Overview

* Westlake Chemical ( WLKP ) Q2 net income rises slightly to $14.6 mln from $14.4 mln

* Cash flows from operations fall to $9.1 mln due to Petro 1 turnaround

* MLP distributable cash flow decreases to $15.0 mln amid higher maintenance costs

Outlook

* Company expects distributable cash flow to improve in second half of 2025

* Westlake Chemical Partners ( WLKP ) anticipates stronger coverage ratio post-Petro 1 turnaround

Result Drivers

* PETRO 1 TURNAROUND - Higher maintenance capital expenditures due to Petro 1 turnaround impacted cash flows

* PRODUCTION INCREASE - Completion of Petro 1 turnaround increased production and sales volume, boosting net income

* STABLE SALES AGREEMENT - OpCo benefitted from fixed margin sales agreement with Westlake Corporation, offsetting lower production volumes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net $85.80

Income mln

Q2 $124.39

EBITDA mln

Q2 Gross $97.53

Profit mln

Q2 $91.23

Income mln

from

Operatio

ns

Q2 $86 mln

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the commodity chemicals peer group is "buy"

* Wall Street's median 12-month price target for Westlake Chemical Partners LP ( WLKP ) is $25.50, about 14.5% above its August 4 closing price of $21.80

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)