Westlake Chemical Partners LP (WLKP): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde complexe de Westlake Chemical Partners LP (WLKP), une puissance chimique dynamique transformant des paysages industriels à travers des partenariats stratégiques innovants et des capacités de fabrication de pointe. Cette toile complète du modèle commercial révèle comment WLKP navigue sur des marchés pétrochimiques complexes, offrant des solutions chimiques de haute performance qui conduisent la valeur à travers divers secteurs industriels, de l'automobile et de l'emballage à la construction et aux biens de consommation. Découvrez le plan stratégique qui propulse le succès remarquable et la croissance durable de cette entreprise dans l'industrie chimique en constante évolution.

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: partenariats clés

Partenariat stratégique avec Westlake Chemical Corporation

Westlake Chemical Partners LP maintient un Partenariat stratégique primaire avec Westlake Chemical Corporation, sa société mère. En 2023, Westlake Chemical Corporation détient 63,4% de participation limitée à WLKP.

Accords de coentreprise

Partenaire	Type de partenariat	Année établie
Westlake Chemical Corporation	Fabrication pétrochimique	2014
Axiall Corporation	Collaboration de produits chlor-vinyle	2015

Relations en aval

WLKP maintient des partenariats critiques en aval avec les fabricants industriels:

• Fabricants de composants automobiles
• Producteurs de matériaux de construction
• Fournisseurs de l'industrie des emballages

Partenariats de logistique et de transport

Les partenariats logistiques clés comprennent:

• Services de transport Chem Logix
• Enterprise Products Partners LP
• Magellan Midstream Partners

Collaboration technologique

Institution de recherche	Domaine de mise au point	Collaboration depuis
Université de riz	Innovation en polymère	2018
Université du Texas	Génie chimique	2019

Métriques de partenariat financier

Contribution des revenus de partenariat en 2023: 2,4 milliards de dollars

Investissement en R&D grâce à des partenariats: 87 millions de dollars

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: Activités clés

Production et traitement de l'éthylène et des polymères

Capacité annuelle de production d'éthylène: 2,45 milliards de livres. Volume de production de polymères en 2022: 1,8 milliard de livres. Installations de production situées à Lake Charles, en Louisiane et à Longview, Texas.

Facilité	Capacité d'éthylène	Sortie en polymère
Lac Charles	1,2 milliard de livres	850 millions de livres
Longview	1,25 milliard de livres	950 millions de livres

Fabrication de chlor-alcali et de vinyles

Capacité de production annuelle du chlore: 1,5 million de tonnes. Production de monomère de chlorure de vinyle: 1,2 milliard de livres par an.

• Installations de production de chlore au Texas et en Louisiane
• Processus de fabrication intégrés
• Production annuelle de soda caustique: 1,3 million de tonnes

Développement et innovation de produits pétrochimiques

Investissement en R&D en 2022: 45 millions de dollars. Les nouveaux domaines d'intervention en matière de développement de produits comprennent des polymères avancés et des solutions chimiques durables.

Catégorie d'innovation	Investissement	De nouveaux produits développés
Polymères avancés	22 millions de dollars	3 nouvelles notes polymères
Solutions durables	23 millions de dollars	2 processus chimiques respectueux de l'environnement

Gestion de la chaîne d'approvisionnement chimique

Budget total de gestion de la chaîne d'approvisionnement: 75 millions de dollars en 2022. Réseau logistique couvrant 12 États avec 250 partenaires de transport.

• Réseau logistique intégré
• Plusieurs modes de transport: camion, rail, pipeline
• Amélioration annuelle de l'efficacité logistique: 7,2%

Fabrication durable et conformité environnementale

Dépenses de conformité environnementale: 38 millions de dollars en 2022. Objectif de réduction des émissions de gaz à effet de serre: 15% d'ici 2025.

