I'm thinking of doubling my holdings. (Shareholder since 2019) P/E is about 14. Dividend about 10% And you get a K1 every year that can cut down your overall tax bill. Seems like a good buy at this price. Downsides: No potential for explosive growth. Pricing is already set for something like 95% of their output. Complicated business structure involving WLKP, WLK and "opco". https://s25.q4cdn.com/892202310/fil..._IR-Presentation-2Q-2024-Corbin-Update-vF.pdf
WLKP chart looks like a bond or a preferred stock. It just goes sideways so good for the 10% yield. WLK however has dropped 55% since April 2024 & this year its down 34%. Will WLKP make less profits if the collapse in WLK continues? I'm not an expert on the ethylene market so maybe it will come back. I don't know.
Good observations. They recently completed a plant turnaround so that took some capacity offline. "In January 2025, we commenced our planned maintenance turnaround of the Petro 1 production facility. The turnaround concluded in April 2025" My hope is. I buy Sales go up Price goes up or at least stays flat They keep being able to send me depreciation on a K1 Regarding price "The Ethylene Sales Agreement is a long-term, fee-based agreement with a minimum purchase commitment and includes variable pricing based on OpCo's actual feedstock and natural gas costs and estimated other costs of producing ethylene (including OpCo's estimated operating costs and a five-year average of OpCo's expected future maintenance capital expenditures and other turnaround expenditures based on OpCo's planned ethylene production capacity for the year), plus a fixed margin per pound of $0.10 less revenue from co-products sales. " Looks to me that as long as WLK continues to operate, they are obligated to buy from WLKP at a fixed mark-up.
I own it and add to it occasionally. I like the dividend and that it isn't going down. Better than a money market