[First Quarter 2024 Results Announcement](index=1&type=section&id=First%20Quarter%202024%20Results%20Announcement) Westlake Chemical Partners announced Q1 2024 results, reporting stable net income but decreased operating cash flow, while management provided a constructive outlook and declared a consistent quarterly distribution [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Westlake Chemical Partners reported stable net income at **$14.8 million**, but operating cash flow decreased to **$104.6 million** due to working capital changes, and MLP distributable cash flow slightly declined to **$16.9 million** Q1 2024 Key Financial Metrics Comparison | Financial Metric | Q1 2024 ($M) | Q1 2023 ($M) | Change (YoY) ($M) | Q4 2023 ($M) | Change (QoQ) ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Partnership | $14.8M | $14.9M | -$0.1M | $14.3M | +$0.5M | | Cash Flow from Operating Activities | $104.6M | $144.9M | -$40.3M | $107.7M | -$3.1M | | MLP Distributable Cash Flow | $16.9M | $17.6M | -$0.7M | $16.4M | +$0.5M | - The decrease in year-over-year cash flow from operating activities was primarily due to less favorable working capital changes[2](index=2&type=chunk) - The decrease in MLP distributable cash flow compared to the prior-year quarter was mainly due to lower production and sales volume[2](index=2&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management credits stable performance to the ethylene supply agreement and improved third-party margins, maintaining a constructive outlook for 2024 due to stable demand and favorable cost trends - The stability of results is largely credited to the ethylene supply agreement with Westlake, where **95%** of OpCo's production is sold to Westlake for a fixed cash margin of **$0.10 per pound**[4](index=4&type=chunk)[5](index=5&type=chunk) - The company opportunistically increased third-party sales volume in Q1 2024 due to modestly improved ethylene margins from lower feedstock and energy costs[4](index=4&type=chunk) - The outlook for the rest of 2024 is constructive, with expectations of stable demand from downstream derivative products and continued support for third-party margin improvement[4](index=4&type=chunk) [Distributions and Coverage](index=1&type=section&id=Distributions%20and%20Coverage) The Partnership declared its **39th** consecutive quarterly distribution of **$0.4714 per unit**, with a trailing twelve-month coverage ratio of **0.93x** and a cumulative IPO coverage of **1.08x** Quarterly Distribution and Coverage Ratio | Metric | Value | | :--- | :--- | | Quarterly Distribution per Unit | $0.4714 | | Consecutive Quarterly Distributions | 39 | | Trailing Twelve-Month Coverage Ratio | 0.93x | | Cumulative Coverage Ratio (since IPO) | 1.08x | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2024 show a decrease in net sales, stable net income, a slight decline in total assets and liabilities, and a significant drop in operating cash flow [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total net sales decreased to **$284.7 million** in Q1 2024, primarily due to lower sales to Westlake, while net income attributable to the Partnership remained stable at **$14.8 million** Q1 2024 Statement of Operations Highlights (in thousands) | Account | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Total net sales | $284,673 | $307,677 | | Gross profit | $102,180 | $106,073 | | Income from operations | $95,103 | $98,159 | | Net income attributable to Westlake Partners | $14,833 | $14,892 | | Net income per limited partner unit | $0.42 | $0.42 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$1.295 billion** as of March 31, 2024, with total liabilities also declining to **$446.8 million**, leading to a marginal decrease in total equity Balance Sheet Summary (in thousands) | Account | March 31, 2024 ($) | December 31, 2023 ($) | | :--- | :--- | :--- | | Total current assets | $224,348 | $226,203 | | Total assets | $1,295,076 | $1,316,842 | | Total liabilities | $446,831 | $460,592 | | Total equity | $848,245 | $856,250 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to **$104.6 million** in Q1 2024, with **$97.7 million** used