WLKP
Basic MaterialsWestlake Chemical Partners LP · Chemicals · $790M
What is Westlake Chemical Partners LP?
Westlake Chemical Partners LP is a master limited partnership focused on ethylene production in the United States. Formed in 2014 and headquartered in Houston, Texas, it operates as a downstream chemicals business tied closely to its parent, Westlake Corporation.
WLKP acquires, develops, and operates ethylene production facilities that primarily convert ethane feedstock into ethylene — a foundational building block for plastics and chemicals. Revenue flows through long-term agreements with its parent company, supplemented by direct third-party sales of co-products. This structure gives the partnership a relatively predictable cash flow profile compared with open-market commodity producers.
The partnership was incorporated in 2014 and is headquartered in Houston, Texas.
- Ethylene production from ethane cracking
- Propylene and crude butadiene co-product sales
- Pyrolysis gasoline and hydrogen sales
- Long-term ethylene supply agreements
Is WLKP a Good Stock to Buy?
UQS Score rates WLKP as Good overall, reflecting a balanced profile with notable strengths and one clear area of concern.
The Quality pillar stands out as the partnership's strongest attribute, supported by a Risk profile that also rates well — suggesting the business generates dependable cash flows without excessive financial strain. Valuation is rated Attractive, meaning the units do not appear stretched relative to fundamentals.
The Moat pillar is rated Weak, which is typical for commodity-linked partnerships where pricing power is limited and differentiation is difficult to sustain.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does WLKP pay dividends?
Yes — Westlake Chemical Partners LP pays a dividend.
WLKP pays a regular distribution to unitholders, a hallmark of the MLP structure designed to pass through operating cash flows. The partnership's relatively stable, contract-backed revenue supports consistent payouts. Income-oriented investors often screen for MLPs like WLKP specifically because of this distribution focus.
When does WLKP report earnings?
Westlake Chemical Partners LP reports financial results on a quarterly cadence, consistent with US-listed partnerships.
Results have generally reflected the partnership's contract-driven model, with cash flows tied to ethylene production volumes and co-product realizations. Commodity price swings can influence co-product revenue, introducing some variability quarter to quarter.
For the most recent quarter's results, visit Westlake Chemical Partners' investor relations page directly.
WLKP Price History
+21.6% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Westlake Chemical Partners LP?
Based on Westlake Chemical Partners LP's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
WLKP Long-term Outlook
The Growth pillar for WLKP is rated Neutral, suggesting the partnership is not expected to expand rapidly but is also not in decline. Stability rather than acceleration characterizes the near-term fundamental outlook. The Attractive Valuation rating indicates the market may not be pricing in even modest growth, which could be a favorable setup for patient, income-focused investors.
Growth drivers
- Steady ethylene demand from downstream plastics and packaging industries
- Long-term supply agreements providing revenue visibility
- Potential dropdown acquisitions from parent Westlake Corporation
Key risks
- Weak Moat rating reflects limited pricing power in commodity ethylene markets
- Feedstock cost volatility can compress margins on co-product sales
- Concentration risk from heavy reliance on the parent company as primary customer
WLKP vs Peers
WLKP operates in the basic materials sector alongside several other specialty chemical and industrial producers.
RYAM focuses on high-purity cellulose specialties rather than petrochemical feedstocks, serving different end markets than WLKP's ethylene-centric model.
LSB Industries produces chemical products including ammonia and nitric acid, giving it exposure to agricultural markets that WLKP does not share.
AdvanSix is an integrated nylon and chemical producer whose diversified product slate contrasts with WLKP's narrower ethylene and co-product focus.
Frequently Asked Questions
What does Westlake Chemical Partners LP do?
Westlake Chemical Partners LP acquires and operates ethylene production facilities in the United States. Its plants convert ethane into ethylene, a key raw material for plastics. The partnership also sells co-products such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen to third-party buyers.
Does WLKP pay dividends?
Yes, WLKP pays regular distributions to unitholders. As a master limited partnership, it is structured to pass operating cash flows through to investors. The contract-backed revenue model supports the consistency of these payouts, making it a common screen for income-focused investors.
