olivLaw · US equity research
Westlake Chemical Partners LP WLKP
Industrial Organic Chemicals · SIC 2860 · Vertical: Industrial Organic Chemicals (SIC 2860)
Westlake Chemical Partners LP is a limited partnership holding a minority stake in a US ethylene producer, with nearly all its income coming from contracts with Westlake. It matters now because distributions depend on the long-term sales agreement, which was recently renewed through 2027, and second-quarter 2026 results show a recovery in operating cash flow.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Westlake Chemical Partners LP (WLKP) stock was 21.61 USD (−0.78% on the day), with market capitalisation 761.8 m USD, P/E 12.9, beta 0.27, 52-week range 17.87–23.72 USD. Latest reported quarter (Q3 2026): revenue of 314.5 m USD (+1.8% YoY), net income of 16.2 m USD (+10.7% YoY).
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 59.6
- strong (55–70)
- Bollinger (20, 2)
- 20.60 – 21.73
- in the upper half of the band · %B 0.89 · band width 5.3%
- SMA 50 / 200
- 21.38 / 22.00
- mixed trend
- MACD (12, 26, 9)
- 0.06 / -0.04
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.9% | −1.1% | +2.0 pp | — |
| 3 months | +1.6% | −0.5% | +2.1 pp | — |
| 6 months | −7.8% | +4.4% | −12.2 pp | — |
| Year to date | +13.7% | +12.3% | +1.4 pp | — |
| 1 year | +16.8% | +13.5% | +3.3 pp | −5.5% |
| 3 years | −1.8% | +76.4% | −78.2 pp | −33.8% |
| 5 years | −16.7% | +63.7% | −80.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 290.1 m | 237.6 m | 297.1 m | 308.9 m | 323.0 m | 305.7 m | 297.1 m | 314.5 m |
| Cost of revenue | 191.5 m | 183.5 m | 199.6 m | 209.5 m | 226.2 m | 211.9 m | 202.3 m | 210.6 m |
| Gross profit | 98.6 m | 54.1 m | 97.5 m | 99.4 m | 96.8 m | 93.8 m | 94.8 m | 103.9 m |
| SG&A | 6.6 m | 7.5 m | 6.3 m | 7.4 m | 7.1 m | 7.2 m | 7.5 m | 8.3 m |
| Operating income | 92.0 m | 46.6 m | 91.2 m | 92.0 m | 89.8 m | 86.6 m | 87.3 m | 95.6 m |
| Depreciation & amortisation | 27.5 m | 27.1 m | 32.5 m ≈ | 33.9 m ≈ | 34.6 m | 34.3 m | 35.0 m ≈ | 32.2 m ≈ |
| Interest expense | 5.8 m | 5.5 m | 5.9 m | 5.9 m | 5.5 m | 5.1 m | 5.1 m | 5.1 m |
| Pre-tax income | 87.6 m | 42.4 m | 86.0 m | 86.3 m | 84.5 m | 81.8 m | 82.5 m | 91.0 m |
| Income tax | 202.0 k | 107.0 k | 205.0 k | 42.0 k | 193.0 k | 177.0 k | 178.0 k | 158.0 k |
| Net income | 15.0 m | 4.9 m | 14.6 m | 14.7 m | 14.5 m | 14.2 m | 14.2 m | 16.2 m |
| Operating cash flow | 132.5 m | 45.8 m | 9.1 m ≈ | 105.2 m ≈ | 120.4 m | 110.2 m | 129.8 m ≈ | 122.2 m ≈ |
| Capex | 13.5 m | 16.0 m | 24.4 m ≈ | 29.7 m ≈ | 8.8 m | 5.6 m | 12.5 m ≈ | 11.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.1 bn | 966.7 m | 1.2 bn | 1.6 bn | 1.2 bn | 1.1 bn | 1.2 bn |
| Revenue YoY | +9.6% | −15.1% | −11.5% | +25.7% | +31.1% | −25.3% | −4.6% | +2.7% |
| Net income | 49.3 m | 61.0 m | 66.2 m | 82.5 m | 64.2 m | 54.3 m | 62.4 m | 48.7 m |
| Net income YoY | +1.4% | +23.6% | +8.5% | +24.8% | −22.3% | −15.4% | +14.9% | −21.9% |
| Diluted EPS | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | 3.8% | 5.6% | 6.8% | 6.8% | 4.0% | 4.6% | 5.5% | 4.2% |
| Free cash flow | 396.3 m | 407.1 m | 336.4 m | 327.3 m | 409.6 m | 405.2 m | 436.0 m | 201.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 44.3 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- unavailable USD
- Total assets
- 1.3 bn USD
- Debt / equity
