Westlake Chemical Partners Posts Q4 Net Income $14.5M, Boosts Coverage Ratio to 1.13x
Westlake Chemical Partners reported Q4 net income of $14.5M and distributable cash flow of $18.8M, achieving a coverage ratio of 1.13x and declaring a $0.4714 distribution. Full-year net income fell 22% to $48.7M as cash flows declined sharply after the Petro 1 turnaround, with 2026 volumes set to rise.
1. Q4 2025 Earnings
Westlake Chemical Partners reported net income attributable to limited partners of $14.5 million, or $0.41 per unit, in Q4 2025 compared with $15.0 million in Q4 2024. Operating cash flows were $120.4 million, down from $132.5 million a year earlier, while MLP distributable cash flow rose by $3.8 million to $18.8 million.
2. Full Year 2025 Financials
For 2025, net income attributable to the Partnership totaled $48.7 million, down 22% from $62.4 million in 2024, primarily due to production downtime during the Petro 1 turnaround. Operating cash flows declined by $204.5 million to $280.5 million, and MLP distributable cash flow fell to $53.4 million from $66.9 million.
3. Distribution and Coverage Metrics
The Board approved a $0.4714 quarterly distribution—the 46th consecutive payment—paid on February 23, 2026. Q4 distributable cash flow covered distributions at a ratio of 1.13x, up from 1.07x in Q4 2024 and the highest since late 2022, while trailing twelve-month coverage reached 0.80x.
4. 2026 Outlook
With the Petro 1 turnaround completed and no further planned outages, management projects increased production and sales volumes in 2026. Higher volumes should enhance cash flow stability and drive further improvement in the coverage ratio and distribution sustainability.