Westlake Chemical Partners reported net income attributable to the Partnership in the third quarter of 2021 of $12.8 million, or $0.36 per limited partner unit, a decrease of $5.7 million compared to third quarter 2020 net income attributable to the Partnership of $18.5 million.

The decrease in net income was a result of reduced sales to Westlake attributable to a buyer deficiency fee from Westlake Chemical Corporation (Westlake Chemical) that was recognized in the third quarter of 2020 in connection with Hurricanes Laura and Delta as well as the commencement of the planned turnaround of Westlake Chemical OpCo (OpCo) Petro 2 facility and associated planned production outage for the turnaround of Petro 2. Cash flows from operating activities in the third quarter of 2021 were $99.5 million, a decrease of $17.7 million compared to third quarter 2020 cash flows from operating activities of $117.2 million.

This decrease in cash flows from operating activities was primarily due to lower earnings. For the three months ended September 30, 2021, MLP distributable cash flow of $13.0 million decreased by $8.2 million from third quarter 2020 MLP distributable cash flow of $21.2 million. The decrease in operating cash flows and MLP distributable cash flow was primarily attributable to lower earnings at OpCo and higher maintenance costs.

On November 1, 2021, the Partnership announced that the Board of Directors of Westlake Chemical Partners GP had approved a quarterly distribution for the third quarter of 2021 of $0.4714 per unit to be payable on November 29, 2021 to unitholders of record as of November 12, 2021, representing the 29th consecutive quarterly distribution to our unitholders. MLP distributable cash flow provided trailing twelve-month coverage of 1.06x the declared distributions for the third quarter of 2021.

"We are working diligently to complete the turnaround of our Petro 2 facility and expect to restart the facility in December. The Partnership continues to see strong consumer markets for construction materials and packaging, which drove downstream demand for ethylene," said Albert Chao, President and Chief Executive Officer. "As we look ahead we are seeing sustained strength in our business and the demand for downstream derivatives. The Partnership is well positioned to provide consistent cash flows while continuing to pay a healthy distribution. We are optimistic about the future and the value we can deliver to our unitholders."

OpCo's Ethylene Sales Agreement with Westlake Chemical is designed to provide for stable and predictable cash flows. The agreement provides that 95% of OpCo's ethylene production is sold to Westlake Chemical for a cash margin of $0.10 per pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures.