Westlake Partners Extends Distribution Coverage to 1.09 Times

The Tip Desk · November 11, 2026 · 2 min read

MLP distributable cash flow reached $18.0 million in the third quarter as trailing-twelve-month coverage of the $0.4714 unit distribution rose to 1.09 times.

Westlake Chemical Partners LP (WLKP), the Houston-based limited partnership that owns a 22.8% interest in Westlake Chemical OpCo LP, reported net income attributable to the Partnership of $16.2 million, or $0.46 a unit, for the three months ended September 30, 2026, up from $14.2 million, or $0.40 a unit, in the second quarter.

The company attributed the $2.0 million sequential increase to higher production and sales volume. President and Chief Executive Officer Jean-Marc Gilson said net income, EBITDA and MLP distributable cash flow all increased from the second quarter.

MLP distributable cash flow, a non-GAAP measure that excludes working-capital changes, was $18.0 million, a $0.4 million rise from $17.6 million in the second quarter. The Partnership said the increase was due to higher production and sales volume. Trailing twelve-month coverage of declared distributions improved to 1.09 times from 1.04 times at the end of the second quarter.

Cash flows from operating activities were $122.2 million, down $7.6 million from $129.8 million in the second quarter. The Partnership attributed the decline to less favorable working-capital changes.

Total net sales were $314.5 million. Net sales to Westlake Corporation were $261.9 million. Third-party net co-products, ethylene and other sales were $52.5 million, compared with $32.4 million a year earlier. Gross profit was $103.9 million and income from operations was $95.6 million. EBITDA was $128.3 million.

Maintenance capital expenditures were $15.1 million in the third quarter. The Partnership cited lower maintenance capital expenditures and higher sales volume as drivers of the year-over-year rise in MLP distributable cash flow.

On November 2, 2026, the board of Westlake Chemical Partners GP LLC approved a quarterly distribution of $0.4714 a common unit for the third quarter, payable December 1, 2026, to unitholders of record as of November 13, 2026. That was the 49th consecutive quarterly distribution and matched the rate declared in the second quarter.

Gilson said the Partnership expects earnings and cash flows to continue to benefit from the stability provided by the ethylene sales agreement with Westlake. OpCo’s agreement is designed to provide stable and predictable cash flows: 95% of OpCo’s ethylene production is sold to Westlake for a cash margin of $0.10 a pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures.

OpCo’s assets consist of three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, and an ethylene pipeline. Cash and cash equivalents were $47.6 million at September 30, 2026. Long-term debt payable to Westlake was $399.7 million.