Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 02, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 | 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, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 75,006 | $ 169,559 |
Accounts receivable—Westlake Chemical Corporation (Westlake) | 98,145 | 39,655 |
Accounts receivable, net—third parties | 15,699 | 11,927 |
Inventories | 3,428 | 3,879 |
Prepaid expenses and other current assets | 0 | 267 |
Total current assets | 192,278 | 225,287 |
Property, plant and equipment, net | 1,217,451 | 1,020,469 |
Receivable from Westlake | 20,428 | 0 |
Other assets, net | ||
Goodwill | 5,814 | 5,814 |
Deferred charges and other assets, net | 100,688 | 38,779 |
Total other assets, net | 106,502 | 44,593 |
Total assets | 1,536,659 | 1,290,349 |
Current liabilities | ||
Accounts payable—Westlake | 7,435 | 15,550 |
Accounts payable—third parties | 19,189 | 18,737 |
Accrued liabilities | 20,953 | 23,407 |
Total current liabilities | 47,577 | 57,694 |
Long-term debt payable to Westlake | 595,083 | 384,006 |
Deferred income taxes | 1,781 | 1,392 |
Other liabilities | 243 | 90 |
Total liabilities | 644,684 | 443,182 |
Commitments and contingencies (Notes 9 and 15) | ||
EQUITY | ||
Accumulated other comprehensive (loss) income | (224) | 280 |
Total Westlake Chemical Partners LP partners' capital | 100,372 | 96,561 |
Noncontrolling interest in Westlake Chemical OpCo LP (OpCo) | 791,603 | 750,606 |
Total equity | 891,975 | 847,167 |
Total liabilities and equity | 1,536,659 | 1,290,349 |
Limited Partner [Member] | Common units [Member] | Public [Member] | ||
EQUITY | ||
Limited Partners' Capital Account | 296,585 | 294,565 |
Total equity | 296,585 | 294,565 |
Limited Partner [Member] | Common units [Member] | Westlake [Member] | ||
EQUITY | ||
Limited Partners' Capital Account | 4,726 | 4,502 |
Total equity | 4,726 | 4,502 |
Limited Partner [Member] | Subordinated units [Member] | Westlake [Member] | ||
EQUITY | ||
Limited Partners' Capital Account | 41,766 | 39,786 |
Total equity | 41,766 | 39,786 |
General Partner [Member] | Westlake [Member] | ||
EQUITY | ||
General partner—Westlake | (242,481) | (242,572) |
Total equity | $ (242,481) | $ (242,572) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2016 | Dec. 31, 2015 |
Common units [Member] | Public [Member] | ||
Units issued | 12,937,500 | 12,937,500 |
Units outstanding | 12,937,500 | 12,937,500 |
Common units [Member] | Westlake [Member] | ||
Units issued | 1,436,115 | 1,436,115 |
Units outstanding | 1,436,115 | 1,436,115 |
Subordinated units [Member] | Westlake [Member] | ||
Units issued | 12,686,115 | 12,686,115 |
Units outstanding | 12,686,115 | 12,686,115 |
Consolidated Statements of Ope
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales - Westlake | $ 193,964 | $ 207,856 | $ 606,859 | $ 621,438 |
Net co-product, ethylene and other sales—third parties | 35,390 | 40,763 | 85,940 | 137,277 |
Total net sales | 229,354 | 248,619 | 692,799 | 758,715 |
Cost of sales | 142,553 | 154,474 | 407,203 | 473,815 |
Gross profit | 86,801 | 94,145 | 285,596 | 284,900 |
Selling, general and administrative expenses | 5,788 | 5,831 | 17,733 | 17,826 |
Income from operations | 81,013 | 88,314 | 267,863 | 267,074 |
Other income (expense) | ||||
Interest expense—Westlake | (4,947) | (1,054) | (7,381) | (3,794) |
Other (expense) income, net | (13) | (73) | 230 | (35) |
Income before income taxes | 76,053 | 87,187 | 260,712 | 263,245 |
Provision for income taxes | 194 | 141 | 890 | 567 |
Net income | 75,859 | 87,046 | 259,822 | 262,678 |
Less: Net income attributable to noncontrolling interest in OpCo | 67,198 | 76,943 | 229,733 | 233,632 |
Net income attributable to Westlake Chemical Partners LP | $ 8,661 | $ 10,103 | $ 30,089 | $ 29,046 |
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (basic and diluted) (in shares) | 27,059,730 | 27,059,730 | 27,059,730 | 27,059,730 |
Distributions per common unit (in usd per unit) | $ 0.3259 | $ 0.291 | $ 0.9548 | $ 0.8489 |
Common units [Member] | ||||
Other income (expense) | ||||
Net income attributable to Westlake Chemical Partners LP | $ 4,552 | $ 5,365 | $ 15,909 | $ 15,429 |
Net income per limited partner unit attributable to Westlake Chemical Partners LP (basic and diluted) | ||||
Income per limited partner unit (usd per share) | $ 0.32 | $ 0.37 | $ 1.11 | $ 1.07 |
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (basic and diluted) (in shares) | 14,373,615 | 14,373,615 | 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 (basic and diluted) (in 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 (basic and diluted) (in 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 | $ 4,018 | $ 4,738 | $ 14,041 | $ 13,617 |
Net income per limited partner unit attributable to Westlake Chemical Partners LP (basic and diluted) | ||||
Income per limited partner unit (usd per share) | $ 0.32 | $ 0.37 | $ 1.11 | $ 1.07 |
Weighted average limited partner units outstanding (basic and diluted) | ||||
Weighted average limited partner units outstanding (basic and diluted) (in shares) | 12,686,115 | 12,686,115 | 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 (basic and diluted) (in 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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 75,859 | $ 87,046 | $ 259,822 | $ 262,678 |
Change in fair value of cash flow hedge | 310 | (223) | (784) | (223) |
Reclassification of loss to net income | 90 | 50 | 280 | 50 |
Total other comprehensive income (loss) | 400 | (173) | (504) | (173) |
Comprehensive income | 76,259 | 86,873 | 259,318 | 262,505 |
Comprehensive income attributable to noncontrolling interest in OpCo | 67,198 | 76,943 | 229,733 | 233,632 |
Comprehensive income attributable to Westlake Chemical Partners LP | $ 9,061 | $ 9,930 | $ 29,585 | $ 28,873 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest in OpCo [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 at Dec. 31, 2014 | $ 834,950 | $ 0 | $ 747,426 | $ (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 distribution to noncontrolling interest retained in OpCo by Westlake | (238,009) | (238,009) | |||||
Equity, ending balance at Sep. 30, 2015 | 836,474 | (173) | 743,049 | (242,572) | 293,282 | 4,360 | 38,528 |
Equity, beginning balance at Dec. 31, 2015 | 847,167 | 280 | 750,606 | (242,572) | 294,565 | 4,502 | 39,786 |
Net income | 259,822 | 229,733 | 139 | 14,320 | 1,589 | 14,041 | |
Net effect of cash flow hedge | (504) | (504) | |||||
Quarterly distributions to unitholders | (25,774) | 0 | (48) | (12,300) | (1,365) | (12,061) | |
Quarterly distribution to noncontrolling interest retained in OpCo by Westlake | (188,736) | (188,736) | |||||
Equity, ending balance at Sep. 30, 2016 | $ 891,975 | $ (224) | $ 791,603 | $ (242,481) | $ 296,585 | $ 4,726 | $ 41,766 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 259,822 | $ 262,678 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 67,472 | 60,637 |
Provision for doubtful accounts | 228 | 170 |
Loss from disposition of property, plant and equipment | 2,408 | 278 |
Deferred income taxes | 389 | (359) |
Changes in operating assets and liabilities | ||
Accounts receivable—third parties | (4,000) | 22,871 |
Net accounts receivable—Westlake | (87,032) | (23,688) |
Inventories | 451 | 3,362 |
Prepaid expenses and other current assets | 267 | (170) |
Accounts payable | 6,026 | 4,851 |
Accrued and other liabilities | 7,831 | 2,039 |
Other, net | (76,492) | (1,466) |
Net cash provided by operating activities | 177,370 | 331,203 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (268,647) | (152,572) |
Proceeds from disposition of assets | 157 | 0 |
Net cash used for investing activities | (268,490) | (152,572) |
Cash flows from financing activities | ||
Proceeds from debt payable to Westlake | 212,175 | 238,198 |
Repayments of debt payable to Westlake | (1,098) | (135,341) |
Quarterly distributions to noncontrolling interest retained in OpCo by Westlake | (188,736) | (238,009) |
Quarterly distributions to unitholders | (25,774) | (22,972) |
