WLKP · Westlake Chemical Partners LP

Westlake Chemical Partners LP delivered a strong first quarter in 2026, with net income attributable to the Partnership tripling to $14.2 million compared to $4.9 million in the same period last year. This improvement was primarily driven by higher production and sales volumes as operations recovered from the prior year's Petro 1 turnaround. Revenue increased to $305.7 million from $237.6 million, while gross profit expanded significantly to $93.8 million. The Partnership maintained its distribution track record, declaring a quarterly distribution of $0.4714 per unit, representing its 47th consecutive quarterly distribution. MLP distributable cash flow rose to $17.9 million, resulting in a coverage ratio of 1.08x for the quarter. Management highlighted that geopolitical events, specifically the war with Iran and the closure of the Strait of Hormuz, accelerated global demand for North American chemicals, benefiting third-party ethylene sales prices. The trailing twelve-month coverage ratio improved to 1.00x, up from 0.82x at the end of the fourth quarter of 2025. Compared to the fourth quarter of 2025, net income decreased slightly by $0.3 million due to seasonally lower production and sales volume. A conference call to discuss the results was held on May 5, 2026.