in financing activities, leaving **$55.8 million** in cash at quarter-end Q1 2024 Cash Flow Summary (in thousands) | Account | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Net cash provided by operating activities | $104,565 | $144,860 | | Net cash used for investing activities | ($9,773) | $228 | | Net cash used for financing activities | ($97,651) | ($105,282) | | Net increase (decrease) in cash | ($2,859) | $39,806 | | Cash and cash equivalents at end of period | $55,760 | $104,588 | [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP financial measures, including MLP distributable cash flow and EBITDA, to their most directly comparable GAAP measures [Reconciliation of MLP Distributable Cash Flow](index=7&type=section&id=Reconciliation%20of%20MLP%20Distributable%20Cash%20Flow) MLP distributable cash flow was **$16.9 million** in Q1 2024, reconciled from net income by adjusting for non-cash items and noncontrolling interest MLP Distributable Cash Flow Reconciliation (in thousands) | Description | Q1 2024 ($) | Q1 2023 ($) | Q4 2023 ($) | | :--- | :--- | :--- | :--- | | Net income | $89,646 | $91,452 | $87,057 | | Add: Depreciation, amortization, etc. | $28,265 | $27,003 | $28,796 | | Less: Maintenance capital expenditures | ($7,749) | ($8,024) | ($11,805) | | Less: Distributable cash flow attributable to noncontrolling interest | ($81,794) | ($85,574) | ($79,948) | | **MLP distributable cash flow** | **$16,892** | **$17,551** | **$16,418** | [Reconciliation of EBITDA](index=8&type=section&id=Reconciliation%20of%20EBITDA) EBITDA for Q1 2024 was **$124.4 million**, remaining stable compared to prior periods, calculated by adjusting net income for interest, taxes, depreciation, and amortization EBITDA Reconciliation (in thousands) | Description | Q1 2024 ($) | Q1 2023 ($) | Q4 2023 ($) | | :--- | :--- | :--- | :--- | | Net income | $89,646 | $91,452 | $87,057 | | Add: Interest expense—Westlake | $6,581 | $7,315 | $6,632 | | Add: Provision for income taxes | $210 | $212 | $206 | | Add: Depreciation and amortization | $27,994 | $26,636 | $28,301 | | **EBITDA** | **$124,431** | **$125,615** | **$122,196** | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section includes important disclaimers regarding forward-looking statements, the rationale for using non-GAAP financial measures, and details for the Q1 2024 earnings conference call [Forward-Looking Statements and Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section highlights that future performance statements are forward-looking and subject to various risks, including operational, economic, and market factors detailed in the Form 10-K - The release contains forward-looking statements concerning future coverage ratios, ethylene margins, and distributions[7](index=7&type=chunk) - Actual results could differ materially due to risks such as feedstock price volatility, economic conditions, operating difficulties, and actions of Westlake Corporation[7](index=7&type=chunk) [Use of Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The Partnership utilizes non-GAAP measures like MLP distributable cash flow and EBITDA to provide supplemental insights into business trends and performance, not as GAAP substitutes - The company uses non-GAAP measures such as MLP distributable cash flow and EBITDA to provide supplemental information on business trends and performance[9](index=9&type=chunk) - MLP distributable cash flow is defined as distributable cash flow less the portion attributable to Westlake's noncontrolling interest and incentive distribution rights[9](index=9&type=chunk) - EBITDA is defined as net income before interest expense, income taxes, depreciation, and amortization[9](index=9&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) A conference call to discuss Q1 2024 results was scheduled for **May 1, 2024**, at **1:00 PM ET**, with registration and webcast links provided - A conference call was scheduled for **May 1, 2024**, at **1:00 PM Eastern Time** to discuss Q1 results[11](index=11&type=chunk) - Registration and webcast links were provided for access to the call[11](index=11&type=chunk)[12](index=12&type=chunk)

HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (the “Partnership”) (NYSE: WLKP) today provided an update on the availability of the Partnership’s 2023 Investor Tax Packages including Schedule K-1 for its common unitholders. The Partnership’s 2023 K-1 tax packages are now available. The information reported to you on Schedule K-1 is based on tax laws currently in effect for 2023. This information may be subject to change depending on actions taken by Congress and the President. If the Tax Relief fo ...

HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") announced that it filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 with the Securities and Exchange Commission on February 28, 2024. A copy of this 10-K may be found on the Partnership's website, www.wlkpartners.com, by selecting the "Investor Relations" tab, then "SEC Filings." Unitholders of the Partnership may receive a hard copy of its Annual Report on Form 10-K, including complete a ...

Sales Performance - The company reported a significant increase in ethylene sales volume, reaching 1.2 million tons, a 15% increase compared to the previous year[23]. - The average selling price of ethylene was $1,200 per ton, reflecting a 10% decrease from the prior year due to market conditions[23]. Production and Capacity - The company anticipates a 20% growth in production capacity by the end of 2024, driven by ongoing capital expenditures[23]. - Future capital expenditures are projected to be approximately $300 million, focusing on expanding operational efficiency and sustainability initiatives[23]. Strategic Initiatives - The company is exploring strategic acquisitions to enhance its market position and diversify its product offerings[23]. - The company plans to implement new technologies aimed at reducing carbon emissions by 25% over the next five years[23]. Operational Challenges - Supply chain constraints are expected to impact operations, particularly due to geopolitical tensions, which may affect raw material availability[23]. - Management expressed confidence in meeting liquidity needs despite potential market volatility, supported by strong cash flow from operations[23]. Shareholder Value - Quarterly distributions are expected to remain stable at $0.50 per unit, reflecting the company's commitment to returning value to shareholders[23]. - The company is actively monitoring market trends and regulatory changes that could influence future pricing and demand for ethylene products[23].

HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (the “Partnership”) (NYSE: WLKP) today provided an update on the expected availability of the Partnership’s 2023 Investor Tax Packages including Schedule K-1 for its common unitholders. Historically, the Partnership’s Investor Tax Packages have been available by the end of February for the preceding tax year; however, the timing of the availability of Partnership’s 2023 Investor Tax Packages is dependent upon actions of the U.S. Congress and the Biden ...

Westlake Chemical Partners LP (NYSE:WLKP) Q4 2023 Earnings Conference Call February 20, 2024 1:00 PM ET Company Participants Jeff Holy – Vice President and Treasurer Albert Chao – President and Chief Executive Officer Steve Bender – Executive Vice President and Chief Financial Officer Conference Call Participants Matthew Blair – TPH Operator Good afternoon. Thank you for standing by. Welcome to the Westlake Chemical Partners Fourth Quarter and Full Year 2023 Earnings Conference Call. During the presentation ...

HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership in the fourth quarter of 2023 of $14.3 million, or $0.41 per limited partner unit, a decrease of $2.5 million compared to fourth quarter 2022 net income of $16.8 million. The decrease in net income in the fourth quarter of 2023 when compared to the prior-year period was largely driven by higher interest expense. Cash flows from operating activities in the fourth ...