Net cash used for financing activities | (3,433) | (158,124) |
Net (decrease) increase in cash and cash equivalents | (94,553) | 20,507 |
Cash and cash equivalents at beginning of period | 169,559 | 133,750 |
Cash and cash equivalents at end of period | $ 75,006 | $ 154,257 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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 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 consolidated financial statements should be read in conjunction with the December 31, 2015 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, 2015 (the "2015 Form 10-K"), filed with the SEC on March 8, 2016. 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, 2015. 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. The Partnership’s operations consist exclusively of the variable interest entity’s operations and, as such, no additional variable interest entity disclosures are considered necessary. Westlake's retained interest of 86.7% is recorded as noncontrolling interest in the Partnership's consolidated financial statements. In the opinion of the Partnership's management, the accompanying unaudited 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, 2016 , its results of operations for the three and nine months ended September 30, 2016 and 2015 and the changes in its cash position for the nine months ended September 30, 2016 and 2015 . 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, 2016 or any other interim 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 (ASU No. 2014-09) 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 2016, the FASB issued various additional authoritative guidance for the new revenue recognition standard. The accounting standard will 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. Leases (ASU No. 2016-02) In February 2016, the FASB issued an accounting standards update on a new lease standard that will supersede the existing lease guidance. The standard requires a lessee to recognize assets and liabilities related to long-term leases that are classified as operating leases under current guidance on its balance sheet. An asset would be recognized related to the right to use the underlying asset and a liability would be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures related to leases. The accounting standard will be effective for reporting periods beginning after December 15, 2018. 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. Stock Compensation (ASU No. 2016-09) In March 2016, the FASB issued an accounting standards update to simplify several aspects of the accounting for share-based payment transactions, including income tax consequences, classifications of awards as either equity or liabilities and certain related classifications on the statement of cash flows. In addition, the new guidance permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. The accounting standard is effective for reporting periods beginning after December 15, 2016 and is not expected to have an impact on the Partnership's consolidated financial position, results of operations and cash flows. Credit Losses (ASU No. 2016-13) In June 2016, the FASB issued an accounting standards update providing new guidance for the accounting for credit losses on loans and other financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The standard also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The accounting standard will be effective for reporting periods beginning after December 15, 2019. 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. Cash Flows (ASU No. 2016-15) In August 2016, the FASB issued an accounting standards update providing new guidance on the classification of certain cash receipts and payments including debt extinguishment costs, debt prepayment costs, settlement of zero-coupon debt instruments, contingent consideration payments, proceeds from the settlement of insurance claims and life insurance policies and distributions received from equity method investees in the statement of cash flows. This update is required to be applied using the retrospective transition method to each period presented unless it is impracticable to be applied retrospectively. In such situation, this guidance is to be applied prospectively. The accounting standard will 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. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments Cash Equivalents The Partnership had $65,000 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, 2016 . The Partnership's investments in held-to-maturity securities are held at amortized cost, which approximates fair value. There were no held-to-maturity securities, classified as cash equivalents, at December 31, 2015 . |
Accounts Receivable - Third Par
Accounts Receivable - Third Parties | 9 Months Ended |
Sep. 30, 2016 | |
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 $ 16,097 $ 12,097 Allowance for doubtful accounts (398 ) (170 ) Accounts receivable, net—third parties $ 15,699 $ 11,927 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, Finished products $ 3,062 $ 3,527 Feedstock, additives and chemicals 366 352 Inventories $ 3,428 $ 3,879 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment As of September 30, 2016 , the Partnership had property, plant and equipment, net totaling $1,217,451 . 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 $19,773 and $16,231 is included in cost of sales in the consolidated statements of operations for the three months ended September 30, 2016 and 2015 , respectively. Depreciation expense on property, plant and equipment of $53,420 and $48,006 is included in cost of sales in the consolidated statements of operations for the nine months ended September 30, 2016 and 2015 , respectively. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2016 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: September 30, 2016 December 31, 2015 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangible asset—Goodwill $ 5,814 $ — $ 5,814 $ 5,814 $ — $ 5,814 Deferred charges and other assets, net Interest rate contract — — — 436 — 436 Turnaround costs 153,767 (58,715 ) 95,052 100,020 (67,767 ) 32,253 Other 8,662 (3,026 ) 5,636 8,710 (2,620 ) 6,090 Total deferred charges and other assets, net 162,429 (61,741 ) 100,688 109,166 (70,387 ) 38,779 Other assets, net $ 168,243 $ (61,741 ) $ 106,502 $ 114,980 $ (70,387 ) $ 44,593 Amortization expense on other assets of $6,517 and $4,211 is included in costs of sales in the consolidated statements of operations for the three months ended September 30, 2016 and 2015 , respectively. Amortization expense on other assets of $14,052 and $12,631 is included in costs of sales in the consolidated statements of operations for the nine months ended September 30, 2016 and 2015 , respectively. |
Distributions and Net Income Pe
