third quarter of 2026
Filed Nov 4, 2026Westlake Chemical Partners LP Announces Third Quarter 2026 Results
Third-quarter net income attributable to Westlake Partners, EBITDA and MLP distributable cash flow increased both year over year and sequentially, while the Partnership declared its 49th consecutive quarterly distribution and reported trailing twelve-month coverage of 1.09x.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net sales, three months ended September 30GAAP | $314.5M | – | – |
| Net sales—Westlake Corporation, three months ended September 30GAAP | $261.9M | – | – |
| Net co-products, ethylene and other sales—third parties, three months ended September 30GAAP | 52,524 | – | – |
| Cost of sales, three months ended September 30GAAP | 210,563 | – | – |
| Gross profit, three months ended September 30GAAP | 103,896 | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | 8,336 | – | – |
| Income from operations, three months ended September 30GAAP | 95,560 | – | – |
| Interest expense—Westlake, three months ended September 30GAAP | (5,110) | – | – |
| Other income, net, three months ended September 30GAAP | 565 | – | – |
| Income before income taxes, three months ended September 30GAAP | 91,015 | – | – |
| Provision for income taxes, three months ended September 30GAAP | 158 | – | – |
| Net income, three months ended September 30GAAP | 90,857 | – | – |
| Net income attributable to noncontrolling interest in OpCo, three months ended September 30GAAP | 74,638 | – | – |
| Net income attributable to Westlake Partners, three months ended September 30GAAP | $16.22M | increased by $2.0 million | – |
| Net income per limited partner unit attributable to Westlake Partners, common units, basic and diluted, three months ended September 30GAAP | $ 0.46 | – | – |
| Distributions declared per unit, three months ended September 30other | $ 0.4714 | – | – |
| MLP distributable cash flow, three months ended September 30non-GAAP | $17.98M | increased by $0.4 million | increased by $3.1 million |
| Total distributions declared, three months ended September 30other | $16.62M | – | – |
| EBITDA, three months ended September 30non-GAAP | $128.3M | – | – |
| Cash flows from operating activities, three months ended September 30GAAP | $122.2M | decreased by $7.6 million | an increase of $17.0 million |
| Total net sales, nine months ended September 30GAAP | 917,234 | – | – |
| Net sales—Westlake Corporation, nine months ended September 30GAAP | $763.1M | – | – |
| Net co-products, ethylene and other sales—third parties, nine months ended September 30GAAP | 154,178 | – | – |
| Cost of sales, nine months ended September 30GAAP | 624,774 | – | – |
| Gross profit, nine months ended September 30GAAP | 292,460 | – | – |
| Selling, general and administrative expenses, nine months ended September 30GAAP | 23,020 | – | – |
| Income from operations, nine months ended September 30GAAP | 269,440 | – | – |
| Net income, nine months ended September 30GAAP | 254,874 | – | – |
| Net income attributable to Westlake Partners, nine months ended September 30GAAP | $44.63M | – | – |
| Net income per limited partner unit attributable to Westlake Partners, common units, basic and diluted, nine months ended September 30GAAP | $ 1.27 | – | – |
| MLP distributable cash flow, nine months ended September 30non-GAAP | $53.5M | – | – |
| EBITDA, nine months ended September 30non-GAAP | $372.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Net sales—Westlake Corporation, three months ended September 30, 2026No segment-specific driver was provided. | $261.9M | – | – |
| Net co-products, ethylene and other sales—third parties, three months ended September 30, 2026No segment-specific driver was provided. | 52.52M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Quarterly distribution for the third quarter of 2026 of $0.4714 per common unit, payable on December 1, 2026 to unitholders of record as of November 13, 2026.
- The distribution represents the 49th consecutive quarterly distribution to unitholders.
- Limited partner units—publicly and privately held distributions declared were $ 9,961 for the three months ended September 30, 2026.
- Limited partner units—Westlake distributions declared were 6,657 for the three months ended September 30, 2026.
- Total distributions declared were $ 16,618 for the three months ended September 30, 2026.
- Trailing twelve-month coverage ratio was 1.09x, compared with 1.04x at the end of the second quarter.
- Cumulative coverage ratio since the July 2014 IPO is approximately 1.05x.
What drove it
- Third-quarter net income attributable to the Partnership increased from the second quarter due to higher production and sales volume.
- Third-quarter MLP distributable cash flow increased from the prior-year quarter primarily due to lower maintenance capital expenditures and higher sales volume.
- Third-quarter operating cash flow increased from the prior-year quarter primarily due to more favorable changes in working capital.
- The Ethylene Sales Agreement provides that 95% of OpCo's ethylene production is sold to Westlake for a cash margin of $0.10 per pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures.
Concerns
- Third-quarter cash flows from operating activities decreased sequentially due to less favorable working capital changes.
