0001604665false00016046652025-02-242025-02-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 24, 2025

Westlake Chemical Partners LP
(Exact name of registrant as specified in its charter)

Delaware001-3656732-0436529
(State or other jurisdiction
of incorporation)		(Commission File Number)(I.R.S. Employer
Identification No.)

2801 Post Oak Boulevard,Suite 60077056
Houston,Texas
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (713) 585-2900

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common units representing limited partnership interestsWLKPThe New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02. Results of Operations and Financial Condition.
On February 24, 2025, Westlake Chemical Partners LP (the "Partnership") issued a press release announcing its 2024 fourth quarter and full year results. A copy of the press release is furnished with this Current Report as Exhibit 99.1.
The information furnished pursuant to this Current Report, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any filing by Westlake Chemical Partners LP under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, unless specifically identified as being incorporated therein.
Item 7.01. Regulation FD Disclosure.
The Partnership is holding a conference call on February 24, 2025 to discuss its 2024 fourth quarter and full year results. Information about the call can be found in the press release furnished with this Current Report as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is furnished herewith:
104    The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WESTLAKE CHEMICAL PARTNERS LP
By: Westlake Chemical Partners GP LLC
Date:February 24, 2025By:
/S/ JEAN-MARC GILSON
Jean-Marc Gilson
President, Chief Executive Officer and Director





EXHIBIT 99.1
WESTLAKE CHEMICAL PARTNERS LP

Contact—(713) 585-2900
Investors—Steve Bender
Media—L. Benjamin Ederington

Westlake Chemical Partners LP Announces Fourth Quarter and Full Year 2024 Results
•Declared quarterly distribution of $0.4714 per unit; 42nd consecutive quarterly distribution
HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership in the fourth quarter of 2024 of $15.0 million, or $0.43 per limited partner unit, which was relatively in line with fourth quarter 2023 net income of $14.3 million. Cash flows from operating activities in the fourth quarter of 2024 were $132.5 million, an increase of $24.8 million compared to fourth quarter 2023 cash flows from operating activities of $107.7 million, due to higher net income and more favorable working capital changes. For the three months ended December 31, 2024, MLP distributable cash flow was $15.0 million, a decrease of $1.4 million compared to fourth quarter 2023 MLP distributable cash flow of $16.4 million. The decrease in MLP distributable cash flow was primarily due to higher turnaround reserve contributions and maintenance capital contributions to support the planned Petro 1 turnaround.
Fourth quarter 2024 net income attributable to the Partnership of $15.0 million decreased by $3.1 million compared to third quarter 2024 net income of $18.1 million, primarily due to the impact of excess quantities on OpCo's ethylene sales price to Westlake in the fourth quarter of 2024, which was related to the decision to push the Petro 1 turnaround to 2025. The excess quantities impact on fourth quarter 2024 sales price, in and of itself, had no effect on full year 2024 net income, MLP distributable cash flow or coverage ratio. Fourth quarter 2024 cash flows from operating activities of $132.5 million increased by $6.4 million compared to third quarter 2024 cash flows from operating activities of $126.1 million primarily due to more favorable working capital changes. Fourth quarter 2024 MLP distributable cash flow of $15.0 million decreased by $2.9 million compared to third quarter 2024 MLP distributable cash flow of $17.9 million, primarily due to lower OpCo net income.
For the full year 2024, net income attributable to the Partnership of $62.4 million, or $1.77 per limited partner unit, increased by $8.1 million compared to full year 2023 net income attributable to the Partnership of $54.3 million. The increase in net income attributable to the Partnership was primarily due to higher third-party ethylene sales prices and margins. Cash flows from operating activities for the full year 2024 were $485.0 million, an increase of $33.0 million compared to the full year 2023 cash flows from operating activities of $452.0 million. This increase in cash flows from operating activities was primarily due to higher net income. For the year ended December 31, 2024, MLP distributable cash flow was $66.9 million, an increase of $4.3 million compared to MLP distributable cash flow of $62.6 million for the year ended December 31, 2023.
"The Partnership performed well in 2024 as we exceeded our annual production plan, in part due to the decision to defer the planned turnaround at our Petro 1 ethylene unit to 2025. By postponing the Petro 1 turnaround we were able to better capture attractive third-party ethylene prices and margins in the second half of 2024, which supported an improvement in the Partnership's distributable cash flow and coverage ratio for the full year 2024," said Jean-Marc Gilson, President and Chief Executive Officer. "At the end of January 2025, we began our planned maintenance turnaround at our Petro 1 ethylene unit, which is expected to last approximately 60 days. As is typically the case during turnaround years, the lost production during the Petro 1 turnaround may cause the Partnership's coverage ratio to dip below 1.00x this year. As has been the case in previous turnaround years when the Partnership's coverage ratio dipped below 1.00x, we estimate that the Partnership will have ample cash and operating surplus to fund distributions in excess of distributable cash flow in 2025. Looking beyond 2025, we believe recent improvement in third-party ethylene prices and margins should position the Partnership for improved cash flows once production returns to expected levels."
On January 27, 2025, the Partnership announced that the Board of Directors of Westlake Chemical Partners GP LLC had approved a quarterly distribution for the fourth quarter of 2024 of $0.4714 per unit to be payable on February 25, 2025 to unitholders of record as of February 7, 2025, representing the 42nd consecutive quarterly distribution to the Partnership's unitholders. MLP distributable cash flow provided trailing twelve-month coverage of 1.01x the declared distributions for the fourth quarter of 2024, which was a decrease from the trailing twelve-month coverage ratio of 1.03x at the end of the third quarter of 2024.
i

