode. After the speakers' remarks, you will be invited to participate in the question and answer session. Operator00:00:18As a reminder, this conference is being recorded today, 08/05/2025. I would now like to turn the call over to today's host, John Zeller, Westlake Chemical Partners' Vice President and Treasurer. Sir, you may begin. Speaker 100:00:33Thank you. Good afternoon, everyone, and welcome to the Westlake Chemical Partners' Second Quarter twenty twenty five Conference Call. I am joined today by Albert Chao, our Executive Chairman Jean Marc Gilson, our President and CEO Steve Bender, our Executive Vice President and Chief Financial Officer and other members of our management team. During this call, we refer to ourselves as Westlake Partners or the partnership. References to Westlake refer to our parent company, Westlake Corporation, and references to OpCo refer to Westlake Chemical OpCo LP, a subsidiary of Westlake and the partnership, which owns certain olefins assets. Speaker 100:01:12Additionally, when we refer to distributable cash flow, we are referring to Westlake Chemical Partners MLP distributable cash flow. Definitions of these terms are available on the partnership's website. Today, management is going to discuss certain topics that will contain forward looking information that is based on management's beliefs, as well as assumptions made by and information currently available to management. These forward looking statements suggest predictions or expectations and thus are subject to risks or uncertainties. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in our regulatory filings, which are also available on our Investor Relations website. Speaker 100:01:55This morning, Westlake Partners issued a press release with details of our second quarter twenty twenty five financial and operating results. This document is available in the press release section of our webpage at wlkpartners.com. A replay of today's call will be available beginning two hours after the conclusion of this call. The replay can be accessed via the partnership website. Please note that information reported on this call speaks only as of today, 08/05/2025, and therefore you are advised that time sensitive information may no longer be accurate as of the time of any replay. Speaker 100:02:33I would finally advise you that this conference call is being broadcast live through an Internet webcast system that can be accessed on our webpage at wlkpartners.com. Now, I'd like to turn the call over to Jean Marc Gilson. Jean Marc? Speaker 200:02:48Thank you, John. Good afternoon, everyone, and thank you for joining us to discuss our second quarter twenty twenty five results. In this morning's press release, we reported Westlake Partners second quarter twenty twenty five net income of $15,000,000 or $0.41 per unit. Compared to the 2025, our second quarter sales and earnings benefited from fewer production days impacted by the planned turnaround at our PetroR1 ethylene unit in Lake Charles, Louisiana. The stability of Westlake Partners business model is consistently demonstrated through our fixed margin ethylene sales agreement, which minimizes market volatility and other production risk. Speaker 200:03:41The high degree of stability in cash flow when paired with the predictability of our business has enabled us to deliver the long history of reliable distribution and coverage. This quarter's distribution is the forty fourth consecutive quarterly distributions since our IPO in July 2014 without any reductions. I would like now to turn our call over to Steve to provide more detail on the financial and operating results for the quarter. Steve? Speaker 300:04:17Thank you, Jean Marc, and good afternoon, everyone. In this morning's press release, we reported Westlake Partners second quarter twenty twenty five net income of $15,000,000 or $0.41 per unit. Consolidated net income, including OpCo's earnings was $86,000,000 This amount includes a $14,000,000 benefit to OpCo from protection provided by the ethylene sales agreement to insulate it from certain production shortfalls, Speaker 100:04:46such Speaker 300:04:46as the extension of the Petro one turnaround beyond its originally scheduled completion date. Second quarter twenty twenty five net income for Westlake Partners of $15,000,000 was essentially in line with the second quarter twenty twenty four partnership net income. Distributable cash flow of $15,000,000 or $0.43 per unit for the 2025 decreased by $2,000,000 compared to the 2024 due to higher maintenance capital expenditures as a result of the Petro one planned turnaround. Turning our attention to the balance sheet and cash flows. At the end of the second quarter, we had consolidated cash balance and cash investments with Westlake through our investment management agreement totaling $81,000,000 Long term debt at the end of this quarter was $400,000,000 of which $377,000,000 was at the partnership and the remaining $23,000,000 was at OpCo. Speaker 300:05:49In the 2025, OpCo spent $24,000,000 on capital expenditures. We maintained our strong leverage metrics with a consolidated leverage ratio of approximately one time. On 07/30/2025, we announced a quarterly distribution of $0.04 $7.01 $4 per unit with respect to the 2025. Since our IPO in 2014, the Partnership has made 44 consecutive quarterly distributions to unitholders and we have grown distributions 71% since the Partnership's original minimum quarterly distribution of $0.02 $75 per unit. Partnership's second quarter distribution will be paid on 08/27/2025 to unitholders of record on 08/12/2025. Speaker 300:06:42The partnership predictable fee based cash flow continues to prove beneficial in today's economic environment and is differentiated by the consistency of our earnings and cash flows. Looking back, since our IPO in July 2014, we have maintained a cumulative distribution coverage ratio of approximately 1.1 times and the partnership stability and cash flows, we are able to sustain our current distribution without the need to access the capital markets. For modeling purposes, the Petro one turnaround completed, we have no further plans in 2025 or 2026. Now I'd like to turn the call back over Speaker 200:07:25to Jean Marc to make some closing comments. Jean Marc? Thank you, Steve. The successful completion of the PetroR1 turnaround during the 2025 was a major accomplishment that positions the partnership for solid earnings and distributable cash flows well into the future. Turning to our outlook, global industrial and manufacturing activity has been soft thus far in 2025, which is broadly impacting the global chemical industry. Speaker 200:07:58Despite the challenging global macroeconomic backdrop, the Partnership's financial performance and distributions will continue to be supported by our ethylene sales agreement, which provides a predictable fee based cash flow structure from our take or pay contract with Westlake for 95% of OpCo's production. As had been the case since our IPO over ten years ago, this ethylene sales agreement has delivered stable and predictable cash flows through economic ups and downs as well as planned and unplanned turnarounds. Turning to our capital structure, we maintain a strong balance sheet with conservative financial and leverage metrics. As we continue to navigate market conditions, we will evaluate opportunities via our four levers of growth in the future, including increases of our ownership interest of OpCo, acquisition of other qualified income streams, organic growth opportunities such as expansions of our current ethylene facilities and negotiation of a higher fixed margin in our ethylene sales agreement with Westlake. We remain focused on our ability to continue to provide long term value and distribution to our unitholders. Speaker 200:09:30As always, we will continue to focus on safe operations along with being good stewards of the environment where we work and live as part of our broader sustainability efforts. Thank you very much for listening to our second quarter's earnings call. Now, I will turn the call back over to John. Speaker 100:09:50Thank you, Jean Marc. Before we begin taking questions, I would like to remind you that a replay of this teleconference will be available two hours after the call has ended. We will provide instructions to access the replay at the end of the call. Angelina, we will now take questions. Operator00:10:06Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star, one, one on your telephone and wait for your name to be announced. To withdraw your question, Our first question comes from the line of Matthew Blair of TPH. Your line is now open. Speaker 400:10:39Thank you, and good afternoon. Thanks for taking my questions. Think you mentioned on the Westlake C Corp call that some of the outage impact from Q2 might be persisting into Q3. Would any of that outage impact affect the OpCo assets, crackers specifically? And I guess in general, could you talk about how those assets have been running so far in the third quarter? Speaker 300:11:06Yes, Matthew, the impact that we were speaking to did not affect the ethylene unit here. And that unit, as I mentioned, was completed. And so there is no continuation of that turnaround in Q3. And so it was completed in 2Q. And that as therefore the plant is running very reliably and producing as we would expect it to after the turnaround. Speaker 400:11:37Sounds good. And then you also mentioned the four levers of possible growth. Are certain opportunities that look more appealing in the current environment, certain levers that look less appealing? And I guess in general, how likely do you think it would be that Westlake LP would see some sort of distribution growth either in the 2025 or into 2026? Speaker 300:12:08Yes. If you recall going