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Westlake Chemical Partners LP Announces Second Quarter 2024 Results

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Westlake Chemical Partners LP (NYSE: WLKP) reported Q2 2024 results with net income of $14.4 million, or $0.41 per unit, up from $11.9 million in Q2 2023. Cash flows from operating activities increased to $121.9 million, and MLP distributable cash flow rose to $17.1 million. The company declared a quarterly distribution of $0.4714 per unit, marking its 40th consecutive quarterly distribution.

Key highlights include:

  • Improved third-party ethylene sales prices and margins
  • Upcoming planned maintenance turnaround at Petro 1 ethylene unit in Q3
  • Trailing twelve-month distribution coverage ratio of 0.96x
  • Appointment of Jean-Marc Gilson as President, CEO, and director of the general partner

Westlake Chemical Partners LP (NYSE: WLKP) ha riportato i risultati del Q2 2024 con un utile netto di 14,4 milioni di dollari, pari a 0,41 dollari per unità, in aumento rispetto agli 11,9 milioni di dollari del Q2 2023. I flussi di cassa dalle attività operative sono aumentati a 121,9 milioni di dollari e il flusso di cassa distribuibile della MLP è salito a 17,1 milioni di dollari. L'azienda ha dichiarato una distribuzione trimestrale di 0,4714 dollari per unità, segnando la sua 40ª distribuzione trimestrale consecutiva.

I punti salienti includono:

  • Aumento dei prezzi di vendita dell'etilene di terze parti e dei margini
  • Prossimo intervento programmato di manutenzione all'unità di etilene Petro 1 nel Q3
  • Rapporto di copertura della distribuzione degli ultimi dodici mesi di 0,96x
  • Nomina di Jean-Marc Gilson come Presidente, CEO e direttore del partner generale

Westlake Chemical Partners LP (NYSE: WLKP) reportó los resultados del Q2 2024 con un ingreso neto de 14.4 millones de dólares, o 0.41 dólares por unidad, un aumento desde los 11.9 millones de dólares en el Q2 2023. Los flujos de efectivo de las actividades operativas aumentaron a 121.9 millones de dólares, y el flujo de efectivo distribuible de la MLP se elevó a 17.1 millones de dólares. La empresa declaró una distribución trimestral de 0.4714 dólares por unidad, marcando su 40ª distribución trimestral consecutiva.

Los puntos destacados incluyen:

  • Mejora en los precios de venta de etileno de terceros y márgenes
  • Próximo mantenimiento programado en la unidad de etileno Petro 1 en el Q3
  • Ratio de cobertura de distribución de los últimos doce meses de 0.96x
  • Nombramiento de Jean-Marc Gilson como Presidente, CEO y director del socio general

웨스트레이크 케미칼 파트너스 LP (NYSE: WLKP)는 2024년 2분기 결과를 발표하였으며, 순이익은 1,440만 달러로, 단위당 0.41달러를 기록했으며, 2023년 2분기의 1,190만 달러에서 증가했습니다. 운영 활동으로부터의 현금 흐름은 1억 2,190만 달러로 증가하였으며 MLP의 배당 가능한 현금 흐름은 1,710만 달러로 상승했습니다. 회사는 단위당 0.4714달러의 분기 배당금을 선언하였으며, 이는 40번째 연속 분기 배당금을 기록한 것입니다.

주요 하이라이트에는 다음과 같은 내용이 포함됩니다:

  • 제3자 에틸렌 판매 가격과 마진 개선
  • 3분기에 예정된 페트로 1 에틸렌 유닛의 유지보수 전환
  • 최근 12개월 배당 커버리지 비율 0.96x
  • 장 이사 대신의 장-마르크 길송의 대통령, CEO 및 일반 파트너 이사로의 임명

Westlake Chemical Partners LP (NYSE: WLKP) a publié les résultats du Q2 2024, avec un revenu net de 14,4 millions de dollars, soit 0,41 dollar par unité, en hausse par rapport aux 11,9 millions de dollars du Q2 2023. Les flux de trésorerie provenant des activités d'exploitation ont augmenté à 121,9 millions de dollars, et le flux de trésorerie distribuable de la MLP a grimpé à 17,1 millions de dollars. L'entreprise a déclaré une distribution trimestrielle de 0,4714 dollar par unité, marquant sa 40e distribution trimestrielle consécutive.

