Westlake Chemical Partners LP (WLKP) AI Stock Analysis

Westlake Chemical Partners LP, based in Houston, Texas, specializes in the acquisition, development, and operation of ethylene production facilities and related assets in the United States. The company converts ethane into ethylene, which serves as a core chemical building block. It also markets co-products including propylene, crude butadiene, pyrolysis gasoline, and hydrogen through contract and spot transactions with third parties. Founded in 2014, the partnership is managed by its general partner, Westlake Chemical Partners GP LLC, which oversees operational management and strategic development.

Between FY2020 and FY2025, revenue achieved a 5-year compound annual growth rate of 3.8%. Revenue expanded 31.1% in FY2022 to reach $1.59B before falling 25.3% in FY2023 to $1.19B. In FY2025, revenue increased 2.7% to $1.17B, with gross margin at 29.8% and operating margin at 27.4%, resulting in net income of $48.7M and EPS of $1.38. This compared to operating cash flow of $280.5M and free cash flow of $201.7M in FY2025. In the trailing twelve months ending June 30, 2026, revenue stood at $1.23B with EPS of $1.64, although quarterly earnings declined 2.2% year-over-year.

As of June 30, 2026, Westlake Chemical Partners held $49.3M in cash and short-term investments against total debt of $399.7M, yielding net debt of $350.4M. Shareholders' equity was $253.7M on total assets of $1.22B, resulting in a debt-to-equity ratio of 1.58 and a current ratio of 3.44. In FY2025, the business directed $78.8M toward capital expenditures and distributed $66.5M in dividends.

WLKP closed at $20.80 on October 16, 2026, giving it a market cap of $733.1M and an enterprise value of $1.10B. The stock trades at a trailing P/E of 12.7x and a forward P/E of 11.4x, lower than the median of its US-listed Basic Materials peers at 19.7x and 13.4x, respectively. Its EV/EBITDA stands at 2.5x compared to the peer median of 10.5x, and its price-to-sales is 0.6x against the peer median of 1.8x. Over the past year, the stock returned 11.8%, trailing the S&P 500 (SPY) return of 16.8%.

The partnership pays a quarterly dividend totaling $1.89 annually, providing a dividend yield of 9.07%. Westlake Chemical Partners has paid consecutive dividends for 13 years, with a 5-year annualized dividend growth rate of 0.0%. Its payout ratio stands at 115.6%, and the most recent ex-dividend date was August 13, 2026.

Wall Street coverage includes 1 Strong Buy rating and no Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $26.00, representing a 25.0% premium over the closing price of $20.80. For the fiscal year ending December 31, 2026, analysts estimate revenue of $1.36B and EPS of $1.54, implying 11.4% earnings growth. Over the last four quarters, the partnership beat EPS expectations 1 time. The next earnings date is October 29, 2026.

This page is an AI-written research summary of Westlake Chemical Partners LP (WLKP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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