back to the origination of the partnership, was designed to be a mechanism to continue to fund the C Corp at attractive yields or attractive structures as issuing equity in that market. Today, you think about Westlake, the C Corp Westlake Corporation, there really isn't an immediate need for capital. And so as we think about the markets that the partnership could attack, those markets, as you know, have contracted over the last number of years. And so given the combination of that contraction and the need, the lack of need immediately for Westlake Corporation to attract equity capital, I don't see a need in the current year to raise equity capital through one of these four levers. Speaker 400:13:00Sounds good. I'll leave it there. Thank you. Speaker 200:13:03Thank you. Operator00:13:17I am showing no further questions at this time. I would now like to turn it back to John Zeller. Speaker 100:13:23Thank you again for participating in today's call. We hope you will join us for our next conference call to discuss our third quarter twenty twenty five results. Operator00:13:33Thank you for participating in today's Westlake Chemical Partners second quarter twenty twenty five earnings conferenceRead morePowered by Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Westlake Chemical Partners Earnings Headlines3 Dividend Stocks With Over 8% Yield To Buy In AugustAugust 7 at 1:01 PM | 247wallst.comWestlake Chemical Partners LP (NYSE:WLKP) Q2 2025 Earnings Call TranscriptAugust 6 at 6:50 PM | insidermonkey.comNational 'Stock Market Reset' Coming September 30 (New WH Order)Crash Coming Sept 30? Analysts Warn of New Crisis A new problem on the U.S. power grid is putting millions of Americans at risk of blackouts and could lead to a crisis "many times worse than 2008" if not fixed.August 8 at 2:00 AM | Altimetry (Ad)WLKP Earnings Miss by 13%August 5 at 9:04 PM | fool.comWestlake Chemical Partners LP Common Units (WLKP) Q2 2025 Earnings Call TranscriptAugust 5 at 4:08 PM | seekingalpha.comWestlake Chemical Partners LP Common Units 2025 Q2 - Results - Earnings Call PresentationAugust 5 at 12:55 PM | seekingalpha.comSee More Westlake Chemical Partners Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Westlake Chemical Partners? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Westlake Chemical Partners and other key companies, straight to your email. Email Address About Westlake Chemical PartnersWestlake Chemical Partners (NYSE:WLKP) 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-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. Westlake Chemical Partners LP was founded in 1991 and is headquartered in Houston, Texas.View Westlake Chemical Partners ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Constellation Energy’s Earnings Beat Signals a New EraRealty Income Rallies Post-Earnings Miss—Here’s What Drove ItDon't Mix the Signal for Noise in Super Micro Computer's EarningsWhy Monolithic Power's Earnings and Guidance Ignited a RallyRivian Takes Earnings Hit—R2 Could Be the Stock's 2026 LifelinePalantir Stock Soars After Blowout Earnings ReportVertical Aerospace's New Deal and Earnings De-Risk Production Upcoming Earnings SEA (8/12/2025)Cisco Systems (8/13/2025)Alibaba Group (8/13/2025)Applied Materials (8/14/2025)NetEase (8/14/2025)Deere & Company (8/14/2025)NU (8/14/2025)Petroleo Brasileiro S.A.- Petrobras (8/14/2025)Palo Alto Networks (8/18/2025)Home Depot (8/19/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 5 speakers on the call. Operator00:00:00Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Second Quarter twenty twenty five Earnings Conference Call. During the presentation, all participants will be in a listen only mode. After the speakers' remarks, you will be invited to participate in the question and answer session. Operator00:00:18As a reminder, this conference is being recorded today, 08/05/2025. I would now like to turn the call over to today's host, John Zeller, Westlake Chemical Partners' Vice President and Treasurer. Sir, you may begin. Speaker 100:00:33Thank you. Good afternoon, everyone, and welcome to the Westlake Chemical Partners' Second Quarter twenty twenty five Conference Call. I am joined today by Albert Chao, our Executive Chairman Jean Marc Gilson, our President and CEO Steve Bender, our Executive Vice President and Chief Financial Officer and other members of our management team. During this call, we refer to ourselves as Westlake Partners or the partnership. References to Westlake refer to our parent company, Westlake Corporation, and references to OpCo refer to Westlake Chemical OpCo LP, a subsidiary of Westlake and the partnership, which owns certain olefins assets. Speaker 100:01:12Additionally, when we refer to distributable cash flow, we are referring to Westlake Chemical Partners MLP distributable cash flow. Definitions of these terms are available on the partnership's website. Today, management is going to discuss certain topics that will contain forward looking information that is based on management's beliefs, as well as assumptions made by and information currently available to management. These forward looking statements suggest predictions or expectations and thus are subject to risks or uncertainties. