Westlake Chemical Partners LP Announces Third Quarter 2016 Earnings

Westlake Chemical Partners LP (NYSE: WLKP) (the "Partnership") today reported net income attributable to the Partnership of $8.7 million, or $0.32 per limited partner unit, for the three months ended September 30, 2016, a decrease of $1.4 million compared to third quarter 2015 net income attributable to the Partnership of $10.1 million, or $0.37 per limited partner unit. The decrease in net income attributable to the Partnership as compared to the prior-year period was primarily due to lower operating rates at Westlake Chemical OpCo LP's ("OpCo") Petro 1 facility in Lake Charles, Louisiana due to the planned turnaround and expansion project, which was completed in July. The third quarter 2016 results were also negatively impacted by lost production as a result of an unplanned outage at OpCo's Calvert City, Kentucky facility.

The third quarter 2016 net income attributable to the Partnership of $8.7 million, or $0.32 per limited partner unit, decreased by $0.6 million from the second quarter 2016 net income attributable to the Partnership of $9.3 million, or $0.34 per limited partner unit. The decrease in net income was due to a decrease in sales to Westlake Chemical ("Westlake") associated with certain cost recovery provisions in the ethylene sales agreement between OpCo and Westlake, which was partially offset by increased production at OpCo's Petro 1 and Calvert City facilities.

On October 31, 2016, the Board of Directors of Westlake Chemical Partners GP LLC, the general partner of the Partnership, announced a quarterly distribution with respect to the third quarter of 2016 of $0.3353 per limited partner unit to be payable on November 29, 2016 to unit and IDR holders of record as of November 14, 2016. The third quarter 2016 distribution increased 12.0% compared to the third quarter 2015 distribution and 2.88% compared to the second quarter 2016 distribution.

OpCo's sales agreement with Westlake is designed to provide for stable and predictable cash flows. The sales agreement provides that 95% of OpCo's ethylene output is sold to Westlake for a cash margin of $0.10 per pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures. Under the ethylene sales agreement with Westlake, Westlake's obligation to purchase the annual minimum commitment under the ethylene sales agreement, which is measured at year end, is not reduced for the first 45 days following a force majeure event, such as the unplanned outage at Calvert City that began in June 2016.

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