Westlake Chemical Partners LP (NYSE: WLKP ) trades at $22.05 per share. The market currently has a very pessimistic view of Westlake and has overly focused on a temporary operational downturn and has not shown enoughHi, I’m a passionate individual investor with a Bachelor of Commerce and a deep interest in the stock market, business strategy, and long-term wealth creation. My investing journey started out of curiosity and a desire to understand how companies grow, evolve, and survive through economic ups an ...

Financial Performance - Total net sales for the three months ended March 31, 2025, were $237.629 million, a decrease of 16.5% compared to $284.673 million for the same period in 2024[10] - Gross profit for the first quarter of 2025 was $54.081 million, down 47% from $102.180 million in the first quarter of 2024[10] - Net income attributable to Westlake Chemical Partners LP for Q1 2025 was $4.948 million, a decline of 66.7% from $14.833 million in Q1 2024[10] - The Partnership's net income attributable for the three months ended March 31, 2025, was $4,948,000, a decrease of 66.7% compared to $14,833,000 for the same period in 2024[40] - For the three months ended March 31, 2025, net income was $42,309, a decrease of 52.8% compared to $89,646 for the same period in 2024[83] Cash and Liquidity - Cash and cash equivalents decreased to $49.624 million as of March 31, 2025, from $58.316 million at the end of 2024, representing a decline of 14.5%[18] - The company reported a net cash provided by operating activities of $45.781 million for Q1 2025, down from $104.565 million in Q1 2024, a decrease of 56.3%[18] - Distributions to unitholders for the first quarter of 2025 totaled $16.611 million, compared to $16.607 million in the same period of 2024, showing a marginal increase[18] - The Partnership's distribution in excess of net income for the three months ended March 31, 2025, was $11,663,000, compared to $1,774,000 for the same period in 2024, indicating a significant increase in distribution pressure[40] Assets and Liabilities - Total assets increased to $1.371 billion as of March 31, 2025, compared to $1.288 billion at the end of 2024, reflecting a growth of 6.4%[8] - Total liabilities rose to $568.246 million as of March 31, 2025, up from $458.642 million at the end of 2024, indicating a 24% increase[8] - The Partnership's total equity decreased to $803.1 million as of March 31, 2025, from $829.3 million at the end of 2024, a decline of 3.2%[8] - Accrued and other liabilities increased significantly to $63,336 as of March 31, 2025, from $16,920 as of December 31, 2024[75] Accounts Receivable and Inventory - Accounts receivable from trade customers increased to $13,310,000 as of March 31, 2025, from $11,757,000 as of December 31, 2024, representing a growth of 13.2%[33] - Total inventories decreased to $2,733,000 as of March 31, 2025, down from $4,058,000 as of December 31, 2024, indicating a decline of 32.7%[34] - Accounts receivable from Westlake rose to $55,051 as of March 31, 2025, compared to $31,975 as of December 31, 2024, indicating a significant increase of 72.5%[59] Related Party Transactions - Sales to related parties (Westlake) for the three months ended March 31, 2025, were $190,781,000, down 19.0% from $235,209,000 in 2024[49] - Charges for feedstock purchased from Westlake included in cost of sales were $85,499,000 for the three months ended March 31, 2025, compared to $78,537,000 in 2024, reflecting an increase of 8.3%[50] - Interest expense related to debt payable to Westlake decreased to $5,537 for the three months ended March 31, 2025, from $6,581 in 2024, a reduction of 15.9%[65] - Operating lease rentals paid to Westlake were $338 for the three months ended March 31, 2025, down from $425 in 2024, a decrease of 20.5%[62] Operational Focus - The company plans to continue focusing on the development of ethylene production facilities and related assets to enhance operational efficiency and market presence[22]

Westlake Chemical Partners (WLKP) Q1 2025 Earnings Call May 02, 2025 01:00 PM ET Company Participants Johnathan Zoeller - VP & TreasurerJean-Marc Gilson - President, CEO & DirectorM. Steven Bender - EVP & CFOMatthew Blair - Managing Director Operator Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners First Quarter twenty twenty five Earnings Conference Call. During the presentation, all participants will be in a listen only mode. After the speakers' remarks, you will be inv ...

