Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 02, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | WESTLAKE CHEMICAL PARTNERS LP | ||
Entity Central Index Key | 1604665 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $0 | ||
Common units [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 14,373,615 | ||
Subordinated units [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,686,115 |
Combined_and_Consolidated_Bala
Combined and Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $133,750 | $0 |
Accounts receivable, net—Westlake Chemical Corporation (Westlake) | 18,529 | |
Accounts receivable, net—third parties | 37,520 | |
Inventories | 6,634 | |
Prepaid expenses and other current assets | 212 | |
Deferred income taxes | 0 | |
Total current assets | 196,645 | |
Property, plant and equipment, net | 842,057 | |
Equity investment | 0 | |
Other assets, net | ||
Goodwill and intangible assets, net | 5,814 | |
Deferred charges and other assets | 51,919 | |
Total other assets, net | 57,733 | |
Total assets | 1,096,435 | |
Current liabilities | ||
Accounts payable—Westlake | 7,470 | |
Accounts payable—third parties | 12,614 | |
Accrued liabilities | 11,900 | |
Total current liabilities | 31,984 | |
Long-term debt payable to Westlake | 227,638 | |
Deferred income taxes | 1,848 | |
Other liabilities | 15 | |
Total liabilities | 261,485 | |
Commitments and contingencies (Notes 9 and 19) | ||
NET INVESTMENT | ||
Net investment | 0 | |
Total Westlake Chemical Partners LP partners' capital | 87,524 | |
Noncontrolling interest in Westlake Chemical OpCo LP (OpCo) | 747,426 | |
Total equity | 834,950 | 455,432 |
Total liabilities and equity | 1,096,435 | |
Predecessor [Member] | ||
Current assets | ||
Cash and cash equivalents | 0 | |
Accounts receivable, net—Westlake Chemical Corporation (Westlake) | 0 | |
Accounts receivable, net—third parties | 71,812 | |
Inventories | 116,377 | |
Prepaid expenses and other current assets | 257 | |
Deferred income taxes | 4,448 | |
Total current assets | 192,894 | |
Property, plant and equipment, net | 762,972 | |
Equity investment | 10,411 | |
Other assets, net | ||
Goodwill and intangible assets, net | 5,873 | |
Deferred charges and other assets | 69,324 | |
Total other assets, net | 75,197 | |
Total assets | 1,041,474 | |
Current liabilities | ||
Accounts payable—Westlake | 0 | |
Accounts payable—third parties | 122,564 | |
Accrued liabilities | 26,688 | |
Total current liabilities | 149,252 | |
Long-term debt payable to Westlake | 252,973 | |
Deferred income taxes | 182,855 | |
Other liabilities | 962 | |
Total liabilities | 586,042 | |
Commitments and contingencies (Notes 9 and 19) | ||
NET INVESTMENT | ||
Net investment | 455,432 | |
Total Westlake Chemical Partners LP partners' capital | 455,432 | |
Noncontrolling interest in Westlake Chemical OpCo LP (OpCo) | 0 | |
Total equity | 0 | 455,432 |
Total liabilities and equity | 1,041,474 | |
Limited Partner [Member] | Common units [Member] | Public [Member] | ||
NET INVESTMENT | ||
Limited partners' capital | 290,377 | |
Total equity | 290,377 | |
Limited Partner [Member] | Common units [Member] | Public [Member] | Predecessor [Member] | ||
NET INVESTMENT | ||
Limited partners' capital | 0 | |
Limited Partner [Member] | Common units [Member] | Westlake [Member] | ||
NET INVESTMENT | ||
Limited partners' capital | 4,038 | |
Total equity | 4,038 | |
Limited Partner [Member] | Common units [Member] | Westlake [Member] | Predecessor [Member] | ||
NET INVESTMENT | ||
Limited partners' capital | 0 | |
Limited Partner [Member] | Subordinated units [Member] | Westlake [Member] | ||
NET INVESTMENT | ||
Limited partners' capital | 35,681 | |
Total equity | 35,681 | |
Limited Partner [Member] | Subordinated units [Member] | Westlake [Member] | Predecessor [Member] | ||
NET INVESTMENT | ||
Limited partners' capital | 0 | |
General Partner [Member] | Westlake [Member] | ||
NET INVESTMENT | ||
General partner—Westlake | -242,572 | |
Total equity | -242,572 | |
General Partner [Member] | Westlake [Member] | Predecessor [Member] | ||
NET INVESTMENT | ||
General partner—Westlake | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
Common units [Member] | Westlake [Member] | ||
Units issued | 1,436,115 | 0 |
Units outstanding | 1,436,115 | 0 |
Common units [Member] | Public [Member] | ||
Units issued | 12,937,500 | 0 |
Units outstanding | 12,937,500 | 0 |
Subordinated units [Member] | Westlake [Member] | ||
Units issued | 12,686,115 | 0 |
Units outstanding | 12,686,115 | 0 |
Combined_and_Consolidated_Stat
Combined and Consolidated Statements of Operations (USD $) | 5 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales - Westlake | $1,292,089 | |||
Net co-products, ethylene and feedstock sales—third parties | 457,611 | |||
Net sales | 1,749,700 | |||
Cost of sales | 1,003,888 | |||
Gross profit | 745,812 | |||
Selling, general and administrative expenses | 29,256 | |||
Income from operations | 716,556 | |||
Other income (expense) | ||||
Interest expense—Westlake | -10,499 | |||
Other income, net | 3,151 | |||
Income before income taxes | 709,208 | |||
Provision for income taxes | 1,065 | 199,388 | ||
Net income | 148,486 | 509,820 | 546,546 | 395,920 |
Less: Net income attributable to noncontrolling interest in OpCo | 134,909 | |||
Limited partners' interest in net income subsequent to IPO | 13,577 | |||
Net income attributable to Westlake Chemical Partners LP subsequent to initial public offering per limited partner unit (basic and diluted) | ||||
Income per limited partner unit (usd per unit) | $0.50 | |||
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (units) | 27,059,730 | |||
Common units [Member] | ||||
Other income (expense) | ||||
Limited partners' interest in net income subsequent to IPO | 7,213 | |||
Net income attributable to Westlake Chemical Partners LP subsequent to initial public offering per limited partner unit (basic and diluted) | ||||
Income per limited partner unit (usd per unit) | $0.50 | |||
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (units) | 14,373,615 | |||
Subordinated units [Member] | ||||
Other income (expense) | ||||
Limited partners' interest in net income subsequent to IPO | 6,364 | |||
Net income attributable to Westlake Chemical Partners LP subsequent to initial public offering per limited partner unit (basic and diluted) | ||||
Income per limited partner unit (usd per unit) | $0.50 | |||
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (units) | 12,686,115 | |||
Public [Member] | Common units [Member] | ||||
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (units) | 12,937,500 | |||
Westlake [Member] | Common units [Member] | ||||
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (units) | 1,436,115 | |||
Westlake [Member] | Subordinated units [Member] | ||||
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (units) | 12,686,115 | |||
Predecessor [Member] | ||||
Net sales - Westlake | 1,603,043 | 1,507,501 | ||
Net co-products, ethylene and feedstock sales—third parties | 524,704 | 741,597 | ||
Net sales | 2,127,747 | 2,249,098 | ||
Cost of sales | 1,255,140 | 1,613,446 | ||
Gross profit | 872,607 | 635,652 | ||
Selling, general and administrative expenses | 25,451 | 24,103 | ||
Income from operations | 847,156 | 611,549 | ||
Other income (expense) | ||||
Interest expense—Westlake | -8,032 | -8,937 | ||
Other income, net | 7,701 | 4,186 | ||
Income before income taxes | 846,825 | 606,798 | ||
Provision for income taxes | 300,279 | 210,878 | ||
Net income | $546,546 | $395,920 |
Combined_and_Consolidated_Stat1
Combined and Consolidated Statements of Changes in Equity (USD $) | Total | Noncontrolling Interest in OpCo [Member] | Westlake [Member] | Common units [Member] | Common units [Member] | Subordinated units [Member] | Predecessor [Member] |
In Thousands | General Partner [Member] | Public [Member] | Westlake [Member] | Westlake [Member] | |||
Limited Partner [Member] | Limited Partner [Member] | Limited Partner [Member] | |||||
Equity, beginning balance at Dec. 31, 2011 | $216,705 | $216,705 | |||||
Net income | 395,920 | 395,920 | |||||
Net distributions to Westlake | -338,813 | -338,813 | |||||
Equity, ending balance at Dec. 31, 2012 | 273,812 | 273,812 | |||||
Net income | 546,546 | 546,546 | |||||
Net distributions to Westlake | -603,526 | -603,526 | |||||
Contribution of debt payable to Westlake into net investment | 238,600 | 238,600 | |||||
Equity, ending balance at Dec. 31, 2013 | 455,432 | 455,432 | |||||
Net income | 361,334 | 361,334 | |||||
Net distributions to Westlake | -448,101 | -448,101 | |||||
Predecessor net liabilities not assumed by OpCo | 239,706 | 239,706 | |||||
Equity, ending balance at Aug. 03, 2014 | 608,371 | 608,371 | |||||
Net income | 148,486 | 134,909 | 6,493 | 720 | 6,364 | ||
Net distributions to Westlake | -4,611 | -2,204 | -245 | -2,162 | |||
Allocation of net investment to unitholders | 573,329 | 3,563 | 31,479 | -608,371 | |||
Proceeds from initial public offering, net of finance and other offering costs | 286,088 | 286,088 | |||||
Distribution to the noncontrolling interest in OpCo | -151,729 | -151,729 | |||||
Purchase of additional interest in OpCo | 242,572 | -242,572 | |||||
Quarterly distribution for the period from August 4, 2014 to September 30, 2014 to noncontrolling interest retained in OpCo by Westlake | -51,655 | -51,655 | |||||
Equity, ending balance at Dec. 31, 2014 | $834,950 | $747,426 | ($242,572) | $290,377 | $4,038 | $35,681 | $0 |
Combined_and_Consolidated_Stat2
Combined and Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $509,820 | $546,546 | $395,920 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 77,611 | ||
Provision for doubtful accounts | 65 | ||
Loss from disposition of fixed assets | 1,544 | ||
Deferred income taxes | 8,608 | ||
Income from equity method investment, net of dividends | 1,073 | ||
Changes in operating assets and liabilities | |||
Accounts receivable - third parties | -31,551 | ||
Net accounts receivable - Westlake | -11,059 | ||
Inventories | 24,686 | ||
Prepaid expenses and other current assets | -624 | ||
Accounts payable | -4,915 | ||
Accrued and other liabilities | 20,166 | ||
Other, net | 8,588 | ||
Net cash provided by operating activities | 604,012 | ||
Cash flows from investing activities | |||
Additions to property, plant and equipment | -202,823 | ||
Settlements of derivative instruments | -133 | ||
Net cash used for investing activities | -202,956 | ||
Cash flows from financing activities | |||
Net distributions to Westlake prior to initial public offering | -448,101 | ||
Repayment of debt payable to Westlake with proceeds from the initial public offering | -78,940 | ||
Net proceeds from issuance of common units | 286,088 | ||
Proceeds from initial public offering distributed to Westlake | -151,729 | ||
Proceeds from debt payable to Westlake | 181,642 | ||
Quarterly distribution for the period from August 4, 2014 to September 30, 2014 to noncontrolling interest retained in OpCo by Westlake | -51,655 | ||
Quarterly distributions to unitholders | -4,611 | ||
Net cash used for financing activities | -267,306 | ||
Net increase in cash and cash equivalents | 133,750 | ||
Cash and cash equivalents at beginning of period | 0 | ||
Cash and cash equivalents at end of period | 133,750 | 0 | |
Predecessor [Member] | |||
Cash flows from operating activities | |||
Net income | 546,546 | 395,920 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 73,463 | 64,257 | |
Provision for doubtful accounts | 40 | 82 | |
Loss from disposition of fixed assets | 1,905 | 2,834 | |
Deferred income taxes | 37,054 | -8,096 | |
Income from equity method investment, net of dividends | 402 | 277 | |
Changes in operating assets and liabilities | |||
Accounts receivable - third parties | 14,352 | 13,612 | |
Net accounts receivable - Westlake | 0 | ||
Inventories | -6,057 | 53,061 | |
Prepaid expenses and other current assets | -150 | 164 | |
Accounts payable | 7,362 | -34,937 | |
Accrued and other liabilities | -20,852 | 17,717 | |
Other, net | -51,556 | -8,070 | |
Net cash provided by operating activities | 602,509 | 496,821 | |
Cash flows from investing activities | |||
Additions to property, plant and equipment | -223,130 | -158,440 | |
Settlements of derivative instruments | -6,920 | 432 | |
Net cash used for investing activities | -230,050 | -158,008 | |
Cash flows from financing activities | |||
Net distributions to Westlake prior to initial public offering | -603,526 | -338,813 | |
Repayment of debt payable to Westlake with proceeds from the initial public offering | 0 | 0 | |
Net proceeds from issuance of common units | 0 | 0 | |
Proceeds from initial public offering distributed to Westlake | 0 | 0 | |
Proceeds from debt payable to Westlake | 231,067 | 0 | |
Quarterly distribution for the period from August 4, 2014 to September 30, 2014 to noncontrolling interest retained in OpCo by Westlake | 0 | 0 | |
Quarterly distributions to unitholders | 0 | 0 | |
Net cash used for financing activities | -372,459 | -338,813 | |
Net increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 |
Description_Of_Business_And_Si
Description Of Business And Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Description Of Business And Significant Accounting Policies | Description of Business and Significant Accounting Policies | ||
Description of Business, Formation of Partnership and Initial Public Offering | |||
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 an 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% 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 a common carrier ethylene pipeline (collectively, the "Contributed Assets"). | |||
Unless the context otherwise requires, references in these financial statements to the "Predecessor" refer to Westlake Chemical Partners LP Predecessor, the Partnership's predecessor for accounting purposes and refer to the time periods prior to the IPO. References in these financial statements to the Partnership, OpCo and OpCo GP used in the present tense or prospectively refer to the period subsequent to the IPO. References to "Westlake" refer collectively to Westlake Chemical Corporation and its subsidiaries, other than the Partnership, OpCo and OpCo GP. | |||
Prior to the IPO, the Predecessor generated revenue predominantly by selling ethylene and ethylene co-products to Westlake and external customers. The Predecessor typically shipped ethylene, propylene and hydrogen via pipeline systems that connected its ethylene plants to Westlake and numerous third-party customers. The Predecessor transported its butadiene and pyrolysis gasoline by rail or truck. | |||
In connection with the IPO, 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. The Ethylene Sales Agreement has a 12-year initial term and a minimum commitment provision under which Westlake has agreed to purchase 95% of OpCo's planned ethylene production each year, subject to a maximum of 3.8 billion pounds per year. This agreement represents a long-term, minimum-purchase commitment by Westlake with variable pricing equal to OpCo's actual feedstock and natural gas costs and estimated other costs of producing ethylene, plus a fixed margin of $0.10 per pound, less revenue from associated co-products sales. Currently, the Partnership expects to sell 95% of its ethylene production to Westlake. For more information, see Note 2 to the combined and consolidated financial statements. | |||
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 continue to be 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. The Partnership's operations consist of one reportable segment: ethylene production. | |||
The Predecessor's operations consisted of the entire ethylene business of Westlake, including the activities of the Contributed Assets, as well as activities which were retained by Westlake. Ethylene business activities retained by Westlake include, but are not limited to, procuring feedstock, managing inventory and commodity risk and transporting ethylene from manufacturing facilities. The Partnership's operations consist of activities relating solely to the Contributed Assets. | |||
Basis of Presentation | |||
The accompanying combined and consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States. | |||
Financial information presented for the periods prior to the IPO consists of the Predecessor's combined financial position as of December 31, 2013, its results of operations, changes in equity and cash flows for the years ended December 31, 2013 and 2012. Financial information of the Predecessor is derived from the financial statements and accounting records of Westlake. Subsequent to the IPO, the Partnership's financial position, results of operations and cash flows consist of the consolidated activities and balances of the Partnership. The Partnership's consolidated financial statements include the accounts of the Partnership and its consolidated subsidiaries, including OpCo. | |||
For the year ended December 31, 2014, the results of operations, changes in equity and cash flows include the Partnership's consolidated results subsequent to the IPO and the Predecessor's combined results prior to the IPO. For these periods, the results of operations and cash flows are referred to as the Partnership's consolidated results and cash flows. | |||
The Partnership holds a 10.6% limited partner interest and the entire non-economic general partner interest in OpCo. The remaining 89.4% 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 89.4% is recorded as noncontrolling interest in the Partnership's consolidated financial statements. | |||
All financial information presented for the periods after the IPO represents the consolidated results of operations, financial position and cash flows of the Partnership. Financial information for the periods prior to the IPO represents the combined results of operations, financial position and cash flows of the Predecessor. The combined and consolidated financial statements were prepared as follows: | |||
• | The consolidated statement of operations for the year ended December 31, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through December 31, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014 and for the years ended December 31, 2013 and 2012. | ||
• | The consolidated balance sheet as of December 31, 2014 consists of the consolidated balances of the Partnership, while the combined balance sheet as of December 31, 2013 consists of the combined balances of the Predecessor. | ||
• | The consolidated statement of cash flows for the year ended December 31, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through December 31, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014 and for the years ended December 31, 2013 and 2012. | ||
• | The consolidated statement of changes in equity for the year ended December 31, 2014 consists of the combined activity for the Predecessor prior to August 4, 2014, and the consolidated activity for the Partnership at and subsequent to the IPO on August 4, 2014 through December 31, 2014. The combined statements of changes in equity for the years ended December 31, 2013 and 2012 consist entirely of the combined activity of the Predecessor. | ||
