Westlake Chemical Partners LP 10-Q for FY2025 Q2

Westlake Chemical Partners LP (WLKP)

10-Q 2025-08-06 For: 2025-06-30

Added on April 04, 2026

About this 10-Q

Westlake Chemical Partners LP filed this 10-Q on August 6, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $297.12M; up 4.6% from $284.17M a year earlier
Net income: $14.56M; up 0.9% from net income of $14.43M a year earlier

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☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	June 30, 2025


Delaware						32-0436529
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common units representing limited partnership interests	WLKP	The New York Stock Exchange


		Page
	PART I. FINANCIAL INFORMATION
Item
1)	Financial Statements	1
2)	Management's Discussion and Analysis of Financial Condition and Results of Operations	17
3)	Quantitative and Qualitative Disclosures about Market Risk	29
4)	Controls and Procedures	29

	PART II. OTHER INFORMATION

1)	Legal Proceedings	30
1A)	Risk Factors	30
5)	Other Information	30
6)	Exhibits	31


	June 30, 2025		December 31, 2024

	(in thousands of dollars, except unit amounts)
ASSETS
Current assets
Cash and cash equivalents	$	36,579	$	58,316
Receivable under the Investment Management Agreement—Westlake Corporation ("Westlake")	43,924		134,557
Accounts receivable, net—Westlake	59,919		31,975
Accounts receivable, net—third parties	12,817		11,576
Inventories	3,261		4,058
Prepaid expenses and other current assets	24		444
Total current assets	156,524		240,926
Property, plant and equipment, net	902,062		903,588
Goodwill	5,814		5,814
Deferred charges and other assets, net	242,787		137,628
Total assets	$	1,307,187	$	1,287,956
LIABILITIES
Current liabilities
Accounts payable—Westlake	$	8,572	$	20,744
Accounts payable—third parties	28,071		17,708
Accrued and other liabilities	36,263		16,920

Total current liabilities	72,906		55,372
Long-term debt payable to Westlake	399,674		399,674
Deferred income taxes	1,581		1,546
Other liabilities	1,861		2,050
Total liabilities	476,022		458,642
Commitments and contingencies (Note 12)
EQUITY
Common unitholders—publicly and privately held (21,116,326 and 21,116,326 units issued and outstanding at June 30, 2025 and December 31, 2024, respectively)	463,109		471,328
Common unitholder—Westlake (14,122,230 and 14,122,230 units issued and outstanding at June 30, 2025 and December 31, 2024, respectively)	41,876		47,373
General partner—Westlake	(242,572)		(242,572)

Total Westlake Chemical Partners LP partners' capital	262,413		276,129
Noncontrolling interest in Westlake Chemical OpCo LP ("OpCo")	568,752		553,185
Total equity	831,165		829,314
Total liabilities and equity	$	1,307,187	$	1,287,956


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the Transition Period from to


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024

	(in thousands of dollars, except unit amounts and per unit data)
Revenue
Net sales—Westlake	$	269,076	$	239,527	$	459,857	$	474,736
Net co-products, ethylene and other sales—third parties	28,043		44,641		74,891		94,105
Total net sales	297,119		284,168		534,748		568,841
Cost of sales	199,587		182,936		383,135		365,429
Gross profit	97,532		101,232		151,613		203,412
Selling, general and administrative expenses	6,300		7,605		13,774		14,682
Income from operations	91,232		93,627		137,839		188,730
Other income (expense)
Interest expense—Westlake	(5,907)		(6,651)		(11,444)		(13,232)
Other income, net	675		1,257		2,021		2,591
Income before income taxes	86,000		88,233		128,416		178,089
Provision for income taxes	205		207		312		417
Net income	85,795		88,026		128,104		177,672
Less: Net income attributable to noncontrolling interest in OpCo	71,237		73,599		108,598		148,412
Net income attributable to Westlake Chemical Partners LP and limited partners' interest in net income	$	14,558	$	14,427	$	19,506	$	29,260
Net income per limited partner unit attributable to Westlake Chemical Partners LP (basic and diluted)
Common units	$	0.41	$	0.41	$	0.55	$	0.83
Weighted average limited partner units outstanding (basic and diluted)
Common units—publicly and privately held	21,116,326		21,107,299		21,116,326		21,106,602
Common units—Westlake	14,122,230		14,122,230		14,122,230		14,122,230


		Partnership
		Common Unitholders— Publicly and Privately Held		Common Unitholder— Westlake		General Partner— Westlake		Noncontrolling Interest in OpCo		Total

	(in thousands of dollars)
Balances at December 31, 2024		$	471,328	$	47,373	$	(242,572)	$	553,185	$	829,314

Net income		2,965		1,983		—		37,361		42,309

Distribution to unitholders		(9,954)		(6,657)		—		—		(16,611)
Distribution to noncontrolling interest retained in OpCo by Westlake		—		—		—		(51,906)		(51,906)
Balances at March 31, 2025		$	464,339	$	42,699	$	(242,572)	$	538,640	$	803,106

Net income		8,724		5,834		—		71,237		85,795

Distribution to unitholders		(9,954)		(6,657)		—		—		(16,611)
Distribution to noncontrolling interest retained in OpCo by Westlake		—		—		—		(41,125)		(41,125)
Balances at June 30, 2025		$	463,109	$	41,876	$	(242,572)	$	568,752	$	831,165


	June 30, 2025		December 31, 2024
Trade customers	$	12,996	$	11,757
Allowance for credit losses	(179)		(181)


Accounts receivable, net—third parties	$	12,817	$	11,576


	June 30, 2025		December 31, 2024
Finished products	$	2,743	$	3,748
Feedstock, additives and chemicals	518		310
Inventories	$	3,261	$	4,058


