Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 28, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WLKP | |
Entity Registrant Name | WESTLAKE CHEMICAL PARTNERS LP | |
Entity Central Index Key | 1,604,665 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
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 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 154,257 | $ 133,750 |
Accounts receivable, net—Westlake Chemical Corporation (Westlake) | 44,035 | 18,529 |
Accounts receivable, net—third parties | 14,479 | 37,520 |
Inventories | 3,272 | 6,634 |
Prepaid expenses and other current assets | 382 | 212 |
Total current assets | 216,425 | 196,645 |
Property, plant and equipment, net | 962,221 | 842,057 |
Other assets, net | ||
Goodwill | 5,814 | 5,814 |
Deferred charges and other assets, net | 40,728 | 51,919 |
Total other assets, net | 46,542 | 57,733 |
Total assets | 1,225,188 | 1,096,435 |
Current liabilities | ||
Accounts payable—Westlake | 9,288 | 7,470 |
Accounts payable—third parties | 24,871 | 12,614 |
Accrued liabilities | 22,352 | 11,900 |
Total current liabilities | 56,511 | 31,984 |
Long-term debt payable to Westlake | 330,495 | 227,638 |
Deferred income taxes | 1,489 | 1,848 |
Other liabilities | 219 | 15 |
Total liabilities | $ 388,714 | $ 261,485 |
Commitments and contingencies (Notes 9 and 16) | ||
EQUITY | ||
Accumulated other comprehensive loss | $ (173) | $ 0 |
Total Westlake Chemical Partners LP partners' capital | 93,425 | 87,524 |
Noncontrolling interest in Westlake Chemical OpCo LP (OpCo) | 743,049 | 747,426 |
Total equity | 836,474 | 834,950 |
Total liabilities and equity | 1,225,188 | 1,096,435 |
Limited Partner [Member] | Common units [Member] | Public [Member] | ||
EQUITY | ||
Limited Partners' Capital Account | 293,282 | 290,377 |
Total equity | 293,282 | 290,377 |
Limited Partner [Member] | Common units [Member] | Westlake [Member] | ||
EQUITY | ||
Limited Partners' Capital Account | 4,360 | 4,038 |
Total equity | 4,360 | 4,038 |
Limited Partner [Member] | Subordinated units [Member] | Westlake [Member] | ||
EQUITY | ||
Limited Partners' Capital Account | 38,528 | 35,681 |
Total equity | 38,528 | 35,681 |
General Partner [Member] | Westlake [Member] | ||
EQUITY | ||
General Partners' Capital Account | (242,572) | (242,572) |
Total equity | $ (242,572) | $ (242,572) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common units [Member] | Westlake [Member] | ||
Units issued | 1,436,115 | 1,436,115 |
Units outstanding | 1,436,115 | 1,436,115 |
Common units [Member] | Public [Member] | ||
Units issued | 12,937,500 | 12,937,500 |
Units outstanding | 12,937,500 | 12,937,500 |
Subordinated units [Member] | Westlake [Member] | ||
Units issued | 12,686,115 | 12,686,115 |
Units outstanding | 12,686,115 | 12,686,115 |
Combined and Consolidated Stat
Combined and Consolidated Statements of Operations - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net sales - Westlake | $ 207,856 | $ 289,601 | $ 621,438 | $ 1,088,561 | |
Net co-product, ethylene and feedstock sales—third parties | 40,763 | 102,407 | 137,277 | 387,596 | |
Total net sales | 248,619 | 392,008 | 758,715 | 1,476,157 | |
Cost of sales | 154,474 | 227,015 | 473,815 | 832,304 | |
Gross profit | 94,145 | 164,993 | 284,900 | 643,853 | |
Selling, general and administrative expenses | 5,831 | 8,860 | 17,826 | 22,803 | |
Income from operations | 88,314 | 156,133 | 267,074 | 621,050 | |
Other income (expense) | |||||
Interest expense—Westlake | (1,054) | (2,137) | (3,794) | (9,833) | |
Other (expense) income, net | (73) | 486 | (35) | 3,135 | |
Income before income taxes | 87,187 | 154,482 | 263,245 | 614,352 | |
Provision for income taxes | 141 | 36,309 | 567 | 198,461 | |
Net income | $ 54,557 | 87,046 | $ 118,173 | 262,678 | $ 415,891 |
Less: Net income attributable to noncontrolling interest in OpCo | 49,542 | 76,943 | 233,632 | ||
Net income attributable to Westlake Chemical Partners LP subsequent to initial public offering | $ 5,015 | $ 10,103 | $ 29,046 | ||
Net income attributable to Westlake Chemical Partners LP per limited partner unit (basic and diluted) | |||||
Income per limited partner unit (usd per share) | $ 0.37 | $ 1.07 | |||
Weighted average limited partner units outstanding (basic and diluted) | |||||
Weighted average limited partner units outstanding (shares) | 27,059,730 | 27,059,730 | |||
Common units [Member] | |||||
Other income (expense) | |||||
Net income attributable to Westlake Chemical Partners LP subsequent to initial public offering | $ 5,365 | $ 15,429 | |||
Net income attributable to Westlake Chemical Partners LP per limited partner unit (basic and diluted) | |||||
Income per limited partner unit (usd per share) | $ 0.37 | $ 0.19 | $ 1.07 | $ 0.19 | |
Weighted average limited partner units outstanding (basic and diluted) | |||||
Weighted average limited partner units outstanding (shares) | 14,373,615 | 14,373,615 | |||
Common units [Member] | Public [Member] | |||||
Weighted average limited partner units outstanding (basic and diluted) | |||||
Weighted average limited partner units outstanding (shares) | 12,937,500 | 12,937,500 | 12,937,500 | 12,937,500 | |
Common units [Member] | Westlake [Member] | |||||
Weighted average limited partner units outstanding (basic and diluted) | |||||
Weighted average limited partner units outstanding (shares) | 1,436,115 | 1,436,115 | 1,436,115 | 1,436,115 | |
Subordinated units [Member] | |||||
Other income (expense) | |||||
Net income attributable to Westlake Chemical Partners LP subsequent to initial public offering | $ 4,738 | $ 13,617 | |||
Net income attributable to Westlake Chemical Partners LP per limited partner unit (basic and diluted) | |||||
Income per limited partner unit (usd per share) | $ 0.37 | $ 0.19 | $ 1.07 | $ 0.19 | |
Weighted average limited partner units outstanding (basic and diluted) | |||||
Weighted average limited partner units outstanding (shares) | 12,686,115 | 12,686,115 | |||
Subordinated units [Member] | Westlake [Member] | |||||
Weighted average limited partner units outstanding (basic and diluted) | |||||
Weighted average limited partner units outstanding (shares) | 12,686,115 | 12,686,115 | 12,686,115 | 12,686,115 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 87,046 | $ 118,173 | $ 262,678 | $ 415,891 |
Change in fair value of cash flow hedge | (223) | 0 | (223) | 0 |
Reclassification of loss to net income | 50 | 0 | 50 | 0 |
Total other comprehensive loss | (173) | 0 | (173) | 0 |
Comprehensive income | 86,873 | 54,557 | 262,505 | 54,557 |
Comprehensive income attributable to noncontrolling interest in OpCo | 76,943 | 49,542 | 233,632 | 49,542 |
Comprehensive income attributable to Westlake Chemical Partners LP subsequent to initial public offering | $ 9,930 | $ 5,015 | $ 28,873 | $ 5,015 |
Combined and Consolidated State
Combined and Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Noncontrolling Interest in OpCo [Member] | Accumulated Other Comprehensive Loss [Member] | Westlake [Member]General Partner [Member] | Common units [Member]Public [Member]Limited Partner [Member] | Common units [Member]Westlake [Member]Limited Partner [Member] | Subordinated units [Member]Westlake [Member]Limited Partner [Member] |
Equity, beginning balance (Predecessor [Member]) at Dec. 31, 2013 | $ 455,432 | ||||||
Equity, beginning balance at Dec. 31, 2013 | 455,432 | ||||||
Net income | Predecessor [Member] | 361,334 | ||||||
Net income | 361,334 | ||||||
Net distributions to Westlake prior to initial public offering | Predecessor [Member] | (448,101) | ||||||
Net distributions to Westlake prior to initial public offering | (448,101) | ||||||
Predecessor net liabilities not assume by OpCo | Predecessor [Member] | 239,706 | ||||||
Predecessor net liabilities not assume by OpCo | 239,706 | ||||||
Equity, ending balance (Predecessor [Member]) at Aug. 03, 2014 | 608,371 | ||||||
Equity, ending balance at Aug. 03, 2014 | 608,371 | ||||||
Equity, beginning balance (Predecessor [Member]) at Dec. 31, 2013 | 455,432 | ||||||
Equity, beginning balance at Dec. 31, 2013 | 455,432 | ||||||
Net income | 415,891 | ||||||
Equity, ending balance (Predecessor [Member]) at Sep. 30, 2014 | 0 | ||||||
Equity, ending balance at Sep. 30, 2014 | 797,287 | $ 713,714 | $ 0 | $ (242,572) | $ 288,487 | $ 3,828 | $ 33,830 |
Equity, beginning balance (Predecessor [Member]) at Aug. 03, 2014 | 608,371 | ||||||
Equity, beginning balance at Aug. 03, 2014 | 608,371 | ||||||
Net income | 54,557 | 49,542 | 2,399 | 265 | 2,351 | ||
Allocation of net investment to unitholders | Predecessor [Member] | (608,371) | ||||||