The combined statements of operations for the periods before August 4, 2014 include expense allocations for certain functions historically performed by Westlake and allocated to the ethylene business, including allocations of general corporate expenses related to finance, legal, information technology, human resources, communications, ethics and compliance, shared services, employee benefits and incentives and stock-based compensation. These allocations were based primarily on direct usage, when identifiable, with the remainder allocated on the basis of fixed assets, headcount or other measures. Management believes the assumptions underlying the combined financial statements, including the assumptions regarding the allocation of expenses from Westlake, are reasonable and reflect all costs related to the operations of the Predecessor, including those incurred by Westlake on behalf of the Predecessor. Nevertheless, the combined financial statements may not include all of the expenses that would have been incurred had the Predecessor been a stand-alone company during the periods presented and may not reflect its results of operations, financial position and cash flows had the Predecessor been a stand-alone company during the periods presented. | |||
With respect to the Predecessor, Westlake used a centralized approach to the cash management and financing of its operations. The cash generated by the Predecessor's operations was transferred to Westlake daily, and Westlake funded the Predecessor's operating and investing activities as needed. Accordingly, the cash and cash equivalents generated by the Predecessor's operations that were held by Westlake were not presented in its combined financial statements for any of the periods presented. The Predecessor reflected transfers of cash to and from Westlake's cash management system as a component of Net investment on its combined balance sheet, and as part of Net distributions to Westlake prior to the initial public offering on its combined statements of cash flows. | |||
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 | |||
The determination of the allowance for doubtful accounts 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 and specific collectibility analysis. The allowance for doubtful accounts 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 collectibility. | |||
Inventories | |||
Inventories primarily include product, material and supplies. Inventories are stated at the lower of cost or market. 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. Historical costs include expenditures for improvements and betterments that extend the useful lives of the assets. | |||
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 $2,638 for the period from August 4, 2014 to December 31, 2014. Repair and maintenance costs are charged to operations as incurred. | |||
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 | 25 | ||
Plant and equipment | 25 | ||
Ethylene pipeline | 35 | ||
Other | 10-Mar | ||
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 Intangible Assets | |||
The accounting guidance for goodwill and intangible assets requires that goodwill and indefinite-lived intangible assets are tested for impairment at least annually. Other intangible assets with finite lives are amortized over their estimated useful life and reviewed for impairment in accordance with the provisions of the accounting guidance. As of December 31, 2014, the Partnership's recorded goodwill was $5,814. See Note 8 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 three to six years. Deferred turnaround costs are presented as a component of other assets, net. The cash outflows related to these costs are included in operating activities in the consolidated statement of cash flows. | |||
Exchanges | |||
The Partnership enters into inventory exchange transactions with respect to ethylene. These exchanges are settled in like-kind quantities and are valued at lower of cost or market. The Predecessor entered into inventory exchange transactions with third parties, which involve fungible commodities. These exchanges are settled in like-kind quantities and are valued at lower of cost or market. Cost is determined using the FIFO method. | |||
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 persuasive evidence of an arrangement exists, products are delivered to the customer, the sales price is fixed or determinable, and collectibility is reasonably assured. Title and risk of loss passes to the customer upon delivery under executed customer purchase orders or contracts. Provisions for discounts, rebates and returns are provided for in the same period as the related sales are recorded. | |||
Net Income per Unit | |||
The accounting guidance for earnings per unit requires the Partnership to present basic earnings per unit and diluted earnings per unit. 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, subordinated units and incentive distribution rights outstanding. 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 and subordinated units. Diluted net income per limited partner unit is the same as basic net income per limited partner unit, as there were no potentially dilutive common or subordinated units outstanding as of December 31, 2014. During the periods presented prior to the IPO, the Predecessor was wholly owned by Westlake. Accordingly, the Predecessor has not presented net income per unit. | |||
Price Risk Management | |||
The accounting guidance for derivative instruments and hedging activities requires that the Partnership and the Predecessor 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. During the years presented, neither the Partnership nor the Predecessor had cash flow hedges. | |||
The Predecessor utilized commodity derivative instruments to reduce price risks by purchasing or selling futures on established exchanges. The Predecessor took both fixed and variable positions, depending upon anticipated future physical purchases and sales of these commodities. The fair value of derivative financial instruments was estimated using quoted market prices in active markets and observable market-based inputs or unobservable inputs that were corroborated by market data when active markets were not available. The Predecessor assessed both counterparty as well as its own nonperformance risk when measuring the fair value of derivative liabilities. The Predecessor did not consider its nonperformance risk to be significant. See Note 15 for a summary of the fair value of derivative instruments. The Partnership did not enter into such instruments since the date of the IPO on August 4, 2014. | |||
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. | |||
Fair Value of Financial Instruments | |||
The amounts reported in the combined and consolidated balance sheets for cash and cash equivalents, accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments. The fair value of the Partnership's senior unsecured revolving credit facility and OpCo's promissory notes payable to Westlake, which were assumed by OpCo in connection with the IPO (the "August 2013 Promissory Notes"), at December 31, 2014, approximates the fair value due to the variable nature of the interest rate. The fair value of financial instruments is estimated using quoted market prices in active markets and observable market-based inputs or unobservable inputs that are corroborated by market data when active markets are not available. See Note 15 for more information on the fair value of financial instruments. | |||
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 Predecessor's operating results were included in Westlake's consolidated U.S. federal and state income tax returns. Amounts presented in the combined financial statements prior to the IPO relate to income taxes that have been determined on a separate tax return basis, and the Predecessor's contribution to Westlake Chemical Corporation's net operating losses and tax credits have been included in the Predecessor's financial statements. The Predecessor utilized the liability method of accounting for deferred income taxes. Under the liability method, deferred tax assets or liabilities are recorded based upon temporary differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes. Deferred tax expense or benefit is the result of changes in the deferred tax assets and liabilities during the period. Valuation allowances were recorded against deferred tax assets when it was considered more likely than not that the deferred tax assets will not be realized on a separate tax return basis. | |||
Employee Benefit Plans | |||
The employees supporting the Predecessor's operations were employees of Westlake and its affiliates. Their payroll costs and employee benefit plan costs were charged to the Predecessor by Westlake. Westlake sponsors various employee pension and postretirement health and life insurance plans. The Predecessor was considered to have participated in multiemployer benefit plans of Westlake. As a participant in multiemployer benefit plans, the Predecessor recognized as expense in each period an allocation from Westlake, and the Predecessor did not recognize any employee benefit plan assets or liabilities except for accruals for contributions due. | |||
Segment Reporting | |||
The Partnership accounts for segment reporting in accordance with the Financial Accounting Standards Board guidance, which establishes standards for entities to report information about the operating segments and geographic areas in which they operate. 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. | |||
Net Investment | |||
In the combined balance sheets, Net investment represents Westlake's historical investment in the Predecessor, its accumulated net earnings after taxes, and the net effect of transactions with, and allocations from, Westlake. | |||
Other Assets | |||
Certain other assets (see Note 8) are amortized over periods ranging from five to 20 years using the straight-line method. | |||
Comprehensive Income | |||
The Partnership has reported no comprehensive income due to the absence of items of other comprehensive income in the years presented. |
Initial_Public_Offering
Initial Public Offering | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity [Abstract] | ||
Initial Public Offering | Initial Public Offering | |
Contributed Assets | ||
In connection with the IPO, the Partnership acquired a 10.6% interest in OpCo and a 100% interest in OpCo GP. OpCo owns the Contributed Assets. | ||
Other assets contributed to OpCo in conjunction with the IPO include the deferred turnaround costs associated with Lake Charles Olefins and Calvert City Olefins, co-products inventories, goodwill and other assets. Additionally, OpCo assumed the August 2013 Promissory Notes in the amount of $246,056. | ||
The Predecessor's combined financial statements reflect certain assets, liabilities and business activities that were retained by Westlake and, therefore, are not reflected in the Partnership's consolidated financial statements. Assets and liabilities which are reflected in the Predecessor's combined financial statements but which were retained by Westlake include working capital accounts, ethylene and other inventories, an equity interest in a pipeline joint venture, deferred federal income taxes, certain long-term debt payable to Westlake and other long-term liabilities. Ethylene business activities retained by Westlake include, but are not limited to, procuring feedstock, managing inventory and commodity risk and transporting ethylene from manufacturing facilities. See Note 17 for details of the Predecessor's net liabilities retained by Westlake. | ||
Initial Public Offering | ||
On July 30, 2014, the Partnership's common units began trading on the New York Stock Exchange under the ticker symbol "WLKP." On August 4, 2014, the Partnership completed the IPO of 12,937,500 common units at a price to the public of $24.00 per unit ($22.53 per unit net of underwriting discount), including 1,687,500 common units that were issued pursuant to the exercise in full of the underwriters' over-allotment option. | ||
In connection with the IPO, in exchange for Westlake's contribution of a 5.8% limited partner interest in OpCo and OpCo's general partner interest to the Partnership, Westlake received: | ||
• | 1,436,115 common units and 12,686,115 subordinated units; and | |
• | the Partnership's general partner interest and its incentive distribution rights. | |
The Partnership received net proceeds of $286,088 from the IPO, net of underwriting discounts, structuring fees and offering expenses of approximately $24,412. The Partnership used the net proceeds from the IPO to purchase an additional 4.8% limited partner interest in OpCo, resulting in the Partnership owning a 10.6% limited partner interest in OpCo. The Partnership recorded the incremental 4.8% limited partner interest in OpCo at its historical carrying value of $43,516 and the excess cash paid over historical carrying value of $242,572 as a decrease to the General partner—Westlake capital account. Accordingly, the Partnership's consolidated financial statements reflect the 89.4% limited partner interest in OpCo that was retained by Westlake as a noncontrolling interest. | ||
From the period beginning August 4, 2012 to July 31, 2013, Westlake incurred approximately $151,729 in capital expenditures (the "Pre-August 2013 Capex") with respect to the assets contributed to OpCo. The portion of these capital expenditures incurred before January 1, 2013 was accounted for as an adjustment to Net investment, as it was funded through equity. The portion of the capital expenditures incurred from January 1, 2013 through July 31, 2013 was accounted for as a liability and is reflected as such on the Predecessor's combined financial statements, and the associated liability was retained by Westlake in connection with the IPO. During the period from August 1, 2013 through August 3, 2014, Westlake funded capital expenditures of $246,056 related to the Contributed Assets under the terms of the August 2013 Promissory Notes. At the close of the IPO, the outstanding balance of the August 2013 Promissory Notes was $246,056. | ||
OpCo used the $286,088 it received from the Partnership in exchange for a 4.8% limited partner interest in OpCo to (1) establish a $55,419 turnaround reserve, (2) reimburse Westlake $151,729 for the Pre-August 2013 Capex, and (3) repay $78,940 of the August 2013 Promissory Notes assumed by OpCo. Immediately after the repayment, the outstanding indebtedness payable to Westlake under the August 2013 Promissory Notes was $167,116. | ||
Agreements with Westlake and Related Parties | ||
The agreements described below became effective on August 4, 2014, concurrent with the closing of the IPO. | ||
Ethylene Sales Agreement | ||
OpCo 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. | ||
The result of the fee structure is that OpCo should 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. 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 entered into a feedstock supply agreement with Westlake, pursuant to which Westlake agreed to sell 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 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 will be 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 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 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. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Revenue from Contracts with Customers | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update on a comprehensive new revenue recognition standard that will supersede the existing revenue recognition guidance. The new accounting guidance creates a framework by which an entity will allocate the transaction price to separate performance obligations and recognize revenue when each performance obligation is satisfied. Under the new standard, entities will be required to use judgment and make estimates, including identifying performance obligations in a contract, estimating the amount of variable consideration to include in the transaction price, allocating the transaction price to each separate performance obligation and determining when an entity satisfies its performance obligations. The standard allows for either "full retrospective" adoption, meaning that the standard is applied to all of the periods presented with a cumulative catch-up as of the earliest period presented, or "modified retrospective" adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up as of the current period. The accounting standard will be effective for reporting periods beginning after December 15, 2016. The Partnership is in the process of evaluating the impact that the new accounting guidance will have on its consolidated financial position, results of operations and cash flows. | |
Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern | |
In August 2014, the FASB issued an accounting standards update on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern. The new accounting guidance requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The accounting standard will be effective for reporting periods ending after December 15, 2016 and is not expected to have an impact on the Partnership's consolidated financial position, results of operations and cash flows. |
Financial_Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments |
Cash Equivalents | |
The Partnership had $40,003 of held-to-maturity securities with original maturities of three months or less, primarily consisting of corporate debt securities, classified as cash equivalents at December 31, 2014. The Partnership's investments in held-to-maturity securities are held at amortized cost, which approximates fair value. |
Accounts_ReceivableThird_Parti
Accounts Receivable—Third Parties | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivable, Net [Abstract] | |||||||||
Accounts Receivable—Third Parties | Accounts Receivable—Third Parties | ||||||||
Accounts receivable—third parties consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
Trade customers | $ | 37,514 | $ | 73,594 | |||||
Allowance for doubtful accounts | — | (2,105 | ) | ||||||
37,514 | 71,489 | ||||||||
Other | 6 | 323 | |||||||
Accounts receivable, net—third parties | $ | 37,520 | $ | 71,812 | |||||
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory, Net [Abstract] | |||||||||
Inventories | Inventories | ||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
Finished products | $ | 6,257 | $ | 21,330 | |||||
Feedstock, additives and chemicals | 377 | 80,407 | |||||||
Materials and supplies | — | 14,640 | |||||||
Inventories | $ | 6,634 | $ | 116,377 | |||||
Property_Plant_And_Equipment
Property, Plant And Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||
Property, Plant And Equipment | Property, Plant and Equipment | ||||||||
Property, plant and equipment consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
Land | $ | — | $ | 4,126 | |||||
Building and improvements | 14,961 | 32,941 | |||||||
Plant and equipment | 1,151,091 | 1,058,304 | |||||||
Other | 61,533 | 55,478 | |||||||
1,227,585 | 1,150,849 | ||||||||