Les faits marquants incluent :

  • Amélioration des prix de vente et des marges de l'éthylène de tiers
  • Prochain entretien planifié de l'unité d'éthylène Petro 1 au Q3
  • Ratio de couverture de distribution des douze derniers mois de 0,96x
  • Nommer Jean-Marc Gilson en tant que Président, CEO et directeur du partenaire général

Westlake Chemical Partners LP (NYSE: WLKP) berichtete über die Q2 2024 Ergebnisse mit einem Nettogewinn von 14,4 Millionen Dollar oder 0,41 Dollar pro Einheit, was einem Anstieg von 11,9 Millionen Dollar im Q2 2023 entspricht. Die Cashflows aus operativen Tätigkeiten erhöhten sich auf 121,9 Millionen Dollar, und der verfügbare Cashflow der MLP stieg auf 17,1 Millionen Dollar. Das Unternehmen erklärte eine vierteljährliche Ausschüttung von 0,4714 Dollar pro Einheit, was die 40. aufeinanderfolgende vierteljährliche Ausschüttung markiert.

Die wichtigsten Highlights umfassen:

  • Verbesserte Verkaufspreise und Margen für Ethylen von Dritten
  • Geplante Wartungsstilllegung der Petro 1-Ethylen-Anlage im Q3
  • Deckungsquote der Ausschüttung der letzten zwölf Monate von 0,96x
  • Ernennung von Jean-Marc Gilson zum Präsidenten, CEO und Direktor des Generalpartners
Positive
  • Net income increased by $2.5 million compared to Q2 2023
  • Cash flows from operating activities increased by $23.4 million year-over-year
  • MLP distributable cash flow increased by $2.1 million compared to Q2 2023
  • Improved third-party ethylene sales prices and margins
  • Declared 40th consecutive quarterly distribution of $0.4714 per unit
Negative
  • Net income decreased by $0.4 million compared to Q1 2024
  • Planned maintenance turnaround at Petro 1 ethylene unit may temporarily impact earnings and cash flows
  • Trailing twelve-month distribution coverage ratio of 0.96x is below 1.0x

Insights

Westlake Chemical Partners LP's Q2 2024 results show mixed performance. Net income of $14.4 million ($0.41 per unit) increased 21% year-over-year but decreased 2.7% sequentially. Cash flows from operations surged to $121.9 million, up 23.8% YoY and 16.5% QoQ, indicating improved operational efficiency.

The MLP distributable cash flow of $17.1 million grew 14% YoY and 1.2% QoQ, primarily due to higher margins on third-party ethylene sales. The trailing twelve-month coverage ratio improved to 0.96x from 0.93x in Q1, showing better distribution sustainability.

Investors should note the upcoming Petro 1 ethylene unit turnaround in Q3, which may temporarily impact earnings. However, the improved outlook for third-party ethylene sales prices and margins, coupled with the stable Westlake agreement, should provide a buffer against potential volatility.

The Partnership's Q2 performance reflects resilience in the ethylene market. The increase in third-party ethylene sales prices and margins is a positive indicator for the industry, suggesting improved demand or supply constraints. This trend, if sustained, could benefit Westlake Chemical Partners in the coming quarters.

The planned maintenance turnaround at the Petro 1 ethylene unit is a critical event to monitor. While it will temporarily impact production, such maintenance is essential for long-term operational efficiency and safety. The company's proactive communication about this event demonstrates transparency and good operational planning.

The ethylene sales agreement with Westlake, providing a fixed $0.10 per pound margin on 95% of production, offers significant downside protection. This unique arrangement differentiates WLKP from other chemical companies, providing more stable cash flows in a cyclical industry.