Métrique de la durabilité	Performance actuelle	Cible
Réduction des émissions de GES	Réduction de 8%	15% d'ici 2025
Efficacité d'utilisation de l'eau	Amélioration de 12%	20% d'ici 2026

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: Ressources clés

Installations de production chimique avancée

Westlake Chemical Partners LP exploite plusieurs installations de production avec les spécifications suivantes:

Emplacement	Type d'installation	Capacité de production
Lac Charles, Louisiane	Plante de polyéthylène	1,1 milliard de livres par an
Calvert City, Kentucky	Installation de monomère de chlorure de vinyle	2,3 milliards de livres par an

Expertise technique et capital intellectuel

Technologies de production chimique propriétaire:

• Processus de polymérisation avancés
• Technologies de conversion chimique à haute efficacité
• Développement de catalyseurs spécialisés

Investissement en capital dans les infrastructures de fabrication

Investissement total en capital en 2023 Information financière:

• Infrastructure de fabrication: 1,2 milliard de dollars
• Dépenses en capital récentes: 157 millions de dollars
• Capital de maintenance annuel: 45 à 50 millions de dollars

Capacités de main-d'œuvre

Catégorie des employés	Nombre d'employés	Compétences spécialisées
Ingénieurs chimiques	312	Ingénierie avancée en polymère
Spécialistes techniques	214	Optimisation du processus

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: propositions de valeur

Produits pétrochimiques et polymères de haute qualité

En 2024, Westlake Chemical Partners LP produit:

Catégorie de produits	Volume de production annuel	Part de marché
Polyéthylène	3,1 millions de tonnes métriques	7.2%
Polymères spécialisés	825 000 tonnes métriques	5.8%
Produits chimiques de marchandises	2,4 millions de tonnes métriques	6.5%

Chaîne d'approvisionnement chimique cohérente et fiable

Mesures de la chaîne d'approvisionnement en 2024:

• Taux de livraison à temps: 98,7%
• Temps de réalisation de la commande moyenne: 3,2 jours
• Réseau de distribution mondial: 17 pays
• Coût logistique en pourcentage de revenus: 4,6%

Processus de fabrication rentables

Indicateurs d'efficacité de fabrication:

Métrique	Valeur
Coût de production par tonne	$672
Ratio d'efficacité énergétique	0.87
Dépenses opérationnelles	1,2 milliard de dollars

Solutions chimiques personnalisées

Segments de demande industriels servis:

• Automobile: 22% du portefeuille de produits
• Construction: 18% du portefeuille de produits
• Emballage: 35% du portefeuille de produits
• Goods de consommation: 15% du portefeuille de produits

Engagement à la durabilité

Métriques de performance environnementale:

Indicateur de durabilité	Valeur 2024
Réduction des émissions de carbone	24.3%
Consommation d'énergie renouvelable	16.5%
Taux de recyclage des déchets	87.2%

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: Relations clients

Accords contractuels à long terme avec des clients industriels

En 2024, Westlake Chemical Partners LP maintient des contrats d'approvisionnement stratégiques à long terme avec des clients industriels clés. La durée moyenne du contrat est d'environ 3 à 5 ans, couvrant les segments de produits chimiques en polyéthylène et spécialisés.

Segment de clientèle	Durée du contrat	Valeur du contrat annuel
Fabricants d'emballages	4-5 ans	85 à 120 millions de dollars
Composants automobiles	3-4 ans	65 à 95 millions de dollars
Matériaux de construction	3-5 ans	50-75 millions de dollars

Support technique et collaboration de développement de produits

Westlake Chemical Partners alloue environ 12,5 millions de dollars par an pour les initiatives de développement de produits collaboratifs avec des clients clés.

• Équipe de support technique: 42 professionnels dévoués
• Temps de collaboration moyen de R&D par projet: 6-8 mois
• Modifications du produit spécifiques au client: 18-22 par an

Équipes de gestion des comptes dédiés

La société emploie 35 gestionnaires de comptes spécialisés dans différents secteurs industriels, avec une valeur de portefeuille de clientèle moyenne de 45 à 60 millions de dollars par gestionnaire.