Less: Accumulated depreciation | (550,568 | ) | (561,301 | ) | |||||
677,017 | 589,548 | ||||||||
Construction in progress | 165,040 | 173,424 | |||||||
Property, plant and equipment, net | $ | 842,057 | $ | 762,972 | |||||
Depreciation expense on property, plant and equipment of $60,004, $57,299 and $53,125 is included in cost of sales in the combined and consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. |
Other_Assets
Other Assets | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||||||||||
Other Assets | Other Assets | ||||||||||||||||||||||||||
Other assets consist of the following: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | Weighted | |||||||||||||||||||||||||
Predecessor | Average | ||||||||||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | Life | |||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||||||||
Technology | $ | — | $ | — | $ | — | $ | 9,618 | $ | (9,618 | ) | $ | — | ||||||||||||||
Goodwill | 5,814 | — | 5,814 | 5,814 | — | 5,814 | |||||||||||||||||||||
Other | — | — | — | 59 | — | 59 | |||||||||||||||||||||
Total intangible assets | 5,814 | — | 5,814 | 15,491 | (9,618 | ) | 5,873 | ||||||||||||||||||||
Turnaround costs | 96,835 | (51,536 | ) | 45,299 | 96,678 | (34,537 | ) | 62,141 | 5 | ||||||||||||||||||
Other | 8,662 | (2,042 | ) | 6,620 | 8,662 | (1,479 | ) | 7,183 | 15 | ||||||||||||||||||
Total deferred charges and | 105,497 | (53,578 | ) | 51,919 | 105,340 | (36,016 | ) | 69,324 | |||||||||||||||||||
other assets | |||||||||||||||||||||||||||
Other assets, net | $ | 111,311 | $ | (53,578 | ) | $ | 57,733 | $ | 120,831 | $ | (45,634 | ) | $ | 75,197 | |||||||||||||
Amortization expense on other assets of $17,607, $16,164 and $11,132 is included in the combined and consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
At December 31, 2014, there were no scheduled amortizations of intangible assets in the next five years. | |||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||
There was no change in the carrying amount of goodwill during 2014. | |||||||||||||||||||||||||||
The impairment test for the recorded goodwill was performed in October 2014 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 nine-year forecast, from 2015 to 2023, to reflect the cyclicality of the Partnership's business. The forecast was based on (1) prices and spreads projected by IHS Chemical, a chemical industry organization offering market and business advisory services for the chemical market, for the same period, and (2) estimates by management, including their strategic and operational plans. Other significant assumptions used in the discounted cash flow projection included sales volumes based on current 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. Under the discounted cash flow methodology, even if the fair value of OpCo decreased by 10%, the carrying value of OpCo would not exceed its fair value. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Long-Term Debt | ||||||||
Long-term debt consists of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
2006 Pipeline Note (variable interest rate of prime plus 0.25%, original scheduled | $ | — | $ | 14,400 | |||||
maturity of November 30, 2016) | |||||||||
August 2013 Promissory Notes (variable interest rate of prime plus 1.5%, original | 167,116 | 238,573 | |||||||
scheduled maturity of August 1, 2023) | |||||||||
Senior unsecured revolving credit facility (variable interest rate of LIBOR plus 3.0%, | 60,522 | — | |||||||
original scheduled maturity of August 4, 2019) | |||||||||
Long-term debt payable to Westlake | $ | 227,638 | $ | 252,973 | |||||
In 2013, the August 2013 Promissory Notes were issued for capital expenditures incurred by Westlake on behalf of the Predecessor's operations. Proceeds drawn under the August 2013 Promissory Notes during 2014 were used to fund capital expenditures at the Predecessor's ethylene plants. In connection with the IPO, OpCo assumed the August 2013 Promissory Notes and used proceeds from the IPO to repay a portion of the balance it assumed. See Note 2 for a description of the August 2013 Promissory Notes and proceeds used to repay balances of such promissory notes assumed in connection with the IPO. | |||||||||
In connection with the IPO on August 4, 2014, OpCo entered into a senior unsecured revolving credit facility with Westlake. The credit facility accrues interest quarterly at a rate of LIBOR plus 3.0%, which may be paid-in-kind as an addition to the principal at OpCo's option. | |||||||||
As of December 31, 2014, the Partnership was in compliance with all of the covenants with respect to the August 2013 Promissory Notes and the revolving credit facility. | |||||||||
The weighted average interest rate on all long-term debt was 4.35% and 4.69% at December 31, 2014 and 2013, respectively. | |||||||||
As of December 31, 2014, the Partnership had no maturities of long-term debt until 2019. The Partnership's revolving credit facility matures on August 4, 2019, and the August 2013 Promissory Notes mature on August 1, 2023. |
Net_Income_Per_Limited_Partner
Net Income Per Limited Partner Unit | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Net Income Per Limited Partner Unit | Net Income Per Limited Partner Unit | ||||||||||||||||
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 for the period subsequent to the IPO 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, Partnership 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. 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. | |||||||||||||||||
On October 28, 2014, the Board of Directors of Westlake Chemical Partners GP LLC, the Partnership's general partner, declared an initial prorated quarterly cash distribution for the period from August 4, 2014 through September 30, 2014 of $0.1704 per unit, or $4,611 in total. This distribution was paid on November 25, 2014 to unitholders of record as of November 10, 2014. | |||||||||||||||||
On January 30, 2015, the Board of Directors of Westlake Chemical Partners GP LLC declared a quarterly cash distribution for the period from October 1, 2014 to December 31, 2014 of $0.2750 per unit, or $7,441 in total. This distribution was paid on February 24, 2015 to unitholders of record as of February 9, 2015. | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Net income attributable to the Partnership subsequent to the IPO | $ | 13,577 | |||||||||||||||
Less: | |||||||||||||||||
Limited partners' distribution declared on common units | 6,403 | ||||||||||||||||
Limited partners' distribution declared on subordinated units | 5,649 | ||||||||||||||||
Net income subsequent to the IPO in excess of distribution | $ | 1,525 | |||||||||||||||
31-Dec-14 | |||||||||||||||||
Limited Partners' Common Units | Limited Partners' Subordinated Units | Incentive Distribution Rights | Total | ||||||||||||||
Net income attributable to the Partnership | |||||||||||||||||
subsequent to the IPO: | |||||||||||||||||
Distribution | $ | 6,403 | $ | 5,649 | $ | — | $ | 12,052 | |||||||||
Net income subsequent to the IPO in excess of | 810 | 715 | — | 1,525 | |||||||||||||
distribution | |||||||||||||||||
Net income subsequent to the IPO | $ | 7,213 | $ | 6,364 | $ | — | $ | 13,577 | |||||||||
Weighted average units outstanding: | |||||||||||||||||
Basic and diluted | 14,373,615 | 12,686,115 | 27,059,730 | ||||||||||||||
Net income per limited partner unit: | |||||||||||||||||
Basic and diluted | $ | 0.5 | $ | 0.5 | $ | 0.5 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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. Prior to the IPO, the Predecessor sold the majority of its ethylene to Westlake for use in Westlake's downstream operations. | |||||||||||||
Sales to related parties were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Net sales—Westlake | $ | 1,292,089 | $ | 1,603,043 | $ | 1,507,501 | |||||||
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. Prior to the IPO, services provided by Westlake and included in cost of sales related primarily to services provided by employees of Westlake Management Services, Inc., a subsidiary of Westlake. The cost of services provided by employees of Westlake Management Services, Inc. was allocated to the Predecessor's operations primarily on the basis of direct usage. | |||||||||||||
Charges from related parties in cost of sales were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Feedstock purchased from Westlake and included in cost of sales | $ | 155,232 | $ | — | $ | — | |||||||
Other charges from Westlake and included in cost of sales | 60,264 | 61,770 | 57,454 | ||||||||||
Total | $ | 215,496 | $ | 61,770 | $ | 57,454 | |||||||
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. Prior to the IPO, the Predecessor was allocated costs incurred by Westlake on its behalf for similar functions. These allocations were based primarily on the basis of direct usage when identifiable, with the remainder allocated on the basis of fixed assets, headcount or other measure. | |||||||||||||
Charges from related parties included within selling, general and administrative expenses were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Services received from Westlake and included in selling, | $ | 21,302 | $ | 24,054 | $ | 22,485 | |||||||
general and administrative expenses | |||||||||||||
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. Prior to the IPO, salaries and benefits of Westlake Management Services, Inc. were allocated to the Predecessor primarily on the basis of direct usage. | |||||||||||||
Charges from related parties for goods and services capitalized as assets were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Goods and services purchased from Westlake and capitalized as assets | $ | 5,823 | $ | 20,222 | $ | 8,902 | |||||||
Accounts Receivable from and Accounts Payable to Related Parties | |||||||||||||
The Partnership's accounts receivable from Westlake result primarily from ethylene sales to Westlake under the Ethylene Sales Agreement. 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. Prior to the IPO, ethylene sales and other transactions between the Predecessor and Westlake were settled immediately through net investment and, therefore, the Predecessor did not have related party accounts receivable or related party accounts payable balances. | |||||||||||||
The related party accounts receivable and accounts payable balances were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Predecessor | |||||||||||||
Accounts receivable, net—Westlake | $ | 18,529 | $ | — | |||||||||
Accounts payable—Westlake | 7,470 | — | |||||||||||
Debt Payable to Related Parties | |||||||||||||
OpCo assumed the August 2013 Promissory Notes and entered into a senior unsecured revolving credit facility with Westlake in connection with the IPO. Prior to the IPO, the Predecessor funded certain capital expenditures through the August 2013 Promissory Notes payable to Westlake which were assumed by the Partnership in connection with the IPO. See Note 9 for a description of related party debt payable balances. Interest capitalized as a component of property, plant and equipment on related party debt was $2,638 for the period from August 4, 2014 to December 31, 2014. At December 31, 2014 and 2013, accrued interest on related party debt was $2,403 and $504, respectively, and is reflected as a component accrued liabilities. Additionally, at December 31, 2013, accrued interest of $7,506 was included as a component of the outstanding debt payable to Westlake. | |||||||||||||
Debt payable to related parties was as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Predecessor | |||||||||||||
Long-term debt payable to Westlake | $ | 227,638 | $ | 252,973 | |||||||||
General | |||||||||||||
OpCo, together with other subsidiaries of Westlake not included in these combined and consolidated financial statements, are guarantors under Westlake's revolving credit facility and the indentures governing its senior notes. As of December 31, 2014, Westlake had outstanding letters of credit totaling $31,392 under its revolving credit facility and $754,000 principal amount outstanding under its senior notes (less the unamortized discount of $892). | |||||||||||||
The indentures governing Westlake's senior notes prevent OpCo from making distributions to the Partnership if any default or event of default (as defined in the indentures) exists. However, Westlake's credit facility does not prevent OpCo from making distributions to the Partnership. | |||||||||||||
Westlake uses a centralized cash management system to finance its operations. Interest paid, net of capitalized interest, and income taxes have been paid directly by Westlake and charged to the Predecessor through related party accounts receivable, net. Related party accounts receivable, net were settled immediately through net investment, and therefore, the Predecessor did not pay cash for interest expense or income tax expense during the years ended December 31, 2013 or 2012. | |||||||||||||
OpCo has entered into two site lease agreements with Westlake in connection with the IPO, and each has a term of 50 years. Pursuant to the site lease agreements, OpCo pays Westlake one dollar per site per year. |
Partners_Equity
Partners' Equity | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Partners' Equity | Partners' Equity | ||||||
Common Unit | |||||||
As described below, the common unitholders have preference over subordinated unitholders on receipt of distributions, including, in certain circumstances, cash distributions upon liquidation, as set out in the Partnership's agreement of limited partnership (the "Partnership Agreement"). The common unitholders have limited rights on matters affecting Partnership's business, limited voting rights and are not entitled to elect the general partner or its directors. | |||||||
Subordinated Unit | |||||||
The subordinated unitholders have similar rights as the common unitholders. However, during the subordination period, the subordinated unitholders are not entitled to receive quarterly distributions from operating surplus until the common unitholders have received the minimum quarterly distribution from operating surplus and, among other things, in certain circumstances, are subordinated in the receipt of cash distributions upon liquidation. The subordination period will end on the first business day after the Partnership has earned and paid an aggregate amount of at least the minimum quarterly distribution multiplied by the total number of outstanding common and subordinated units for each of three consecutive, non-overlapping four-quarter periods ending on or after June 30, 2017 and there are no outstanding arrearages on the Partnership's common units. Notwithstanding the foregoing, the subordination period will end on the first business day after the Partnership has paid an aggregate amount of at least 150.0% of the minimum quarterly distribution on an annualized basis multiplied by the total number of outstanding common and subordinated units and have earned that amount plus the related distribution on the incentive distribution rights, for any four-quarter period ending on or after June 30, 2015 and there are no outstanding arrearages on Partnership's common units. | |||||||
Incentive Distribution Rights | |||||||
The Partnership Agreement generally provides that the Partnership will distribute cash each quarter during the subordination period in the following manner: first, to the holders of common units, until each common unit has received the minimum quarterly distribution of $0.2750, plus any arrearages from prior quarters; second, to the holders of subordinated units, until each subordinated unit has received the minimum quarterly distribution of $0.2750; and third, to the holders of common and subordinated units, pro rata, until each unit has received a distribution of $0.3163. If cash distributions to the Partnership's unitholders exceed $0.3163 per common unit and subordinated 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 $0.3163 up to $0.3438 | 85 | % | 15 | % | |||
Above $0.3438 up to $0.4125 | 75 | % | 25 | % | |||
Above $0.4125 | 50 | % | 50 | % |
UnitBased_Compensation
Unit-Based Compensation | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation [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. For the period from August 4, 2014 through December 31, 2014, 4,404 phantom units along with a corresponding number of DERs were granted to certain non-employee directors of the general partner of the Partnership, which awards will vest on the third anniversary of the grant date. Each phantom unit represents the right to receive, upon vesting, a cash payment equal to the fair market value of one 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 (based on the closing price of the Partnership's common units on the New York Stock Exchange) at each reporting date until they vest. There were no forfeitures under the Plan through December 31, 2014. The total units available for grant at December 31, 2014 was 1,265,596. The total compensation cost recognized from August 4, 2014 through December 31, 2014 was $15, and is included in selling, general and administrative expenses and classified as a liability in the consolidated 2014 financial statements of the Partnership. The unrecognized compensation cost associated with all grants under the Plan during the year ended December 31, 2014 was $111. |
Derivative_Commodity_Instrumen
Derivative Commodity Instruments | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||
Derivative Commodity Instruments | Derivative Commodity Instruments | ||||||||||||||
Commodity Risk Management | |||||||||||||||
The Predecessor used derivative instruments to reduce price volatility risk on raw materials and products, as a substantial portion of its raw materials and products were commodities whose prices fluctuate as market supply and demand fundamentals change. The Predecessor employed strategies to protect against such instability, including ethylene product feedstock flexibility. The Predecessor did not use derivative instruments to engage in speculative activities. The Contributed Assets do not include the entity engaged in commodity risk management activities or any of its open derivative positions. The Partnership has not engaged in any hedging activity and did not use derivative instruments in the period subsequent to the IPO through December 31, 2014. Therefore, there are no derivative assets or liabilities reflected in the consolidated balance sheet of the Partnership as of December 3l, 2014. | |||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, the gains or losses on the derivative instruments, as well as the offsetting losses or gains on the hedged items attributable to the hedged risk, were included in cost of sales in the combined and consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012. The Partnership had no derivative instruments that were designated as fair value hedges subsequent to the IPO through December 31, 2014. | |||||||||||||||