The recent appointment of Jean-Marc Gilson as President, CEO and director of the general partner signals a significant leadership transition. Such changes can bring fresh perspectives and strategies, potentially impacting the Partnership's future direction. Investors should closely monitor any shifts in strategic focus or operational approach under the new leadership.

The Partnership's consistent quarterly distribution history, now at its 40th consecutive payout, demonstrates a strong commitment to shareholder returns. However, the coverage ratio of 0.96x, while improved, remains below 1.0, indicating that distributions slightly exceed distributable cash flow. This warrants attention, as sustained ratios below 1.0 could raise questions about long-term distribution sustainability.

The structure of the Ethylene Sales Agreement with Westlake provides predictable cash flows but also creates a significant dependency. While this arrangement offers stability, it's important for investors to understand the potential risks associated with such a concentrated business relationship.

  • Declared quarterly distribution of $0.4714 per unit; 40th consecutive quarterly distribution

HOUSTON--(BUSINESS WIRE)-- Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership in the second quarter of 2024 of $14.4 million, or $0.41 per limited partner unit, an increase of $2.5 million compared to the second quarter 2023 net income of $11.9 million. Cash flows from operating activities in the second quarter of 2024 were $121.9 million, an increase of $23.4 million compared to second quarter 2023 cash flows from operating activities of $98.5 million, due to higher net income. For the three months ended June 30, 2024, MLP distributable cash flow was $17.1 million, an increase of $2.1 million compared to second quarter 2023 MLP distributable cash flow of $15.0 million. The increase in MLP distributable cash flow and associated trailing twelve-month coverage ratio was primarily due to higher production and sales volume due to the Calvert City turnaround in the second quarter of 2023.

Second quarter 2024 net income attributable to the Partnership of $14.4 million decreased by $0.4 million compared to first quarter 2024 net income of $14.8 million, primarily due to higher selling, general and administrative expenses. Second quarter 2024 cash flows from operating activities of $121.9 million increased by $17.3 million compared to first quarter 2024 cash flows from operating activities of $104.6 million due to more favorable working capital changes. Second quarter 2024 MLP distributable cash flow of $17.1 million increased by $0.2 million compared to first quarter 2024 MLP distributable cash flow of $16.9 million, primarily due to higher margins on third-party ethylene sales.

"We are pleased with the Partnership's performance for the second quarter of 2024. During the second quarter, we benefitted from improved third-party ethylene sales prices and margins, which supported the growth in our MLP distributable cash flow. Last month, Westlake Chemical Partners GP LLC, the general partner of the Partnership, implemented a succession plan that included the appointment of Jean-Marc Gilson as President, CEO and director of our general partner. We are pleased to welcome Jean-Marc to the Partnership as he continues implementing our strategy of long-term value creation," said Albert Chao, Executive Chairman. "Looking ahead to the second half of 2024, preparations are well underway for our planned maintenance turnaround at our Petro 1 ethylene unit, which is scheduled to begin later in the third quarter. While the Petro 1 turnaround will have a temporary impact on our earnings and cash flows, our outlook for third-party ethylene sales prices and margins has improved and OpCo's ethylene sales agreement with Westlake will continue to support our earnings and cash flows."

On July 30, 2024, the Partnership announced that the Board of Directors of Westlake Chemical Partners GP LLC had approved a quarterly distribution for the second quarter of 2024 of $0.4714 per unit to be payable on August 27, 2024 to unitholders of record as of August 12, 2024, representing the 40th consecutive quarterly distribution to our unitholders. MLP distributable cash flow provided trailing twelve-month coverage of 0.96x the declared distributions for the second quarter of 2024, which was higher than the trailing twelve-month coverage ratio of 0.93x at the end of the first quarter of 2024. Since our IPO in July of 2014 our cumulative coverage ratio is 1.08x.

