Westlake Chemical Partners LP Reports Fourth Quarter and Full-Year 2025 Results
Westlake Chemical Partners LP (NYSE: WLKP) (the “Partnership”) today announced its financial results for the fourth quarter and full year of 2025.
Fourth Quarter 2025 Highlights
The Partnership reported net income attributable to unitholders of $14.5 million, or $0.41 per limited partner unit, in the fourth quarter of 2025, nearly in line with $15.0 million in the same period of 2024. Cash flows from operating activities totaled $120.4 million, a decline of $12.1 million compared to $132.5 million in Q4 2024, driven by lower net income and less favorable working capital changes.
MLP distributable cash flow (DCF) for the fourth quarter was $18.8 million, resulting in a quarterly coverage ratio of 1.13x. This represented an increase of $3.8 million from Q4 2024, largely due to reduced maintenance capital expenditures following a shift in the timing of spending earlier in the year.
Compared to the third quarter of 2025, net income of $14.5 million was stable versus $14.7 million, while operating cash flows increased from $105.2 million to $120.4 million, driven by improved working capital. Similarly, Q4 MLP distributable cash flow increased by $3.9 million versus Q3, again due to lower maintenance capital expenditures.
Full-Year 2025 Performance
For the full year, the Partnership reported net income of $48.7 million, or $1.38 per unit, down $13.7 million from $62.4 million in 2024. The decline was primarily due to lower production and sales volumes resulting from the planned Petro 1 turnaround.
Operating cash flows for 2025 totaled $280.5 million, a decrease of $204.5 million compared to $485.0 million in 2024, mainly due to cash expenditures for the Petro 1 turnaround and lower net income. Full-year MLP distributable cash flow was $53.4 million, down from $66.9 million in 2024.
Quarterly Distribution
On January 27, 2026, the Partnership’s Board of Directors approved a fourth-quarter distribution of $0.4714 per unit, paid on February 23, 2026, to unitholders of record as of February 6, 2026. This marked the 46th consecutive quarterly distribution.
The trailing twelve-month coverage ratio for declared distributions improved to 0.80x in Q4 2025 from 0.75x at the end of Q3 2025.
CEO Commentary
Jean-Marc Gilson, President and Chief Executive Officer, said:
The Partnership ended 2025 with our highest quarterly coverage ratio since Q4 2022 due to strong production and sales volumes and the timing of capital expenditures. Looking ahead to 2026, we expect increased production and sales volumes with no planned turnarounds, which should improve our coverage ratio, as is typical after major turnarounds.
Operational Overview
OpCo’s ethylene sales agreement with Westlake Corporation provides stable and predictable cash flows. Under the agreement, 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.
The Partnership owns a 22.8% interest in Westlake Chemical OpCo LP, which operates three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, along with an ethylene pipeline.
Tax Information for Non-U.S. Investors
Distributions to non-U.S. investors are treated as income effectively connected with a U.S. trade or business, and are subject to federal income tax withholding at the highest applicable rate, in accordance with Treasury Regulation Section 1.1446-4(b).
Use of Non-GAAP Financial Measures
This release references non-GAAP financial measures such as MLP distributable cash flow, coverage ratio, and EBITDA.
- MLP distributable cash flow: Cash flow available after subtracting amounts attributable to Westlake Corporation’s noncontrolling interest in OpCo and incentive distribution rights holders.
- EBITDA: Net income before interest, taxes, depreciation, and amortization.
These measures are used to provide supplemental insight into ongoing operating performance, capital expenditure capability, and comparison with other publicly traded partnerships. Reconciliations of these measures to GAAP results are included in the financial schedules at the end of the release.
Source Link: https://www.westlake.com/