- unavailable
- Current ratio
- 2.80x
- ROE
- unavailable
- ROA
- 3.8%
- FCF margin
- 17.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 966.7 m | 1.2 bn | 1.6 bn | 1.2 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 04 Mar 2026verified |
| Cost of revenue | 587.8 m | 773.2 m | 1.2 bn | 803.3 m | 717.0 m | 818.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Gross profit | 378.9 m | 441.7 m | 377.4 m | 387.5 m | 418.9 m | 347.8 m | SEC (XBRL)· 04 Mar 2026verified |
| SG&A | 25.9 m | 31.0 m | 29.7 m | 29.8 m | 28.5 m | 28.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Operating income | 353.0 m | 410.7 m | 347.7 m | 357.7 m | 390.4 m | 319.6 m | SEC (XBRL)· 04 Mar 2026verified |
| Depreciation & amortisation | 103.2 m | 108.8 m | 121.1 m | 110.2 m | 111.9 m | 128.0 m | SEC (XBRL)· 04 Mar 2026verified |
| EBITDA | 456.1 m ≈ | 519.5 m ≈ | 468.8 m ≈ | 467.9 m ≈ | 502.3 m ≈ | 447.6 m ≈ | SEC (XBRL)· 04 Mar 2026derived |
| Interest expense | — | — | 13.4 m | 26.5 m | 25.7 m | 22.9 m | SEC (XBRL)· 04 Mar 2026verified |
| Pre-tax income | 341.7 m | 401.9 m | 335.8 m | 335.4 m | 370.0 m | 299.1 m | SEC (XBRL)· 04 Mar 2026verified |
| Income tax | 564.0 k | 549.0 k | 1.0 m | 813.0 k | 835.0 k | 547.0 k | SEC (XBRL)· 04 Mar 2026verified |
| Net income | 66.2 m | 82.5 m | 64.2 m | 54.3 m | 62.4 m | 48.7 m | SEC (XBRL)· 04 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 17.2 m | 17.1 m | 64.8 m | 58.6 m | 58.3 m | 44.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Receivables | 11.0 m | 5.8 m | 20.0 m | — | — | — | SEC (XBRL)· 04 May 2023verified |
| Inventories | 3.5 m | 8.9 m | 4.7 m | 4.4 m | 4.1 m | 2.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Current assets | 263.3 m | 281.2 m | 245.8 m | 226.2 m | 240.9 m | 143.5 m | SEC (XBRL)· 04 Mar 2026verified |
| Property, plant & equipment, net | 1.1 bn | 1.0 bn | 990.2 m | 943.8 m | 903.6 m | 886.0 m | SEC (XBRL)· 04 Mar 2026verified |
| Goodwill | 5.8 m | 5.8 m | 5.8 m | 5.8 m | 5.8 m | 5.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Total assets | 1.4 bn | 1.5 bn | 1.4 bn | 1.3 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 04 Mar 2026verified |
| Accounts payable | 13.1 m | 35.1 m | 15.3 m | — | — | — | SEC (XBRL)· 01 Mar 2023verified |
| Current liabilities | 39.8 m | 106.8 m | 66.9 m | 56.3 m | 55.4 m | 51.3 m | SEC (XBRL)· 04 Mar 2026verified |
| Total liabilities | 441.4 m | 508.0 m | 468.3 m | 460.6 m | 458.6 m | 454.2 m | SEC (XBRL)· 04 Mar 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 373.4 m | 408.4 m | 463.7 m | 452.0 m | 485.0 m | 280.5 m | SEC (XBRL)· 04 Mar 2026verified |
| Capex | 37.0 m | 81.2 m | 54.1 m | 46.8 m | 49.0 m | 78.8 m | SEC (XBRL)· 04 Mar 2026verified |
| Free cash flow | 336.4 m ≈ | 327.3 m ≈ | 409.6 m ≈ | 405.2 m ≈ | 436.0 m ≈ | 201.7 m ≈ | SEC (XBRL)· 04 Mar 2026derived |
| Investing cash flow | 2.0 m | -64.3 m | -12.0 m | -75.9 m | -89.0 m | 31.2 m | SEC (XBRL)· 04 Mar 2026verified |
| Financing cash flow | -378.2 m | -344.2 m | -404.0 m | -382.2 m | -396.3 m | -325.7 m | SEC (XBRL)· 04 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 50.0% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 761.8 m USD
Key indicators
Coverage and freshness
Score by group
50% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 11.62 – 25.45 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E11.62 – 25.45 (Mid 17.62)7 companies used · median multiple 10.5x · quartiles 6.9x – 15.2xALTO, GPRE, LNZA, LYB, NEU, REX, SXT
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 50.0% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 4.8% | 68 (vs peers) | 13% |
| FCF conversion · Quality | 750.5% | 100 (on a fixed band) | 13% |
| Revenue CAGR 3Y · Growth | -9.9% | 0 (on a fixed band) | 17% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 17.3x | 100 (on a fixed band) | 13% |
| Current ratio · Balance sheet | 3.5x | 100 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 12.9x | 56 (vs peers) | 21% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 58.3% | 100 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality84/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation75/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Westlake Chemical Partners LP (WLKP). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.2 bn USD in 2025; YoY growth 2.7%; net margin 4.8%.
The estimated value range is 11.62–25.45 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 17.62 USD, the price of 21.61 USD leaves a potential of -18.4% (value / price − 1) and a margin of safety of -22.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 50.0% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 750.5%
- Interest coverage: 17.3x
- Current ratio: 3.5x
- FCF yield: 58.3%
What contradicts it
- Revenue CAGR 3Y: -9.9%
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Industrial Organic Chemicals (SIC 2860) · same industry (4-digit SIC) · compared with 20 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| IFFInternational Flavors & Fragrances Inc | 22.0 bn | 122.1 | 1.3% | 1.6% | −5.2% | +26% / +16% |
| LYBLyondellbasell Industries N.V. | 20.4 bn | 15.6 | 11.9% | 4.1% | −9.7% | +29% / −34% |
| WLKWestlake Corporation | 8.7 bn | — | -4.9% | -3.9% | −8.0% | +2% / −47% |
| NEUNewmarket Corporation | 6.7 bn | 14.7 | 25.3% | 16.5% | −2.2% | −5% / +37% |
| SXTSensient Technologies Corp | 5.4 bn | 31.7 | 13.7% | 9.7% | +3.5% | +29% / +117% |
| MEOHMethanex Corporation | 5.0 bn | 70.1 | 6.4% | 4.0% | −3.5% | +83% / +53% |
| REXRex American Resources Corporation | 1.3 bn | 10.5 | 22.5% | 20.9% | +1.2% | +20% / +62% |
| GPREGreen Plains Inc. | 957.5 m | 8.6 | 15.4% | 6.8% | −14.9% | +32% / −45% |
| WLKPWestlake Chemical Partners LP | 761.8 m | 12.9 | — | 4.8% | +2.7% | +17% / −2% |
| GEVOGevo, Inc. | 316.5 m | — | -57.0% | -119.9% | +849.3% | −40% / +13% |
| ALTOAlto Ingredients, Inc. | 271.5 m | 5.3 | 22.2% | 5.5% | −4.9% | +37% / +43% |
| FFFuturefuel Corp. | 246.5 m | — | -18.3% | -19.9% | −60.7% | +70% / −5% |
| CDXSCodexis, Inc. | 118.3 m | — | -69.4% | -39.6% | +18.6% | −38% / −54% |
| LODEComstock Inc. | 113.3 m | — | -38.2% | -3,680.5% | −48.5% | −58% / −68% |
| AMTXAemetis, Inc | 90.2 m | — | — | -27.4% | −26.2% | −28% / −72% |
| TANHTantech Holdings Ltd | 90.1 m | — | -25.7% | -80.9% | −10.7% | −76% / −100% |
| LNZALanzaTech Global, Inc. | 69.2 m | 0.4 | 146.4% | 295.7% | +12.6% | −63% / −99% |
| SAFXXcf Global, Inc. | 41.0 m | — | -246.1% | — | unavailable | −87% / unavailable |
| TOMZTomi Environmental Solutions, Inc. | 18.2 m | — | -168.8% | -49.8% | −27.2% | −6% / −26% |
| CNEYCn Energy Group. Inc. | 2.5 m | — | -11.2% | -31.3% | −30.2% | −65% / −99% |
| BAKBraskem SA | — | — | — | -14.6% | +9.7% | −61% / −86% |
