November 24, 2020

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Westlake Chemical Partners LP Announces First Quarter 2020 Results

Maintained quarterly distribution of $0.4714 per unit HOUSTON--(BUSINESS WIRE)--Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership of $17.7 million, or $0.50 per limited partner unit, for the three months ended March 31, 2020, an increase of $2.7 million compared to first quarter 2019 net income attributable to the Partnership of $15.0 million. The increase in net income attributable to the Partnership was primarily due to the increased production at Westlake Chemical OpCo LP ("OpCo") and higher third party sales margins. Cash flows from operating activities in the first quarter of 2020 were $111.0 million, a decrease of $2.5 million compared to first quarter 2019 cash flows from operating activities of $113.5 million. This decrease in cash flows from operating activities was primarily attributable to an increase in working capital. For the three months ended March 31, 2020, MLP distributable cash flow of $18.3 million increased by $0.7 million from first quarter 2019 MLP distributable cash flow of $17.6 million. First quarter 2020 net income attributable to the Partnership of $17.7 million increased by $0.3 million from fourth quarter 2019 net income attributable to the Partnership of $17.4 million. First quarter 2020 cash flows from operating activities of $111.0 million decreased by $4.7 million compared to fourth quarter 2019 cash flows from operating activities of $115.7 million, primarily due to an increase in working capital. First quarter 2020 MLP distributable cash flow of $18.3 million decreased by $0.5 million compared to fourth quarter 2019 MLP distributable cash flow of $18.8 million. "We are pleased with the Partnership's solid performance in the first quarter of 2020. The long-term ethylene sales agreement we have with Westlake Chemical provided reliable earnings and cash flows to the Partnership," said Albert Chao, President and Chief Executive Officer. "With the outbreak of COVID-19, our first priority is to ensure the health and safety of our employees around the world who continue to work diligently to serve our customers. The COVID-19 pandemic and the response thereto has impacted both equity and commodities markets as a whole. In these evolving market conditions, we maintained our current distribution and by doing so maintain our financial strength and flexibility. This measure allows us to preserve the inherent value of the Partnership and the significant opportunities available through our four levers of growth." On April 30, 2020, the Partnership announced that the Board of Directors of Westlake Chemical Partners GP LLC had approved a quarterly distribution for the first quarter of 2020 of $0.4714 per unit to be payable on May 26, 2020 to unitholders of record as of May 11, 2020. MLP distributable cash flow provided trailing twelve-month coverage of 1.13x the declared distributions for the first quarter of 2020. 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 resumption of distribution growth, inherent value of the Partnership and levers of growth 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, the COVID-19 pandemic 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 of Westlake Chemical 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, 2019, which was filed with the SEC in February 2020. 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 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. generally accepted accounting principles ("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'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. 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, 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' first quarter 2020 results will be held Monday, May 4, 2020 at 1:00 PM Eastern Time (12:00 AM Central Time). To access the conference call, dial (855) 765-5686 or (234) 386-2848 for international callers, approximately 10 minutes prior to the scheduled start time and reference passcode 647 07 89. A replay of the conference call will be available beginning two hours after its conclusion until 11:59 p.m. Eastern Time on Monday, May 11, 2020. To hear a replay, dial (855) 859-2056 or (404) 537-3406 for international callers. The replay passcode is 647 07 89. The conference call will also be available via webcast at: https://edge.media-server.com/mmc/p/pz3nynuo and the earnings release can be obtained via the Partnership web page at: http://investors.wlkpartners.com/CorporateProfile. WESTLAKE CHEMICAL PARTNERS LP ("WESTLAKE PARTNERS") CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 2020 2019 (In thousands of dollars, except per unit data) Revenue Net sales—Westlake Chemical Corporation ("Westlake") $ 214,828 $ 257,040 Net co-product, ethylene and other sales—third parties 35,721 42,046 Total net sales 250,549 299,086 Cost of sales 147,001 208,432 Gross profit 103,548 90,654 Selling, general