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Westlake Chemical Partners Westlake Chemical Partners LP Announces Second Quarter 2021 Results August 3 , 2021 • Record quarterly net income of $ 25.1 million , an increase of 68 % compared to second quarter 2020 • Declared quarterly distribution of $ 0.4714 per unit ; 28th consecutive quarterly distribution HOUSTON -- ( BUSINESS WIRE ) -- Westlake Chemical Partners LP ( NYSE : WLKP ) ( the " Partnership " ) today reported record net income attributable to the Partnership in the second quarter of 2021 of $ 25.1 million , or $ 0.71 per limited partner unit , an increase of $ 10.2 million compared to second quarter 2020 net income attributable to the Partnership of $ 14.9 million . The increase in net income was a result of higher production , higher earnings on third - party sales as well as a buyer deficiency fee . The buyer deficiency fee of $ 8.7 million is a result of lower planned production in 2021 attributable to the impacts of the winter storm which occurred in the first quarter and an outage at Westlake Chemical OpCo LP ( " OpCo " ) Petro 1 facility , which occurred on June 25 , 2021. Cash flows from operating activities in the second quarter of 2021 were $ 131.7 million , an increase of $ 18.9 million compared to second quarter 2020 cash flows from operating activities of $ 112.8 million . For the three months ended June 30 , 2021 , MLP distributable cash flow of $ 25.5 million increased by $ 8.6 million from second quarter 2020 MLP distributable cash flow of $ 16.9 million . The increase in MLP distributable cash flow was primarily attributable to the higher production and resulting higher earnings at OpCo , partially offset by increased maintenance costs and turnaround reserves . Record second quarter 2021 net income attributable to the Partnership of $ 25.1 million increased by $ 10.0 million compared to first quarter 2021 net income attributable to the Partnership of $ 15.1 million . This increase was primarily attributable to higher production at OpCo and increased earnings on third party sales . Second quarter 2021 cash flows from operating activities of $ 131.7 million decreased by $ 23.7 million compared to first quarter 2021 cash flows from operating activities of $ 155.4 million . This decrease in cash flows from operating activities was primarily due to the receipt of a receivable from Westlake Chemical Corporation ( " Westlake Chemical " ) in the first quarter , partially offset by higher earnings during the quarter . Second quarter 2021 MLP distributable cash flow of $ 25.5 million increased by $ 9.3 million compared to first quarter 2021 MLP distributable cash flow of $ 16.2 million . This increase was primarily attributable to the higher production and earnings at OpCo . Net income attributable to the Partnership of $ 40.2 million , or $ 1.14 per limited partner unit , for the six months ended June 30 , 2021 increased by $ 7.6 million compared to the first six months of 2020 net income attributable to the Partnership of $ 32.6 million . The increase in net income attributable to the Partnership as compared to the prior - year period was due to higher earnings on ethylene sold to Westlake Chemical under the Ethylene Sales Agreement and third parties and a buyer deficiency of $ 18.4 million related to the winter storm that occurred in the first quarter of 2021 , partially offset by lower ethylene production . Cash flows from operating activities in the first six months of 2021 were $ 287.1 million , an increase of $ 63.4 million compared to the first six months of 2020 cash flows from operating activities of $ 223.7 million . This increase was primarily due to the receipt of a prior year receivable from Westlake and higher earnings during the period . For the six months ended June 30 , 2021 , MLP distributable cash flow of $ 41.8 million increased by $ 6.6 million compared to the first six months of 2020 MLP distributable cash flow of $ 35.2 million . The increase in MLP distributable cash flow as compared to the prior - year period was primarily attributable to the Partnership's higher earnings at OpCo , partially offset by increased maintenance costs and turnaround reserves . " The Partnership had a record second quarter driven by the strong consumer markets for PVC construction materials and polyethylene packaging , which drove the resulting demand for ethylene . The strong demand for ethylene and the resulting robust pricing environment drove higher margins in our second quarter 2021 third - party ethylene sales , " said Albert Chao , President and Chief Executive Officer . OpCo's Ethylene Sales Agreement with Westlake Chemical is designed to provide for stable and predictable cash flows . The agreement provides that 95 % of OpCo's ethylene production is sold to Westlake Chemical for a cash margin of $ 0.10 per pound , net of operating costs , maintenance capital expenditures and reserves for future turnaround expenditures . On August 2 , 2021 , the Partnership announced that the Board of Directors of Westlake Chemical Partners GP LLC had approved a quarterly distribution for the second quarter of 2021 of $ 0.4714 per unit to be payable on August 26 , 2021 to unitholders of record as of August 12 , 2021 , representing the 28th consecutive quarterly distribution to our unitholders . MLP distributable cash flow provided trailing twelve - month coverage of 1.18x the declared distributions for the second quarter of 2021 . The statements in this release and the related teleconference relating to matters that are not historical facts , such as those with respect to cost recovery of expenses incurred in the second quarter of 2021 , are forward - looking statements . These forward- looking statements are subject to significant risks and uncertainties . Actual results could differ materially , based on factors including , but not limited to , the COVID - 19 pandemic and the response thereto ; operating difficulties ; the volume of ethylene that we are able to sell ; the price at which we are able to sell ethylene ; changes in the price and availability of feedstocks ; changes in prevailing economic conditions ; actions and commitments of Westlake Chemical Corporation ; actions of third parties ; inclement or hazardous weather conditions , including flooding , and the physical impacts of climate change ; environmental hazards ; changes in laws and regulations ( or the interpretation thereof ) ; inability to acquire or maintain necessary permits ; inability to obtain necessary