Infrastructure de service client réactif

Métriques du service client pour 2024:

• Temps de réponse moyen: 2,3 heures
• Évaluation de satisfaction du client: 92,5%
• Disponibilité du support technique: 24/7
• Taux de résolution des services: 97,8%

Plateformes numériques pour la gestion des commandes et les informations techniques

Statistiques d'engagement de la plate-forme numérique:

Fonctionnalité de plate-forme	Taux d'adoption des utilisateurs	Transactions annuelles
Gestion des commandes en ligne	78%	26 500 transactions
Accès à la documentation technique	85%	42 000 téléchargements de documents
Suivi des stocks en temps réel	72%	18 750 séances actives

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: canaux

Force de vente directe ciblant les clients industriels

Westlake Chemical Partners LP maintient une équipe de vente industrielle dédiée axée sur la distribution des produits chimiques en polyéthylène et spécialisés. En 2023, l'équipe commerciale a couvert environ 87 comptes clients industriels actifs à travers l'Amérique du Nord.

Métrique du canal de vente	2023 données
Total des clients industriels	87 comptes actifs
Valeur du contrat client moyen	3,2 millions de dollars par an
Taille de l'équipe de vente	24 représentants des ventes directes

Plateformes d'approvisionnement et de commande en ligne

L'entreprise utilise un système d'approvisionnement numérique propriétaire avec les spécifications suivantes:

• Taux de traitement des commandes de 98,6%
• Capacités de suivi des stocks en temps réel
• Portail client intégré avec téléchargements techniques

Salons et conférences commerciales de l'industrie chimique

Westlake Chemical Partners LP participe à 7 à 9 conférences industrielles majeures par an, avec un investissement marketing total de 425 000 $ en 2023.

Type de conférence	Participation annuelle	Investissement en marketing
Conférences chimiques nationales	4-5 événements	$275,000
Expositions de l'industrie régionale	3-4 événements	$150,000

Marketing stratégique à travers des publications de l'industrie

La stratégie marketing comprend la publicité ciblée et le placement technique de contenu dans des publications spécialisées de l'industrie chimique.

• 6 Partenariats de publication industrielle majeure
• Dépenses marketing annuelles: 187 000 $
• Reach: environ 42 000 professionnels de l'industrie

Communication numérique et documentation technique

L'infrastructure de communication numérique comprend des plateformes de documentation technique complètes avec les mesures suivantes:

Métrique de communication numérique	2023 données
Téléchargements de documents techniques	14 237 téléchargements annuels
Pages de ressources techniques sur le site Web	92 pages de spécifications techniques actives
Time de disponibilité de la plate-forme de communication numérique	99.7%

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: segments de clientèle

Fabricants de plastiques et d'emballages

Westlake Chemical Partners LP dessert les fabricants de plastiques et d'emballages avec des mesures de segment de clientèle spécifiques:

Segment de marché	Volume annuel	Contribution des revenus
Clients en polyéthylène	1,3 million de tonnes métriques	412 millions de dollars
Producteurs de films d'emballage	850 000 tonnes métriques	276 millions de dollars

Fournisseurs de l'industrie automobile

Détails du segment des clients automobiles clés:

• Clients totaux des composants automobiles: 187
• Alimentation annuelle des polymères automobiles: 425 000 tonnes métriques
• Revenu du segment automobile: 203 millions de dollars

Producteurs de matériaux de construction

Réflexion du segment des clients des matériaux de construction:

Catégorie de produits	Approvisionnement annuel	Part de marché
Résine en PVC	672 000 tonnes métriques	14.5%
Tuyaux et matériaux d'ajustement	248 000 tonnes métriques	9.2%

Fabricants de biens de consommation

Séprédaires du segment des clients des biens de consommation:

• Clients totaux de biens de consommation: 214
• Alimentation annuelle en polymère: 328 000 tonnes métriques
• Revenu du segment des biens de consommation: 167 millions de dollars

Utilisateurs chimiques agricoles et industriels

Données de segment de clientèle chimique agricole et industrielle:

Type de client	Volume chimique annuel	Revenu
Produits chimiques agricoles	276 000 tonnes métriques	89 millions de dollars
Utilisateurs chimiques industriels	412 000 tonnes métriques	136 millions de dollars

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: Structure des coûts

Frais d'approvisionnement en matières premières

En 2023, les dépenses d'approvisionnement en matières premières de Westlake Chemical Partners LP pour la production d'éthylène et de polyéthylène étaient d'environ 1,2 milliard de dollars par an.

