58 unchanged sentences
We capitalize the costs of major maintenance activities, or turnarounds, and amortize the costs over the period until the next planned turnaround of the affected facility.
+Added: We commenced the next maintenance turnaround at Petro 1 in the first quarter of 2025.
Operating expenses, maintenance capital expenditures and turnaround costs are built into the price per pound of ethylene charged to Westlake under the Ethylene Sales Agreement.
34 unchanged sentences
Recent Development
−Removed: Calvert City Olefins Turnaround
−Removed: During May 2023, we performed our planned major maintenance activities, or turnaround, of OpCo's Calvert City Olefins production facility located at Westlake's Calvert City, Kentucky site.
+Added: Petro 1 Turnaround
+Added: During the first quarter of 2025, we commenced our planned maintenance turnaround of the Petro 1 production facility.
Results of Operations
The table below and descriptions that follow represent the consolidated results of operations of the Partnership for the years ended December 31, 2024 and 2023.
−Removed: A detailed comparison of the Partnership's 2022 operating results to its 2021 operating results can be found in the Management's Discussion and Analysis of Financial Condition and Results of Operations section in the Partnership's 2022 Annual Report on Form 10-K filed March 1, 2023.
+Added: A detailed comparison of the Partnership's 2023 operating results to its 2022 operating results can be found in the Management's Discussion and Analysis of Financial Condition and Results of Operations section in the Partnership's 2023 Annual Report on Form 10-K filed February 28, 2024.
Year Ended December 31,
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Net income attributable to noncontrolling interest in OpCo 306,767 280,343
−Removed: Net income attributable to Westlake Chemical
−Removed: Partners LP and limited partners' interest in net income
+Added: Net income attributable to Westlake Chemical Partners LP and limited partners'
+Added: interest in net income
$ 62,392 $ 54,283
54 unchanged sentences
For the year ended December 31, 2024, net income was $369.2 million on net sales of $1,135.9 million.
−Removed: This represents a decrease in net income of $0.2 million as compared to net income of $334.8 million on net sales of $1,593.1 million for the year ended December 31, 2022.
−Removed: Net income attributable to the Partnership in 2023 was $54.3 million as compared to $64.2 million in 2022, a decrease of $9.9 million.
−Removed: Income from operations was $357.7 million for 2023, as compared to $347.7 million for 2022.
−Removed: Net sales for 2023 decreased by $402.3 million as compared to 2022 primarily due to lower ethylene and co-products sales prices in 2023 compared to 2022.
−Removed: Additionally, net sales in 2022 includes a buyer deficiency fee of $23.8 million.
−Removed: Income from operations for 2023 increased compared to 2022 due to lower ethane feedstock and natural gas costs, partially offset by lower ethylene and co-products sales prices.
−Removed: Net income and net income attributable to the Partnership for 2023 decreased as compared to 2022 despite the higher income from operations due to higher interest expense.
+Added: This represents an increase in net income of $34.6 million as compared to net income of $334.6 million on net sales of $1,190.8 million for the year ended December 31, 2023.
+Added: Net income attributable to the Partnership in 2024 was $62.4 million as compared to $54.3 million in 2023, an increase of $8.1 million.
+Added: Income from operations was $390.4 million for 2024, as compared to $357.7 million for 2023, an increase of $32.7 million .
+Added: Net sales for 2024 decreased by $54.9 million as compared to 2023 primarily due to lower ethylene sales prices to Westlake in 2024 compared to 2023, including the impact of the sale of excess quantities of ethylene in 2024 at prices that excluded certain non-variable costs of production pursuant to the Ethylene Sales Agreement, partially offset by higher ethylene and co-products sales volumes and higher third-party ethylene sales prices.
+Added: Income from operations, net income and net income attributable to the Partnership for 2024 increased compared to 2023 due to higher third-party ethylene sales prices, lower ethane feedstock and natural gas costs and higher ethylene and co-products sales volumes, partially offset by lower ethylene sales prices to Westlake including the impact of the sale of excess quantities of ethylene at prices that excluded certain non-variable costs of production.
2024 Compared with 2023
Net sales decreased by $54.9 million, or 4.6%, to $1,135.9 million in 2024 from $1,190.8 million in 2023.
−Removed: The decrease in net sales in 2023 was primarily due to lower ethylene and co-products sales prices in 2023 as compared to 2022.
−Removed: Additionally, net sales in 2022 includes a buyer deficiency fee of $23.8 million.
+Added: The decrease in net sales in 2024 was primarily due to lower ethylene sales prices to Westlake in 2024 as compared to 2023 including the impact of the sale of excess quantities of ethylene at prices that excluded certain non-variable costs of production, partially offset by higher ethylene and co-products sales volumes and higher third-party ethylene sales prices.