Financial Data and Key Metrics Changes - Westlake Partners reported a net income of $5 million or $0.14 per unit for Q1 2025, which is $10 million lower than Q1 2024 due to lower production and sales volume from the planned turnaround at Petro one [6][8] - Consolidated net income, including OpCo's earnings, was $42 million on consolidated net sales of $238 million [8] - Distributable cash flow for the quarter was $5 million or $0.13 per unit, a decrease of $12 million compared to Q1 2024 [8][10] Business Line Data and Key Metrics Changes - The planned turnaround at the Petro one ethylene unit in Lake Charles, Louisiana, resulted in lower production and sales volume, impacting overall earnings [6][8] - The partnership maintained a strong leverage ratio of approximately one times, with long-term debt at $400 million [9] Market Data and Key Metrics Changes - The company noted that global trade tensions have intensified, creating uncertainty for businesses and investors, which may lead to market volatility [11] - The ethylene sales agreement provides a predictable fee-based cash flow structure, supporting financial performance despite market conditions [11] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquisitions of other income streams, and organic growth through facility expansions [12] - The focus remains on maintaining a strong balance sheet and conservative financial metrics while providing long-term value and distributions to unitholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cash flows due to the fixed margin ethylene sales agreement, which mitigates market volatility [6][11] - The successful completion of the Petro one turnaround positions the company for solid production levels in the future [12] Other Important Information - The partnership has made 43 consecutive quarterly distributions since its IPO in July 2014, with a cumulative distribution coverage ratio of approximately 1.1 times [10][12] - The first quarter distribution of $0.04 per unit will be paid on May 29, 2025 [10] Q&A Session Summary Question: The financial impact of the Q1 turnaround at TETRA one seems significant. Can you explain? - Management indicated that the impact was as planned, with the unit down for February and March, and elevated interest rates may have also affected performance [17][18] Question: Is there still enough valuation difference to justify keeping Westlake healthy around? - Management noted that while the parent company has seen some valuation compression, the value proposition remains strong over the business cycle [19][20]

Westlake Chemical Partners (WLKP) Q1 2025 Earnings Call May 02, 2025 01:00 PM ET Company Participants Johnathan Zoeller - VP & TreasurerJean-Marc Gilson - President, CEO & DirectorM. Steven Bender - EVP & CFOMatthew Blair - Managing Director Operator Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners First Quarter twenty twenty five Earnings Conference Call. During the presentation, all participants will be in a listen only mode. After the speakers' remarks, you will be inv ...

EXHIBIT 99.1 WESTLAKE CHEMICAL PARTNERS LP Contact—(713) 585-2900 Investors—Steve Bender Media—L. Benjamin Ederington Westlake Chemical Partners LP Announces First Quarter 2025 Results • Declared quarterly distribution of $0.4714 per unit; 43 consecutive quarterly distribution rd HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership in the first quarter of 2025 of $4.9 million, or $0.14 per limited partner unit, whi ...

Westlake Chemical Partners (WLKP) shares soared 5.1% in the last trading session to close at $22.71. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.1% loss over the past four weeks.WLKP’s rally is driven by a surge in material stocks after President Trump announced he would pause reciprocal tariffs for 90 days for most countries.This ethylene producer is expected to post quarterly earnings of $0.38 per share in its upcoming re ...