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 of the anticipated Petro 1 turnaround, results of our turnaround reserves and activities, our future coverage ratio, our outlook for third-party ethylene margins, our expectations regarding feedstock and energy costs, the ability to deliver value, returns, predictable cash flows and distributions to unitholders, the expectation that strong distributions will continue, 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, 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; the timing and results of capital expenditures, including turnaround activities; 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 the Partnership's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which was filed with the SEC in May 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, coverage ratio 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, coverage ratio 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, coverage ratio 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.

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' second quarter 2024 results will be held Tuesday, August 6th, 2024 at 1:00 PM Eastern Time (12:00 PM Central Time). To access the conference call, please register at: https://register.vevent.com/register/BI05d1ab2ca68249b69a922d0eae472d31. 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/qjg77gba and the earnings release can be obtained via the Partnership web page at: https://investors.wlkpartners.com/corporate-profile/default.aspx.

WESTLAKE CHEMICAL PARTNERS LP ("WESTLAKE PARTNERS") 

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(In thousands of dollars, except per unit data)

Revenue

 

 

 

 

 

 

 

 

Net sales—Westlake Corporation ("Westlake")

 

$

239,527

 

 

$

224,575

 

 

$

474,736

 

 

$

482,046

 

Net co-products, ethylene and other sales—third parties

 

 

44,641

 

 

 

39,602

 

 

 

94,105

 

 

 

89,808

 

Total net sales

 

 

284,168

 

 

 

264,177

 

 

 

568,841

 

 

 

571,854

 

Cost of sales

 

 

182,936

 

 

 

176,455

 

 

 

365,429

 

 

 

378,059

 

Gross profit

 

 

101,232

 

 

 

87,722

 

 

 

203,412

 

 

 

193,795

 

Selling, general and administrative expenses

 

 

7,605

 

 

 

7,229

 

 

 

14,682

 

 

 

15,143

 

Income from operations

 

 

93,627

 

 

 

80,493

 

 

 

188,730

 

 

 

178,652

 

Other income (expense)

 

 

 

 

 

 

 

 

Interest expense—Westlake

 

 

(6,651

)

 

 

(6,117

)

 

 

(13,232

)

 

 

(13,432

)

Other income, net

 

 

1,257

 

 

 

1,061

 

 

 

2,591

 

 

 

1,881

 

Income before income taxes

 

 

88,233

 

 

 

75,437

 

 

 

178,089

 

 

 

167,101

 

Provision for income taxes

 

 

207

 

 

 

173

 

 

 

417

 

 

 

385

 

Net income

 

 

88,026

 

 

 

75,264

 

 

 

177,672

 

 

 

166,716

 

Less: Net income attributable to noncontrolling interest in Westlake Chemical OpCo LP ("OpCo")

 

 

73,599

 

 

 

63,378

 

 

 

148,412

 

 

 

139,938

 

Net income attributable to Westlake Partners

 

$

14,427

 

 

$

11,886

 

 

$

29,260

 

 

$

26,778

 

 

 

 

 

 

 

 

 

 

Net income per limited partner unit attributable to Westlake Partners (basic and diluted)

 

 

 

 

 

 

 

 

Common units

 

$

0.41

 

 

$

0.34

 

 

$

0.83

 

 

$

0.76

 

 

 

 

 

 

 

 

 

 

Distributions declared per unit

 

$

0.4714

 

 

$

0.4714

 

 

$

0.9428

 

 

$

0.9428

 

 

 

 

 

 

 

 

 

 

MLP distributable cash flow

 

$

17,135

 

 

$

14,985

 

 

$

34,027

 

 

$

32,536

 

 

 

 

 

 

 

 

 

 

Distributions declared

 

 

 

 

 

 

 

 

Limited partner units—publicly and privately held

 

$

9,951

 

 

$

9,946

 

 

$

19,901

 

 

$

19,892

 

Limited partner units—Westlake

 

 

6,657

 

 

 

6,658

 

 

 

13,314

 

 

 

13,315

 

Total distributions declared

 

$

16,608

 

 

$

16,604

 

 

$

33,215

 

 

$

33,207

 

EBITDA

 

$

123,199

 

 

$

108,594

 

 

$

247,630

 

 

$

234,209

 