OpCo's Ethylene Sales Agreement with Westlake is designed to provide for stable and predictable cash flows. The agreement provides that 95% of OpCo's ethylene production is sold to Westlake for a cash margin of $0.10 per pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures.

The statements in this release and the related teleconference relating to matters that are not historical facts, such as those with respect to the timing and results of our turnaround activities, including the Petro 1 turnaround, our future coverage ratio, our ability to fund distributions in excess of distributable cash flow, our outlook for third-party ethylene margins, our expectations regarding future interest rates, the ability to deliver value and returns to unitholders, our outlook for improved cash flows, and the nature of the sales agreement with Westlake, are forward-looking statements. These forward-looking statements are subject to significant risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to, pandemic infectious diseases and the response thereto; operating difficulties; the volume of ethylene that we are able to sell; the price at which we are able to sell ethylene; changes in the price and availability of feedstocks; changes in prevailing economic conditions; actions and commitments of Westlake Corporation; actions of third parties; inclement or hazardous weather conditions, including flooding, and the physical impacts of climate change; environmental hazards; changes in laws and regulations (or the interpretation thereof); inability to acquire or maintain necessary permits; inability to obtain necessary production equipment or replacement parts; technical difficulties or failures; labor disputes; difficulty collecting receivables; inability of our customers to take delivery; fires, explosions or other industrial accidents; our ability to borrow funds and access capital markets; and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to the Partnership's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC in February 2024, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which was filed with the SEC in November 2024.
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of the Partnership's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Use of Non-GAAP Financial Measures
This release makes reference to certain "non-GAAP" financial measures, such as MLP distributable cash flow and EBITDA. For this purpose, a non-GAAP financial measure is generally defined by the Securities and Exchange Commission ("SEC") as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that (1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the registrant; or (2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. We report our financial results in accordance with U.S. GAAP, but believe that certain non-GAAP financial measures, such as MLP distributable cash flow and EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. We define MLP distributable cash flow as distributable cash flow less distributable cash flow attributable to Westlake Corporation's noncontrolling interest in OpCo and distributions attributable to the incentive distribution rights holder. MLP distributable cash flow does not reflect changes in working capital balances. We define EBITDA as net income before interest expense, income taxes, depreciation and amortization. MLP distributable cash flow and EBITDA are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess our operating performance as compared to other publicly traded partnerships, our ability to incur and service debt and fund capital expenditures and the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. Reconciliations of MLP distributable cash flow to net income and to net cash provided by operating activities and of EBITDA to net income, income from operations and net cash provided by operating activities can be found in the financial schedules at the end of this press release.
ii

