Westlake Chemical Partners (NYSE:WLKP) Announces Earnings Results

Westlake Chemical Partners (NYSE:WLKP) announced its quarterly earnings data on Tuesday. The basic materials company reported $0.40 EPS for the quarter, missing analysts’ consensus estimates of $0.41 by ($0.01), FiscalAI reports. The company had revenue of $297.10 million for the quarter, compared to analyst estimates of $537.00 million. Westlake Chemical Partners had a net margin of 4.69% and a return on equity of 7.15%.

Here are the key takeaways from Westlake Chemical Partners’ conference call:

• Stable earnings and cash flow: Second-quarter net income was $14 million, or $0.40 per unit, broadly in line with both the prior-year and first-quarter results. Distributable cash flow rose to $18 million, up $3 million year over year, supported by higher production and sales volumes and lower maintenance spending.
• Distribution remains well supported: The Partnership declared a $0.4714 per-unit quarterly distribution, marking its 48th consecutive quarterly payment and a 71% increase from its IPO-era minimum distribution. Trailing 12-month distribution coverage improved to 1.04 times.
• Strong balance sheet and financing position: Consolidated leverage remained approximately 1.0 times, with $93 million in cash and investments and $400 million of long-term debt. Revolver agreements were extended through 2031 with a 10-basis-point interest-rate reduction.
• Limited exposure to ethylene price volatility: Management said the fixed-margin Ethylene Sales Agreement provides a $0.10-per-pound margin on 95% of production, insulating the Partnership from heightened chemical-price volatility related to Middle East conflict.
• Management cited four potential future growth avenues—higher ownership of OpCo, acquisitions, facility expansions, and a higher fixed margin—but provided no specific transaction, timing, or financial targets.

Westlake Chemical Partners Stock Up 0.9%

Shares of WLKP opened at $21.50 on Wednesday. The firm has a market cap of $757.95 million, a P/E ratio of 13.11, a price-to-earnings-growth ratio of 0.60 and a beta of 0.53. The company has a debt-to-equity ratio of 0.50, a quick ratio of 3.57 and a current ratio of 3.65. Westlake Chemical Partners has a 52 week low of $17.75 and a 52 week high of $23.88. The firm’s 50-day simple moving average is $22.48 and its 200 day simple moving average is $22.23.

Westlake Chemical Partners Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Thursday, August 13th will be issued a dividend of $0.4714 per share. The ex-dividend date of this dividend is Thursday, August 13th. This represents a $1.89 annualized dividend and a dividend yield of 8.8%. Westlake Chemical Partners’s payout ratio is presently 115.24%.

Hedge Funds Weigh In On Westlake Chemical Partners

Several institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada lifted its holdings in Westlake Chemical Partners by 15.7% during the 4th quarter. Royal Bank of Canada now owns 7,749 shares of the basic materials company’s stock worth $147,000 after purchasing an additional 1,050 shares during the last quarter. Susquehanna Portfolio Strategies LLC bought a new position in Westlake Chemical Partners during the 4th quarter worth $224,000. Osaic Holdings Inc. increased its position in Westlake Chemical Partners by 45.8% during the 2nd quarter. Osaic Holdings Inc. now owns 10,153 shares of the basic materials company’s stock worth $224,000 after buying an additional 3,187 shares during the period. Mariner LLC lifted its holdings in shares of Westlake Chemical Partners by 4.7% during the fourth quarter. Mariner LLC now owns 12,088 shares of the basic materials company’s stock worth $230,000 after buying an additional 538 shares in the last quarter. Finally, Wells Fargo & Company MN lifted its holdings in shares of Westlake Chemical Partners by 35.7% during the fourth quarter. Wells Fargo & Company MN now owns 14,400 shares of the basic materials company’s stock worth $274,000 after buying an additional 3,792 shares in the last quarter. Institutional investors and hedge funds own 78.28% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings upgraded Westlake Chemical Partners from a “hold (c)” rating to a “buy (b-)” rating in a research note on Thursday, May 21st. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy”.

Westlake Chemical Partners Company Profile

Westlake Chemical Partners LP (NYSE: WLKP) is a publicly traded master limited partnership sponsored by Westlake Chemical Corporation. The partnership owns, operates and acquires a portfolio of ethylene and vinyl manufacturing assets throughout the United States and the United Kingdom. As a downstream producer of basic chemicals and intermediates, WLKP supplies key industrial feedstocks to customers in a variety of end markets.

WLKP’s operations are organized into two primary segments: olefins and vinyls.