WESTLAKE CHEMICAL PARTNERS LP 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

June 30,
2024

 

December 31,
2023

 

 

(In thousands of dollars)

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

65,999

 

 

$

58,619

 

Receivable under the Investment Management Agreement—Westlake

 

 

94,478

 

 

 

94,444

 

Accounts receivable, net—Westlake

 

 

39,090

 

 

 

49,565

 

Accounts receivable, net—third parties

 

 

27,128

 

 

 

18,701

 

Inventories

 

 

4,487

 

 

 

4,432

 

Prepaid expenses and other current assets

 

 

944

 

 

 

442

 

Total current assets

 

 

232,126

 

 

 

226,203

 

Property, plant and equipment, net

 

 

912,752

 

 

 

943,843

 

Other assets, net

 

 

143,484

 

 

 

146,796

 

Total assets

 

$

1,288,362

 

 

$

1,316,842

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities (accounts payable and accrued and other liabilities)

 

$

49,607

 

 

$

56,335

 

Long-term debt payable to Westlake

 

 

399,674

 

 

 

399,674

 

Other liabilities

 

 

4,234

 

 

 

4,583

 

Total liabilities

 

 

453,515

 

 

 

460,592

 

Common unitholders—publicly and privately held

 

 

471,199

 

 

 

473,513

 

Common unitholder—Westlake

 

 

47,408

 

 

 

48,993

 

General partner—Westlake

 

 

(242,572

)

 

 

(242,572

)

Total Westlake Partners partners' capital

 

 

276,035

 

 

 

279,934

 

Noncontrolling interest in OpCo

 

 

558,812

 

 

 

576,316

 

Total equity

 

 

834,847

 

 

 

856,250

 

Total liabilities and equity

 

$

1,288,362

 

 

$

1,316,842

 

WESTLAKE CHEMICAL PARTNERS LP 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

(In thousands of dollars)

Cash flows from operating activities

 

 

 

 

Net income

 

$

177,672

 

 

$

166,716

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

Depreciation and amortization

 

 

56,309

 

 

 

53,676

 

Net loss on disposition and other

 

 

1,870

 

 

 

725

 

Other balance sheet changes

 

 

(9,390

)

 

 

22,286

 

Net cash provided by operating activities

 

 

226,461

 

 

 

243,403

 

Cash flows from investing activities

 

 

 

 

Additions to property, plant and equipment

 

 

(19,951

)

 

 

(17,169

)

Investments with Westlake under the Investment Management Agreement

 

 

 

 

 

(164,116

)

Maturities of investments with Westlake under the Investment Management Agreement

 

 

 

 

 

135,000

 

Net cash used for investing activities

 

 

(19,951

)

 

 

(46,285

)

Cash flows from financing activities

 

 

 

 

Proceeds from debt payable to Westlake

 

 

108,000

 

 

 

98,500

 

Repayment of debt payable to Westlake

 

 

(108,000

)

 

 

(98,500

)

Distributions to noncontrolling interest retained in OpCo by Westlake

 

 

(165,916

)

 

 

(169,259

)

Distributions to unitholders

 

 

(33,214

)

 

 

(33,207

)

Net cash used for financing activities

 

 

(199,130

)

 

 

(202,466

)

Net increase (decrease) in cash and cash equivalents

 

 

7,380

 

 

 

(5,348

)

Cash and cash equivalents at beginning of period

 

 

58,619

 

 

 

64,782

 

Cash and cash equivalents at end of period

 

$

65,999

 

 

$

59,434

 

WESTLAKE CHEMICAL PARTNERS LP 

RECONCILIATION OF MLP DISTRIBUTABLE CASH FLOW TO NET INCOME

AND NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

 

 

 

Three Months
Ended March 31,

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(In thousands of dollars)

Net cash provided by operating activities

 

$

104,565

 

 

$

121,896

 

 

$

98,543

 

 

$

226,461

 

 

$

243,403

 

Changes in operating assets and liabilities and other

 

 

(14,919

)

 

 

(33,870

)

 

 

(23,279

)

