- Declared quarterly distribution of $0.4714 per unit; 40th
consecutive quarterly distribution
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
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version on businesswire.com: https://www.businesswire.com/news/home/20240806201790/en/
(713) 585-2900 Investors—Steve Bender Media—L. Benjamin
Ederington
Westlake Chemical Partners (NYSE:WLKP)
過去 株価チャート
から 10 2024 まで 11 2024
Westlake Chemical Partners (NYSE:WLKP)
過去 株価チャート
から 11 2023 まで 11 2024