1- and 3-year price returns: for WLKP from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 11.55 Total return -47% · Per year -47% | 20.53 Total return -5% · Per year -5% | 31.06 Total return 44% · Per year 44% |
| 3 years | 9.17 Total return -58% · Per year -25% | 18.53 Total return -14% · Per year -5% | 31.06 Total return 44% · Per year 13% |
| 5 years | 7.28 Total return -66% · Per year -20% | 16.72 Total return -23% · Per year -5% | 31.06 Total return 44% · Per year 8% |
- Exit P/E± 4.63
- Net margin± 3.24
- Annual revenue growth± 2.93
- Annual dilution± 0.27
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
In brief
Westlake Chemical Partners LP is a limited partnership holding a minority stake in a US ethylene producer, with nearly all its income coming from contracts with Westlake. It matters now because distributions depend on the long-term sales agreement, which was recently renewed through 2027, and second-quarter 2026 results show a recovery in operating cash flow.
SWOT
Strengths
- Revenue comes from a long-term, cost-plus style contract that covers most of the plants' output.
- Distributions have been paid consistently for many years, with a long record of consecutive quarterly payouts.
- Plants sit on long-term leased land in Louisiana and Kentucky with access to ethane within the same industrial area.
Weaknesses
- The partnership depends almost entirely on one counterparty, Westlake, for both revenue and feedstock.
- It has no employees and cannot directly influence operating decisions, which are controlled by the general partner.
- The contractual margin does not cover expansion capital costs, which limits organic growth.
Opportunities
- Renegotiating the fixed margin in the Westlake contract could improve revenue if market conditions allow.
- Acquisitions of income-generating assets or a higher stake in OpCo could widen the distribution base.
- Stronger third-party prices could increase the share of revenue not tied to the contract.
Threats
- If Westlake fails to meet its purchase obligations, cash flow to the partnership could fall sharply.
- New capacity in the region could pressure prices in the open ethylene market.
- Changes in environmental rules or compliance costs could raise operating expenses.
Risks
- Dependence on Westlakehigh
Almost all cash flow depends on payments from Westlake under the ethylene sales agreement. If Westlake does not meet its obligations, distributions could be reduced or suspended.
- Contract renewalhigh
The current agreements run through December 2027. If they are not renewed or replaced on similar terms, long-term revenue could be affected.
- Operational disruptionsmedium
Plant incidents, maintenance shutdowns or force majeure events could reduce volumes and revenue, and Westlake has no obligation to buy during shutdowns.
- Interest rates and debtmedium
Variable-rate debt exposes the partnership to rising financing costs, which could reduce cash available for distributions.
- Partnership structuremedium
Unitholders have limited voting rights, and the general partner can change distribution policy without their consent.
Investment thesis
What would need to be true (bull case)
- The contract with Westlake provides a fixed margin and relatively predictable cash flow, which could support quarterly distributions if operations remain stable.
