Westlake Chemical Partners LP Acquires Additional Interest in Westlake Chemical OpCo

HOUSTON–(BUSINESS WIRE)–Westlake Chemical Partners LP (NYSE: WLKP) (the “Partnership”) today
announced that it has agreed to acquire an additional 5.0% limited
partner interest in Westlake Chemical OpCo LP (“OpCo”) for approximately
$229.2 million. The transaction, which is expected to close in
connection with the concurrently announced equity offering by the
Partnership, is expected to be immediately accretive to the
Partnership’s MLP distributable cash flow.

Consideration for the acquisition is expected to be funded with
borrowings under the Partnership’s revolving credit agreement (the “MLP
Revolver”) and proceeds from the concurrently announced equity offering
by the Partnership. This transaction will increase the Partnership’s
limited partner interest in OpCo from approximately 13.3% to
approximately 18.3% and will represent the second purchase of additional
interests in OpCo by the Partnership since its initial public offering.
OpCo’s assets are comprised of three ethylene production facilities,
which primarily convert ethane into ethylene and have an aggregate
annual capacity of approximately 3.7 billion pounds, and a 200-mile
ethylene pipeline. OpCo sells approximately 95% of its ethylene
production to Westlake Chemical Corporation under a long-term supply
agreement, which provides for a stable $0.10 margin per pound. OpCo
intends to use the proceeds it receives in connection with this
transaction to repay borrowings under its intercompany debt agreements
with Westlake Chemical Corporation.

“This transaction demonstrates the sustainability of our strategy to
achieve annualized low-double-digit growth in distributions,” said the
Partnership’s President and Chief Executive Officer, Albert Chao. “OpCo
is unique in the MLP universe given the long-term and stable nature of
its key contracts and the structure of its business. The acquisition of
this additional interest in OpCo, which provides a high-quality, stable,
fee-based earnings stream, represents just one of a number of levers we
can use to grow our distributions over time. In addition to purchasing
increased interests in OpCo, the Partnership can pursue organic growth
opportunities such as capacity expansions in OpCo’s ethylene production
facilities and acquisitions of other qualified assets from third
parties.”

The terms of the acquisition were approved by a Conflicts Committee,
which is comprised entirely of independent directors of the board of
directors of Westlake Chemical Partners GP LLC, the general partner of
the Partnership. This committee was advised by Jefferies LLC as to
financial matters and Akin Gump Strauss Hauer & Feld LLP as to legal
matters.

Westlake Chemical Corporation’s legal counsel was Vinson & Elkins LLP.

The statements in this release that are not historical facts, but
forward-looking statements, including the impact of the described
acquisition on the Partnership’s cash available for distribution,
availability of funds and the expectation of long-term distribution
growth, could be adversely affected by, among other things, 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 of Westlake Chemical Corporation or other 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 for the projections
contained herein, please refer to the Partnership’s Annual Report on
Form 10-K for the year ended December 31, 2016.

Westlake Chemical Partners LP

Westlake Chemical Partners is a limited partnership formed by Westlake
Chemical Corporation to operate, acquire and develop ethylene production
facilities and other qualified assets. Headquartered in Houston, Texas,
the Partnership, following the closing of the acquisition described
above, is expected to own an approximately 18.3% limited partner
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.

Contacts

Westlake Chemical Partners LP
Media Relations
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Benjamin Ederington, 713.585.2900
or
Investor
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Steve Bender, 713.585.2900