• Quarterly net income attributable to the Partnership of $10.0 million, or $0.36 per unit
• Quarterly MLP distributable cash flow of $11.0 million
• Increased quarterly cash distribution by 2.85% to $0.3650 per unit

HOUSTON--(BUSINESS WIRE)--Aug. 3, 2017-- Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership of $10.0 million, or $0.36 per limited partner unit, for the three months ended June 30, 2017, an increase of $0.7 million compared to second quarter 2016 net income attributable to the Partnership of $9.3 million. The increase in net income attributable to the Partnership as compared to the prior-year period was primarily due to increased production at Westlake Chemical OpCo LP’s (“OpCo”) Petro 1 facility in Lake Charles, Louisiana following its 250 million pound ethylene expansion completed in July 2016. Cash flow from operations in the second quarter of 2017 was $113.2 million, an increase of $40.5 million compared to second quarter 2016 cash flow from operations of $72.7 million. This increase in cash flow from operations was primarily due to increased production and a decrease in turnaround expenditures. For the three months ended June 30, 2017, MLP distributable cash flow was $11.0 million, an increase of $6.7 million compared to second quarter 2016 MLP distributable cash flow of $4.3 million. The increase in MLP distributable cash flow as compared to the prior-year period was due to higher production volumes and lower maintenance capital expenditures.

The second quarter 2017 net income attributable to the Partnership of $10.0 million, or $0.36 per limited partner unit, increased by $0.2 million from first quarter 2017 net income attributable to the Partnership of $9.8 million. Second quarter 2017 cash flow from operations of $113.2 million decreased by $35.9 million compared to first quarter 2017 cash flow from operations of $149.1 million. This decrease in cash flow from operations was primarily due to a decrease in working capital in the first quarter of 2017 related to collections from Westlake Chemical Corporation (“Westlake”) for deferred payments in accordance with the ethylene sales agreement between Westlake and OpCo. Second quarter 2017 MLP distributable cash flow of $11.0 million decreased by $0.4 million compared to first quarter 2017 MLP distributable cash flow of $11.4 million.

Net income attributable to the Partnership of $19.7 million, or $0.71 per limited partner unit, for the six months ended June 30, 2017, decreased $1.7 million compared to the first six months of 2016 net income attributable to the Partnership of $21.4 million. The decrease in net income attributable to the Partnership as compared to the prior-year period was due to certain reimbursements from Westlake under the ethylene sales agreement that were recorded in the first six months of 2016, partially offset by increased production at OpCo’s Petro 1 and Petro 2 facilities in Lake Charles, Louisiana. Cash flow from operations in the first six months of 2017 was $262.3 million, an increase of $77.0 million compared to the first six months of 2016 cash flow from operations of $185.3 million. This increase in cash flow from operations was primarily due to increased production, a decrease in working capital, and a decrease in turnaround expenditures. For the six months ended June 30, 2017, MLP distributable cash flow was $22.4 million, an increase of $8.6 million compared to the first six months of 2016 MLP distributable cash flow of $13.8 million. The increase in MLP distributable cash flow as compared to the prior-year period was due to higher production volumes and lower maintenance capital expenditures.

On August 1, 2017, the Board of Directors of Westlake Chemical Partners GP LLC, the general partner of the Partnership, announced a quarterly distribution for the second quarter of 2017 of $0.3650 per limited partner unit to be payable on August 29, 2017 to unit holders of record as of August 15, 2017. The second quarter 2017 distribution increased 12.0% compared to the second quarter 2016 distribution and 2.85% compared to the first quarter 2017 distribution. MLP distributable cash flow provided coverage of 1.11x the declared distributions for the second quarter of 2017. The increase in cash distributions is in line with the Partnership's targeted low-double-digit distribution growth.

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.

“We are pleased with OpCo’s performance for the quarter. The stability in earnings and cash flows provided by our sales agreement with Westlake Chemical provide a foundation for continued growth. Now that we have completed the expansion projects in Lake Charles and Calvert City, we are evaluating all options available to us to continue to increase distributions to our unitholders,” said Albert Chao, President and Chief Executive Officer.

The statements in this release and the related teleconference relating to matters that are not historical facts, such as distribution 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, 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, 2016, which was filed with the SEC in March 2017.

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, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles ("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 GAAP. A reconciliation of MLP distributable cash flow and EBITDA to net income and net cash provided by operating activities can be found in the financial schedules at the end of this release. We define distributable cash flow as net income plus depreciation and amortization, less contributions from turnaround reserves and maintenance capital expenditures. 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 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. Because MLP distributable cash flow and EBITDA may be defined differently by other companies in our industry, our definition of MLP distributable cash flow and EBITDA may not be comparable to similarly titled measures of other companies.

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 owns a 13.3% 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 2017 results will be held August 3, 2017 at 12:00 PM Eastern Time (11:00 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 57788699.

A replay of the conference call will be available beginning two hours after its conclusion until 11:59 p.m. Eastern Time on August 10, 2017. To hear a replay, dial (855) 859-2056 or (404) 537-3406 for international callers. The replay passcode is 57788699.

The conference call will also be available via webcast at: http://edge.media-server.com/m/p/3fcwvxrr and the earnings release can be obtained via the Partnership web page at: http://westlakepartners.investorroom.com/news-events.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170803005143/en/

Source: Westlake Chemical Partners LP

Westlake Chemical Partners LP
Investors:
Steve Bender, 713-585-2900
or
Media:
L. Benjamin Ederington, 713-585-2900