Start here if you're new
what it is
WLKP runs three ethylene plants and gets paid to feed a parent chemical empire that needs the output.
how it gets paid
Last year Westlake Chemical made $1.2B in revenue. ethylene supply to packaging chain was the main engine at $0.42B, or 35% of sales.
why it's growing
Revenue grew 2.7% last year. The loud number was revenue, up 173% vs. prior year in the latest quarter per EDGAR.
what just happened
Revenue hit $844M, while quarterly EPS came in at $0.42 and gross margin was 29.8%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
85/100 earnings predictability — you can trust these numbers
13.2x trailing p/e — the market's not buying it — or you found a deal
8.4% dividend yield — cash in your pocket every quarter
11.1% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
WLKP runs three ethylene plants and gets paid to feed a parent chemical empire that needs the output.
This is not a growth story. It is a contract-and-assets story. WLKP runs 3 ethylene facilities on sites leased for 50 years, and those assets sit inside Westlake's chemical chain. Ethylene is a feedstock (raw chemical input) that turns into polyethylene and PVC, so if you need the downstream products, you need the molecule first. Your comfort here is stability: price stability is 95 out of 100, and the business still produced a 27.4% operating margin in 2024.
How they make money
$1.2B
annual revenue · their business grew +2.7% last year
ethylene supply to packaging chain
$0.42B
ethylene supply to construction chain
$0.36B
ethylene supply to transportation chain
$0.24B
other downstream end markets
$0.18B
The products that matter
manufactures and sells ethylene
Ethylene Production
$1.2B revenue base
this is effectively the whole business. in 2025, it converted $1.2B of revenue into $49M of net income. you are not buying a diversified chemical portfolio. you are buying this single stream.
4.2% net margin
passes through cash to unitholders
Limited Partnership Structure
$0.4714 quarterly distribution
the partnership declared a $0.4714 quarterly cash distribution on february 24, 2026. that's the key attraction. if you own WLKP, the payout is not a side benefit. it's the reason the units exist.
8.4% yield
the agreement that underwrites the model
Westlake Supply Agreement
one customer exposure
this agreement supports essentially the entire revenue stream. it also concentrates your risk in one counterparty. the same fact that creates stability also removes your backup plan.
single counterparty
Key numbers
8.4%
dividend yield
You are being paid 8.4% to wait. That is the whole appeal here, especially against 0.5% historical sales growth.
27.4%
operating margin
Operating margin means profit after running the business. Plain English: WLKP kept about 27 cents from each sales dollar before interest and taxes.
$400M
long-term debt
Debt equals 34% of capital, which is fine until volume slips. Then the balance sheet stops being background noise.
95
price stability
A 95 out of 100 stability score says this trades more like an income vehicle than a drama stock.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 95 / 100
- long-term debt $400M (34% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for WLKP right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $844M, while quarterly EPS came in at $0.42 and gross margin was 29.8%.
The loud number was revenue, up 173% vs. prior year in the latest quarter per EDGAR. The quieter number was EPS at $0.42, which matches the pattern of a business built for steadiness, not expansion.
$844M
revenue
$0.42
eps
29.8%
gross margin
the number that mattered
$844M matters because quarterly revenue exploded 173% vs. prior year, while full-year revenue was only up 2.7%, which tells you timing and contract mechanics can make this business look stranger than it is.
source: company earnings report, 2026
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What could go wrong
WLKP is a one-product, one-customer income vehicle with a 4.2% net margin. that combination works right up until one of those supports weakens.
high
thin-margin commodity math
WLKP produced $49M in net income on $1.2B of revenue in 2025. that's a 4.2% net margin, less than half the 9.6% industry average.
when you only keep four cents on the dollar, small operational misses stop being small.
high
single-customer dependence
the partnership sells ethylene back to Westlake Corporation. in plain English: essentially the whole business depends on one relationship.
if contract terms, demand, or parent-company priorities shift, you do not have another growth engine waiting in the wings.
med
debt plus payout reliance
WLKP carries $400M in long-term debt, equal to 34% of capital, while the stock's appeal leans heavily on an 8.4% yield.
if earnings soften, you are suddenly watching both balance sheet tolerance and distribution confidence at the same time.
med
finance leadership turnover
executive vice president and CFO M. Steven Bender plans to retire, and the company was searching for a successor as of february 23, 2026.
this is a steady-execution story. when the story is stability, any handoff in capital allocation deserves your attention.
put differently: WLKP looks calm because its structure is narrow and controlled. that same narrowness is also the risk.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net margin
4.2% is already thin. if that starts slipping, the yield story gets tested fast.
calendar
Q1 2026 earnings report
watch for the same pattern: small earnings moves, routine distribution language, and no change in contract stability.
risk
CFO succession
the new finance chief will not change the asset base, but any shift in payout tone or debt posture would matter.
trend
ethylene pricing and contract economics
WLKP is not diversified. if ethylene economics weaken, you feel it quickly because there is no second business line to absorb the hit.
Analyst rankings
earnings predictability
85 / 100
the numbers are unusually steady. in human-speak, analysts think this business is boring in the useful way.
price stability
95 / 100
the unit price has been calmer than most stocks. that fits an income vehicle, not a high-beta chemical trade.
risk rank
4
risk rank 4 means calm trading does not equal low business risk. the contract helps, but concentration and thin margins keep this out of the defensive tier.
source: institutional data
Institutional activity
institutional ownership data for WLKP is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$18
current price
n/a
target midpoint · n/a from current
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