Westlake Chemical Partners LP

Westlake Partners reported second-quarter 2026 net income of $14 million, or $0.40 per unit, and distributable cash flow of $18 million, or $0.50 per unit. Consolidated net income including OpCo was $82 million on consolidated net sales of $297 million. Net income was essentially in line with Q2 2025 and Q1 2026, while DCF increased by $3 million year over year due to higher production and sales volume and lower maintenance capital expenditures after last year’s Petro-1 planned turnaround. The trailing 12-month coverage ratio improved to 1.04x from 1.0x. For the balance sheet, the company ended the quarter with $93 million of consolidated cash and cash investments, $400 million of long-term debt, and approximately 1x consolidated leverage. The partnership announced a quarterly distribution of $0.4714 per unit, payable August 28, 2026. Management also said there are no planned turnarounds in 2026.

Jean-Marc Gilson emphasized the partnership’s stability, saying the fixed-margin ethylene sales agreement minimizes market volatility and production risk. He framed the quarter as another proof point for the business model, pointing to the 48th consecutive quarterly distribution since the IPO and the absence of any reductions. He also noted that despite Middle East-driven chemical price volatility, the partnership’s ethylene margins are largely insulated by the contract structure.

The CFO commentary focused on cash flow, leverage, and liquidity. Management cited $18 million of distributable cash flow, $93 million of consolidated cash and cash investments, $400 million of long-term debt, and a leverage ratio of approximately 1x. They also said both OpCo and the partnership extended revolvers for 4 years through 2031 and secured a 10-basis-point reduction in the interest rate. The quarter’s distribution was $0.4714 per unit, and management reiterated that the partnership can sustain its current distribution without accessing capital markets.

There were no analyst questions on the call, so no Q&A concerns were raised directly. The closest management addressed to investor concerns was macro volatility in chemical prices, especially amid conflict in the Middle East. Management responded that the fixed-margin agreement with Westlake keeps ethylene margins largely insulated from that volatility.