WESTLAKE CHEMICAL PARTNERS LP: Administration’s Report on Monetary Situation and Outcomes of Operations (Kind 10-Okay)

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Overview

This Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of
Operations ought to be learn together with the accompanying consolidated
monetary statements, the notes thereto, and the opposite monetary info
showing elsewhere on this report. The next dialogue consists of
forward-looking statements that contain sure dangers and uncertainties. See
"Cautionary Assertion Concerning Ahead-Wanting Statements" and "Merchandise 1A. Danger
Components" on this report.
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  Desk of     Contents
We're a Delaware restricted partnership shaped by Westlake to function, purchase and
develop ethylene manufacturing amenities and associated belongings. On August 4, 2014, we
closed our preliminary public providing (the "IPO") of 12,937,500 widespread models. In
reference to the IPO, we acquired a ten.6% curiosity in OpCo and a 100%
curiosity in OpCo GP, which is the overall associate of OpCo. On April 29, 2015, we
bought a further 2.7% newly-issued restricted associate curiosity in OpCo,
leading to an mixture 13.3% restricted associate curiosity in OpCo efficient April
1, 2015. On September 29, 2017, we accomplished a secondary public providing of
5,175,000 widespread models and bought a further 5.0% newly-issued restricted
associate curiosity in OpCo, leading to an mixture 18.3% restricted associate
curiosity in OpCo, efficient as of July 1, 2017. The 12,686,115 subordinated
models of the Partnership, all of which have been beforehand owned by Westlake, have been
transformed into widespread models of the Partnership on August 30, 2017. On March 29,
2019, we accomplished a personal placement of two,940,818 widespread models and used the
web proceeds to buy a further 4.5% curiosity in OpCo, efficient January
1, 2019, leading to us proudly owning an mixture 22.8% restricted associate curiosity in
OpCo.
At present, our sole income producing asset is our 22.8% restricted associate
curiosity in OpCo, a restricted partnership shaped by Westlake and us in
anticipation of the IPO to personal and function an ethylene manufacturing enterprise. We
management OpCo by means of our possession of its common associate. Westlake retains the
remaining 77.2% restricted associate curiosity in OpCo in addition to a big
curiosity in us by means of its possession of our common associate, 40.1% of our
restricted associate models (consisting of 14,122,230 widespread models) and our incentive
distribution rights. OpCo's belongings embrace (1) two ethylene manufacturing
amenities ("Petro 1" and "Petro 2" and, collectively, "Lake Charles Olefins")
at Westlake'sLake Charles, Louisiana website; (2) one ethylene manufacturing facility
("Calvert Metropolis Olefins") at Westlake'sCalvert Metropolis, Kentucky website; and (3) a
200-mile widespread provider ethylene pipeline (the "Longview Pipeline") that runs
from Mont Belvieu, Texas to Westlake'sLongview, Texas facility.
How We Generate Income
We generate income primarily by promoting ethylene and the ensuing co-products
we produce. OpCo and Westlake have entered into an ethylene gross sales settlement (the
"Ethylene Gross sales Settlement") pursuant to which we generate a considerable majority
of our income. The Ethylene Gross sales Settlement is a long-term, fee-based settlement
with a minimal buy dedication and consists of variable pricing based mostly on OpCo's
precise feedstock and pure gasoline prices and estimated different prices of manufacturing
ethylene (together with OpCo's estimated working prices and a five-year common of
OpCo's anticipated future upkeep capital expenditures and different turnaround
expenditures based mostly on OpCo's deliberate ethylene manufacturing capability for the yr),
plus a set margin per pound of $0.10 much less income from co-products gross sales.
Pursuant to the Ethylene Gross sales Settlement, Westlake's obligation to pay for the
annual minimal dedication (95% of OpCo's budgeted ethylene manufacturing), which is
measured on an annual foundation, isn't decreased for the primary 45 days of a power
majeure occasion, however is decreased for the portion of a power majeure occasion extending
past the forty fifth day. Within the occasion of a power majeure occasion, we acknowledge purchaser
deficiency charges representing mounted margin and unavoided working and
upkeep capital expenditures and upkeep bills per pound of quantity
dedicated by Westlake throughout the power majeure occasion. Cost for the client
deficiency payment is scheduled to be acquired by the Partnership after the
conclusion of the yr.
Westlake has an choice to take 95% of volumes in extra of the minimal
dedication on an annual foundation underneath the Ethylene Gross sales Settlement if we produce
greater than our deliberate manufacturing. Below the Ethylene Gross sales Settlement, the worth
for the sale of such extra ethylene to Westlake is predicated on a components related
to that used for the minimal buy dedication, except sure
mounted prices. As well as, underneath the Ethylene Gross sales Settlement, if manufacturing
prices billed to Westlake on an annual foundation are lower than 95% of the particular
manufacturing prices incurred by OpCo throughout the contract yr, OpCo is entitled to
get well the shortfall in such manufacturing prices (proportionate to the quantity offered
to Westlake) within the subsequent yr ("Shortfall"). The Shortfall is mostly
acknowledged throughout the interval through which the associated working, upkeep or
turnaround actions happen.
The Ethylene Gross sales Settlement supplies that, if compliance with any legislation adopted
or modified following our IPO ends in OpCo incurring extra prices in
extra of $500,000 in any contract yr, OpCo is entitled to cost Westlake a
month-to-month surcharge following efforts to mitigate the consequences of such matter.
We promote ethylene manufacturing in extra of volumes offered to Westlake, in addition to
all related co-products ensuing from the ethylene manufacturing, on to
third events on both a spot or contract foundation. Internet proceeds (after
transportation and different prices) from the gross sales of related co-products that
consequence from the manufacturing of ethylene bought by Westlake are netted towards
the ethylene worth charged to Westlake underneath the Ethylene Gross sales Settlement,
thereby considerably decreasing our publicity to fluctuations out there costs
of those co-products. Throughout 2020, all of the third-party ethylene and related
co-products gross sales generated 8.1% of our whole revenues.
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Below the Companies and Secondment Settlement, OpCo makes use of a portion of its
manufacturing capability to course of purge gasoline for Westlake. On August 4, 2016, OpCo
and Westlake entered into an modification to the Ethylene Gross sales Settlement so as
to supply that sure of the pricing parts that make up the worth for
ethylene offered thereunder can be modified to mirror the portion of OpCo's
manufacturing capability that's used to course of Westlake's purge gasoline as an alternative of
producing ethylene and to make clear that prices particular to the processing of
Westlake's purge gasoline can be recovered underneath the Companies and Secondment
Settlement, and never the Ethylene Gross sales Settlement.
Please seek advice from Notice 2 to the consolidated monetary statements included inside
this report for extra info on the Ethylene Gross sales Settlement.
How We Supply Feedstock
OpCo has entered right into a 12-year feedstock provide settlement (the "Feedstock
Provide Settlement") with Westlake Petrochemicals LLC, an entirely owned subsidiary
of Westlake, underneath which Westlake Petrochemicals LLC provides OpCo with ethane
and different feedstocks that OpCo makes use of to supply ethylene underneath the Ethylene Gross sales
Settlement. For its roughly 5 p.c service provider gross sales, OpCo could buy
the ethane and different feedstocks to supply ethylene and ensuing co-products to
promote to unrelated third events from Westlake Petrochemicals LLC.
Please seek advice from Notice 2 to the consolidated monetary statements included inside
this report for extra info on the Feedstock Provide Settlement.
How We Consider Operations
Our administration makes use of a wide range of monetary and working metrics to research our
efficiency. These metrics are vital elements in assessing our working
outcomes and profitability and embrace: (1) manufacturing volumes, (2) working and
upkeep bills, together with turnaround prices, and (3) MLP distributable money
circulate and EBITDA.
Manufacturing Volumes
The quantity of revenue we generate primarily is dependent upon the volumes of ethylene
and ensuing co-products we're in a position to produce at Calvert Metropolis Olefins and
Lake Charles Olefins. Though Westlake has dedicated to buying minimal
volumes from us underneath the Ethylene Gross sales Settlement, our outcomes of operations
are impacted by our means to:
•produce ample volumes of ethylene to satisfy our commitments underneath the
Ethylene Gross sales Settlement or get well our estimated prices by means of the pricing
provisions of the Ethylene Gross sales Settlement;
•contract with third events for the remaining uncommitted manufacturing capability;
•add or enhance capability at our present manufacturing amenities, or add
extra manufacturing capability by way of natural growth tasks and acquisitions;
and
•obtain or exceed the required yield elements for pure gasoline, ethane and different
feedstock underneath the Ethylene Gross sales Settlement.
Working Bills, Upkeep Capital Expenditures and Turnaround Prices
Our administration seeks to maximise the profitability of our operations by
successfully managing working bills, upkeep capital expenditures and
turnaround prices. Our working bills are comprised primarily of feedstock
prices and pure gasoline, labor bills (together with contractor companies), utility
prices (apart from pure gasoline) and turnaround and upkeep bills. With the
exception of feedstock, together with pure gasoline, and utilities-related bills,
working bills usually stay comparatively secure throughout broad ranges of
manufacturing volumes however can fluctuate from interval to interval relying on the
circumstances, significantly upkeep and turnaround actions. Our
upkeep capital expenditures and turnaround prices are comprised primarily of
upkeep of our ethylene manufacturing amenities and the amortization of
capitalized turnaround prices. These capital expenditures relate to the
upkeep and integrity of our amenities. We capitalize the prices of main
upkeep actions, or turnarounds, and amortize the prices over the interval
till the following deliberate turnaround of the affected facility.
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Working bills, upkeep capital expenditures and turnaround prices are
constructed into the worth per pound of ethylene charged to Westlake underneath the
Ethylene Gross sales Settlement. As a result of the bills apart from feedstock prices and
pure gasoline are based mostly on forecasted quantities and stay a set part of the
worth per pound of ethylene offered underneath the Ethylene Gross sales Settlement for any
given 12-month interval, our means to handle working bills, upkeep
expenditures and turnaround price could straight have an effect on our profitability and money
flows. The affect on profitability is partially mitigated by the truth that we
usually acknowledge any Shortfall as income within the interval such prices and
bills are incurred. We search to handle our working and upkeep bills
on our ethylene manufacturing amenities by scheduling upkeep and turnarounds
over time to keep away from vital variability in our working margins and reduce
the affect on our money flows, with out compromising our dedication to security and
environmental stewardship. As well as, we reserve money on an annual foundation from
what we'd in any other case distribute to reduce the affect of turnaround prices in
the yr of incurrence. The acquisition worth underneath the Ethylene Gross sales Settlement is
not designed to cowl capital expenditures for expansions.
MLP Distributable Money Circulation and EBITDA
The physique of accounting rules usually accepted in the USA is
generally known as "GAAP." For this goal, a non-GAAP monetary measure
is mostly outlined by the Securities and Alternate Fee ("SEC") as a
numerical measure of a registrant's historic or future monetary efficiency,
monetary place or money flows that (1) excludes quantities, or is topic to
changes which have the impact of excluding quantities, which might be included within the
most straight comparable measure calculated and introduced in accordance with
GAAP within the assertion of revenue, stability sheet or assertion of money flows (or
equal statements) of the registrant; or (2) consists of quantities, or is topic
to changes which have the impact of together with quantities, which might be excluded from
probably the most straight comparable measure so calculated and introduced. We use the
non-GAAP measures of MLP distributable money circulate and EBITDA to research our
efficiency. We outline distributable money circulate as web revenue plus depreciation,
amortization and disposition of property, plant and gear, much less
contributions for turnaround reserves, upkeep capital expenditures and
mark-to-market adjustment on spinoff contracts. We outline MLP distributable
money circulate as distributable money circulate much less distributable money circulate attributable
to Westlake's noncontrolling curiosity in OpCo and distributions attributable to
the inducement distribution rights holder. MLP distributable money circulate doesn't
mirror modifications in working capital balances. We outline EBITDA as web revenue
earlier than curiosity expense, revenue taxes, depreciation and amortization. We use
every of MLP distributable money circulate and EBITDA to research our efficiency. MLP
distributable money circulate and EBITDA are non-GAAP supplemental monetary measures
that administration and exterior customers of our consolidated monetary statements,
similar to business analysts, buyers, lenders and score companies, could use to
assess our working efficiency as in comparison with different publicly-traded
partnerships; our means to incur and repair debt and fund capital
expenditures; and the viability of acquisitions and different capital expenditure
tasks and the returns on funding of varied funding alternatives.
MLP distributable money circulate isn't an alternative to the GAAP measures of web
revenue and web money offered by working actions. MLP distributable money
circulate has necessary limitations as an analytical instrument as a result of it excludes some
however not all objects that have an effect on web revenue and web money offered by working
actions. EBITDA isn't an alternative to the GAAP measures of web revenue,
revenue from operations and web money offered by working actions. In
addition, it ought to be famous that corporations calculate EBITDA otherwise and,
subsequently, EBITDA as introduced for us will not be akin to EBITDA reported
by different corporations. EBITDA has materials limitations as a efficiency measure
as a result of it excludes curiosity expense, depreciation and amortization, and revenue
taxes. Reconciliations for every of MLP distributable money circulate and EBITDA are
included in Merchandise 6. "Chosen Monetary Information" above.
Components Affecting Our Enterprise
Provide and Demand for Ethylene and Ensuing Co-products
We generate a considerable majority of our income from the Ethylene Gross sales
Settlement. This contract is meant to advertise money circulate stability and reduce
our direct publicity to commodity worth fluctuations within the following methods:
(1) the cost-plus pricing construction of the Ethylene Gross sales Settlement is predicted
to generate a set margin of $0.10 per pound, adjusting robotically for
modifications in feedstock prices; and (2) Westlake is dedicated to buy 95% of the
annual deliberate output, topic to a most dedication of three.8 billion kilos of
ethylene per yr, with an choice to buy a further 95% of precise output
in extra of the deliberate output on a contract yr foundation. Consequently, our
direct publicity to commodity worth danger is restricted to roughly 5% of our
whole ethylene manufacturing, which is that portion offered to 3rd events, assuming
Westlake workouts its choice to buy 95% of the over manufacturing, in addition to
to our co-products gross sales.
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We even have oblique publicity to commodity worth fluctuations to the extent
such fluctuations have an effect on the ethylene consumption patterns of third-party
purchasers. Demand for ethylene displays cyclical commodity traits as
margins earned on ethylene spinoff merchandise are influenced by modifications within the
stability between provide and demand, the ensuing working charges and common
financial exercise. Whereas we consider now we have considerably mitigated our oblique
publicity to commodity worth fluctuations throughout the time period of the Ethylene Gross sales
Settlement by means of the minimal dedication and the cost-plus based mostly pricing, our
means to execute our progress technique in our areas of operation will rely, in
half, on the demand for ethylene derivatives within the geographical areas served by
our ethylene manufacturing amenities.
Vital Developments Affecting Trade Circumstances and Our Enterprise