- Net sales—Westlake Corporation were $ 261,935 in the third quarter of 2026, compared with $ 276,539 in the third quarter of 2025.
- The Partnership identifies risks relating to operating disruptions, production volume, ethylene pricing, feedstock and energy costs, customer delivery, supply and demand, and political tension and conflict in the Middle East and elsewhere.
What to watch
- Production and sales volume, which management cited as the driver of sequential increases in net income attributable to the Partnership and MLP distributable cash flow.
- Working-capital changes, which drove the sequential decline in operating cash flow.
- Maintenance capital expenditures and turnaround reserves, which affect MLP distributable cash flow.
- The stability and cash-flow benefits of the Ethylene Sales Agreement with Westlake.
- Trailing twelve-month distribution coverage following the increase to 1.09x.
Balance sheet and cash flow
- Cash and cash equivalents were $ 47,649 at September 30, 2026, compared with $ 44,269 at December 31, 2025.
- Receivable under the Investment Management Agreement—Westlake was 65,715 at September 30, 2026, compared with 23,378 at December 31, 2025.
- Total assets were $ 1,225,204 at September 30, 2026, compared with $ 1,256,533 at December 31, 2025.
- Long-term debt payable to Westlake was 399,674 at September 30, 2026 and 399,674 at December 31, 2025.
- Total liabilities were 454,919 at September 30, 2026, compared with 454,181 at December 31, 2025.
- Total equity was 770,285 at September 30, 2026, compared with 802,352 at December 31, 2025.
- Net cash provided by operating activities was 362,205 for the nine months ended September 30, 2026, compared with 160,090 for the nine months ended September 30, 2025.
- Additions to property, plant and equipment were (29,724) for the nine months ended September 30, 2026, compared with (69,988) for the nine months ended September 30, 2025.
- Investments with Westlake under the Investment Management Agreement were (42,000) for the nine months ended September 30, 2026.
- Net cash used for financing activities was (287,101) for the nine months ended September 30, 2026, compared with (230,482) for the nine months ended September 30, 2025.
- Cash and cash equivalents at end of period were $ 47,649 for the nine months ended September 30, 2026, compared with $ 37,936 for the nine months ended September 30, 2025.
Analysis
Westlake Chemical Partners reported improved third-quarter profitability and distributable cash flow. Net income attributable to Westlake Partners was $ 16,219, compared with $ 14,653 in the prior-year quarter, while EBITDA was $ 128,329 versus $ 126,075. MLP distributable cash flow was $ 17,978, compared with $ 14,886. Management attributed the year-over-year increase in MLP distributable cash flow primarily to lower maintenance capital expenditures and higher sales volume.
The sequential trend was also positive in earnings measures. The Partnership said net income attributable to the Partnership increased by $2.0 million from the second quarter due to higher production and sales volume, and MLP distributable cash flow increased by $0.4 million for the same reason. EBITDA was $ 128,329 in the third quarter, compared with $ 122,687 in the second quarter. Operating cash flow moved in the other direction sequentially, declining by $7.6 million to $122.2 million because of less favorable working-capital changes.
Revenue mix showed lower sales to Westlake alongside higher third-party sales. Net sales—Westlake Corporation were $ 261,935 in the third quarter, compared with $ 276,539 a year earlier, while net co-products, ethylene and other sales—third parties were 52,524 compared with 32,359. Total net sales were $ 314,459 compared with $ 308,898, and gross profit was 103,896 compared with 99,423. Income from operations was 95,560 compared with 91,979.
Capital returns remained unchanged at $0.4714 per common unit, marking the 49th consecutive quarterly distribution. The trailing twelve-month coverage ratio was 1.09x, above 1.04x at the end of the second quarter. The Partnership's stated cash-flow stability remains linked to its Ethylene Sales Agreement with Westlake, under which 95% of OpCo's ethylene production is sold to Westlake for a cash margin of $0.10 per pound, net of specified costs and reserves. Management provided no quantitative forward guidance, but stated that it expects earnings and cash flows to continue to benefit from the agreement's stability.
Management, verbatim
We were pleased with the Partnership's performance in the third quarter of 2026, with net income, EBITDA and MLP distributable cash flow all increasing from the second quarter.
Jean-Marc Gilson, President and Chief Executive Officer
Looking forward, we expect our earnings and cash flows to continue to benefit from the stability provided by our ethylene sales agreement with Westlake.
Jean-Marc Gilson, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward revenue guidance
- Quantitative gross-margin guidance
- Quantitative operating-expense guidance
- Quantitative tax-rate guidance
- Prior guidance or prior outlook for comparison
- Reported gross margin percentage
- Free cash flow
- Share repurchases
- Quarterly balance sheet comparison with the immediately preceding quarter
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.