Gains and losses from changes in the fair value of derivative instruments that are not designated as hedging instruments were included in gross profit in the combined and consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012. The Partnership had no derivative instruments that were not designated as hedging instruments subsequent to the IPO through December 31, 2014. | |||||||||||||||
The exposure on commodity derivatives used for price risk management includes the risk that the counterparty will not pay if the market declines below the established fixed price. In such case, the derivative holder would lose the benefit of the derivative differential on the volume of the commodities covered. In any event, the derivative holders would continue to receive the market price on the actual volume hedged. Derivative holders also bear the risk of losing the benefit of market improvements over the fixed derivative price for the term and volume of the derivative instruments (as such improvements would accrue to the benefit of the counterparty). | |||||||||||||||
Disclosures related to the Predecessor's derivative assets and derivative liabilities subject to enforceable master netting arrangements have not been presented as they were not material to the Predecessor's combined balance sheet at December 31, 2013. There was no open derivative position at December 31, 2014. | |||||||||||||||
The fair values of derivative instruments in the combined and consolidated balance sheets were as follows: | |||||||||||||||
Asset Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value as of December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Predecessor | |||||||||||||||
Not designated as hedging instruments | |||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | — | $ | 296 | ||||||||||
Total asset derivatives | $ | — | $ | 296 | |||||||||||
Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value as of December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Predecessor | |||||||||||||||
Not designated as hedging instruments | |||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | — | $ | 176 | ||||||||||
Total liability derivatives | $ | — | $ | 176 | |||||||||||
The following tables reflect the impact of derivative instruments designated as fair value hedges and the related hedged item on the combined and consolidated statements of operations. There was no material ineffectiveness with regard to the Predecessor's qualifying hedges in 2013 and 2012. | |||||||||||||||
Derivatives in Fair Value | Location of Gain (Loss) | Year Ended December 31, | |||||||||||||
Hedging Relationships | Recognized in Income on Derivative | 2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||||
Commodity forward contracts | Cost of sales | $ | — | $ | (303 | ) | $ | 17,163 | |||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Year Ended December 31, | |||||||||||||
Hedging Relationships | Recognized in Income on | ||||||||||||||
Hedged Items | 2014 | 2013 | 2012 | ||||||||||||
Predecessor | Predecessor | ||||||||||||||
Firm commitment designated as the | Cost of sales | $ | — | $ | 143 | $ | (18,394 | ) | |||||||
hedged item | |||||||||||||||
The impact of derivative instruments that have not been designated as hedges in the combined and consolidated statements of operations were as follows: | |||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Year Ended December 31, | |||||||||||||
Hedging Instruments | Recognized in Income on Derivative | 2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||||
Commodity forward contracts | Gross profit | $ | (9,244 | ) | $ | 5,438 | $ | (11,961 | ) | ||||||
See Note 15 for the fair value of derivative instruments. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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. | |||||||||||||||||
There were no assets or liabilities accounted for at fair value on a recurring basis as of December 31, 2014. The following table summarizes, by level within the fair value hierarchy, the Predecessor's assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2013: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Predecessor | |||||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 48 | $ | 248 | $ | 296 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (176 | ) | (176 | ) | ||||||||||||
The Level 2 measurements for the Predecessor's commodity contracts are derived using forward curves supplied by industry recognized and unrelated third-party services. There were no transfers in and out of Levels 1 and 2 of the fair value hierarchy during 2014 and 2013. | |||||||||||||||||
The Partnership has other 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, all of which are recorded at carrying value. The amounts reported in the consolidated balance sheets for cash and cash equivalents, 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 and the Predecessor's long-term debt at December 31, 2014 and 2013 are summarized in the table below. The Partnership's long-term debt includes the August 2013 Promissory Notes and the senior unsecured revolving credit facility. 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, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
Predecessor | |||||||||||||||||
2006 Pipeline Note | $ | — | $ | — | $ | 14,400 | $ | 13,922 | |||||||||
August 2013 Promissory Notes | 167,116 | 167,116 | 238,573 | 238,573 | |||||||||||||
Senior unsecured revolving credit facility | 60,522 | 60,522 | — | — | |||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 Predecessor's operating results were included in Westlake's consolidated U.S. federal and state income tax returns. Amounts presented in the combined financial statements prior to the IPO relate to income taxes that have been determined on a separate tax return basis and the Predecessor's contribution to Westlake Chemical Corporation's net operating losses and tax credits have been included in the Predecessor's financial statements. | |||||||||||||||||
The components of income tax disaggregated between the Partnership and the Predecessor are as follows: | |||||||||||||||||
Partnership | Predecessor | ||||||||||||||||
Period from August 4, 2014 to December 31, 2014 | Period from January 1, 2014 to August 3, 2014 | Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Current | |||||||||||||||||
Federal | $ | — | $ | 168,773 | $ | 233,014 | $ | 196,467 | |||||||||
State and local | 800 | 21,207 | 30,211 | 22,507 | |||||||||||||
800 | 189,980 | 263,225 | 218,974 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | — | 6,890 | 32,675 | (8,137 | ) | ||||||||||||
State and local | 265 | 1,453 | 4,379 | 41 | |||||||||||||
265 | 8,343 | 37,054 | (8,096 | ) | |||||||||||||
Total provision | $ | 1,065 | $ | 198,323 | $ | 300,279 | $ | 210,878 | |||||||||
The reconciliation of income tax expense at the U.S. statutory rate to the income tax expense disaggregated between the Partnership and the Predecessor is as follows: | |||||||||||||||||
Partnership | Predecessor | ||||||||||||||||
Period from August 4, 2014 to December 31, 2014 | Period from January 1, 2014 to August 3, 2014 | Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Provision for federal income tax, at statutory rate | $ | 52,343 | $ | 195,880 | $ | 296,389 | $ | 212,379 | |||||||||
State income tax provision, net of federal income tax | 1,065 | 14,729 | 22,484 | 14,656 | |||||||||||||
effect | |||||||||||||||||
Partnership income not subject to entity-level tax | (52,343 | ) | — | — | — | ||||||||||||
Manufacturing deduction | — | (12,214 | ) | (18,270 | ) | (16,065 | ) | ||||||||||
Other, net | — | (72 | ) | (324 | ) | (92 | ) | ||||||||||
$ | 1,065 | $ | 198,323 | $ | 300,279 | $ | 210,878 | ||||||||||
The tax effects of the principal temporary differences between financial reporting and income tax reporting are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Predecessor | |||||||||||||||||
Credit carryforward | $ | — | $ | 25 | |||||||||||||
Accruals | — | 3,570 | |||||||||||||||
Allowance for doubtful accounts | — | (136 | ) | ||||||||||||||
Inventories | — | 1,313 | |||||||||||||||
Other | — | (373 | ) | ||||||||||||||
Deferred taxes assets—total | — | 4,399 | |||||||||||||||
Property, plant and equipment | (1,650 | ) | (159,033 | ) | |||||||||||||
Turnaround costs | (198 | ) | (23,773 | ) | |||||||||||||
Deferred tax liabilities—total | (1,848 | ) | (182,806 | ) | |||||||||||||
Total net deferred tax liabilities | $ | (1,848 | ) | $ | (178,407 | ) | |||||||||||
Balance sheet classifications | |||||||||||||||||
Current deferred tax asset | $ | — | $ | 4,448 | |||||||||||||
Noncurrent deferred tax liability | (1,848 | ) | (182,855 | ) | |||||||||||||
Total net deferred tax liabilities | $ | (1,848 | ) | $ | (178,407 | ) |
Supplemental_Information
Supplemental Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Supplemental Information | Supplemental Information | ||||||||||||
Net Liabilities Retained by Westlake | |||||||||||||
Net liabilities of the Predecessor that were retained by Westlake and not assumed by OpCo in connection with the IPO are composed of the following: | |||||||||||||
Net liabilities retained by Westlake | |||||||||||||
Accounts receivable, net—third parties | $ | 64,650 | |||||||||||
Inventories | 85,057 | ||||||||||||
Prepaid expenses and other current assets | 669 | ||||||||||||
Deferred income taxes | 4,448 | ||||||||||||
Property, plant and equipment, net | 62,886 | ||||||||||||
Equity investments | 9,338 | ||||||||||||
Accounts payable—third parties | (101,671 | ) | |||||||||||
Accrued liabilities | (37,451 | ) | |||||||||||
Deferred income taxes | (189,615 | ) | |||||||||||
Long-term debt | (137,103 | ) | |||||||||||
Other liabilities | (914 | ) | |||||||||||
Total | $ | (239,706 | ) | ||||||||||
Accrued Liabilities | |||||||||||||
Accrued liabilities were $11,900 and $26,688 at December 31, 2014 and 2013, respectively. Accrued taxes, interest accrued on long-term debt and accrual related to capital expenditures, which are components of accrued liabilities, were $1,622, $2,403 and $5,026 at December 31, 2014, respectively. Accrued employee payroll and benefits, which is a component of accrued liabilities, was $10,598 at December 31, 2013. No other component of accrued liabilities was more than five percent of total current liabilities. | |||||||||||||
Other Income, Net | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Income from equity method investment | $ | 2,973 | $ | 4,711 | $ | 4,172 | |||||||
Claims recovery | — | 3,158 | — | ||||||||||
Franchise taxes | (11 | ) | (172 | ) | (144 | ) | |||||||
Other | 189 | 4 | 158 | ||||||||||
Other income, net | $ | 3,151 | $ | 7,701 | $ | 4,186 | |||||||
Cash Flow Information | |||||||||||||
Non-cash Operating Activity | |||||||||||||
The Predecessor settled $9,315 and $7,506 of its total interest expense incurred on long-term debt payable to Westlake as an addition to principal on debt outstanding in 2014 and 2013, respectively. | |||||||||||||
Non-cash Investing Activity | |||||||||||||
The change in capital expenditure accrual reducing additions to property, plant and equipment was $418, $7,937 and $1,333 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Non-cash Financing Activity | |||||||||||||
Related party notes payable to Westlake of $238,600 were deemed settled through net investment in 2013. The non-cash settlement was recorded as an increase in Westlake's net investment in the Predecessor. No cash was transferred in connection with the deemed settlement of these notes. | |||||||||||||
Interest and Income Taxes | |||||||||||||
Westlake uses a centralized cash management system to finance its operations. Interest paid, net of interest capitalized, and income taxes have been paid directly by Westlake and charged to the Predecessor through related party accounts receivable, net. Related party accounts receivable, net were settled immediately through net investment, and therefore, the Predecessor did not pay cash for interest expense or income tax expense during the years ended December 31, 2013 or 2012. Interest paid, net of interest capitalized was $1,366 for the year ended December 31, 2014. |
Major_Customer_and_Concentrati
Major Customer and Concentration Risk | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Major Customer and Concentration of Credit Risk | Major Customer and Concentration of Credit Risk |
During the years ended December 31, 2014, 2013 and 2012, Westlake accounted for approximately 73.8%, 75.3% and 67.0%, respectively, of the Partnership's and the Predecessor's net sales. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
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. | ||||
Contract Disputes with Goodrich and PolyOne. In connection with the 1990 and 1997 acquisitions of the Goodrich Corporation ("Goodrich") chemical manufacturing facility in Calvert City, Kentucky, which is a portion of the B.F. Goodrich superfund site, Goodrich agreed to indemnify Westlake for any liabilities related to preexisting contamination at the site. Westlake agreed to indemnify Goodrich for post-closing contamination caused by Westlake's operations. The soil and groundwater at the site had been extensively contaminated under Goodrich's operations. In 1993, Goodrich spun off the predecessor of PolyOne Corporation ("PolyOne"), and that predecessor assumed Goodrich's indemnification obligations relating to preexisting contamination. | ||||
In 2003, litigation arose among Westlake, Goodrich and PolyOne with respect to the allocation of the cost of remediating contamination at the site. The parties settled this litigation in December 2007, and the case was dismissed. In the settlement the parties agreed that, among other things: (1) PolyOne would pay 100% of the costs (with specified exceptions), net of recoveries or credits from third parties, incurred with respect to environmental issues at the Calvert City site from August 1, 2007 forward; (2) either Westlake or PolyOne might, from time to time in the future (but not more than once every five years), institute an arbitration proceeding to adjust that percentage; and (3) Westlake and PolyOne would negotiate a new environmental remediation utilities and services and secondment agreement to cover Westlake's provision to or on behalf of PolyOne of certain environmental remediation services at the site. The current environmental remediation activities at the Calvert City site do not have a specified termination date but are expected to last for the foreseeable future. The costs incurred by Westlake that have been invoiced to PolyOne to provide the environmental remediation services were $2,805 and $3,284 in 2014 and 2013, respectively. By letter dated March 16, 2010, PolyOne notified Westlake that it was initiating an arbitration proceeding under the settlement agreement. In this proceeding, PolyOne seeks to readjust the percentage allocation of costs and to recover approximately $1,400 from Westlake in reimbursement of previously paid remediation costs. The arbitration is currently stayed pending the outcome of discussions between other parties and their insurance carriers. | ||||
State Administrative Proceedings. There are several administrative proceedings in Kentucky involving Westlake, Goodrich and PolyOne related to the same manufacturing site in Calvert City, which includes OpCo's ethylene production facility in Calvert City. In 2003, the Kentucky Environmental and Public Protection Cabinet (the "Cabinet") re-issued Goodrich's RCRA permit which requires Goodrich to remediate contamination at the Calvert City manufacturing site. Both Goodrich and PolyOne challenged various terms of the permit in an attempt to shift Goodrich's clean-up obligations under the permit to Westlake. Westlake intervened in the proceedings. The Cabinet has suspended all corrective action under the RCRA permit in deference to a remedial investigation and feasibility study ("RIFS") being conducted, under the auspices of the U.S. Environmental Protection Agency ("EPA") pursuant to an Administrative Settlement Agreement ("AOC"), which became effective on December 9, 2009. See "Federal Administrative Proceedings" below. Periodic status conferences will be held to evaluate whether additional proceedings will be required. | ||||
Federal Administrative Proceedings. In May 2009, the Cabinet sent a letter to the EPA requesting the EPA's assistance in addressing contamination at the Calvert City site under CERCLA. In its response to the Cabinet, the EPA stated that it concurred with the Cabinet's request and would incorporate work previously conducted under the Cabinet's RCRA authority into the EPA's cleanup efforts under CERCLA. Since 1983, the EPA has been addressing contamination at an abandoned landfill adjacent to the Partnership's plant which had been operated by Goodrich and which was being remediated pursuant to CERCLA. The EPA has directed Goodrich and PolyOne to conduct additional investigation activities at the landfill and at the Calvert City site. In June 2009, the EPA notified Westlake that Westlake may have potential liability under section 107(a) of CERCLA at its plant site. Liability under section 107(a) of CERCLA is strict and joint and several. The EPA also identified Goodrich and PolyOne, among others, as potentially responsible parties at the plant site. Westlake negotiated, in conjunction with the other potentially responsible parties, an AOC and an order to conduct an RIFS. Due to the Partnership's ownership and current operation of the property, the Partnership may be subject to additional requirements and liabilities under CERCLA. | ||||
Potential Flare Modifications. For several years, the EPA has been conducting an enforcement initiative against petroleum refineries and petrochemical plants with respect to emissions from flares. A number of companies have entered into consent agreements with the EPA requiring both modifications to reduce flare emissions and the installation of additional equipment to better track flare operations and emissions. On April 21, 2014, Westlake received a Clean Air Act Section 114 Information Request from the EPA which sought information regarding flares at the Calvert City and Lake Charles facilities. Westlake submitted information pursuant to such request, including information regarding three flares that the Partnership owns. The EPA has informed Westlake that the information provided leads the EPA to believe that some of the flares are out of compliance with applicable standards. The EPA has demanded that Westlake conduct additional flare sampling and provide supplemental information. Westlake is currently in negotiations with the EPA regarding these demands, some of which are applicable to the Partnership's flares. The EPA has indicated that it is seeking a consent decree with that would obligate Westlake to take corrective actions relating to the alleged noncompliance. Westlake has not agreed that any flares are out of compliance or that any corrective actions are warranted. Depending on the outcome of Westlake's negotiations with the EPA, additional controls on emissions from the Partnership's flares may be required and these could result in increased capital and operating costs. | ||||
