Westlake Chemical Partners LP (WLKP): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumérjase en el intrincado mundo de Westlake Chemical Partners LP (WLKP), una potencia química dinámica que transforma paisajes industriales a través de asociaciones estratégicas innovadoras y capacidades de fabricación de vanguardia. Este lienzo de modelo comercial integral revela cómo WLKP navega por mercados petroquímicos complejos, ofreciendo soluciones químicas de alto rendimiento que generan valor en diversos sectores industriales, desde automotriz y envasado hasta construcción y bienes de consumo. Descubra el plan estratégico que impulsa el notable éxito y el crecimiento sostenible de esta compañía en la industria química en constante evolución.

Westlake Chemical Partners LP (WLKP) - Modelo de negocios: asociaciones clave

Asociación estratégica con Westlake Chemical Corporation

Westlake Chemical Partners LP mantiene un Asociación estratégica primaria con Westlake Chemical Corporation, su empresa matriz. A partir de 2023, Westlake Chemical Corporation posee 63.4% de interés de sociedad limitada en WLKP.

Acuerdos de empresa conjunta

Pareja	Tipo de asociación	Año establecido
Westlake Chemical Corporation	Fabricación petroquímica	2014
Corporación axiall	Colaboración de productos de cloro	2015

Relaciones aguas abajo

WLKP mantiene asociaciones críticas posteriores con fabricantes industriales:

• Componentes automotrices fabricantes
• Productores de material de construcción
• Proveedores de la industria del embalaje

Asociaciones de logística y transporte

Las asociaciones de logística clave incluyen:

• Servicios de transporte de Chem Logix
• Enterprise Products Partners LP
• Magellan Midstream Partners

Colaboración tecnológica

Institución de investigación	Área de enfoque	Colaboración desde
Universidad de arroz	Innovación de polímeros	2018
Universidad de Texas	Ingeniería química	2019

Métricas de asociación financiera

Contribución de ingresos de la asociación en 2023: $ 2.4 mil millones

Inversión de I + D a través de asociaciones: $ 87 millones

Westlake Chemical Partners LP (WLKP) - Modelo de negocio: actividades clave

Producción y procesamiento de etileno y polímeros

Capacidad de producción anual de etileno: 2.45 mil millones de libras. Volumen de producción de polímeros en 2022: 1.8 mil millones de libras. Instalaciones de producción ubicadas en Lake Charles, Louisiana y Longview, Texas.

Instalación	Capacidad de etileno	Salida de polímero
Lago Charles	1.200 millones de libras	850 millones de libras
View Longview	1.25 mil millones de libras	950 millones de libras

Fabricación de clor-alcali y vinilos

Capacidad de producción anual de cloro: 1,5 millones de toneladas. Producción de monómero de cloruro de vinilo: 1.200 millones de libras por año.

• Instalaciones de producción de cloro en Texas y Louisiana
• Procesos de fabricación integrados
• Producción anual de refrescos cáusticos: 1.3 millones de toneladas

Desarrollo e innovación de productos petroquímicos

Inversión en I + D en 2022: $ 45 millones. Las nuevas áreas de enfoque de desarrollo de productos incluyen polímeros avanzados y soluciones químicas sostenibles.

Categoría de innovación	Inversión	Nuevos productos desarrollados
Polímeros avanzados	$ 22 millones	3 nuevas calificaciones de polímeros
Soluciones sostenibles	$ 23 millones	2 procesos químicos ecológicos

Gestión de la cadena de suministro químico

Presupuesto total de gestión de la cadena de suministro: $ 75 millones en 2022. Red de logística que cubre 12 estados con 250 socios de transporte.

• Red de logística integrada
• Modos de transporte múltiple: camión, ferrocarril, tubería
• Mejora de la eficiencia logística anual: 7.2%

Fabricación sostenible y cumplimiento ambiental

Gasto de cumplimiento ambiental: $ 38 millones en 2022. Objetivo de reducción de emisiones de gases de efecto invernadero: 15% para 2025.