Distributions and Net Income Per Limited Partner Unit | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Distributions and Net Income Per Limited Partner Unit | Distributions and Net Income Per Limited Partner Unit On October 31, 2016 , 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, 2016 through September 30, 2016 of $0.3353 per unit and of $91 to the holders of the Partnership's incentive distribution rights ("IDR Holders"). This distribution is payable on November 29, 2016 to unitholders and IDR Holders of record as of November 14, 2016 . The Partnership Agreement provides that the Partnership will distribute cash each quarter during the subordination period in the following manner: first, to the holders of common units, until each common unit has received the minimum quarterly distribution of $0.2750 , plus any arrearages from prior quarters; second, to the holders of subordinated units, until each subordinated unit has received the minimum quarterly distribution of $0.2750 ; and third, to the holders of common and subordinated units, pro-rata, until each unit has received a distribution of $0.3163 . If cash distributions to the Partnership's unitholders exceed $0.3163 per common unit and subordinated unit in any quarter, the Partnership's unitholders and Westlake, as the holder of the Partnership's incentive distribution rights, will receive distributions according to the following percentage allocations: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $0.3163 up to $0.3438 85.0 % 15.0 % Above $0.3438 up to $0.4125 75.0 % 25.0 % Above $0.4125 50.0 % 50.0 % For the three months ended September 30, 2016 , the Partnership's distribution exceeded the $0.3163 per common and subordinated unit target, which resulted in distributions to the IDR Holders. The distributions are declared subsequent to quarter end; therefore, the table below represents total distributions declared from earnings of the related periods pertaining to such distributions. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to the Partnership $ 8,661 $ 10,103 $ 30,089 $ 29,046 Less: Limited partners' distribution declared on common units 4,819 4,304 14,057 12,552 Limited partners' distribution declared on subordinated units 4,254 3,798 12,407 11,079 Distribution declared with respect to the incentive distribution rights 91 — 139 — Net income in excess of distribution $ (503 ) $ 2,001 $ 3,486 $ 5,415 Net income per unit applicable to common limited partner units and to subordinated limited partner units is computed by dividing the respective limited partners' interest in net income by the weighted-average number of common units and subordinated units outstanding for the period. Because the Partnership has more than one class of participating securities, it uses the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units, subordinated units and incentive distribution rights. Net income attributable to the Partnership is allocated to the unitholders in accordance with their respective ownership percentages in preparation of the consolidated statement of equity. However, when distributions related to the incentive distribution rights are made, net income equal to the amount of those distributions is first allocated to the general partner before the remaining net income is allocated to the unitholders based on their respective ownership percentages. Basic and diluted net income per unit is the same because the Partnership does not have any potentially dilutive units outstanding for the periods presented. Three Months Ended September 30, 2016 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 4,819 $ 4,254 $ 91 $ 9,164 Net income in excess of distribution (267 ) (236 ) — (503 ) Net income $ 4,552 $ 4,018 $ 91 $ 8,661 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 $ 0.32 $ 0.32 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 Nine Months Ended September 30, 2016 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 14,057 $ 12,407 $ 139 $ 26,603 Net income in excess of distribution 1,852 1,634 — 3,486 Net income $ 15,909 $ 14,041 $ 139 $ 30,089 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 $ 1.11 $ 1.11 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 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
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 Amended Ethylene Sales Agreement. Additionally, the Partnership and OpCo from time to time provide other services or products for which each charges Westlake a fee. Sales to related parties were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net sales—Westlake $ 193,964 $ 207,856 $ 606,859 $ 621,438 Under the Services and Secondment Agreement, OpCo uses a portion of its production capacity to process purge gas for Westlake. On August 4, 2016, OpCo and Westlake entered into an amendment to the Ethylene Sales Agreement in order to provide that certain of the pricing components that make up the price for ethylene sold thereunder would be modified to reflect the portion of OpCo's production capacity that is used to process Westlake's purge gas instead of producing ethylene and to clarify that costs specific to the processing of Westlake's purge gas would be recovered under the Services and Secondment Agreement, and not the Ethylene Sales Agreement. Cost of Sales from Related Parties Charges for goods and services purchased by the Partnership and OpCo from Westlake and included in cost of sales relate primarily to feedstock purchased under the Feedstock Supply Agreement and services provided under the Services and Secondment Agreement. Charges from related parties in cost of sales were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Feedstock purchased from Westlake and included in cost of sales $ 63,693 $ 75,752 $ 181,174 $ 232,584 Other charges from Westlake and included in cost of sales 22,585 20,457 62,703 53,948 Total $ 86,278 $ 96,209 $ 243,877 $ 286,532 Services from Related Parties Included in Selling, General and Administrative Expenses Charges for services purchased by the Partnership from Westlake and included in selling, general and administrative expenses primarily relate to services Westlake performs on behalf of the Partnership under the Omnibus Agreement, including the Partnership's finance, legal, information technology, human resources, communication, ethics and compliance, and other administrative functions. Charges from related parties included within selling, general and administrative expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Services received from Westlake and included in selling, general and administrative expenses $ 5,129 $ 4,772 $ 15,600 $ 14,891 Goods and Services from Related Parties Capitalized as Assets Charges for goods and services purchased by the Partnership and OpCo from Westlake which were capitalized as assets relate primarily to the services of Westlake employees under the Services and Secondment Agreement. Charges from related parties for goods and services capitalized as assets were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Goods and services purchased from Westlake and capitalized as assets $ 4,153 $ 1,304 $ 17,234 $ 3,241 Accounts Receivable from and Accounts Payable to Related Parties The Partnership's accounts receivable from Westlake result primarily from ethylene sales to Westlake and the shortfall recoverable from Westlake under the Ethylene Sales Agreement. Under the Ethylene Sales Agreement, if production costs billed to Westlake on an annual basis are less than 95% of the actual production costs incurred by OpCo during the year, OpCo is entitled to recover the shortfall in the subsequent year. The shortfall is recognized in the period when such production activities occur. 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—Westlake, current and non-current $ 118,573 $ 39,655 Accounts payable—Westlake (7,435 ) (15,550 ) Debt Payable to Related Parties In connection with the IPO, OpCo assumed promissory notes payable to Westlake ("the August 2013 Promissory Notes") and entered into a senior unsecured revolving credit facility with Westlake. In April 2015, the Partnership entered into an unsecured revolving credit facility with Westlake. See Note 9 for a description of related party debt payable balances. Interest on related party debt payable balances for the three months ended September 30, 2016 and 2015 were $4,947 and $1,054 , respectively, and for the nine months ended September 30, 2016 and 2015 were $7,381 and $3,794 , respectively. Interest on related party debt payable is presented as interest expense—Westlake in the consolidated statements of operations. Interest capitalized as a component of plant and equipment on related party debt was $215 and $1,284 for the three months ended September 30, 2016 and 2015 , respectively, and $5,651 and $3,394 for the nine months ended September 30, 2016 and 2015 , respectively. At September 30, 2016 and December 31, 2015 , accrued interest on related party debt was $5,146 and $2,879 , 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 $ 595,083 $ 384,006 General OpCo, together with other subsidiaries of Westlake not included in these consolidated financial statements, were guarantors under Westlake's revolving credit facility and the indentures governing its senior notes. During August 2016, OpCo and certain subsidiaries of Westlake were released from their guarantees. As of December 31, 2015 , Westlake had outstanding letters of credit totaling $30,098 , under its revolving credit facility and $754,000 principal amount outstanding under its senior notes (less the unamortized discount and debt issuance costs of $6,741 , as of December 31, 2015 ). In 2015, the Partnership entered into an interest rate contract with Westlake to fix the London Interbank Offered Rate ("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 two site lease agreements with Westlake, 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, 2016 | |