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in our regulatory filings, which are also available on our Investor Relations website. Speaker 100:01:55This morning, Westlake Partners issued a press release with details of our second quarter twenty twenty five financial and operating results. This document is available in the press release section of our webpage at wlkpartners.com. A replay of today's call will be available beginning two hours after the conclusion of this call. The replay can be accessed via the partnership website. Please note that information reported on this call speaks only as of today, 08/05/2025, and therefore you are advised that time sensitive information may no longer be accurate as of the time of any replay. Speaker 100:02:33I would finally advise you that this conference call is being broadcast live through an Internet webcast system that can be accessed on our webpage at wlkpartners.com. Now, I'd like to turn the call over to Jean Marc Gilson. Jean Marc? Speaker 200:02:48Thank you, John. Good afternoon, everyone, and thank you for joining us to discuss our second quarter twenty twenty five results. In this morning's press release, we reported Westlake Partners second quarter twenty twenty five net income of $15,000,000 or $0.41 per unit. Compared to the 2025, our second quarter sales and earnings benefited from fewer production days impacted by the planned turnaround at our PetroR1 ethylene unit in Lake Charles, Louisiana. The stability of Westlake Partners business model is consistently demonstrated through our fixed margin ethylene sales agreement, which minimizes market volatility and other production risk. Speaker 200:03:41The high degree of stability in cash flow when paired with the predictability of our business has enabled us to deliver the long history of reliable distribution and coverage. This quarter's distribution is the forty fourth consecutive quarterly distributions since our IPO in July 2014 without any reductions. I would like now to turn our call over to Steve to provide more detail on the financial and operating results for the quarter. Steve? Speaker 300:04:17Thank you, Jean Marc, and good afternoon, everyone. In this morning's press release, we reported Westlake Partners second quarter twenty twenty five net income of $15,000,000 or $0.41 per unit. Consolidated net income, including OpCo's earnings was $86,000,000 This amount includes a $14,000,000 benefit to OpCo from protection provided by the ethylene sales agreement to insulate it from certain production shortfalls, Speaker 100:04:46such Speaker 300:04:46as the extension of the Petro one turnaround beyond its originally scheduled completion date. Second quarter twenty twenty five net income for Westlake Partners of $15,000,000 was essentially in line with the second quarter twenty twenty four partnership net income. Distributable cash flow of $15,000,000 or $0.43 per unit for the 2025 decreased by $2,000,000 compared to the 2024 due to higher maintenance capital expenditures as a result of the Petro one planned turnaround. Turning our attention to the balance sheet and cash flows. At the end of the second quarter, we had consolidated cash balance and cash investments with Westlake through our investment management agreement totaling $81,000,000 Long term debt at the end of this quarter was $400,000,000 of which $377,000,000 was at the partnership and the remaining $23,000,000 was at OpCo. Speaker 300:05:49In the 2025, OpCo spent $24,000,000 on capital expenditures. We maintained our strong leverage metrics with a consolidated leverage ratio of approximately one time. On 07/30/2025, we announced a quarterly distribution of $0.04 $7.01 $4 per unit with respect to the 2025. Since our IPO in 2014, the Partnership has made 44 consecutive quarterly distributions to unitholders and we have grown distributions 71% since the Partnership's original minimum quarterly distribution of $0.02 $75 per unit. Partnership's second quarter distribution will be paid on 08/27/2025 to unitholders of record on 08/12/2025. Speaker 300:06:42The partnership predictable fee based cash flow continues to prove beneficial in today's economic environment and is differentiated by the consistency of our earnings and cash flows. Looking back, since our IPO in July 2014, we have maintained a cumulative distribution coverage ratio of approximately 1.1 times and the partnership stability and cash flows, we are able to sustain our current distribution without the need to access the capital markets. For modeling purposes, the Petro one turnaround completed, we