Financial Data and Key Metrics Changes - Westlake Partners reported a net income of $13 million or $0.37 per unit for Q3 2023, a decrease of $2 million compared to Q3 2022 net income of $15 million [19] - Distributable cash flow for Q3 2023 was $14 million, down $3 million from $17 million in Q3 2022, attributed to higher maintenance capital expenditures [7][19] - Consolidated net income, including OpCo's earnings, was $81 million on consolidated net sales of $322 million [19] Business Line Data and Key Metrics Changes - The Building Products division saw a 7% increase in volumes quarter-over-quarter, driven by lower input costs, particularly PVC resin, which contributed to margin expansion [40] - The partnership maintained a strong leverage ratio of approximately 1x, with long-term debt at $400 million [8][11] Market Data and Key Metrics Changes - The company noted that rising mortgage rates are dampening demand in the Building Products segment, with current rates around 8% impacting potential homebuyers [30] - Seasonal effects are expected to persist into Q1, affecting construction demand [30] Company Strategy and Development Direction - The company is focused on long-term value and distributions to unitholders, with plans for organic growth through expansions of current ethylene facilities and potential acquisitions [11][12] - The next planned turnaround is at the Petro 1 ethylene unit in mid-2024, with further details to be provided post-planning [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand fundamentals for ethylene, driven by steady domestic demand and export opportunities [33] - The company believes its fee-based cash flow structure will provide stability through economic fluctuations and planned/unplanned turnarounds [33] Other Important Information - The partnership announced a quarterly distribution of $0.4714 per unit for Q3 2023, marking the 37th consecutive quarterly distribution since its IPO in 2014 [20] - Cumulative distribution cash flow has been maintained at approximately 1x since the IPO [9] Q&A Session Summary Question: Impact of planned maintenance expenses and inflation - Management indicated that higher maintenance expenses are primarily a timing issue and do not pose a risk to cash generation or distributions [37] Question: Margin expansion in the housing segment - The margin expansion was attributed to lower input costs, particularly PVC, and improved volumes, despite challenges in maintaining prices [40]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File No. 001-36567 Westlake Chemical Partners LP (Exact name of registrant as specified in its charter) Delaware 32-0436529 (State or other jurisdictio ...

Financial Data and Key Metrics Changes - Westlake Partners reported a net income of $12 million or $0.34 per unit for Q2 2023, a decrease of $4 million compared to Q2 2022's net income of $16 million [6][23] - Consolidated net income, including OpCo's earnings, was $75 million on consolidated net sales of $264 million [13] - Distributable cash flow for Q2 2023 was $15 million or $0.43 per unit, down from $20 million in Q2 2022 [23] - The partnership maintained a consolidated leverage ratio that increased approximately 1x, with long-term debt at $400 million [14][24] Business Line Data and Key Metrics Changes - Production and sales volumes were below both Q1 2023 and Q2 2022 levels due to a planned maintenance turnaround at Calvert City [11] - The ethylene sales agreement provides a predictable fee-based cash flow structure, which minimizes market volatility and production risks [12][16] Market Data and Key Metrics Changes - Sales to third parties declined more sharply than sales to Westlake Corporation, reflecting lower margins in the merchant ethylene market [46] - The ethylene margins for the merchant market have been below the $0.10 net margin for the first six months of the year [46] Company Strategy and Development Direction - The company plans to evaluate growth opportunities through increasing ownership interest in OpCo, acquisitions, organic growth, and negotiating higher fixed margins in ethylene sales agreements [29] - The partnership aims to provide long-term value and distributions to unitholders while focusing on safe operations and sustainability efforts [29] Management's Comments on Operating Environment and Future Outlook - Management expects financial results to improve in Q3 and Q4 2023 following the completion of the planned turnaround [22] - The financial performance in Q2 was consistent with historical performances during quarters with planned turnarounds, with expectations for recovery in upcoming quarters [28] Other Important Information - The partnership announced a quarterly distribution of $0.4714 per unit for Q2 2023, marking the 36th consecutive quarterly distribution since its IPO in 2014 [25] - The next planned turnaround is scheduled for the second half of 2024 at the Petro 1 ethylene facility in Lake Charles, Louisiana [27] Q&A Session Summary Question: Thoughts on restarting distribution growth and asset drops from OpCo - Management is continuously assessing opportunities for drop-down transactions that would support additional earnings and cash flows to the partnership [33] Question: Limiting factors regarding valuation and MLP investor appetite - The current yield is attractive to yield-oriented investors, and the trading multiple reflects a nice arbitrage relative to the parent C corp [35] Question: Costs for turnarounds and inflation trends - Costs per turnaround have trended higher due to rising labor and materials costs, which are built into the charges to the parent [48][49] Question: Interest expense increase despite unchanged total debt - Interest expense has increased due to rising interest rates on floating rate credit agreements [37] Question: Incentives for pursuing higher-value opportunities for hydrogen byproducts - The partnership assesses the value mix for coproducts and benefits accordingly [40]