Allocation of net investment to unitholders | 0 | 573,329 | 3,563 | 31,479 | |||
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) | |||||
Equity, ending balance (Predecessor [Member]) at Sep. 30, 2014 | 0 | ||||||
Equity, ending balance at Sep. 30, 2014 | 797,287 | 713,714 | 0 | (242,572) | 288,487 | 3,828 | 33,830 |
Equity, beginning balance (Predecessor [Member]) at Dec. 31, 2014 | 0 | ||||||
Equity, beginning balance at Dec. 31, 2014 | 834,950 | 747,426 | 0 | (242,572) | 290,377 | 4,038 | 35,681 |
Net income | 262,678 | 233,632 | 13,887 | 1,542 | 13,617 | ||
Net effect of cash flow hedge | (173) | (173) | |||||
Quarterly distributions to unitholders | (22,972) | (10,982) | (1,220) | (10,770) | |||
Quarterly distributions to noncontrolling interest retained in OpCo by Westlake | (238,009) | (238,009) | |||||
Equity, ending balance (Predecessor [Member]) at Sep. 30, 2015 | 0 | ||||||
Equity, ending balance at Sep. 30, 2015 | $ 836,474 | $ 743,049 | $ (173) | $ (242,572) | $ 293,282 | $ 4,360 | $ 38,528 |
Combined and Consolidated Stat7
Combined and Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 262,678 | $ 415,891 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 60,637 | 58,501 |
Provision for doubtful accounts | 170 | 65 |
Loss from disposition of fixed assets | 278 | 1,244 |
Deferred income taxes | (359) | 8,267 |
Income from equity method investment, net of dividends | 0 | 1,073 |
Changes in operating assets and liabilities | ||
Accounts receivable—third parties | 22,871 | (23,637) |
Net accounts receivable—Westlake | (23,688) | (10,373) |
Inventories | 3,362 | 25,769 |
Prepaid expenses and other current assets | (170) | (715) |
Accounts payable | 4,851 | (8,226) |
Accrued and other liabilities | 2,039 | 7,633 |
Other, net | (1,466) | 10,498 |
Net cash provided by operating activities | 331,203 | 485,990 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (152,572) | (144,348) |
Settlements of derivative instruments | 0 | (133) |
Net cash used for investing activities | (152,572) | (144,481) |
Cash flows from financing activities | ||
Proceeds from debt payable to Westlake | 238,198 | 141,161 |
Repayment of debt payable to Westlake | (135,341) | 0 |
Repayment of related party debt with proceeds from the initial public offering | 0 | (78,940) |
Net proceeds from issuance of common units | 0 | 286,088 |
Proceeds from initial public offering distributed to Westlake | 0 | (151,729) |
Net distributions to Westlake prior to initial public offering | 0 | (448,101) |
Quarterly distributions to noncontrolling interest retained in OpCo by Westlake | (238,009) | 0 |
Quarterly distributions to unitholders | (22,972) | 0 |
Net cash used for financing activities | (158,124) | (251,521) |
Net increase in cash and cash equivalents | 20,507 | 89,988 |
Cash and cash equivalents at beginning of period | 133,750 | 0 |
Cash and cash equivalents at end of period | $ 154,257 | $ 89,988 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Westlake Chemical Partners LP (the "Partnership") is a Delaware limited partnership formed in March 2014 to operate, acquire and develop facilities and related assets for the processing of natural gas liquids. On August 4, 2014, the Partnership completed its initial public offering (the "IPO") of 12,937,500 common units representing limited partner interests. In connection with the IPO, the Partnership acquired a 10.6% 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. On April 29, 2015, the Partnership purchased an additional 2.7% newly-issued limited partner interest in OpCo for approximately $135,341 , resulting in an aggregate 13.3% limited partner interest in OpCo effective April 1, 2015. OpCo owns three natural gas liquids processing facilities and a common carrier ethylene pipeline. Basis of Presentation The accompanying unaudited combined and consolidated interim financial statements were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim periods. Accordingly, certain information and footnotes required for complete financial statements under generally accepted accounting principles in the United States ("U.S. GAAP") have not been included. These interim combined and consolidated financial statements should be read in conjunction with the December 31, 2014 combined and consolidated financial statements and notes thereto of the Partnership included in the annual report on Form 10-K for the fiscal year ended December 31, 2014 (the "2014 Form 10-K"), filed with the SEC on March 9, 2015. These financial statements have been prepared in conformity with the accounting principles and practices as disclosed in the notes to the combined and consolidated financial statements of the Partnership for the fiscal year ended December 31, 2014. Unless the context otherwise requires, references in this report 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 this report to the Partnership used in the present tense or prospectively refer to Westlake Chemical Partners LP and refer to the periods subsequent to the IPO. References to "Westlake" refer collectively to Westlake Chemical Corporation and its subsidiaries, other than the Partnership, OpCo and OpCo GP. The Partnership holds a 13.3% limited partner interest and the entire non-economic general partner interest in OpCo. The remaining 86.7% limited partner interest in OpCo is owned 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 86.7% is recorded as noncontrolling interest in the Partnership's consolidated financial statements. 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, changes in equity 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 subsidiary, OpCo. The combined and consolidated financial statements for the three and nine months ended September 30, 2014 were prepared as follows: • The combined and consolidated statement of operations for the three months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014 and the combined results of the Predecessor for the period from July 1, 2014 through August 3, 2014. The combined and consolidated statement of operations for the nine months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014. • The consolidated statement of other comprehensive income for the three and nine months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014. • The combined and consolidated statement of changes in equity for the nine months ended September 30, 2014 consists of the combined activity for the Predecessor prior to August 4, 2014, and the consolidated activity for the Partnership completed at and subsequent to the IPO on August 4, 2014. • The combined and consolidated statement of cash flows for the nine months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014. In the opinion of the Partnership's management, the accompanying unaudited combined and consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Partnership's financial position as of September 30, 2015 , its results of operations for the three and nine months ended September 30, 2015 and 2014 and the changes in its cash position for the nine months ended September 30, 2015 and 2014 . Results of operations and changes in cash position for the interim periods presented are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2015 or any other period. The preparation of financial statements in conformity with U.S. GAAP 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 materially from those estimates. 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. In July 2015, the FASB deferred the effective date for the revenue recognition standard. The accounting standard will now be effective for reporting periods beginning after December 15, 2017. 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. Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In January 2015, the FASB issued an accounting standards update to simplify income statement classification by removing the concept of extraordinary items from U.S. GAAP. Under the new standard, an unusual and infrequent event or transaction is no longer allowed to be separately disclosed as "extraordinary." The standard retains the existing requirement to separately present items that are of an unusual nature or occur infrequently on a pre-tax basis within income from continuing operations. The new guidance also requires similar separate presentation of items that are both unusual and infrequent on a pre-tax basis within income from continuing operations. The standard allows for either prospective or retrospective application. If adopted prospectively, both the nature and amount of any subsequent adjustments to previously reported extraordinary items must be disclosed. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have an impact on the Partnership's consolidated financial position, results of operations and cash flows. Amendments to the Consolidation Analysis In February 2015, the FASB issued an accounting standards update making certain changes to the current consolidation guidance. The amendments affect both the variable interest entity and voting interest entity consolidation models. The new standard changes the consideration of substantive rights, related party interests and fees paid to the decision maker when applying the variable interest entity consolidation model and eliminate certain guidance for limited partnerships and similar entities under the voting interest consolidation model. The accounting standard will be effective for reporting periods beginning after December 15, 2015 and is not expected to have an impact on the Partnership's consolidated financial position, results of operations and cash flows. Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions In April 2015, the FASB issued an accounting standard update requiring that the earnings of transferred net assets from a general partner prior to the dropdown date of the net assets to a master limited partnership be allocated entirely to the general partner when calculating earnings per unit under the two class method. As a result, previously reported earnings per unit of the limited partners will not change as a result of a dropdown transaction. The accounting standard will be effective for reporting periods and interim periods within those reporting periods beginning after December 15, 2015. Simplifying the Measurement of Inventory In July 2015, the FASB issued an accounting standards update that requires entities to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Under the new standard, entities will no longer need to calculate other measures of "market." The new accounting guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. The accounting standard will be effective for reporting periods beginning after December 15, 2016 and is not expected to have a significant impact on the Partnership's consolidated financial position, results of operations and cash flows. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents The Partnership had $75,025 and $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 September 30, 2015 and December 31, 2014 , respectively. The Partnership's investments in held-to-maturity securities are held at amortized cost, which approximates fair value. |
Accounts Receivable - Third Par
Accounts Receivable - Third Parties | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable - Third Parties | Accounts Receivable—Third Parties Accounts receivable—third parties consist of the following: September 30, December 31, Trade customers $ 14,649 $ 37,514 Allowance for doubtful accounts (170 ) — 14,479 37,514 Other — 6 Accounts receivable, net—third parties $ 14,479 $ 37,520 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, Finished products $ 2,895 $ 6,257 Feedstock, additives and chemicals 377 377 Inventories $ 3,272 $ 6,634 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of September 30, 2015 , the Partnership had property, plant and equipment, net totaling $962,221 . The Partnership assesses these 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 U.S. 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. Depreciation expense on property, plant and equipment of $16,231 and $14,900 is included in cost of sales in the combined and consolidated statements of operations for the three months ended September 30, 2015 and 2014 , respectively. Depreciation expense on property, plant and equipment of $48,006 and $45,104 is included in cost of sales in the combined and consolidated statements of operations for the nine months ended September 30, 2015 and 2014 , respectively. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2015 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Amortization expense on other assets of $4,211 and $4,319 is included in the combined and consolidated statements of operations for the three months ended September 30, 2015 and 2014 , respectively. Amortization expense on other assets of $12,631 and $13,397 is included in the combined and consolidated statements of operations for the nine months ended September 30, 2015 and 2014 , respectively. |
Net Income Per Limited Partner
Net Income Per Limited Partner Unit | 9 Months Ended |
Sep. 30, 2015 | |
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 by the weighted-average number of common units and subordinated units outstanding for the period. Because the Partnership has more than one class of participating securities, it uses the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units, subordinated units and incentive distribution rights. Basic and diluted net income per unit are the same because the Partnership does not have any potentially dilutive units outstanding for the periods presented. On October 28, 2015, the board of directors of Westlake Chemical Partners GP LLC ("Westlake GP"), the Partnership's general partner, declared a quarterly cash distribution for the period from July 1, 2015 through September 30, 2015 of $0.2994 per unit, or $8,102 in total. This distribution is payable on November 27, 2015 to unitholders of record as of November 9, 2015. On July 29, 2015, the board of directors of Westlake GP declared a quarterly cash distribution for the period from April 1, 2015 through June 30, 2015 of $0.2910 per unit, or $7,874 in total. This distribution was paid on August 27, 2015 to unitholders of record as of August 13, 2015. On April 29, 2015, the board of directors of Westlake GP declared a quarterly cash distribution for the period from January 1, 2015 through March 31, 2015 of $0.2829 per unit, or $ 7,655 in total. This distribution was paid on May 27, 2015 to unitholders of record as of May 12, 2015. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income attributable to the Partnership $ 10,103 $ 5,015 $ 29,046 $ 5,015 Less: Limited partners' distribution declared on common units 4,304 2,449 12,552 2,449 Limited partners' distribution declared on subordinated units 3,798 2,162 11,079 2,162 Net income in excess of distribution $ 2,001 $ 404 $ 5,415 $ 404 Three Months Ended September 30, 2015 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 4,304 $ 3,798 $ — $ 8,102 Net income in excess of distribution 1,061 940 — 2,001 Net income $ 5,365 $ 4,738 $ — $ 10,103 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 $ 0.37 $ 0.37 $ 0.37 Nine Months Ended September 30, 2015 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 12,552 $ 11,079 $ — $ 23,631 Net income in excess of distribution 2,877 2,538 — 5,415 Net income $ 15,429 $ 13,617 $ — $ 29,046 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 $ 1.07 $ 1.07 $ 1.07 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
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, each of 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: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net sales—Westlake $ 207,856 $ 289,601 $ 621,438 $ 1,088,561 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: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Feedstock purchased from Westlake and included in cost of sales $ 75,752 $ 63,108 $ 232,584 $ 63,108 Other charges from Westlake and included in cost of sales 20,457 13,879 53,948 47,000 Total $ 96,209 $ 76,987 $ 286,532 $ 110,108 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. Management believes the allocations of expenses incurred by Westlake on the Predecessor's behalf are reasonable and reflect all costs related to the operations of the Predecessor. Nevertheless, the financial information of the Predecessor may not have included all of the expenses that would have been incurred had the Predecessor been a stand-alone company during the periods prior to the IPO. Charges from related parties included within selling, general and administrative expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Services received from Westlake and included in selling, general and administrative expenses $ 4,772 $ 4,283 $ 14,891 $ 15,901 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: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Goods and services purchased from Westlake and capitalized as assets $ 1,304 $ 830 $ 3,241 $ 2,074 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. The related party accounts receivable and accounts payable balances were as follows: September 30, December 31, Accounts receivable, net—Westlake $ 44,035 $ 18,529 Accounts payable—Westlake (9,288 ) (7,470 ) Debt Payable to Related Parties OpCo assumed promissory notes payable to Westlake 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 promissory notes payable to Westlake, a portion of which were assumed by the Partnership in connection with the IPO. See Note 9 for description of related party debt payable balances. Interest on related party debt payable balances for the three months ended September 30, 2015 and 2014 were $1,054 and $2,137 , respectively, and for the nine months ended September 30, 2015 and 2014 were $3,794 and $9,833 , respectively, and are reflected as a component of other income (expense) in the combined and consolidated statements of operations. Interest capitalized as a component of property, plant and equipment on related party debt was $1,284 for the three months ended September 30, 2015 and $3,394 for the nine months ended September 30, 2015 . At September 30, 2015 and December 31, 2014 , accrued interest on related party debt was $2,284 and $2,403 , respectively, and is reflected as a component of accrued liabilities in the consolidated balance sheets. Debt payable to related parties was as follows: September 30, December 31, Long-term debt payable to Westlake $ 330,495 $ 227,638 General OpCo, together with other subsidiaries of Westlake not included in these combined and consolidated financial statements, is a guarantor under Westlake's revolving credit facility and the indentures governing its senior notes. As of September 30, 2015 and December 31, 2014 , Westlake had outstanding letters of credit totaling $29,953 and $31,392 under its revolving credit facility and $754,000 and $754,000 outstanding under its senior notes (less the unamortized discount of $803 and $892 ), respectively. 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. During August 2015, the Partnership entered into an interest rate contract with Westlake to fix the LIBOR component of the interest rate for a portion of the MLP Revolver balance. See note 11 for additional information on the interest rate contract. 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. |
Long-term Debt Payable to Westl
Long-term Debt Payable to Westlake | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Long-term Debt Payable to Westlake | Long-term Debt Payable to Westlake Long-term debt payable to Westlake consists of the following: September 30, December 31, August 2013 Promissory Notes (variable interest rate of prime plus 1.5%, original scheduled maturity of August 1, 2023) $ 31,775 $ 167,116 OpCo Revolver (variable interest rate of London Interbank Offered Rate ("LIBOR") plus 3.0%, original scheduled maturity of August 4, 2019) 163,379 60,522 MLP Revolver (variable interest rate of LIBOR plus 2.0%, original scheduled maturity of April 29, 2018) 135,341 — $ 330,495 $ 227,638 In 2013, three intercompany promissory notes were issued for capital expenditures incurred by Westlake on behalf of the Predecessor's operations (together, the "August 2013 Promissory Notes"). In connection with the IPO, OpCo assumed a portion of the August 2013 Promissory Notes. Proceeds drawn under the August 2013 Promissory Notes during the nine months ended September 30, 2014 were used to fund capital expenditures at the Predecessor's ethylene plants. In connection with the IPO on August 4, 2014, OpCo entered into a $600,000 senior unsecured revolving credit facility agreement with Westlake (the "OpCo Revolver"). The OpCo Revolver 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. Proceeds drawn under the OpCo Revolver during the nine months ended September 30, 2015 were used to fund capital expenditures at the Partnership's ethylene plants. On April 29, 2015, the Partnership entered into a $300,000 revolving credit facility agreement with Westlake (the "MLP Revolver") to fund the Partnership's purchase of an additional 2.7% newly-issued, limited partner interest in OpCo for $135,341 . Borrowings under the MLP Revolver bear interest at LIBOR plus a spread ranging from 2.0% to 3.0% (depending on the Partnership's consolidated leverage ratio), payable quarterly. The MLP Revolver provides that the Partnership may pay all or a portion of the interest on any borrowings in kind, in which case any such amounts would be added to the principal amount of the loan. The MLP Revolver requires that the Partnership maintain a consolidated leverage ratio of either (1) during any one-year period following certain types of acquisitions (including acquisitions of additional interests in OpCo), 5.50 : 1.00 or less, or (2) during any other period, 4.50 : 1.00 or less. The MLP Revolver also contains certain other customary covenants. The repayment of borrowings under the MLP Revolver is subject to acceleration upon the occurrence of an event of default. During August 2015, the Partnership entered into an interest rate contract with Westlake to fix the LIBOR component of the interest rate for a portion of the MLP Revolver balance. See note 11 for additional information on the interest rate contract. As of September 30, 2015 , the Partnership was in compliance with all of the covenants under the August 2013 Promissory Notes, the OpCo Revolver and the MLP Revolver. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive income or loss primarily reflects the effective portion of the gain or loss on derivative instrument designated and qualified as a cash flow hedge. Gain or loss amounts related to a cash flow hedge recorded in accumulated other comprehensive income or loss are reclassified to income in the same period in which the underlying hedged forecasted transaction affects income. If it becomes probable that a forecasted transaction will not occur, the related net gain or loss in accumulated other comprehensive income or loss is immediately reclassified into income. The following sets forth the amounts included in accumulated other comprehensive loss for the nine months ended September 30, 2015 : Nine Months Ended September 30, 2015 Interest rate contract—Loss recognized on cash flow hedge $ (223 ) Interest rate contract—Loss reclassified to net income on cash flow hedge 50 Net effect of cash flow hedge $ (173 ) |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments 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. There were no derivative instruments that were designated as fair value hedges for the nine months ended September 30, 2015 and 2014 . Commodity Risk Management 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. The Partnership has not entered into any commodity derivative instruments since the date of the IPO, August 4, 2014. The Partnership had no non-designated hedging instruments for the nine months ended September 30, 2015 . 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 three and nine months ended September 30, 2014 as follows: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Commodity forward contracts Gross profit $ (8,873 ) $ (9,244 ) Interest Rate Risk Management During August 2015, the Partnership entered into an interest rate contract with Westlake to reduce the risks of variability of the interest rates under the MLP Revolver. The interest rate contract fixed the LIBOR component of the interest rate for a portion of the MLP Revolver balance. This contract was designated as a cash flow hedge. With the exception of this interest rate contract, the Partnership did not have any other derivative financial instruments during the three and nine months ended September 30, 2015 . As of and for the three and nine months ended September 30, 2014 , neither the Partnership nor the Predecessor had any interest rate contracts. There were no open derivatives as of December 31, 2014 . The fair value of the derivative instrument on the Partnership's consolidated balance sheet as of September 30, 2015 was as follows: Derivative Liabilities Derivative in Cash Flow Hedging Relationship Balance Sheet Location Fair Value as of September 30, 2015 Interest rate contract Other liabilities $ 173 The following tables present the effect of derivative instrument designated as cash flow hedge on the combined and consolidated statements of operations and the consolidated statements of comprehensive income for the three and nine months ended September 30, 2015 : Derivative in Cash Flow Hedging Relationship Location of Gain (Loss) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Interest rate contract—Loss reclassified from accumulated other comprehensive loss Interest expense $ (50 ) $ (50 ) Derivative in Cash Flow Hedging Relationship Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Interest rate contract—Change in value recognized in other comprehensive loss $ 223 $ 223 There was no ineffective portion of a derivative instrument during the three and nine months ended September 30, 2015 . See Note 12 for the fair value of derivative instruments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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 Partnership's liability under the interest rate contract that was accounted for at fair value on a recurring basis at September 30, 2015 : September 30, 2015 Level 2 Total Derivative instruments Liability—Interest rate contract $ (173 ) $ (173 ) The fair value of the level 2 interest rate contract is determined using standard valuation methodologies which incorporate relevant contract terms along with readily available market data (i.e. the 3 month LIBOR forward curve). There were no transfers in or out of Levels 1 and 2 of the fair value hierarchy for the nine months ended September 30, 2015 and 2014 . The Partnership has other financial assets and liabilities subject to fair value measures. These financial assets and liabilities include accounts receivable, net, accounts payable and long-term debt payable to Westlake, all of which are recorded at carrying value. The amounts reported in the consolidated balance sheets for accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments. The carrying and fair values of the Partnership's long-term debt at September 30, 2015 and December 31, 2014 are summarized in the table below. The Partnership's long-term debt includes the August 2013 Promissory Notes, the OpCo Revolver and the MLP Revolver. 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. September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value August 2013 Promissory Notes $ 31,775 $ 31,775 $ 167,116 $ 167,116 OpCo Revolver 163,379 170,613 60,522 60,522 MLP Revolver 135,341 134,514 — — |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
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 pertaining to the period 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 combined financial statements. The effective income tax rates were 0.2% and 0.2% for the three and nine months ended September 30, 2015 , respectively. The effective income tax rates for the three and nine months ended September 30, 2015 are not comparable to the effective income tax rate for the prior-year comparative periods as the Partnership is not subject to federal income taxes subsequent to the IPO. The effective income tax rate of the Predecessor was 35.4% for the period from January 1, 2014 through August 3, 2014. The effective income tax rate for the 2014 period prior to the IPO was above the U.S. federal statutory rate of 35.0% primarily due to state income taxes, mostly offset by the domestic manufacturing deduction and state income tax credits. The Partnership's effective tax rate was less than one percent for the 2014 period subsequent to the IPO. |
Supplemental Information
Supplemental Information | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information Accrued Liabilities Accrued liabilities were $22,352 and $11,900 at September 30, 2015 and December 31, 2014 , respectively. The accrual related to capital expenditures, which is a component of accrued liabilities, was $14,452 at September 30, 2015 . Accrued taxes, interest on long-term debt and the accrual related to capital expenditures, which are components of accrued liabilities, were $1,622 , $2,403 , and $5,026 at December 31, 2014, respectively. No other component of accrued liabilities was more than five percent of total current liabilities. Non-cash Operating Activity The Predecessor settled $2,089 and $9,530 of its total interest expense incurred on long-term debt payable to Westlake as an addition to principal on debt outstanding for the three and nine months ended September 30, 2014 , respectively. Non-cash Investing Activity The change in capital expenditure accrual reducing additions to property, plant and equipment was $15,850 for the nine months ended September 30, 2015 . The change in capital expenditure accrual reducing additions to property, plant and equipment was $8,564 for the nine months ended September 30, 2014 . |
Major Customer and Concentratio
Major Customer and Concentration Risk | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Major Customer and Concentration of Credit Risk | Major Customer and Concentration of Credit Risk During the three months ended September 30, 2015 and 2014 , Westlake accounted for approximately 83.6% and 73.9% , respectively, of the Partnership's and the Predecessor's net sales. During the nine months ended September 30, 2015 and 2014 , Westlake accounted for approximately 81.9% and 73.7% , respectively, of the Partnership's and the Predecessor's net sales. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
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 it to mitigate the effects of contamination caused by the release or disposal of hazardous substances into the environment. Because several of the Partnership's processing sites have a history of industrial use, it is impossible to predict precisely what effect these legal requirements will have on the Partnership. Westlake has agreed to 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 100.0% 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 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 in 2014. 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 processing facility in Calvert City. In 2003, the Kentucky Environmental and Public Protection Cabinet (the "Cabinet") re-issued Goodrich's Resource Conservation and Recovery Act ("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 the Comprehensive Environmental Response, Compensation, and Liability Act ("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 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 of approximately $200 , such a settlement will likely cover assets owned by the Partnership and Westlake, and to the extent it covers the Partnership's assets, Westlake has agreed to 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 routine legal proceedings incidental to the conduct of its business. The Partnership does not believe that any of these routine legal proceedings will have a material adverse effect on its financial condition, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 28, 2015, the board of directors of Westlake GP declared a quarterly distribution for the period from July 1, 2015 through September 30, 2015 of $0.2994 per unit or $8,102 in total. This distribution is payable on November 27, 2015 to unitholders of record as of November 9, 2015. Subsequent events were evaluated through the date on which the financial statements were issued. |
Description of Business and B25
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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, changes in equity 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 subsidiary, OpCo. The combined and consolidated financial statements for the three and nine months ended September 30, 2014 were prepared as follows: • The combined and consolidated statement of operations for the three months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014 and the combined results of the Predecessor for the period from July 1, 2014 through August 3, 2014. The combined and consolidated statement of operations for the nine months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014. • The consolidated statement of other comprehensive income for the three and nine months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014. • The combined and consolidated statement of changes in equity for the nine months ended September 30, 2014 consists of the combined activity for the Predecessor prior to August 4, 2014, and the consolidated activity for the Partnership completed at and subsequent to the IPO on August 4, 2014. • The combined and consolidated statement of cash flows for the nine months ended September 30, 2014 consists of the consolidated results of the Partnership for the period from August 4, 2014 through September 30, 2014 and the combined results of the Predecessor for the period from January 1, 2014 through August 3, 2014. In the opinion of the Partnership's management, the accompanying unaudited combined and consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Partnership's financial position as of September 30, 2015 , its results of operations for the three and nine months ended September 30, 2015 and 2014 and the changes in its cash position for the nine months ended September 30, 2015 and 2014 . Results of operations and changes in cash position for the interim periods presented are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2015 or any other period. The preparation of financial statements in conformity with U.S. GAAP 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 materially from those estimates. |