have no further plans in 2025 or 2026. Now I'd like to turn the call back over Speaker 200:07:25to Jean Marc to make some closing comments. Jean Marc? Thank you, Steve. The successful completion of the PetroR1 turnaround during the 2025 was a major accomplishment that positions the partnership for solid earnings and distributable cash flows well into the future. Turning to our outlook, global industrial and manufacturing activity has been soft thus far in 2025, which is broadly impacting the global chemical industry. Speaker 200:07:58Despite the challenging global macroeconomic backdrop, the Partnership's financial performance and distributions will continue to be supported by our ethylene sales agreement, which provides a predictable fee based cash flow structure from our take or pay contract with Westlake for 95% of OpCo's production. As had been the case since our IPO over ten years ago, this ethylene sales agreement has delivered stable and predictable cash flows through economic ups and downs as well as planned and unplanned turnarounds. Turning to our capital structure, we maintain a strong balance sheet with conservative financial and leverage metrics. As we continue to navigate market conditions, we will evaluate opportunities via our four levers of growth in the future, including increases of our ownership interest of OpCo, acquisition of other qualified income streams, organic growth opportunities such as expansions of our current ethylene facilities and negotiation of a higher fixed margin in our ethylene sales agreement with Westlake. We remain focused on our ability to continue to provide long term value and distribution to our unitholders. Speaker 200:09:30As always, we will continue to focus on safe operations along with being good stewards of the environment where we work and live as part of our broader sustainability efforts. Thank you very much for listening to our second quarter's earnings call. Now, I will turn the call back over to John. Speaker 100:09:50Thank you, Jean Marc. Before we begin taking questions, I would like to remind you that a replay of this teleconference will be available two hours after the call has ended. We will provide instructions to access the replay at the end of the call. Angelina, we will now take questions. Operator00:10:06Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star, one, one on your telephone and wait for your name to be announced. To withdraw your question, Our first question comes from the line of Matthew Blair of TPH. Your line is now open. Speaker 400:10:39Thank you, and good afternoon. Thanks for taking my questions. Think you mentioned on the Westlake C Corp call that some of the outage impact from Q2 might be persisting into Q3. Would any of that outage impact affect the OpCo assets, crackers specifically? And I guess in general, could you talk about how those assets have been running so far in the third quarter? Speaker 300:11:06Yes, Matthew, the impact that we were speaking to did not affect the ethylene unit here. And that unit, as I mentioned, was completed. And so there is no continuation of that turnaround in Q3. And so it was completed in 2Q. And that as therefore the plant is running very reliably and producing as we would expect it to after the turnaround. Speaker 400:11:37Sounds good. And then you also mentioned the four levers of possible growth. Are certain opportunities that look more appealing in the current environment, certain levers that look less appealing? And I guess in general, how likely do you think it would be that Westlake LP would see some sort of distribution growth either in the 2025 or into 2026? Speaker 300:12:08Yes. If you recall going back to the origination of the partnership, was designed to be a mechanism to continue to fund the C Corp at attractive yields or attractive structures as issuing equity in that market. Today, you think about Westlake, the C Corp Westlake Corporation, there really isn't an immediate need for capital. And so as we think about the markets that the partnership could attack, those markets, as you know, have contracted over the last number of years. And so given the combination of that contraction and the need, the lack of need immediately for Westlake Corporation to attract equity capital, I don't see a need in the current year to raise equity capital through one of these four levers. Speaker 400:13:00Sounds good. I'll leave it there. Thank you. Speaker 200:13:03Thank you. Operator00:13:17I am showing no further questions at this time. I would now like to turn it back to John Zeller. Speaker 100:13:23Thank you again for participating in today's call. We hope you will join us for our next conference call to discuss our third quarter twenty twenty five results. Operator00:13:33Thank you for participating in today's Westlake Chemical Partners second quarter twenty twenty five earnings conferenceRead morePowered by