When does WLKP report earnings?
Westlake Chemical Partners reports on a quarterly cadence, standard for US-listed partnerships. For the exact schedule and most recent results, check the investor relations section of the company's official website.
Is WLKP a good stock to buy?
UQS Score rates WLKP as Good overall. The Quality and Risk pillars are rated favorably, and Valuation is Attractive. However, the Weak Moat rating signals limited competitive differentiation. Whether it suits your portfolio depends on your income goals and tolerance for commodity-linked variability.
Is WLKP overvalued?
The UQS Valuation pillar rates WLKP as Attractive, suggesting the units are not overpriced relative to the partnership's fundamentals. This does not guarantee price appreciation, but it indicates the market is not assigning a significant premium to the business at current levels.
How does WLKP compare to its competitors?
WLKP's ethylene-focused, MLP structure sets it apart from peers like RYAM, LXU, and ASIX, which operate across cellulose, agricultural chemicals, and nylon respectively. WLKP's contract-driven model offers more revenue predictability, but its narrow product focus limits diversification compared with some peers.
What is WLKP's market cap bracket?
WLKP is classified as a small-cap partnership. This means it carries less analyst coverage and potentially lower trading liquidity than large-cap peers, which investors should factor into position sizing and due diligence.
Who founded Westlake Chemical Partners LP?
Westlake Chemical Partners was formed in 2014 as a master limited partnership by Westlake Corporation, a major petrochemical producer. Westlake Chemical Partners GP LLC serves as the general partner. Full founding details are publicly available through the company's SEC filings.
Is WLKP a long-term quality investment?
From a long-term quality standpoint, WLKP's Strong Quality pillar and Good Risk rating suggest the business has durable fundamentals. The Weak Moat, however, means competitive advantages are limited. Long-term holders should monitor ethylene market dynamics and the partnership's relationship with its parent company.
What is the main competitive advantage of Westlake Chemical Partners?
WLKP's primary structural advantage is its long-term ethylene supply agreement with parent Westlake Corporation, which provides revenue visibility uncommon in open commodity markets. That said, the UQS Moat pillar rates this advantage as Weak, reflecting the inherently competitive and price-sensitive nature of petrochemical production.
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Pro Analysis
WLKP — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 16, 2026 | 67.1 | 98.9 | 31.0 | 48.9 | 75.7 | 90.2 | +2.5 |
| May 7, 2026 | 64.6 | 93.5 | 31.0 | 48.9 | 68.9 | 89.2 | -0.1 |
| May 3, 2026 | 64.7 | 93.5 | 31.0 | 48.9 | 68.9 | 89.8 | -0.1 |
| Apr 26, 2026 | 64.8 | 93.5 | 31.0 | 48.9 | 68.9 | 90.3 | 0.0 |
| Apr 19, 2026 | 64.8 | 93.5 | 31.0 | 48.9 | 68.9 | 90.6 | 0.0 |
| Apr 18, 2026 | 64.8 | 93.5 | 31.0 | 48.9 | 68.9 | 90.2 | +0.6 |
| Apr 12, 2026 | 64.2 | 93.5 | 31.0 | 48.9 | 68.9 | 86.6 | -0.2 |
| Apr 5, 2026 | 64.4 | 93.5 | 31.0 | 48.9 | 68.9 | 87.6 | +0.1 |
| Apr 2, 2026 | 64.3 | 93.5 | 31.0 | 48.9 | 68.9 | 87.1 | — |
WLKP — Pillar Breakdown
Quality
— 98.9/100 (25%)Westlake Chemical Partners LP demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 48.9/100 (20%)Westlake Chemical Partners LP shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 75.7/100 (15%)Westlake Chemical Partners LP carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 90.4/100 (15%)Westlake Chemical Partners LP appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 31/100 (25%)Westlake Chemical Partners LP operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for WLKP.
Score Composition
Financial Data
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How is the WLKP UQS Score Calculated?
The UQS (Unified Quality Score) for Westlake Chemical Partners LP is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Westlake Chemical Partners LP's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Westlake Chemical Partners LP is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.