Westlake Chemical Partners (NYSE:WLKP) Issues Earnings Results

Westlake Chemical Partners (NYSE:WLKP) issued its quarterly earnings data on Tuesday. The basic materials company reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.41 by ($0.01), FiscalAI reports. Westlake Chemical Partners had a return on equity of 7.18% and a net margin of 4.66%.The business had revenue of $297.10 million during the quarter, compared to the consensus estimate of $537.00 million.

Here are the key takeaways from Westlake Chemical Partners’ conference call:

• Stable earnings and cash flow: Second-quarter net income was $14 million, or $0.40 per unit, broadly in line with both the prior-year and first-quarter results. Distributable cash flow rose to $18 million, up $3 million year over year, supported by higher production and sales volumes and lower maintenance spending.
• Distribution remains well supported: The Partnership declared a $0.4714 per-unit quarterly distribution, marking its 48th consecutive quarterly payment and a 71% increase from its IPO-era minimum distribution. Trailing 12-month distribution coverage improved to 1.04 times.
• Strong balance sheet and financing position: Consolidated leverage remained approximately 1.0 times, with $93 million in cash and investments and $400 million of long-term debt. Revolver agreements were extended through 2031 with a 10-basis-point interest-rate reduction.
• Limited exposure to ethylene price volatility: Management said the fixed-margin Ethylene Sales Agreement provides a $0.10-per-pound margin on 95% of production, insulating the Partnership from heightened chemical-price volatility related to Middle East conflict.
• Management cited four potential future growth avenues—higher ownership of OpCo, acquisitions, facility expansions, and a higher fixed margin—but provided no specific transaction, timing, or financial targets.

Westlake Chemical Partners Stock Up 1.4%

WLKP stock traded up $0.30 during trading on Thursday, reaching $21.57. 5,211 shares of the stock were exchanged, compared to its average volume of 36,104. The firm’s 50 day moving average is $22.45 and its 200 day moving average is $22.24. The firm has a market cap of $760.52 million, a P/E ratio of 13.24, a price-to-earnings-growth ratio of 0.60 and a beta of 0.53. The company has a current ratio of 3.65, a quick ratio of 3.57 and a debt-to-equity ratio of 0.50. Westlake Chemical Partners has a twelve month low of $17.75 and a twelve month high of $23.88.

Westlake Chemical Partners Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Thursday, August 13th will be paid a dividend of $0.4714 per share. This represents a $1.89 dividend on an annualized basis and a yield of 8.7%. The ex-dividend date of this dividend is Thursday, August 13th. Westlake Chemical Partners’s dividend payout ratio is 115.95%.

Analysts Set New Price Targets

Separately, Weiss Ratings upgraded Westlake Chemical Partners from a “hold (c)” rating to a “buy (b-)” rating in a report on Thursday, May 21st. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy”.

Institutional Investors Weigh In On Westlake Chemical Partners

Hedge funds and other institutional investors have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Westlake Chemical Partners by 6.0% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 583,932 shares of the basic materials company’s stock valued at $12,899,000 after buying an additional 32,863 shares during the last quarter. Jane Street Group LLC bought a new stake in Westlake Chemical Partners during the 2nd quarter worth approximately $387,000. Virtu Financial LLC purchased a new stake in shares of Westlake Chemical Partners in the fourth quarter worth approximately $306,000. Jump Financial LLC lifted its holdings in shares of Westlake Chemical Partners by 146.5% in the fourth quarter. Jump Financial LLC now owns 24,900 shares of the basic materials company’s stock valued at $473,000 after purchasing an additional 14,800 shares in the last quarter. Finally, Susquehanna Portfolio Strategies LLC bought a new position in shares of Westlake Chemical Partners in the fourth quarter valued at approximately $224,000. Institutional investors own 78.28% of the company’s stock.

About Westlake Chemical Partners

Westlake Chemical Partners LP (NYSE: WLKP) is a publicly traded master limited partnership sponsored by Westlake Chemical Corporation. The partnership owns, operates and acquires a portfolio of ethylene and vinyl manufacturing assets throughout the United States and the United Kingdom. As a downstream producer of basic chemicals and intermediates, WLKP supplies key industrial feedstocks to customers in a variety of end markets.

WLKP’s operations are organized into two primary segments: olefins and vinyls.