- There are many Master Limited Partnerships but they are not all the same with Westlake Chemical Partners standing out for being very stable.
- Despite stability normally coming at the cost of lower returns, they still offer a high 7% distribution yield that is trading a discount to their intrinsic value.
- They are further supported by very low leverage, a solid sales agreement that gives them fixed fee earnings, and a positive future outlook for ethylene demand.
- Based upon my discounted cash flow valuations, it appears that their intrinsic value is over 20% higher than their current unit price with results very favorably skewed to the upside.
- Following these continued positive findings, it should be no surprise that I am maintaining my bullish rating.
For further details see:
Westlake Chemical Partners: A Very Stable MLP That's Still Selling At A Discount