Métrica de sostenibilidad	Rendimiento actual	Objetivo
Reducción de emisiones de GEI	Reducción del 8%	15% para 2025
Eficiencia de uso de agua	Mejora del 12%	20% para 2026

Westlake Chemical Partners LP (WLKP) - Modelo de negocio: recursos clave

Instalaciones de producción química avanzada

Westlake Chemical Partners LP opera múltiples instalaciones de producción con las siguientes especificaciones:

Ubicación	Tipo de instalación	Capacidad de producción
Lago Charles, Louisiana	Planta de polietileno	1.100 millones de libras anuales
Calvert City, Kentucky	Instalación de monómero de cloruro de vinilo	2.3 mil millones de libras anuales

Experiencia técnica y capital intelectual

Tecnologías de producción de productos químicos patentados:

• Procesos de polimerización avanzados
• Tecnologías de conversión química de alta eficiencia
• Desarrollo de catalizador especializado

Inversión de capital en infraestructura de fabricación

Inversión de capital total a partir de 2023 informes financieros:

• Infraestructura de fabricación: $ 1.2 mil millones
• Gastos de capital recientes: $ 157 millones
• Capital de mantenimiento anual: $ 45-50 millones

Capacidades de la fuerza laboral

Categoría de empleado	Número de empleados	Habilidades especializadas
Ingenieros químicos	312	Ingeniería de polímeros avanzados
Especialistas técnicos	214	Optimización de procesos

Westlake Chemical Partners LP (WLKP) - Modelo de negocio: propuestas de valor

Productos petroquímicos y polímeros de alta calidad

A partir de 2024, Westlake Chemical Partners LP produce:

Categoría de productos	Volumen de producción anual	Cuota de mercado
Polietileno	3.1 millones de toneladas métricas	7.2%
Polímeros especializados	825,000 toneladas métricas	5.8%
Productos químicos de productos básicos	2.4 millones de toneladas métricas	6.5%

Cadena de suministro químico consistente y confiable

Métricas de la cadena de suministro a partir de 2024:

• Tasa de entrega a tiempo a tiempo: 98.7%
• Tiempo de cumplimiento de pedido promedio: 3.2 días
• Red de distribución global: 17 países
• Costo logístico como porcentaje de ingresos: 4.6%

Procesos de fabricación rentables

Indicadores de eficiencia de fabricación:

Métrico	Valor
Costo de producción por tonelada	$672
Relación de eficiencia energética	0.87
Gasto operativo	$ 1.2 mil millones

Soluciones químicas personalizadas

Segmentos de aplicación industrial atendidos:

• Automotriz: 22% de la cartera de productos
• Construcción: 18% de la cartera de productos
• Embalaje: 35% de la cartera de productos
• Bienes de consumo: 15% de la cartera de productos

Compromiso con la sostenibilidad

Métricas de desempeño ambiental:

Indicador de sostenibilidad	Valor 2024
Reducción de emisiones de carbono	24.3%
Uso de energía renovable	16.5%
Tasa de reciclaje de residuos	87.2%

Westlake Chemical Partners LP (WLKP) - Modelo de negocios: relaciones con los clientes

Acuerdos contractuales a largo plazo con clientes industriales

A partir de 2024, Westlake Chemical Partners LP mantiene contratos estratégicos de suministro a largo plazo con clientes industriales clave. La duración promedio del contrato es de aproximadamente 3-5 años, que cubre segmentos de productos químicos de polietileno y especialidades.

Segmento de clientes	Duración del contrato	Valor anual del contrato
Fabricantes de embalaje	4-5 años	$ 85-120 millones
Componentes automotrices	3-4 años	$ 65-95 millones
Materiales de construcción	3-5 años	$ 50-75 millones

Soporte técnico y colaboración de desarrollo de productos

Westlake Chemical Partners asigna aproximadamente $ 12.5 millones anuales para iniciativas de desarrollo de productos colaborativos con clientes clave.

• Equipo de soporte técnico: 42 profesionales dedicados
• Tiempo de colaboración promedio de I + D por proyecto: 6-8 meses
• Modificaciones de productos específicos del cliente: 18-22 por año

Equipos de gestión de cuentas dedicados

La compañía emplea a 35 gerentes de cuentas especializados en diferentes sectores industriales, con un valor promedio de cartera de clientes de $ 45-60 millones por gerente.