- Second-quarter 2026 results show operating cash flow recovering from the prior year, and distribution coverage on a trailing twelve-month basis has exceeded 1.00.
- Extending the revolving credit facilities to 2031 lowers near-term refinancing risk and adds financial flexibility.
What would break the thesis
- Most revenue depends on one customer, and financial difficulty at Westlake could directly affect distributions.
- Distribution coverage sits close to the one-times level, leaving little room for cash flow declines.
- Organic growth is limited because the contractual margin does not fund expansion, and new regional capacity could reduce prices.
What to watch
- Trailing twelve-month distribution coverage and MLP distributable cash flow trendQ3 2026
- Progress of negotiations on renewing the contracts beyond December 20272027
- Third-party ethylene prices and the impact of the Middle East conflict on demandQ3 2026
- Timing of future scheduled turnarounds and related maintenance spendingnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
The business
Westlake Chemical Partners LP is a Delaware limited partnership formed by Westlake in 2014 to operate, acquire and develop ethylene production facilities. Its sole revenue-generating asset is a 22.8% limited partner interest in Westlake Chemical OpCo LP, which owns three ethylene plants with an aggregate annual capacity of approximately 1 billion pounds. The partnership also owns the general partner of OpCo and so controls its operations and cash distribution policy.
Most of OpCo's revenue comes from the Ethylene Sales Agreement with Westlake, under which Westlake buys 95% of planned ethylene output at a fixed margin of 0.10 USD per pound 1. Co-products such as propylene and crude butadiene are sold to third parties, and the feedstock supply agreement is also with Westlake. Both agreements were renewed on October 28, 2025 through December 31, 2027 1.
Segments
Third-party sales
Ethylene and co-product sales to third parties, on a spot or contract basis, are a minor part of revenue but rose in the first half of 2026 compared with the prior year, as third-party ethylene prices were higher 3.
Market context
Ethylene is the world's most widely used petrochemical by volume and feeds polyethylene and PVC used in packaging, construction and transportation 1. The North American market has recently seen capacity additions, which could pressure prices for uncontracted volumes. Ethane costs, linked to natural gas liquids, influence the margin on third-party sales.
In the second quarter of 2026, higher third-party ethylene prices supported results, while the conflict in the Middle East is cited as a factor that could affect global demand for the partnership's products 3.
Trends
- Higher third-party pricestailwind
Better prices for ethylene sold to third parties contributed to second-quarter 2026 results and could support margins on volumes not covered by the contract.
- North American capacity additionsheadwind
New ethylene capacity completed in the region could lower spot prices, which could limit revenue from third-party sales.
- Scheduled turnaround cyclemixed
The Petro 1 turnaround in 2025 lowered maintenance spending in 2026, and spreading future turnarounds could smooth cash flow if no delays occur.
- Geopolitics and energy costsmixed
The Middle East conflict and crude oil price moves could change demand and ethane costs, with positive or negative effects on margins.
Competitive position
Structurally the partnership does not compete directly for most of its output, since the bulk is contracted to Westlake. For uncontracted volumes, OpCo competes with other ethylene producers in the US Gulf region and with derivative producers using other feedstock bases.
The reference documents note that North American capacity expansions and ethylene or ethane exports could pressure prices, and that naphtha-based derivatives compete with those based on natural gas liquids 1.
- Westlake CorporationWLK
Parent company that controls the general partner, holds 77.2% of OpCo and consumes most of the ethylene produced.
- US ethane-based ethylene producers
Petrochemical operators that sell ethylene on the open market and compete for volumes not covered by contract.
- Naphtha-based ethylene producers
Producers using petroleum feedstock that can become competitors when ethane prices are high.
- Asian and Middle Eastern ethylene producers
Foreign capacity that can influence global ethylene prices and US export flows.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report31 Aug 2026Departure or appointment of officers
- Quarterly report05 Aug 2026
- Current report04 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report05 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report20 Apr 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Annual report04 Mar 2026
- Current report24 Feb 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Westlake Chemical Partners LP · 04 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Westlake Chemical Partners LP · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Westlake Chemical Partners LP · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.