Louisiana Notice of Violations. The Louisiana Department of Environmental Quality ("LDEQ") has issued notices of violations ("NOVs") regarding the Partnership's assets, and those of Westlake, for various air compliance issues. The Partnership and Westlake are working with LDEQ to settle these claims, and a global settlement of all claims is being discussed. While settlement may result in a total civil penalty in excess of $100, such a settlement will likely cover assets owned by the Partnership and Westlake, and to the extent it covers the Partnership's assets, Westlake will indemnify the Partnership for liabilities to the extent such liabilities occurred or existed prior to August 4, 2014. | ||||
In addition to the matters described above, the Partnership is involved in various 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 is obligated under various long-term and short-term noncancelable operating leases, primarily related to rail car leases and land. Several of the leases provide for renewal terms. At December 31, 2014, future minimum lease commitments were as follows: | ||||
2015 | $ | 1,041 | ||
2016 | 604 | |||
2017 | 443 | |||
2018 | 127 | |||
2019 | 59 | |||
Thereafter | 98 | |||
$ | 2,372 | |||
Rental expense was approximately $3,558, $3,933 and $2,999 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
The Partnership has various purchase commitments for its capital projects and for materials, supplies and services incident to the ordinary conduct of business. Such commitments are at prices not in excess of market prices. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Distribution | |
On January 30, 2015, the Board of Directors of the Partnership's general partner declared a quarterly distribution of $0.2750 per unit, or $7,441 in total, which was paid on February 24, 2015 to unitholders of record as of February 9, 2015. | |
General | |
The financial statements of the Partnership are substantially comprised of the financial statements of OpCo, which issued its annual financial statements on February 25, 2015. Accordingly, the Partnership has evaluated transactions for consideration as recognized subsequent events in the annual financial statements through the date of February 25, 2015. Additionally, the Partnership has evaluated transactions that occurred as of the issuance of these financial statements, on March 9, 2015, for purposes of disclosure of unrecognized subsequent events. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Predecessor | Predecessor | ||||||||||||||||
Net sales | $ | 560,014 | $ | 524,135 | $ | 392,008 | $ | 273,543 | |||||||||
Gross profit | 232,314 | 246,546 | 164,993 | 101,959 | |||||||||||||
Income from operations | 224,536 | 240,381 | 156,133 | 95,506 | |||||||||||||
Net income | 143,874 | 153,844 | 118,173 | 93,929 | |||||||||||||
Net income attributable to Westlake Chemical Partners LP | |||||||||||||||||
subsequent to the IPO and limited partners' interest | |||||||||||||||||
in net income | |||||||||||||||||
Basic and diluted earnings per common unitholder (1)(2) | $ | 0.19 | $ | 0.32 | |||||||||||||
Basic and diluted earnings per subordinated unitholder (1)(2) | $ | 0.19 | $ | 0.32 | |||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Predecessor | Predecessor | Predecessor | Predecessor | ||||||||||||||
Net sales | $ | 500,917 | $ | 524,759 | $ | 540,133 | $ | 561,938 | |||||||||
Gross profit | 190,010 | 238,155 | 212,981 | 231,461 | |||||||||||||
Income from operations | 183,839 | 231,391 | 206,590 | 225,336 | |||||||||||||
Net income | 120,725 | 149,034 | 132,581 | 144,206 | |||||||||||||
______________________________ | |||||||||||||||||
-1 | Represents quarterly net income per common and subordinated unit since the completion of the Partnership's IPO on August 4, 2014. See Note 10 to the combined and consolidated financial statements. | ||||||||||||||||
-2 | Basic and diluted earnings per common and subordinated unit ("EPU") for each quarter is computed using the weighted average units outstanding during that quarter, while EPU for the period from August 4, 2014 through December 31, 2014 is computed using the weighted average units outstanding for the period. As a result, the sum of the EPU for each of the quarters subsequent to the IPO may not equal the EPU for the period from August 4, 2014 through December 31, 2014. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Accounts Receivable Allowance for Doubtful Accounts | Balance at | Charged to | Additions/ | Balance at | |||||||||||||
Beginning | Expense | (Deductions) (1) | End of | ||||||||||||||
of Year | Year | ||||||||||||||||
2014 | $ | 2,105 | $ | 65 | $ | (2,170 | ) | $ | — | ||||||||
2013 | 2,065 | 40 | — | 2,105 | |||||||||||||
2012 | 1,983 | 82 | — | 2,065 | |||||||||||||
______________________________ | |||||||||||||||||
-1 | Represents adjustment for assets retained by Westlake pursuant to the IPO. |
Description_Of_Business_And_Si1
Description Of Business And Significant Accounting Policies (Policy) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Description Of Business | Description of Business, Formation of Partnership and Initial Public Offering | ||
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 an 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% 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 a common carrier ethylene pipeline (collectively, the "Contributed Assets"). | |||
Unless the context otherwise requires, references in these financial statements to the "Predecessor" refer to Westlake Chemical Partners LP Predecessor, the Partnership's predecessor for accounting purposes and refer to the time periods prior to the IPO. References in these financial statements to the Partnership, OpCo and OpCo GP used in the present tense or prospectively refer to the period subsequent to the IPO. References to "Westlake" refer collectively to Westlake Chemical Corporation and its subsidiaries, other than the Partnership, OpCo and OpCo GP. | |||
Prior to the IPO, the Predecessor generated revenue predominantly by selling ethylene and ethylene co-products to Westlake and external customers. The Predecessor typically shipped ethylene, propylene and hydrogen via pipeline systems that connected its ethylene plants to Westlake and numerous third-party customers. The Predecessor transported its butadiene and pyrolysis gasoline by rail or truck. | |||
In connection with the IPO, 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. The Ethylene Sales Agreement has a 12-year initial term and a minimum commitment provision under which Westlake has agreed to purchase 95% of OpCo's planned ethylene production each year, subject to a maximum of 3.8 billion pounds per year. This agreement represents a long-term, minimum-purchase commitment by Westlake with variable pricing equal to OpCo's actual feedstock and natural gas costs and estimated other costs of producing ethylene, plus a fixed margin of $0.10 per pound, less revenue from associated co-products sales. Currently, the Partnership expects to sell 95% of its ethylene production to Westlake. For more information, see Note 2 to the combined and consolidated financial statements. | |||
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 continue to be 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. The Partnership's operations consist of one reportable segment: ethylene production. | |||
The Predecessor's operations consisted of the entire ethylene business of Westlake, including the activities of the Contributed Assets, as well as activities which were retained by Westlake. Ethylene business activities retained by Westlake include, but are not limited to, procuring feedstock, managing inventory and commodity risk and transporting ethylene from manufacturing facilities. The Partnership's operations consist of activities relating solely to the Contributed Assets. | |||
Basis of Presentation | Basis of Presentation | ||
The accompanying combined and consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States. | |||
Financial information presented for the periods prior to the IPO consists of the Predecessor's combined financial position as of December 31, 2013, its results of operations, changes in equity and cash flows for the years ended December 31, 2013 and 2012. Financial information of the Predecessor is derived from the financial statements and accounting records of Westlake. Subsequent to the IPO, the Partnership's financial position, results of operations and cash flows consist of the consolidated activities and balances of the Partnership. The Partnership's consolidated financial statements include the accounts of the Partnership and its consolidated subsidiaries, including OpCo. | |||
For the year ended December 31, 2014, the results of operations, changes in equity and cash flows include the Partnership's consolidated results subsequent to the IPO and the Predecessor's combined results prior to the IPO. For these periods, the results of operations and cash flows are referred to as the Partnership's consolidated results and cash flows. | |||
The Partnership holds a 10.6% limited partner interest and the entire non-economic general partner interest in OpCo. The remaining 89.4% 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 89.4% is recorded as noncontrolling interest in the Partnership's consolidated financial statements. | |||
All financial information presented for the periods after the IPO represents the consolidated results of operations, financial position and cash flows of the Partnership. Financial information for the periods prior to the IPO represents the combined results of operations, financial position and cash flows of the Predecessor. The combined and consolidated financial statements were prepared as follows: | |||
• | The consolidated statement of operations for the year ended December 31, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through December 31, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014 and for the years ended December 31, 2013 and 2012. | ||
• | The consolidated balance sheet as of December 31, 2014 consists of the consolidated balances of the Partnership, while the combined balance sheet as of December 31, 2013 consists of the combined balances of the Predecessor. | ||
• | The consolidated statement of cash flows for the year ended December 31, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through December 31, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014 and for the years ended December 31, 2013 and 2012. | ||
• | The consolidated statement of changes in equity for the year ended December 31, 2014 consists of the combined activity for the Predecessor prior to August 4, 2014, and the consolidated activity for the Partnership at and subsequent to the IPO on August 4, 2014 through December 31, 2014. The combined statements of changes in equity for the years ended December 31, 2013 and 2012 consist entirely of the combined activity of the Predecessor. | ||
The combined statements of operations for the periods before August 4, 2014 include expense allocations for certain functions historically performed by Westlake and allocated to the ethylene business, including allocations of general corporate expenses related to finance, legal, information technology, human resources, communications, ethics and compliance, shared services, employee benefits and incentives and stock-based compensation. These allocations were based primarily on direct usage, when identifiable, with the remainder allocated on the basis of fixed assets, headcount or other measures. Management believes the assumptions underlying the combined financial statements, including the assumptions regarding the allocation of expenses from Westlake, are reasonable and reflect all costs related to the operations of the Predecessor, including those incurred by Westlake on behalf of the Predecessor. Nevertheless, the combined financial statements may not include all of the expenses that would have been incurred had the Predecessor been a stand-alone company during the periods presented and may not reflect its results of operations, financial position and cash flows had the Predecessor been a stand-alone company during the periods presented. | |||
With respect to the Predecessor, Westlake used a centralized approach to the cash management and financing of its operations. The cash generated by the Predecessor's operations was transferred to Westlake daily, and Westlake funded the Predecessor's operating and investing activities as needed. Accordingly, the cash and cash equivalents generated by the Predecessor's operations that were held by Westlake were not presented in its combined financial statements for any of the periods presented. The Predecessor reflected transfers of cash to and from Westlake's cash management system as a component of Net investment on its combined balance sheet, and as part of Net distributions to Westlake prior to the initial public offering on its combined statements of cash flows. | |||
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 Doubtful Accounts | ||
The determination of the allowance for doubtful accounts 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 and specific collectibility analysis. The allowance for doubtful accounts 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 collectibility. | |||
Inventories | Inventories | ||
Inventories primarily include product, material and supplies. Inventories are stated at the lower of cost or market. 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. Historical costs include expenditures for improvements and betterments that extend the useful lives of the assets. | |||
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 $2,638 for the period from August 4, 2014 to December 31, 2014. Repair and maintenance costs are charged to operations as incurred. | |||
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 | 25 | ||
Plant and equipment | 25 | ||
Ethylene pipeline | 35 | ||
Other | 10-Mar | ||
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 Intangible Assets | |||
The accounting guidance for goodwill and intangible assets requires that goodwill and indefinite-lived intangible assets are tested for impairment at least annually. Other intangible assets with finite lives are amortized over their estimated useful life and reviewed for impairment in accordance with the provisions of the accounting guidance. | |||
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 three to six years. Deferred turnaround costs are presented as a component of other assets, net. The cash outflows related to these costs are included in operating activities in the consolidated statement of cash flows. | |||
Exchanges | Exchanges | ||
The Partnership enters into inventory exchange transactions with respect to ethylene. These exchanges are settled in like-kind quantities and are valued at lower of cost or market. The Predecessor entered into inventory exchange transactions with third parties, which involve fungible commodities. These exchanges are settled in like-kind quantities and are valued at lower of cost or market. Cost is determined using the FIFO method. | |||
Concentration Of Credit Risk | 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 Recognition | ||
Revenue is recognized when persuasive evidence of an arrangement exists, products are delivered to the customer, the sales price is fixed or determinable, and collectibility is reasonably assured. Title and risk of loss passes to the customer upon delivery under executed customer purchase orders or contracts. Provisions for discounts, rebates and returns are provided for in the same period as the related sales are recorded. | |||
Net Income per Unit | Net Income per Unit | ||
The accounting guidance for earnings per unit requires the Partnership to present basic earnings per unit and diluted earnings per unit. 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, subordinated units and incentive distribution rights outstanding. 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 and subordinated units. | |||
Price Risk Management | Price Risk Management | ||
The accounting guidance for derivative instruments and hedging activities requires that the Partnership and the Predecessor 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. During the years presented, neither the Partnership nor the Predecessor had cash flow hedges. | |||
The Predecessor utilized commodity derivative instruments to reduce price risks by purchasing or selling futures on established exchanges. The Predecessor took both fixed and variable positions, depending upon anticipated future physical purchases and sales of these commodities. The fair value of derivative financial instruments was estimated using quoted market prices in active markets and observable market-based inputs or unobservable inputs that were corroborated by market data when active markets were not available. The Predecessor assessed both counterparty as well as its own nonperformance risk when measuring the fair value of derivative liabilities. The Predecessor did not consider its nonperformance risk to be significant. See Note 15 for a summary of the fair value of derivative instruments. The Partnership did not enter into such instruments since the date of the IPO on August 4, 2014. | |||
Environmental Costs | 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. | |||
Fair Value Of Financial Instruments | Fair Value of Financial Instruments | ||
The amounts reported in the combined and consolidated balance sheets for cash and cash equivalents, accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments. The fair value of the Partnership's senior unsecured revolving credit facility and OpCo's promissory notes payable to Westlake, which were assumed by OpCo in connection with the IPO (the "August 2013 Promissory Notes"), at December 31, 2014, approximates the fair value due to the variable nature of the interest rate. The fair value of financial instruments is estimated using quoted market prices in active markets and observable market-based inputs or unobservable inputs that are corroborated by market data when active markets are not available. See Note 15 for more information on the fair value of financial instruments. | |||
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 Predecessor's operating results were included in Westlake's consolidated U.S. federal and state income tax returns. Amounts presented in the combined financial statements prior to the IPO relate to income taxes that have been determined on a separate tax return basis, and the Predecessor's contribution to Westlake Chemical Corporation's net operating losses and tax credits have been included in the Predecessor's financial statements. The Predecessor utilized the liability method of accounting for deferred income taxes. Under the liability method, deferred tax assets or liabilities are recorded based upon temporary differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes. Deferred tax expense or benefit is the result of changes in the deferred tax assets and liabilities during the period. Valuation allowances were recorded against deferred tax assets when it was considered more likely than not that the deferred tax assets will not be realized on a separate tax return basis. | |||