Infraestructura de servicio al cliente receptivo

Métricas de servicio al cliente para 2024:

• Tiempo de respuesta promedio: 2.3 horas
• Calificación de satisfacción del cliente: 92.5%
• Disponibilidad de soporte técnico: 24/7
• Tasa de resolución de servicio: 97.8%

Plataformas digitales para la gestión de pedidos e información técnica

Estadísticas de participación de la plataforma digital:

Característica de la plataforma	Tasa de adopción de usuarios	Transacciones anuales
Gestión de pedidos en línea	78%	26,500 transacciones
Acceso a la documentación técnica	85%	42,000 descargas de documentos
Seguimiento de inventario en tiempo real	72%	18,750 sesiones activas

Westlake Chemical Partners LP (WLKP) - Modelo de negocios: canales

Fuerza de ventas directa dirigida a clientes industriales

Westlake Chemical Partners LP mantiene un equipo de ventas industrial dedicado centrado en la distribución de polietileno y productos químicos especializados. En 2023, el equipo de ventas cubrió aproximadamente 87 cuentas activas de clientes industriales en América del Norte.

Métrico de canal de ventas	2023 datos
Total de clientes industriales	87 cuentas activas
Valor promedio del contrato del cliente	$ 3.2 millones anualmente
Tamaño del equipo de ventas	24 representantes de ventas directas

Plataformas de adquisición y pedido en línea

La Compañía utiliza un sistema de adquisiciones digitales patentadas con las siguientes especificaciones:

• 98.6% Tasa de procesamiento de pedidos digitales
• Capacidades de seguimiento de inventario en tiempo real
• Portal de clientes integrado con descargas de especificaciones técnicas

Ferias y conferencias comerciales de la industria química

Westlake Chemical Partners LP participa en 7-9 principales conferencias de la industria anualmente, con una inversión de marketing total de $ 425,000 en 2023.

Tipo de conferencia	Participación anual	Inversión de marketing
Conferencias químicas nacionales	4-5 eventos	$275,000
Exposiciones de la industria regional	3-4 eventos	$150,000

Marketing estratégico a través de publicaciones de la industria

La estrategia de marketing incluye publicidad específica y colocación de contenido técnico en publicaciones especializadas de la industria química.

• 6 principales asociaciones de publicación de la industria
• Gasto de marketing anual: $ 187,000
• Alcance: aproximadamente 42,000 profesionales de la industria

Comunicación digital y documentación técnica

La infraestructura de comunicación digital incluye plataformas de documentación técnica integrales con las siguientes métricas:

Métrica de comunicación digital	2023 datos
Descargas de documentos técnicos	14,237 descargas anuales
Páginas de recursos técnicos del sitio web	92 páginas de especificaciones técnicas activas
Tiempo de actividad de la plataforma de comunicación digital	99.7%

Westlake Chemical Partners LP (WLKP) - Modelo de negocios: segmentos de clientes

Fabricantes de plásticos y envases

Westlake Chemical Partners LP sirve a fabricantes de plásticos y envases con métricas específicas de segmento de clientes:

Segmento de mercado	Volumen anual	Contribución de ingresos
Clientes de polietileno	1.3 millones de toneladas métricas	$ 412 millones
Productores de cine de embalaje	850,000 toneladas métricas	$ 276 millones

Proveedores de la industria automotriz

Detalles del segmento de clientes automotrices clave:

• Total de componentes automotrices clientes: 187
• Suministro anual de polímero automotriz: 425,000 toneladas métricas
• Ingresos del segmento automotriz: $ 203 millones

Productores de materiales de construcción

Desglose del segmento de clientes de materiales de construcción:

Categoría de productos	Suministro anual	Cuota de mercado
Resina de PVC	672,000 toneladas métricas	14.5%
Tubería y materiales de ajuste	248,000 toneladas métricas	9.2%

Fabricantes de bienes de consumo

Segmentos de clientes de bienes de consumo Segmento del cliente:

• Total de bienes de consumo clientes: 214
• Suministro anual de polímeros: 328,000 toneladas métricas
• Ingresos del segmento de bienes de consumo: $ 167 millones

Usuarios químicos agrícolas e industriales

Datos del segmento de clientes químicos agrícolas e industriales:

Tipo de cliente	Volumen químico anual	Ganancia
Químicos agrícolas	276,000 toneladas métricas	$ 89 millones
Usuarios de productos químicos industriales	412,000 toneladas métricas	$ 136 millones

Westlake Chemical Partners LP (WLKP) - Modelo de negocio: Estructura de costos

Gastos de adquisición de materia prima

A partir de 2023, los gastos de adquisición de materias primas de Westlake Chemical Partners LP para la producción de etileno y polietileno fueron de aproximadamente $ 1.2 mil millones anuales.

