Westlake Chemical Partners LP Announces Fourth Quarter 2024 Distribution

Rhea-AI Summary

Westlake Chemical Partners LP (NYSE:WLKP) has announced its fourth quarter 2024 distribution of $0.4714 per unit, marking its 42nd quarterly distribution since its IPO. The distribution will be paid on February 25, 2025, to unitholders of record as of February 7, 2025.

The announcement includes a qualified notice under Treasury Regulation Section 1.1446-4(b), stating that 100% of distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate, as they are considered income effectively connected with U.S. trade or business.

Positive

• Maintains consistent quarterly distribution pattern, demonstrating stability
• Continues 42-quarter track record of distributions since IPO

Negative

• None.

Insights

Financial Analyst

Westlake Chemical Partners LP's Q4 2024 distribution announcement of $0.4714 per unit represents a continuation of its stable distribution policy. On an annualized basis, this translates to $1.8856 per unit, yielding approximately 7.7% at current unit prices. This yield positions WLKP competitively within the MLP sector, particularly among chemical-focused partnerships.

The consistency in quarterly distributions, now reaching its 42nd payment since IPO, demonstrates the Partnership's resilient business model and strong cash flow generation capabilities. The stable nature of these payments is underpinned by WLKP's fee-based agreements with its parent company, Westlake , which provides significant cash flow visibility and reduced commodity price exposure.

The tax notice included in the announcement carries particular significance for international investors. The classification of 100% of distributions as effectively connected income (ECI) means non-U.S. investors face withholding at the highest applicable tax rate. This tax treatment differs from many other MLPs where only a portion might be subject to such withholding, making WLKP's tax structure an important consideration for international portfolio allocation decisions.

Looking at distribution coverage and sustainability, WLKP's ethylene production facilities continue to maintain high utilization rates, supporting the Partnership's ability to maintain its current distribution level. The predictable nature of the Partnership's cash flows, backed by long-term contracts, provides a solid foundation for distribution sustainability in the current market environment.

• $0.4714 per unit distribution declared payable on February 25, 2025

HOUSTON--(BUSINESS WIRE)-- The Board of Directors of Westlake Chemical Partners GP LLC, the general partner of Westlake Chemical Partners LP (the "Partnership") (NYSE:WLKP), has declared a distribution of $0.4714 per unit. This is the 42nd quarterly distribution announced by the Partnership since its initial public offering. The distribution will be payable on February 25, 2025, to unit holders of record on February 7, 2025.

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.

About 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 include three facilities in Calvert City, Kentucky, and Lake Charles, Louisiana which process ethane and propane into ethylene, and an ethylene pipeline. For more information about Westlake Chemical Partners LP, please visit http://www.wlkpartners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127547140/en/

Media Inquiries:

Westlake Corp.

Ben Ederington, 1-713-585-2900

or

Investor Inquiries:

Westlake Corp.

Steve Bender, 1-713-585-2900

Source: Westlake Chemical Partners

FAQ

What is the Q4 2024 distribution amount for Westlake Chemical Partners (WLKP)?

Westlake Chemical Partners (WLKP) declared a distribution of $0.4714 per unit for the fourth quarter of 2024.

When is the WLKP Q4 2024 distribution payable?

The distribution is payable on February 25, 2025, to unitholders of record as of February 7, 2025.

How many consecutive quarterly distributions has WLKP made since its IPO?

This marks the 42nd quarterly distribution announced by Westlake Chemical Partners since its initial public offering.

What are the tax implications for non-U.S. investors holding WLKP units?

100% of distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate, as they are considered effectively connected with U.S. trade or business.