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 $ 31,775 OpCo Revolver (variable interest rate of LIBOR plus 3.0%, original scheduled maturity of August 4, 2019) 427,967 216,890 MLP Revolver (variable interest rate of LIBOR plus 2.0%, original scheduled maturity of April 29, 2018) 135,341 135,341 $ 595,083 $ 384,006 The weighted average interest rate on all long-term debt was 3.49% and 3.30% at September 30, 2016 and December 31, 2015 , respectively. As of September 30, 2016 , 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) Income | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income 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 changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015: Nine Months Ended September 30, 2016 Balances at December 31, 2015 $ 280 Interest rate contract—Other comprehensive loss before reclassification (784 ) Interest rate contract—Amounts reclassified from accumulated other comprehensive loss into net income 280 Balances at September 30, 2016 $ (224 ) Nine Months Ended September 30, 2015 Balances at December 31, 2014 $ — Interest rate contract—Other comprehensive loss before reclassification (223 ) Interest rate contract—Amounts reclassified from accumulated other comprehensive loss into net income 50 Balances at September 30, 2015 $ (173 ) |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The accounting guidance for derivative instruments and hedging activities requires that the Partnership recognize all derivative instruments on the balance sheet at fair value, and changes in the derivative's fair value must be currently recognized in earnings or comprehensive income, depending on the designation of the derivative. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded in comprehensive income and is recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings currently. Interest Rate Risk Management During August 2015, the Partnership entered into an interest rate contract with Westlake designed to reduce the risks of variability of the interest rate 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, 2016 and 2015 . The fair values of the derivative instrument on the Partnership's consolidated balance sheets were as follows: Derivative Assets Derivative in Cash Flow Hedging Relationship Balance Sheet Location Fair Value as of September 30, December 31, Interest rate contract Deferred charges and other assets, net $ — $ 436 Derivative Liabilities Derivative in Cash Flow Hedging Relationship Balance Sheet Location Fair Value as of September 30, December 31, Interest rate contract Other liabilities $ 118 $ — The following tables present the effect of the derivative instrument designated as cash flow hedge on the consolidated statements of operations and the consolidated statements of comprehensive income for the three and nine months ended September 30, 2016 and 2015 : Derivative in Cash Flow Hedging Relationship Location of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest rate contract—Loss reclassified from accumulated other comprehensive loss Interest expense $ (90 ) $ (50 ) $ (280 ) $ (50 ) Derivative in Cash Flow Hedging Relationship Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest rate contract—Change in value recognized in other comprehensive loss $ (310 ) $ 223 $ (784 ) $ 223 There was no ineffective portion of the derivative instrument during the three and nine months ended September 30, 2016 and 2015 . See Note 12 for the fair value of derivative instruments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Partnership reports certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Under the accounting guidance for fair value measurements, inputs used to measure fair value are classified in one of three levels: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following tables summarize, by level within the fair value hierarchy, the Partnership's liability and asset under the interest rate contract that was accounted for at fair value on a recurring basis: September 30, 2016 Level 2 Total Derivative instruments Liability—Interest rate contract $ 118 $ 118 December 31, 2015 Level 2 Total Derivative instruments Asset—Interest rate contract $ 436 $ 436 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 during the nine months ended September 30, 2016 . 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, 2016 and December 31, 2015 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, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value August 2013 Promissory Notes $ 31,775 $ 31,775 $ 31,775 $ 31,775 OpCo Revolver 427,967 429,539 216,890 215,738 MLP Revolver 135,341 133,708 135,341 130,439 |
Supplemental Information
Supplemental Information | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information Accrued Liabilities Accrued liabilities were $20,953 and $23,407 at September 30, 2016 and December 31, 2015 , respectively. The capital expenditures accrual, accrued interest, accrued taxes and accrued maintenance, which are components of accrued liabilities, were $4,978 , $5,146 , $3,619 and $3,532 , respectively, at September 30, 2016 , and $14,745 , $2,879 , $1,452 and $2,949 , respectively, at December 31, 2015 . No other component of accrued liabilities was more than five percent of total current liabilities. Non-cash Investing Activity The change in capital expenditure accrual increasing additions to property, plant and equipment was $15,859 for the nine months ended September 30, 2016 . The change in capital expenditure accrual reducing additions to property, plant and equipment was $15,850 for the nine months ended September 30, 2015 . |
Major Customer and Concentratio
Major Customer and Concentration Risk | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 and 2015 , Westlake accounted for approximately 84.6% and 83.6% , respectively, of the Partnership's net sales. During the nine months ended September 30, 2016 and 2015 , Westlake accounted for approximately 87.6% and 81.9% , respectively, of the Partnership's net sales. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Partnership is subject to environmental laws and regulations that can impose civil and criminal sanctions and that may require the Partnership to mitigate the effects of contamination caused by the release or disposal of hazardous substances into the environment. These laws include the federal Clean Air Act, the federal Water Pollution Control Act, the Resource Conservation and Recovery Act ("RCRA"), the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), the Toxic Substances Control Act and various other federal, state and local laws and regulations. Under CERCLA, an owner or operator of property may be held strictly liable for remediating contamination without regard to whether that person caused the contamination, and without regard to whether the practices that resulted in the contamination were legal at the time they occurred. Because the Partnership's production sites have a history of industrial use, it is impossible to predict precisely what effect these legal requirements will have on the Partnership. Westlake will indemnify the Partnership for liabilities that occurred or existed prior to August 4, 2014. 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. 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. 