Materia prima	Costo de adquisición anual	Volumen comprado
Etileno	$ 752 millones	1.3 millones de toneladas métricas
Propileno	$ 398 millones	750,000 toneladas métricas

Costos de fabricación y producción

Los costos totales de fabricación y producción para Westlake Chemical Partners LP en 2023 fueron de $ 845 millones.

• Gastos operativos de la instalación de producción: $ 412 millones
• Mantenimiento del equipo: $ 127 millones
• Costos de consumo de energía: $ 186 millones
• Gastos laborales y de la fuerza laboral: $ 120 millones

Inversiones de investigación y desarrollo

Westlake Chemical Partners LP asignado $ 45.2 millones a iniciativas de investigación y desarrollo en 2023.

Área de enfoque de I + D	Monto de la inversión
Tecnología de polímeros	$ 22.5 millones
Innovaciones de sostenibilidad	$ 15.3 millones
Optimización de procesos	$ 7.4 millones

Iniciativas de cumplimiento ambiental y sostenibilidad

Costos de cumplimiento ambiental y sostenibilidad para Westlake Chemical Partners LP totalizó $ 63.7 millones en 2023.

• Tecnología de reducción de emisiones: $ 24.5 millones
• Programas de gestión de residuos: $ 18.2 millones
• Cumplimiento regulatorio ambiental: $ 21 millones

Infraestructura de logística y transporte

Los gastos de logística y transporte para Westlake Chemical Partners LP fueron $ 187.3 millones en 2023.

Modo de transporte	Costo anual	Porcentaje de logística total
Transporte de camiones	$ 98.6 millones	52.6%
Transporte ferroviario	$ 62.4 millones	33.3%
Envío marítimo	$ 26.3 millones	14.1%

Westlake Chemical Partners LP (WLKP) - Modelo de negocios: flujos de ingresos

Venta de polímeros y productos químicos

A partir de 2023, Westlake Chemical Partners LP reportó ingresos totales de $ 1,077 millones. La cartera de productos de la compañía incluye:

• Productos de polietileno
• Productos químicos especializados
• Vinilos y derivados químicos relacionados

Categoría de productos	Ingresos anuales ($ millones)	Porcentaje de ingresos totales
Polietileno	612	56.8%
Químicos especializados	285	26.5%
Vinilos	180	16.7%

Contratos de suministro a largo plazo

Westlake Chemical Partners LP ha asegurado acuerdos de suministro a largo plazo con una duración promedio de contrato de 7-10 años. El valor total de estos contratos es de aproximadamente $ 2.4 mil millones.

Modelos de precios basados ​​en el rendimiento

Las estrategias de precios clave incluyen:

• Descuentos de precios basados ​​en volumen
• Mecanismos de precios indexados por el mercado
• Niveles de precios basados ​​en la calidad

Modelo de precios	Ajuste de precio promedio	Cobertura de contrato
Descuentos de volumen	3-5%	65% de los contratos
Precios de mercado	+/- 2% trimestral	35% de los contratos

Ofertas de productos químicos de valor agregado

Westlake Chemical Partners LP genera ingresos adicionales a través del desarrollo especializado de productos, con productos de valor agregado que contribuyen con $ 215 millones en 2023.

Diversificación del mercado geográfico

Distribución de ingresos en los mercados geográficos:

Región	Ingresos ($ millones)	Porcentaje
América del norte	742	68.9%
Europa	180	16.7%
Asia-Pacífico	155	14.4%

Westlake Chemical Partners LP (WLKP) - Canvas Business Model: Value Propositions

Predictable, stable cash flow for unitholders via a fee-based model

You're looking at a structure designed to smooth out the bumps of the commodity cycle. The core value here is the stability of the cash distributions, which Westlake Chemical Partners LP has maintained without a decrease for 45 consecutive quarters since its 2014 Initial Public Offering. This predictability is anchored by the fee-based nature of the primary revenue source. For the third quarter of 2025, the distributable cash flow provided a trailing twelve-month coverage ratio of 0.75x the declared distributions, which management attributed to the timing of maintenance capital expenditures. Still, the cumulative coverage ratio since the IPO remains at approximately 1.05x.