Lower average sales prices in 2024 contributed to a 6.6% decrease in net sales compared to 2023.
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The gross profit margin was 36.9% in 2024 as compared to 32.5% in 2023.
−Removed: The increased gross profit margin in 2023 was primarily due to lower ethane feedstock and natural gas costs in 2023 as compared to 2022.
+Added: The increased gross profit margin in 2024 was primarily due to lower ethane feedstock and natural gas costs and higher third-party ethylene sales prices in 2024 as compared to 2023.
Selling, General and Administrative Expenses .
−Removed: Selling, general and administrative expenses remained relatively unchanged at $29.8 million in 2023 as compared to $29.7 million in 2022.
+Added: Selling, general and administrative expenses decreased by $1.3 million , or 4.4%, to $28.5 million in 2024 from $29.8 million in 2023.
+Added: The decrease in 2024, as compared to 2023, was mainly attributable to lower service costs.
Interest Expense—Westlake .
−Removed: Interest expense increased by $13.1 million to $26.5 million in 2023 from $13.4 million in 2022 due to a higher interest rate on debt owed to Westlake.
+Added: Interest expense remained relatively consistent at $25.7 million in 2024 compared to $26.5 million in 2023.
Other Income, net.
−Removed: Other income, net increased by $2.6 million to $4.2 million in 2023 from $1.6 million in 2022 primarily due to an increase in interest earned on the balance with Westlake under the Investment Management Agreement.
+Added: Other income, net increased by $1.1 million to $5.3 million in 2024 from $4.2 million in 2023 primarily due to an increase in interest earned on the balance with Westlake under the Investment Management Agreement due to a higher average amount of cash invested in 2024 as compared to 2023.
Provision for Income Taxes.
−Removed: Provision for income taxes was $0.8 million in 2023 as compared to $1.0 million in 2022.
+Added: Provision for income taxes remained consistent at $0.8 million in 2024 as compared to $0.8 million in 2023.
MLP Distributable Cash Flow.
−Removed: MLP distributable cash flow decreased by $13.3 million to $62.6 million in 2023 from $75.9 million in 2022.
−Removed: The decrease in MLP distributable cash flow was primarily a result of higher interest expense.
+Added: MLP distributable cash flow increased by $4.3 million to $66.9 million in 2024 from $62.6 million in 2023.
+Added: The increase in MLP distributable cash flow was primarily a result of higher net income, partially offset by higher reserves for future turnarounds.
EBITDA increased by $35.5 million to $507.6 million in 2024 from EBITDA of $472.1 million in 2023.
−Removed: The increased EBITDA, as compared to the prior year, was primarily due to lower ethane feedstock and natural gas costs in 2023 as compared to 2022, partially offset by lower ethylene and co-products sales prices.
+Added: The increased EBITDA, as compared to the prior year, was primarily due to higher third-party ethylene sales prices, lower ethane feedstock and natural gas costs and higher ethylene and co-products sales volumes in 2024 as compared to 2023, partially offset by lower ethylene sales prices to Westlake including the impact of the sale of excess quantities of ethylene at prices that excluded certain non-variable costs of production.
Operating Activities
Operating activities provided cash of $485.0 million in 2024 as compared to cash provided by operating activities of $452.0 million in 2023.
−Removed: The $11.7 million decrease in cash flows from operating activities was mainly due to cash used for the Calvert City Olefins turnaround activity and higher interest expense, which was partially offset by an increase in cash provided by working capital.
−Removed: Changes in components of working capital, which we define for the purposes of this cash flow discussion as accounts receivable, net—Westlake, accounts receivable, net—third parties, inventories, prepaid expenses and other current assets less accounts payable—Westlake, accounts payable—third parties and accrued and other liabilities, provided cash of $34.4 million in 2023 as compared to $9.5 million of cash provided in 2022, resulting in a favorable change of $24.9 million.
−Removed: The favorable change in working capital was mainly attributable to a favorable change in accounts receivable—third parties, accounts payable—third parties and accrued and other liabilities, primarily due to the timing of payment of accruals and the impact on accounts receivable of the Petro 2 turnaround activities in 2021, which impacted the changes in working capital during 2022.
−Removed: These favorable changes were partially offset by an unfavorable change in net accounts receivable—Westlake due to fluctuating ethane feedstock costs and a smaller buyer deficiency fee and Shortfall collected in 2023 compared to 2022.
+Added: The $33.0 million increase in cash flows from operating activities was mainly due to higher income from operations, which was partially offset by a decrease in cash provided by working capital.