Employee Benefit Plans | Employee Benefit Plans | ||
The employees supporting the Predecessor's operations were employees of Westlake and its affiliates. Their payroll costs and employee benefit plan costs were charged to the Predecessor by Westlake. Westlake sponsors various employee pension and postretirement health and life insurance plans. The Predecessor was considered to have participated in multiemployer benefit plans of Westlake. As a participant in multiemployer benefit plans, the Predecessor recognized as expense in each period an allocation from Westlake, and the Predecessor did not recognize any employee benefit plan assets or liabilities except for accruals for contributions due. | |||
Segment Reporting | Segment Reporting | ||
The Partnership accounts for segment reporting in accordance with the Financial Accounting Standards Board guidance, which establishes standards for entities to report information about the operating segments and geographic areas in which they operate. 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. | |||
Other Assets | Other Assets | ||
Certain other assets (see Note 8) are amortized over periods ranging from five to 20 years using the straight-line method. | |||
Comprehensive Income | Comprehensive Income | ||
The Partnership has reported no comprehensive income due to the absence of items of other comprehensive income in the years presented. |
Description_Of_Business_And_Si2
Description Of Business And Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
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 | 25 | ||
Plant and equipment | 25 | ||
Ethylene pipeline | 35 | ||
Other | 10-Mar |
Accounts_ReceivableThird_Parti1
Accounts Receivable—Third Parties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivable, Net [Abstract] | |||||||||
Schedule Of Accounts Receivable | Accounts receivable—third parties consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
Trade customers | $ | 37,514 | $ | 73,594 | |||||
Allowance for doubtful accounts | — | (2,105 | ) | ||||||
37,514 | 71,489 | ||||||||
Other | 6 | 323 | |||||||
Accounts receivable, net—third parties | $ | 37,520 | $ | 71,812 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory, Net [Abstract] | |||||||||
Schedule Of Inventory | Inventories consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
Finished products | $ | 6,257 | $ | 21,330 | |||||
Feedstock, additives and chemicals | 377 | 80,407 | |||||||
Materials and supplies | — | 14,640 | |||||||
Inventories | $ | 6,634 | $ | 116,377 | |||||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||
Schedule Of Property, Plant And Equipment | Property, plant and equipment consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
Land | $ | — | $ | 4,126 | |||||
Building and improvements | 14,961 | 32,941 | |||||||
Plant and equipment | 1,151,091 | 1,058,304 | |||||||
Other | 61,533 | 55,478 | |||||||
1,227,585 | 1,150,849 | ||||||||
Less: Accumulated depreciation | (550,568 | ) | (561,301 | ) | |||||
677,017 | 589,548 | ||||||||
Construction in progress | 165,040 | 173,424 | |||||||
Property, plant and equipment, net | $ | 842,057 | $ | 762,972 | |||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||||||||||
Schedule Of Other Assets | Other assets consist of the following: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | Weighted | |||||||||||||||||||||||||
Predecessor | Average | ||||||||||||||||||||||||||
Cost | Accumulated | Net | Cost | Accumulated | Net | Life | |||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||||||||
Technology | $ | — | $ | — | $ | — | $ | 9,618 | $ | (9,618 | ) | $ | — | ||||||||||||||
Goodwill | 5,814 | — | 5,814 | 5,814 | — | 5,814 | |||||||||||||||||||||
Other | — | — | — | 59 | — | 59 | |||||||||||||||||||||
Total intangible assets | 5,814 | — | 5,814 | 15,491 | (9,618 | ) | 5,873 | ||||||||||||||||||||
Turnaround costs | 96,835 | (51,536 | ) | 45,299 | 96,678 | (34,537 | ) | 62,141 | 5 | ||||||||||||||||||
Other | 8,662 | (2,042 | ) | 6,620 | 8,662 | (1,479 | ) | 7,183 | 15 | ||||||||||||||||||
Total deferred charges and | 105,497 | (53,578 | ) | 51,919 | 105,340 | (36,016 | ) | 69,324 | |||||||||||||||||||
other assets | |||||||||||||||||||||||||||
Other assets, net | $ | 111,311 | $ | (53,578 | ) | $ | 57,733 | $ | 120,831 | $ | (45,634 | ) | $ | 75,197 | |||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule Of Long-Term Debt | Long-term debt consists of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Predecessor | |||||||||
2006 Pipeline Note (variable interest rate of prime plus 0.25%, original scheduled | $ | — | $ | 14,400 | |||||
maturity of November 30, 2016) | |||||||||
August 2013 Promissory Notes (variable interest rate of prime plus 1.5%, original | 167,116 | 238,573 | |||||||
scheduled maturity of August 1, 2023) | |||||||||
Senior unsecured revolving credit facility (variable interest rate of LIBOR plus 3.0%, | 60,522 | — | |||||||
original scheduled maturity of August 4, 2019) | |||||||||
Long-term debt payable to Westlake | $ | 227,638 | $ | 252,973 | |||||
Net_Income_Per_Limited_Partner1
Net Income Per Limited Partner Unit (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Net income attributable to the Partnership subsequent to the IPO | $ | 13,577 | |||||||||||||||
Less: | |||||||||||||||||
Limited partners' distribution declared on common units | 6,403 | ||||||||||||||||
Limited partners' distribution declared on subordinated units | 5,649 | ||||||||||||||||
Net income subsequent to the IPO in excess of distribution | $ | 1,525 | |||||||||||||||
31-Dec-14 | |||||||||||||||||
Limited Partners' Common Units | Limited Partners' Subordinated Units | Incentive Distribution Rights | Total | ||||||||||||||
Net income attributable to the Partnership | |||||||||||||||||
subsequent to the IPO: | |||||||||||||||||
Distribution | $ | 6,403 | $ | 5,649 | $ | — | $ | 12,052 | |||||||||
Net income subsequent to the IPO in excess of | 810 | 715 | — | 1,525 | |||||||||||||
distribution | |||||||||||||||||
Net income subsequent to the IPO | $ | 7,213 | $ | 6,364 | $ | — | $ | 13,577 | |||||||||
Weighted average units outstanding: | |||||||||||||||||
Basic and diluted | 14,373,615 | 12,686,115 | 27,059,730 | ||||||||||||||
Net income per limited partner unit: | |||||||||||||||||
Basic and diluted | $ | 0.5 | $ | 0.5 | $ | 0.5 | |||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Schedule of Related Party Transactions | Charges from related parties in cost of sales were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Feedstock purchased from Westlake and included in cost of sales | $ | 155,232 | $ | — | $ | — | |||||||
Other charges from Westlake and included in cost of sales | 60,264 | 61,770 | 57,454 | ||||||||||
Total | $ | 215,496 | $ | 61,770 | $ | 57,454 | |||||||
Sales to related parties were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Net sales—Westlake | $ | 1,292,089 | $ | 1,603,043 | $ | 1,507,501 | |||||||
The related party accounts receivable and accounts payable balances were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Predecessor | |||||||||||||
Accounts receivable, net—Westlake | $ | 18,529 | $ | — | |||||||||
Accounts payable—Westlake | 7,470 | — | |||||||||||
Charges from related parties for goods and services capitalized as assets were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Goods and services purchased from Westlake and capitalized as assets | $ | 5,823 | $ | 20,222 | $ | 8,902 | |||||||
Charges from related parties included within selling, general and administrative expenses were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Services received from Westlake and included in selling, | $ | 21,302 | $ | 24,054 | $ | 22,485 | |||||||
general and administrative expenses | |||||||||||||
Debt payable to related parties was as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Predecessor | |||||||||||||
Long-term debt payable to Westlake | $ | 227,638 | $ | 252,973 | |||||||||
Partners_Equity_Tables
Partners' Equity (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Schedule of Incentive Distributions Made to Managing Members or General Partners by Distribution | If cash distributions to the Partnership's unitholders exceed $0.3163 per common unit and subordinated 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 $0.3163 up to $0.3438 | 85 | % | 15 | % | |||
Above $0.3438 up to $0.4125 | 75 | % | 25 | % | |||
Above $0.4125 | 50 | % | 50 | % |
Derivative_Commodity_Instrumen1
Derivative Commodity Instruments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||
Fair Values Of Derivative Instruments In Consolidated Balance Sheets | The fair values of derivative instruments in the combined and consolidated balance sheets were as follows: | ||||||||||||||
Asset Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value as of December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Predecessor | |||||||||||||||
Not designated as hedging instruments | |||||||||||||||
Commodity forward contracts | Accounts receivable, net | $ | — | $ | 296 | ||||||||||
Total asset derivatives | $ | — | $ | 296 | |||||||||||
Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value as of December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Predecessor | |||||||||||||||
Not designated as hedging instruments | |||||||||||||||
Commodity forward contracts | Accrued liabilities | $ | — | $ | 176 | ||||||||||
Total liability derivatives | $ | — | $ | 176 | |||||||||||
Impact Of Derivative Instruments Designated As Fair Value Hedges | |||||||||||||||
Derivatives in Fair Value | Location of Gain (Loss) | Year Ended December 31, | |||||||||||||
Hedging Relationships | Recognized in Income on Derivative | 2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||||
Commodity forward contracts | Cost of sales | $ | — | $ | (303 | ) | $ | 17,163 | |||||||
Hedged Items in Fair Value | Location of Gain (Loss) | Year Ended December 31, | |||||||||||||
Hedging Relationships | Recognized in Income on | ||||||||||||||
Hedged Items | 2014 | 2013 | 2012 | ||||||||||||
Predecessor | Predecessor | ||||||||||||||
Firm commitment designated as the | Cost of sales | $ | — | $ | 143 | $ | (18,394 | ) | |||||||
hedged item | |||||||||||||||
Impact Of Derivative Instruments Not Designated As Fair Value Hedges | The impact of derivative instruments that have not been designated as hedges in the combined and consolidated statements of operations were as follows: | ||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Year Ended December 31, | |||||||||||||
Hedging Instruments | Recognized in Income on Derivative | 2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||||
Commodity forward contracts | Gross profit | $ | (9,244 | ) | $ | 5,438 | $ | (11,961 | ) | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule Of Assets And Liabilities On A Recurring Basis | The following table summarizes, by level within the fair value hierarchy, the Predecessor's assets and liabilities that were accounted for at fair value on a recurring basis at December 31, 2013: | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Predecessor | |||||||||||||||||
Derivative instruments | |||||||||||||||||
Risk management assets - Commodity forward contracts | $ | 48 | $ | 248 | $ | 296 | |||||||||||
Risk management liabilities - Commodity forward contracts | — | (176 | ) | (176 | ) | ||||||||||||
Schedule Of Carrying And Fair Values Of Long-Term Debt | The carrying and fair values of the Partnership's and the Predecessor's long-term debt at December 31, 2014 and 2013 are summarized in the table below. The Partnership's long-term debt includes the August 2013 Promissory Notes and the senior unsecured revolving credit facility. 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, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
Predecessor | |||||||||||||||||
2006 Pipeline Note | $ | — | $ | — | $ | 14,400 | $ | 13,922 | |||||||||
August 2013 Promissory Notes | 167,116 | 167,116 | 238,573 | 238,573 | |||||||||||||
Senior unsecured revolving credit facility | 60,522 | 60,522 | — | — | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule Of The Provision For (Benefit From) Income Taxes | The components of income tax disaggregated between the Partnership and the Predecessor are as follows: | ||||||||||||||||
Partnership | Predecessor | ||||||||||||||||
Period from August 4, 2014 to December 31, 2014 | Period from January 1, 2014 to August 3, 2014 | Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Current | |||||||||||||||||
Federal | $ | — | $ | 168,773 | $ | 233,014 | $ | 196,467 | |||||||||
State and local | 800 | 21,207 | 30,211 | 22,507 | |||||||||||||
800 | 189,980 | 263,225 | 218,974 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | — | 6,890 | 32,675 | (8,137 | ) | ||||||||||||
State and local | 265 | 1,453 | 4,379 | 41 | |||||||||||||
265 | 8,343 | 37,054 | (8,096 | ) | |||||||||||||
Total provision | $ | 1,065 | $ | 198,323 | $ | 300,279 | $ | 210,878 | |||||||||
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 disaggregated between the Partnership and the Predecessor is as follows: | ||||||||||||||||
Partnership | Predecessor | ||||||||||||||||
Period from August 4, 2014 to December 31, 2014 | Period from January 1, 2014 to August 3, 2014 | Year Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Provision for federal income tax, at statutory rate | $ | 52,343 | $ | 195,880 | $ | 296,389 | $ | 212,379 | |||||||||
State income tax provision, net of federal income tax | 1,065 | 14,729 | 22,484 | 14,656 | |||||||||||||
effect | |||||||||||||||||
Partnership income not subject to entity-level tax | (52,343 | ) | — | — | — | ||||||||||||
Manufacturing deduction | — | (12,214 | ) | (18,270 | ) | (16,065 | ) | ||||||||||
Other, net | — | (72 | ) | (324 | ) | (92 | ) | ||||||||||
$ | 1,065 | $ | 198,323 | $ | 300,279 | $ | 210,878 | ||||||||||
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, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Predecessor | |||||||||||||||||
Credit carryforward | $ | — | $ | 25 | |||||||||||||
Accruals | — | 3,570 | |||||||||||||||
Allowance for doubtful accounts | — | (136 | ) | ||||||||||||||
Inventories | — | 1,313 | |||||||||||||||
Other | — | (373 | ) | ||||||||||||||
Deferred taxes assets—total | — | 4,399 | |||||||||||||||
Property, plant and equipment | (1,650 | ) | (159,033 | ) | |||||||||||||
Turnaround costs | (198 | ) | (23,773 | ) | |||||||||||||
Deferred tax liabilities—total | (1,848 | ) | (182,806 | ) | |||||||||||||
Total net deferred tax liabilities | $ | (1,848 | ) | $ | (178,407 | ) | |||||||||||
Balance sheet classifications | |||||||||||||||||
Current deferred tax asset | $ | — | $ | 4,448 | |||||||||||||
Noncurrent deferred tax liability | (1,848 | ) | (182,855 | ) | |||||||||||||
Total net deferred tax liabilities | $ | (1,848 | ) | $ | (178,407 | ) |
Supplemental_Information_Table
Supplemental Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Schedule of Liabilities Retained By Parent Company | Net Liabilities Retained by Westlake | ||||||||||||
Net liabilities of the Predecessor that were retained by Westlake and not assumed by OpCo in connection with the IPO are composed of the following: | |||||||||||||
Net liabilities retained by Westlake | |||||||||||||
Accounts receivable, net—third parties | $ | 64,650 | |||||||||||
Inventories | 85,057 | ||||||||||||
Prepaid expenses and other current assets | 669 | ||||||||||||
Deferred income taxes | 4,448 | ||||||||||||
Property, plant and equipment, net | 62,886 | ||||||||||||
Equity investments | 9,338 | ||||||||||||
Accounts payable—third parties | (101,671 | ) | |||||||||||
Accrued liabilities | (37,451 | ) | |||||||||||
Deferred income taxes | (189,615 | ) | |||||||||||
Long-term debt | (137,103 | ) | |||||||||||
Other liabilities | (914 | ) | |||||||||||
Total | $ | (239,706 | ) | ||||||||||
Schedule Of Other Income, Net | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Predecessor | Predecessor | ||||||||||||
Income from equity method investment | $ | 2,973 | $ | 4,711 | $ | 4,172 | |||||||
Claims recovery | — | 3,158 | — | ||||||||||
Franchise taxes | (11 | ) | (172 | ) | (144 | ) | |||||||
Other | 189 | 4 | 158 | ||||||||||
Other income, net | $ | 3,151 | $ | 7,701 | $ | 4,186 | |||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future Minimum Lease Commitments | Several of the leases provide for renewal terms. At December 31, 2014, future minimum lease commitments were as follows: | |||
2015 | $ | 1,041 | ||
2016 | 604 | |||
2017 | 443 | |||
2018 | 127 | |||
2019 | 59 | |||
Thereafter | 98 | |||
$ | 2,372 | |||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary Of Quarterly Financial Information | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Predecessor | Predecessor | ||||||||||||||||
Net sales | $ | 560,014 | $ | 524,135 | $ | 392,008 | $ | 273,543 | |||||||||
Gross profit | 232,314 | 246,546 | 164,993 | 101,959 | |||||||||||||
Income from operations | 224,536 | 240,381 | 156,133 | 95,506 | |||||||||||||
Net income | 143,874 | 153,844 | 118,173 | 93,929 | |||||||||||||
Net income attributable to Westlake Chemical Partners LP | |||||||||||||||||
subsequent to the IPO and limited partners' interest | |||||||||||||||||
in net income | |||||||||||||||||
Basic and diluted earnings per common unitholder (1)(2) | $ | 0.19 | $ | 0.32 | |||||||||||||
Basic and diluted earnings per subordinated unitholder (1)(2) | $ | 0.19 | $ | 0.32 | |||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Predecessor | Predecessor | Predecessor | Predecessor | ||||||||||||||
Net sales | $ | 500,917 | $ | 524,759 | $ | 540,133 | $ | 561,938 | |||||||||
Gross profit | 190,010 | 238,155 | 212,981 | 231,461 | |||||||||||||
Income from operations | 183,839 | 231,391 | 206,590 | 225,336 | |||||||||||||
Net income | 120,725 | 149,034 | 132,581 | 144,206 | |||||||||||||
______________________________ | |||||||||||||||||
-1 | Represents quarterly net income per common and subordinated unit since the completion of the Partnership's IPO on August 4, 2014. See Note 10 to the combined and consolidated financial statements. | ||||||||||||||||
-2 | Basic and diluted earnings per common and subordinated unit ("EPU") for each quarter is computed using the weighted average units outstanding during that quarter, while EPU for the period from August 4, 2014 through December 31, 2014 is computed using the weighted average units outstanding for the period. As a result, the sum of the EPU for each of the quarters subsequent to the IPO may not equal the EPU for the period from August 4, 2014 through December 31, 2014. |
Description_Of_Business_And_Si3
Description Of Business And Significant Accounting Policies (Narrative) (Details) (USD $) | 5 Months Ended | 12 Months Ended | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Aug. 04, 2014 |
Segment | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of reportable segments | 1 | ||
Threshold period past due accounts receivable reviewed | 90 days | ||
Capitalized interest | $2,638 | ||
Goodwill | $5,814 | $5,814 | |
Amortization period, minimum (in years) | 3 years | ||