• 45 consecutive quarterly distributions maintained since IPO.
• Q2 2025 quarterly distribution declared at $0.4714 per common unit.
• Q3 2025 net income attributable to the Partnership was $14.7 million.
• Net Income Per Limited Partner Unit (Basic and Diluted) for Q3 2025 was $0.42.

Guaranteed supply of 95% of ethylene production to Westlake Corporation

The partnership has locked in the offtake for the vast majority of its output through a renewed agreement. This agreement extends through December 31, 2027, securing the sales channel for the core product. This contractual arrangement is the mechanism that delivers the stable cash flows you are interested in. For the nine months ended September 30, 2025, sales to Westlake Corporation represented approximately 87.3% of Westlake Chemical Partners LP's total net sales.

Fixed cash margin of $0.10 per pound on ethylene sales

This is the key insulation layer against volatile market pricing for ethylene. The Ethylene Sales Agreement specifies that 95% of the production sold to Westlake Corporation carries a fixed cash margin of $0.10 per pound. This margin is calculated net of specified items, including operating costs, maintenance capital expenditures, and reserves set aside for future turnaround expenditures. This fixed component is what allows the business model to demonstrate resilience even when broader chemical market conditions soften, as noted by management regarding soft global industrial activity in 2025.

Here's a quick look at the Q3 2025 performance metrics that flow from this structure:

Metric	Amount (Q3 2025)
Consolidated Net Sales	$308.9 million
Gross Profit	$99.4 million
Gross Profit Margin	32.2%
Cash & Investments with Westlake (End of Q3 2025)	$51 million
Long-term Debt (End of Q3 2025)	$400 million

Reliable, high-volume production of a key petrochemical building block

Westlake Chemical Partners LP owns a 22.8% interest in Westlake Chemical OpCo LP, which operates the production assets. These assets include three ethylene production facilities located across Calvert City, Kentucky, and Lake Charles, Louisiana, along with an ethylene pipeline. The Q2 2025 results showed the benefit of completing the planned Petro 1 turnaround in Lake Charles, which had previously impacted production volume. For instance, Q3 2025 Total Net Sales of $308.9 million represented an increase of 11.5% from Q3 2024, primarily driven by higher ethylene sales volumes to Westlake.

• Facilities located in Calvert City, Kentucky, and Lake Charles, Louisiana.
• Ownership stake in OpCo is 22.8%.
• Q3 2025 Total Net Sales increased 11.5% year-over-year.
• No further turnarounds were noted as planned for the remainder of 2025 or in 2026.

Westlake Chemical Partners LP (WLKP) - Canvas Business Model: Customer Relationships

The Customer Relationships for Westlake Chemical Partners LP (WLKP) are bifurcated, involving a deeply integrated, long-term relationship with its parent, Westlake Corporation, and a purely transactional relationship with its public unitholders.

Highly integrated, long-term contractual relationship with Westlake Corporation

Westlake Chemical Partners LP is fundamentally tied to Westlake Corporation, which formed the Partnership in 2014 to operate, acquire, and develop ethylene production facilities and related assets. This integration is quantified by ownership structure and financial agreements. Westlake Chemical Partners LP owns a 22.8% limited partner interest in Westlake Chemical OpCo LP, while Westlake Corporation retains the remaining 77.2% limited partner interest in OpCo and a significant interest in WLKP itself. The stability of the Partnership's cash flows is explicitly linked to the Ethylene Sales Agreement with Westlake Corporation, which is designed to provide stable and predictable cash flows by minimizing market volatility and production risk.

The financial interdependence is evident in cash management practices. As of the end of the second quarter of 2025, WLKP had consolidated cash balance and cash investments with Westlake through an investment management agreement totaling $81 million. This figure was reported as $51 million at the end of the third quarter of 2025.

Here are the key structural relationships as of 2025:

Relationship Metric	Value/Detail	Date/Period Reference
WLKP Interest in OpCo	22.8% Limited Partner Interest	As of March 31, 2025
Westlake Corp. Interest in OpCo	77.2% Limited Partner Interest	As of March 31, 2025
Consolidated Cash with Westlake Corp.	$81 million	End of Q2 2025
Consolidated Cash with Westlake Corp.	$51 million	End of Q3 2025
Key Contractual Element	Ethylene Sales Agreement	Ongoing

This relationship is deep; it's not just a supplier-customer dynamic.