Westlake Chemical Partners LP
Westlake Chemical Partners is a limited partnership formed by Westlake Corporation to operate, acquire and develop ethylene production facilities and other qualified assets. Headquartered in Houston, the Partnership owns a 22.8% interest in Westlake Chemical OpCo LP. Westlake Chemical OpCo LP's assets consist of three ethylene production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, and an ethylene pipeline. For more information about Westlake Chemical Partners LP, please visit http://www.wlkpartners.com.
Westlake Chemical Partners LP Conference Call Information:
A conference call to discuss Westlake Chemical Partners' fourth quarter and full year 2024 results will be held Monday, February 24th, 2025 at 1:00 PM Eastern Time (12:00 PM Central Time). To access the conference call, please register at: https://register.vevent.com/register/BI294ab16856704d199e4792cc3d8bb4b0. A dial-in will be provided upon registration.
The conference call will also be available via webcast at: https://edge.media-server.com/mmc/p/s2462hyq and the earnings release can be obtained via the Partnership web page at: https://investors.wlkpartners.com/corporate-profile/default.aspx.
iii


WESTLAKE CHEMICAL PARTNERS LP ("WESTLAKE PARTNERS")
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
(In thousands of dollars, except per unit data)
Revenue
Net sales—Westlake Corporation ("Westlake")$260,266 $255,306 $950,801 $1,026,655 
Net co-products, ethylene and other sales—third parties29,794 41,967 185,095 164,136 
Total net sales290,060 297,273 1,135,896 1,190,791 
Cost of sales191,476 196,590 716,957 803,332 
Gross profit98,584 100,683 418,939 387,459 
Selling, general and administrative expenses6,559 7,867 28,495 29,751 
Income from operations92,025 92,816 390,444 357,708 
Other income (expense)
Interest expense—Westlake(5,771)(6,632)(25,701)(26,501)
Other income, net1,335 1,079 5,251 4,232 
Income before income taxes87,589 87,263 369,994 335,439 
Provision for income taxes202 206 835 813 
Net income87,387 87,057 369,159 334,626 
Less: Net income attributable to noncontrolling interest in Westlake Chemical OpCo LP ("OpCo")
72,391 72,758 306,767 280,343 
Net income attributable to Westlake Partners$14,996 $14,299 $62,392 $54,283 
Net income per limited partner unit attributable to Westlake Partners (basic and diluted)
Common units$0.43 $0.41 $1.77 $1.54 
Distributions declared per unit$0.4714 $0.4714 $1.8856 $1.8856 
MLP distributable cash flow$14,958 $16,418 $66,864 $62,574 
Distributions declared
Limited partner units—publicly and privately held$9,954 $9,949 $39,809 $39,790 
Limited partner units—Westlake6,657 6,658 26,628 26,631 
Total distributions declared$16,611 $16,607 $66,437 $66,421 
EBITDA$120,838 $122,196 $507,594 $472,143 
iv


WESTLAKE CHEMICAL PARTNERS LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
20242023
(In thousands of dollars)
ASSETS
Current assets
Cash and cash equivalents$58,316 $58,619 
Receivable under the Investment Management Agreement—Westlake134,557 94,444 
Accounts receivable, net—Westlake31,975 49,565 
Accounts receivable, net—third parties11,576 18,701 
Inventories4,058 4,432 
Prepaid expenses and other current assets444 442 
Total current assets240,926 226,203 
Property, plant and equipment, net903,588 943,843 
Other assets, net143,442 146,796 
Total assets$1,287,956 $1,316,842 
LIABILITIES AND EQUITY
Current liabilities (accounts payable and accrued and other liabilities)$55,372 $56,335 
Long-term debt payable to Westlake399,674 399,674 
Other liabilities3,596 4,583 
Total liabilities458,642 460,592 
Common unitholders—publicly and privately held471,328 473,513 
Common unitholder—Westlake47,373 48,993 
General partner—Westlake(242,572)(242,572)
Total Westlake Partners partners' capital276,129 279,934 
Noncontrolling interest in OpCo553,185 576,316 
Total equity829,314 856,250 
Total liabilities and equity$1,287,956 $1,316,842 
v