COVID-19, Trade Circumstances and Our Enterprise
On March 11, 2020, the World Well being Group declared the continued
coronavirus (COVID-19) outbreak a pandemic and really helpful containment and
mitigation measures worldwide. The pandemic has resulted in widespread hostile
impacts on the worldwide economic system and on our staff, clients and suppliers. We
didn't expertise vital disruptions to our enterprise operations within the
yr ended December 31, 2020 and don't anticipate to expertise vital
disruptions to our enterprise operations ensuing from COVID-19, primarily on account of
the truth that 95% of our manufacturing is offered to Westlake on a take-or-pay
contract.
Though the worth of crude oil has partially recovered from its sudden collapse
in early March 2020, because of the persevering with affect of low crude oil costs and
the addition of ethylene manufacturing capability in latest months, costs for
ethylene and co-products have remained weak and have additionally negatively impacted
our vegetation' working charges. Crude oil costs have recovered considerably for the reason that
second quarter of 2020. Regardless, we could idle manufacturing and cut back working
charges if it's not economical for us to supply ethylene to promote to 3rd
events.
Our first precedence in our response to this disaster has been the well being and security
of our operators, who're seconded to us by Westlake, and people of our clients
and distributors. Westlake has carried out preventative measures and developed
company and regional response plans to reduce pointless danger of publicity.
We and Westlake have modified sure enterprise practices (together with these
associated to worker journey, worker work areas and worker work practices)
to evolve to authorities restrictions and greatest practices inspired by the
Heart for Illness Management and Prevention, the World Well being Group and
different governmental and regulatory authorities. We and Westlake have carried out
methods to cut back prices, enhance operational efficiencies and decrease capital
spending. We now have additionally deferred the deliberate turnaround at OpCo's Petro 2
ethylene unit and related upkeep price into the second half of 2021. The
turnaround is predicted to final roughly 60 days.
Impression of Hurricanes Laura and Delta
On August 27, 2020, Hurricane Laura made landfall in Louisiana as a Class 4
storm, which resulted in widespread harm to property and infrastructure within the
higher Lake Charles space, together with the electrical energy transmission system. On
October 9, 2020, Hurricane Delta made landfall as a Class 2 storm in the identical
common neighborhood of Louisiana. As a precautionary measure, OpCo idled its models
within the Lake Charles space, Petro 1 and Petro 2, upfront of every storm. As a
results of the storms and sure pre-existing points found throughout start-up
following Hurricanes Laura and Delta, Petro 1 and Petro 2 remained fully
shut down for a big time period within the months of August, September
and October 2020 and returned to extra routine operations by the start of
November 2020. In reference to these outages and pursuant to the Ethylene
Gross sales Settlement, OpCo offered notices of power majeure occasions to Westlake.
Below the Ethylene Gross sales Settlement, Westlake's obligation to pay for the annual
minimal dedication (95% of OpCo's budgeted ethylene manufacturing) isn't decreased
for the primary 45 days of a power majeure occasion. On account of the power majeure
occasions on account of Hurricanes Laura and Delta, we acknowledged a purchaser deficiency payment
of $69.6 million as a part of web gross sales in 2020, representing mounted margin
and unavoided working and upkeep capital expenditures and upkeep
bills per pound of quantity dedicated by Westlake throughout the power majeure
occasions. Cost for the client deficiency payment was acquired in January 2021.
February Climate Occasion
In February 2021, massive components of the southern United States, together with Louisiana
and Kentucky, skilled excessive winter climate. Because of the excessive climate,
OpCo's ethylene manufacturing amenities within the area skilled disruption to
their operations, leading to misplaced manufacturing and extra upkeep prices.
OpCo has declared power majeure underneath the Ethylene Provide Settlement and expects
to acknowledge a purchaser deficiency payment in 2021.
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Outcomes of Operations
The desk beneath and descriptions that comply with symbolize the consolidated outcomes
of operations of the Partnership for the years 2020, 2019 and 2018.
                                                                          Yr Ended December 31,
                                                              2020                   2019                  2018

                                                         (in hundreds of

{dollars}, besides unit and unit quantities

Information)

Internet sales-Westlake                                      $     888,245$     937,625$ 1,074,957
Internet co-products, ethylene and feedstock
sales-third events                                            78,425                154,246              210,665
Whole web gross sales                                               966,670              1,091,871            1,285,622
Gross revenue                                                  378,883                379,428              377,159
Promoting, common and administrative bills                   25,895                 29,278               27,590
Earnings from operations                                        352,988                350,150              349,569
Different revenue (expense)
Curiosity expense-Westlake                                     (12,038)               (19,623)             (21,433)
Different revenue, web                                                 733                  3,096                2,457
Earnings earlier than revenue taxes                                    341,683                333,623              330,593
Provision for revenue taxes                                        564                    728                   22
Internet revenue                                              $     341,119$     332,895$   330,571
Much less: Internet revenue attributable to noncontrolling
curiosity in OpCo                                              274,952                271,914              281,224
Internet revenue attributable to Westlake Chemical
Companions LP and restricted companions' curiosity in web
revenue                                                  $      66,167$      60,981$    49,347
Internet revenue attributable to Westlake Chemical
Companions LP
per restricted associate unit (fundamental and diluted)
Frequent models                                            $        1.88$        1.77$      1.51
Weighted common restricted associate models
excellent
(fundamental and diluted)
Frequent units-public                                        21,073,041             20,365,828           18,118,628
Frequent units-Westlake                                      14,122,230             14,122,230           14,122,230
MLP distributable money circulate (1)                         $      71,983$      73,181$    60,024
EBITDA (1)                                              $     456,875$     460,566$   460,868


                                                                                        Yr Ended December 31,
                                                                        2020                                                2019
                                                        Common Gross sales                                       Common Gross sales
                                                            Value                     Quantity                    Value                    Quantity
Product gross sales worth and quantity share
change
from prior yr                                                    +0.8  %               -18.6  %                     -15.4  %               +0.3  %


                                            Yr Ended December 31,
                                   2020               2019              2018
Common business costs (2)
Ethane (cents/lb)                  6.4                7.3               11.0
Propane (cents/lb)                11.0               12.7               20.8
Ethylene (cents/lb) (3)           17.5               18.5               19.0


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(1)See "Merchandise 6. Chosen Monetary Information", for discussions on non-GAAP monetary
measures.
(2)Trade pricing information was obtained by means of IHS. We now have not independently
verified the information.
(3)Represents common North American spot costs of ethylene over the interval as
reported by IHS.
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Abstract
For the yr ended December 31, 2020, web revenue was $341.1 million on web gross sales
of $966.7 million. This represents a rise in web revenue of $8.2 million as
in comparison with web revenue of $332.9 million on web gross sales of $1,091.9 million for
the yr ended December 31, 2019. Internet revenue attributable to the Partnership in
2020 was $66.2 million as in comparison with $61.0 million in 2019, a rise of $5.2
million, which was primarily because of the increased gross sales worth for ethylene offered to
Westlake per the phrases of the Ethylene Gross sales Settlement, the client deficiency payment
of $69.6 million acknowledged in 2020 because of the power majeure occasions at
the Petro 1 and Petro 2 models and decrease curiosity expense, partially offset by
decrease gross sales to 3rd events, decrease gross sales volumes to Westlake because of the power
majeure occasions and elevated upkeep expense. Internet gross sales for 2020 decreased
by $125.2 million as in comparison with 2019 primarily on account of decrease gross sales to 3rd events
and decrease gross sales volumes to Westlake because of the power majeure occasions, partially
offset by increased gross sales costs to Westlake per the phrases of the Ethylene Gross sales
Settlement and the client deficiency payment acknowledged throughout the yr ended December
31, 2020. Earnings from operations was $353.0 million for 2020, as in comparison with
$350.2 million for 2019. Earnings from operations for the yr ended December 31,
2020 elevated primarily because of the upper gross sales worth for ethylene offered to
Westlake, and the client deficiency payment acknowledged throughout the yr, partially
offset by elevated upkeep expense and decrease gross sales volumes to 3rd events
and to Westlake, as in comparison with the yr ended December 31, 2019.
2020 In contrast with 2019
Internet Gross sales. Internet gross sales decreased by $125.2 million, or 11.5%, to $966.7 million in
2020 from $1,091.9 million in 2019. The lower in web gross sales in 2020 was
primarily on account of decrease manufacturing throughout the yr, primarily because of the power
majeure occasions and decrease gross sales costs to 3rd events, partially offset by the
purchaser deficiency payment of $69.6 million acknowledged in 2020 and better gross sales worth
to Westlake per the phrases of the Ethylene Gross sales Settlement in 2020. The decrease
gross sales quantity throughout 2020 contributed to a lower in web gross sales of 18.6% for the
yr ended December 31, 2020 in comparison with the yr ended December 31, 2019. The
lower in gross sales quantity throughout 2020 was primarily because of the power majeure
occasions at our Lake Charles Petro 1 and Petro 2 models. The typical gross sales worth in
2020 contributed to a 0.8% enhance in web gross sales, in comparison with 2019, which was
primarily on account of increased gross sales costs to Westlake per the phrases of the Ethylene
Gross sales Settlement, partially offset by decrease third social gathering gross sales costs.
Gross Revenue. Gross revenue was $378.9 million in 2020, as in comparison with gross
revenue of $379.4 million in 2019. The gross revenue margin was 39.2% in 2020 as
in comparison with 34.7% in 2019. The elevated 2020 gross revenue margin was on account of
increased earnings on ethylene offered to Westlake and the client deficiency payment of
$69.6 million acknowledged throughout the yr, partially offset by decrease gross sales
volumes ensuing from decrease manufacturing on the Lake Charles Petro I and Petro 2
models in comparison with 2019.
Promoting, Normal and Administrative Bills. Promoting, common and
administrative bills decreased by $3.4 million, or 11.6%, to $25.9 million in
2020 from $29.3 million in 2019. The lower in 2020, as in comparison with 2019, was
primarily attributable to decrease service price.
Curiosity Expense. Curiosity expense decreased by $7.6 million to $12.0 million in
2020 from $19.6 million in 2019, largely on account of a decrease rate of interest on debt as
a results of a lower within the London Interbank Supplied Price ("LIBOR").
Different Earnings, web. Different revenue, web decreased by $2.4 million to $0.7 million
in 2020 from $3.1 million in 2019, primarily on account of a lower in curiosity
revenue earned underneath the Funding Administration Settlement because of decrease
common rates of interest.
Provision for Earnings Taxes. Provision for revenue taxes was $0.6 million in 2020
as in comparison with $0.7 million in 2019.
MLP Distributable Money Circulation. MLP distributable money circulate decreased by $1.2
million to $72.0 million in 2020 from $73.2 million in 2019. The lower in MLP
distributable money circulate was primarily a results of decrease manufacturing, elevated
turnaround reserves and better upkeep expense, partially offset by the
purchaser deficiency of $69.6 million acknowledged in 2020 and decrease curiosity expense
throughout the yr.
EBITDA. EBITDA decreased by $3.7 million to $456.9 million in 2020 from 2019
EBITDA of $460.6 million. The decreased EBITDA, as in comparison with the prior yr,
was primarily on account of decrease gross sales volumes because of decrease manufacturing and
increased upkeep expense, partially offset by the client deficiency payment of
$69.6 million acknowledged throughout 2020 and decrease promoting, common and
administrative bills.
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2019 In contrast with 2018
Internet Gross sales. Internet gross sales decreased by $193.7 million, or 15.1%, to $1,091.9 million
in 2019 from $1,285.6 million in 2018, primarily on account of decrease ethylene gross sales
costs to Westlake per the phrases of the Ethylene Gross sales Settlement. The general
decreased gross sales worth in 2019 contributed to a 15.4% lower in web gross sales,
in comparison with 2018, which was primarily on account of decrease gross sales costs to Westlake per the
phrases of the Ethylene Gross sales Settlement and decrease third social gathering ethylene gross sales
costs. Gross sales volumes in 2019 have been akin to 2018.
Gross Revenue. Gross revenue was $379.4 million in 2019 as in comparison with gross
revenue of $377.2 million in 2018. The gross revenue margin was 34.7% in 2019 as
in comparison with 29.3% in 2018. The upper 2019 gross revenue margin was on account of
improved margins on third social gathering gross sales, primarily on account of decrease feedstock prices,
as in comparison with 2018.
Promoting, Normal and Administrative Bills. Promoting, common and
administrative bills elevated by $1.7 million, or 6.2%, to $29.3 million in
2019 from $27.6 million in 2018. The rise in 2019, as in comparison with 2018, was
related to the acquisition of the incremental curiosity in OpCo and
elevated common and administrative expense allocations, partially offset by a
lower in provision for uncertain accounts.
Curiosity Expense. Curiosity expense decreased by $1.8 million to $19.6 million in
2019 from $21.4 million in 2018, largely on account of a decrease common debt stability
ensuing from the partial compensation of borrowings underneath the OpCo Revolver in
April 2019 and a lower within the relevant margin on the OpCo Revolver from 3%
to 2% efficient September 25, 2018, partially offset by the next rate of interest
on debt on account of a rise in LIBOR in 2019.
Different Earnings, web. Different revenue, web elevated by $0.6 million in 2019 to $2.5
million, as in comparison with 2018, primarily on account of a rise in curiosity revenue
earned underneath the Funding Administration Settlement.
Provision for Earnings Taxes. Provision for revenue taxes elevated to $0.73
million in 2019 as in comparison with $0.02 million in 2018. The rise was primarily
attributable to a tax profit in 2018 on account of a revaluation of the state deferred
revenue tax legal responsibility because of a lower in state tax apportionment.
MLP Distributable Money Circulation. MLP distributable money circulate elevated by $13.2
million to $73.2 million in 2019 from $60.0 million in 2018. The rise in MLP
distributable money circulate as in comparison with 2018 was primarily a results of the 4.5%
enhance within the Partnership's curiosity in OpCo, efficient as of January 1, 2019,
in addition to increased third social gathering gross sales margins, partially offset by increased
upkeep capital expenditures.
EBITDA. EBITDA for 2019 was $460.6 million, which was akin to 2018 EBITDA
of $460.9 million.
Money Flows
Working Actions
Working actions offered money of $373.4 million in 2020 as in comparison with money
offered by working actions of $450.8 million in 2019. The $77.4 million
lower in money flows from working actions was primarily on account of a rise
in use of money in working capital throughout 2020 as in comparison with 2019. Modifications in
parts of working capital, which we outline for the needs of this money
circulate dialogue as accounts receivable-Westlake, accounts receivable, net-third
events, inventories, pay as you go bills and different present belongings much less accounts
payable and accrued liabilities and different liabilities, used money of $67.9
million in 2020 as in comparison with $11.7 million of money offered in 2019, ensuing
in an total unfavorable change of $79.6 million. This modification was on account of an
unfavorable change in Westlake accounts receivable in 2020 as in comparison with 2019,
primarily because of the purchaser deficiency payment acknowledged in 2020.
Working actions offered money of $450.8 million in 2019 as in comparison with money
offered of $436.2 million in 2018. The $14.6 million enhance in money flows
from working actions was primarily on account of a lower in use of money in working
capital throughout 2019 as in comparison with 2018. Modifications in parts of working
capital offered money of $11.7 million in 2019 as in comparison with $4.3 million of
money utilized in 2018, leading to an total favorable change of $16.0 million.
This modification was on account of a good change in third social gathering and Westlake accounts
receivable, accounts payable and accrued liabilities in 2019 as in comparison with
2018, primarily ensuing from decrease ethylene gross sales costs and feedstock prices.
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Investing Actions
Internet money offered by investing actions throughout 2020 was $2.0 million as
in comparison with web money used for investing actions of $57.7 million in 2019,
primarily on account of maturities of investments underneath the Funding Administration
Settlement and a lower in additions to property, plant and gear in 2020,
as in comparison with 2019. Throughout 2020, we invested $349.0 million with Westlake, and
$388.0 million of such investments matured. Capital expenditures have been $37.0
million in 2020 as in comparison with $43.7 million in 2019. Capital expenditures
throughout 2020 and 2019 have been primarily associated to tasks to enhance manufacturing
capability or cut back prices, upkeep and security and environmental tasks at
our amenities.
Internet money used for investing actions throughout 2019 was $57.7 million as in contrast
to web money used for investing actions of $51.8 million in 2018, primarily due
to elevated web money used underneath the Funding Administration Settlement in 2019, as
in comparison with 2018. Throughout 2019, we invested $529.4 million with Westlake, and
$515.4 million of such investments matured. Capital expenditures have been $43.7
million in 2019 as in comparison with $39.9 million in 2018. Capital expenditures
throughout 2019 and 2018 have been primarily associated to tasks to enhance manufacturing
capability or cut back prices, upkeep and security and environmental tasks at
OpCo's amenities.
Financing Actions
Internet money used for financing actions throughout 2020 was $378.2 million as
in comparison with web money used for financing actions of $392.9 million in 2019.
The money outflows throughout 2020 have been associated to distributions of $311.8 million to
Westlake and of $66.4 million to different unitholders by the Partnership.
Internet money used for financing actions throughout 2019 was $392.9 million as
in comparison with web money used for financing actions of $391.6 million in 2018.
The money inflows throughout 2019 have been a results of borrowings underneath the MLP Revolver
of $123.5 million and web proceeds from the personal placement of widespread models of
roughly $62.7 million. The money outflows throughout 2019 have been associated to
partial repayments of borrowings underneath the OpCo Revolver of $201.4 million and
the distribution of $315.6 million to Westlake and of $62.1 million to different
unitholders by the Partnership.
Liquidity and Capital Sources
Liquidity and Financing Preparations
On March 29, 2019, we accomplished the personal placement of two,940,818 widespread models
at a worth of $21.40 per unit. Internet proceeds from the issuance of those widespread
models have been roughly $62.7 million.
Pursuant to the phrases of the ATM Settlement, the Partnership could supply and promote
the Partnership's widespread models once in a while to or by means of the Managers, as
the Partnership's gross sales brokers or as principals, having an mixture providing
quantity of as much as $50.0 million. The Partnership intends to make use of the online proceeds
of gross sales of the widespread models, if any, for common partnership functions,
together with the funding of potential drop-downs and different acquisitions.
Primarily based on the phrases of our money distribution coverage, we anticipate that we are going to
distribute to our companions many of the extra money generated by our operations.
To the extent we don't generate ample money circulate to fund capital
expenditures, we anticipate to fund them primarily from exterior sources, together with
borrowing straight from Westlake, in addition to future issuances of fairness and debt
pursuits.
The Partnership maintains separate financial institution accounts, however Westlake continues to
present treasury companies on our behalf underneath the Companies and Secondment
Settlement. Our sources of liquidity embrace money generated from operations, the
OpCo Revolver, the MLP Revolver and, if obligatory and doable underneath then
present market circumstances, the issuance of extra fairness pursuits or debt.
We consider that money generated from these sources shall be ample to satisfy our
short-term working capital necessities and long-term capital expenditure
necessities and to make quarterly money distributions. Westlake may additionally present
different direct and oblique financing to us once in a while, though it's not
required to take action.
So as to fund non-annual turnaround expenditures, we trigger OpCo to order an
quantity for turnaround prices throughout every twelve-month interval designed to cowl
for turnaround actions in future years. Every of OpCo's ethylene manufacturing
amenities requires turnaround upkeep roughly each 5 years. By
reserving extra money yearly, we intend to cut back the variability in
OpCo's money circulate. Westlake's buy worth for ethylene bought underneath the
Ethylene Gross sales Settlement features a part (adjusted yearly) designed to
cowl, over the long run, considerably all of OpCo's turnaround expenditures.
Our money is generated from money distributions from OpCo. OpCo is a restricted
subsidiary underneath sure indentures governing Westlake's senior notes. These
restrictions restrict OpCo's means to incur extra debt, amongst different issues.
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We, OpCo and Westlake are events to an Funding Administration Settlement that
authorizes Westlake to speculate the Partnership's and OpCo's extra money with
Westlake for a time period of as much as a most of 9 months. Per the phrases of the
Funding Administration Settlement, money invested with Westlake earns a market
return plus 5 foundation factors and Westlake supplies day by day availability of the
invested money to satisfy any liquidity wants of the Partnership or OpCo.
On January 25, 2021, the board of administrators of Westlake Chemical Companions GP
LLC, our common associate, accepted a quarterly distribution of $0.4714 per unit
payable on February 19, 2021 to unitholders of document on February 4, 2021, which
equates to roughly $16.6 million per quarter, or roughly $66.4
million per yr in mixture, based mostly on the variety of widespread models excellent
on December 31, 2020. We should not have a authorized or contractual obligation to pay
distributions on a quarterly foundation or some other foundation at our minimal quarterly
distribution price or some other price.
Capital Expenditures
Westlake has traditionally funded growth capital expenditures associated to Lake
Charles Olefins and Calvert Metropolis Olefins. No funding was required by OpCo to
fund its capital expenditures throughout 2020 or 2019. We anticipate that Westlake will
mortgage extra money to OpCo to fund its growth capital expenditures within the
future, however Westlake is underneath no obligation to take action.
Money and Money Equivalents
As of December 31, 2020, our money and money equivalents totaled $17.2 million. In
addition, now we have money invested underneath the Funding Administration Settlement and a
revolving credit score facility with Westlake out there to complement money if wanted,
as described underneath "Indebtedness" beneath.
As described above, we, OpCo and Westlake are events to an Funding
Administration Settlement that authorizes Westlake to speculate the Partnership's and
OpCo's extra money with Westlake for a time period of as much as a most of 9
months. The Partnership had $123.2 million of money invested underneath the Funding
Administration Settlement at December 31, 2020.
Indebtedness
OpCo Revolver
In reference to the IPO, OpCo entered right into a $600.0 million revolving credit score
facility with Westlake, as amended in August and December 2017 and March 2020
("OpCo Revolver") which may be used to fund progress tasks and dealing capital
wants. On April 30, 2019, OpCo repaid $201.4 million of borrowings underneath the
OpCo Revolver. As of December 31, 2020, excellent borrowings underneath the OpCo
Revolver totaled $22.6 million and bore curiosity on the LIBOR price plus 2.0%,
which is accrued in arrears quarterly. On September 25, 2018, the OpCo Revolver
was amended to increase the scheduled maturity date from August 4, 2019 to
September 25, 2023 and to revise the relevant margin from 3% to 2%.
MLP Revolver
In 2015, we entered right into a senior, unsecured revolving credit score settlement with an
affiliate of Westlake (the "MLP Revolver"). The MLP Revolver has a borrowing
capability of $600.0 million. On March 29, 2019, the Partnership borrowed $123.5
million underneath the MLP Revolver to partially fund the acquisition of a further
4.5% curiosity in OpCo. On March 19, 2020, the Partnership entered into an
modification to the MLP Revolver, to increase the maturity date to March 19, 2023 and
add a phase-out provision for LIBOR, which is to get replaced by an alternate
benchmark price. Borrowings underneath the MLP Revolver bear curiosity at a variable
price of both (a) LIBOR plus 2.0% or, if LIBOR is not out there, (b)
Alternate Base Price plus 1.0%. The MLP Revolver supplies that we could pay all or
a portion of the curiosity on any borrowings in form, through which case any such
quantities can be added to the principal quantity of the mortgage. The MLP Revolver
requires that we preserve a consolidated leverage ratio of both (1) throughout any
one-year interval following sure kinds of acquisitions (together with acquisitions
of extra pursuits in OpCo), 5.50:1.00 or much less, or (2) throughout some other
interval, 4.50:1.00 or much less. The MLP Revolver additionally comprises sure different
customary covenants. The compensation of borrowings underneath the MLP Revolver is
topic to acceleration upon the incidence of an occasion of default. As of
December 31, 2020, the excellent borrowings underneath the MLP Revolver totaled
$377.1 million. We intend to make use of the MLP Revolver to buy extra restricted
partnership pursuits in OpCo sooner or later, within the occasion OpCo needs to promote
such extra pursuits to us, for different acquisitions and for common
company functions.
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Contractual Obligations and Industrial Commitments
Along with long-term debt, we're required to make funds referring to
numerous kinds of obligations. The next desk summarizes our contractual
obligations as of December 31, 2020 referring to long-term debt, curiosity
funds, working leases and buy obligations for the following 5 years and
thereafter. The quantities don't embrace deferred fees and different objects
labeled in different liabilities within the consolidated stability sheet because of the
uncertainty of the longer term cost schedule.
                                                      Cost Due by Interval
                                Whole        2021       2022-2023       2024-2025      Thereafter