Derivative Instruments | Derivative Instruments 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. |
Accounts Receivable - Third P26
Accounts Receivable - Third Parties (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable - Third Parties | Accounts receivable—third parties consist of the following: September 30, December 31, Trade customers $ 14,649 $ 37,514 Allowance for doubtful accounts (170 ) — 14,479 37,514 Other — 6 Accounts receivable, net—third parties $ 14,479 $ 37,520 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventories consist of the following: September 30, December 31, Finished products $ 2,895 $ 6,257 Feedstock, additives and chemicals 377 377 Inventories $ 3,272 $ 6,634 |
Net Income Per Limited Partne28
Net Income Per Limited Partner Unit (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income attributable to the Partnership $ 10,103 $ 5,015 $ 29,046 $ 5,015 Less: Limited partners' distribution declared on common units 4,304 2,449 12,552 2,449 Limited partners' distribution declared on subordinated units 3,798 2,162 11,079 2,162 Net income in excess of distribution $ 2,001 $ 404 $ 5,415 $ 404 Three Months Ended September 30, 2015 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 4,304 $ 3,798 $ — $ 8,102 Net income in excess of distribution 1,061 940 — 2,001 Net income $ 5,365 $ 4,738 $ — $ 10,103 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 $ 0.37 $ 0.37 $ 0.37 Nine Months Ended September 30, 2015 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 12,552 $ 11,079 $ — $ 23,631 Net income in excess of distribution 2,877 2,538 — 5,415 Net income $ 15,429 $ 13,617 $ — $ 29,046 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 $ 1.07 $ 1.07 $ 1.07 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The related party accounts receivable and accounts payable balances were as follows: September 30, December 31, Accounts receivable, net—Westlake $ 44,035 $ 18,529 Accounts payable—Westlake (9,288 ) (7,470 ) Charges from related parties for goods and services capitalized as assets were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Goods and services purchased from Westlake and capitalized as assets $ 1,304 $ 830 $ 3,241 $ 2,074 Charges from related parties included within selling, general and administrative expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Services received from Westlake and included in selling, general and administrative expenses $ 4,772 $ 4,283 $ 14,891 $ 15,901 Charges from related parties in cost of sales were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Feedstock purchased from Westlake and included in cost of sales $ 75,752 $ 63,108 $ 232,584 $ 63,108 Other charges from Westlake and included in cost of sales 20,457 13,879 53,948 47,000 Total $ 96,209 $ 76,987 $ 286,532 $ 110,108 Sales to related parties were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net sales—Westlake $ 207,856 $ 289,601 $ 621,438 $ 1,088,561 Debt payable to related parties was as follows: September 30, December 31, Long-term debt payable to Westlake $ 330,495 $ 227,638 Long-term debt payable to Westlake consists of the following: September 30, December 31, August 2013 Promissory Notes (variable interest rate of prime plus 1.5%, original scheduled maturity of August 1, 2023) $ 31,775 $ 167,116 OpCo Revolver (variable interest rate of London Interbank Offered Rate ("LIBOR") plus 3.0%, original scheduled maturity of August 4, 2019) 163,379 60,522 MLP Revolver (variable interest rate of LIBOR plus 2.0%, original scheduled maturity of April 29, 2018) 135,341 — $ 330,495 $ 227,638 |
Long-term Debt Payable to Wes30
Long-term Debt Payable to Westlake (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The related party accounts receivable and accounts payable balances were as follows: September 30, December 31, Accounts receivable, net—Westlake $ 44,035 $ 18,529 Accounts payable—Westlake (9,288 ) (7,470 ) Charges from related parties for goods and services capitalized as assets were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Goods and services purchased from Westlake and capitalized as assets $ 1,304 $ 830 $ 3,241 $ 2,074 Charges from related parties included within selling, general and administrative expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Services received from Westlake and included in selling, general and administrative expenses $ 4,772 $ 4,283 $ 14,891 $ 15,901 Charges from related parties in cost of sales were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Feedstock purchased from Westlake and included in cost of sales $ 75,752 $ 63,108 $ 232,584 $ 63,108 Other charges from Westlake and included in cost of sales 20,457 13,879 53,948 47,000 Total $ 96,209 $ 76,987 $ 286,532 $ 110,108 Sales to related parties were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net sales—Westlake $ 207,856 $ 289,601 $ 621,438 $ 1,088,561 Debt payable to related parties was as follows: September 30, December 31, Long-term debt payable to Westlake $ 330,495 $ 227,638 Long-term debt payable to Westlake consists of the following: September 30, December 31, August 2013 Promissory Notes (variable interest rate of prime plus 1.5%, original scheduled maturity of August 1, 2023) $ 31,775 $ 167,116 OpCo Revolver (variable interest rate of London Interbank Offered Rate ("LIBOR") plus 3.0%, original scheduled maturity of August 4, 2019) 163,379 60,522 MLP Revolver (variable interest rate of LIBOR plus 2.0%, original scheduled maturity of April 29, 2018) 135,341 — $ 330,495 $ 227,638 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following sets forth the amounts included in accumulated other comprehensive loss for the nine months ended September 30, 2015 : Nine Months Ended September 30, 2015 Interest rate contract—Loss recognized on cash flow hedge $ (223 ) Interest rate contract—Loss reclassified to net income on cash flow hedge 50 Net effect of cash flow hedge $ (173 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of Derivative Instrument Not Designated as Fair Value Hedges | 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 three and nine months ended September 30, 2014 as follows: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Commodity forward contracts Gross profit $ (8,873 ) $ (9,244 ) |
Fair Values of Derivatives Instruments in Consolidated Balance Sheet | The fair value of the derivative instrument on the Partnership's consolidated balance sheet as of September 30, 2015 was as follows: Derivative Liabilities Derivative in Cash Flow Hedging Relationship Balance Sheet Location Fair Value as of September 30, 2015 Interest rate contract Other liabilities $ 173 |
Derivative Instruments, Gain (Loss) | The following tables present the effect of derivative instrument designated as cash flow hedge on the combined and consolidated statements of operations and the consolidated statements of comprehensive income for the three and nine months ended September 30, 2015 : Derivative in Cash Flow Hedging Relationship Location of Gain (Loss) Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Interest rate contract—Loss reclassified from accumulated other comprehensive loss Interest expense $ (50 ) $ (50 ) Derivative in Cash Flow Hedging Relationship Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Interest rate contract—Change in value recognized in other comprehensive loss $ 223 $ 223 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | 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 Partnership's liability under the interest rate contract that was accounted for at fair value on a recurring basis at September 30, 2015 : September 30, 2015 Level 2 Total Derivative instruments Liability—Interest rate contract $ (173 ) $ (173 ) |
Summary Of Carrying And Fair Values Of Long-Term Debt | The carrying and fair values of the Partnership's long-term debt at September 30, 2015 and December 31, 2014 are summarized in the table below. The Partnership's long-term debt includes the August 2013 Promissory Notes, the OpCo Revolver and the MLP Revolver. 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. September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value August 2013 Promissory Notes $ 31,775 $ 31,775 $ 167,116 $ 167,116 OpCo Revolver 163,379 170,613 60,522 60,522 MLP Revolver 135,341 134,514 — — |
Description of Business and B34
Description of Business and Basis of Presentation (Details) $ in Thousands | Apr. 29, 2015USD ($) | Apr. 01, 2015 | Aug. 04, 2014shares | Sep. 30, 2015production_facility |
Westlake [Member] | Affiliated Entity [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Amount paid to purchase additional limited partner interest | $ 135,341 | |||
Westlake Chemical OpCo LP [Member] | Affiliated Entity [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Amount paid to purchase additional limited partner interest | $ 135,341 | |||
Limited partner interest | 13.30% | 10.60% | ||
Westlake Chemical OpCo GP LLC [Member] | Limited Liability Company [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Limited partner interest | 100.00% | |||
Westlake [Member] | Westlake Chemical OpCo LP [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Limited partner interest | 86.70% | |||
Westlake Chemical OpCo LP [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Number of ethylene production facilities | production_facility | 3 | |||
Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Number of units sold in public offering | shares | 12,937,500 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Held-to-maturity Securities [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 75,025 | $ 40,003 |
Accounts Receivable - Third P36
Accounts Receivable - Third Parties (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade customers | $ 14,649 | $ 37,514 |
Allowance for doubtful accounts | (170) | 0 |
Receivables from trade customers, net | 14,479 | 37,514 |
Other | 0 | 6 |
Accounts receivable, net - third parties | $ 14,479 | $ 37,520 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 2,895 | $ 6,257 |
Feedstock, additives and chemicals | 377 | 377 |
Inventories | $ 3,272 | $ 6,634 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||||
Property, plant and equipment | $ 962,221 | $ 962,221 | $ 842,057 | ||
Depreciation expense on property, plant and equipment | $ 16,231 | $ 14,900 | $ 48,006 | $ 45,104 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Assets [Member] | ||||
Entity Information [Line Items] | ||||
Amortization expense | $ 4,211 | $ 4,319 | $ 12,631 | $ 13,397 |
Net Income Per Limited Partne40
Net Income Per Limited Partner Unit (Distributions Declared) (Details) - Westlake Chemical OpCo LP [Member] - USD ($) $ / shares in Units, $ in Thousands | Oct. 28, 2015 | Jul. 29, 2015 | Apr. 29, 2015 |
Distribution Made to Limited Partner [Line Items] | |||
Distribution declared per unit | $ 0.2910 | $ 0.2829 | |
Distribution declared | $ 7,874 | $ 7,655 | |
Subsequent Event [Member] | |||
Distribution Made to Limited Partner [Line Items] | |||
Distribution declared per unit | $ 0.2994 | ||
Distribution declared | $ 8,102 |
Net Income Per Limited Partne41
Net Income Per Limited Partner Unit (Income In Excess Of Distribution) (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income attributable to the Partnership | $ 5,015 | $ 10,103 | $ 29,046 | ||
Distribution declared | 8,102 | 23,631 | |||
Net income in excess of distribution | 2,001 | $ 404 | 5,415 | $ 404 | |
Common units [Member] | |||||
Net income attributable to the Partnership | 5,365 | 15,429 | |||
Distribution declared | 4,304 | 2,449 | 12,552 | 2,449 | |
Net income in excess of distribution | 1,061 | 2,877 | |||
Subordinated units [Member] | |||||
Net income attributable to the Partnership | 4,738 | 13,617 | |||
Distribution declared | 3,798 | $ 2,162 | 11,079 | $ 2,162 | |
Net income in excess of distribution | $ 940 | $ 2,538 |
Net Income Per Limited Partne42
Net Income Per Limited Partner Unit (Basic and Diluted Income Per Limited Partner Unit) (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Limited Partners' Capital Account [Line Items] | |||||
Distribution declared | $ 8,102 | $ 23,631 | |||
Net income in excess of distribution | 2,001 | $ 404 | 5,415 | $ 404 | |
Net income | $ 5,015 | $ 10,103 | $ 29,046 | ||
Weighted average units outsanding: | |||||
Basic and diluted (shares) | 27,059,730 | 27,059,730 | |||
Net income per limited partner unit: | |||||
Income per limited partner unit (usd per share) | $ 0.37 | $ 1.07 | |||
Limited Partners' Common Units [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Distribution declared | $ 4,304 | $ 2,449 | $ 12,552 | $ 2,449 | |
Net income in excess of distribution | 1,061 | 2,877 | |||
Net income | $ 5,365 | $ 15,429 | |||
Weighted average units outsanding: | |||||
Basic and diluted (shares) | 14,373,615 | 14,373,615 | |||
Net income per limited partner unit: | |||||
Income per limited partner unit (usd per share) | $ 0.37 | $ 0.19 | $ 1.07 | $ 0.19 | |
Limited Partners' Subordinated Units [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Distribution declared | $ 3,798 | $ 2,162 | $ 11,079 | $ 2,162 | |
Net income in excess of distribution | 940 | 2,538 | |||
Net income | $ 4,738 | $ 13,617 | |||
Weighted average units outsanding: | |||||
Basic and diluted (shares) | 12,686,115 | 12,686,115 | |||
Net income per limited partner unit: | |||||
Income per limited partner unit (usd per share) | $ 0.37 | $ 0.19 | $ 1.07 | $ 0.19 |
Related Party Transactions (Sal
Related Party Transactions (Sales to Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Net sales - Westlake | $ 207,856 | $ 289,601 | $ 621,438 | $ 1,088,561 |
Affiliated Entity [Member] | Westlake [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net sales - Westlake | $ 207,856 | $ 289,601 | $ 621,438 | $ 1,088,561 |
Related Party Transactions (Cos
Related Party Transactions (Cost of Sales from Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Total | $ 154,474 | $ 227,015 | $ 473,815 | $ 832,304 |
Affiliated Entity [Member] | Westlake [Member] | ||||
Related Party Transaction [Line Items] | ||||
Feedstock purchased from Westlake and included in cost of sales | 75,752 | 63,108 | 232,584 | 63,108 |
Other charges from Westlake and included in cost of sales | 20,457 | 13,879 | 53,948 | 47,000 |
Total | $ 96,209 | $ 76,987 | $ 286,532 | $ 110,108 |
Related Party Transactions (Ser
Related Party Transactions (Services from Related Parties Included in SG&A Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Affiliated Entity [Member] | Westlake [Member] | ||||
Related Party Transaction [Line Items] | ||||
Services received from Westlake and included in selling, general and administrative expenses | $ 4,772 | $ 4,283 | $ 14,891 | $ 15,901 |
Related Party Transactions (Goo
Related Party Transactions (Goods and Services from Related Parties that have been Capitalized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Affiliated Entity [Member] | Westlake [Member] | ||||
Related Party Transaction [Line Items] | ||||
Goods and services purchased from Westlake and capitalized as assets | $ 1,304 | $ 830 | $ 3,241 | $ 2,074 |
Related Party Transactions (Acc
Related Party Transactions (Accounts Receivable from and Accounts Payable to Related Parties) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Accounts receivable, net—Westlake | $ 44,035 | $ 18,529 |
Accounts payable—Westlake | (9,288) | (7,470) |
Affiliated Entity [Member] | Westlake [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable, net—Westlake | 44,035 | 18,529 |
Accounts payable—Westlake | $ (9,288) | $ (7,470) |
Related Party Transactions (Deb
Related Party Transactions (Debt Payable to Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Interest on related party debt payable | $ 1,054 | $ 2,137 | $ 3,794 | $ 9,833 | |
Accrued interest on related party debt | $ 2,403 | ||||
Long-term debt payable to Westlake | 330,495 | 330,495 | 227,638 | ||
Affiliated Entity [Member] | Westlake [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest capitalized | 1,284 | 3,394 | |||
Long-term debt payable to Westlake | 330,495 | 330,495 | 227,638 | ||
Other Nonoperating Income (Expense) [Member] | Affiliated Entity [Member] | Westlake [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest on related party debt payable | 1,054 | $ 2,137 | 3,794 | $ 9,833 | |
Accrued Liabilities [Member] | Affiliated Entity [Member] | Westlake [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accrued interest on related party debt | $ 2,284 | $ 2,284 | $ 2,403 |
Related Party Transactions (Gen
Related Party Transactions (General) (Details) - Westlake [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Senior unsecured revolving credit facility [Member] | ||