and administrative expenses 6,196 6,973 Income from operations 97,352 83,681 Other income (expense) Interest expense—Westlake (3,950 ) (5,900 ) Other income, net 585 815 Income before income taxes 93,987 78,596 Income tax provision 217 200 Net income 93,770 78,396 Less: Net income attributable to noncontrolling interests in Westlake Chemical OpCo LP ("OpCo") 76,023 63,441 Net income attributable to Westlake Partners $ 17,747 $ 14,955 Net income per limited partners unit attributable to Westlake Partners (basic and diluted) Common units $ 0.50 $ 0.46 Distributions declared per unit $ 0.4714 $ 0.4452 MLP distributable cash flow $ 18,337 $ 17,555 Distributions declared Limited partner units—publicly and privately held $ 9,934 $ 9,379 Limited partner units—Westlake 6,657 6,287 Total distributions declared $ 16,591 $ 15,666 EBITDA $ 123,968 $ 111,340 WESTLAKE CHEMICAL PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2020 December 31, 2019 (In thousands of dollars) ASSETS Current assets Cash and cash equivalents $ 24,081 $ 19,923 Receivable under the Investment Management Agreement—Westlake 161,759 162,773 Accounts receivable, net—Westlake 40,560 42,847 Accounts receivable, net—third parties 13,535 9,914 Inventories 2,000 2,484 Prepaid expenses and other current assets 204 470 Total current assets 242,139 238,411 Property, plant and equipment, net 1,092,120 1,102,995 Other assets, net 48,768 52,050 Total assets $ 1,383,027 $ 1,393,456 LIABILITIES AND EQUITY Current liabilities (accounts payable and accrued liabilities) $ 30,666 $ 38,849 Long-term debt payable to Westlake 399,674 399,674 Other liabilities 2,596 2,798 Total liabilities 432,936 441,321 Common unitholders—publicly and privately held 472,428 471,736 Common unitholder—Westlake 48,814 48,350 General partner—Westlake (242,572 ) (242,572 ) Total Westlake Partners partners' capital 278,670 277,514 Noncontrolling interest in OpCo 671,421 674,621 Total equity 950,091 952,135 Total liabilities and equity $ 1,383,027 $ 1,393,456 WESTLAKE CHEMICAL PARTNERS LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2020 2019 (In thousands of dollars) Cash flows from operating activities Net income $ 93,770 $ 78,396 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 26,031 26,844 Other balance sheet changes (8,840 ) 8,259 Net cash provided by operating activities 110,961 113,499 Cash flows from investing activities Additions to property, plant and equipment (11,989 ) (12,144 ) Maturities of investments with Westlake under the Investment Management Agreement 79,000 80,000 Investments with Westlake under the Investment Management Agreement (78,000 ) (207,512 ) Other — 46 Net cash used for investing activities (10,989 ) (139,610 ) Cash flows from financing activities Net proceeds from private placement of common units — 62,934 Proceeds from debt payable to Westlake — 123,512 Quarterly distributions to noncontrolling interest retained in OpCo by Westlake (79,223 ) (81,507 ) Quarterly distributions to unitholders (16,591 ) (13,957 ) Net cash provided by (used for) financing activities (95,814 ) 90,982 Net increase in cash and cash equivalents 4,158 64,871 Cash and cash equivalents at beginning of period 19,923 19,744 Cash and cash equivalents at end of period $ 24,081 $ 84,615 WESTLAKE CHEMICAL PARTNERS LP RECONCILIATION OF MLP DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Three Months Ended December 31, Three Months Ended March 31, 2019 2020 2019 (In thousands of dollars) Net cash provided by operating activities $ 115,653 $ 110,961 $ 113,499 Changes in operating assets and liabilities and other (23,743 ) (17,191 ) (35,103 ) Net Income 91,910 93,770 78,396 Add: Depreciation, amortization and disposition of property, plant and equipment 27,048 26,127 27,302 Mark-to-market adjustment gain on derivative contracts (5,695 ) (2,491 ) (715 ) Less: Contribution to turnaround reserves (3,961 ) (9,923 ) (3,848 ) Maintenance capital expenditures (11,327 ) (11,121 ) (11,320 ) Distributable cash flow attributable to noncontrolling interest in OpCo (79,223 ) (78,025 ) (72,260 ) MLP distributable cash flow $ 18,752 $ 18,337 $ 17,555 WESTLAKE CHEMICAL PARTNERS LP RECONCILIATION OF EBITDA TO NET INCOME, INCOME FROM OPERATIONS AND NET CASH PROVIDED BY OPERATING ACTIVITIES (Unaudited) Three Months Ended December 31, Three Months Ended March 31, 2019 2020 2019 (In thousands of dollars) Net cash provided by operating activities $ 115,653 $ 110,961 $ 113,499 Changes in operating assets and liabilities and other (23,743 ) (17,191 ) (35,103 ) Net Income 91,910 93,770 78,396 Less: Other income, net 563 585 815 Interest expense (4,187 ) (3,950 ) (5,900 ) Income tax provision (219 ) (217 ) (200 ) Income from operations 95,753 97,352 83,681 Add: Depreciation and amortization 26,938 26,031 26,844 Other income, net 563 585 815 EBITDA $ 123,254 $ 123,968 $ 111,340 Contacts Contact—(713) 585-2900 Investors—Steve Bender Media—L. Benjamin Ederington
  • Maintained quarterly distribution of $0.4714 per unit

