Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36567 | ||
Entity Registrant Name | Westlake Chemical Partners LP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 32-0436529 | ||
Entity Address, Address Line One | 2801 Post Oak Boulevard | ||
Entity Address, Address Line Two | Suite 600 | ||
Entity Address, City or Town | Houston | ||
Entity Address, Postal Zip Code | 77056 | ||
Entity Address, State or Province | TX | ||
City Area Code | 713 | ||
Local Phone Number | 585-2900 | ||
Title of 12(b) Security | Common units representing limited partner interests | ||
Trading Symbol | WLKP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 521.4 | ||
Entity Central Index Key | 0001604665 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 35,214,416 | ||
Subordinated units | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Houston, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 17,057 | $ 17,154 |
Receivable under the Investment Management Agreement—Westlake Chemical Corporation ("Westlake") | 106,243 | 123,228 |
Accounts receivable, net—Westlake | 142,791 | 108,028 |
Accounts receivable, net—third parties | 5,825 | 11,029 |
Inventories | 8,898 | 3,474 |
Prepaid expenses and other current assets | 396 | 392 |
Total current assets | 281,210 | 263,305 |
Property, plant and equipment, net | 1,043,539 | 1,050,677 |
Goodwill | 5,814 | 5,814 |
Deferred charges and other assets, net | 150,135 | 36,692 |
Total assets | 1,480,698 | 1,356,488 |
Current liabilities | ||
Accounts payable—Westlake | 10,796 | 7,855 |
Accounts payable—third parties | 35,105 | 13,131 |
Accrued and other liabilities | 60,895 | 18,768 |
Total current liabilities | 106,796 | 39,754 |
Long-term debt payable to Westlake | 399,674 | 399,674 |
Deferred Income Tax Liabilities, Net | 1,530 | 1,542 |
Other liabilities | 0 | 381 |
Total liabilities | 508,000 | 441,351 |
Commitments and contingencies (Note 16) | ||
EQUITY | ||
Total Westlake Chemical Partners LP partners' capital | 293,978 | 277,399 |
Noncontrolling interest in Westlake Chemical OpCo LP ("OpCo") | 678,720 | 637,738 |
Total equity | 972,698 | 915,137 |
Total liabilities and equity | $ 1,480,698 | $ 1,356,488 |
Common units | Publicly and Privately Held | ||
EQUITY | ||
Units issued | 21,092,186 | 21,076,673 |
Common units | Westlake | ||
EQUITY | ||
Units issued | 14,122,230 | 14,122,230 |
Limited Partner | Common units | Publicly and Privately Held | ||
EQUITY | ||
Limited partners' capital | $ 481,796 | $ 471,701 |
Total equity | 481,796 | 471,701 |
Limited Partner | Common units | Westlake | ||
EQUITY | ||
Limited partners' capital | 54,754 | 48,270 |
Total equity | 54,754 | 48,270 |
General Partner [Member] | Westlake | ||
EQUITY | ||
General partner—Westlake | (242,572) | (242,572) |
Total equity | $ (242,572) | $ (242,572) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - Common units - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Westlake | ||
Units outstanding | 14,122,230 | 14,122,230 |
Units issued | 14,122,230 | 14,122,230 |
Publicly and Privately Held | ||
Units outstanding | 21,092,186 | 21,076,673 |
Units issued | 21,092,186 | 21,076,673 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net sales - Westlake | $ 1,026,586 | $ 888,245 | $ 937,625 |
Revenue from Contract with Customer, Excluding Assessed Tax | 188,272 | 78,425 | 154,246 |
Total net sales | 1,214,858 | 966,670 | 1,091,871 |
Cost of sales | 773,152 | 587,787 | 712,443 |
Gross profit | 441,706 | 378,883 | 379,428 |
Selling, general and administrative expenses | 31,018 | 25,895 | 29,278 |
Income from operations | 410,688 | 352,988 | 350,150 |
Other income (expense) | |||
Interest expense—Westlake | (8,816) | (12,038) | (19,623) |
Other income, net | 62 | 733 | 3,096 |
Income before income taxes | 401,934 | 341,683 | 333,623 |
Provision for income taxes | 549 | 564 | 728 |
Net income | 401,385 | 341,119 | 332,895 |
Less: Net income attributable to noncontrolling interest in OpCo | 318,838 | 274,952 | 271,914 |
Net income attributable to Westlake Chemical Partners LP and limited partners' interest in net income | $ 82,547 | $ 66,167 | $ 60,981 |
Weighted average limited partner units outstanding (basic and diluted) | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 35,206,333 | 35,195,271 | 34,488,058 |
Common units | |||
Other income (expense) | |||
Net income attributable to Westlake Chemical Partners LP and limited partners' interest in net income | $ 82,547 | $ 66,167 | $ 60,981 |
Net Income (Loss), Per Outstanding Limited Partnership Unit, Basic, Net of Tax | $ 2.34 | $ 1.88 | $ 1.77 |
Weighted average limited partner units outstanding (basic and diluted) | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 35,206,333 | 35,195,271 | 34,488,058 |
Publicly and Privately Held | Common units | |||
Weighted average limited partner units outstanding (basic and diluted) | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 21,084,103 | 21,073,041 | 20,365,828 |
Westlake | Common units | |||
Weighted average limited partner units outstanding (basic and diluted) | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 14,122,230 | 14,122,230 | 14,122,230 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Noncontrolling Interest in OpCo [Member] | WestlakeGeneral Partner [Member] | Common unitsPublicly and Privately HeldLimited Partner | Common unitsWestlakeLimited Partner |
Equity, beginning balance at Dec. 31, 2018 | $ 934,081 | $ 718,271 | $ (242,572) | $ 409,608 | $ 48,774 |
Stockholders' Equity [Roll Forward] | |||||
Net income | 332,895 | 271,914 | 0 | 35,978 | 25,003 |
Net effect of cash flow hedge | 146 | ||||
Units issued for vested phantom units | 146 | ||||
Net proceeds from private placement of common units | 62,661 | 62,661 | |||
Quarterly distribution to unitholders | (62,084) | 0 | 0 | (36,657) | (25,427) |
Quarterly distribution to noncontrolling interest retained in OpCo by Westlake | (315,564) | (315,564) | 0 | 0 | 0 |
Equity, ending balance at Dec. 31, 2019 | 952,135 | 674,621 | (242,572) | 471,736 | 48,350 |
Stockholders' Equity [Roll Forward] | |||||
Net income | 341,119 | 274,952 | 0 | 39,618 | 26,549 |
Units issued for vested phantom units | 81 | 81 | |||
Net proceeds from private placement of common units | 0 | ||||
Quarterly distribution to unitholders | (66,363) | 0 | 0 | (39,734) | (26,629) |
Quarterly distribution to noncontrolling interest retained in OpCo by Westlake | (311,835) | (311,835) | 0 | 0 | 0 |
Equity, ending balance at Dec. 31, 2020 | 915,137 | 637,738 | (242,572) | 471,701 | 48,270 |
Stockholders' Equity [Roll Forward] | |||||
Net income | 401,385 | 318,838 | 0 | 49,435 | 33,112 |
Units issued for vested phantom units | 411 | 411 | |||
Net proceeds from private placement of common units | 0 | ||||
Quarterly distribution to unitholders | (66,379) | 0 | 0 | (39,751) | (26,628) |
Quarterly distribution to noncontrolling interest retained in OpCo by Westlake | (277,856) | (277,856) | 0 | 0 | 0 |
Equity, ending balance at Dec. 31, 2021 | $ 972,698 | $ 678,720 | $ (242,572) | $ 481,796 | $ 54,754 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 401,385 | $ 341,119 | $ 332,895 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 108,814 | 103,154 | 107,320 |
Loss from disposition of property, plant and equipment | 4,198 | 1,000 | 515 |
Other gains, net | (276) | (269) | (459) |
Changes in operating assets and liabilities | |||
Accounts receivable - third parties | 5,468 | (953) | 6,934 |
Net accounts receivable - Westlake | (31,756) | (71,975) | 2,358 |
Inventories | (5,424) | (990) | 1,126 |
Prepaid expenses and other current assets | (4) | 78 | (100) |
Accounts payable | 19,782 | 4,247 | 421 |
Accrued and other liabilities | 37,574 | 1,672 | 985 |
Other, net | (131,322) | (3,686) | (1,188) |
Net cash provided by operating activities | 408,439 | 373,397 | 450,807 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (81,171) | (36,968) | (43,707) |
Investments with Westlake under the Investment Management Agreement | (276,000) | (349,000) | (529,445) |
Maturities of investments with Westlake under the Investment Management Agreement | 293,000 | 388,000 | 515,445 |
Other | (130) | 0 | 0 |
Net cash used for investing activities | (64,301) | 2,032 | (57,707) |
Cash flows from financing activities | |||
Net proceeds from private placement of common units | 0 | 0 | 62,661 |
Proceeds from debt payable to Westlake | 0 | 0 | 123,511 |
Repayment of debt payable to Westlake | 0 | 0 | (201,445) |
Quarterly distributions to noncontrolling interest retained in OpCo by Westlake | (277,856) | (311,835) | (315,564) |
Quarterly distributions to unitholders | (66,379) | (66,363) | (62,084) |
Net cash used for financing activities | (344,235) | (378,198) | (392,921) |
Net increase (decrease) in cash and cash equivalents | (97) | (2,769) | 179 |
Cash and cash equivalents at beginning of the year | 17,154 | 19,923 | 19,744 |
Cash and cash equivalents at end of the year | $ 17,057 | $ 17,154 | $ 19,923 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Goodwill | Goodwill The Partnership's goodwill balance was $5,814 at December 31, 2021 and 2020. The impairment assessment for the recorded goodwill was performed in October 2021 and did not indicate impairment of the goodwill. The fair value of the goodwill was calculated using both a discounted cash flow methodology and a market value methodology. The discounted cash flow projections were based on a long-term forecast to reflect the cyclicality of the Partnership's business. The forecast was based on prices and spreads projected by IHS Markit, a chemical industry organization offering market and business advisory services for the chemical market, for the same period, and estimates by management, including their strategic and operational plans. Other significant assumptions used in the discounted cash flow projection included sales volumes based on production capacities. The future cash flows were discounted to present value using a discount rate of 8.8%. 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. |
Unit-based Compensation
Unit-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Unit-Based Compensation | Unit-based Compensation The Westlake Chemical Partners LP Long-Term Incentive Plan (the "Plan") was adopted on July 15, 2014 and provides for grants of unit options, restricted units, phantom units, unit awards, distribution equivalent rights ("DERs") and other unit-based awards. The purpose of the Plan is to attract and retain the services of individuals who are essential for the growth and profitability of the Partnership and to encourage such individuals to devote their best efforts to advancing the business of the Partnership and its affiliates. Awards under the Plan are determined by the board of directors of the Partnership's general partner or a committee thereof (the "Committee"). Under the Plan, DERs may be granted, which represent a contingent right to receive an amount in cash, units, restricted units and/or phantom units, as determined by the Committee at its sole discretion, equal in value to the cash distributions made by the Partnership with respect to a common unit during the period such award is outstanding. The terms and conditions of each award are determined by the Committee. The maximum number of common units of the Partnership that may be delivered with respect to awards under the Plan is 1,270,000. The phantom units along with a corresponding number of DERs were granted to certain non-employee directors of the general partner of the Partnership during the years ended December 31, 2021, 2020 and 2019. These phantom units vest on the first anniversary of the grant date. There were no forfeitures under the Plan during 2021, 2020 and 2019. During each of the years 2020 and 2019, the vesting of 4,638 phantom units were accelerated in connection with the retirement of one of the Partnership's non-employee directors. The total fair value of phantom units that vested during the year ended December 31, 2021 was $542. Non-vested phantom unit awards as of December 31, 2021 and 2020 and awards granted during the respective periods were as follows: Number of Weighted Non-vested balance at December 31, 2019 13,634 $ 23.24 Granted 20,439 20.17 Vested (13,634) 19.08 Non-vested balance at December 31, 2020 20,439 22.33 Granted 11,178 26.97 Vested (20,439) 26.54 Non-vested balance at December 31, 2021 11,178 22.90 Each phantom unit represents the right to receive, upon vesting, either a cash payment equal to the fair market value of one Partnership common unit or a Partnership common unit. Each DER has distribution rights only so long as the phantom units to which it relates to has not vested or been settled. The awards, which are classified as liability awards for financial accounting purposes, are re-measured at each reporting date until they vest. The total units available for grant at December 31, 2021 were 1,219,956. The total compensation cost recognized during the years ended December 31, 2021, 2020 and 2019 was $436, $375 and $387, respectively, and is included in selling, general and administrative expenses and the related liability is classified as accrued and other liability in the consolidated financial statements of the Partnership. The unrecognized compensation cost associated with all grants under the Plan at December 31, 2021 was $182 and the weighted average remaining term of the units at December 31, 2021 was 0.62 years. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Accounting Policies | Description of Business and Significant Accounting Policies Description of Business Westlake Chemical Partners LP ("Westlake Chemical Partners LP" or the "Partnership") is a Delaware limited partnership formed in March 2014 to operate, acquire and develop ethylene production facilities and related assets. On August 4, 2014, the Partnership completed its initial public offering (the "IPO") of 12,937,500 common units representing limited partner interests. In connection with the IPO, the Partnership acquired a 10.6% limited partner interest in Westlake Chemical OpCo LP ("OpCo") and a 100% interest in Westlake Chemical OpCo GP LLC ("OpCo GP"), which is the general partner of OpCo. OpCo owns three ethylene production facilities and one common carrier ethylene pipeline (collectively, the "Contributed Assets"). Since the IPO, the Partnership has periodically purchased additional limited partner interest in OpCo. Most recently, on March 29, 2019, the Partnership purchased an additional 4.5% newly-issued limited partner interest in OpCo for approximately $201,445, resulting in an aggregate 22.8% limited partner interest in OpCo, effective January 1, 2019. The remaining 77.2% limited partner interest in OpCo is owned by Westlake Corporation. References to "Westlake" refer collectively to Westlake Corporation (formerly known as Westlake Corporation) and its subsidiaries, other than the Partnership, OpCo and OpCo GP. OpCo and Westlake entered into an ethylene sales agreement (the "Ethylene Sales Agreement") pursuant to which the Partnership generates a substantial majority of its revenue. For more information, see Note 2. The Partnership sells ethylene production in excess of volumes sold to Westlake, as well as all of the co-products resulting from the ethylene production, including propylene, crude butadiene, pyrolysis gasoline and hydrogen, directly to third parties on either a spot or contract basis. Co-products sold to third parties are transported by rail or truck. Net proceeds (after transportation and other costs) from the sales of ethylene co-products that result from the production of ethylene purchased by Westlake are netted against the ethylene price charged to Westlake under the Ethylene Sales Agreement, thereby reducing the Partnership's exposure to fluctuations in the market prices of these co-products. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States. The Partnership holds a 22.8% limited partner interest and the entire non-economic general partner interest in OpCo. The remaining 77.2% limited partner interest in OpCo is owned directly by Westlake, which has no rights to direct the activities that most significantly impact the economic performance of OpCo. As a result of the fact that substantially all of OpCo's activities are conducted on behalf of Westlake, and the fact that OpCo exhibits disproportionality of voting rights to economic interest, OpCo was deemed to be a variable interest entity. The Partnership, through its ownership of OpCo's general partner, has the power to direct the activities that most significantly impact the economic performance of OpCo, and it also has the obligation or right to absorb losses or receive benefits from OpCo that could potentially be significant to OpCo. As such, the Partnership was determined to be OpCo's primary beneficiary and therefore consolidates OpCo's results of operations and financial position. Westlake's retained interest of 77.2% is recorded as noncontrolling interest in the Partnership's consolidated financial statements. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments that are readily convertible into cash and have a maturity of three months or less at the date of acquisition. Allowance for Credit Losses The determination of the allowance for credit losses is based on estimation of the amount of accounts receivable that the Partnership believes are unlikely to be collected. Estimating this amount requires analysis of the financial strength of the Partnership's customers, the use of historical experience, the Partnership's accounts receivable aged trial balance, customer specific collectability analysis and an evaluation of economic conditions. The allowance for credit losses is reviewed quarterly. Past due balances over 90 days and high risk accounts, as determined by the analysis of financial strength of customers, are reviewed individually for collectability. Inventories Inventories primarily include product, material and supplies. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out ("FIFO") or average method. Property, Plant and Equipment Property, plant and equipment are carried at cost, net of accumulated depreciation. Cost includes expenditures for improvements and betterments that extend the useful lives of the assets and interest capitalized on significant capital projects. Interest expense is capitalized for qualifying assets under construction. Capitalized interest costs are included in property, plant and equipment and are depreciated over the useful life of the related asset. Capitalized interest was zero for the years ended December 31, 2021 and 2020 and $175 for the year ended December 31, 2019. Repair and maintenance costs are charged to operations as incurred. Gains and losses on the disposal or retirement of property, plant and equipment are reflected in the statement of operations when the assets are sold or retired. The accounting guidance for asset retirement obligations requires the recording of liabilities equal to the fair value of asset retirement obligations and corresponding additional asset costs, when there is a legal asset retirement obligation as a result of existing or enacted law, statute or contract. The Partnership has conditional asset retirement obligations for the removal and disposal of hazardous materials from certain of the Partnership's manufacturing facilities. However, no asset retirement obligations have been recognized because the fair value of the conditional legal obligation cannot be measured due to the indeterminate settlement date of the obligation. Settlement of these conditional asset retirement obligations is not expected to have a material adverse effect on the Partnership's financial condition, results of operations or cash flows in any individual reporting period. Depreciation is provided by utilizing the straight-line method over the estimated useful lives of the assets as follows: Classification Years Buildings and improvements 40 Plant and equipment 25 Ethylene pipeline 35 Other 3-15 Impairment of Long-Lived Assets The accounting guidance for the impairment or disposal of long-lived assets requires that the Partnership assess long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, including when negative conditions such as significant current or projected operating losses exist. Other factors considered by the Partnership when determining if an impairment assessment is necessary include, but are not limited to, significant changes or projected changes in supply and demand fundamentals (which would have a negative impact on operating rates or margins), new technological developments, new competitors with significant raw material or other cost advantages, adverse changes associated with the United States and world economies and uncertainties associated with governmental actions. Long-lived assets assessed for impairment are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. Assets are considered to be impaired if the carrying amount of an asset exceeds the future undiscounted cash flows. The impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell. Impairment of Goodwill The accounting guidance requires that goodwill be tested for impairment at least annually, or when events or changes in circumstances indicate the fair value of a reporting unit with goodwill has been reduced below its carrying value. The impairment test for the recorded goodwill was performed in October 2021 and did not indicate impairment of the goodwill. As of December 31, 2021, the Partnership's recorded goodwill was $5,814. See Note 6 for more information on the Partnership's annual goodwill impairment test. Turnaround Costs The Partnership accounts for turnaround costs under the deferral method. Turnarounds are the scheduled and required shutdowns of specific operating units in order to perform planned major maintenance activities. The costs related to the significant overhaul and refurbishment activities include maintenance materials, parts and direct labor costs. The costs of the turnaround are deferred when incurred at the time of the turnaround and amortized (within depreciation and amortization) on a straight-line basis until the next planned turnaround, which ranges from five Concentration of Credit Risk Financial instruments which potentially subject the Partnership to concentration of risk consist principally of trade receivables from third-party customers who purchase ethylene and ethylene co-products. The Partnership performs periodic credit evaluations, as applicable, of the customers' financial condition and generally does not require collateral. The Partnership maintains allowances for potential losses, as applicable. Revenue Recognition Revenue is recognized when OpCo transfers control of inventories to customers. Amounts recognized as revenues reflect the consideration to which OpCo expects to be entitled in exchange for those inventories. The Partnership and OpCo incorporate production volume and production cost forecasts in the estimated transaction prices from sales to Westlake under the Ethylene Sales Agreement. The Partnership recognizes revenue and accounts receivable upon transferring control of inventories to its customers. Ethylene sold to Westlake under the Ethylene Sales Agreement is transferred to Westlake immediately after production and recognized in sales. Control of inventories sold to third parties generally transfers upon shipment to the customer. The Partnership excludes taxes collected on behalf of customers from the estimated contract price. Provisions for discounts, rebates and returns are incorporated in the estimate of variable consideration and reflected as reduction to revenue in the same period as the related sales. The Partnership does not disclose the value of unsatisfied performance obligations because its contracts with customers (1) have an original expected duration of one year or less or (2) have only variable consideration which is allocated to wholly unsatisfied performance obligations that is calculated based on market prices at a specified date and is allocated to wholly unsatisfied performance obligations. The Partnership generates a substantial majority of its revenue from sales to Westlake under the Ethylene Sales Agreement. The Ethylene Sales Agreement is intended to generate a long-term, fixed cash margin per pound. See Note 2 for a description of the terms of the Ethylene Sales Agreement. Partnership's direct commodity price risk is limited to the sales to third parties. See the Partnership's consolidated statement of operations for the disaggregation of net sales to Westlake and net sales to third parties. Transportation and Freight Amounts billed to customers for freight and handling costs on outbound shipments are included in net sales in the consolidated statements of operations. Transportation and freight costs incurred by the Partnership on outbound shipments are included in cost of sales in the consolidated statements of operations. Derivative Instruments The accounting guidance for derivative instruments and hedging activities requires that the Partnership recognize all derivative instruments on the balance sheet at fair value, and changes in the derivative's fair value must be currently recognized in earnings or comprehensive income, depending on the designation of the derivative. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded in comprehensive income and is recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings currently. Environmental Costs Environmental costs relating to current operations are expensed or capitalized, as appropriate, depending on whether such costs provide future economic benefits. Remediation liabilities are recognized when the costs are considered probable and can be reasonably estimated. Measurement of liabilities is based on currently enacted laws and regulations, existing technology and undiscounted site-specific costs. Environmental liabilities in connection with properties that are sold or closed are realized upon such sale or closure, to the extent they are probable and estimable and not previously reserved. Recognition of any joint and several liabilities is based upon the Partnership's best estimate of its final pro rata share of the liability. Income Taxes The Partnership is a limited partnership and is treated as a partnership for U.S. federal income tax purposes and, therefore, is not liable for entity-level federal income taxes. The Partnership is, however, subject to state and local income taxes. Deferred tax expense or benefit is the result of changes in the deferred tax assets and liabilities during the period. Valuation allowances are recorded against deferred tax assets when it is considered more likely than not that the deferred tax assets will not be realized on a separate tax return basis. Segment Reporting The Partnership only operates one segment (ethylene production) and all of its operations are located in the United States. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The COVID pandemic resulted in widespread adverse impacts on the global economy in 2020. The Partnership has not experienced significant disruptions to its business operations for the fiscal years ended December 31, 2020 and 2021 and does not expect significant disruptions to its business operations resulting from COVID-19. However, the impact that COVID-19 will have on the Partnership's financial condition, results of operations and cash flows cannot be estimated with certainty at this time as it will depend on future developments, including, among others, the timing and logistics with respect to the distribution of vaccines (including with respect to the more recent variants of COVID-19) and other treatments, the ultimate duration of the pandemic, geographic spread and severity of the virus, the consequences of governmental and other measures designed to prevent the spread of the virus, the impact on the operation of OpCo's facilities, Westlake, customers, suppliers and other third parties and the timing and extent to which normal economic and operating conditions resume. Other Comprehensive Income The Partnership has not reported consolidated statements of comprehensive income for the years ended December 31, 2021, 2020 and 2019 due to immateriality of the components of other comprehensive income. Recently Adopted Accounting Standards Reference Rate Reform (ASU No. 2020-04) In March 2020, the FASB issued an accounting standards update to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform, if certain criteria are met. The amendments in this update are effective for all entities from March 12, 2020 through December 31, 2022. The Partnership adopted this accounting standard effective October 1, 2021, and the adoption did not have a material impact on the Partnership's consolidated financial position, results of operations and cash flows. |