                                                      ({dollars} in hundreds of thousands)
Contractual Obligations
Whole Debt:
Principal (1)                 $ 399.7      $    -      $    399.7      $       -      $         -
Curiosity (2)                     20.0         8.9            11.1              -                -
Working leases (3)              1.2         0.8             0.4              -                -
Buy obligations (4)         37.9        37.9               -              -                -
Whole                         $ 458.8$ 47.6$    411.2      $       -      $         -


______________________________

(1)  Lengthy-Time period Debt. Lengthy-term debt consists of the OpCo Revolver and MLP
Revolver.
(2)  Curiosity Funds. Curiosity funds are based mostly on rates of interest in impact
at December 31, 2020.
(3)  Working Leases. Symbolize noncancelable working leases with respect to
rail vehicles which might be subleased to OpCo and two website lease agreements for numerous
intervals. Pursuant to the location lease agreements, OpCo leases the true property
underlying Lake Charles Olefins and Calvert Metropolis Olefins. OpCo can be granted
rights to entry and use sure different parts of Westlake's manufacturing
amenities which might be essential to function OpCo's ethylene manufacturing amenities.
OpCo owes Westlakeone greenback per website per yr. Every of the location lease
agreements has a time period of fifty years.
(4)  Buy Obligations. Buy obligations embrace agreements to buy
items and companies which might be enforceable and legally binding and that specify all
vital phrases, together with a minimal amount and worth. We're social gathering to
numerous obligations to buy items and companies, together with the Companies and
Secondment Settlement, within the abnormal course of our enterprise, in addition to numerous
buy commitments for our capital tasks.
Off-Stability Sheet Preparations
None.
Important Accounting Insurance policies
Important accounting insurance policies are these which might be necessary to our monetary
situation and require administration's most troublesome, subjective or advanced
judgments. Completely different quantities can be reported underneath totally different working
circumstances or underneath different assumptions. We now have evaluated the accounting
insurance policies used within the preparation of the accompanying consolidated monetary
statements and associated notes and consider these insurance policies are affordable and
applicable.
We apply these accounting insurance policies that we consider greatest mirror the underlying
enterprise and financial occasions, according to GAAP. Our extra essential accounting
insurance policies embrace these associated to long-lived belongings, truthful worth estimates,
goodwill impairment and environmental and authorized obligations. Inherent in such
insurance policies are sure key assumptions and estimates. We periodically replace the
estimates used within the preparation of the monetary statements based mostly on our
newest evaluation of the present and projected enterprise and common financial
atmosphere. Our vital accounting insurance policies are summarized in Notice 1 to the
consolidated monetary statements. We consider the next to be our most
essential accounting insurance policies utilized within the preparation of our monetary
statements.
Lengthy-Lived Property. Key estimates associated to long-lived belongings embrace helpful
lives, recoverability of carrying values and existence of any retirement
obligations. Such estimates could possibly be considerably modified. The carrying values
of long-lived belongings could possibly be impaired by vital modifications or projected
modifications in provide and demand fundamentals (which might have a damaging affect on
working charges or margins), new technological developments, new rivals
with vital uncooked materials or different price benefits, hostile modifications
related to the U.S. and world economies, the cyclical nature of the
chemical and refining industries and uncertainties related to governmental
actions.
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We consider long-lived belongings for potential impairment indicators at any time when
occasions or modifications in circumstances point out that the carrying quantity of an asset
will not be recoverable, together with when damaging circumstances similar to vital
present or projected working losses exist. Our judgments concerning the
existence of impairment indicators are based mostly on authorized elements, market circumstances
and the operational efficiency of our companies. Precise impairment losses
incurred might differ considerably from quantities estimated. Lengthy-lived belongings
assessed for impairment are grouped on the lowest stage for which identifiable
money flows are largely impartial of the money flows of different belongings and
liabilities. Moreover, future occasions might trigger us to conclude that
impairment indicators exist and that related long-lived belongings of our
companies are impaired. Any ensuing impairment loss might have a fabric
hostile affect on our monetary situation and outcomes of operations.
The estimated helpful lives of long-lived belongings vary from three to 40 years.
Depreciation and amortization of those belongings, together with amortization of
deferred turnaround prices, underneath the straight-line methodology over their estimated
helpful lives totaled $103.2 million, $107.3 million and $108.8 million in 2020,
2019 and 2018, respectively. If the helpful lives of the belongings have been discovered to be
shorter than initially estimated, depreciation or amortization fees can be
accelerated.
We defer the prices of deliberate main upkeep actions, or turnarounds, and
amortize the prices over the interval till the following deliberate turnaround of the
affected unit. Whole prices deferred on turnarounds have been $3.7 million, $1.2
million and $0.1 million in 2020, 2019 and 2018, respectively. Amortization in
2020, 2019 and 2018 of beforehand deferred turnaround prices was $11.8 million,
$17.3 million and $20.1 million, respectively. As of December 31, 2020, deferred
turnaround prices, web of gathered amortization, totaled $32.3 million.
Expensing turnaround prices as incurred would doubtless lead to higher
variability of our quarterly working outcomes and would adversely have an effect on our
monetary place and outcomes of operations.
Extra info regarding long-lived belongings and associated depreciation and
amortization seems in Notes 5 and seven to the audited consolidated monetary
statements included inside this report.
Truthful Worth Estimates. We develop estimates of truthful worth to allocate the
buy worth paid to accumulate a enterprise to the belongings acquired and liabilities
assumed in an acquisition, to evaluate impairment of long-lived belongings and
goodwill and to document spinoff devices. We use all out there info
to make these truthful worth determinations, together with the engagement of third-party
consultants. At December 31, 2020, recorded goodwill was $5.8 million, all of
which was related to the acquisition of the Longview Pipeline as a part of
the acquisition of Westlake'sLongview manufacturing amenities. As well as, we
document all spinoff devices at truthful worth. The truthful worth of the monetary
devices is estimated utilizing quoted market costs in lively markets and
observable market-based inputs or unobservable inputs which might be corroborated by
market information when lively markets aren't out there or unobservable inputs that
aren't corroborated by market information.
Goodwill impairment. Goodwill is evaluated for impairment at the least yearly, or
when occasions or modifications in circumstances point out the truthful worth of a reporting
unit with goodwill has been decreased beneath its carrying worth. We carry out our
annual impairment evaluation in October. We could elect to carry out an optionally available
qualitative evaluation to find out whether or not a quantitative impairment evaluation
is required. The qualitative evaluation considers elements similar to macroeconomic
circumstances, business and market concerns, price elements associated to uncooked
supplies and labor, present and projected monetary efficiency, modifications in
administration or technique, and market capitalization. Alternatively, we could
unconditionally elect to bypass the qualitative evaluation and carry out a
quantitative goodwill impairment evaluation in any interval. Vital
assumptions used within the discounted money circulate projection impairment evaluation
for goodwill embrace gross sales volumes based mostly on manufacturing capacities. The longer term
money flows are discounted to current worth utilizing a reduction price. The
vital assumptions utilized in figuring out the truthful worth of the reporting unit
utilizing the market worth methodology embrace the willpower of applicable
market comparables and the estimated multiples of EBITDA a prepared purchaser is
more likely to pay. We elected to carry out the quantitative evaluation throughout 2020,
and such evaluation didn't point out impairment of the goodwill. Below the
discounted money circulate methodology, even when the truthful worth of OpCo decreased by
10%, the carrying worth of OpCo wouldn't exceed its truthful worth.
Environmental and Authorized Obligations. We seek the advice of with numerous professionals to
help us in making estimates referring to environmental prices and authorized
proceedings. We accrue an expense after we decide that it's possible {that a}
legal responsibility has been incurred and the quantity in all fairness estimable. Whereas we
consider that the quantities recorded within the accompanying consolidated monetary
statements associated to those contingencies are based mostly on the very best estimates and
judgments out there, the precise outcomes might differ from our estimates.
Extra details about sure authorized proceedings and environmental issues
seems in Merchandise 1. Enterprise-Environmental and in Notice 17 to the consolidated
monetary statements included inside this report.
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The Partnership has conditional asset retirement obligations for the removing and
disposal of hazardous supplies and the remediation of the reason for any such
launch from sure of the Partnership's manufacturing amenities. Nonetheless, no
asset retirement obligations have been acknowledged as a result of the truthful worth of the
conditional authorized obligation can't be measured because of the indeterminate
settlement date of the duty. Settlement of those conditional asset
retirement obligations isn't anticipated to have a fabric hostile impact on the
Partnership's monetary situation, outcomes of operations or money flows in any
particular person reporting interval.
Latest Accounting Pronouncements
See Notice 1 to the consolidated monetary statements included inside this report
for a full description of latest accounting pronouncements, together with anticipated
dates of adoption and estimated results on outcomes of operations and monetary
situation, which is included herein by reference.
Merchandise 7A. Quantitative and Qualitative Disclosures about Market Danger
Commodity Value Danger
A considerable portion of the Partnership's merchandise and uncooked supplies are
commodities whose costs fluctuate as market provide and demand fundamentals
change. Nonetheless, our direct publicity to commodity worth danger is restricted to
roughly 5% of our whole ethylene manufacturing, which is the portion offered to
third events. We consider now we have considerably mitigated our oblique publicity
to commodity worth fluctuation throughout the time period of the Ethylene Gross sales Settlement
by means of the minimal dedication and the cost-plus based mostly pricing. Moreover, we
could use short-term spinoff devices to cut back worth volatility danger on
feedstocks and ethylene related to the manufacturing and gross sales to 3rd
events. We entered into a few of these agreements in 2018 and 2019.All
spinoff positions have been settled as of December 31, 2020.
Curiosity Price Danger
We're uncovered to rate of interest danger with respect to our excellent debt, all
of which is variable price debt. At December 31, 2020, we had variable price debt
of $399.7 million excellent, all of which was owed to wholly-owned
subsidiaries of Westlake, and accrues curiosity at a variable price of LIBOR plus
200 foundation factors. On March 19, 2020, the Partnership entered into an modification
to the MLP Revolver to increase the maturity date to March 19, 2023 and add a
phase-out provision for LIBOR, which is to get replaced by an alternate benchmark
price. The amended credit score settlement bears curiosity at a variable price of both
(a) LIBOR plus 2.0% or, if LIBOR is not out there, (b) Alternate Base Price
plus 1.0%. The weighted common variable rate of interest of our debt as of
December 31, 2020 was 2.2%. We are going to proceed to be topic to rate of interest danger
with respect to our variable price debt in addition to the danger of upper curiosity
price if and when this debt is refinanced. A hypothetical enhance in our common
rate of interest on variable price debt by 100 foundation factors would enhance our
annual curiosity expense by roughly $4.0 million, based mostly on the December 31,
2020 debt stability.
LIBOR is used as a reference price for all of our excellent variable price debt
as of December 31, 2020. The phase-out of LIBOR is ready to start on the finish of
2021 and conclude by June 30, 2023. We're at the moment reviewing how the LIBOR
phase-out will have an effect on us, however we don't anticipate the affect to be materials.
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Merchandise 8. Monetary Statements and Supplementary Information
                   Index to Consolidated Monetary Statements