Dedicated account management and operational alignment with the parent

Operational alignment is managed through the structure where Westlake Corporation formed WLKP to operate specific assets, including three ethylene production facilities and an ethylene pipeline. The management of WLKP is handled by Westlake Chemical Partners GP LLC, the general partner. Financial reporting and communication are channeled through Westlake Corporation's Investor Relations contacts for both media and investor inquiries. For instance, the Q2 2025 distribution announcement directed both Media Inquiries and Investor Inquiries to Westlake Corp. contacts.

The operational alignment dictates cash flow predictability, as the Ethylene Sales Agreement with Westlake is specifically noted to minimize market volatility for WLKP. The Partnership's distributable cash flow for the third quarter of 2025 was $14.9 million, a decrease of $3.0 million compared to the third quarter of 2024, partially attributed to higher maintenance capital expenditures resulting from changes in the timing of maintenance activities in 2025.

Transactional relationship with public unitholders (investors)

The relationship with public unitholders is primarily transactional, centered on the consistent declaration and payment of quarterly distributions. Westlake Chemical Partners LP has a track record of 44 consecutive quarterly distributions announced since its Initial Public Offering in July 2014, as of the Q2 2025 announcement. The distribution amount declared for both the first quarter of 2025 and the second quarter of 2025 was $0.4714 per unit. The third quarter of 2025 also saw a distribution of $0.4714 per common unit. Distributions have increased by 71% since the Partnership's original minimum quarterly distribution of $0.275 per unit. The Partnership's distributable cash flow provided trailing twelve-month coverage of 0.75x the declared distributions for the third quarter of 2025. Since the IPO, the cumulative coverage ratio stands at approximately 1.05x.

You can see the consistency in the distribution schedule:

• Q1 2025 Distribution Declared: $0.4714 per unit
• Q2 2025 Distribution Declared: $0.4714 per unit
• Q3 2025 Distribution Declared: $0.4714 per unit
• Total Consecutive Distributions: 45 (as of Q3 2025 announcement)
• Distribution Growth Since IPO: 71%

For tax purposes, brokers and nominees must treat 100.0% of the Partnership's distributions to non-U.S. investors as being attributable to income effectively connected with a United States trade or business, subjecting those distributions to federal income tax withholding.

Westlake Chemical Partners LP (WLKP) - Canvas Business Model: Channels

You're looking at how Westlake Chemical Partners LP moves its product and communicates with its owners. It's a very focused set of channels, heavily tied to its relationship with Westlake Corporation.

Direct physical pipeline delivery of ethylene to Westlake Corporation facilities

The primary channel for Westlake Chemical Partners LP's main product is physical infrastructure. Westlake Chemical OpCo LP's assets include an ethylene pipeline, which connects its production facilities in Calvert City, Kentucky, and Lake Charles, Louisiana, directly to Westlake Corporation facilities. This is governed by the Ethylene Sales Agreement. This agreement dictates that 95% of OpCo's ethylene production is sold directly to Westlake.

The financial structure of this channel is based on a set cash margin. The sale price is set for a cash margin of $0.10 per pound, calculated net of operating costs, maintenance capital expenditures, and reserves for future turnaround expenditures. This arrangement is designed to provide stable and predictable cash flows, which directly support the partnership's distributions. For the nine months ended September 30, 2025, sales to Westlake represented approximately 87.3% of Westlake Chemical Partners LP's total net sales.

Investor Relations website and SEC filings for unitholder communication

Communication with unitholders relies on standard regulatory and digital channels. The Investor Relations website, found at http://www.wlkpartners.com, serves as the central hub for official documentation. For instance, the Annual Report on Form 10-K for the fiscal year ended December 31, 2024, was filed with the Securities and Exchange Commission on March 5, 2025, and made available on the site. Unitholders can request a hard copy of this report, including audited financial statements, free of charge.

Key financial updates are disseminated through press releases, which are then archived on the site. For example, the third quarter 2025 results were announced via press release on October 28, 2025, followed by an earnings conference call scheduled for October 30th, 2025. This digital channel ensures compliance and broad access to required disclosures.

Quarterly distribution payments to unitholders

The final, and perhaps most critical, channel for returning capital to investors is the direct distribution payment process. Westlake Chemical Partners LP has maintained a consistent quarterly payment schedule. This was the 45th consecutive quarterly distribution announced since the initial public offering in July 2014.