Agreements with Westlake and Re
Agreements with Westlake and Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Agreements with Westlake and Related Parties | Agreements with Westlake and Related Parties Ethylene Sales Agreement OpCo has entered into a 12-year ethylene sales agreement with Westlake (the "Ethylene Sales Agreement"). The Ethylene Sales Agreement requires Westlake to purchase a minimum volume of ethylene each year equal to 95% of OpCo's planned ethylene production per year (the "Minimum Commitment"), subject to certain exceptions and a maximum commitment of 3.8 billion pounds per year. So long as Westlake is not in default under the Ethylene Sales Agreement, if OpCo's actual production exceeds planned production, Westlake has the option to purchase up to 95% of the excess production (the "Excess Production Option"). The fee for each pound of ethylene purchased by Westlake from OpCo up to the Minimum Commitment in any calendar year will equal: • the actual price OpCo pays Westlake to purchase ethane (or other feedstock, such as propane, if applicable) to produce each pound of ethylene, subject to a specified cap and a floor on the amount of feedstock that should be needed to produce each pound of ethylene; plus • the actual price OpCo pays Westlake to purchase natural gas to produce each pound of ethylene, subject to a specified cap and a floor on the amount of natural gas that should be needed to produce each pound of ethylene; plus • OpCo's estimated operating costs (including selling, general and administrative expenses), divided by OpCo's planned ethylene production for the year (in pounds); plus • a five-year average of OpCo's expected future maintenance capital expenditures and other turnaround expenditures, divided by OpCo's planned ethylene production capacity for the year (in pounds); less • the proceeds (on a per pound of ethylene basis) received by OpCo from the sale of co-products (including, but not limited to, propylene, crude butadiene, pyrolysis gasoline and hydrogen) associated with producing the ethylene purchased by Westlake; plus • a $0.10 per pound margin. The fee for the Excess Production Option, if exercised, equals OpCo's estimated variable operating costs of producing the incremental ethylene, net of revenues from co-products sales plus a $0.10 per pound margin. The estimated operating costs and the expected future maintenance capital expenditures and other turnaround expenditures will be adjusted at the end of each year, to be applicable for the fee for the next calendar year, to reflect certain changes in forecasted costs. Under the Ethylene Sales Agreement OpCo has the option to curtail up to approximately 5% of its ethylene production annually in the event OpCo reasonably determines that its sales of such ethylene to third parties during the relevant period would be uneconomic. Pursuant to the Ethylene Sales Agreement, Westlake's obligation to pay for the annual minimum commitment (95% of OpCo's budgeted ethylene production), which is measured on an annual basis, is not reduced for a force majeure event lasting fewer than 45 consecutive days. In the event of a force majeure event, the Partnership recognizes buyer deficiency fees representing fixed margin and unavoided operating and maintenance capital expenditures and maintenance expenses per pound of volume committed by Westlake during the force majeure event. The result of the fee structure is that OpCo should generally recover the portion of its total operating costs and maintenance capital expenditures and other turnaround expenditures corresponding to the portion of OpCo's aggregate production that is purchased by Westlake. Any shortfall in recovery of such costs is generally recognized during the period in which the related operating, maintenance or turnaround activities occur and is recoverable from Westlake in the subsequent year. Under the Ethylene Sales Agreement, if production costs billed to Westlake on an annual basis are less than 95% of the actual production costs incurred by OpCo during the contract year, OpCo is entitled to recover the shortfall in such production costs (proportionate to the volume sold to Westlake) in the subsequent year ("Shortfall"). The Ethylene Sales Agreement provides that, if compliance with any law adopted or modified following our IPO results in OpCo incurring additional costs in excess of $500,000 in any contract year, OpCo is entitled to charge Westlake a monthly surcharge following efforts to mitigate the effects of such matter. The Ethylene Sales Agreement has an initial term extending until December 31, 2026 and automatically renews thereafter for successive 12-month terms unless terminated. Feedstock Supply Agreement OpCo has entered into a feedstock supply agreement with Westlake, pursuant to which Westlake sells to OpCo ethane and other feedstock in amounts sufficient for OpCo to produce the ethylene to be sold under the Ethylene Sales Agreement (the "Feedstock Supply Agreement"). The Feedstock Supply Agreement provides that OpCo may obtain feedstock from Westlake based on Westlake's total cost of purchasing and delivering the feedstock, including applicable transportation, storage and other costs. Title and risk of loss for all feedstock purchased by OpCo through the Feedstock Supply Agreement passes to OpCo upon delivery to one of three delivery points described in the Feedstock Supply Agreement. The Feedstock Supply Agreement has an initial term extending until December 31, 2026 and automatically renews thereafter for successive 12-month terms unless terminated by either party; provided, however, that such agreement can only be renewed in the event the Ethylene Sales Agreement is renewed simultaneously. The Feedstock Supply Agreement may, in certain circumstances, terminate concurrently with the termination of the Ethylene Sales Agreement. Services and Secondment Agreement OpCo has entered into a Services and Secondment Agreement with Westlake, pursuant to which OpCo provides Westlake with certain services required for the operation of Westlake's facilities; and Westlake provides OpCo with comprehensive operating services for OpCo's facilities, ranging from services relating to the maintenance and operations of the common facilities necessary for the operation of OpCo's units, to making available certain shared utilities such as electricity and natural gas that are necessary for the operation of OpCo's units. Westlake also seconds employees to OpCo to allow OpCo to operate its facilities. Such seconded employees are under the control of OpCo while they work on OpCo's facilities. The Services and Secondment Agreement has an initial 12-year term. The Services and Secondment Agreement may be renewed thereafter upon agreement of the parties and shall automatically terminate if the Ethylene Sales Agreement terminates under certain circumstances. Westlake and OpCo each can terminate the Services and Secondment Agreement under certain circumstances, including if the other party materially defaults on the performance of its obligations and such default continues for a 30-day period. Site Lease Agreements OpCo has entered into two site lease agreements with Westlake pursuant to which Westlake leases to OpCo the real property underlying Lake Charles Olefins and Calvert City Olefins, respectively, and grants OpCo rights to access and use certain other portions of Westlake's ethylene production facilities that are necessary to operate OpCo's production facilities. OpCo owes Westlake one dollar per site per year. The site lease agreements each have a term of 50 years. Each of the site lease agreements may be renewed if agreed by the parties. Omnibus Agreement The Partnership has entered into an Omnibus Agreement with Westlake that addresses (1) Westlake's indemnification of the Partnership for certain matters, including environmental and tax matters, (2) the provision by Westlake of certain management and other general and administrative services to the Partnership and its general partner and (3) the Partnership's reimbursement to Westlake for such services. The Omnibus Agreement also addresses Westlake's right of first refusal on any proposed transfer of the ethylene production facilities that serve Westlake's other facilities and Westlake's right of first refusal on any proposed transfer of the Partnership's equity interests in OpCo. Exchange Agreement OpCo and Westlake are parties to an exchange agreement, which continues on an annual basis, unless and until terminated by either party. Under the exchange agreement, OpCo may require Westlake to deliver up to 200 million pounds of ethylene for OpCo per year from the Site Leases to an ethylene hub in Mt. Belvieu, Texas, for which OpCo would be required to pay an exchange fee of $0.006 per pound. OpCo Partnership Agreement The Partnership, OpCo GP and Westlake are parties to an agreement of limited partnership for OpCo (the "OpCo LP Agreement"). The OpCo LP Agreement governs the ownership and management of OpCo and designates OpCo GP as the general partner of OpCo. OpCo GP generally has complete authority to manage OpCo's business and affairs. The Partnership controls OpCo GP, as its sole member, subject to certain approval rights held by Westlake. Investment Management Agreement The Partnership, OpCo and Westlake are parties to an Investment Management Agreement that authorizes Westlake to invest the Partnership and OpCo's excess cash with Westlake for a term of up to a maximum of nine months. Per the terms of the Investment Management Agreement, the Partnership 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. The Partnership had $106,243 of invested cash under the Investment Management Agreement at December 31, 2021. |
Accounts Receivable_Third Parti
Accounts Receivable—Third Parties | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable—Third Parties | Accounts Receivable—Third Parties Accounts receivable—third parties consist of the following: December 31, 2021 2020 Trade customers $ 5,875 $ 11,344 Allowance for credit losses (50) (315) Other receivables — — Accounts receivable, net—third parties $ 5,825 $ 11,029 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consist of the following: December 31, 2021 2020 Finished products $ 5,458 $ 3,157 Feedstock, additives and chemicals 3,440 317 Inventories $ 8,898 $ 3,474 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following: December 31, 2021 2020 Building and improvements $ 18,361 $ 17,994 Plant and equipment 1,909,519 1,855,833 Other 107,656 106,078 2,035,536 1,979,905 Less: Accumulated depreciation (1,022,750) (971,476) 1,012,786 1,008,429 Construction in progress 30,753 42,248 Property, plant and equipment, net $ 1,043,539 $ 1,050,677 Depreciation expense on property, plant and equipment of $91,852, $90,768 and $89,454 is included in cost of sales in the consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019, respectively. |
Deferred Charges and Other Asse
Deferred Charges and Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Deferred Charges and Other Assets | Deferred Charges and Other Assets Deferred charges and other assets, net consist of the following: Year Ended December 31, 2021 2020 Turnaround costs, net $ 146,942 $ 32,273 Other 3,193 4,419 Total deferred charges and other assets $ 150,135 $ 36,692 Amortization expense on other assets of $16,962, $12,386 and $17,866 is included in the consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019, respectively. Certain other assets are amortized over periods ranging from five |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt payable to Westlake consists of the following: December 31, 2021 2020 OpCo Revolver (variable interest rate of London Interbank Offered Rate ("LIBOR") plus 2.0%, scheduled maturity of September 25, 2023) $ 22,619 $ 22,619 MLP Revolver (variable interest rate of LIBOR plus 2.0%, scheduled maturity of March 19, 2023) 377,055 377,055 Long-term debt payable to Westlake $ 399,674 $ 399,674 On August 4, 2014, OpCo entered into a $600,000 senior unsecured revolving credit facility agreement with Westlake (as subsequently amended, the "OpCo Revolver"). The OpCo Revolver is scheduled to mature on September 25, 2023 and bears interest at a rate of LIBOR plus 2.0%, which may be paid-in-kind as an addition to the principal at OpCo's option. On April 30, 2019, the Partnership repaid $201,445 of borrowings under the OpCo Revolver. On April 29, 2015, the Partnership entered into a $300,000 revolving credit facility agreement with an affiliate of Westlake (as subsequently amended, the "MLP Revolver") to fund the Partnership's purchase of an additional 2.7% newly-issued, limited partner interest in OpCo for $135,341. In 2017, the Partnership entered into an amendment to the MLP Revolver credit agreement, increasing borrowing capacity from $300,000 to $600,000. On March 19, 2020, the Partnership entered into an amendment to the MLP Revolver, to extend the maturity date to March 19, 2023 and add a phase-out provision for LIBOR, which is to be replaced by an alternate benchmark rate. Pursuant to the amended credit agreement, borrowings under the MLP Revolver bear interest at a variable rate of either (a) LIBOR plus 2.0% or, if LIBOR is no longer available, (b) Alternate Base Rate plus 1.0%. The MLP Revolver bears interest at LIBOR plus a spread ranging from 2.0% to 3.0% (depending on the Partnership's consolidated leverage ratio), payable quarterly. The MLP Revolver provides that the Partnership may pay all or a portion of the interest on any borrowings in kind, in which case any such amounts would be added to the principal amount of the loan. The MLP Revolver requires that the Partnership maintain a consolidated leverage ratio of either (1) during any one-year period following certain types of acquisitions (including acquisitions of additional interests in OpCo), 5.50:1.00 or less, or (2) during any other period, 4.50:1.00 or less. The MLP Revolver also contains certain other customary covenants. The repayment of borrowings under the MLP Revolver is subject to acceleration upon the occurrence of an event of default. On March 29, 2019, the Partnership borrowed $123,511 under the MLP Revolver to partially fund the purchase of the additional 4.5% interest in OpCo. As of December 31, 2021, the Partnership was in compliance with all of the covenants under the OpCo Revolver and the MLP Revolver. The weighted average interest rate on all long-term debt was 2.13% and 2.23% at December 31, 2021 and 2020, respectively. As of December 31, 2021, the Partnership had no scheduled maturities of long-term debt until 2023. The OpCo Revolver is scheduled to mature on September 25, 2023, and the MLP Revolver is scheduled to mature on March 19, 2023. |
