Westlake Chemical Partners(WLKP) - 2024 Q3 - Quarterly Report

Financial Performance - Total net sales for the three months ended September 30, 2024, were $276,995, a decrease of 13.9$321,664 for the same period in 2023[7]. - Gross profit for the three months ended September 30, 2024, was $116,943, representing a 25.7$92,981 in the prior year[7]. - Net income attributable to Westlake Chemical Partners LP for the three months ended September 30, 2024, was $18,136, up 37.0$13,206 in the same period last year[7]. - The company reported a net income of $104,100 for the three months ended September 30, 2024, compared to$80,853 for the same period in 2023, reflecting a 28.8% increase[7]. - Net income for the nine months ended September 30, 2024, was $281,772, an increase of 13.8$247,569 for the same period in 2023[13]. - MLP distributable cash flow for the three months ended September 30, 2024, was $17,879, an increase of 31.6$13,620 in the prior year[84]. - EBITDA for the three months ended September 30, 2024, was $139,126, representing a 20.2$115,738 in the prior year[84]. - For the nine months ended September 30, 2024, net income attributable to the Partnership was $47,396, resulting in a net income per limited partner unit of$1.35[32]. Assets and Liabilities - Total current assets increased to $241,562 as of September 30, 2024, from$226,203 at December 31, 2023, marking a growth of 6.0%[6]. - Total liabilities decreased to $456,881 as of September 30, 2024, down from$460,592 at December 31, 2023, a reduction of 0.2%[6]. - The company’s total assets were $1,294,695 as of September 30, 2024, down from$1,316,842 at December 31, 2023, a decrease of 1.7%[6]. - Total equity as of September 30, 2024, was $837,814, a decrease from$856,250 as of December 31, 2023[6]. - Cash and cash equivalents increased to $60,208 as of September 30, 2024, compared to$58,619 at December 31, 2023, an increase of 2.7%[6]. Expenses - Selling, general and administrative expenses for the three months ended September 30, 2024, were $7,254, slightly higher than$6,741 in the same period last year[7]. - The Partnership's depreciation and amortization expense for the nine months ended September 30, 2024, was $84,421, compared to$81,902 for the same period in 2023, reflecting an increase of 3.1%[13]. - Interest on related party debt payable for the three months ended September 30, 2024, was $6,698 thousand, compared to$6,437 thousand for the same period in 2023, reflecting an increase of 4.06%[53]. - Interest expense for the nine months ended September 30, 2024 was $19.9 million, consistent with the same period in 2023[100]. Sales and Revenue - Net sales to Westlake for the three months ended September 30, 2024, were$215,799, a decrease from $289,303 in the same period of 2023[39]. - Westlake accounted for approximately 77.9$0.4714 per unit for the three months ended September 30, 2024[28]. - The total quarterly distribution per unit for the three months ended September 30, 2024, was $0.4714, consistent with the same period in 2023[36]. - The Partnership's distribution for the three months ended September 30, 2024, was$16,607, while the distribution in excess of net income was $(3,401)[32]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was$352,532, compared to $344,328 for the same period in 2023, reflecting a growth of 2.9$433 thousand for the three months ended September 30, 2023, to $471 thousand for the same period in 2024[49]. - The Partnership's decision to postpone the maintenance turnaround at the Petro 1 facility is expected to result in excess quantities of ethylene for the current contract year[39]. - The next planned maintenance turnaround at Petro 1 is scheduled to commence in the first quarter of 2025[77]. - Operating expenses are primarily driven by feedstock costs, which can fluctuate based on production volumes and maintenance activities[78]. Related Party Transactions - The Partnership's accounts receivable from Westlake decreased to$44,885 as of September 30, 2024, from $49,565 as of December 31, 2023[47]. - Charges for feedstock purchased from Westlake included in cost of sales for the three months ended September 30, 2024, were$65,053, down from $120,040 in 2023[41]. - The Partnership's accounts payable to Westlake included$5,885 related to non-variable costs of production due to excess ethylene production[47]. - Other charges from Westlake included in cost of sales for the three months ended September 30, 2024, were $31,274, slightly up from$31,072 in the same period of 2023[41].