Here are the specific per-unit distribution amounts declared for the first three quarters of 2025:

• Q1 2025 Distribution: $0.4714 per unit, paid May 29, 2025.
• Q2 2025 Distribution: $0.4714 per unit, paid August 27, 2025.
• Q3 2025 Distribution: $0.4714 per unit, paid November 26, 2025.

The annualized distribution based on these figures would total $1.8856 per unit ($0.4714 multiplied by four). One source reports the current annual dividend as $1.89 per share, with a yield of 9.92% as of late October 2025. The partnership treats 100.0% of these distributions to non-U.S. investors as subject to federal income tax withholding.

The history of these payments channels the partnership's operational success directly to the unitholders. Here's a look at the 2025 distribution schedule:

Distribution Quarter	Declaration Date	Ex-Dividend Date	Record Date	Pay Date	Amount Per Unit (USD)
First Quarter 2025	April 30, 2025	May 13, 2025	May 13, 2025	May 29, 2025	0.4714
Second Quarter 2025	July 30, 2025	August 12, 2025	August 12, 2025	August 27, 2025	0.4714
Third Quarter 2025	October 28, 2025	November 10, 2025	November 10, 2025	November 26, 2025	0.4714

The distributable cash flow for the third quarter of 2025 was $14.9 million, or $0.42 per unit, which covered the declared distribution for that period. Finance: draft 13-week cash view by Friday.

Westlake Chemical Partners LP (WLKP) - Canvas Business Model: Customer Segments

Westlake Corporation (WLK) as the primary, captive customer

Westlake Chemical Partners LP is fundamentally structured around its relationship with its parent, Westlake Corporation. Westlake Chemical Partners LP was formed by Westlake Corporation to operate, acquire, and develop ethylene production facilities and other qualified assets. This relationship is formalized through a long-term supply agreement, which is key to the Partnership's predictable cash flows and stable foundation for unitholder distributions.

Westlake Chemical Partners LP holds a 22.8% interest in Westlake Chemical OpCo LP. OpCo's assets are the core revenue drivers, including three ethylene production facilities located in Calvert City, Kentucky, and Lake Charles, Louisiana, along with a 200-mile ethylene pipeline. The total annual capacity of these facilities is approximately 3.7 billion pounds of ethylene.

Here's a look at the structure that defines this primary customer relationship:

Metric	Value/Detail
WLKP Ownership in OpCo	22.8% Interest
Ethylene Production Capacity	Approximately 3.7 billion pounds Annually
Key Asset Location	Calvert City, KY, and Lake Charles, LA
Q3 2025 Partnership Net Income	$15 million
Q3 2025 Distributable Cash Flow	$15 million, or $0.42 per unit

The stability of this fixed-margin ethylene sales agreement with Westlake Corporation minimizes market volatility for Westlake Chemical Partners LP.

Institutional and individual investors seeking stable MLP distributions

The second major segment is the unitholder base, attracted by the Master Limited Partnership (MLP) structure's focus on consistent cash returns. Westlake Chemical Partners LP has maintained stable quarterly cash distributions since its Initial Public Offering in July 2014. The Partnership has made 44 consecutive quarterly distributions as of Q2 2025.

You can see the commitment to this segment in the recent payout history:

• Quarterly Distribution (Q3 2025): $0.4714 per common unit.
• Last Ex-Dividend Date: November 10, 2025.
• TTM Dividend Payout (as of Dec 04, 2025): $1.89 per share.
• Annual Dividend Yield (as of Dec 04, 2025): 9.92%.
• Distribution Growth since IPO: 71% from the original minimum quarterly distribution of $0.275 per unit.

The current payout ratio sits at 135% of earnings, while the share price as of November 26, 2025, was $19.06/share. The institutional ownership base is significant, with 72 total institutional owners filing reports, holding 17,809,277 shares.

Downstream chemical manufacturers (indirectly, via WLK's derivatives)

While the primary customer is the parent, Westlake Chemical Partners LP's product-ethylene-is the fundamental building block for plastics and industrial chemicals, meaning downstream manufacturers are the ultimate end-users of the product stream flowing through Westlake Corporation. The financial results show that not all ethylene is captive; there are third-party sales. For instance, the Third Quarter 2025 net income was lower than Q3 2024 partially due to lower margins on sales of ethylene to third parties.

The overall scale of the business, which serves this broader market indirectly, is reflected in the revenue estimates:

• Full Year 2025 Revenue Estimate: $1.21 billion.
• Third Quarter 2025 Actual Revenue: $276.54 million.