                                                                                      Web page

Administration's Report on Inner Management over Monetary Reporting                          44
  Report of Unbiased Registered Public Accounting Agency                                 45
Consolidated F  inancial Statements:
Consolidated Stability Sheets as of December 31, 2020 and 2019                              47
Consolidated Statements of Operations for the Years Ended December 31, 2020, 2019         48
and 2018
Consolidated Statements of Modifications in Fairness for the Years Ended December 31,             49
2020, 2019 and 2018
Consolidated Statements of Money Flows for the Years Ended December 31, 2020, 2019         50
and 2018
Notes to Consolidated Monetary Statements                                                51


Monetary assertion schedules not included on this Kind 10-Okay have been omitted
as a result of they aren't relevant or as a result of the required info is proven in
the consolidated monetary statements or notes thereto.
        MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The administration of Westlake Chemical Companions LP (the "Partnership") is
liable for establishing and sustaining enough inner management over
monetary reporting. The Partnership's inner management over monetary reporting
is a course of designed to supply affordable assurance concerning the reliability
of monetary reporting and the preparation of monetary statements for exterior
functions in accordance with usually accepted accounting rules.
The administration of the Partnership assessed the effectiveness of the
Partnership's inner management over monetary reporting as of December 31, 2020.
In making this evaluation, administration used the factors set forth by the
Committee of Sponsoring Organizations of the Treadway Fee in Inner
Management-Built-in Framework (2013). Primarily based on its evaluation, Partnership's
administration has concluded that the Partnership's inner management over monetary
reporting was efficient as of December 31, 2020 based mostly on these standards.
PricewaterhouseCoopers LLP, the impartial registered public accounting agency
that audited the monetary statements included on this Annual Report on Kind
10-Okay, has additionally audited the effectiveness of inner management over monetary
reporting as of December 31, 2020 as acknowledged of their report that seems on the
following web page.

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Contents

            Report of Unbiased Registered Public Accounting Agency

To companions of Westlake Chemical Companions LP and Board of Administrators of Westlake Chemical Companions GP LLC

Opinions on the Monetary Statements and Inner Management over Monetary
Reporting
We now have audited the accompanying consolidated stability sheets of Westlake
Chemical Companions LP and its subsidiaries (the "Partnership") as of December 31,
2020 and 2019, and the associated consolidated statements of operations, of modifications
in fairness and of money flows for every of the three years within the interval ended
December 31, 2020, together with the associated notes (collectively known as the
"consolidated monetary statements"). We even have audited the Partnership's
inner management over monetary reporting as of December 31, 2020, based mostly on
standards established in Inner Management - Built-in Framework (2013) issued by
the Committee of Sponsoring Organizations of the Treadway Fee (COSO).

In our opinion, the consolidated monetary statements referred to above current
pretty, in all materials respects, the monetary place of the Partnership as
of December 31, 2020 and 2019, and the outcomes of its operations and its money
flows for every of the three years within the interval ended December 31, 2020 in
conformity with accounting rules usually accepted in the USA of
America. Additionally in our opinion, the Partnership maintained, in all materials
respects, efficient inner management over monetary reporting as of December 31,
2020, based mostly on standards established in Inner Management - Built-in Framework
(2013) issued by the COSO.
Foundation for Opinions
The Partnership's administration is liable for these consolidated monetary
statements, for sustaining efficient inner management over monetary reporting,
and for its evaluation of the effectiveness of inner management over monetary
reporting, included within the accompanying Administration's Report on Inner Management
over Monetary Reporting. Our duty is to precise opinions on the
Partnership's consolidated monetary statements and on the Partnership's
inner management over monetary reporting based mostly on our audits. We're a public
accounting agency registered with the Public Firm Accounting Oversight Board
(United States) (PCAOB) and are required to be impartial with respect to the
Partnership in accordance with the U.S. federal securities legal guidelines and the
relevant guidelines and laws of the Securities and Alternate Fee and
the PCAOB.

We carried out our audits in accordance with PCAOB requirements. These requirements require that we plan and carry out the audits in such a manner as to acquire affordable assurance that the consolidated monetary statements are free from materials misstatement, that these consequence from error or fraud, and whether or not efficient inner management of monetary info has been maintained in all materials respects.

Our audits of the consolidated monetary statements included performing
procedures to evaluate the dangers of fabric misstatement of the consolidated
monetary statements, whether or not on account of error or fraud, and performing procedures
that reply to these dangers. Such procedures included analyzing, on a check
foundation, proof concerning the quantities and disclosures within the consolidated
monetary statements. Our audits additionally included evaluating the accounting
rules used and vital estimates made by administration, in addition to
evaluating the general presentation of the consolidated monetary statements.
Our audit of inner management over monetary reporting included acquiring an
understanding of inner management over monetary reporting, assessing the danger
{that a} materials weak point exists, and testing and evaluating the design and
working effectiveness of inner management based mostly on the assessed danger. Our
audits additionally included performing such different procedures as we thought-about obligatory
within the circumstances. We consider that our audits present an inexpensive foundation for
our opinions.
Definition and Limitations of Inner Management over Monetary Reporting
An organization's inner management over monetary reporting is a course of designed to
present affordable assurance concerning the reliability of monetary reporting
and the preparation of monetary statements for exterior functions in accordance
with usually accepted accounting rules. An organization's inner management over
monetary reporting consists of these insurance policies and procedures that (i) pertain to
the upkeep of information that, in affordable element, precisely and pretty
mirror the transactions and inclinations of the belongings of the corporate; (ii)
present affordable assurance that transactions are recorded as essential to
allow preparation of monetary statements in accordance with usually accepted
accounting rules, and that receipts and expenditures of the corporate are
being made solely in accordance with authorizations of administration and administrators of
the
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firm; and (iii) present affordable assurance concerning prevention or well timed
detection of unauthorized acquisition, use, or disposition of the corporate's
belongings that would have a fabric impact on the monetary statements.

Due to its inherent limitations, inner management over monetary reporting
could not stop or detect misstatements. Additionally, projections of any analysis of
effectiveness to future intervals are topic to the danger that controls could grow to be
insufficient due to modifications in circumstances, or that the diploma of compliance
with the insurance policies or procedures could deteriorate.
Important Audit Issues
The essential audit matter communicated beneath is a matter arising from the
present interval audit of the consolidated monetary statements that was
communicated or required to be communicated to the audit committee and that (i)
pertains to accounts or disclosures which might be materials to the consolidated
monetary statements and (ii) concerned our particularly difficult, subjective,
or advanced judgments. The communication of essential audit issues doesn't alter
in any manner our opinion on the consolidated monetary statements, taken as a
entire, and we're not, by speaking the essential audit matter beneath,
offering a separate opinion on the essential audit matter or on the accounts or
disclosures to which it relates.
Income from the Ethylene Gross sales Settlement
As described in Notes 2 and 11 to the consolidated monetary statements, the
Partnership acknowledged web gross sales to Westlake Chemical Company ("Westlake")
of $888 million for the yr ended December 31, 2020, together with a purchaser
deficiency payment of $70 million. The Ethylene Gross sales Settlement requires Westlake to
buy a minimal quantity of ethylene every year equal to 95% of Westlake
Chemical OpCo LP's ("OpCo") deliberate ethylene manufacturing per yr, topic to
sure exceptions and a most dedication of three.8 billion kilos per yr. The
payment for every pound of ethylene bought by Westlake from OpCo will equal (i)
the precise worth OpCo pays Westlake to buy ethane, (ii) plus the precise
worth OpCo pays Westlake to buy pure gasoline, (iii) plus OpCo's estimated
working prices divided by OpCo's deliberate ethylene manufacturing for the yr, (iv)
plus a five-year common of OpCo's anticipated future upkeep capital
expenditures and different turnaround expenditures divided by OpCo's deliberate
ethylene manufacturing capability for the yr, (v) much less the proceeds acquired by
OpCo from the sale of co-products related to producing the ethylene
bought by Westlake, (vi) plus a $0.10 per pound margin. Two of the
Partnership's amenities have been impacted by Hurricanes Laura and Delta, which
resulted in power majeure occasions underneath the Ethylene Gross sales Settlement. Consequently
of the power majeure occasions, the Partnership acknowledged a purchaser deficiency payment.
The client deficiency payment represents mounted margin and unavoided working and
upkeep capital expenditures and upkeep bills per pound of quantity
dedicated by Westlake throughout the power majeure occasion.

The principal concerns for our willpower that performing procedures
referring to income from the Ethylene Gross sales Settlement is a essential audit matter
are the numerous audit effort in performing procedures and evaluating the
calculation of the payment for every pound of ethylene and the client deficiency payment.

Addressing the matter concerned performing procedures and evaluating audit
proof in reference to forming our total opinion on the consolidated
monetary statements. These procedures included testing the effectiveness of
controls referring to the accuracy of the charges used to find out income from the
Ethylene Gross sales Settlement. These procedures additionally included, amongst others, testing
the completeness and accuracy of underlying inputs used within the worth and purchaser
deficiency payment calculation, and testing the accuracy of the minimal quantity of
ethylene bought by Westlake as a part of the Ethylene Gross sales Settlement.

/ s /PricewaterhouseCoopers LLP

Houston, TexasMarch 2, 2021

We now have been performing because the auditor of the restricted partnership since 2014.

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                         WESTLAKE CHEMICAL PARTNERS LP
                          CONSOLIDATED BALANCE SHEETS
                                                                              December 31,           December 31,
                                                                                  2020                   2019

                                                                                  (in hundreds of {dollars},
                                                                                     besides unit quantities)
                               ASSETS
Present belongings
Money and money equivalents                                                  $        17,154$     19,923
Receivable underneath the Funding Administration Settlement-Westlake
Chemical
Company ("Westlake")                                                           123,228               162,773
Accounts receivable, net-Westlake                                                  108,028                42,847
Accounts receivable, net-third events                                              11,029                 9,914
Inventories                                                                          3,474                 2,484
Pay as you go bills and different present belongings                                              392                   470
Whole present belongings                                                               263,305               238,411
Property, plant and gear, web                                               1,050,677             1,102,995
Goodwill                                                                             5,814                 5,814
Deferred fees and different belongings, web                                              36,692                46,236
Whole belongings                                                               $     1,356,488$  1,393,456
                            LIABILITIES
Present liabilities
Accounts payable-Westlake                                                  $         7,855          $     15,201
Accounts payable-third events                                                      13,131                 6,141
Accrued and different liabilities                                                       18,768                17,507
Whole present liabilities                                                           39,754                38,849
Lengthy-term debt payable to Westlake                                                 399,674               399,674
Deferred revenue taxes                                                                1,542                 1,649
Different liabilities                                                                      381                 1,149
Whole liabilities                                                                  441,351               441,321

Commitments and contingencies (notice 17)

                               EQUITY

Strange holders of private and non-private models (21,076,673 and 21,072,315 models issued and excellent at December 31, 2020 and December 31, 2019, respectively)

                                                                      471,701               471,736

Frequent providerWest Lake (14,122,230 and 14,122,230 shares issued and excellent at
December 31, 2020 and December 31, 2019, respectively)

                              48,270                48,350
Normal partner-Westlake                                                          (242,572)             (242,572)
Whole Westlake Chemical Companions LP companions' capital                              277,399               277,514
Noncontrolling curiosity in Westlake Chemical OpCo LP ("OpCo")                      637,738               674,621
Whole fairness                                                                       915,137               952,135
Whole liabilities and fairness                                               

$ 1,356,488$ 1,393,456

The accompanying notes are an integral a part of the consolidated monetary report

                                  statements.
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                         WESTLAKE CHEMICAL PARTNERS LP
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                 Yr Ended December 31,
                                                                      2020                  2019                 2018

                                                                                (in hundreds of {dollars},
                                                                          besides unit quantities and per unit information)
Income
Internet sales-Westlake                                              $     888,245$   937,625$ 1,074,957
Internet co-products, ethylene and different sales-third events                78,425              154,246              210,665
Whole web gross sales                                                       966,670            1,091,871            1,285,622
Price of gross sales                                                         587,787              712,443              908,463
Gross revenue                                                          378,883              379,428              377,159
Promoting, common and administrative bills                           25,895               29,278               27,590
Earnings from operations                                                352,988              350,150              349,569
Different revenue (expense)
Curiosity expense-Westlake                                             (12,038)             (19,623)             (21,433)
Different revenue, web                                                         733                3,096                2,457
Earnings earlier than revenue taxes                                            341,683              333,623              330,593
Provision for revenue taxes                                                564                  728                   22
Internet revenue                                                            341,119              332,895              330,571

Much less: Internet revenue attributable to non-controlling curiosity in OpCo

                                                               274,952              271,914              281,224

Internet revenue attributable to Westlake Chemical Companions LP
and the curiosity of the restricted companions within the web revenue