Amortization period, maximum (in years) | 6 years | ||
Other assets amortization period, minimum (in years) | 5 years | ||
Other assets amortization period, maximum (in years) | 20 years | ||
Affiliated Entity [Member] | OpCo LP [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Partnership's ownership interest | 10.60% | ||
Limited Liability Company [Member] | Westlake Chemical OpCo GP LLC [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Partnership's ownership interest | 100.00% | ||
Westlake [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | OpCo LP [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Partnership's ownership interest | 89.40% | ||
Westlake [Member] | Ethylene Sales Agreement [Member] | Investee [Member] | OpCo LP [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Term of sales agreement | 12 years | ||
Minimum percentage required to be purchased | 95.00% | ||
Maximum mass required to be purchased | 3,800,000,000 | ||
Purchase commitment, fixed margin on variable pricing | 0.1 | ||
Expected percentage of production to be sold | 95.00% | ||
OpCo LP [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of production facilities | 3 | ||
Limited Partner [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of units sold in public offering | 12,937,500 | ||
Limited Partner [Member] | Westlake [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Partnership's ownership interest | 5.80% |
Description_Of_Business_And_Si4
Description Of Business And Significant Accounting Policies (Schedule Of Estimated Useful Lives Of Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings And Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 25 years |
Plant And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 25 years |
Ethylene Pipeline [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 35 years |
Minimum [Member] | Other [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Maximum [Member] | Other [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Initial_Public_Offering_Detail
Initial Public Offering (Details) (USD $) | 0 Months Ended | 12 Months Ended | 5 Months Ended | 12 Months Ended | |||
Aug. 04, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Aug. 03, 2014 | Jul. 31, 2013 | Aug. 05, 2014 | Dec. 31, 2013 | |
Limited Partners' Capital Account [Line Items] | |||||||
Net proceeds from issuance of common units | $286,088,000 | ||||||
Payments of unit issuance costs | 24,412,000 | ||||||
OpCo LP [Member] | Loans Payable [Member] | 2013 Promissory Note [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Debt assumed by acquiree | 167,116,000 | ||||||
OpCo LP [Member] | IPO [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Net proceeds from issuance of common units | 286,088,000 | ||||||
OpCo LP [Member] | IPO [Member] | Preformation Capital Expenditure [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Use of proceeds from public offering | 151,729,000 | ||||||
OpCo LP [Member] | IPO [Member] | Cash Reserve Turnaround [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Use of proceeds from public offering | 55,419,000 | ||||||
OpCo LP [Member] | IPO [Member] | Intercompany Debt [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Use of proceeds from public offering | 78,940,000 | ||||||
Westlake [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Excess cash paid over carrying value of partnership interest | 242,572,000 | ||||||
Capital expenditures | 246,056,000 | 151,729,000 | |||||
Common units [Member] | Westlake [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Units outstanding | 1,436,115 | ||||||
Subordinated units [Member] | Westlake [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Units outstanding | 12,686,115 | ||||||
Westlake [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Number of units sold in public offering | 12,937,500 | ||||||
Price per unit | $24 | ||||||
Price per unit, net of underwriting discount | $22.53 | ||||||
Westlake [Member] | Over-Allotment Option [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Number of units sold in public offering | 1,687,500 | ||||||
Westlake [Member] | Westlake [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Partnership's ownership interest | 5.80% | ||||||
OpCo LP [Member] | Affiliated Entity [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Partnership's ownership interest | 10.60% | ||||||
Additional ownership interest acquired | 4.80% | ||||||
Carrying value of additional partnership interest purchased | 43,516,000 | ||||||
OpCo LP [Member] | Westlake [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Partnership's ownership interest | 89.40% | ||||||
OpCo LP [Member] | Westlake [Member] | Ethylene Sales Agreement [Member] | Investee [Member] | |||||||
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 | 3,800,000,000 | ||||||
Number of years used to calculate average expenses | 5 years | ||||||
Purchase commitment, fixed margin on variable pricing | 0.1 | ||||||
Purchase commitment, renewal term | 12 months | ||||||
OpCo LP [Member] | Westlake [Member] | Excess Production Option [Member] | Investee [Member] | |||||||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||||||
Percentage of excess production that can be purchased | 95.00% | ||||||
Purchase commitment, fixed margin on variable pricing | 0.1 | ||||||
OpCo LP [Member] | Westlake [Member] | Feedstock Supply Agreement [Member] | Investee [Member] | |||||||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||||||
Related party transactions, term of agreements | 12 months | ||||||
OpCo LP [Member] | Westlake [Member] | Services And Secondment Agreement [Member] | Investee [Member] | |||||||
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 | ||||||
OpCo LP [Member] | Westlake [Member] | Site Lease Agreement [Member] | Investee [Member] | |||||||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |||||||
Number of lease agreements | 2 | ||||||
Operating lease, rental amount | 1 | ||||||
Term of operating lease | 50 years | ||||||
Westlake Chemical OpCo GP LLC [Member] | Limited Liability Company [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Partnership's ownership interest | 100.00% | ||||||
Westlake [Member] | OpCo LP [Member] | Loans Payable [Member] | 2013 Promissory Note [Member] | Investor [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Debt assumed by acquiree | $246,056,000 | ||||||
Westlake [Member] | Common units [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Units outstanding | 1,436,115 | 1,436,115 | 0 | ||||
Westlake [Member] | Subordinated units [Member] | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Units outstanding | 12,686,115 | 12,686,115 | 0 |
Financial_Instruments_Cash_Equ
Financial Instruments (Cash Equivalents) (Details) (Held-to-maturity securities, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Held-to-maturity securities | |
Cash Equivalents [Line Items] | |
Cash equivalents | $40,003 |
Accounts_ReceivableThird_Parti2
Accounts Receivable—Third Parties (Schedule Of Accounts Receivable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Entity Information [Line Items] | ||
Trade customers | $37,514 | |
Allowance for doubtful accounts | 0 | |
Receivables from trade customers and affiliates, net | 37,514 | |
Other | 6 | |
Accounts receivable, net—third parties | 37,520 | |
Predecessor [Member] | ||
Entity Information [Line Items] | ||
Trade customers | 73,594 | |
Allowance for doubtful accounts | -2,105 | |
Receivables from trade customers and affiliates, net | 71,489 | |
Other | 323 | |
Accounts receivable, net—third parties | $71,812 |
Inventories_Schedule_Of_Invent
Inventories (Schedule Of Inventory) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Entity Information [Line Items] | ||
Finished products | $6,257 | |
Feedstock, additives, and chemicals | 377 | |
Materials and supplies | 0 | |
Inventories | 6,634 | |
Predecessor [Member] | ||
Entity Information [Line Items] | ||
Finished products | 21,330 | |
Feedstock, additives, and chemicals | 80,407 | |
Materials and supplies | 14,640 | |
Inventories | $116,377 |
Property_Plant_And_Equipment_S
Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Land | $0 | ||
Building and improvements | 14,961 | ||
Plant and equipment | 1,151,091 | ||
Other | 61,533 | ||
Property, plant and equipment, gross | 1,227,585 | ||
Less: Accumulated depreciation | -550,568 | ||
Property, plant and equipment, net, before construction in progress | 677,017 | ||
Construction in progress | 165,040 | ||
Property, plant and equipment, net | 842,057 | ||
Depreciation expense | 60,004 | 57,299 | 53,125 |
Predecessor [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Land | 4,126 | ||
Building and improvements | 32,941 | ||
Plant and equipment | 1,058,304 | ||
Other | 55,478 | ||
Property, plant and equipment, gross | 1,150,849 | ||
Less: Accumulated depreciation | -561,301 | ||
Property, plant and equipment, net, before construction in progress | 589,548 | ||
Construction in progress | 173,424 | ||
Property, plant and equipment, net | $762,972 |
Other_Assets_Schedule_Of_Intan
Other Assets (Schedule Of Intangible and Other Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Finite-Lived And Indefinite-Lived Intangible Assets [Line Items] | ||
Goodwill, Cost | 5,814 | |
Goodwill, Net | 5,814 | |
Total intangible assets | 5,814 | |
Total intangible assets, Accumulated Amortization | 0 | |
Total intangible assets, net | 5,814 | |
Other Assets [Line Items] | ||
Turnaround costs, Cost | 96,835 | |
Turnaround costs, Accumulated Amortization | -51,536 | |
Turnaround costs, Net | 45,299 | |
Other, Costs | 8,662 | |
Other, Accumulated Amortization | -2,042 | |
Other, Net | 6,620 | |
Total deferred charges and other assets, Cost | 105,497 | |
Total deferred charges and other assets, Accumulated Amortization | -53,578 | |
Total deferred charges and other assets, Net | 51,919 | |
Other assets, Cost | 111,311 | |
Other assets, Accumulated Amortization | -53,578 | |
Total other assets, net | 57,733 | |
Deferred Turnaround Costs [Member] | ||
Other Assets [Line Items] | ||
Other Assets, Weighted Average Life | 5 years | |
Other Amortizable Assets [Member] | ||
Other Assets [Line Items] | ||
Other Assets, Weighted Average Life | 15 years | |
Other [Member] | ||
Schedule of Finite-Lived And Indefinite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Net | 0 | |
Technology [Member] | ||
Schedule of Finite-Lived And Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Cost | 0 | |
Intangible assets, Accumulated Amortization | 0 | |
Intangible Assets, Net | 0 | |
Predecessor [Member] | ||
Schedule of Finite-Lived And Indefinite-Lived Intangible Assets [Line Items] | ||
Goodwill, Cost | 5,814 | |
Goodwill, Net | 5,814 | |
Total intangible assets | 15,491 | |
Total intangible assets, Accumulated Amortization | -9,618 | |
Total intangible assets, net | 5,873 | |
Other Assets [Line Items] | ||
Turnaround costs, Cost | 96,678 | |
Turnaround costs, Accumulated Amortization | -34,537 | |
Turnaround costs, Net | 62,141 | |
Other, Costs | 8,662 | |
Other, Accumulated Amortization | -1,479 | |
Other, Net | 7,183 | |
Total deferred charges and other assets, Cost | 105,340 | |
Total deferred charges and other assets, Accumulated Amortization | -36,016 | |
Total deferred charges and other assets, Net | 69,324 | |
Other assets, Cost | 120,831 | |
Other assets, Accumulated Amortization | -45,634 | |
Total other assets, net | 75,197 | |
Predecessor [Member] | Other [Member] | ||
Schedule of Finite-Lived And Indefinite-Lived Intangible Assets [Line Items] | ||
Other intangible assets, Net | 59 | |
Predecessor [Member] | Technology [Member] | ||
Schedule of Finite-Lived And Indefinite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Cost | 9,618 | |
Intangible assets, Accumulated Amortization | -9,618 | |
Intangible Assets, Net | $0 |
Other_Assets_Narrative_Details
Other Assets (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Assets [Abstract] | ||||
Amortization expense of other assets | $17,607,000 | $16,164,000 | $11,132,000 | |
Change in carrying amount of goodwill | $0 | |||
Discounted cash flow projections period | 9 years | |||
Rate used to discount future cash flows for goodwill impairment test | 8.80% | |||
Percentage future cash flows of segment could decrease by and not be impaired | 10.00% |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt (Schedule of Long-term Debt) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 04, 2014 |
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 227,638 | ||
Weighted average interest rate on all long-term debt | 4.35% | 4.69% | |
Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 252,973 | ||
Limited Partner [Member] | Senior Notes [Member] | Pipeline Note, 2006 [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 0 | ||
Limited Partner [Member] | Senior Notes [Member] | Pipeline Note, 2006 [Member] | Prime Rate [Member] | |||
Related Party Transaction [Line Items] | |||
Basis spread on variable rate | 0.25% | 0.25% | |
Limited Partner [Member] | Senior Notes [Member] | Pipeline Note, 2006 [Member] | Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 14,400 | ||
Limited Partner [Member] | Senior Notes [Member] | 2013 Promissory Note [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 167,116 | ||
Limited Partner [Member] | Senior Notes [Member] | 2013 Promissory Note [Member] | Prime Rate [Member] | |||
Related Party Transaction [Line Items] | |||
Basis spread on variable rate | 1.50% | 1.50% | |
Limited Partner [Member] | Senior Notes [Member] | 2013 Promissory Note [Member] | Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 238,573 | ||
Limited Partner [Member] | Line of Credit [Member] | Senior Unsecured Revolving Credit Facility [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 60,522 | ||
Limited Partner [Member] | Line of Credit [Member] | Senior Unsecured Revolving Credit Facility [Member] | OpCo LP [Member] | LIBOR | |||
Related Party Transaction [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Limited Partner [Member] | Line of Credit [Member] | Senior Unsecured Revolving Credit Facility [Member] | Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term debt payable to Westlake | 0 |
Net_Income_Per_Limited_Partner2
Net Income Per Limited Partner Unit (Narrative) (Details) (USD $) | 0 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Oct. 28, 2014 | Jan. 30, 2015 |
Subsequent Event [Line Items] | ||
Distribution declared per unit | $0.17 | |
Distribution declared | $4,611 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Distribution declared per unit | $0.28 | |
Distribution declared | $7,441 |
Net_Income_Per_Limited_Partner3
Net Income Per Limited Partner Unit (Income In Excess Of Distribution) (Details) (USD $) | 3 Months Ended | 5 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 |
Limited partners' interest in net income subsequent to IPO | $93,929 | $118,173 | $13,577 |
Distribution declared | 12,052 | ||
Net income subsequent to the IPO in excess of distribution | 1,525 | ||
Common units [Member] | |||
Limited partners' interest in net income subsequent to IPO | 7,213 | ||
Distribution declared | 6,403 | ||
Net income subsequent to the IPO in excess of distribution | 810 | ||
Subordinated units [Member] | |||
Limited partners' interest in net income subsequent to IPO | 6,364 | ||
Distribution declared | 5,649 | ||
Net income subsequent to the IPO in excess of distribution | $715 |
Net_Income_Per_Limited_Partner4
Net Income Per Limited Partner Unit (Basic and Diluted Income Per Limited Partner Unit) (Details) (USD $) | 3 Months Ended | 5 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 |
Limited Partners' Capital Account [Line Items] | |||
Distribution | $12,052 | ||
Net income subsequent to the IPO in excess of distribution | 1,525 | ||
Limited partners' interest in net income subsequent to IPO | 93,929 | 118,173 | 13,577 |
Weighted average units outsanding: | |||
Basic and diluted (units) | 27,059,730 | ||
Net income per limited partner unit: | |||
Income per limited partner unit (usd per unit) | $0.50 | ||
Limited Partners' Common Units [Member] | |||
Limited Partners' Capital Account [Line Items] | |||
Distribution | 6,403 | ||
Net income subsequent to the IPO in excess of distribution | 810 | ||
Limited partners' interest in net income subsequent to IPO | 7,213 | ||
Weighted average units outsanding: | |||
Basic and diluted (units) | 14,373,615 | ||
Net income per limited partner unit: | |||
Income per limited partner unit (usd per unit) | $0.32 | $0.19 | $0.50 |
Limited Partners' Subordinated Units [Member] | |||
Limited Partners' Capital Account [Line Items] | |||
Distribution | 5,649 | ||
Net income subsequent to the IPO in excess of distribution | 715 | ||
Limited partners' interest in net income subsequent to IPO | $6,364 | ||
Weighted average units outsanding: | |||
Basic and diluted (units) | 12,686,115 | ||
Net income per limited partner unit: | |||
Income per limited partner unit (usd per unit) | $0.32 | $0.19 | $0.50 |
Related_Party_Transactions_Sal
Related Party Transactions (Sales to Related Parties) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Net sales - Westlake | $1,292,089 | ||
Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales - Westlake | 1,603,043 | 1,507,501 | |
Affiliated Entity [Member] | Westlake [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales - Westlake | 1,292,089 | ||
Affiliated Entity [Member] | Westlake [Member] | Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Net sales - Westlake | $1,603,043 | $1,507,501 |
Related_Party_Transactions_Cos
Related Party Transactions (Cost of Sales from Related Parties) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Cost of sales | $1,003,888 | ||
Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of sales | 1,255,140 | 1,613,446 | |
Affiliated Entity [Member] | Westlake [Member] | |||
Related Party Transaction [Line Items] | |||
Feedstock purchased from Westlake and included in cost of sales | 155,232 | ||
Other charges from Westlake and included in cost of sales | 60,264 | ||
Cost of sales | 215,496 | ||
Affiliated Entity [Member] | Westlake [Member] | Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Feedstock purchased from Westlake and included in cost of sales | 0 | 0 | |
Other charges from Westlake and included in cost of sales | 61,770 | 57,454 | |
Cost of sales | $61,770 | $57,454 |
Related_Party_Transactions_Ser
Related Party Transactions (Services from Related Parties Included in SG&A Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Services received from Westlake and included in selling, general and administrative expenses | $29,256 | ||
Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Services received from Westlake and included in selling, general and administrative expenses | 25,451 | 24,103 | |
Affiliated Entity [Member] | Westlake [Member] | |||
Related Party Transaction [Line Items] | |||
Services received from Westlake and included in selling, general and administrative expenses | 21,302 | ||
Affiliated Entity [Member] | Westlake [Member] | Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Services received from Westlake and included in selling, general and administrative expenses | $24,054 | $22,485 |