Related Party Transaction [Line Items] | ||
Outstanding letters of credit | $ 29,953 | $ 31,392 |
Senior Notes [Member] | ||
Related Party Transaction [Line Items] | ||
Outstanding debt | 754,000 | 754,000 |
Unamortized discount on senior notes | $ 803 | $ 892 |
Related Party Transactions (Sit
Related Party Transactions (Site Lease Agreements) (Details) - Westlake Chemical OpCo LP [Member] - Affiliated Entity [Member] - Site Lease Agreement [Member] | Aug. 04, 2014USD ($)lease |
Related Party Transaction [Line Items] | |
Number of site lease agreements | 2 |
Lease term | 50 years |
Operating lease rent expense | $ | $ 1 |
Long-term Debt Payable to Wes51
Long-term Debt Payable to Westlake (Details) $ in Thousands | Apr. 29, 2015USD ($) | Apr. 01, 2015 | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014note | Dec. 31, 2014USD ($) | Aug. 04, 2014USD ($) |
Related Party Transaction [Line Items] | |||||||
Long-term debt | $ 330,495 | $ 330,495 | $ 227,638 | ||||
Westlake [Member] | MLP Revolver [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000 | ||||||
Limited Partner [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of intercompany promissory notes | note | 3 | ||||||
Limited Partner [Member] | 2013 Promissory Note [Member] | Senior Notes [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Long-term debt | 31,775 | $ 31,775 | 167,116 | ||||
Limited Partner [Member] | 2013 Promissory Note [Member] | Senior Notes [Member] | Prime Rate [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 1.50% | ||||||
Limited Partner [Member] | OpCo Revolver [Member] | Line of Credit [Member] | LIBOR [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 3.00% | ||||||
Limited Partner [Member] | OpCo Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Long-term debt | 163,379 | $ 163,379 | 60,522 | ||||
Limited Partner [Member] | MLP Revolver [Member] | Line of Credit [Member] | LIBOR [Member] | Minimum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 2.00% | ||||||
Limited Partner [Member] | MLP Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Long-term debt | $ 135,341 | $ 135,341 | 0 | ||||
Limited Partner [Member] | Westlake [Member] | MLP Revolver [Member] | Line of Credit [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum consolidated leverage ration during one year following acquisitions | 5.50 | ||||||
Leverage capital ration required during other periods | 4.50 | ||||||
Limited Partner [Member] | Westlake [Member] | MLP Revolver [Member] | Line of Credit [Member] | LIBOR [Member] | Minimum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 2.00% | ||||||
Limited Partner [Member] | Westlake [Member] | MLP Revolver [Member] | Line of Credit [Member] | LIBOR [Member] | Maximum [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 3.00% | ||||||
Limited Partner [Member] | Westlake Chemical OpCo LP [Member] | Westlake [Member] | OpCo Revolver [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Maximum borrowing capacity | $ 600,000 | ||||||
Limited Partner [Member] | Westlake Chemical OpCo LP [Member] | Westlake [Member] | OpCo Revolver [Member] | Line of Credit [Member] | LIBOR [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate, percent | 3.00% | ||||||
Affiliated Entity [Member] | Westlake Chemical OpCo LP [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Additional ownership interest | 2.70% | ||||||
Amount paid to purchase additional limited partner interest | 135,341 | ||||||
Affiliated Entity [Member] | Westlake [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Long-term debt | $ 330,495 | $ 330,495 | $ 227,638 | ||||
Amount paid to purchase additional limited partner interest | $ 135,341 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Equity [Abstract] | |||||
Interest rate contract - Loss recognized on cash flow hedge | $ (223) | $ 0 | $ (223) | $ 0 | |
Interest rate contract - Loss reclassified to net income on cash flow hedge | 50 | $ 0 | 50 | $ 0 | |
Net effect of cash flow hedge | $ (173) | $ (173) | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)derivative | Sep. 30, 2014USD ($)derivative | Sep. 30, 2015USD ($)derivative | Sep. 30, 2014USD ($)derivative | Dec. 31, 2014derivative | |
Derivative [Line Items] | |||||
Number of derivatives | derivative | 0 | ||||
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Number of derivatives | derivative | 0 | 0 | 0 | 0 | |
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Number of derivatives | derivative | 0 | 0 | |||
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | |||||
Derivative [Line Items] | |||||
Gain (Loss) Recognized in Income on Derivative | $ (8,873) | $ (9,244) | |||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Change in value recognized in other comprehensive loss | $ 223 | $ 223 | |||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Fair Value of Derivative | 173 | 173 | |||
Interest Rate Contract [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Loss Recognized in Statement of Operations | $ (50) | $ (50) |
Derivative Instruments (Ineffec
Derivative Instruments (Ineffective Portion) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Ineffective portion of a derivative instrument | $ 0 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Assets and Liabilities Accounted at Fair Value on Recurring and Nonrecurring Basis) (Details) - Interest Rate Contract [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liability - Interest rate contract | $ (173) |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liability - Interest rate contract | $ (173) |
Fair Value Measurements (Summ56
Fair Value Measurements (Summary of Carrying and Fair Values of Long Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
2013 Promissory Note [Member] | Senior Notes [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 31,775 | $ 167,116 |
2013 Promissory Note [Member] | Senior Notes [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 31,775 | 167,116 |
OpCo Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 163,379 | 60,522 |
OpCo Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 170,613 | 60,522 |
MLP Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 135,341 | 0 |
MLP Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 134,514 | $ 0 |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Aug. 03, 2014 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 0.20% | 35.40% | 0.20% |
U.S. federal statutory income tax rate | 35.00% |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accrued Liabilities [Abstract] | ||||
Accrued liabilities | $ 22,352 | $ 11,900 | ||
Accrued Income Taxes, Current | 1,622 | |||
Accrued interest on related party debt | 2,403 | |||
Accrued Capital Expenditures, Current | 14,452 | $ 5,026 | ||
Related Party Transaction [Line Items] | ||||
Increase (reduction) in capital expenditure accrual | $ (15,850) | $ (8,564) | ||
Westlake [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest incurred, added to principal on promissory notes outstanding | $ 2,089 | $ 9,530 |
Major Customer and Concentrat59
Major Customer and Concentration Risk (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net sales [Member] | Customer Concentration Risk [Member] | Westlake [Member] | Affiliated Entity [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage | 83.60% | 73.90% | 81.90% | 73.70% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | 98 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
Unfavorable Regulatory Action [Member] | ||
Loss Contingencies [Line Items] | ||
Possible amount of claims in settlement for compliance violations | $ 200 | |
Goodrich and PolyOne [Member] | ||
Loss Contingencies [Line Items] | ||
Costs incurred for environmental remediation services | $ 2,805 | |
Goodrich and PolyOne [Member] | Settled Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Percentage of costs related to environmental issues to be paid by PolyOne | 100.00% | |
Minimum number of years between arbitrations | 5 years | |
Goodrich and PolyOne [Member] | Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Reimbursement of remediation costs sought by PolyOne | $ 1,400 |
Subsequent Events (Details)
Subsequent Events (Details) - Westlake Chemical OpCo LP [Member] - USD ($) $ / shares in Units, $ in Thousands | Oct. 28, 2015 | Jul. 29, 2015 | Apr. 29, 2015 |
Subsequent Event [Line Items] | |||
Distribution declared per unit | $ 0.2910 | $ 0.2829 | |
Distribution declared | $ 7,874 | $ 7,655 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Distribution declared per unit | $ 0.2994 | ||
Distribution declared | $ 8,102 |