                                $      66,167$    60,981$    49,347
Internet revenue attributable to Westlake Chemical Companions LP
per restricted associate
unit (fundamental and diluted)
Frequent models                                                    $        1.88$      1.77$      1.51
Weighted common restricted associate models excellent
(fundamental and diluted)
Frequent units-publicly and privately held                           21,073,041           20,365,828           18,118,628
Frequent units-Westlake                                              14,122,230           14,122,230           14,122,230


The accompanying notes are an integral a part of the consolidated monetary report

                                  statements.
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                         WESTLAKE CHEMICAL PARTNERS LP
                  CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
                                                                               Partnership
                                                 Frequent                                                         Collected
                                             Unitholders -             Frequent               Normal                Different               Noncontrolling
                                               Public and           Unitholder -           Associate -           Complete              Curiosity
                                             Privately Held           Westlake             Westlake               Earnings                   in OpCo                Whole

                                                                                               (in hundreds of {dollars})
Balances at December 31, 2017               $     411,228$     50,265$ (241,958)         $          279          $        778,935$ 998,749
Internet revenue                                         27,320                21,294                 733                       -                   281,224            330,571
Internet impact of money circulate hedge                           -                     -                   -                    (279)                        -               (279)
Models issued for vested phantom models                 291                     -                   -                       -                         -                291
Quarterly distribution to unitholders             (29,231)              (22,785)             (1,347)                      -                         -            (53,363)
Quarterly distribution to
noncontrolling curiosity retained in
OpCo by Westlake                                        -                     -                   -                       -                  (341,888)          (341,888)
Balances at December 31, 2018               $     409,608$     48,774$ (242,572)         $            -          $        718,271$ 934,081
Internet revenue                                         35,978                25,003                   -                       -                   271,914            332,895
Models issued for vested phantom models                 146                     -                   -                       -                         -                146
Internet proceeds from personal placement
of widespread models                                    62,661                     -                   -                       -                         -   

62,661

Quarterly distribution to unitholders             (36,657)              (25,427)                  -                       -                         -            (62,084)
Quarterly distribution to
noncontrolling curiosity retained in
OpCo by Westlake                                        -                     -                   -                       -                  (315,564)          (315,564)
Balances at December 31, 2019               $     471,736$     48,350$ (242,572)         $            -          $        674,621$ 952,135
Internet revenue                                         39,618                26,549                   -                       -                   274,952            341,119

Models issued for vested phantom models                  81                     -                   -                       -                         -                 81
Quarterly distribution to unitholders             (39,734)              (26,629)                  -                       -                         -            (66,363)
Quarterly distribution to
noncontrolling curiosity retained in
OpCo by Westlake                                        -                     -                   -                       -                  (311,835)  

(311 835)

Balances at December 31, 2020               $     471,701$     48,270$ (242,572)         $            -          $        

637,738 $ 915,137

The accompanying notes are an integral a part of the consolidated monetary report

                                  statements.
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                         WESTLAKE CHEMICAL PARTNERS LP
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                              Yr Ended December 31,
                                                                     2020               2019               2018

                                                                             (in hundreds of {dollars})
Money flows from working actions
Internet revenue                                                       $ 341,119$ 332,895$ 330,571
Changes to reconcile web revenue to web money offered
by
working actions
Depreciation and amortization                                      103,154            107,320            108,842

Loss from disposition of property, plant and gear               1,000                515              1,849
Different beneficial properties, web                                                      (269)              (459)              (347)
Modifications in working belongings and liabilities
Accounts receivable-third events                                     (953)             6,934              1,470
Internet accounts receivable-Westlake                                   (71,975)             2,358               (442)
Inventories                                                           (990)             1,126              1,202
Pay as you go bills and different present belongings                               78               (100)               (56)
Accounts payable                                                     4,247                421             (4,476)
Accrued and different liabilities                                        1,672                985             (1,974)
Different, web                                                          (3,686)            (1,188)              (488)
Internet money offered by working actions                          373,397            450,807            436,151
Money flows from investing actions
Additions to property, plant and gear                         (36,968)           (43,707)           (39,862)

Investments with West Lake underneath the funding administration contract

                                                         (349,000)          (529,445)          (384,000)
Maturities of investments with Westlake underneath the
Funding Administration
Settlement                                                          388,000            515,445            372,050

Internet money offered by (used for) investing actions                 2,032            (57,707)           (51,812)
Money flows from financing actions
Internet proceeds from personal placement of widespread models                      -             62,661                  -
Proceeds from debt payable to Westlake                                   -            123,511              3,648

Quarterly distributions to minority pursuits retained in OpCo by
West Lake

                                                          (311,835)          (315,564)          (341,888)
Quarterly distributions to unitholders                             (66,363)           (62,084)           (53,363)
Reimbursement of debt payable to Westlake                                    -           (201,445)                 -
Internet money used for financing actions                            (378,198)          (392,921)          (391,603)
Internet enhance (lower) in money and money equivalents                (2,769)               179             (7,264)
Money and money equivalents at starting of the yr                  19,923             19,744             27,008
Money and money equivalents at finish of the yr                     $  17,154

$ 19,923$ 19,744

The accompanying notes are an integral a part of the consolidated monetary report

                                  statements.
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                         WESTLAKE CHEMICAL PARTNERS LP
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
        (in hundreds of {dollars}, besides unit quantities and per unit information)


1. Description of Enterprise and Vital Accounting Insurance policies
Description of Enterprise
Westlake Chemical Companions LP ("Westlake Chemical Companions LP" or the
"Partnership") is a Delaware restricted partnership shaped in March 2014 to
function, purchase and develop ethylene manufacturing amenities and associated belongings.
On August 4, 2014, the Partnership accomplished its preliminary public providing (the
"IPO") of 12,937,500 widespread models representing restricted associate pursuits.
In reference to the IPO, the Partnership acquired a ten.6% curiosity in
Westlake Chemical OpCo LP ("OpCo") and a 100% curiosity in Westlake Chemical OpCo
GP LLC ("OpCo GP"), which is the overall associate of OpCo. OpCo owns three
ethylene manufacturing amenities and a standard provider ethylene pipeline
(collectively, the "Contributed Property"). As of December 31, 2018, the
Partnership had an mixture 18.3% restricted associate curiosity in OpCo. On March
29, 2019, the Partnership bought a further 4.5% newly-issued restricted
associate curiosity in OpCo for roughly $201,445, leading to an mixture
22.8% restricted associate curiosity in OpCo, efficient January 1, 2019. The remaining
77.2% restricted associate curiosity in OpCo is owned by Westlake Chemical
Company. References to "Westlake" refer collectively to Westlake Chemical
Company and its subsidiaries, apart from the Partnership, OpCo and OpCo GP.
OpCo and Westlake entered into an ethylene gross sales settlement (the "Ethylene Gross sales
Settlement") pursuant to which the Partnership generates a considerable majority
of its income. For extra info, see Notice 2.
The Partnership sells ethylene manufacturing in extra of volumes offered to Westlake,
in addition to all the co-products ensuing from the ethylene manufacturing,
together with propylene, crude butadiene, pyrolysis gasoline and hydrogen, straight
to 3rd events on both a spot or contract foundation. Co-products offered to 3rd
events are transported by rail or truck. Internet proceeds (after transportation and
different prices) from the gross sales of ethylene co-products that consequence from the
manufacturing of ethylene bought by Westlake are netted towards the ethylene
worth charged to Westlake underneath the Ethylene Gross sales Settlement, thereby decreasing
the Partnership's publicity to fluctuations out there costs of those
co-products.
Foundation of Presentation
The accompanying consolidated monetary statements have been ready in
conformity with the accounting rules usually accepted in the United
States.
The Partnership holds a 22.8% restricted associate curiosity and all the
non-economic common associate curiosity in OpCo. The remaining 77.2% restricted
associate curiosity in OpCo is owned straight by Westlake, which has no rights to
direct the actions that the majority considerably affect the financial efficiency of
OpCo. On account of the truth that considerably all of OpCo's actions are
performed on behalf of Westlake, and the truth that OpCo displays
disproportionality of voting rights to financial curiosity, OpCo was deemed to be
a variable curiosity entity. The Partnership, by means of its possession of OpCo's
common associate, has the ability to direct the actions that the majority considerably
affect the financial efficiency of OpCo, and it additionally has the duty or proper
to soak up losses or obtain advantages from OpCo that would probably be
vital to OpCo. As such, the Partnership was decided to be OpCo's
main beneficiary and subsequently consolidates OpCo's outcomes of operations and
monetary place. Westlake's retained curiosity of 77.2% is recorded as
noncontrolling curiosity within the Partnership's consolidated monetary statements.
Money and Money Equivalents
Money equivalents include extremely liquid investments which might be readily
convertible into money and have a maturity of three months or much less on the date of
acquisition.
Allowance for Credit score Losses
The willpower of the allowance for credit score losses is predicated on estimation of
the quantity of accounts receivable that the Partnership believes are unlikely to
be collected. Estimating this quantity requires evaluation of the monetary power
of the Partnership's clients, the usage of historic expertise, the
Partnership's accounts receivable aged trial stability, buyer particular
collectability evaluation and an analysis of financial circumstances. The allowance
for credit score losses is reviewed quarterly. Late balances over 90 days and excessive
danger accounts, as decided by the evaluation of monetary power of consumers,
are reviewed individually for collectability.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Inventories
Inventories primarily embrace product, materials and provides. Inventories are
acknowledged on the decrease of price or web realizable worth. Price is decided utilizing
the first-in, first-out ("FIFO") or common methodology.
Property, Plant and Gear
Property, plant and gear are carried at price, web of gathered
depreciation. Price consists of expenditures for enhancements and betterments that
lengthen the helpful lives of the belongings and curiosity capitalized on vital
capital tasks.
Curiosity expense is capitalized for qualifying belongings underneath building.
Capitalized curiosity prices are included in property, plant and gear and are
depreciated over the helpful lifetime of the associated asset. Capitalized curiosity was
zero for the years ended December 31, 2020 and 2019 and $175 for the yr ended
December 31, 2018. Restore and upkeep prices are charged to operations as
incurred. Beneficial properties and losses on the disposal or retirement of property, plant and
gear are mirrored within the assertion of operations when the belongings are offered
or retired.
The accounting steering for asset retirement obligations requires the recording
of liabilities equal to the truthful worth of asset retirement obligations and
corresponding extra asset prices, when there's a authorized asset retirement
obligation because of present or enacted legislation, statute or contract. The
Partnership has conditional asset retirement obligations for the removing and
disposal of hazardous supplies from sure of the Partnership's manufacturing
amenities. Nonetheless, no asset retirement obligations have been acknowledged
as a result of the truthful worth of the conditional authorized obligation can't be measured
because of the indeterminate settlement date of the duty. Settlement of those
conditional asset retirement obligations isn't anticipated to have a fabric
hostile impact on the Partnership's monetary situation, outcomes of operations
or money flows in any particular person reporting interval.
Depreciation is offered by using the straight-line methodology over the
estimated helpful lives of the belongings as follows:
Classification                    Years

Buildings and enhancements             40
Plant and gear                    25
Ethylene pipeline                      35
Different                                3-15