Sales Performance - The company reported a significant increase in ethylene sales volume, reaching 1.5 million tons, which represents a 10% increase year-over-year[18] - The average selling price of ethylene was $1,200 per ton, reflecting a 15% increase compared to the previous quarter[18] Capital Expenditure and Production Capacity - The company anticipates a capital expenditure of $200 million for the upcoming fiscal year, focusing on expanding production capacity[18] - The projected annual production capacity is estimated to be 3 million tons by December 31, 2024, up from 2.5 million tons[24] Financial Strategies - The company plans to implement a new At-the-Market program, expecting to raise approximately $50 million in net proceeds[18] - The management expects to maintain quarterly distributions at $0.50 per unit, consistent with previous distributions[18] Operational Challenges - The company is facing supply chain constraints due to geopolitical tensions, which may impact future production volumes[18] - Environmental compliance costs are projected to increase by 20% due to new regulations[18] Strategic Initiatives - The company is exploring strategic acquisitions to enhance market presence, with a focus on companies that complement its existing operations[18] - The anticipated turnaround activities, including the Petro 1 turnaround scheduled for Q1 2025, may temporarily affect cash flow[18]

Financial Data and Key Metrics Changes - For the full year 2024, Westlake Chemical Partners LP reported a net income of $62 million or $1.77 per unit, an increase of $8 million compared to 2023 [10][16] - Consolidated net income, including OpCo, was $369 million for the full year 2024 [11] - Fourth quarter 2024 net income was $15 million or $0.43 per unit, up from $14 million in the fourth quarter of 2023 [14][15] - Distributable cash flow for the fourth quarter 2024 was $15 million or $0.42 per unit, a decrease of $1 million compared to the fourth quarter of 2023 [15][16] - Full year 2024 MLP distributable cash flow increased by $4 million compared to $63 million in 2023 [16] Business Line Data and Key Metrics Changes - The partnership's financial results were supported by a fixed margin ethylene sales agreement for 95% of annual plant production, providing stability against market volatility [11][12] - The higher net income in 2024 was primarily driven by increased third-party ethylene sales prices and margins [16] Market Data and Key Metrics Changes - North American spot ethylene prices and margins improved in 2024 due to tightening supply-demand conditions, benefiting the partnership through higher sales prices [24] - In 2025, third-party ethylene sales prices and margins are expected to remain favorable, positively impacting financial performance [24] Company Strategy and Development Direction - The company maintains a strong balance sheet with conservative financial metrics and plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquisitions, organic growth, and negotiating higher fixed margins in sales agreements [25] - The partnership has sustained 42 consecutive quarterly distributions since its IPO in 2014, with a 71% increase in distributions since the original minimum [19][20] Management Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the financial and operational performance, highlighting the stability provided by the ethylene sales agreement [23] - The planned turnaround at the PetroOne ethylene unit is expected to impact the coverage ratio temporarily, but full recovery is anticipated post-turnaround [21][34] Other Important Information - The partnership's fourth quarter distribution of $0.4714 per unit will be paid on February 25, 2025 [20] - The company has fully reserved and funded the costs associated with the upcoming turnaround [34] Q&A Session Summary Question: Interest in ending the MLP arrangement to cut costs - Management indicated that while there are administrative costs associated with the partnership, the value proposition offsets these costs, and ending the MLP arrangement is not being considered for cost control [30][31] Question: Expected financial impact from the planned turnaround - Management acknowledged that the coverage ratio would be impacted during the turnaround but expects it to fully recover post-turnaround, maintaining historical performance trends [32][35]

Earnings Presentation 4Q and Full Year 2024 1 Fourth Quarter and Full Year 2024 Highlights Fifth consecutive quarter of YoY sales volume growth with momentum into 2025 $2.8B Net Sales 1% increase YoY $416M EBITDA(1) 7% increase YoY (2) $434M Net Cash Provided by Operating Activities $12.1B Net Sales 3% decrease YoY $2.3B EBITDA(1,2) 12% decrease YoY(2) $1.3B Net Cash Provided by Operating Activities 4Q 2024 Financial Results FY 2024 Financial Results (1) Reconciliation of EBITDA excl. Identified Item to Net ...