Distributions and Net Income Pe
Distributions and Net Income Per Limited Partner Unit | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Limited Partner Unit | Distributions and Net Income Per Limited Partner Unit On January 24, 2022, the board of directors of Westlake Chemical Partners GP LLC ("Westlake GP"), the Partnership's general partner, declared a quarterly cash distribution for the period from October 1, 2021 to December 31, 2021 of $0.4714 per common unit. This distribution was paid on February 17, 2022 to unitholders of record on February 3, 2022. Distributions are declared subsequent to quarter end; therefore, the table below represents total cash distributions declared from earnings of the related periods pertaining to such distributions. Year Ended December 31 2021 2020 2019 Net income attributable to the Partnership $ 82,547 $ 66,167 $ 60,981 Less: Limited partners' distribution declared on common units 66,388 66,365 64,718 Distributions declared with respect to the incentive distribution rights — — — Net income in excess of distribution (Distribution in excess of net income) $ 16,159 $ (198) $ (3,737) Net income per unit applicable to common limited partner units and to subordinated limited partner units is computed by dividing the respective limited partners' interest in net income by the weighted-average number of common units and subordinated units outstanding for the period. Because the Partnership has more than one class of participating securities, it uses the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units, subordinated units and incentive distribution rights. Net income attributable to the Partnership is allocated to the unitholders in accordance with their respective ownership percentages in preparation of the consolidated statements of changes in equity. However, when distributions related to the incentive distribution rights are made, net income equal to the amount of those distributions is first allocated to the general partner before the remaining net income is allocated to the unitholders based on their respective ownership percentages. Basic and diluted net income per unit is the same because the Partnership does not have any potentially dilutive units outstanding for the periods presented. All of the subordinated units, which were owned by Westlake, were converted into common units in 2017. Year Ended December 31, 2021 Limited Partners' Common Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution $ 66,388 $ — $ 66,388 Net income in excess of distribution 16,159 — 16,159 Net income $ 82,547 $ — $ 82,547 Weighted average units outstanding: Basic and diluted 35,206,333 35,206,333 Net income per limited partner unit: Basic and diluted $ 2.34 Year Ended December 31, 2020 Limited Partners' Common Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution $ 66,365 $ — $ 66,365 Distribution in excess of net income (198) — (198) Net income $ 66,167 $ — $ 66,167 Weighted average units outstanding: Basic and diluted 35,195,271 35,195,271 Net income per limited partner unit: Basic and diluted $ 1.88 Year Ended December 31, 2019 Limited Partners' Common Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution $ 64,718 $ — $ 64,718 Distribution in excess of net income (3,737) — (3,737) Net income $ 60,981 $ — $ 60,981 Weighted average units outstanding: Basic and diluted 34,488,058 34,488,058 Net income per limited partner unit: Basic and diluted $ 1.77 The amended Partnership Agreement provides that the Partnership will distribute cash each quarter to all the unitholders, pro rata, until each unit has received a distribution of $1.2938. If cash distributions to the Partnership's unitholders exceed $1.2938 per common unit in any quarter, the Partnership's unitholders and Westlake, as the holder of the Partnership's incentive distribution rights, will receive distributions according to the following percentage allocations: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $1.2938 up to $1.4063 85.0 % 15.0 % Above $1.4063 up to $1.6875 75.0 % 25.0 % Above $1.6875 50.0 % 50.0 % The Partnership's distribution for the three months ended December 31, 2021 did not exceed the $1.2938 per unit threshold, and, as a result, no distribution was made with respect to the Partnership's incentive distribution rights to Westlake, as the holder of the Partnership' incentive distribution rights. Distribution Per Common Unit Distributions per common unit for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, 2021 2020 2019 Distributions per common unit $ 1.8856 $ 1.8856 $ 1.8005 |
Partners' Equity
Partners' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Partners' Equity [Abstract] | |
Partners' Equity | Partners' Equity On October 4, 2018, the Partnership and Westlake Chemical Partners GP LLC, the general partner of the Partnership, entered into an Equity Distribution Agreement with UBS Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC to offer and sell the Partnership's common units, from time to time, up to an aggregate offering amount of $50,000. The Equity Distribution Agreement was amended on February 28, 2020 to reference a new shelf registration for utilization under this agreement. No common units were issued under this program as of December 31, 2021. On March 29, 2019, the Partnership completed the issuance and sale of 2,940,818 common units at a price of $21.40 per unit through a private placement. TTWF LP, Westlake's principal stockholder and a related party, acquired 1,401,869 common units out of 2,940,818 common units issued in the private placement. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Partnership and OpCo regularly enter into related party transactions with Westlake. See below for a description of transactions with related parties. Sales to Related Parties OpCo sells ethylene to Westlake under the Ethylene Sales Agreement. Additionally, the Partnership and OpCo from time to time provide other services or products for which it charges Westlake a fee. Sales to related parties were as follows: Year Ended December 31, 2021 2020 2019 Net sales—Westlake $ 1,026,586 $ 888,245 $ 937,625 Under the Services and Secondment Agreement, OpCo uses a portion of its production capacity to process purge gas for Westlake. On August 4, 2016, OpCo and Westlake entered into an amendment to the Ethylene Sales Agreement in order to provide that certain of the pricing components that make up the price for ethylene sold thereunder would be modified to reflect the portion of OpCo's production capacity that is used to process Westlake's purge gas instead of producing ethylene and to clarify that costs specific to the processing of Westlake's purge gas would be recovered under the Services and Secondment Agreement, and not the Ethylene Sales Agreement. OpCo declared force majeure events in 2021 related to the flash fire at the Petro 2 facility, OpCo's Petro 1 facility outage, and due to the severe winter storm. As a result of these events, the Partnership recognized revenue for a buyer deficiency fee and Shortfall in 2021. The buyer deficiency fee is measured periodically based upon the lower of the actual production deficiency at period end or the estimated annual production deficiency based upon OpCo's annual anticipated production. These periodic estimates are updated at the end of the year based on actual annual production. Based upon OpCo's 2021 production, the Partnership recognized buyer deficiency fees of $51,395 and Shortfall of $58,906 during 2021. The buyer deficiency fees and Shortfall are classified as a component of net sales. The buyer deficiency fee was collected from Westlake in January 2022 and Shortfall recognized in 2021 is recoverable during 2022 per the Ethylene Sales Agreement. During 2020, the Lake Charles Petro 1 and Petro 2 facilities were impacted by Hurricanes Laura and Delta, which resulted in force majeure events under the Ethylene Sales Agreement. As a result of the force majeure events, the Partnership recognized a buyer deficiency fee of $69,555 as a component of net sales in 2020. Payment for the buyer deficiency fee was received by the Partnership in January 2021. Cost of Sales from Related Parties Charges for goods and services purchased by the Partnership and OpCo from Westlake and included in cost of sales relate primarily to feedstock purchased under the Feedstock Supply Agreement and services provided under the Services and Secondment Agreement. Charges from related parties in cost of sales were as follows: Year Ended December 31, 2021 2020 2019 Feedstock purchased from Westlake and included in cost of sales $ 404,359 $ 255,910 $ 366,031 Other charges from Westlake and included in cost of sales 130,541 103,273 106,564 Total $ 534,900 $ 359,183 $ 472,595 Services from Related Parties Included in Selling, General and Administrative Expenses Charges for services purchased by the Partnership from Westlake and included in selling, general and administrative expenses primarily relate to services Westlake performs on behalf of the Partnership under the Omnibus Agreement, including the Partnership's finance, legal, information technology, human resources, communication, ethics and compliance and other administrative functions. Charges from related parties included within selling, general and administrative expenses were as follows: Year Ended December 31, 2021 2020 2019 Services received from Westlake and included in selling, general and $ 28,577 $ 22,162 $ 26,946 Goods and Services from Related Parties Capitalized as Assets Charges for goods and services purchased by the Partnership and OpCo from Westlake which were capitalized as assets relate primarily to the services of Westlake employees under the Services and Secondment Agreement. Charges from related parties for goods and services capitalized as assets were as follows: Year Ended December 31, 2021 2020 2019 Goods and services purchased from Westlake and capitalized as assets $ 16,318 $ 1,736 $ 2,503 Receivable under the Investment Management Agreement On August 1, 2017, the Partnership, OpCo and Westlake executed an investment management agreement (the "Investment Management Agreement") that authorized Westlake to invest the Partnership's and OpCo's excess cash with Westlake for a term of up to a maximum of nine months. Per the terms of the Investment Management Agreement, the Partnership 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. Accrued interest of $71 and $56 was included in the receivable under the Investment Management Agreement balance at December 31, 2021 and 2020, respectively. Total interest earned related to the Investment Management Agreement was $296, $932 and $3,289 for the years ended December 31, 2021, 2020 and 2019, respectively. The Partnership's receivable under the Investment Management Agreement was as follows: December 31, 2021 2020 Receivable under the Investment Management Agreement $ 106,243 $ 123,228 Accounts Receivable from Related Parties The Partnership's accounts receivable from Westlake result primarily from ethylene sales to Westlake and any buyer deficiency fee and Shortfall recognized under the Ethylene Sales Agreement. As discussed above under "Sales to Related Parties", the buyer deficiency fee for the year ended December 31, 2021 was received by the Partnership in January 2022 and the Shortfall recognized in 2021 is recoverable during 2022 per the Ethylene Sales Agreement. Payment for the buyer deficiency fee recognized during 2020 was received by the Partnership in January 2021. The Partnership's accounts receivable from Westlake were as follows: December 31, 2021 2020 Accounts receivable—Westlake $ 142,791 $ 108,028 Accounts Payable to Related Parties The Partnership's accounts payable to Westlake result primarily from feedstock purchases under the Feedstock Supply Agreement and services provided under the Services and Secondment Agreement and the Omnibus Agreement. The Partnership's accounts payable to Westlake were as follows: December 31, 2021 2020 Accounts payable—Westlake $ 10,796 $ 7,855 Debt Payable to Related Parties See Note 8 for a description of related party debt payable balances. Interest on related party debt payable balances, net of capitalized interest, for the years ended December 31, 2021, 2020 and 2019 was $8,816, $12,038 and $19,623, respectively, and is reflected as a component of other income (expense) in the consolidated and statements of operations. At December 31, 2021, 2020 and 2019, accrued interest on related party debt was $2,176, $2,336 and $4,187, and is reflected as a component of accrued liabilities in the consolidated balance sheets. Debt payable to related parties was as follows: December 31, 2021 2020 Long-term debt payable to Westlake $ 399,674 $ 399,674 Related Party Leases OpCo is obligated to Westlake under various long-term and short-term noncancelable operating leases, primarily related to rail car leases and land. Operating lease rentals paid to Westlake for such leases were $3,037, $3,038 and $2,343 for the years ended December 31, 2021, 2020 and 2019, respectively, and reflected in other charges from Westlake that are included in cost of sales. OpCo has two site lease agreements with Westlake, each of which has a term of 50 years. Pursuant to the site lease agreements, OpCo pays Westlake one dollar per site per year. Major Customer and Concentration of Credit Risk During the years ended December 31, 2021, 2020 and 2019, Westlake accounted for approximately 84.5%, 91.9% and 85.9%, respectively, of the Partnership's net sales. General During the years ended December 31, 2021, 2020 and 2019, the Partnership reimbursed $186, $279 and $293, respectively, to Westlake for certain state tax payments. Other See Note 10 above for an additional related party transaction. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Partnership reports certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Under the accounting guidance for fair value measurements, inputs used to measure fair value are classified in one of three levels: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The Partnership has financial assets and liabilities subject to fair value measures. These financial assets and liabilities include cash and cash equivalents, accounts receivable, net, accounts payable and long-term debt payable to Westlake, all of which are recorded at carrying value. The amounts reported in the consolidated balance sheets for accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments. The carrying and fair values of the Partnership's long-term debt at December 31, 2021 and December 31, 2020 are summarized in the table below. The fair value of debt is determined based on the present value of expected future cash flows using a discounted cash flow methodology. Because the Partnership's valuation methodology used for long-term debt requires the use of significant unobservable inputs, the inputs used to measure the fair value of the Partnership's long-term debt are classified as Level 3 within the fair value hierarchy. Inputs used to estimate the fair values of the Partnership's long-term debt include the selection of an appropriate discount rate. December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair OpCo Revolver $ 22,619 $ 23,276 $ 22,619 $ 23,301 MLP Revolver 377,055 383,574 377,055 383,284 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Partnership is a limited partnership and is treated as a partnership for U.S. federal income tax purposes and, therefore, is not liable for entity-level federal income taxes. The Partnership is, however, subject to state and local income taxes. The components of income tax of the Partnership are as follows: Year Ended December 31, 2021 2020 2019 Current State and local $ 561 $ 671 $ 743 Deferred State and local (12) (107) (15) Total provision $ 549 $ 564 $ 728 The reconciliation of income tax expense at the U.S. statutory rate to the income tax expense is as follows: Year Ended December 31, 2021 2020 2019 Provision for federal income tax, at statutory rate $ 84,406 $ 71,755 $ 70,062 State income tax provision, net of federal income tax effect 549 564 728 Partnership income not subject to entity-level federal income tax (84,406) (71,755) (70,062) Total provision $ 549 $ 564 $ 728 The tax effects of the principal temporary differences between financial reporting and income tax reporting are as follows: December 31, 2021 2020 Property, plant and equipment $ (1,335) $ (1,487) Turnaround costs (195) (55) Total deferred tax liabilities $ (1,530) $ (1,542) Balance sheet classifications Noncurrent deferred tax liability $ (1,530) $ (1,542) Total deferred tax liabilities $ (1,530) $ (1,542) |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information Accrued and Other Liabilities Accrued and Other liabilities were $60,895 and $18,768 at December 31, 2021 and 2020, respectively. Accruals related to maintenance expenses, turnaround costs, and capital expenditures, which are components of accrued liabilities, were $5,597, $40,250 and $7,491 at December 31, 2021, respectively, and were $3,905, $0 and $2,286 at December 31, 2020, respectively. No other component of accrued liabilities was more than five percent of total current liabilities. Cash Flow Information Non-cash Investing Activity Capital expenditure related liabilities, included in accounts payable—third parties and accrued and other liabilities, were $14,415, $6,854, and $4,364 at December 31, 2021, 2020, and 2019, respectively. Interest and Income Taxes |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Partnership is subject to environmental laws and regulations that can impose civil and criminal sanctions and that may require the Partnership to mitigate the effects of contamination caused by the release or disposal of hazardous substances into the environment. These laws include the federal Clean Air Act, the federal Water Pollution Control Act, the Resource Conservation and Recovery Act ("RCRA"), the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), the Toxic Substances Control Act and various other federal, state and local laws and regulations. Under CERCLA, an owner or operator of property may be held strictly liable for remediating contamination without regard to whether that person caused the contamination, and without regard to whether the practices that resulted in the contamination were legal at the time they occurred. Because the Partnership's production sites have a history of industrial use, it is impossible to predict precisely what effect these legal requirements will have on the Partnership. Westlake will indemnify the Partnership for liabilities that occurred or existed prior to August 4, 2014. On September 27, 2021, shortly after the turnaround on Petro 2 commenced, there was a flash fire at the quench tower of the Petro 2 facility. Several contractors working on the quench tower were injured. There are lawsuits pending in connection with the flash fire. We expect insurance to cover most of the costs associated with these lawsuits. The Partnership is also involved in other legal proceedings incidental to the conduct of its business. The Partnership does not believe that any of these legal proceedings will have a material adverse effect on its financial condition, results of operations or cash flows. Other Commitments The Partnership has various purchase commitments for its capital projects and for materials, supplies and services incident to the ordinary conduct of business. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business | Description of Business Westlake Chemical Partners LP ("Westlake Chemical Partners LP" or the "Partnership") is a Delaware limited partnership formed in March 2014 to operate, acquire and develop ethylene production facilities and related assets. On August 4, 2014, the Partnership completed its initial public offering (the "IPO") of 12,937,500 common units representing limited partner interests. In connection with the IPO, the Partnership acquired a 10.6% limited partner interest in Westlake Chemical OpCo LP ("OpCo") and a 100% interest in Westlake Chemical OpCo GP LLC ("OpCo GP"), which is the general partner of OpCo. OpCo owns three ethylene production facilities and one common carrier ethylene pipeline (collectively, the "Contributed Assets"). Since the IPO, the Partnership has periodically purchased additional limited partner interest in OpCo. Most recently, on March 29, 2019, the Partnership purchased an additional 4.5% newly-issued limited partner interest in OpCo for approximately $201,445, resulting in an aggregate 22.8% limited partner interest in OpCo, effective January 1, 2019. The remaining 77.2% limited partner interest in OpCo is owned by Westlake Corporation. References to "Westlake" refer collectively to Westlake Corporation (formerly known as Westlake Corporation) and its subsidiaries, other than the Partnership, OpCo and OpCo GP. OpCo and Westlake entered into an ethylene sales agreement (the "Ethylene Sales Agreement") pursuant to which the Partnership generates a substantial majority of its revenue. For more information, see Note 2. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States. The Partnership holds a 22.8% limited partner interest and the entire non-economic general partner interest in OpCo. The remaining 77.2% limited partner interest in OpCo is owned directly by Westlake, which has no rights to direct the activities that most significantly impact the economic performance of OpCo. As a result of the fact that substantially all of OpCo's activities are conducted on behalf of Westlake, and the fact that OpCo exhibits disproportionality of voting rights to economic interest, OpCo was deemed to be a variable interest entity. The Partnership, through its ownership of OpCo's general partner, has the power to direct the activities that most significantly impact the economic performance of OpCo, and it also has the obligation or right to absorb losses or receive benefits from OpCo that could potentially be significant to OpCo. As such, the Partnership was determined to be OpCo's primary beneficiary and therefore consolidates OpCo's results of operations and financial position. Westlake's retained interest of 77.2% is recorded as noncontrolling interest in the Partnership's consolidated financial statements. |
Cash And Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments that are readily convertible into cash and have a maturity of three months or less at the date of acquisition. |
Allowance For Doubtful Accounts | Allowance for Credit Losses The determination of the allowance for credit losses is based on estimation of the amount of accounts receivable that the Partnership believes are unlikely to be collected. Estimating this amount requires analysis of the financial strength of the Partnership's customers, the use of historical experience, the Partnership's accounts receivable aged trial balance, customer specific collectability analysis and an evaluation of economic conditions. The allowance for credit losses is reviewed quarterly. Past due balances over 90 days and high risk accounts, as determined by the analysis of financial strength of customers, are reviewed individually for collectability. |
Inventories | Inventories Inventories primarily include product, material and supplies. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out ("FIFO") or average method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost, net of accumulated depreciation. Cost includes expenditures for improvements and betterments that extend the useful lives of the assets and interest capitalized on significant capital projects. Interest expense is capitalized for qualifying assets under construction. Capitalized interest costs are included in property, plant and equipment and are depreciated over the useful life of the related asset. Capitalized interest was zero for the years ended December 31, 2021 and 2020 and $175 for the year ended December 31, 2019. Repair and maintenance costs are charged to operations as incurred. Gains and losses on the disposal or retirement of property, plant and equipment are reflected in the statement of operations when the assets are sold or retired. The accounting guidance for asset retirement obligations requires the recording of liabilities equal to the fair value of asset retirement obligations and corresponding additional asset costs, when there is a legal asset retirement obligation as a result of existing or enacted law, statute or contract. The Partnership has conditional asset retirement obligations for the removal and disposal of hazardous materials from certain of the Partnership's manufacturing facilities. However, no asset retirement obligations have been recognized because the fair value of the conditional legal obligation cannot be measured due to the indeterminate settlement date of the obligation. Settlement of these conditional asset retirement obligations is not expected to have a material adverse effect on the Partnership's financial condition, results of operations or cash flows in any individual reporting period. |
Impairment Of Long-Lived Assets and Intangible Assets | Impairment of Long-Lived Assets The accounting guidance for the impairment or disposal of long-lived assets requires that the Partnership assess long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, including when negative conditions such as significant current or projected operating losses exist. Other factors considered by the Partnership when determining if an impairment assessment is necessary include, but are not limited to, significant changes or projected changes in supply and demand fundamentals (which would have a negative impact on operating rates or margins), new technological developments, new competitors with significant raw material or other cost advantages, adverse changes associated with the United States and world economies and uncertainties associated with governmental actions. Long-lived assets assessed for impairment are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. Assets are considered to be impaired if the carrying amount of an asset exceeds the future undiscounted cash flows. The impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell. Impairment of Goodwill The accounting guidance requires that goodwill be tested for impairment at least annually, or when events or changes in circumstances indicate the fair value of a reporting unit with goodwill has been reduced below its carrying value. The impairment test for the recorded goodwill was performed in October 2021 and did not indicate impairment of the goodwill. As of December 31, 2021, the Partnership's recorded goodwill was $5,814. See Note 6 for more information on the Partnership's annual goodwill impairment test. |
