Westlake Chemical Partners LP (NYSE: WLKP) (the “Partnership”) today reported net income attributable to the Partnership in the second quarter of 2025 of $14.6 million, or $0.41 per limited partner unit, which was in line with second quarter 2024 net income of $14.4 million. Cash flows from operating activities in the second quarter of 2025 were $9.1 million, a decrease of $112.8 million compared to second quarter 2024 cash flows from operating activities of $121.9 million. For the three months ended June 30, 2025, MLP distributable cash flow was $15.0 million, a decrease of $2.1 million compared to second quarter 2024 MLP distributable cash flow of $17.1 million. The decrease in MLP distributable cash flow and associated trailing twelve-month coverage ratio was primarily due to higher maintenance capital expenditures as a result of the Petro 1 turnaround.
Compared to the first quarter of 2025, second quarter 2025 net income attributable to the Partnership of $14.6 million increased by $9.7 million due to higher production and sales volume as a result of fewer production days impacted by the Petro 1 turnaround. Second quarter 2025 cash flows from operating activities of $9.1 million decreased by $36.7 million compared to first quarter 2025 cash flows from operating activities of $45.8 million due to the timing of cash payments related to the Petro 1 turnaround. Second quarter 2025 MLP distributable cash flow of $15.0 million increased by $10.3 million compared to first quarter 2025 MLP distributable cash flow of $4.7 million, due to higher production and sales volume as a result of fewer production days impacted by the Petro 1 turnaround.
Second quarter 2025 consolidated net income, including OpCo’s earnings, of $85.8 million increased from first quarter 2025 consolidated net income of $42.3 million. During the second quarter of 2025, OpCo benefitted from the stability of its sales agreement with Westlake Corporation that provides a fixed margin on OpCo’s annual ethylene production plan. As a result of this agreement, OpCo’s net income benefitted by $13.6 million to offset lower forecasted annual production volume resulting from the extension of the Petro 1 turnaround into April.
“The Partnership’s second quarter financial results improved significantly from the first quarter of 2025 due to higher production and sales volume at our Petro 1 facility as a result of fewer production days lost to the turnaround that began at the end of January and lasted until early April. While there were some lingering impacts to distributable cash flow in the second quarter from the extension of the turnaround into April, primarily in the form of elevated maintenance capital expenditures, this was not unexpected and should not re-occur at such a high level in future quarters,” said Jean-Marc Gilson, President and Chief Executive Officer. “Looking ahead, we expect distributable cash flow and the associated coverage ratio to solidly improve in the second half of 2025 back towards our strong historical levels now that the Petro 1 turnaround has been completed.”
On July 30, 2025, the Partnership announced that the Board of Directors of Westlake Chemical Partners GP LLC had approved a quarterly distribution for the second quarter of 2025 of $0.4714 per common unit to be payable on August 27, 2025 to unitholders of record as of August 12, 2025, representing the 44th consecutive quarterly distribution to our unitholders. MLP distributable cash flow provided trailing twelve-month coverage that was 0.79x the declared distributions for the second quarter of 2025, which was below the trailing twelve-month coverage ratio of 0.82x at the end of the first quarter of 2025 due to the planned Petro 1 turnaround. Since our IPO in July of 2014 our cumulative coverage ratio is approximately 1.05x.
OpCo’s Ethylene Sales Agreement with Westlake is designed to provide for stable and predictable cash flows. The agreement provides that 95% of OpCo’s ethylene production is sold to Westlake for a cash margin of $0.10 per pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures.