HOUSTON–(BUSINESS WIRE)–Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership of $17.7 million, or $0.50 per limited partner unit, for the three months ended March 31, 2020, an increase of $2.7 million compared to first quarter 2019 net income attributable to the Partnership of $15.0 million. The increase in net income attributable to the Partnership was primarily due to the increased production at Westlake Chemical OpCo LP ("OpCo") and higher third party sales margins. Cash flows from operating activities in the first quarter of 2020 were $111.0 million, a decrease of $2.5 million compared to first quarter 2019 cash flows from operating activities of $113.5 million. This decrease in cash flows from operating activities was primarily attributable to an increase in working capital. For the three months ended March 31, 2020, MLP distributable cash flow of $18.3 million increased by $0.7 million from first quarter 2019 MLP distributable cash flow of $17.6 million.

First quarter 2020 net income attributable to the Partnership of $17.7 million increased by $0.3 million from fourth quarter 2019 net income attributable to the Partnership of $17.4 million. First quarter 2020 cash flows from operating activities of $111.0 million decreased by $4.7 million compared to fourth quarter 2019 cash flows from operating activities of $115.7 million, primarily due to an increase in working capital. First quarter 2020 MLP distributable cash flow of $18.3 million decreased by $0.5 million compared to fourth quarter 2019 MLP distributable cash flow of $18.8 million.

"We are pleased with the Partnership's solid performance in the first quarter of 2020. The long-term ethylene sales agreement we have with Westlake Chemical provided reliable earnings and cash flows to the Partnership," said Albert Chao, President and Chief Executive Officer. "With the outbreak of COVID-19, our first priority is to ensure the health and safety of our employees around the world who continue to work diligently to serve our customers. The COVID-19 pandemic and the response thereto has impacted both equity and commodities markets as a whole. In these evolving market conditions, we maintained our current distribution and by doing so maintain our financial strength and flexibility. This measure allows us to preserve the inherent value of the Partnership and the significant opportunities available through our four levers of growth."

On April 30, 2020, the Partnership announced that the Board of Directors of Westlake Chemical Partners GP LLC had approved a quarterly distribution for the first quarter of 2020 of $0.4714 per unit to be payable on May 26, 2020 to unitholders of record as of May 11, 2020. MLP distributable cash flow provided trailing twelve-month coverage of 1.13x the declared distributions for the first quarter of 2020.

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 resumption of distribution growth, inherent value of the Partnership and levers of growth 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, the COVID-19 pandemic 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 of Westlake Chemical 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, 2019, which was filed with the SEC in February 2020.

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 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. generally accepted accounting principles ("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'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.

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, 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' first quarter 2020 results will be held Monday, May 4, 2020 at 1:00 PM Eastern Time (12:00 AM Central Time). To access the conference call, dial (855) 765-5686 or (234) 386-2848 for international callers, approximately 10 minutes prior to the scheduled start time and reference passcode 647 07 89.

A replay of the conference call will be available beginning two hours after its conclusion until 11:59 p.m. Eastern Time on Monday, May 11, 2020. To hear a replay, dial (855) 859-2056 or (404) 537-3406 for international callers. The replay passcode is 647 07 89.

The conference call will also be available via webcast at: https://edge.media-server.com/mmc/p/pz3nynuo and the earnings release can be obtained via the Partnership web page at: http://investors.wlkpartners.com/CorporateProfile.

WESTLAKE CHEMICAL PARTNERS LP ("WESTLAKE PARTNERS")

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended March 31,

2020

2019

(In thousands of dollars, except per unit data)

Revenue

Net sales—Westlake Chemical Corporation ("Westlake")

$

214,828

$

257,040

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

35,721

42,046

Total net sales

250,549

299,086

Cost of sales

147,001

208,432

Gross profit

103,548

90,654

Selling, general and administrative expenses

6,196

6,973

Income from operations

97,352

83,681

Other income (expense)

Interest expense—Westlake

(3,950

)

(5,900

)

Other income, net

585

815

Income before income taxes

93,987

78,596

Income tax provision

217

200

Net income

93,770

78,396

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

76,023

63,441

Net income attributable to Westlake Partners

$

17,747

$

14,955

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

Common units

$

0.50

$

0.46

Distributions declared per unit

$

0.4714

$

0.4452

MLP distributable cash flow

$

18,337

$

17,555

Distributions declared

Limited partner units—publicly and privately held

$

9,934

$

9,379

Limited partner units—Westlake

6,657

6,287

Total distributions declared

$

16,591

$

15,666

EBITDA

$

123,968

$

111,340

WESTLAKE CHEMICAL PARTNERS LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31,

