- Westlake Chemical Partners is a fairly unique master limited partnership that owns and operates ethylene production facilities.
- The company has a contract to sell 95% of its output to Westlake Chemical Corporation at a fixed margin, ensuring that it has stable cash flows.
- The partnership has some potential to grow by acquiring one of Westlake Chemical's ethylene production facilities.
- The partnership is very conservatively financed and may in fact be able to benefit from taking on more debt.
- The distribution coverage is tighter than we like to see but the 7% yield is probably safe.
For further details see:
Westlake Chemical Partners: Growth, Staying Power, And A 7% Yield