	Three Months Ended June 30, 2025
	Limited Partners' Common Units		Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution	$	16,612	$	—	$	16,612
Distribution in excess of net income	(2,054)		—		(2,054)
Net income	$	14,558	$	—	$	14,558
Weighted average units outstanding:
Basic and diluted	35,238,556				35,238,556
Net income per limited partner unit:
Basic and diluted	$	0.41


	Three Months Ended June 30, 2024
	Limited Partners' Common Units		Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution	$	16,608	$	—	$	16,608
Distribution in excess of net income	(2,181)		—		(2,181)
Net income	$	14,427	$	—	$	14,427
Weighted average units outstanding:
Basic and diluted	35,229,529				35,229,529
Net income per limited partner unit:
Basic and diluted	$	0.41


	Six Months Ended June 30, 2025
	Limited Partners' Common Units		Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution	$	33,223	$	—	$	33,223
Distribution in excess of net income	(13,717)		—		(13,717)
Net income	$	19,506	$	—	$	19,506
Weighted average units outstanding:
Basic and diluted	35,238,556				35,238,556
Net income per limited partner unit:
Basic and diluted	$	0.55


	Six Months Ended June 30, 2024
	Limited Partners' Common Units		Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution	$	33,215	$	—	$	33,215
Distribution in excess of net income	(3,955)		—		(3,955)
Net income	$	29,260	$	—	$	29,260
Weighted average units outstanding:
Basic and diluted	35,228,832				35,228,832
Net income per limited partner unit:
Basic and diluted	$	0.83


	Marginal Percentage Interest in Distributions
Total Quarterly Distribution Per Unit	Unitholders		IDR Holders
Above $1.2938 up to $1.4063	85.0	%	15.0	%
Above $1.4063 up to $1.6875	75.0	%	25.0	%
Above $1.6875	50.0	%	50.0	%


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024

Significant segment expenses and other segment items
OpCo
Raw material, energy, manufacturing and logistics costs	$	167,103	$	154,621	$	323,583	$	309,120
Depreciation and amortization	32,484		28,315		59,552		56,309
Total cost of sales	199,587		182,936		383,135		365,429
Selling, general and administrative expenses	5,402		6,594		12,074		12,646
Other segment items (1)	(117)		(669)		(1,088)		(1,419)

Interest expense—Westlake
OpCo	$	353	$	381	$	621	$	755
Corporate	5,554		6,270		10,823		12,477
	$	5,907	$	6,651	$	11,444	$	13,232

Net income
OpCo	$	92,247	$	95,307	$	140,627	$	192,185


	June 30, 2025		December 31, 2024
Accounts receivable—Westlake	$	59,919	$	31,975


	June 30, 2025		December 31, 2024
OpCo Revolver	$	22,619	$	22,619
MLP Revolver	377,055		377,055
Long-term debt payable to Westlake	$	399,674	$	399,674


	June 30, 2025				December 31, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt payable to Westlake	$	399,674	$	409,171	$	399,674	$	411,489


	Three Months Ended June 30, 2025				Six Months Ended June 30, 2025
	Average Sales Price		Volume		Average Sales Price		Volume
Net sales percentage change from prior-year period due to average sales price and volume	+9.1	%	-9.3	%	+10.0	%	-18.4	%


Exhibit No.						Exhibit





3.1						Certificate of Limited Partnership of Westlake Chemical Partners LP (incorporated by reference to Exhibit 3.1 to Westlake Chemical Partners LP's Registration Statement on Form S-1 (File No. 333-195551), filed on April 29, 2014).

3.2						First Amended and Restated Agreement of Limited Partnership of Westlake Chemical Partners LP (incorporated by reference to Exhibit 3.1 to Westlake Chemical Partners LP's Current Report on Form 8-K (File No. 001-36567) filed on August 8, 2014).

3.3						Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership of Westlake Chemical Partners LP dated as of November 16, 2017 (incorporated by Reference to Exhibit 3.1 to Westlake Chemical Partners LP's Current Report on Form 8-K, filed on November 16, 2017, File No. 01-36567).

3.4						Amendment No. 2 to the First Amended and Restated Agreement of Limited Partnership of Westlake Chemical Partners LP (incorporated by reference to Exhibit 3.1 to Westlake Chemical Partners LP's Current Report on Form 8-K filed on July 30, 2018 (File No. 01-36567)).

3.5						Amended and Restated Agreement of Limited Partnership of Westlake Chemical OpCo LP (incorporated by reference to Exhibit 10.7 to Westlake Chemical Partners LP's Current Report on Form 8-K (File No. 001-36567) filed on August 8, 2014).

3.6						Amendment No. 1 to the Amended and Restated Agreement of Limited Partnership of Westlake Chemical OpCo LP dated as of December 1, 2017 (File No. 01-36567) (incorporated by reference to Exhibit 3.4 to Westlake Chemical Partners LP's Annual Report on Form 10-K for the year ended December 31, 2017 (File No. 01-36567) filed on March 1, 2018).

31.1†						Rule 13a – 14(a) / 15d – 14(a) Certification (Principal Executive Officer)

31.2†						Rule 13a – 14(a) / 15d – 14(a) Certification (Principal Financial Officer)

32.1#						Section 1350 Certification (Principal Executive Officer and Principal Financial Officer)

101.INS†						Inline XBRL Instance Document–The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.

101.SCH†						Inline XBRL Taxonomy Extension Schema Document

101.CAL†						Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF†						Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB†						Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE†						Inline XBRL Taxonomy Extension Presentation Linkbase Document

104						Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.


1.			I have reviewed this Quarterly Report on Form 10-Q of Westlake Chemical Partners LP (the "registrant");


2.			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.			The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


			a)			designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


			b)			designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


			c)			evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			d)			disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and


			a)			all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and


			b)			any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.