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 indicated that it is seeking a consent decree with that would obligate Westlake to take corrective actions relating to the alleged noncompliance. Westlake believes the resolution of these matters may require the payment of a monetary sanction in excess of $100 . Louisiana Notice of Violations . The Louisiana Department of Environmental Quality ("LDEQ") has issued notices of violations ("NOVs") regarding the Partnership's assets, and those of Westlake, for various air and water compliance issues. The Partnership and Westlake are working with LDEQ to settle these claims, and a global settlement of all claims is being discussed. Westlake has reached a verbal agreement with the LDEQ to settle certain of the NOVs in two separate settlements for a combined $192 in civil penalties. In addition to the matters described above, the Partnership is involved in various legal proceedings incidental to the conduct of its business. The Partnership does not believe that any of these legal proceedings will have a material adverse effect on its financial condition, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 31, 2016 , the board of directors of Westlake GP declared a quarterly distribution for the period from July 1, 2016 through September 30, 2016 of $0.3353 per unit and $91 to IDR Holders. This distribution is payable on November 29, 2016 to unitholders and IDR Holders of record as of November 14, 2016 . Subsequent events were evaluated through the date on which the financial statements were issued. |
Description of Business and B24
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited 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 consolidated financial statements should be read in conjunction with the December 31, 2015 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, 2015 (the "2015 Form 10-K"), filed with the SEC on March 8, 2016. 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, 2015. 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. The Partnership’s operations consist exclusively of the variable interest entity’s operations and, as such, no additional variable interest entity disclosures are considered necessary. Westlake's retained interest of 86.7% is recorded as noncontrolling interest in the Partnership's consolidated financial statements. In the opinion of the Partnership's management, the accompanying unaudited 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, 2016 , its results of operations for the three and nine months ended September 30, 2016 and 2015 and the changes in its cash position for the nine months ended September 30, 2016 and 2015 . 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, 2016 or any other interim 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 | Recent Accounting Pronouncements Revenue from Contracts with Customers (ASU No. 2014-09) 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 2016, the FASB issued various additional authoritative guidance for the new revenue recognition standard. The accounting standard will 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. Leases (ASU No. 2016-02) In February 2016, the FASB issued an accounting standards update on a new lease standard that will supersede the existing lease guidance. The standard requires a lessee to recognize assets and liabilities related to long-term leases that are classified as operating leases under current guidance on its balance sheet. An asset would be recognized related to the right to use the underlying asset and a liability would be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures related to leases. The accounting standard will be effective for reporting periods beginning after December 15, 2018. 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. Stock Compensation (ASU No. 2016-09) In March 2016, the FASB issued an accounting standards update to simplify several aspects of the accounting for share-based payment transactions, including income tax consequences, classifications of awards as either equity or liabilities and certain related classifications on the statement of cash flows. In addition, the new guidance permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. The accounting standard is effective for reporting periods beginning after December 15, 2016 and is not expected to have an impact on the Partnership's consolidated financial position, results of operations and cash flows. Credit Losses (ASU No. 2016-13) In June 2016, the FASB issued an accounting standards update providing new guidance for the accounting for credit losses on loans and other financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The standard also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The accounting standard will be effective for reporting periods beginning after December 15, 2019. 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. Cash Flows (ASU No. 2016-15) In August 2016, the FASB issued an accounting standards update providing new guidance on the classification of certain cash receipts and payments including debt extinguishment costs, debt prepayment costs, settlement of zero-coupon debt instruments, contingent consideration payments, proceeds from the settlement of insurance claims and life insurance policies and distributions received from equity method investees in the statement of cash flows. This update is required to be applied using the retrospective transition method to each period presented unless it is impracticable to be applied retrospectively. In such situation, this guidance is to be applied prospectively. The accounting standard will 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. |
Derivative Instruments | Derivative Instruments The accounting guidance for derivative instruments and hedging activities requires that the Partnership recognize all derivative instruments on the balance sheet at fair value, and changes in the derivative's fair value must be currently recognized in earnings or comprehensive income, depending on the designation of the derivative. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded in comprehensive income and is recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings currently. |
Accounts Receivable - Third P25
Accounts Receivable - Third Parties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable - Third Parties | Accounts receivable—third parties consist of the following: September 30, December 31, Trade customers $ 16,097 $ 12,097 Allowance for doubtful accounts (398 ) (170 ) Accounts receivable, net—third parties $ 15,699 $ 11,927 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory | Inventories consist of the following: September 30, December 31, Finished products $ 3,062 $ 3,527 Feedstock, additives and chemicals 366 352 Inventories $ 3,428 $ 3,879 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Assets and Other Liabilities | Other assets consist of the following: September 30, 2016 December 31, 2015 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Intangible asset—Goodwill $ 5,814 $ — $ 5,814 $ 5,814 $ — $ 5,814 Deferred charges and other assets, net Interest rate contract — — — 436 — 436 Turnaround costs 153,767 (58,715 ) 95,052 100,020 (67,767 ) 32,253 Other 8,662 (3,026 ) 5,636 8,710 (2,620 ) 6,090 Total deferred charges and other assets, net 162,429 (61,741 ) 100,688 109,166 (70,387 ) 38,779 Other assets, net $ 168,243 $ (61,741 ) $ 106,502 $ 114,980 $ (70,387 ) $ 44,593 |
Distributions and Net Income 28