 

 

(48,789

)

 

 

(76,687

)

Net income

 

 

89,646

 

 

 

88,026

 

 

 

75,264

 

 

 

177,672

 

 

 

166,716

 

Add:

 

 

 

 

 

 

 

 

 

 

Depreciation, amortization and disposition of property, plant and equipment

 

 

28,265

 

 

 

29,869

 

 

 

27,095

 

 

 

58,134

 

 

 

54,098

 

Less:

 

 

 

 

 

 

 

 

 

 

Contribution to turnaround reserves

 

 

(11,476

)

 

 

(8,672

)

 

 

(6,967

)

 

 

(20,148

)

 

 

(14,273

)

Maintenance capital expenditures

 

 

(7,749

)

 

 

(9,306

)

 

 

(6,521

)

 

 

(17,055

)

 

 

(14,545

)

Distributable cash flow attributable to noncontrolling interest in OpCo

 

 

(81,794

)

 

 

(82,782

)

 

 

(73,886

)

 

 

(164,576

)

 

 

(159,460

)

MLP distributable cash flow

 

$

16,892

 

 

$

17,135

 

 

$

14,985

 

 

$

34,027

 

 

$

32,536

 

WESTLAKE CHEMICAL PARTNERS LP 

RECONCILIATION OF EBITDA TO NET INCOME, INCOME FROM OPERATIONS AND NET CASH

PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

 

 

 

Three Months
Ended March 31,

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(In thousands of dollars)

Net cash provided by operating activities

 

$

104,565

 

 

$

121,896

 

 

$

98,543

 

 

$

226,461

 

 

$

243,403

 

Changes in operating assets and liabilities and other

 

 

(14,919

)

 

 

(33,870

)

 

 

(23,279

)

 

 

(48,789

)

 

 

(76,687

)

Net income

 

 

89,646

 

 

 

88,026

 

 

 

75,264

 

 

 

177,672

 

 

 

166,716

 

Less:

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

1,334

 

 

 

1,257

 

 

 

1,061

 

 

 

2,591

 

 

 

1,881

 

Interest expense—Westlake

 

 

(6,581

)

 

 

(6,651

)

 

 

(6,117

)

 

 

(13,232

)

 

 

(13,432

)

Provision for income taxes

 

 

(210

)

 

 

(207

)

 

 

(173

)

 

 

(417

)

 

 

(385

)

Income from operations

 

 

95,103

 

 

 

93,627

 

 

 

80,493

 

 

 

188,730

 

 

 

178,652

 

Add:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

27,994

 

 

 

28,315

 

 

 

27,040

 

 

 

56,309

 

 

 

53,676

 

Other income, net

 

 

1,334

 

 

 

1,257

 

 

 

1,061

 

 

 

2,591

 

 

 

1,881

 

EBITDA

 

$

124,431

 

 

$

123,199

 

 

$

108,594

 

 

$

247,630

 

 

$

234,209

 

 

(713) 585-2900

Investors—Steve Bender

Media—L. Benjamin Ederington

Source: Westlake Chemical Partners

FAQ

What was Westlake Chemical Partners LP's (WLKP) net income for Q2 2024?

Westlake Chemical Partners LP (WLKP) reported a net income of $14.4 million, or $0.41 per partner unit, for Q2 2024.

How much was the quarterly distribution declared by WLKP for Q2 2024?

WLKP declared a quarterly distribution of $0.4714 per unit for Q2 2024, payable on August 27, 2024, to unitholders of record as of August 12, 2024.

What is the trailing twelve-month distribution coverage ratio for WLKP as of Q2 2024?

The trailing twelve-month distribution coverage ratio for WLKP was 0.96x as of Q2 2024, an improvement from 0.93x at the end of Q1 2024.

When is the planned maintenance turnaround for WLKP's Petro 1 ethylene unit scheduled?

The planned maintenance turnaround for WLKP's Petro 1 ethylene unit is scheduled to begin later in the third quarter of 2024.

WESTLAKE CHEMICAL PARTNERS LP

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