WESTLAKE CHEMICAL PARTNERS LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Twelve Months Ended December 31,
20242023
(In thousands of dollars)
Cash flows from operating activities
Net income$369,159 $334,626 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization111,899 110,203 
Net loss on disposition and other2,163 4,906 
Other balance sheet changes1,780 2,264 
Net cash provided by operating activities485,001 451,999 
Cash flows from investing activities
Additions to property, plant and equipment(48,971)(46,821)
Investments with Westlake under the Investment Management Agreement(40,000)(174,116)
Maturities of investments with Westlake under the Investment Management Agreement— 145,000 
Net cash used for investing activities(88,971)(75,937)
Cash flows from financing activities
Proceeds from debt payable to Westlake219,000 209,250 
Repayment of debt payable to Westlake(219,000)(209,250)
Distributions to noncontrolling interest retained in OpCo by Westlake(329,898)(315,805)
Distributions to unitholders(66,435)(66,420)
Net cash used for financing activities(396,333)(382,225)
Net decrease in cash and cash equivalents
(303)(6,163)
Cash and cash equivalents at beginning of the year58,619 64,782 
Cash and cash equivalents at end of the year$58,316 $58,619 

vi


WESTLAKE CHEMICAL PARTNERS LP
RECONCILIATION OF MLP DISTRIBUTABLE CASH FLOW TO NET INCOME
AND NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
Three Months Ended September 30,Three Months Ended December 31,Twelve Months Ended December 31,
20242024202320242023
(In thousands of dollars)
Net cash provided by operating activities
$126,071 $132,469 $107,671 $485,001 $451,999 
Changes in operating assets and liabilities and other
(21,971)(45,082)(20,614)(115,842)(117,373)
Net income104,100 87,387 87,057 369,159 334,626 
Add:
Depreciation, amortization and disposition of property, plant and equipment
28,528 27,582 28,796 114,244 115,136 
Less:
Contribution to turnaround reserves
(11,903)(11,829)(7,682)(43,880)(29,520)
Maintenance capital expenditures(17,753)(15,923)(11,805)(50,731)(49,212)
Distributable cash flow attributable to noncontrolling interest in OpCo
(85,093)(72,259)(79,948)(321,928)(308,456)
MLP distributable cash flow$17,879 $14,958 $16,418 $66,864 $62,574 

vii

WESTLAKE CHEMICAL PARTNERS LP
RECONCILIATION OF EBITDA TO NET INCOME, INCOME FROM OPERATIONS AND
NET CASH PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
Three Months Ended September 30,Three Months Ended December 31,Twelve Months Ended December 31,
20242024202320242023
(In thousands of dollars)
Net cash provided by operating activities
$126,071 $132,469 $107,671 $485,001 $451,999 
Changes in operating assets and liabilities and other
(21,971)(45,082)(20,614)(115,842)(117,373)
Net income104,100 87,387 87,057 369,159 334,626 
Less:
Other income, net1,325 1,335 1,079 5,251 4,232 
Interest expense—Westlake(6,698)(5,771)(6,632)(25,701)(26,501)
Provision for income taxes(216)(202)(206)(835)(813)
Income from operations109,689 92,025 92,816 390,444 357,708 
Add:
Depreciation and amortization28,112 27,478 28,301 111,899 110,203 
Other income, net1,325 1,335 1,079 5,251 4,232 
EBITDA$139,126 $120,838 $122,196 $507,594 $472,143 

viii
v3.25.0.1
Cover Page
Feb. 24, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 24, 2025
Entity Registrant Name Westlake Chemical Partners LP
Entity Incorporation, State or Country Code DE
Entity File Number 001-36567
Entity Tax Identification Number 32-0436529
Entity Address, Address Line One 2801 Post Oak Boulevard,
Entity Address, Address Line Two Suite 600
Entity Address, City or Town Houston,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77056
City Area Code 713
Local Phone Number 585-2900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common units representing limited partnership interests
Trading Symbol WLKP
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001604665
Amendment Flag false
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