Distributions and Net Income Per Limited Partner Unit (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Incentive Distributions Made to Managing Members or General Partners by Distribution | If cash distributions to the Partnership's unitholders exceed $0.3163 per common unit and subordinated unit in any quarter, the Partnership's unitholders and Westlake, as the holder of the Partnership's incentive distribution rights, will receive distributions according to the following percentage allocations: Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders IDR Holders Above $0.3163 up to $0.3438 85.0 % 15.0 % Above $0.3438 up to $0.4125 75.0 % 25.0 % Above $0.4125 50.0 % 50.0 % For the three months ended September 30, 2016 , the Partnership's distribution exceeded the $0.3163 per common and subordinated unit target, which resulted in distributions to the IDR Holders. The distributions are declared subsequent to quarter end; therefore, the table below represents total distributions declared from earnings of the related periods pertaining to such distributions. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to the Partnership $ 8,661 $ 10,103 $ 30,089 $ 29,046 Less: Limited partners' distribution declared on common units 4,819 4,304 14,057 12,552 Limited partners' distribution declared on subordinated units 4,254 3,798 12,407 11,079 Distribution declared with respect to the incentive distribution rights 91 — 139 — Net income in excess of distribution $ (503 ) $ 2,001 $ 3,486 $ 5,415 |
Schedule of Earnings Per Share, Basic and Diluted | Net income attributable to the Partnership is allocated to the unitholders in accordance with their respective ownership percentages in preparation of the consolidated statement of equity. However, when distributions related to the incentive distribution rights are made, net income equal to the amount of those distributions is first allocated to the general partner before the remaining net income is allocated to the unitholders based on their respective ownership percentages. Basic and diluted net income per unit is the same because the Partnership does not have any potentially dilutive units outstanding for the periods presented. Three Months Ended September 30, 2016 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 4,819 $ 4,254 $ 91 $ 9,164 Net income in excess of distribution (267 ) (236 ) — (503 ) Net income $ 4,552 $ 4,018 $ 91 $ 8,661 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 $ 0.32 $ 0.32 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 Nine Months Ended September 30, 2016 Limited Partners' Common Units Limited Partners' Subordinated Units Incentive Distribution Rights Total Net income attributable to the Partnership: Distribution declared $ 14,057 $ 12,407 $ 139 $ 26,603 Net income in excess of distribution 1,852 1,634 — 3,486 Net income $ 15,909 $ 14,041 $ 139 $ 30,089 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 $ 1.11 $ 1.11 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 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Charges from related parties included within selling, general and administrative expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Services received from Westlake and included in selling, general and administrative expenses $ 5,129 $ 4,772 $ 15,600 $ 14,891 Sales to related parties were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net sales—Westlake $ 193,964 $ 207,856 $ 606,859 $ 621,438 Debt payable to related parties was as follows: September 30, December 31, Long-term debt payable to Westlake $ 595,083 $ 384,006 The related party accounts receivable and accounts payable balances were as follows: September 30, December 31, Accounts receivable—Westlake, current and non-current $ 118,573 $ 39,655 Accounts payable—Westlake (7,435 ) (15,550 ) Charges from related parties for goods and services capitalized as assets were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Goods and services purchased from Westlake and capitalized as assets $ 4,153 $ 1,304 $ 17,234 $ 3,241 Charges from related parties in cost of sales were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Feedstock purchased from Westlake and included in cost of sales $ 63,693 $ 75,752 $ 181,174 $ 232,584 Other charges from Westlake and included in cost of sales 22,585 20,457 62,703 53,948 Total $ 86,278 $ 96,209 $ 243,877 $ 286,532 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 $ 31,775 OpCo Revolver (variable interest rate of LIBOR plus 3.0%, original scheduled maturity of August 4, 2019) 427,967 216,890 MLP Revolver (variable interest rate of LIBOR plus 2.0%, original scheduled maturity of April 29, 2018) 135,341 135,341 $ 595,083 $ 384,006 |
Long-term Debt Payable to Wes30
Long-term Debt Payable to Westlake (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Charges from related parties included within selling, general and administrative expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Services received from Westlake and included in selling, general and administrative expenses $ 5,129 $ 4,772 $ 15,600 $ 14,891 Sales to related parties were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net sales—Westlake $ 193,964 $ 207,856 $ 606,859 $ 621,438 Debt payable to related parties was as follows: September 30, December 31, Long-term debt payable to Westlake $ 595,083 $ 384,006 The related party accounts receivable and accounts payable balances were as follows: September 30, December 31, Accounts receivable—Westlake, current and non-current $ 118,573 $ 39,655 Accounts payable—Westlake (7,435 ) (15,550 ) Charges from related parties for goods and services capitalized as assets were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Goods and services purchased from Westlake and capitalized as assets $ 4,153 $ 1,304 $ 17,234 $ 3,241 Charges from related parties in cost of sales were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Feedstock purchased from Westlake and included in cost of sales $ 63,693 $ 75,752 $ 181,174 $ 232,584 Other charges from Westlake and included in cost of sales 22,585 20,457 62,703 53,948 Total $ 86,278 $ 96,209 $ 243,877 $ 286,532 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 $ 31,775 OpCo Revolver (variable interest rate of LIBOR plus 3.0%, original scheduled maturity of August 4, 2019) 427,967 216,890 MLP Revolver (variable interest rate of LIBOR plus 2.0%, original scheduled maturity of April 29, 2018) 135,341 135,341 $ 595,083 $ 384,006 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The following sets forth the changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016 and 2015: Nine Months Ended September 30, 2016 Balances at December 31, 2015 $ 280 Interest rate contract—Other comprehensive loss before reclassification (784 ) Interest rate contract—Amounts reclassified from accumulated other comprehensive loss into net income 280 Balances at September 30, 2016 $ (224 ) Nine Months Ended September 30, 2015 Balances at December 31, 2014 $ — Interest rate contract—Other comprehensive loss before reclassification (223 ) Interest rate contract—Amounts reclassified from accumulated other comprehensive loss into net income 50 Balances at September 30, 2015 $ (173 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivatives Instruments in Consolidated Balance Sheet | The fair values of the derivative instrument on the Partnership's consolidated balance sheets were as follows: Derivative Assets Derivative in Cash Flow Hedging Relationship Balance Sheet Location Fair Value as of September 30, December 31, Interest rate contract Deferred charges and other assets, net $ — $ 436 Derivative Liabilities Derivative in Cash Flow Hedging Relationship Balance Sheet Location Fair Value as of September 30, December 31, Interest rate contract Other liabilities $ 118 $ — |
Derivative Instruments, Gain (Loss) | The following tables present the effect of the derivative instrument designated as cash flow hedge on the consolidated statements of operations and the consolidated statements of comprehensive income for the three and nine months ended September 30, 2016 and 2015 : Derivative in Cash Flow Hedging Relationship Location of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest rate contract—Loss reclassified from accumulated other comprehensive loss Interest expense $ (90 ) $ (50 ) $ (280 ) $ (50 ) Derivative in Cash Flow Hedging Relationship Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Interest rate contract—Change in value recognized in other comprehensive loss $ (310 ) $ 223 $ (784 ) $ 223 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | The following tables summarize, by level within the fair value hierarchy, the Partnership's liability and asset under the interest rate contract that was accounted for at fair value on a recurring basis: September 30, 2016 Level 2 Total Derivative instruments Liability—Interest rate contract $ 118 $ 118 December 31, 2015 Level 2 Total Derivative instruments Asset—Interest rate contract $ 436 $ 436 |