The business model's fee-based structure is designed to insulate Westlake Chemical Partners LP from the commodity price volatility that directly impacts these downstream chemical manufacturers.

Westlake Chemical Partners LP (WLKP) - Canvas Business Model: Cost Structure

You're looking at the cost side of Westlake Chemical Partners LP's business, which is heavily influenced by its fee-based structure with the parent company, Westlake Corporation. The costs are primarily driven by the operations of the three ethylene production facilities that Westlake Chemical OpCo LP (OpCo) owns, which Westlake Chemical Partners LP holds a 22.8% interest in.

The structure of the ethylene sales agreement dictates that 95% of OpCo's production is sold to Westlake for a fixed cash margin, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures. This means that many of the direct costs of production are passed through or accounted for before the margin is realized by Westlake Chemical Partners LP.

Here are the latest reported figures for key cost components from the 2025 reporting periods.

Cost Component (For the Period)	Q2 2025 (Three Months Ended June 30, 2025)	Q3 2025 (Three Months Ended September 30, 2025)
Cost of Sales (Proxy for Operating Costs)	$182,936 thousand	$209,475 thousand
Selling, General and Administrative Expenses (G&A)	$6,300 thousand	$7,444 thousand
OpCo Capital Expenditures (Total)	$24 million	$30 million

Maintenance capital expenditures were definitely a cost factor impacting cash flow in the first half of 2025. The planned turnaround at the Petro 1 ethylene unit in Lake Charles, Louisiana, was the main driver for these higher maintenance CapEx figures.

• The decrease in MLP distributable cash flow for Q1 2025 compared to Q4 2024 was attributed to lower volume and higher maintenance capital expenditures due to the Petro 1 turnaround.
• Distributable cash flow for Q2 2025 compared to Q2 2024 also decreased primarily due to higher maintenance capital expenditures related to the Petro 1 turnaround.
• Similarly, the decrease in Q3 2025 distributable cash flow versus Q3 2024 was due to higher maintenance capital expenditures from timing changes in 2025 maintenance activities.

Regarding the debt structure, Westlake Chemical Partners LP maintained its long-term debt level at $400 million at the end of the third quarter of 2025. This debt is split, with $377 million at the Partnership level and $23 million at OpCo. Specific interest expense for Westlake Chemical Partners LP related to this $400 million debt for the 2025 periods isn't explicitly broken out in the provided data, but for context, Westlake Corporation expected its cash interest expense for the full year of 2025 to be approximately $160 million.

The general and administrative costs for the MLP structure, represented by Selling, General and Administrative Expenses, show a slight increase quarter-over-quarter for the periods reported:

• Q2 2025 SG&A was $6,300 thousand.
• Q3 2025 SG&A rose to $7,444 thousand.

To be fair, the Q3 2025 figure is higher than the Q2 figure, but both are below the full year 2024 SG&A of $28,495 thousand.

Westlake Chemical Partners LP (WLKP) - Canvas Business Model: Revenue Streams

The revenue streams for Westlake Chemical Partners LP are heavily anchored to its long-term contractual relationship with its parent, Westlake Corporation, providing a degree of revenue predictability.

The total revenue for the last twelve months ending Q3 2025 was reported at $1.13 billion.

The revenue generation for the third quarter of 2025 can be broken down by customer source, showing the reliance on the primary agreement:

Revenue Component	Q3 2025 Amount (in thousands of dollars)
Net sales Westlake Corporation	$276,539
Net co-products, ethylene & other third parties	$32.4 million
Total Net Sales (Q3 2025)	$308.9 million

A core element of the revenue stability comes from the Ethylene Sales Agreement (ESA) with Westlake Corporation, which was renewed through the end of 2027. This agreement dictates that 95% of OpCo's ethylene production is sold to Westlake for a specified $0.10/lb cash margin, net of operating costs, maintenance capital expenditures, and reserves for future turnaround expenditures.

Key financial performance and distribution metrics for the third quarter of 2025 include:

• Net income attributable to the Partnership of $14.7 million in Q3 2025.
• Quarterly distribution declared of $0.4714 per unit for Q3 2025.
• Distributable cash flow for the quarter was $15 million, or $0.42 per unit.
• The distribution marks the 45th consecutive quarterly payout to unitholders.