Turnaround Costs | Turnaround Costs The Partnership accounts for turnaround costs under the deferral method. Turnarounds are the scheduled and required shutdowns of specific operating units in order to perform planned major maintenance activities. The costs related to the significant overhaul and refurbishment activities include maintenance materials, parts and direct labor costs. The costs of the turnaround are deferred when incurred at the time of the turnaround and amortized (within depreciation and amortization) on a straight-line basis until the next planned turnaround, which ranges from five |
Concentration Of Credit Risk | Concentration of Credit RiskFinancial instruments which potentially subject the Partnership to concentration of risk consist principally of trade receivables from third-party customers who purchase ethylene and ethylene co-products. The Partnership performs periodic credit evaluations, as applicable, of the customers' financial condition and generally does not require collateral. The Partnership maintains allowances for potential losses, as applicable. |
Revenue Recognition | Revenue Recognition Revenue is recognized when OpCo transfers control of inventories to customers. Amounts recognized as revenues reflect the consideration to which OpCo expects to be entitled in exchange for those inventories. The Partnership and OpCo incorporate production volume and production cost forecasts in the estimated transaction prices from sales to Westlake under the Ethylene Sales Agreement. The Partnership recognizes revenue and accounts receivable upon transferring control of inventories to its customers. Ethylene sold to Westlake under the Ethylene Sales Agreement is transferred to Westlake immediately after production and recognized in sales. Control of inventories sold to third parties generally transfers upon shipment to the customer. The Partnership excludes taxes collected on behalf of customers from the estimated contract price. Provisions for discounts, rebates and returns are incorporated in the estimate of variable consideration and reflected as reduction to revenue in the same period as the related sales. The Partnership does not disclose the value of unsatisfied performance obligations because its contracts with customers (1) have an original expected duration of one year or less or (2) have only variable consideration which is allocated to wholly unsatisfied performance obligations that is calculated based on market prices at a specified date and is allocated to wholly unsatisfied performance obligations. |
Transportation and Freight | Transportation and Freight Amounts billed to customers for freight and handling costs on outbound shipments are included in net sales in the consolidated statements of operations. Transportation and freight costs incurred by the Partnership on outbound shipments are included in cost of sales in the consolidated statements of operations. |
Derivative Instruments | Derivative InstrumentsThe accounting guidance for derivative instruments and hedging activities requires that the Partnership recognize all derivative instruments on the balance sheet at fair value, and changes in the derivative's fair value must be currently recognized in earnings or comprehensive income, depending on the designation of the derivative. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded in comprehensive income and is recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings currently. |
Environmental Costs | Environmental CostsEnvironmental costs relating to current operations are expensed or capitalized, as appropriate, depending on whether such costs provide future economic benefits. Remediation liabilities are recognized when the costs are considered probable and can be reasonably estimated. Measurement of liabilities is based on currently enacted laws and regulations, existing technology and undiscounted site-specific costs. Environmental liabilities in connection with properties that are sold or closed are realized upon such sale or closure, to the extent they are probable and estimable and not previously reserved. Recognition of any joint and several liabilities is based upon the Partnership's best estimate of its final pro rata share of the liability. |
Income Taxes | Income Taxes The Partnership is a limited partnership and is treated as a partnership for U.S. federal income tax purposes and, therefore, is not liable for entity-level federal income taxes. The Partnership is, however, subject to state and local income taxes. Deferred tax expense or benefit is the result of changes in the deferred tax assets and liabilities during the period. Valuation allowances are recorded against deferred tax assets when it is considered more likely than not that the deferred tax assets will not be realized on a separate tax return basis. |
Segment Reporting | Segment Reporting The Partnership only operates one segment (ethylene production) and all of its operations are located in the United States. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. The COVID pandemic resulted in widespread adverse impacts on the global economy in 2020. The Partnership has not experienced significant disruptions to its business operations for the fiscal years ended December 31, 2020 and 2021 and does not expect significant disruptions to its business operations resulting from COVID-19. However, the impact that COVID-19 will have on the Partnership's financial condition, results of operations and cash flows cannot be estimated with certainty at this time as it will depend on future developments, including, among others, the timing and logistics with respect to the distribution of vaccines (including with respect to the more recent variants of COVID-19) and other treatments, the ultimate duration of the pandemic, geographic spread and severity of the virus, the consequences of governmental and other measures designed to prevent the spread of the virus, the impact on the operation of OpCo's facilities, Westlake, customers, suppliers and other third parties and the timing and extent to which normal economic and operating conditions resume. |
Comprehensive Income | Other Comprehensive Income The Partnership has not reported consolidated statements of comprehensive income for the years ended December 31, 2021, 2020 and 2019 due to immateriality of the components of other comprehensive income. |
Recent Accounting Pronouncements and Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Reference Rate Reform (ASU No. 2020-04) In March 2020, the FASB issued an accounting standards update to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform, if certain criteria are met. The amendments in this update are effective for all entities from March 12, 2020 through December 31, 2022. The Partnership adopted this accounting standard effective October 1, 2021, and the adoption did not have a material impact on the Partnership's consolidated financial position, results of operations and cash flows. |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost, net of accumulated depreciation. Cost includes expenditures for improvements and betterments that extend the useful lives of the assets and interest capitalized on significant capital projects. Interest expense is capitalized for qualifying assets under construction. Capitalized interest costs are included in property, plant and equipment and are depreciated over the useful life of the related asset. Capitalized interest was zero for the years ended December 31, 2021 and 2020 and $175 for the year ended December 31, 2019. Repair and maintenance costs are charged to operations as incurred. Gains and losses on the disposal or retirement of property, plant and equipment are reflected in the statement of operations when the assets are sold or retired. The accounting guidance for asset retirement obligations requires the recording of liabilities equal to the fair value of asset retirement obligations and corresponding additional asset costs, when there is a legal asset retirement obligation as a result of existing or enacted law, statute or contract. The Partnership has conditional asset retirement obligations for the removal and disposal of hazardous materials from certain of the Partnership's manufacturing facilities. However, no asset retirement obligations have been recognized because the fair value of the conditional legal obligation cannot be measured due to the indeterminate settlement date of the obligation. Settlement of these conditional asset retirement obligations is not expected to have a material adverse effect on the Partnership's financial condition, results of operations or cash flows in any individual reporting period. |
Schedule Of Estimated Useful Lives Of Assets | Depreciation is provided by utilizing the straight-line method over the estimated useful lives of the assets as follows: Classification Years Buildings and improvements 40 Plant and equipment 25 Ethylene pipeline 35 Other 3-15 |
Accounts Receivable_Third Par_2
Accounts Receivable—Third Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule Of Accounts Receivable | Accounts receivable—third parties consist of the following: December 31, 2021 2020 Trade customers $ 5,875 $ 11,344 Allowance for credit losses (50) (315) Other receivables — — Accounts receivable, net—third parties $ 5,825 $ 11,029 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | Inventories consist of the following: December 31, 2021 2020 Finished products $ 5,458 $ 3,157 Feedstock, additives and chemicals 3,440 317 Inventories $ 8,898 $ 3,474 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule Of Property, Plant And Equipment | Property, plant and equipment consist of the following: December 31, 2021 2020 Building and improvements $ 18,361 $ 17,994 Plant and equipment 1,909,519 1,855,833 Other 107,656 106,078 2,035,536 1,979,905 Less: Accumulated depreciation (1,022,750) (971,476) 1,012,786 1,008,429 Construction in progress 30,753 42,248 Property, plant and equipment, net $ 1,043,539 $ 1,050,677 |
Deferred Charges and Other As_2
Deferred Charges and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Deferred charges and other assets, net consist of the following: Year Ended December 31, 2021 2020 Turnaround costs, net $ 146,942 $ 32,273 Other 3,193 4,419 Total deferred charges and other assets $ 150,135 $ 36,692 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | Long-term debt payable to Westlake consists of the following: December 31, 2021 2020 OpCo Revolver (variable interest rate of London Interbank Offered Rate ("LIBOR") plus 2.0%, scheduled maturity of September 25, 2023) $ 22,619 $ 22,619 MLP Revolver (variable interest rate of LIBOR plus 2.0%, scheduled maturity of March 19, 2023) 377,055 377,055 Long-term debt payable to Westlake $ 399,674 $ 399,674 |
Distributions and Net Income _2
Distributions and Net Income Per Limited Partner Unit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended December 31 2021 2020 2019 Net income attributable to the Partnership $ 82,547 $ 66,167 $ 60,981 Less: Limited partners' distribution declared on common units 66,388 66,365 64,718 Distributions declared with respect to the incentive distribution rights — — — Net income in excess of distribution (Distribution in excess of net income) $ 16,159 $ (198) $ (3,737) Net income per unit applicable to common limited partner units and to subordinated limited partner units is computed by dividing the respective limited partners' interest in net income by the weighted-average number of common units and subordinated units outstanding for the period. Because the Partnership has more than one class of participating securities, it uses the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units, subordinated units and incentive distribution rights. Net income attributable to the Partnership is allocated to the unitholders in accordance with their respective ownership percentages in preparation of the consolidated statements of changes in equity. However, when distributions related to the incentive distribution rights are made, net income equal to the amount of those distributions is first allocated to the general partner before the remaining net income is allocated to the unitholders based on their respective ownership percentages. Basic and diluted net income per unit is the same because the Partnership does not have any potentially dilutive units outstanding for the periods presented. All of the subordinated units, which were owned by Westlake, were converted into common units in 2017. Year Ended December 31, 2021 Limited Partners' Common Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution $ 66,388 $ — $ 66,388 Net income in excess of distribution 16,159 — 16,159 Net income $ 82,547 $ — $ 82,547 Weighted average units outstanding: Basic and diluted 35,206,333 35,206,333 Net income per limited partner unit: Basic and diluted $ 2.34 Year Ended December 31, 2020 Limited Partners' Common Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution $ 66,365 $ — $ 66,365 Distribution in excess of net income (198) — (198) Net income $ 66,167 $ — $ 66,167 Weighted average units outstanding: Basic and diluted 35,195,271 35,195,271 Net income per limited partner unit: Basic and diluted $ 1.88 Year Ended December 31, 2019 Limited Partners' Common Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution $ 64,718 $ — $ 64,718 Distribution in excess of net income (3,737) — (3,737) Net income $ 60,981 $ — $ 60,981 Weighted average units outstanding: Basic and diluted 34,488,058 34,488,058 Net income per limited partner unit: Basic and diluted $ 1.77 The amended Partnership Agreement provides that the Partnership will distribute cash each quarter to all the unitholders, pro rata, until each unit has received a distribution of $1.2938. If cash distributions to the Partnership's unitholders exceed $1.2938 per common unit in any quarter, the Partnership's unitholders and Westlake, as the holder of the Partnership's incentive distribution rights, will receive distributions according to the following percentage allocations: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $1.2938 up to $1.4063 85.0 % 15.0 % Above $1.4063 up to $1.6875 75.0 % 25.0 % Above $1.6875 50.0 % 50.0 % The Partnership's distribution for the three months ended December 31, 2021 did not exceed the $1.2938 per unit threshold, and, as a result, no distribution was made with respect to the Partnership's incentive distribution rights to Westlake, as the holder of the Partnership' incentive distribution rights. Distribution Per Common Unit Distributions per common unit for the years ended December 31, 2021, 2020 and 2019 were as follows: Year Ended December 31, 2021 2020 2019 Distributions per common unit $ 1.8856 $ 1.8856 $ 1.8005 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Sales to related parties were as follows: Year Ended December 31, 2021 2020 2019 Net sales—Westlake $ 1,026,586 $ 888,245 $ 937,625 Charges from related parties in cost of sales were as follows: Year Ended December 31, 2021 2020 2019 Feedstock purchased from Westlake and included in cost of sales $ 404,359 $ 255,910 $ 366,031 Other charges from Westlake and included in cost of sales 130,541 103,273 106,564 Total $ 534,900 $ 359,183 $ 472,595 Charges from related parties included within selling, general and administrative expenses were as follows: Year Ended December 31, 2021 2020 2019 Services received from Westlake and included in selling, general and $ 28,577 $ 22,162 $ 26,946 Charges from related parties for goods and services capitalized as assets were as follows: Year Ended December 31, 2021 2020 2019 Goods and services purchased from Westlake and capitalized as assets $ 16,318 $ 1,736 $ 2,503 The Partnership's receivable under the Investment Management Agreement was as follows: December 31, 2021 2020 Receivable under the Investment Management Agreement $ 106,243 $ 123,228 The Partnership's accounts receivable from Westlake were as follows: December 31, 2021 2020 Accounts receivable—Westlake $ 142,791 $ 108,028 December 31, 2021 2020 Accounts payable—Westlake $ 10,796 $ 7,855 Debt payable to related parties was as follows: December 31, 2021 2020 Long-term debt payable to Westlake $ 399,674 $ 399,674 |
Unit-based Compensation (Tables
Unit-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | Non-vested phantom unit awards as of December 31, 2021 and 2020 and awards granted during the respective periods were as follows: Number of Weighted Non-vested balance at December 31, 2019 13,634 $ 23.24 Granted 20,439 20.17 Vested (13,634) 19.08 Non-vested balance at December 31, 2020 20,439 22.33 Granted 11,178 26.97 Vested (20,439) 26.54 Non-vested balance at December 31, 2021 11,178 22.90 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying And Fair Values Of Long-Term Debt | The carrying and fair values of the Partnership's long-term debt at December 31, 2021 and December 31, 2020 are summarized in the table below. The fair value of debt is determined based on the present value of expected future cash flows using a discounted cash flow methodology. Because the Partnership's valuation methodology used for long-term debt requires the use of significant unobservable inputs, the inputs used to measure the fair value of the Partnership's long-term debt are classified as Level 3 within the fair value hierarchy. Inputs used to estimate the fair values of the Partnership's long-term debt include the selection of an appropriate discount rate. December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair OpCo Revolver $ 22,619 $ 23,276 $ 22,619 $ 23,301 MLP Revolver 377,055 383,574 377,055 383,284 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule Of The Provision For (Benefit From) Income Taxes | The components of income tax of the Partnership are as follows: Year Ended December 31, 2021 2020 2019 Current State and local $ 561 $ 671 $ 743 Deferred State and local (12) (107) (15) Total provision $ 549 $ 564 $ 728 |
Reconciliation Of Taxes Computed At The Statutory Rate To Income Tax Expense | The reconciliation of income tax expense at the U.S. statutory rate to the income tax expense is as follows: Year Ended December 31, 2021 2020 2019 Provision for federal income tax, at statutory rate $ 84,406 $ 71,755 $ 70,062 State income tax provision, net of federal income tax effect 549 564 728 Partnership income not subject to entity-level federal income tax (84,406) (71,755) (70,062) Total provision $ 549 $ 564 $ 728 |
Schedule Of Deferred Tax Assets And Liabilities | The tax effects of the principal temporary differences between financial reporting and income tax reporting are as follows: December 31, 2021 2020 Property, plant and equipment $ (1,335) $ (1,487) Turnaround costs (195) (55) Total deferred tax liabilities $ (1,530) $ (1,542) Balance sheet classifications Noncurrent deferred tax liability $ (1,530) $ (1,542) Total deferred tax liabilities $ (1,530) $ (1,542) |
Description of Business and S_4
Description of Business and Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | Mar. 29, 2019USD ($)$ / sharesshares | Apr. 29, 2015USD ($) | Aug. 04, 2014shares | Dec. 31, 2021USD ($)production_facility | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Threshold period past due accounts receivable reviewed | 90 days | |||||
Capitalized interest | $ 0 | $ 175 | ||||
Goodwill | $ 5,814 | $ 5,814 | ||||
Amortization period, maximum (in years) | 6 years | |||||
Amortization period, minimum (in years) | 5 years | |||||
Net proceeds from private placement of common units | $ 0 | $ 0 | $ 62,661 | |||
Limited Liability Company | Westlake Chemical OpCo GP LLC | Westlake Chemical Partners LP | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Partnership's ownership interest (percent) | 100.00% | |||||
Affiliated Entity | Westlake Chemical OpCo LP | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Amount paid to purchase additional limited partner interest | $ 201,445 | |||||
Affiliated Entity | Westlake Chemical OpCo LP | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Additional ownership interest acquired | 4.50% | 2.70% | ||||
Amount paid to purchase additional limited partner interest | $ 201,445 | $ 135,341 | ||||
Affiliated Entity | Westlake Chemical OpCo LP | Westlake Chemical Partners LP | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Partnership's ownership interest (percent) | 22.80% | 10.60% | ||||
Westlake | Majority-Owned Subsidiary, Unconsolidated | Westlake Chemical OpCo LP | Westlake Chemical Corporation | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Partnership's ownership interest (percent) | 77.20% | |||||
Westlake Chemical OpCo LP | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of Production Facilities | production_facility | 3 | |||||
Limited Partner | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of units sold in public offering | shares | 2,940,818 | 12,937,500 | ||||
Partners' Capital Account, Units, Sold in Public Offering, Price per Unit | $ / shares | $ 21.40 |
Description of Business and S_5
Description of Business and Significant Accounting Policies (Schedule Of Estimated Useful Lives Of Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Capitalized interest | $ 0 | $ 175 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 40 years | |
Plant and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 25 years | |
Ethylene pipeline | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 35 years | |
Minimum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 3 years | |
Maximum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 15 years |
Agreements with Westlake and _2
Agreements with Westlake and Related Parties (Details) | Aug. 04, 2014USD ($)leaselb$ / lb | Dec. 31, 2021USD ($)lb$ / lb | Dec. 31, 2020USD ($) |
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||
Term of Investment Management Agreement with Related Party, Maximum | 9 months | ||
Receivables under Investment Management Agreements with Related Parties, Current | $ | $ 106,243,000 | $ 123,228,000 | |
Westlake Chemical OpCo LP | Ethylene Sales Agreement | |||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||
Exchange agreement amount of purchase agreement | lb | 200,000,000 | ||
Purchase commitment, fixed margin on variable pricing | $ / lb | 0.006 | ||
Westlake Chemical OpCo LP | Westlake | Services And Secondment Agreement | Investee | |||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||
Related party transactions, term of agreements | 12 years | ||
Period of default in performance that can allow a party to terminate agreement | 30 days | ||
Westlake Chemical OpCo LP | Westlake | Site Lease Agreement | Investee | |||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||
Number of lease agreements | lease | 2 | ||
Operating lease, rental amount | $ | $ 1 | ||
Term of operating lease | 50 years | ||
Westlake Chemical OpCo LP | Westlake | Ethylene Sales Agreement | Investee | |||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||
Term of sales agreement | 12 years | ||
Minimum percentage required to be purchased | 95.00% | ||
Maximum mass required to be purchased | lb | 3,800,000,000 | ||
Purchase commitment, fixed margin on variable pricing | $ / lb | 0.10 | ||
Long-term Purchase Commitment, Compliance Surcharge Amount | $ | $ 500,000 | ||
Purchase commitment, renewal term | 12 months | ||
Number of years used to calculate average expenses | 5 years | ||
Westlake Chemical OpCo LP | Westlake | Feedstock Supply Agreement | Investee | |||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||
Related party transactions, term of agreements | 12 months | ||
Westlake Chemical OpCo LP | Westlake | Excess Production Option | Investee | |||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||
Purchase commitment, fixed margin on variable pricing | $ / lb | 0.10 |
Accounts Receivable_Third Par_3
Accounts Receivable—Third Parties (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Trade customers | $ 5,875 | $ 11,344 |
Allowance for credit losses | (50) | (315) |
Other receivables | 0 | 0 |
Accounts receivable, net—third parties | $ 5,825 | $ 11,029 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Finished products | $ 5,458 | $ 3,157 |
Feedstock, additives and chemicals | 3,440 | 317 |
Inventories | $ 8,898 | $ 3,474 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |||
Building and improvements | $ 18,361 | $ 17,994 | |
Plant and equipment | 1,909,519 | 1,855,833 | |
Other | 107,656 | 106,078 | |
Property, plant and equipment, gross | 2,035,536 | 1,979,905 | |
Less: Accumulated depreciation | (1,022,750) | (971,476) | |
Property, plant and equipment, net, before construction in progress | 1,012,786 | 1,008,429 | |
Construction in progress | 30,753 | 42,248 | |
Property, plant and equipment, net | 1,043,539 | 1,050,677 | |
Depreciation expense | $ 91,852 | $ 90,768 | $ 89,454 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Gross | $ 5,814 | $ 5,814 | |
Rate used to discount future cash flows for goodwill impairment test | 880.00% |
Deferred Charges and Other As_3
Deferred Charges and Other Assets (Schedule Of Intangible and Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets [Abstract] | |||
Turnaround costs, net | $ 146,942 | $ 32,273 | |
Other | 3,193 | 4,419 | |
Total deferred charges and other assets | 150,135 | 36,692 | |
Other Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $ 16,962 | $ 12,386 | $ 17,866 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other assets amortization period | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other assets amortization period | 15 years |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | Mar. 29, 2019 | Apr. 29, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 01, 2017 | Aug. 04, 2014 |
Related Party Transaction [Line Items] | |||||||
Long-term debt | $ 399,674 | $ 399,674 | |||||
Proceeds from debt payable to Westlake | $ 0 | $ 0 | $ 123,511 | ||||
Weighted average interest rate on all long-term debt | 2.13% | 2.23% | |||||
Senior Unsecured Revolving Credit Facility | OpCo Revolver | |||||||
Related Party Transaction [Line Items] | |||||||
Long-term debt | $ 22,619 | $ 22,619 | |||||
Senior Unsecured Revolving Credit Facility | MLP Revolver | |||||||
Related Party Transaction [Line Items] | |||||||
Long-term debt | $ 377,055 | $ 377,055 | |||||
Limited Partner | Senior Unsecured Revolving Credit Facility | OpCo Revolver | LIBOR | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 2.00% | ||||||
Minimum | Limited Partner | Line of Credit | MLP Revolver | LIBOR | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 2.00% | ||||||
Westlake | MLP Revolver | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000 | $ 600,000 | |||||
Westlake | Limited Partner | OpCo Revolver | Westlake Chemical OpCo LP | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum borrowing capacity | $ 600,000 | ||||||
Westlake | Limited Partner | Line of Credit | OpCo Revolver | Westlake Chemical OpCo LP | LIBOR | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 2.00% | ||||||
Westlake | Limited Partner | Line of Credit | MLP Revolver | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum consolidated leverage ratio during one year following acquisitions | 5.50 | ||||||
Leverage capital ratio required during other periods | 4.50 | ||||||
Westlake | Minimum | Limited Partner | Line of Credit | MLP Revolver | LIBOR | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 2.00% | ||||||
Westlake | Maximum | Limited Partner | Line of Credit | MLP Revolver | LIBOR | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 3.00% | ||||||
Westlake Chemical OpCo LP | Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Amount paid to purchase additional limited partner interest | $ 201,445 | $ 135,341 | |||||
Additional ownership interest | 4.50% | 2.70% | |||||