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, 2016 and December 31, 2015 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, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value August 2013 Promissory Notes $ 31,775 $ 31,775 $ 31,775 $ 31,775 OpCo Revolver 427,967 429,539 216,890 215,738 MLP Revolver 135,341 133,708 135,341 130,439 |
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, 2016production_facility |
Westlake Chemical OpCo LP [Member] | Affiliated Entity [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Limited partner interest | 13.30% | 10.60% | ||
Limited partner interest, additional ownership | 2.70% | |||
Amount paid to purchase additional limited partner interest | $ | $ 135,341 | |||
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 ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Held-to-maturity Securities [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 65,000,000 | $ 0 |
Accounts Receivable - Third P36
Accounts Receivable - Third Parties Accounts Receivable—Third Parties (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts Receivable, Net [Abstract] | ||
Trade customers | $ 16,097 | $ 12,097 |
Allowance for doubtful accounts | (398) | (170) |
Accounts receivable, net - third parties | $ 15,699 | $ 11,927 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 3,062 | $ 3,527 |
Feedstock, additives and chemicals | 366 | 352 |
Inventories | $ 3,428 | $ 3,879 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||||
Property, plant and equipment, net | $ 1,217,451 | $ 1,217,451 | $ 1,020,469 | ||
Depreciation expense on property, plant and equipment | $ 19,773 | $ 16,231 | $ 53,420 | $ 48,006 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Other Assets [Line Items] | |||||
Intangible asset—Goodwill, Cost | $ 5,814 | $ 5,814 | $ 5,814 | ||
Intangible asset—Goodwill, Net | 5,814 | 5,814 | 5,814 | ||
Interest rate contract, Cost | 0 | 0 | 436 | ||
Interest rate contract, Net | 0 | 0 | 436 | ||
Turnaround costs, Cost | 153,767 | 153,767 | 100,020 | ||
Accumulated amortization, turnaround costs | (58,715) | (58,715) | (67,767) | ||
Turnaround costs, Net | 95,052 | 95,052 | 32,253 | ||
Other, Cost | 8,662 | 8,662 | 8,710 | ||
Accumulated amortization, other | (3,026) | (3,026) | (2,620) | ||
Other, Net | 5,636 | 5,636 | 6,090 | ||
Total net deferred charges and other assets, Cost | 162,429 | 162,429 | 109,166 | ||
Accumulated amortization, Total deferred charges and other assets, net | (61,741) | (61,741) | (70,387) | ||
Total deferred charges and other assets, net | 100,688 | 100,688 | 38,779 | ||
Accumulated amortization, other assets | (61,741) | (61,741) | (70,387) | ||
Other assets, Cost | 168,243 | 168,243 | 114,980 | ||
Total other assets, net | 106,502 | 106,502 | $ 44,593 | ||
Other Assets [Member] | |||||
Other Assets [Line Items] | |||||
Amortization expense | $ 6,517 | $ 4,211 | $ 14,052 | $ 12,631 |
Distributions and Net Income 40
Distributions and Net Income Per Limited Partner Unit (Distributions Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Distribution Made to Limited Partner [Line Items] | |||||
Net income attributable to the Partnership | $ 8,661 | $ 10,103 | $ 30,089 | $ 29,046 | |
Distributions declared | 9,164 | 8,102 | 26,603 | 23,631 | |
Net income in excess of distribution | (503) | 2,001 | 3,486 | 5,415 | |
IDR Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Net income attributable to the Partnership | 91 | 0 | 139 | 0 | |
Distribution declared with respect to the incentive distribution rights | 91 | 0 | 139 | 0 | |
Net income in excess of distribution | 0 | 0 | 0 | 0 | |
Common units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Net income attributable to the Partnership | 4,552 | 5,365 | 15,909 | 15,429 | |
Distributions declared | 4,819 | 4,304 | 14,057 | 12,552 | |
Net income in excess of distribution | (267) | 1,061 | 1,852 | 2,877 | |
Subordinated units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Net income attributable to the Partnership | 4,018 | 4,738 | 14,041 | 13,617 | |
Distributions declared | 4,254 | 3,798 | 12,407 | 11,079 | |
Net income in excess of distribution | (236) | 940 | 1,634 | 2,538 | |
Cash Distribution [Member] | IDR Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Distribution declared with respect to the incentive distribution rights | 91 | 0 | $ 139 | 0 | |
Cash Distribution [Member] | IDR Holders [Member] | Subsequent Event [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Distribution declared and paid to IDR holders | $ 91 | ||||
Cash Distribution [Member] | Common units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Minimum quarterly distribution per unit | $ 0.2750 | ||||
Distributions declared | 4,819 | 4,304 | $ 14,057 | 12,552 | |
Cash Distribution [Member] | Subordinated units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Minimum quarterly distribution per unit | $ 0.2750 | ||||
Distributions declared | $ 4,254 | $ 3,798 | $ 12,407 | $ 11,079 | |
Cash Distribution [Member] | Common And Subordinated Units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Target distribution per unit requiring marginal percentage distribution to IDR Holders | $ 0.3163 | ||||
Cash Distribution [Member] | Common And Subordinated Units [Member] | Subsequent Event [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Distribution declared per unit (in usd per unit) | $ 0.3353 | ||||
Above $0.3163 up to $0.3438 | Minimum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Target distribution per unit requiring marginal percentage distribution to IDR Holders | 0.3163 | ||||
Above $0.3163 up to $0.3438 | Maximum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Target distribution per unit requiring marginal percentage distribution to IDR Holders | $ 0.3438 | ||||
Above $0.3163 up to $0.3438 | IDR Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Marginal percentage interest in distributions | 15.00% | ||||
Above $0.3163 up to $0.3438 | Unit Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Marginal percentage interest in distributions | 85.00% | ||||
Above $0.3438 up to $0.4125 | Minimum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Target distribution per unit requiring marginal percentage distribution to IDR Holders | $ 0.3438 | ||||
Above $0.3438 up to $0.4125 | Maximum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Quarterly incentive distribution, per unit, distribution threshold | $ 0.4125 | ||||
Above $0.3438 up to $0.4125 | IDR Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Marginal percentage interest in distributions | 25.00% | ||||
Above $0.3438 up to $0.4125 | Unit Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Marginal percentage interest in distributions | 75.00% | ||||
Above $0.4125 | Minimum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Quarterly incentive distribution, per unit, distribution threshold | $ 0.4125 | ||||
Above $0.4125 | IDR Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Marginal percentage interest in distributions | 50.00% | ||||
Above $0.4125 | Unit Holders [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Marginal percentage interest in distributions | 50.00% |
Distributions and Net Income 41
Distributions and Net Income Per Limited Partner Unit (Income In Excess Of Distribution) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Net income attributable to the Partnership | $ 8,661 | $ 10,103 | $ 30,089 | $ 29,046 |
Distributions declared | 9,164 | 8,102 | 26,603 | 23,631 |
Net income in excess of distribution | (503) | 2,001 | 3,486 | 5,415 |
