Ethane To Ethylene: The Essence Of Westlake Chemicals

This week I’m seeking a high-yield and growing stock from the basic materials sector. 

That materials sector includes thirteen industries all related to mining, making and delivering essential commodities. The industries are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals and minerals; paper; silver; specialty chemicals; steel.

Today I’m reviewing a small-cap chemicals firm named Westlake Chemical Partners LP. Its trading ticker symbol is WLKP.

Westlake Chemical Partners LP operates, acquires and develops facilities for the processing of natural gas liquids as well as other qualified assets.

The company operates ethylene production facilities, which primarily convert ethane into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or contract basis.

Westlake Chemical Partners GP LLC serves as the general partner of the company. 

The company was founded in 2014 and is headquartered in Houston, Texas.

I use three key data points to gauge the value of any dividend equity or fund likeWestlake Chemical Partners LP (WLKP): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

WLKP Price

Westlake’sprice per share was $25.60 at yesterday’s market close. A year ago its price was $23.95 for a gain of $1.65 per share.  

Assuming WLKP’s price will trade in the range of $20 to $30 next year, perhaps that $1.65 gain could be realized in the coming year and move SFL’s current $25.60 price to $27.25 by late-August, 2019. 

WLKP Dividends

Westlake’s most recent quarterly dividend was $0.41declared July 31st and paid August 24th. That dividend was increased from $0.3975paid the previous quarter.