Impairment of Lengthy-Lived Property
The accounting steering for the impairment or disposal of long-lived belongings
requires that the Partnership assess long-lived belongings for impairment at any time when
occasions or modifications in circumstances point out that the carrying quantity of an asset
will not be recoverable, together with when damaging circumstances similar to vital
present or projected working losses exist. Different elements thought-about by the
Partnership when figuring out if an impairment evaluation is important embrace,
however aren't restricted to, vital modifications or projected modifications in provide and
demand fundamentals (which might have a damaging affect on working charges or
margins), new technological developments, new rivals with vital uncooked
materials or different price benefits, hostile modifications related to the United
States and world economies and uncertainties related to governmental
actions. Lengthy-lived belongings assessed for impairment are grouped on the lowest
stage for which identifiable money flows are largely impartial of the money
flows of different belongings and liabilities. Recoverability of belongings to be held and
used is measured by a comparability of the carrying quantity of an asset to future
web undiscounted money flows anticipated to be generated by the asset. Property are
thought-about to be impaired if the carrying quantity of an asset exceeds the longer term
undiscounted money flows. The impairment acknowledged is measured by the quantity by
which the carrying quantity of the belongings exceeds the truthful worth of the belongings.
Property to be disposed of are reported on the decrease of the carrying quantity or
estimated truthful worth much less prices to promote.
Impairment of Goodwill
The accounting steering requires that goodwill be examined for impairment at the least
yearly, or when occasions or modifications in circumstances point out the truthful worth of
a reporting unit with goodwill has been decreased beneath its carrying worth. The
impairment check for the recorded goodwill was carried out in October 2020 and did
not point out impairment of the goodwill. As of December 31, 2020, the
Partnership's recorded goodwill was $5,814. See Notice 6 for extra info on
the Partnership's annual goodwill impairment check.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Turnaround Prices
The Partnership accounts for turnaround prices underneath the deferral methodology.
Turnarounds are the scheduled and required shutdowns of particular working models
with the intention to carry out deliberate main upkeep actions. The prices associated to
the numerous overhaul and refurbishment actions embrace upkeep
supplies, components and direct labor prices. The prices of the turnaround are
deferred when incurred on the time of the turnaround and amortized (inside
depreciation and amortization) on a straight-line foundation till the following deliberate
turnaround, which ranges from 5 to 6 years. Deferred turnaround prices are
introduced as a part of different belongings, web. The money outflows associated to
these prices are included in working actions within the consolidated assertion
of money flows.
Focus of Credit score Danger
Monetary devices which probably topic the Partnership to focus
of danger consist principally of commerce receivables from third-party clients who
buy ethylene and ethylene co-products. The Partnership performs periodic
credit score evaluations, as relevant, of the purchasers' monetary situation and
usually doesn't require collateral. The Partnership maintains allowances for
potential losses, as relevant.
Income Recognition
Income is acknowledged when OpCo transfers management of inventories to clients.
Quantities acknowledged as revenues mirror the consideration to which OpCo expects
to be entitled in alternate for these inventories. The Partnership and OpCo
incorporate manufacturing quantity and manufacturing price forecasts within the estimated
transaction costs from gross sales to Westlake underneath the Ethylene Gross sales Settlement.
The Partnership acknowledges income and accounts receivable upon transferring
management of inventories to its clients. Ethylene offered to Westlake underneath the
Ethylene Gross sales Settlement is transferred to Westlake instantly after manufacturing
and acknowledged in gross sales. Management of inventories offered to 3rd events usually
transfers upon cargo to the client. The Partnership excludes taxes
collected on behalf of consumers from the estimated contract worth. Provisions
for reductions, rebates and returns are included within the estimate of variable
consideration and mirrored as discount to income in the identical interval because the
associated gross sales.
The Partnership doesn't disclose the worth of unhappy efficiency
obligations as a result of its contracts with clients (1) have an unique anticipated
period of 1 yr or much less or (2) have solely variable consideration which is
allotted to wholly unhappy efficiency obligations that's calculated based mostly
on market costs at a specified date and is allotted to wholly unhappy
efficiency obligations.
The Partnership generates a considerable majority of its income from gross sales to
Westlake underneath the Ethylene Gross sales Settlement. The Ethylene Gross sales Settlement is
supposed to generate a long-term, mounted money margin per pound. See Notice 2 for a
description of the phrases of the Ethylene Gross sales Settlement. Partnership's direct
commodity worth danger is restricted to the gross sales to 3rd events. See the
Partnership's consolidated assertion of operations for the disaggregation of web
gross sales to Westlake and web gross sales to 3rd events.
Transportation and Freight
Quantities billed to clients for freight and dealing with prices on outbound shipments
are included in web gross sales within the consolidated statements of operations.
Transportation and freight prices incurred by the Partnership on outbound
shipments are included in price of gross sales within the consolidated statements of
operations.
Spinoff Devices
The accounting steering for spinoff devices and hedging actions
requires that the Partnership acknowledge all spinoff devices on the
stability sheet at truthful worth, and modifications within the spinoff's truthful worth should be
at the moment acknowledged in earnings or complete revenue, relying on the
designation of the spinoff. If the spinoff is designated as a good worth
hedge, the modifications within the truthful worth of the spinoff and of the hedged merchandise
attributable to the hedged danger are acknowledged in earnings. If the spinoff is
designated as a money circulate hedge, the efficient portion of the change within the truthful
worth of the spinoff is recorded in complete revenue and is acknowledged in
the assertion of operations when the hedged merchandise impacts earnings. Ineffective
parts of modifications within the truthful worth of money circulate hedges are acknowledged in
earnings at the moment.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Environmental Prices
Environmental prices referring to present operations are expensed or capitalized,
as applicable, relying on whether or not such prices present future financial
advantages. Remediation liabilities are acknowledged when the prices are thought-about
possible and could be moderately estimated. Measurement of liabilities is predicated on
at the moment enacted legal guidelines and laws, present expertise and undiscounted
site-specific prices. Environmental liabilities in reference to properties
which might be offered or closed are realized upon such sale or closure, to the extent
they're possible and estimable and never beforehand reserved. Recognition of any
joint and several other liabilities is predicated upon the Partnership's greatest estimate of
its last professional rata share of the legal responsibility.
Earnings Taxes
The Partnership is a restricted partnership and is handled as a partnership for
U.S. federal revenue tax functions and, subsequently, isn't accountable for entity-level
federal revenue taxes. The Partnership is, nonetheless, topic to state and native
revenue taxes. Deferred tax expense or profit is the results of modifications within the
deferred tax belongings and liabilities throughout the interval. Valuation allowances are
recorded towards deferred tax belongings when it's thought-about extra doubtless than not
that the deferred tax belongings won't be realized on a separate tax return
foundation.
Section Reporting
The Partnership solely operates one section (ethylene manufacturing) and all of its
operations are positioned in the USA.
Use of Estimates
The preparation of monetary statements in conformity with accounting rules
usually accepted in the USA of America requires administration to make
estimates and assumptions that have an effect on the reported quantities of belongings,
liabilities, revenues and bills, and the disclosure of contingent belongings and
liabilities. Precise outcomes might differ from these estimates.
On March 11, 2020, the World Well being Group declared the continued
coronavirus (COVID-19) outbreak a pandemic and really helpful containment and
mitigation measures worldwide. The COVID pandemic resulted in widespread hostile
impacts on the worldwide economic system and on our staff, clients and suppliers in
2020. The Partnership didn't expertise vital disruptions to its enterprise
operations in 2020 and doesn't anticipate vital disruptions. Nonetheless, the
affect that COVID-19 may have on the Partnership's monetary situation, outcomes
of operations and money flows can't be estimated with certainty at the moment as
it'll rely on future developments, together with, amongst others, the last word
period, geographic unfold and severity of the virus, the actions to comprise
the virus, the implications of governmental and different measures designed to
stop the unfold of the virus, the event of efficient therapies and
vaccines and their roll out, the affect on the operation of OpCo amenities,
Westlake, clients, suppliers and different third events and the timing and extent
to which regular financial and working circumstances resume.
Different Complete Earnings
The Partnership has not reported consolidated statements of complete revenue
for the years ended December 31, 2020, 2019 and 2018 on account of immateriality of the
parts of different complete revenue.
Latest Accounting Pronouncements
Reference Price Reform (ASU No. 2020-04)
In March 2020, the FASB issued an accounting requirements replace to supply
optionally available expedients and exceptions for making use of usually accepted accounting
rules to contracts, hedging relationships and different transactions affected
by reference price reform, if sure standards are met. The amendments on this
replace are efficient for all entities from January 1, 2020 by means of December 31,
2022. The Partnership is within the strategy of evaluating the adoption of this
optionally available accounting requirements replace as sure exceptions offered underneath this
steering could also be relevant to future reference price reform associated transitions.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Not too long ago Adopted Accounting Requirements
Credit score Losses (ASU No. 2016-13)
In June 2016, the FASB issued an accounting requirements replace offering new
steering for the accounting for credit score losses on loans and different monetary
devices. The brand new steering introduces an strategy based mostly on anticipated losses to
estimate credit score losses on commerce receivables and sure kinds of monetary
devices. The usual additionally modifies the impairment mannequin for
available-for-sale debt securities and supplies for a simplified accounting
mannequin for bought monetary belongings with credit score deterioration since their
origination. The accounting normal grew to become efficient for reporting intervals
starting after December 15, 2019. The Partnership adopted this accounting
normal efficient January 1, 2020 and the adoption didn't have a fabric
affect on the Partnership's consolidated monetary place, outcomes of
operations and money flows.
Truthful Worth Measurement (ASU No. 2018-13)
In August 2018, the FASB issued an accounting requirements replace to switch the
disclosure necessities on truthful worth measurements. The amendments grew to become
efficient for reporting intervals starting after December 15, 2019. An entity is
permitted to early undertake any eliminated or modified disclosures and delay adoption
of the extra disclosures till the efficient date. Most amendments ought to
be utilized retrospectively however sure amendments ought to be utilized
prospectively. The Partnership adopted the accounting normal efficient January
1, 2020 and the adoption didn't have a fabric affect on the Partnership's
consolidated monetary place, outcomes of operations and money flows.
2. Agreements with Westlake and Associated Events
Ethylene Gross sales Settlement
OpCo has entered right into a 12-year ethylene gross sales settlement with Westlake (the
"Ethylene Gross sales Settlement"). The Ethylene Gross sales Settlement requires Westlake to
buy a minimal quantity of ethylene every year equal to 95% of OpCo's deliberate
ethylene manufacturing per yr (the "Minimal Dedication"), topic to sure
exceptions and a most dedication of three.8 billion kilos per yr. As long as
Westlake isn't in default underneath the Ethylene Gross sales Settlement, if OpCo's precise
manufacturing exceeds deliberate manufacturing, Westlake has the choice to buy as much as
95% of the surplus manufacturing (the "Extra Manufacturing Choice").
The payment for every pound of ethylene bought by Westlake from OpCo as much as the
Minimal Dedication in any calendar yr will equal:
•the precise worth OpCo pays Westlake to buy ethane (or different feedstock,
similar to propane, if relevant) to supply every pound of ethylene, topic to a
specified cap and a flooring on the quantity of feedstock that ought to be wanted to
produce every pound of ethylene; plus
•the precise worth OpCo pays Westlake to buy pure gasoline to supply every
pound of ethylene, topic to a specified cap and a flooring on the quantity of
pure gasoline that ought to be wanted to supply every pound of ethylene; plus
•OpCo's estimated working prices (together with promoting, common and administrative
bills), divided by OpCo's deliberate ethylene manufacturing for the yr (in
kilos); plus
•a five-year common of OpCo's anticipated future upkeep capital expenditures
and different turnaround expenditures, divided by OpCo's deliberate ethylene manufacturing
capability for the yr (in kilos); much less
•the proceeds (on a per pound of ethylene foundation) acquired by OpCo from the sale
of co-products (together with, however not restricted to, propylene, crude butadiene,
pyrolysis gasoline and hydrogen) related to producing the ethylene
bought by Westlake; plus
•a $0.10 per pound margin.
The payment for the Extra Manufacturing Choice, if exercised, equals OpCo's estimated
variable working prices of manufacturing the incremental ethylene, web of revenues
from co-products gross sales plus a $0.10 per pound margin.
The estimated working prices and the anticipated future upkeep capital
expenditures and different turnaround expenditures shall be adjusted on the finish of
every year, to be relevant for the payment for the following calendar yr, to mirror
sure modifications in forecasted prices.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)

Below the Ethylene Gross sales Settlement OpCo has the choice to curtail as much as
roughly 5% of its ethylene manufacturing yearly within the occasion OpCo
moderately determines that its gross sales of such ethylene to 3rd events throughout
the related interval can be uneconomic.
Pursuant to the Ethylene Gross sales Settlement, Westlake's obligation to pay for the
annual minimal dedication (95% of OpCo's budgeted ethylene manufacturing), which is
measured on an annual foundation, isn't decreased for the primary 45 days of a power
majeure occasion, however is decreased for the portion of a power majeure occasion extending
past the forty fifth day. Within the occasion of a power majeure occasion, the Partnership
acknowledges purchaser deficiency charges representing mounted margin and unavoided
working and upkeep capital expenditures and upkeep bills per
pound of quantity dedicated by Westlake throughout the power majeure occasion.
The results of the payment construction is that OpCo ought to usually get well the
portion of its whole working prices and upkeep capital expenditures and
different turnaround expenditures similar to the portion of OpCo's mixture
manufacturing that's bought by Westlake. Any shortfall in restoration of such
prices is mostly acknowledged throughout the interval through which the associated working,
upkeep or turnaround actions happen and is recoverable from Westlake in
the following yr. Below the Ethylene Gross sales Settlement, if manufacturing prices
billed to Westlake on an annual foundation are lower than 95% of the particular manufacturing
prices incurred by OpCo throughout the contract yr, OpCo is entitled to get well the
shortfall in such manufacturing prices (proportionate to the quantity offered to
Westlake) within the subsequent yr ("Shortfall").
The Ethylene Gross sales Settlement supplies that, if compliance with any legislation adopted
or modified following our IPO ends in OpCo incurring extra prices in
extra of $500,000 in any contract yr, OpCo is entitled to cost Westlake a
month-to-month surcharge following efforts to mitigate the consequences of such matter.
The Ethylene Gross sales Settlement has an preliminary time period extending till December 31,
2026 and robotically renews thereafter for successive 12-month phrases except
terminated.
Feedstock Provide Settlement
OpCo has entered right into a feedstock provide settlement with Westlake, pursuant to
which Westlake sells to OpCo ethane and different feedstock in quantities ample
for OpCo to supply the ethylene to be offered underneath the Ethylene Gross sales Settlement
(the "Feedstock Provide Settlement"). The Feedstock Provide Settlement supplies that
OpCo could acquire feedstock from Westlake based mostly on Westlake's whole price of
buying and delivering the feedstock, together with relevant transportation,
storage and different prices. Title and danger of loss for all feedstock bought by
OpCo by means of the Feedstock Provide Settlement passes to OpCo upon supply to at least one
of three supply factors described within the Feedstock Provide Settlement.
The Feedstock Provide Settlement has an preliminary time period extending till December 31,
2026 and robotically renews thereafter for successive 12-month phrases except
terminated by both social gathering; offered, nonetheless, that such settlement can solely be
renewed within the occasion the Ethylene Gross sales Settlement is renewed concurrently. The
Feedstock Provide Settlement could, in sure circumstances, terminate concurrently
with the termination of the Ethylene Gross sales Settlement.
Companies and Secondment Settlement
OpCo has entered right into a Companies and Secondment Settlement with Westlake,
pursuant to which OpCo supplies Westlake with sure companies required for the
operation of Westlake's amenities; and Westlake supplies OpCo with
complete working companies for OpCo's amenities, starting from companies
referring to the upkeep and operations of the widespread amenities obligatory
for the operation of OpCo's models, to creating out there sure shared utilities
similar to electrical energy and pure gasoline which might be obligatory for the operation of
OpCo's models. Westlake additionally seconds staff to OpCo to permit OpCo to function
its amenities. Such seconded staff are underneath the management of OpCo whereas they
work on OpCo's amenities.
The Companies and Secondment Settlement has an preliminary 12-year time period. The Companies
and Secondment Settlement could also be renewed thereafter upon settlement of the events
and shall robotically terminate if the Ethylene Gross sales Settlement terminates
underneath sure circumstances. Westlake and OpCo every can terminate the Companies
and Secondment Settlement underneath sure circumstances, together with if the opposite
social gathering materially defaults on the efficiency of its obligations and such default
continues for a 30-day interval.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Web site Lease Agreements
OpCo has entered into two website lease agreements with Westlake pursuant to which
Westlake leases to OpCo the true property underlying Lake Charles Olefins and
Calvert Metropolis Olefins, respectively, and grants OpCo rights to entry and use
sure different parts of Westlake's ethylene manufacturing amenities which might be
essential to function OpCo's manufacturing amenities. OpCo owes Westlakeone greenback
per website per yr. The positioning lease agreements every have a time period of fifty years. Every
of the location lease agreements could also be renewed if agreed by the events.
Omnibus Settlement
The Partnership has entered into an Omnibus Settlement with Westlake that
addresses (1) Westlake's indemnification of the Partnership for sure issues,
together with environmental and tax issues, (2) the supply by Westlake of
sure administration and different common and administrative companies to the
Partnership and its common associate and (3) the Partnership's reimbursement to
Westlake for such companies. The Omnibus Settlement additionally addresses Westlake's
proper of first refusal on any proposed switch of the ethylene manufacturing
amenities that serve Westlake's different amenities and Westlake's proper of first
refusal on any proposed switch of the Partnership's fairness pursuits in OpCo.
Alternate Settlement
OpCo and Westlake are events to an alternate settlement, which continues on an
annual foundation, except and till terminated by both social gathering. Below the alternate
settlement, OpCo could require Westlake to ship as much as 200 million kilos of
ethylene for OpCo per yr from the Web site Leases to an ethylene hub in Mt.
Belvieu, Texas, for which OpCo can be required to pay an alternate payment of
$0.006 per pound.
OpCo Partnership Settlement
The Partnership, OpCo GP and Westlake are events to an settlement of restricted
partnership for OpCo (the "OpCo LP Settlement"). The OpCo LP Settlement governs
the possession and administration of OpCo and designates OpCo GP as the overall
associate of OpCo. OpCo GP usually has full authority to handle OpCo's
enterprise and affairs. The Partnership controls OpCo GP, as its sole member,
topic to sure approval rights held by Westlake.
Funding Administration Settlement
The Partnership, OpCo and Westlake are events to an Funding Administration
Settlement that authorizes Westlake to speculate the Partnership and OpCo's extra
money with Westlake for a time period of as much as a most of 9 months. Per the phrases
of the Funding Administration Settlement, the Partnership earns a market return
plus 5 foundation factors and Westlake supplies day by day availability of the invested
money to satisfy any liquidity wants of the Partnership or OpCo. The Partnership had
$123,228 of invested money underneath the Funding Administration Settlement at
December 31, 2020.
3. Accounts Receivable-Third Events
Accounts receivable-third events include the next:
                                                  December 31,
                                                2020         2019
Commerce clients                              $ 11,344$ 9,730
Allowance for credit score losses                      (315)        (476)
Different receivables                                   -          660

Accounts receivable, web third events $ 11,029$ 9,914

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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(in hundreds of {dollars}, besides unit quantities and unit information) 4. Inventories Inventories include the next:

                                               December 31,
                                            2020         2019
Completed merchandise                         $ 3,157$ 2,154
Feedstock, components and chemical substances            317          330
Inventories                               $ 3,474$ 2,484



5. Property, Plant and Gear
Property, plant and gear include the next:
                                                 December 31,
                                            2020             2019

Constructing and enhancements               $    17,994$    17,426
Plant and gear                       1,856,745        1,825,332
Different                                       106,078           97,402
                                          1,980,817        1,940,160
Much less: Collected depreciation             (971,476)        (882,768)
                                          1,009,341        1,057,392
Building in progress                     41,336           45,603