2020

December 31,

2019

(In thousands of dollars)

ASSETS

Current assets

Cash and cash equivalents

$

24,081

$

19,923

Receivable under the Investment Management Agreement—Westlake

161,759

162,773

Accounts receivable, net—Westlake

40,560

42,847

Accounts receivable, net—third parties

13,535

9,914

Inventories

2,000

2,484

Prepaid expenses and other current assets

204

470

Total current assets

242,139

238,411

Property, plant and equipment, net

1,092,120

1,102,995

Other assets, net

48,768

52,050

Total assets

$

1,383,027

$

1,393,456

LIABILITIES AND EQUITY

Current liabilities (accounts payable and accrued liabilities)

$

30,666

$

38,849

Long-term debt payable to Westlake

399,674

399,674

Other liabilities

2,596

2,798

Total liabilities

432,936

441,321

Common unitholders—publicly and privately held

472,428

471,736

Common unitholder—Westlake

48,814

48,350

General partner—Westlake

(242,572

)

(242,572

)

Total Westlake Partners partners' capital

278,670

277,514

Noncontrolling interest in OpCo

671,421

674,621

Total equity

950,091

952,135

Total liabilities and equity

$

1,383,027

$

1,393,456

WESTLAKE CHEMICAL PARTNERS LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

2020

2019

(In thousands of dollars)

Cash flows from operating activities

Net income

$

93,770

$

78,396

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

Depreciation and amortization

26,031

26,844

Other balance sheet changes

(8,840

)

8,259

Net cash provided by operating activities

110,961

113,499

Cash flows from investing activities

Additions to property, plant and equipment

(11,989

)

(12,144

)

Maturities of investments with Westlake under the Investment Management Agreement

79,000

80,000

Investments with Westlake under the Investment Management Agreement

(78,000

)

(207,512

)

Other

46

Net cash used for investing activities

(10,989

)

(139,610

)

Cash flows from financing activities

Net proceeds from private placement of common units

62,934

Proceeds from debt payable to Westlake

123,512

Quarterly distributions to noncontrolling interest retained in OpCo by Westlake

(79,223

)

(81,507

)

Quarterly distributions to unitholders

(16,591

)

(13,957

)

Net cash provided by (used for) financing activities

(95,814

)

90,982

Net increase in cash and cash equivalents

4,158

64,871

Cash and cash equivalents at beginning of period

19,923

19,744

Cash and cash equivalents at end of period

$

24,081

$

84,615

WESTLAKE CHEMICAL PARTNERS LP

RECONCILIATION OF MLP DISTRIBUTABLE CASH FLOW TO NET INCOME

AND NET CASH PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

Three Months

Ended December 31,

Three Months Ended March 31,

2019

2020

2019

(In thousands of dollars)

Net cash provided by operating activities

$

115,653

$

110,961

$

113,499

Changes in operating assets and liabilities and other

(23,743

)

(17,191

)

(35,103

)

Net Income

91,910

93,770

78,396

Add:

Depreciation, amortization and disposition of property, plant and equipment

27,048

26,127

27,302

Mark-to-market adjustment gain on derivative contracts

(5,695

)

(2,491

)

(715

)

Less:

Contribution to turnaround reserves

(3,961

)

(9,923

)

(3,848

)

Maintenance capital expenditures

(11,327

)

(11,121

)

(11,320

)

Distributable cash flow attributable to noncontrolling interest in OpCo

(79,223

)

(78,025

)

(72,260

)

MLP distributable cash flow

$

18,752

$

18,337

$

17,555

WESTLAKE CHEMICAL PARTNERS LP

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

PROVIDED BY OPERATING ACTIVITIES

(Unaudited)

Three Months

Ended December 31,

Three Months Ended March 31,

2019

2020

2019

(In thousands of dollars)

Net cash provided by operating activities

$

115,653

$

110,961

$

113,499

Changes in operating assets and liabilities and other

(23,743

)

(17,191

)

(35,103

)

Net Income

91,910

93,770

78,396

Less:

Other income, net

563

585

815

Interest expense

(4,187

)

(3,950

)

(5,900

)

Income tax provision

(219

)

(217

)

(200

)

Income from operations

95,753

97,352

83,681

Add:

Depreciation and amortization

26,938

26,031

26,844

Other income, net

563

585

815

EBITDA

$

123,254

$

123,968

$

111,340

Contacts

Contact—(713) 585-2900

Investors—Steve Bender

Media—L. Benjamin Ederington

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