+Added: Changes in components of working capital, which we define for the purposes of this cash flow discussion as accounts receivable, net—Westlake, accounts receivable, net—third parties, inventories, prepaid expenses and other current assets less accounts payable—Westlake, accounts payable—third parties and accrued and other liabilities, provided cash of $24.8 million in 2024 as compared to $34.4 million of cash provided in 2023, resulting in a unfavorable change of $9.6 million.
+Added: The unfavorable change in working capital was mainly attributable to unfavorable changes in accrued and other liabilities and accounts payable—third parties primarily due to higher maintenance costs accrual at December 31, 2023 as compared to December 31, 2024.
+Added: These unfavorable changes were partially offset by a favorable change in accounts receivable, net—third parties due to collection of a maintenance cost reimbursement and lower third party receivables at the end of 2024.
Investing Activities
1 unchanged sentence
The $13.1 million increase in cash used for investing activities was mainly due to an increase in net cash invested under the Investment Management Agreement in 2024 as compared to 2023.
−Removed: During 2023, we invested $174.1 million with Westlake, and $145.0 million of such investments matured.
+Added: During 2024, we invested $40.0 million with Westlake.
During 2023, we invested $174.1 million with Westlake, and $145.0 million of such investments matured.
17 unchanged sentences
In order to fund non-annual turnaround expenditures, we cause OpCo to reserve an amount for turnaround costs during each twelve-month period designed to cover future turnaround activities.
−Removed: Each of OpCo's ethylene production facilities requires turnaround maintenance approximately every five years.
+Added: Each of OpCo's ethylene production facilities requires turnaround maintenance approximately every five to eight years.
By reserving additional cash annually, we intend to reduce the variability in OpCo's cash flow.
+Added: Although we had previously planned to commence the next maintenance turnaround at the Petro 1 ethylene unit in the third quarter of 2024, we made the decision to defer the planned turnaround in order to maintain production and capitalize on higher average third-party ethylene sales prices during the third quarter of 2024.
+Added: We commenced the planned maintenance turnaround in the first quarter of 2025.
Westlake's purchase price for ethylene purchased under the Ethylene Sales Agreement includes a component (adjusted annually) designed to cover, over the long term, substantially all of OpCo's turnaround expenditures.
4 unchanged sentences
Per the terms of the Investment Management Agreement, cash invested with Westlake earns a market return plus five basis points and Westlake provides daily availability of the invested cash to meet any liquidity needs of the Partnership or OpCo.
−Removed: On January 22, 2024, the board of directors of Westlake Chemical Partners GP LLC, our general partner, approved a quarterly distribution of $0.4714 per unit payable on February 20, 2024 to unitholders of record as of February 2, 2024, which equates to approximately $16.6 million per quarter, or approximately $66.4 million per year in aggregate, based on the number of common units outstanding on December 31, 2023.
+Added: On January 27, 2025, the board of directors of Westlake Chemical Partners GP LLC, our general partner, approved a quarterly distribution of $0.4714 per unit payable on February 25, 2025 to unitholders of record as of February 7, 2025, which equates to a total amount of approximately $16.6 million per quarter, or approximately $66.4 million per year in aggregate, based on the number of common units outstanding on December 31, 2024.
We do not have a legal or contractual obligation to pay distributions on a quarterly basis or any other basis at our minimum quarterly distribution rate or any other rate.
76 unchanged sentences
The fair value of the financial instruments is estimated using quoted market prices in active markets and observable market-based inputs or unobservable inputs that are corroborated by market data when active markets are not available or unobservable inputs that are not corroborated by market data.
−Removed: We settled all derivatives in 2020 and did not enter into any new derivative arrangements during 2021, 2022 or 2023;
+Added: There were no derivative positions during the years ended December 31, 2024, 2023 and 2022.
However, we may enter into derivative arrangements in the future.
−Removed: Goodwill impairment.
Goodwill is evaluated for impairment when events or changes in circumstances indicate the fair value of a reporting unit with goodwill has been reduced below its carrying value, and otherwise at least annually.
7 unchanged sentences
The significant assumptions used in determining the fair value of the reporting unit using the market value methodology include the determination of appropriate market comparables and the estimated multiples of EBITDA a willing buyer is likely to pay.
−Removed: We elected to perform the quantitative assessment during 2023, and such assessment did not indicate impairment of the goodwill.
−Removed: Under the discounted cash flow methodology, even if the fair value of OpCo decreased by 10%, the carrying value of OpCo would not exceed its fair value.
+Added: We elected to perform the qualitative assessment in the fourth quarter of 2024 and concluded that it is more likely than not that the fair value of the reporting unit exceeds the carrying amount and, as such, the quantitative impairment test was not required.
Environmental and Legal Obligations.
10 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.