Tangible mounted belongings, web $ 1,050,677$ 1,102,995


Depreciation expense on property, plant and gear of $90,768, $89,454 and
$88,197 is included in price of gross sales within the consolidated statements of
operations for the years ended December 31, 2020, 2019 and 2018, respectively.
6. Goodwill
The Partnership's goodwill stability was $5,814 at December 31, 2020 and 2019. The
impairment evaluation for the recorded goodwill was carried out in October 2020
and didn't point out impairment of the goodwill. The truthful worth of the goodwill
was calculated utilizing each a reduced money circulate methodology and a market worth
methodology. The discounted money circulate projections have been based mostly on a long-term
forecast to mirror the cyclicality of the Partnership's enterprise. The forecast
was based mostly on costs and spreads projected by IHS Markit, a chemical business
group providing market and enterprise advisory companies for the chemical
market, for a similar interval, and estimates by administration, together with their
strategic and operational plans. Different vital assumptions used within the
discounted money circulate projection included gross sales volumes based mostly on manufacturing
capacities. The longer term money flows have been discounted to current worth utilizing a
low cost price of 9.0%. The numerous assumptions utilized in figuring out the truthful
worth of the reporting unit utilizing the market worth methodology embrace the
willpower of applicable market comparables and the estimated multiples of
EBITDA a prepared purchaser is more likely to pay.
7. Deferred Expenses and Different Property
Deferred fees and different belongings, web include the next:
                                                             Yr Ended December 31,
                                                                    2020                              2019

Turnaround prices, web                                    $                 32,273                  $ 40,416

Different                                                                       4,419                     5,820
Whole deferred fees and different belongings                  $                 36,692                  $ 46,236


Amortization expense on different belongings of $12,386, $17,866 and $20,645 is included
within the consolidated statements of operations for the years ended December 31,
2020, 2019 and 2018, respectively. Sure different belongings are amortized over
intervals starting from 5 to fifteen years utilizing the straight-line methodology.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)

8. Lengthy-Time period Debt
Lengthy-term debt consists of the next:
                                                                            

the thirty first of December,

                                                                       2020               2019

OpCo Revolver (variable rate of interest of the London Interbank Supplied Price (“LIBOR”) plus

  2.0%, scheduled maturity of September 25, 2023)                  $  

22,619 $ 22,619
Revolver MLP (LIBOR variable rate of interest plus 2.0%, anticipated maturity of

  March 19, 2023)                                                    377,055            377,055
Lengthy-term debt payable to Westlake                                 $ 

399,674 $ 399,674


On August 4, 2014, OpCo entered right into a $600,000 senior unsecured revolving
credit score facility settlement with Westlake (as subsequently amended, the "OpCo
Revolver"). The OpCo Revolver is scheduled to mature on September 25, 2023 and
bears curiosity at a price of LIBOR plus 2.0%, which can be paid-in-kind as an
addition to the principal at OpCo's possibility. On April 30, 2019, the Partnership
repaid $201,445 of borrowings underneath the OpCo Revolver.
On April 29, 2015, the Partnership entered right into a $300,000 revolving credit score
facility settlement with an affiliate of Westlake (as subsequently amended, the
"MLP Revolver") to fund the Partnership's buy of a further 2.7%
newly-issued, restricted associate curiosity in OpCo for $135,341. In 2017, the
Partnership entered into an modification to the MLP Revolver credit score settlement,
rising borrowing capability from $300,000 to $600,000. On March 19, 2020, the
Partnership entered into an modification to the MLP Revolver, to increase the
maturity date to March 19, 2023 and add a phase-out provision for LIBOR, which
is to get replaced by an alternate benchmark price. The amended Credit score Settlement
bears curiosity at a variable price of both (a) LIBOR plus 2.0% or, if LIBOR is
not out there, (b) Alternate Base Price plus 1.0%. The MLP Revolver bears
curiosity at LIBOR plus a selection starting from 2.0% to three.0% (relying on the
Partnership's consolidated leverage ratio), payable quarterly. The MLP Revolver
supplies that the Partnership could pay all or a portion of the curiosity on any
borrowings in form, through which case any such quantities can be added to the
principal quantity of the mortgage. The MLP Revolver requires that the Partnership
preserve a consolidated leverage ratio of both (1) throughout any one-year interval
following sure kinds of acquisitions (together with acquisitions of extra
pursuits in OpCo), 5.50:1.00 or much less, or (2) throughout some other interval, 4.50:1.00
or much less. The MLP Revolver additionally comprises sure different customary covenants. The
compensation of borrowings underneath the MLP Revolver is topic to acceleration upon
the incidence of an occasion of default. On March 29, 2019, the Partnership
borrowed $123,511 underneath the MLP Revolver to partially fund the acquisition of the
extra 4.5% curiosity in OpCo.
As of December 31, 2020, the Partnership was in compliance with all the
covenants underneath the OpCo Revolver and the MLP Revolver.
The weighted common rate of interest on all long-term debt was 2.23% and 4.10% at
December 31, 2020 and 2019, respectively.
As of December 31, 2020, the Partnership had no scheduled maturities of
long-term debt till 2023. The OpCo Revolver is scheduled to mature on September
25, 2023, and the MLP Revolver is scheduled to mature on March 19, 2023.
9. Distributions and Internet Earnings Per Restricted Associate Unit
On January 25, 2021, the board of administrators of Westlake Chemical Companions GP LLC
("Westlake GP"), the Partnership's common associate, declared a quarterly money
distribution for the interval from October 1, 2020 to December 31, 2020 of $0.4714
per widespread unit. This distribution was paid on February 19, 2021 to unitholders
of document on February 4, 2021.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(in hundreds of {dollars}, besides unit quantities and per unit information) Distributions are declared after quarter finish; subsequently, the desk beneath represents the full money distributions declared from earnings for the associated intervals referring to such distributions.

                                                                    Yr 

Accomplished the thirty first of December

                                                                        2020               2019               2018
Internet revenue attributable to the Partnership                          $  66,167$  60,981$  49,347
Much less:
Restricted companions' distribution declared on
widespread models                                                           66,365             64,718             53,516

Distributions declared underneath incentive distribution rights

                                                         -                  -                733
Distribution in extra of web revenue                                $    

(198) ($ 3,737)($ 4,902)


Internet revenue per unit relevant to widespread restricted associate models and to
subordinated restricted associate models is computed by dividing the respective
restricted companions' curiosity in web revenue by the weighted-average variety of
widespread models and subordinated models excellent for the interval. As a result of the
Partnership has a couple of class of taking part securities, it makes use of the
two-class methodology when calculating the online revenue per unit relevant to restricted
companions. The courses of taking part securities embrace widespread models,
subordinated models and incentive distribution rights. Internet revenue attributable to
the Partnership is allotted to the unitholders in accordance with their
respective possession percentages in preparation of the consolidated statements
of modifications in fairness. Nonetheless, when distributions associated to the inducement
distribution rights are made, web revenue equal to the quantity of these
distributions is first allotted to the overall associate earlier than the remaining web
revenue is allotted to the unitholders based mostly on their respective possession
percentages. Fundamental and diluted web revenue per unit is identical as a result of the
Partnership doesn't have any probably dilutive models excellent for the
intervals introduced.
All the subordinated models, which have been owned by Westlake, have been transformed into
widespread models in 2017.
                                                                 Yr Ended December 31, 2020
                                                              Restricted                    Incentive
                                                             Companions'                 Distribution
                                                           Frequent Models                   Rights                 Whole
Internet revenue attributable to the Partnership:
Distribution                                              $     66,365                $          -          $     66,365
Distribution in extra of web revenue                              (198)                          -                  (198)
Internet revenue                                                $     66,167                $          -          $     66,167
Weighted common models excellent:
Fundamental and diluted                                           35,195,271                                        35,195,271
Internet revenue per restricted associate unit:
Fundamental and diluted                                         $       1.88


                                                                         Yr Ended December 31, 2019
                                                              Restricted              Incentive
                                                             Companions'           Distribution
                                                           Frequent Models             Rights                 Whole
Internet revenue attributable to the Partnership:
Distribution                                              $     64,718          $          -          $     64,718
Distribution in extra of web revenue                            (3,737)                    -                (3,737)
Internet revenue                                                $     60,981          $          -          $     60,981
Weighted common models excellent:
Fundamental and diluted                                           34,488,058                                  34,488,058
Internet revenue per restricted associate unit:
Fundamental and diluted                                         $       1.77


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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
                                                                            Yr Ended December 31, 2018
                                                              Restricted
                                                          Companions' Frequent            Incentive
                                                               Models             Distribution Rights            Whole
Internet revenue attributable to the Partnership:
Distribution                                              $      53,516          $            733          $     54,249
Distribution in extra of web revenue                             (4,902)                        -                (4,902)
Internet revenue                                                $      48,614          $            733          $     49,347
Weighted common models excellent:
Fundamental and diluted                                            32,240,858                                      32,240,858
Internet revenue per restricted associate unit:
Fundamental and diluted                                         $        1.51


The amended Partnership Settlement supplies that the Partnership will distribute
money every quarter to all of the unitholders, professional rata, till every unit has acquired
a distribution of $1.2938. If money distributions to the Partnership's
unitholders exceed $1.2938 per widespread unit in any quarter, the Partnership's
unitholders and Westlake, because the holder of the Partnership's incentive
distribution rights, will obtain distributions in accordance with the next
share allocations:
                                                                       Marginal Proportion Curiosity in Distributions
Whole Quarterly Distribution Per Unit                                     Unitholders                  IDR Holders
Above $1.2938 as much as $1.4063                                                         85.0  %                     15.0  %
Above $1.4063 as much as $1.6875                                                         75.0  %                     25.0  %
Above $1.6875                                                                       50.0  %                     50.0  %


The Partnership's distribution for the three months ended December 31, 2020 did
not exceed the $1.2938 per unit threshold, and, in consequence, no distribution was
made with respect to the Partnership's incentive distribution rights to
Westlake, because the holder of the Partnership' incentive distribution rights.
Distribution Per Frequent Unit
Distributions per widespread unit for the years ended December 31, 2020, 2019 and
2018 have been as follows:
                                           Yr Ended December 31,
                                       2020          2019          2018

Distributions by widespread unit $ 1.8856$ 1,8005$ 1.6134



10. Companions' Fairness
On October 4, 2018, the Partnership and Westlake Chemical Companions GP LLC, the
common associate of the Partnership, entered into an Fairness Distribution
Settlement with UBS Securities LLC, Barclays Capital Inc., Citigroup International
Markets Inc., Deutsche Financial institution Securities Inc., RBC Capital Markets, LLC, Merrill
Lynch, Pierce, Fenner & Smith Included and Wells Fargo Securities, LLC to
supply and promote the Partnership's widespread models, once in a while, as much as an
mixture providing quantity of $50,000. The Fairness Distribution Settlement was
amended on February 28, 2020 to reference a brand new shelf registration for
utilization underneath this settlement. No widespread models have been issued underneath this program
as of December 31, 2020.
On March 29, 2019, the Partnership accomplished the issuance and sale of two,940,818
widespread models at a worth of $21.40 per unit by means of a personal placement. Internet
proceeds to the Partnership from the sale of the models have been roughly
$62,661. TTWF LP, Westlake's principal stockholder and a associated social gathering, acquired
1,401,869 widespread models out of two,940,818 widespread models issued within the personal
placement.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
11. Associated Occasion Transactions
The Partnership and OpCo recurrently enter into associated social gathering transactions with
Westlake. See beneath for an outline of transactions with associated events.
Gross sales to Associated Events
OpCo sells ethylene to Westlake underneath the Ethylene Gross sales Settlement.
Moreover, the Partnership and OpCo once in a while present different companies
or merchandise for which it fees Westlake a payment.
Gross sales to associated events have been as follows:
                                  Yr Ended December 31,
                           2020           2019            2018
Internet sales-Westlake      $ 888,245$ 937,625$ 1,074,957


Below the Companies and Secondment Settlement, OpCo makes use of a portion of its
manufacturing capability to course of purge gasoline for Westlake. On August 4, 2016, OpCo
and Westlake entered into an modification to the Ethylene Gross sales Settlement so as
to supply that sure of the pricing parts that make up the worth for
ethylene offered thereunder can be modified to mirror the portion of OpCo's
manufacturing capability that's used to course of Westlake's purge gasoline as an alternative of
producing ethylene and to make clear that prices particular to the processing of
Westlake's purge gasoline can be recovered underneath the Companies and Secondment
Settlement, and never the Ethylene Gross sales Settlement.
In the course of the yr ended December 31, 2020, the Lake Charles Petro 1 and Petro 2
amenities have been impacted by Hurricanes Laura and Delta, which resulted in power
majeure occasions underneath the Ethylene Gross sales Settlement. On account of the power
majeure occasions, the Partnership acknowledged a purchaser deficiency payment of $69,555 as
a part of web gross sales for the yr ended December 31, 2020, representing
mounted margin and unavoided working and upkeep capital expenditures and
upkeep bills per pound of quantity dedicated by Westlake throughout the power
majeure occasions. Cost for the client deficiency payment was acquired by the
Partnership in January 2021.
Price of Gross sales from Associated Events
Expenses for items and companies bought by the Partnership and OpCo from
Westlake and included in price of gross sales relate primarily to feedstock bought
underneath the Feedstock Provide Settlement and companies offered underneath the Companies
and Secondment Settlement.
Expenses from associated events in price of gross sales have been as follows:
                                                                     Yr 

Accomplished the thirty first of December,

                                                            2020               2019               2018
Feedstock bought from Westlake and included in
price of gross sales                                           $ 255,910$ 366,031$ 556,362
Different fees from Westlake and included in price
of gross sales                                                  103,273            106,564            114,364
Whole                                                   $ 359,183$ 472,595$ 670,726


Companies from Associated Events Included in Promoting, Normal and Administrative
Bills
Expenses for companies bought by the Partnership from Westlake and included in
promoting, common and administrative bills primarily relate to companies
Westlake performs on behalf of the Partnership underneath the Omnibus Settlement,
together with the Partnership's finance, authorized, info expertise, human
sources, communication, ethics and compliance and different administrative
features.
Expenses from associated events included inside promoting, common and administrative
bills have been as follows:
                                                                         Yr Ended December 31,
                                                                2020               2019               2018
Companies acquired from Westlake and included in
promoting, common and
administrative bills                                     $  22,162$  26,946$  24,618


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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Items and Companies from Associated Events Capitalized as Property
Expenses for items and companies bought by the Partnership and OpCo from
Westlake which have been capitalized as belongings relate primarily to the companies of
Westlake staff underneath the Companies and Secondment Settlement.
Expenses from associated events for items and companies capitalized as belongings have been
as follows:
                                                                        Yr Ended December 31,
                                                              2020                2019               2018
Items and companies bought from Westlake and
capitalized as belongings                                     $    1,736

$ 2,503$ 2,519


Receivable underneath the Funding Administration Settlement
On August 1, 2017, the Partnership, OpCo and Westlake executed an funding
administration settlement (the "Funding Administration Settlement") that licensed
Westlake to speculate the Partnership and OpCo's extra money with Westlake for a
time period of as much as a most of 9 months. Per the phrases of the Funding
Administration Settlement, the Partnership earns a market return plus 5 foundation
factors and Westlake supplies day by day availability of the invested money to satisfy any
liquidity wants of the Partnership or OpCo. Accrued curiosity of $56 and $601 was
included within the receivable underneath the Funding Administration Settlement stability at
December 31, 2020 and 2019, respectively. The curiosity earned associated to the
Funding Administration Settlement was $932, $3,289 and $2,646 for the years ended
December 31, 2020, 2019 and 2018, respectively.
The Partnership's receivable underneath the Funding Administration Settlement was as
follows:
                                                                       December 31,
                                                                   2020           2019
    Receivable underneath the Funding Administration Settlement        $ 123,228$ 162,773