Related_Party_Transactions_Goo
Related Party Transactions (Goods and Services from Related Parties that have been Capitalized) (Details) (Affiliated Entity [Member], Westlake [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Goods and services purchased from Westlake and capitalized as assets | $5,823 | ||
Predecessor [Member] | |||
Related Party Transaction [Line Items] | |||
Goods and services purchased from Westlake and capitalized as assets | $20,222 | $8,902 |
Related_Party_Transactions_Acc
Related Party Transactions (Accounts Receivable from and Accounts Payable to Related Parties) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net—Westlake | $18,529 | |
Accounts payable—Westlake | -7,470 | |
Predecessor [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net—Westlake | 0 | |
Accounts payable—Westlake | 0 | |
Affiliated Entity [Member] | Westlake [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net—Westlake | 18,529 | |
Accounts payable—Westlake | ($7,470) |
Related_Party_Transactions_Deb
Related Party Transactions (Debt Payable to Related Parties) (Details) (USD $) | 5 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Capitalized interest | $2,638 | |
Accrued interest on related party debt | 2,403 | |
Long-term debt payable to Westlake | 227,638 | |
Predecessor [Member] | ||
Related Party Transaction [Line Items] | ||
Long-term debt payable to Westlake | 252,973 | |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued interest on related party debt | 2,403 | 504 |
Affiliated Entity [Member] | Westlake [Member] | ||
Related Party Transaction [Line Items] | ||
Accrued interest | 7,506 | |
Long-term debt payable to Westlake | 227,638 | |
Affiliated Entity [Member] | Westlake [Member] | Predecessor [Member] | ||
Related Party Transaction [Line Items] | ||
Long-term debt payable to Westlake | $252,973 |
Related_Party_Transactions_Gen
Related Party Transactions (General) (Details) (Investee [Member], Westlake [Member], USD $) | 0 Months Ended | |
Aug. 04, 2014 | Dec. 31, 2014 | |
Site Lease Agreement [Member] | OpCo LP [Member] | ||
Related Party Transaction [Line Items] | ||
Number of lease agreements | 2 | |
Term of operating lease | 50 years | |
Operating lease, rental amount | $1 | |
Senior Notes [Member] | ||
Related Party Transaction [Line Items] | ||
Outstanding debt | 754,000,000 | |
Unamortized discount on senior notes | 892,000 | |
Senior unsecured revolving credit facility [Member] | ||
Related Party Transaction [Line Items] | ||
Outstanding letters of credit | $31,392,000 |
Partners_Equity_Incentive_Dist
Partners' Equity (Incentive Distribution Rights) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Distribution Made to Limited Partner [Line Items] | |
Percentage of minimum quarterly distribution partnership must pay to end subordination period | 150.00% |
Threshold of distributions per unit to payout additional distributions | $0.32 |
Cash Distribution [Member] | Common units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Minimum quarterly distribution per unit | $0.28 |
Cash Distribution [Member] | Subordinated units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Minimum quarterly distribution per unit | $0.28 |
Cash Distribution [Member] | Common and Subordinated units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Minimum quarterly distribution per unit | $0.32 |
Partners_Equity_Schedule_of_Qu
Partners' Equity (Schedule of Quarterly Distributions Per Unit) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Above $0.3163 up to $0.3438 | Minimum [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Quarterly Distribution Per Unit, In Excess Of Minimum | $0.32 |
Above $0.3163 up to $0.3438 | Maximum [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Quarterly Distribution Per Unit, In Excess Of Minimum | $0.34 |
Above $0.3163 up to $0.3438 | Unit Holders [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 85.00% |
Above $0.3163 up to $0.3438 | IDR Holders [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 15.00% |
Above $0.3438 up to $0.4125 | Minimum [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Quarterly Distribution Per Unit, In Excess Of Minimum | $0.34 |
Above $0.3438 up to $0.4125 | Maximum [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Quarterly Distribution Per Unit, In Excess Of Minimum | $0.41 |
Above $0.3438 up to $0.4125 | Unit Holders [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 75.00% |
Above $0.3438 up to $0.4125 | IDR Holders [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 25.00% |
Above $0.4125 | Minimum [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Incentive Distribution, Quarterly Distribution Per Unit, In Excess Of Minimum | $0.41 |
Above $0.4125 | Unit Holders [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 50.00% |
Above $0.4125 | IDR Holders [Member] | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | |
Marginal Percentage Interest in Distributions | 50.00% |
UnitBased_Compensation_Details
Unit-Based Compensation (Details) (Westlake Chemical Partners LP Long-Term Incentive Plan [Member], USD $) | 12 Months Ended | 5 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Jul. 15, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units authorized | 1,270,000 | ||
Number of units forfeited | 0 | ||
Total units available for grant | 1,265,596 | 1,265,596 | |
Unrecognized compensation cost | $111 | $111 | |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost | $15 | ||
Phantom units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units granted | 4,404 | ||
DERs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of units granted | 4,404 |
Derivative_Commodity_Instrumen2
Derivative Commodity Instruments (Narrative) (Details) | Dec. 31, 2014 |
derivative | |
Derivative [Line Items] | |
Number of contracts | 0 |
Derivatives Not Designated As Hedging Instrument [Member] | |
Derivative [Line Items] | |
Number of contracts | 0 |
Fair Value Hedging [Member] | Designated as Fair Value Hedges [Member] | |
Derivative [Line Items] | |
Number of contracts | 0 |
Derivative_Commodity_Instrumen3
Derivative Commodity Instruments (Fair Values Of Derivative Instruments In Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Total asset derivatives | $0 | |
Total liability derivatives | 0 | |
Predecessor [Member] | ||
Derivative [Line Items] | ||
Total asset derivatives | 296 | |
Total liability derivatives | 176 | |
Accounts receivable, net [Member] | Commodity forward contracts [Member] | ||
Derivative [Line Items] | ||
Not designated as hedging instruments, Asset Derivatives | 0 | |
Accounts receivable, net [Member] | Commodity forward contracts [Member] | Predecessor [Member] | ||
Derivative [Line Items] | ||
Not designated as hedging instruments, Asset Derivatives | 296 | |
Accrued liabilities [Member] | Commodity forward contracts [Member] | ||
Derivative [Line Items] | ||
Not designated as hedging instruments, Liability Derivatives | 0 | |
Accrued liabilities [Member] | Commodity forward contracts [Member] | Predecessor [Member] | ||
Derivative [Line Items] | ||
Not designated as hedging instruments, Liability Derivatives | $176 |
Derivative_Commodity_Instrumen4
Derivative Commodity Instruments (Impact Of Derivative Instruments Designated As Fair Value Hedges) (Details) (Designated as Fair Value Hedges [Member], Cost of Sales [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commodity forward contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income on Derivative | $0 | ($303) | $17,163 |
Firm commitment designated as the hedged item [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income on Derivative | 0 | ||
Firm commitment designated as the hedged item [Member] | Predecessor [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income on Derivative | $143 | ($18,394) |
Derivative_Commodity_Instrumen5
Derivative Commodity Instruments (Impact Of Derivative Instruments Not Designated As Fair Value Hedges) (Details) (Commodity forward contracts [Member], Derivatives Not Designated As Hedging Instrument [Member], Cost of Sales [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income on Derivative | ($9,244) | ||
Predecessor [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income on Derivative | $5,438 | ($11,961) |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities On A Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Risk management assets | $0 | |
Risk management liabilities | 0 | |
Predecessor [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Risk management assets | 296 | |
Risk management liabilities | -176 | |
Fair Value, Measurements, Recurring [Member] | Commodity forward contracts [Member] | Predecessor [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Risk management assets | 296 | |
Risk management liabilities | -176 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commodity forward contracts [Member] | Predecessor [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Risk management assets | 48 | |
Risk management liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commodity forward contracts [Member] | Predecessor [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Risk management assets | 248 | |
Risk management liabilities | ($176) |
Fair_Value_Measurements_Schedu1
Fair Value Measurements (Schedule Of Carrying And Fair Values Of Long-Term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
3.60% Senior Notes Due 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value | $0 | |
Senior Notes, Fair Value | 0 | |
3.60% Senior Notes Due 2022 [Member] | Predecessor [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value | 14,400 | |
Senior Notes, Fair Value | 13,922 | |
GO Zone 6 1/2% Senior Notes Due 2029 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value | 167,116 | |
Senior Notes, Fair Value | 167,116 | |
GO Zone 6 1/2% Senior Notes Due 2029 [Member] | Predecessor [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value | 238,573 | |
Senior Notes, Fair Value | 238,573 | |
GO Zone 6 3/4% Senior Notes Due 2032 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value | 60,522 | |
Senior Notes, Fair Value | 60,522 | |
GO Zone 6 3/4% Senior Notes Due 2032 [Member] | Predecessor [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Carrying Value | 0 | |
Senior Notes, Fair Value | $0 |
Income_Taxes_Schedule_Of_The_P
Income Taxes (Schedule Of The Provision For (Benefit From) Income Taxes) (Details) (USD $) | 5 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Aug. 03, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Entity Information [Line Items] | |||||
Federal | $0 | ||||
State and local | 800 | ||||
Total Current | 800 | ||||
Federal | 0 | ||||
State and local | 265 | ||||
Total deferred | 265 | 8,608 | |||
Total provision | 1,065 | 199,388 | |||
Predecessor [Member] | |||||
Entity Information [Line Items] | |||||
Federal | 168,773 | 233,014 | 196,467 | ||
State and local | 21,207 | 30,211 | 22,507 | ||
Total Current | 189,980 | 263,225 | 218,974 | ||
Federal | 6,890 | 32,675 | -8,137 | ||
State and local | 1,453 | 4,379 | 41 | ||
Total deferred | 8,343 | 37,054 | -8,096 | ||
Total provision | $198,323 | $300,279 | $210,878 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Taxes Computed At The Statutory Rate To Income Tax Expense) (Details) (USD $) | 5 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Aug. 03, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Entity Information [Line Items] | |||||
Provision for federal income tax, at statutory rate | $52,343 | ||||
State income tax provision, net of federal income tax effect | 1,065 | ||||
Partnership income not subject to entity-level tax | -52,343 | ||||
Manufacturing deduction | 0 | ||||
Other, net | 0 | ||||
Provision for income taxes | 1,065 | 199,388 | |||
Predecessor [Member] | |||||
Entity Information [Line Items] | |||||
Provision for federal income tax, at statutory rate | 195,880 | 296,389 | 212,379 | ||
State income tax provision, net of federal income tax effect | 14,729 | 22,484 | 14,656 | ||
Partnership income not subject to entity-level tax | 0 | 0 | 0 | ||
Manufacturing deduction | -12,214 | -18,270 | -16,065 | ||
Other, net | -72 | -324 | -92 | ||
Provision for income taxes | $198,323 | $300,279 | $210,878 |
Income_Taxes_Schedule_Of_Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Entity Information [Line Items] | ||
Credit carryforward | $0 | |
Accruals | 0 | |
Allowance for doubtful accounts | 0 | |
Inventories | 0 | |
Other | 0 | |
Deferred taxes assets, total | 0 | |
Property, plant and equipment | -1,650 | |
Turnaround costs | -198 | |
Deferred tax liabilities-total | -1,848 | |
Total net deferred tax liabilities | -1,848 | |
Balance sheet classifications | ||
Current deferred tax asset | 0 | |
Noncurrent deferred tax liability | -1,848 | |
Total net deferred tax liabilities | -1,848 | |
Predecessor [Member] | ||
Entity Information [Line Items] | ||
Credit carryforward | 25 | |
Accruals | 3,570 | |
Allowance for doubtful accounts | -136 | |
Inventories | 1,313 | |
Other | -373 | |
Deferred taxes assets, total | 4,399 | |
Property, plant and equipment | -159,033 | |
Turnaround costs | -23,773 | |
Deferred tax liabilities-total | -182,806 | |
Total net deferred tax liabilities | -178,407 | |
Balance sheet classifications | ||
Current deferred tax asset | 4,448 | |
Noncurrent deferred tax liability | -182,855 | |
Total net deferred tax liabilities | ($178,407) |
Supplemental_Information_Liabi
Supplemental Information (Liabilities Retained by Westlake) (Details) (USD $) | Dec. 31, 2014 | Aug. 04, 2014 |
In Thousands, unless otherwise specified | ||
Entity Information [Line Items] | ||
Accounts receivable, net—third parties | $37,520 | |
Inventories | 6,634 | |
Prepaid expenses and other current assets | 212 | |
Deferred income taxes | 0 | |
Property, plant and equipment, net | 842,057 | |
Equity investments | 0 | |
Accounts payable - third parties | -12,614 | |
Accrued liabilities | -11,900 | |
Deferred income taxes | -1,848 | |
Westlake [Member] | ||
Entity Information [Line Items] | ||
Accounts receivable, net—third parties | 64,650 | |
Inventories | 85,057 | |
Prepaid expenses and other current assets | 669 | |
Deferred income taxes | 4,448 | |
Property, plant and equipment, net | 62,886 | |
Equity investments | 9,338 | |
Accounts payable - third parties | -101,671 | |
Accrued liabilities | -37,451 | |
Deferred income taxes | -189,615 | |
Long-term debt payable to Westlake | -137,103 | |
Other liabilities | -914 | |
Total | ($239,706) |
Supplemental_Information_Accru
Supplemental Information (Accrued Liabilities and Other Income, Net) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Liabilities | |||
Accrued liabilities | $11,900 | ||
Accrued taxes | 1,622 | ||
Interest accrued on long-term debt | 2,403 | ||
Accrual related to capital expenditures | 5,026 | ||
Accrued employee payroll and benefits | 10,598 | ||
Other Income, Net | |||
Income from equity method investment | 2,973 | ||
Claims recovery | 0 | ||
Franchise taxes | 11 | ||
Other | 189 | ||
Other income, net | 3,151 | ||
Predecessor [Member] | |||
Accrued Liabilities | |||
Accrued liabilities | 26,688 | ||
Other Income, Net | |||
Income from equity method investment | 4,711 | 4,172 | |
Claims recovery | 3,158 | 0 | |
Franchise taxes | 172 | 144 | |
Other | 4 | 158 | |
Other income, net | $7,701 | $4,186 |
Supplemental_Information_Cash_
Supplemental Information (Cash Flow Information) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Reduction in capital expenditure accrual | ($418,000) | ($7,937,000) | ($1,333,000) |
Interest paid, net of interest capitalized | 1,366,000 | ||
Westlake [Member] | Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Related party notes payable deemed settled through net investment | 238,600,000 | ||
Cash transferred in related party notes payable settlement | 0 | ||
Predecessor [Member] | Westlake [Member] | Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Interest incurred, added to principal on promissory notes outstanding | $9,315,000 | $7,506,000 |
Major_Customer_and_Concentrati1
Major Customer and Concentration Risk (Details) (Net sales [Member], Customer Concentration Risk [Member], Westlake [Member], Affiliated Entity [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net sales [Member] | Customer Concentration Risk [Member] | Westlake [Member] | Affiliated Entity [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 73.80% | 75.30% | 67.00% |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Costs sought to be recovered by plaintiffs | $1,400 | |
Threatened Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Costs sought to be recovered by plaintiffs | 100 | |
Polyone [Member] | ||
Loss Contingencies [Line Items] | ||
Environmental costs percentage net of recoveries from third parties | 100.00% | |
Costs incurred for environmental remediation services | $2,805 | $3,284 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Future Minimum Lease Commitments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
2015 | $1,041 | ||
2016 | 604 | ||
2017 | 443 | ||
2018 | 127 | ||
2019 | 59 | ||
Thereafter | 98 | ||
Total future minimum lease commitments | 2,372 | ||
Approximate rental expense | $3,558 | $3,933 | $2,999 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Oct. 28, 2014 | Jan. 30, 2015 |
Subsequent Event [Line Items] | ||
Distribution declared per unit | $0.17 | |
Distribution declared | $4,611 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Distribution declared per unit | $0.28 | |
Distribution declared | $7,441 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Summary Of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 5 Months Ended | 12 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Aug. 03, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $273,543 | $392,008 | $1,749,700 | ||||||||||
Gross profit | 101,959 | 164,993 | 745,812 | ||||||||||
Income from operations | 95,506 | 156,133 | 716,556 | ||||||||||
Net income | 93,929 | 118,173 | 13,577 | ||||||||||
Basic and diluted earnings per common unit holder (usd per unit) | $0.50 | ||||||||||||
Common units [Member] | |||||||||||||
Net income | 7,213 | ||||||||||||
Basic and diluted earnings per common unit holder (usd per unit) | $0.32 | $0.19 | $0.50 | ||||||||||
Subordinated units [Member] | |||||||||||||
Net income | 6,364 | ||||||||||||
Basic and diluted earnings per common unit holder (usd per unit) | $0.32 | $0.19 | $0.50 | ||||||||||
Predecessor [Member] | |||||||||||||
Net sales | 524,135 | 560,014 | 561,938 | 540,133 | 524,759 | 500,917 | 2,127,747 | 2,249,098 | |||||
Gross profit | 246,546 | 232,314 | 231,461 | 212,981 | 238,155 | 190,010 | 872,607 | 635,652 | |||||
Income from operations | 240,381 | 224,536 | 225,336 | 206,590 | 231,391 | 183,839 | 847,156 | 611,549 | |||||
Net income | $153,844 | $143,874 | $144,206 | $132,581 | $149,034 | $120,725 | $361,334 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $2,105 | $2,065 | $1,983 |
Charged to Expense | 65 | 40 | 82 |
Additions/ (Deductions) | -2,170 | 0 | 0 |
Balance at End of Year | $0 | $2,105 | $2,065 |