Matière première	Coût d'achat annuel	Volume acheté
Éthylène	752 millions de dollars	1,3 million de tonnes métriques
Propylène	398 millions de dollars	750 000 tonnes métriques

Coûts de fabrication et de production

Les coûts totaux de fabrication et de production de Westlake Chemical Partners LP en 2023 étaient de 845 millions de dollars.

• Installation de production Frais de fonctionnement: 412 millions de dollars
• Entretien de l'équipement: 127 millions de dollars
• Coûts de consommation d'énergie: 186 millions de dollars
• Frais de main-d'œuvre et de main-d'œuvre: 120 millions de dollars

Investissements de recherche et développement

Westlake Chemical Partners LP alloué 45,2 millions de dollars aux initiatives de recherche et développement en 2023.

Zone de focus R&D	Montant d'investissement
Technologie de polymère	22,5 millions de dollars
Innovations sur le développement durable	15,3 millions de dollars
Optimisation du processus	7,4 millions de dollars

Initiatives de conformité environnementale et de durabilité

Les coûts de conformité environnementale et de durabilité pour Westlake Chemical Partners LP ont totalisé 63,7 millions de dollars en 2023.

• Technologie de réduction des émissions: 24,5 millions de dollars
• Programmes de gestion des déchets: 18,2 millions de dollars
• Conformité réglementaire environnementale: 21 millions de dollars

Infrastructure logistique et transport

Frais de logistique et de transport pour Westlake Chemical Partners LP 187,3 millions de dollars en 2023.

Mode de transport	Coût annuel	Pourcentage de la logistique totale
Transport de camions	98,6 millions de dollars	52.6%
Transport ferroviaire	62,4 millions de dollars	33.3%
Expédition maritime	26,3 millions de dollars	14.1%

Westlake Chemical Partners LP (WLKP) - Modèle d'entreprise: Strots de revenus

Ventes de produits en polymère et en produits chimiques

En 2023, Westlake Chemical Partners LP a déclaré des revenus totaux de 1 077 millions de dollars. Le portefeuille de produits de l'entreprise comprend:

• Produits en polyéthylène
• Produits chimiques spécialisés
• Vinyles et dérivés chimiques connexes

Catégorie de produits	Revenus annuels (millions de dollars)	Pourcentage du total des revenus
Polyéthylène	612	56.8%
Produits chimiques spécialisés	285	26.5%
Vinyles	180	16.7%

Contrats d'approvisionnement à long terme

Westlake Chemical Partners LP a obtenu des accords d'approvisionnement à long terme avec une durée de contrat moyenne de 7 à 10 ans. La valeur totale de ces contrats est d'environ 2,4 milliards de dollars.

Modèles de tarification basés sur les performances

Les stratégies de prix clés comprennent:

• Remises de prix basées sur le volume
• Mécanismes de tarification indexés sur le marché
• Niveaux de prix basés sur la qualité

Modèle de tarification	Ajustement des prix moyens	Couverture contractuelle
Remises de volume	3-5%	65% des contrats
Prix ​​indexés sur le marché	+/- 2% trimestriel	35% des contrats

Offres de produits chimiques à valeur ajoutée

Westlake Chemical Partners LP génère des revenus supplémentaires grâce à un développement de produits spécialisés, avec des produits à valeur ajoutée contribuant 215 millions de dollars en 2023.

Diversification du marché géographique

Distribution des revenus sur les marchés géographiques:

Région	Revenus (millions de dollars)	Pourcentage
Amérique du Nord	742	68.9%
Europe	180	16.7%
Asie-Pacifique	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.