Accounts Receivable from Associated Events
The Partnership's accounts receivable from Westlake consequence primarily from
ethylene gross sales to Westlake, any shortfall recoverable from Westlake and any
purchaser deficiency charges, in every case underneath the Ethylene Gross sales Settlement. Below
the Ethylene Gross sales Settlement, if manufacturing prices billed to Westlake on an
annual foundation are lower than 95% of the particular manufacturing prices incurred by OpCo
throughout the yr, OpCo is entitled to get well the shortfall within the subsequent
yr. The shortfall is acknowledged within the interval when such manufacturing actions
happen. The Partnership's accounts receivable from Westlake have been as follows:
                                                          December 31,
                                                       2020           2019
                Accounts receivable-Westlake        $ 108,028$ 42,847


Accounts Payable to Associated Events
The Partnership's accounts payable to Westlake consequence primarily from feedstock
purchases underneath the Feedstock Provide Settlement and companies offered underneath the
Companies and Secondment Settlement and the Omnibus Settlement. The Partnership's
accounts payable to Westlake have been as follows:
                                      December 31,
                                   2020          2019
Accounts payable-Westlake        $ 7,855$ 15,201


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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Debt Payable to Associated Events
See Notice 8 for an outline of associated social gathering debt payable balances.
Curiosity on associated social gathering debt payable balances, web of capitalized curiosity,
for the years ended December 31, 2020, 2019 and 2018 was $12,038, $19,623 and
$21,433, respectively, and is mirrored as a part of different revenue (expense)
within the consolidated and statements of operations. Curiosity capitalized as a
part of property, plant and gear on associated social gathering debt was zero for
the years ended December 31, 2020 and 2019, respectively. At December 31, 2020
and 2019, accrued curiosity on associated social gathering debt was $2,336 and $4,187, and is
mirrored as a part of accrued liabilities within the consolidated stability
sheets.
Debt payable to associated events was as follows:
                                                 December 31,
                                             2020           2019

Lengthy-term debt payable to West Lake$ 399,674$ 399,674


Associated Occasion Leases
OpCo is obligated to Westlake underneath numerous long-term and short-term
noncancelable working leases, primarily associated to rail automotive leases and land.
Working lease leases paid to Westlake for such leases have been $3,038, $2,343 and
$2,219 for the years ended December 31, 2020, 2019 and 2018, respectively, and
mirrored in different fees from Westlake which might be included in price of gross sales.
OpCo has two website lease agreements with Westlake, every of which has a time period of fifty
years. Pursuant to the location lease agreements, OpCo pays Westlakeone greenback per
website per yr.
Main Buyer and Focus of Credit score Danger
In the course of the years ended December 31, 2020, 2019 and 2018, Westlake accounted for
roughly 91.9%, 85.9% and 83.6%, respectively, of the Partnership's web
gross sales.
Normal
Throughout the years ended December 31, 2020, 2019 and 2018, the Partnership
reimbursed $279, $293 and $418, respectively, to Westlake for sure state tax
funds.
Different
See Notice 10 above for a further associated social gathering transaction.

12. Spinoff Commodity Devices
Every so often, the Partnership makes use of spinoff devices to cut back worth
volatility danger on commodities, primarily ethane and ethylene. The Partnership
doesn't use spinoff devices to have interaction in speculative actions.
The Partnership had no derivatives that have been designated as truthful worth hedges
throughout the years ended December 31, 2020, 2019 and 2018.
The publicity on commodity derivatives used for worth danger administration consists of
the danger that the counterparty won't pay if the market worth declines beneath
the established mounted worth. In such case, the Partnership would lose the
advantage of the spinoff differential on the quantity of the commodities lined.
In any occasion, the Partnership would proceed to obtain the market worth on the
precise quantity hedge. The Partnership additionally bears the danger that it might lose the
advantage of market enhancements over the mounted spinoff worth for the time period and
quantity of the spinoff devices (as such enhancements would accrue to the
advantage of the counterparty). As of December 31, 2020, all non-hedge designated
derivatives had been settled. The Partnership had non-hedge designated
derivatives masking roughly 39.1 million gallons and 93.0 million kilos
of commodities as of December 31, 2019.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
At December 31, 2019, the truthful worth of those spinoff devices recorded as
accrued liabilities and accounts receivable, web have been $1,959 and $597,
respectively. The loss associated to those derivatives acknowledged in web gross sales was
$805 for the yr ended December 31, 2020 and the achieve associated to those
derivatives acknowledged in web gross sales was $836 for the yr ended December 31,
2019. The achieve acknowledged in price of gross sales was $228 for the yr ended
December 31, 2020 and the loss acknowledged in price of gross sales was $3,335 for the
yr ended December 31, 2019.
The Partnership's commodity contracts are measured utilizing ahead curves provided
by business acknowledged sources and unrelated third-party companies and labeled
as Stage 2 underneath the truthful worth measurement steering.
13. Unit-based Compensation
The Westlake Chemical Companions LP Lengthy-Time period Incentive Plan (the "Plan") was
adopted on July 15, 2014 and supplies for grants of unit choices, restricted
models, phantom models, unit awards, distribution equal rights ("DERs") and
different unit-based awards. The aim of the Plan is to draw and retain the
companies of people who're important for the expansion and profitability of
the Partnership and to encourage such people to dedicate their greatest efforts
to advancing the enterprise of the Partnership and its associates. Awards underneath
the Plan are decided by the board of administrators of the Partnership's common
associate or a committee thereof (the "Committee"). Below the Plan, DERs could also be
granted, which symbolize a contingent proper to obtain an quantity in money, models,
restricted models and/or phantom models, as decided by the Committee at its
sole discretion, equal in worth to the money distributions made by the
Partnership with respect to a standard unit throughout the interval such award is
excellent. The phrases and circumstances of every award are decided by the
Committee. The utmost variety of widespread models of the Partnership which may be
delivered with respect to awards underneath the Plan is 1,270,000. The phantom models
together with a corresponding variety of DERs have been granted to sure non-employee
administrators of the overall associate of the Partnership throughout the years ended
December 31, 2020, 2019 and 2018. These phantom models vest on the primary
anniversary of the grant date. There have been no forfeitures underneath the Plan throughout
2020, 2019 and 2018. Throughout every of the yr 2020 and 2019, the vesting of 4,638
phantom models have been accelerated in reference to the retirement of one of many
Partnership's non-employee administrators. The overall truthful worth of phantom models that
vested throughout the yr ended December 31, 2020 was $260.
Non-vested phantom unit awards as of December 31, 2020 and 2019 and awards
granted throughout the respective intervals have been as follows:
                                               Variety of            

Weighted

                                                 Models         Common Truthful 

Assess

Non-vested stability at December 31, 2018        19,677         $             23.78
Granted                                        18,272                       22.03
Vested                                        (24,315)                      21.90
Non-vested stability at December 31, 2019        13,634                       23.24
Granted                                        20,439                       20.17
Vested                                        (13,634)                      19.08
Non-vested stability at December 31, 2020        20,439                       

22.33


Every phantom unit represents the proper to obtain, upon vesting, both a money
cost equal to the truthful market worth of 1 Partnership widespread unit or a
Partnership widespread unit. Every DER has distribution rights solely as long as the
phantom models to which it pertains to has not vested or been settled.
The awards, that are labeled as legal responsibility awards for monetary accounting
functions, are re-measured at every reporting date till they vest. The overall
models out there for grant at December 31, 2020 have been 1,226,206. The overall
compensation price acknowledged throughout the years ended December 31, 2020, 2019 and
2018 was $375, $387 and $363, respectively, and is included in promoting, common
and administrative bills and labeled as a legal responsibility within the consolidated
monetary statements of the Partnership. The unrecognized compensation price
related to all grants underneath the Plan at December 31, 2020 was $263 and the
weighted common remaining time period of the models at December 31, 2020 was 0.58
years.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
14. Truthful Worth Measurements
The Partnership reviews sure belongings and liabilities at truthful worth, which is
outlined as the worth that may be acquired to promote an asset or paid to switch
a legal responsibility in an orderly transaction between market members on the
measurement date (exit worth). Below the accounting steering for truthful worth
measurements, inputs used to measure truthful worth are labeled in certainly one of three
ranges:
Stage 1: Quoted market costs in lively markets for similar belongings or
liabilities.
Stage 2: Observable market-based inputs or unobservable inputs which might be
corroborated by market information.
Stage 3: Unobservable inputs that aren't corroborated by market information.
The Partnership has monetary belongings and liabilities topic to truthful worth
measures. These monetary belongings and liabilities embrace money and money
equivalents, accounts receivable, web, accounts payable and long-term debt
payable to Westlake, all of that are recorded at carrying worth. The quantities
reported within the consolidated stability sheets for accounts receivable, web and
accounts payable approximate their truthful worth because of the quick maturities of
these devices. The carrying and truthful values of the Partnership's long-term
debt at December 31, 2020 and December 31, 2019 are summarized within the desk
beneath. The truthful worth of debt is decided based mostly on the current worth of
anticipated future money flows utilizing a reduced money circulate methodology. As a result of the
Partnership's valuation methodology used for long-term debt requires the usage of
vital unobservable inputs, the inputs used to measure the truthful worth of
the Partnership's long-term debt are labeled as Stage 3 inside the truthful worth
hierarchy. Inputs used to estimate the truthful values of the Partnership's
long-term debt embrace the collection of an applicable low cost price.
                         December 31, 2020            December 31, 2019
                      Carrying         Truthful        Carrying         Truthful
                        Worth         Worth          Worth         Worth
OpCo Revolver        $  22,619$ 23,301$  22,619$ 23,364
MLP Revolver           377,055       383,284        377,055       379,452



15. Earnings Taxes
The Partnership is a restricted partnership and is handled as a partnership for
U.S. federal revenue tax functions and, subsequently, isn't accountable for entity-level
federal revenue taxes. The Partnership is, nonetheless, topic to state and native
revenue taxes.
The parts of revenue tax of the Partnership are as follows:
                              Yr Ended December 31,
                            2020             2019       2018
Present

State and native      $     671$ 743$ 578

Deferred

State and native           (107)               (15)      (556)

Whole provision      $     564$ 728$  22

The reconciliation of the revenue tax expense we the statutory price of the tax cost is as follows:

                                                                       Yr 

Accomplished the thirty first of December,

                                                              2020               2019               2018

Federal revenue tax provision, at statutory price $ 71,755

  $  70,062$  69,425
State revenue tax provision, web of federal revenue
tax impact                                                      564                728                 22
Partnership revenue not topic to entity-level
federal revenue tax                                          (71,755)           (70,062)           (69,425)
Whole provision                                           $     564$     728$      22


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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(in hundreds of {dollars}, besides unit quantities and unit information) The tax results of the principle timing variations between monetary reviews and tax returns are as follows:

                                             December 31,
                                          2020          2019

Tangible mounted belongings ($ 1,487)($ 1,574)
Turnover prices

                            (55)          (75)

Whole deferred tax liabilities ($ 1,542)($ 1,649)

Stability sheet classifications

Non-current deferred tax legal responsibility ($ 1,542)($ 1,649)
Whole deferred tax liabilities ($ 1,542)($ 1,649)



16. Supplemental Info
Accrued Liabilities
Accrued liabilities have been $18,768 and $17,507 at December 31, 2020 and 2019,
respectively. Accruals associated to curiosity expense, upkeep bills, taxes,
and capital expenditures, that are parts of accrued liabilities, have been
$2,336, $3,905, $6,207 and $2,286 at December 31, 2020, respectively, and have been
$4,186, $3,225, $2,611 and $2,375 at December 31, 2019, respectively. No different
part of accrued liabilities was greater than 5 p.c of whole present
liabilities.
Money Circulation Info
Non-cash Investing Exercise
The change in capital expenditure accrual resulted in a lower in additions to
property, plant and gear by $2,490 for the yr ended December 31, 2020.
The change in capital expenditure accrual resulted in a lower in additions to
property, plant and gear by $232 for the yr ended December 31, 2019.
Curiosity and Earnings Taxes
Curiosity paid by the Partnership, web of curiosity capitalized, was $13,887,
$20,837 and $20,551 for the years ended December 31, 2020, 2019 and 2018,
respectively. Earnings tax paid by the Partnership was $709, $655 and $711 for the
years ended December 31, 2020, 2019 and 2018, respectively, of which $430, $362
and $293 was paid on to the tax authorities for the years ended
December 31, 2020, 2019 and 2018, and $279, $293 and $418 was paid to Westlake
as reimbursements for the years ended December 31, 2020, 2019 and 2018.
17. Commitments and Contingencies
The Partnership is topic to environmental legal guidelines and laws that may impose
civil and legal sanctions and which will require the Partnership to mitigate
the consequences of contamination attributable to the discharge or disposal of hazardous
substances into the atmosphere. These legal guidelines embrace the federal Clear Air Act,
the federal Water Air pollution Management Act, the Useful resource Conservation and Restoration
Act ("RCRA"), the Complete Environmental Response, Compensation, and
Legal responsibility Act ("CERCLA"), the Poisonous Substances Management Act and numerous different
federal, state and native legal guidelines and laws. Below CERCLA, an proprietor or
operator of property could also be held strictly accountable for remediating contamination
with out regard as to if that individual brought on the contamination, and with out
regard as to if the practices that resulted within the contamination have been authorized at
the time they occurred. As a result of the Partnership's manufacturing websites have a
historical past of business use, it's unimaginable to foretell exactly what impact
these authorized necessities may have on the Partnership. Westlake will indemnify
the Partnership for liabilities that occurred or existed previous to August 4,
2014.
The Partnership is concerned in numerous authorized proceedings incidental to the
conduct of its enterprise. The Partnership doesn't consider that any of those
authorized proceedings may have a fabric hostile impact on its monetary
situation, outcomes of operations or money flows.
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                         WESTLAKE CHEMICAL PARTNERS LP
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
        (in hundreds of {dollars}, besides unit quantities and per unit information)
Different Commitments
The Partnership has numerous buy commitments for its capital tasks and
for supplies, provides and companies incident to the abnormal conduct of
enterprise.
18. Quarterly Monetary Info (Unaudited)
                                                                            

Three months ended

                                                    March 31,             June 30,             September 30,           December 31,
                                                      2020                  2020                   2020                    2020
Internet gross sales                                        $    250,549$    238,500$      231,969$     245,652
Gross revenue                                          103,548                90,030                 100,391                 84,914
Earnings from operations                                 97,352                83,891                  94,136                 77,609
Internet revenue                                             93,770                80,377                  91,848                 75,124
Internet revenue attributable to Westlake
Chemical Companions LP                                   17,747                14,860                  18,535                 15,025
Internet revenue attributable to Westlake
Chemical Companions LP(1)
  Fundamental and diluted earnings per widespread
unitholder                                       $       0.50          $    

0.43 $ 0.53 $ 0.43

  Weighted common restricted associate models
excellent (fundamental
   and diluted)                                    35,194,545            35,194,545              35,194,545             35,197,435

                                                                           

Three months ended

                                                    March 31,             June 30,             September 30,           December 31,
                                                      2019                  2019                   2019                    2019
Internet gross sales                                        $    299,086$    270,062$      249,925$     272,798
Gross revenue                                           90,654                91,958                  93,219                103,597
Earnings from operations                                 83,681                84,319                  86,397                 95,753
Internet revenue                                             78,396                80,110                  82,479                 91,910
Internet revenue attributable to Westlake
Chemical Companions LP                                   14,955                13,733                  14,922                 17,371
Internet revenue attributable to Westlake
Chemical Companions LP(1)
  Fundamental and diluted earnings per widespread
unitholder                                       $       0.46          $    

0.39 $ 0.42 $ 0.49

  Weighted common restricted associate models
excellent (fundamental
   and diluted)                                    32,345,398            35,188,189              35,188,189             35,191,487


______________________________

(1)Fundamental and diluted earnings per widespread unit ("EPU") for every quarter is
computed utilizing the weighted common models excellent throughout that quarter, whereas
EPU for the yr is computed utilizing the weighted common models excellent for
the yr. Consequently, the sum of the EPU for every of the 4 quarters could not
equal the EPU for the yr.

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