Proceeds from debt payable to Westlake | $ 123,511 |
Distributions and Net Income _3
Distributions and Net Income Per Limited Partner Unit (Narrative) (Details) - Common and Subordinated units - Cash Distribution - $ / shares | Jan. 24, 2022 | Dec. 31, 2021 |
Distributions [Line Items] | ||
Minimum quarterly distribution per unit (usd per share) | $ 1.2938 | |
Subsequent Event | ||
Distributions [Line Items] | ||
Distribution declared per unit (usd per share) | $ 0.4714 |
Distributions and Net Income _4
Distributions and Net Income Per Limited Partner Unit (Incentive Distribution Rights) (Details) | 12 Months Ended |
Dec. 31, 2021$ / shares | |
Above $1.2938 up to $1.4063 | Unitholders | |
Distribution Made to Limited Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 85.00% |
Above $1.2938 up to $1.4063 | IDR Holders | |
Distribution Made to Limited Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 15.00% |
Above $1.4063 up to $1.6875 | Unitholders | |
Distribution Made to Limited Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 75.00% |
Above $1.4063 up to $1.6875 | IDR Holders | |
Distribution Made to Limited Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 25.00% |
Above $1.6875 | Unitholders | |
Distribution Made to Limited Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 50.00% |
Above $1.6875 | IDR Holders | |
Distribution Made to Limited Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 50.00% |
Minimum | Above $1.2938 up to $1.4063 | |
Distribution Made to Limited Partner [Line Items] | |
Quarterly distribution per unit threshold (usd per share) | $ 1.2938 |
Minimum | Above $1.4063 up to $1.6875 | |
Distribution Made to Limited Partner [Line Items] | |
Quarterly distribution per unit threshold (usd per share) | 1.4063 |
Minimum | Above $1.6875 | |
Distribution Made to Limited Partner [Line Items] | |
Quarterly distribution per unit threshold (usd per share) | 1.6875 |
Maximum | Above $1.2938 up to $1.4063 | |
Distribution Made to Limited Partner [Line Items] | |
Quarterly distribution per unit threshold (usd per share) | 1.4063 |
Maximum | Above $1.4063 up to $1.6875 | |
Distribution Made to Limited Partner [Line Items] | |
Quarterly distribution per unit threshold (usd per share) | $ 1.6875 |
Distributions and Net Income _5
Distributions and Net Income Per Limited Partner Unit (Income In Excess Of Distribution) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Limited partners' interest in net income subsequent to IPO | $ 82,547 | $ 66,167 | $ 60,981 |
Limited partners' distribution declared on common units | 66,388 | 66,365 | 64,718 |
Net income in excess of distribution (Distribution in excess of net income) | 16,159 | (198) | (3,737) |
Common units | |||
Limited partners' interest in net income subsequent to IPO | 82,547 | 66,167 | 60,981 |
Limited partners' distribution declared on common units | 66,388 | 66,365 | 64,718 |
Net income in excess of distribution (Distribution in excess of net income) | 16,159 | (198) | (3,737) |
IDR Holders | |||
Limited partners' interest in net income subsequent to IPO | 0 | 0 | 0 |
Distributions declared with respect to the incentive distribution rights | 0 | 0 | 0 |
Net income in excess of distribution (Distribution in excess of net income) | $ 0 | $ 0 | $ 0 |
Distributions and Net Income _6
Distributions and Net Income Per Limited Partner Unit (Basic and Diluted Income Per Limited Partner Unit) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Limited Partners' Capital Account [Line Items] | |||
Distribution | $ 66,388 | $ 66,365 | $ 64,718 |
Net income in excess of distribution (Distribution in excess of net income) | 16,159 | (198) | (3,737) |
Limited partners' interest in net income subsequent to IPO | $ 82,547 | $ 66,167 | $ 60,981 |
Weighted average units outsanding: | |||
Basic and diluted (units) | 35,206,333 | 35,195,271 | 34,488,058 |
IDR Holders | |||
Limited Partners' Capital Account [Line Items] | |||
Distributions declared with respect to the incentive distribution rights | $ 0 | $ 0 | $ 0 |
Net income in excess of distribution (Distribution in excess of net income) | 0 | 0 | 0 |
Limited partners' interest in net income subsequent to IPO | 0 | 0 | 0 |
Common units | |||
Limited Partners' Capital Account [Line Items] | |||
Distribution | 66,388 | 66,365 | 64,718 |
Net income in excess of distribution (Distribution in excess of net income) | 16,159 | (198) | (3,737) |
Limited partners' interest in net income subsequent to IPO | $ 82,547 | $ 66,167 | $ 60,981 |
Weighted average units outsanding: | |||
Basic and diluted (units) | 35,206,333 | 35,195,271 | 34,488,058 |
Net Income (Loss), Per Outstanding Limited Partnership Unit, Basic, Net of Tax | $ 2.34 | $ 1.88 | $ 1.77 |
Distributions and Net Income _7
Distributions and Net Income Per Limited Partner Unit (Distributions per common unit) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Distributions per common unit [Abstract] | |||
Distributions per common unit | $ 1.8856 | $ 1.8856 | $ 1.8005 |
Partners' Equity (Incentive Dis
Partners' Equity (Incentive Distribution Rights) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 29, 2019 | Oct. 04, 2018 | Aug. 04, 2014 |
Class of Stock [Line Items] | |||
Partners Units, Maximum Aggregate Offering Amount, ATM | $ 50,000 | ||
Limited Partner | |||
Class of Stock [Line Items] | |||
Number of units sold in public offering | 2,940,818 | 12,937,500 | |
Partners' Capital Account, Units, Sold in Public Offering, Price per Unit | $ 21.40 | ||
Affiliated Entity | |||
Class of Stock [Line Items] | |||
Partners' Capital Account, Units, Sold to Related Party | 1,401,869 |
Related Party Transactions (Sal
Related Party Transactions (Sales to Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||
Net sales - Westlake | $ 1,026,586 | $ 888,245 | $ 937,625 |
Buyer deficiency fee | 51,395 | $ 69,555 | |
Shortfall fees | $ 58,906 |
Related Party Transactions (Cos
Related Party Transactions (Cost of Sales from Related Parties) (Details) - Affiliated Entity - Westlake - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Feedstock purchased from Westlake and included in cost of sales | $ 404,359 | $ 255,910 | $ 366,031 |
Other charges from Westlake and included in cost of sales | 130,541 | 103,273 | 106,564 |
Total | $ 534,900 | $ 359,183 | $ 472,595 |
Related Party Transactions (Ser
Related Party Transactions (Services from Related Parties Included in SG&A Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Services received from Westlake and included in selling, general and administrative expenses | $ 31,018 | $ 25,895 | $ 29,278 |
Affiliated Entity | Westlake | |||
Related Party Transaction [Line Items] | |||
Services received from Westlake and included in selling, general and administrative expenses | $ 28,577 | $ 22,162 | $ 26,946 |
Related Party Transactions (Goo
Related Party Transactions (Goods and Services from Related Parties that have been Capitalized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Affiliated Entity | Westlake | |||
Related Party Transaction [Line Items] | |||
Goods and services purchased from Westlake and capitalized as assets | $ 16,318 | $ 1,736 | $ 2,503 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Receivable under the Investment Management Agreement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
IMA, Partnership earned amount added to market rate, basis points | five | ||
Receivable under the Investment Management Agreement—Westlake Chemical Corporation ("Westlake") | $ 106,243 | $ 123,228 | |
Westlake | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Interest earned related to the IMA | 296 | 932 | $ 3,289 |
Westlake | Accrued Liabilities | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Accrued interest included in receivable under IMA | $ 71 | $ 56 |
Related Party Transactions (Acc
Related Party Transactions (Accounts Receivable from and Accounts Payable to Related Parties) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Accounts receivable, net—Westlake | $ 142,791 | $ 108,028 |
Accounts payable—Westlake | $ 10,796 | $ 7,855 |
Related Party Transactions (Deb
Related Party Transactions (Debt Payable to Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Interest on related party debt payable | $ 8,816 | $ 12,038 | $ 19,623 |
Interest capitalized | 0 | 175 | |
Long-term debt payable to Westlake | 399,674 | 399,674 | |
Accrued Liabilities | Affiliated Entity | Westlake | |||
Related Party Transaction [Line Items] | |||
Accrued interest on related party debt | $ 2,176 | $ 2,336 | $ 4,187 |
Related Party Transactions (Gen
Related Party Transactions (General) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 04, 2014 | |
Related Party Transaction [Line Items] | ||||
Income taxes paid | $ 676 | $ 709 | $ 655 | |
Affiliated Entity | Reimbursement to Parent for State Tax | Westlake | ||||
Related Party Transaction [Line Items] | ||||
Income taxes paid | $ 186 | $ 279 | $ 293 | |
Investee | Westlake | Site Lease Agreement | Westlake Chemical OpCo LP | ||||
Related Party Transaction [Line Items] | ||||
Term of operating lease | 50 years | |||
Revenue Benchmark | Customer Concentration Risk | Westlake | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Concentration Risk, Percentage | 84.50% | 91.90% | 85.90% |
Related Party Transactions Re_2
Related Party Transactions Related Party Transactions (Related Party Leases) (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 04, 2014 | |
Related Party Transaction [Line Items] | ||||
Operating Lease, Expense | $ 3,037,000 | $ 3,038,000 | $ 2,343,000 | |
Westlake Chemical OpCo LP | Westlake | Investee | Site Lease Agreement | ||||
Related Party Transaction [Line Items] | ||||
Site lease agreement, number | 2 | |||
Term of operating lease | 50 years | |||
Site lease expense | $ 1 |
Related Party Transactions Re_3
Related Party Transactions Related Party Transactions (Major Customer and Credit Risk) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Benchmark | Westlake | Customer Concentration Risk | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Concentration Risk, Percentage | 84.50% | 91.90% | 85.90% |
Unit-based Compensation (Detail
Unit-based Compensation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)director$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Jul. 15, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 7 months 13 days | |||
Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 4,638 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 542 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance | 20,439 | 13,634 | ||
Granted | 11,178 | 20,439 | ||
Vested | (20,439) | (13,634) | ||
Ending balance | 11,178 | 20,439 | 13,634 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted Average Fair Value, beginning balance (usd per share) | $ / shares | $ 22.33 | $ 23.24 | ||
Weighted Average Grant Date Fair Value, Granted (usd per share) | $ / shares | 26.97 | 20.17 | ||
Weighted Average Grant Date Fair Value, Vested (usd per share) | $ / shares | 26.54 | 19.08 | ||
Weighted Average Fair Value, ending balance (usd per share) | $ / shares | $ 22.90 | $ 22.33 | $ 23.24 | |
Westlake Chemical Partners LP Long-Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units authorized | 1,270,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Total units available for grant | 1,219,956 | |||
Unrecognized compensation cost | $ | $ 182 | |||
Westlake Chemical Partners LP Long-Term Incentive Plan | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Total compensation cost | $ | $ 436 | $ 375 | $ 387 | |
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Number of Directors That Retired in Period | director | 1 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Carrying And Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 399,674 | $ 399,674 |
OpCo Revolver | Senior Unsecured Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 22,619 | 22,619 |
Long-term debt, fair value | 23,276 | 23,301 |
MLP Revolver | Senior Unsecured Revolving Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 377,055 | 377,055 |
Long-term debt, fair value | $ 383,574 | $ 383,284 |
Income Taxes (Schedule Of The P
Income Taxes (Schedule Of The Provision For (Benefit From) Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
State and local | $ 561 | $ 671 | $ 743 |
State and local | (12) | (107) | (15) |
Total provision | $ 549 | $ 564 | $ 728 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Taxes Computed At The Statutory Rate To Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Provision for federal income tax, at statutory rate | $ 84,406 | $ 71,755 | $ 70,062 |
State income tax provision, net of federal income tax effect | 549 | 564 | 728 |
Partnership income not subject to entity-level federal income tax | (84,406) | (71,755) | (70,062) |
Total provision | $ 549 | $ 564 | $ 728 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance sheet classifications | ||
Property, plant and equipment | $ (1,335) | $ (1,487) |
Turnaround costs | (195) | (55) |
Total deferred tax liabilities | (1,530) | (1,542) |
Noncurrent deferred tax liability | $ (1,530) | $ (1,542) |
Supplemental Information (Accru
Supplemental Information (Accrued Liabilities and Other Income, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities | ||
Accrued and other liabilities | $ 60,895 | $ 18,768 |
Accrued turnaround costs | 40,250 | 0 |
Accrual related to capital expenditures | 7,491 | 2,286 |
Accrued maintenance expense | $ 5,597 | $ 3,905 |
Supplemental Information (Cash
Supplemental Information (Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Capital expenditures incurred but not yet paid | $ 14,415 | $ 6,854 | $ 4,364 |
Interest paid | 8,976 | 13,887 | 20,837 |
Income taxes paid | 676 | 709 | 655 |
State and Local Jurisdiction | |||
Related Party Transaction [Line Items] | |||
Income taxes paid | 490 | 430 | 362 |
Reimbursement to Parent for State Tax | Westlake | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Income taxes paid | $ 186 | $ 279 | $ 293 |