IDR Holders [Member] | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Net income attributable to the Partnership | 91 | 0 | 139 | 0 |
Distribution declared with respect to the incentive distribution rights | 91 | 0 | 139 | 0 |
Net income in excess of distribution | 0 | 0 | 0 | 0 |
Common units [Member] | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Net income attributable to the Partnership | 4,552 | 5,365 | 15,909 | 15,429 |
Distributions declared | 4,819 | 4,304 | 14,057 | 12,552 |
Net income in excess of distribution | (267) | 1,061 | 1,852 | 2,877 |
Subordinated units [Member] | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Net income attributable to the Partnership | 4,018 | 4,738 | 14,041 | 13,617 |
Distributions declared | 4,254 | 3,798 | 12,407 | 11,079 |
Net income in excess of distribution | (236) | 940 | 1,634 | 2,538 |
Cash Distribution [Member] | IDR Holders [Member] | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Distribution declared with respect to the incentive distribution rights | 91 | 0 | 139 | 0 |
Cash Distribution [Member] | Common units [Member] | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Distributions declared | 4,819 | 4,304 | 14,057 | 12,552 |
Cash Distribution [Member] | Subordinated units [Member] | ||||
Incentive Distribution Made to Managing Member or General Partner [Line Items] | ||||
Distributions declared | $ 4,254 | $ 3,798 | $ 12,407 | $ 11,079 |
Distributions and Net Income 42
Distributions and Net Income Per Limited Partner Unit (Basic and Diluted Income Per Limited Partner Unit) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Limited Partners' Capital Account [Line Items] | ||||
Distributions declared | $ 9,164 | $ 8,102 | $ 26,603 | $ 23,631 |
Net income in excess of distribution | (503) | 2,001 | 3,486 | 5,415 |
Net income | $ 8,661 | $ 10,103 | $ 30,089 | $ 29,046 |
Weighted average units outsanding: | ||||
Basic and diluted (shares) | 27,059,730 | 27,059,730 | 27,059,730 | 27,059,730 |
Common units [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Distributions declared | $ 4,819 | $ 4,304 | $ 14,057 | $ 12,552 |
Net income in excess of distribution | (267) | 1,061 | 1,852 | 2,877 |
Net income | $ 4,552 | $ 5,365 | $ 15,909 | $ 15,429 |
Weighted average units outsanding: | ||||
Basic and diluted (shares) | 14,373,615 | 14,373,615 | 14,373,615 | 14,373,615 |
Net income per limited partner unit: | ||||
Income per limited partner unit (usd per share) | $ 0.32 | $ 0.37 | $ 1.11 | $ 1.07 |
Subordinated units [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Distributions declared | $ 4,254 | $ 3,798 | $ 12,407 | $ 11,079 |
Net income in excess of distribution | (236) | 940 | 1,634 | 2,538 |
Net income | $ 4,018 | $ 4,738 | $ 14,041 | $ 13,617 |
Weighted average units outsanding: | ||||
Basic and diluted (shares) | 12,686,115 | 12,686,115 | 12,686,115 | 12,686,115 |
Net income per limited partner unit: | ||||
Income per limited partner unit (usd per share) | $ 0.32 | $ 0.37 | $ 1.11 | $ 1.07 |
IDR Holders [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Subsequent distribution to IDR holders | $ 91 | $ 0 | $ 139 | $ 0 |
Net income in excess of distribution | 0 | 0 | 0 | 0 |
Net income | $ 91 | $ 0 | $ 139 | $ 0 |
Related Party Transactions (Sal
Related Party Transactions (Sales to Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Net sales - Westlake | $ 193,964 | $ 207,856 | $ 606,859 | $ 621,438 |
Affiliated Entity [Member] | Westlake [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net sales - Westlake | $ 193,964 | $ 207,856 | $ 606,859 | $ 621,438 |
Related Party Transactions (Cos
Related Party Transactions (Cost of Sales from Related Parties) (Details) - Affiliated Entity [Member] - Westlake [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Charges from related parties in cost of sales | $ 86,278 | $ 96,209 | $ 243,877 | $ 286,532 |
Feedstock purchased [Member] | ||||
Related Party Transaction [Line Items] | ||||
Charges from related parties in cost of sales | 63,693 | 75,752 | 181,174 | 232,584 |
Other service charges [Member] | ||||
Related Party Transaction [Line Items] | ||||
Charges from related parties in cost of sales | $ 22,585 | $ 20,457 | $ 62,703 | $ 53,948 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Affiliated Entity [Member] | Westlake [Member] | ||||
Related Party Transaction [Line Items] | ||||
Services received from Westlake and included in selling, general and administrative expenses | $ 5,129 | $ 4,772 | $ 15,600 | $ 14,891 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Affiliated Entity [Member] | Westlake [Member] | ||||
Related Party Transaction [Line Items] | ||||
Goods and services purchased from Westlake and capitalized as assets | $ 4,153 | $ 1,304 | $ 17,234 | $ 3,241 |
Related Party Transactions (Acc
Related Party Transactions (Accounts Receivable from and Accounts Payable to Related Parties) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accounts payable—Westlake | $ (7,435) | $ (15,550) |
Affiliated Entity [Member] | Westlake [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable—Westlake, current and non-current | 118,573 | 39,655 |
Accounts payable—Westlake | $ (7,435) | $ (15,550) |
Related Party Transactions (Deb
Related Party Transactions (Debt Payable to Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Interest on related party debt payable | $ 4,947 | $ 1,054 | $ 7,381 | $ 3,794 | |
Accrued interest on related party debt | 5,146 | 5,146 | $ 2,879 | ||
Long-term debt payable to Westlake | 595,083 | 595,083 | 384,006 | ||
Affiliated Entity [Member] | Westlake [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest capitalized | 215 | 1,284 | 5,651 | 3,394 | |
Long-term debt payable to Westlake | 595,083 | 595,083 | 384,006 | ||
Other income (expense) | Affiliated Entity [Member] | Westlake [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest on related party debt payable | 4,947 | $ 1,054 | 7,381 | $ 3,794 | |
Accrued Liabilities [Member] | Affiliated Entity [Member] | Westlake [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accrued interest on related party debt | $ 5,146 | $ 5,146 | 2,879 | ||
Senior Notes [Member] | Westlake [Member] | |||||
Related Party Transaction [Line Items] | |||||
Unamortized discount and debt issuance costs | $ 6,741 |
Related Party Transactions (Gen
Related Party Transactions (General) (Details) - Westlake [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Senior unsecured revolving credit facility [Member] | |
Related Party Transaction [Line Items] | |
Outstanding letters of credit | $ 30,098 |
Senior Notes [Member] | |
Related Party Transaction [Line Items] | |
Long-term debt outstanding | 754,000 |
Unamortized discount and debt issuance costs | $ 6,741 |
Related Party Transactions (Sit
Related Party Transactions (Site Lease Agreements) (Details) - Westlake Chemical OpCo LP [Member] - Affiliated Entity [Member] - Site Lease Agreement [Member] | 9 Months Ended |
Sep. 30, 2016USD ($)lease | |
Related Party Transaction [Line Items] | |
Number of site lease agreements | lease | 2 |
Lease term | 50 years |
Operating lease rent expense | $ | $ 1 |
Long-term Debt Payable to Wes51
Long-term Debt Payable to Westlake (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Long-term debt payable to Westlake | $ 595,083 | $ 384,006 |
Weighted average interest rate | 3.49% | 3.30% |
Limited Partner [Member] | August 2013 Promissory Note [Member] | Senior Notes [Member] | ||
Related Party Transaction [Line Items] | ||
Long-term debt payable to Westlake | $ 31,775 | $ 31,775 |
Limited Partner [Member] | August 2013 Promissory Note [Member] | Senior Notes [Member] | Prime Rate [Member] | ||
Related Party Transaction [Line Items] | ||
Basis spread on variable rate, percent | 1.50% | 1.50% |
Limited Partner [Member] | OpCo Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Long-term debt payable to Westlake | $ 427,967 | $ 216,890 |
Limited Partner [Member] | OpCo Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | LIBOR [Member] | ||
Related Party Transaction [Line Items] | ||
Basis spread on variable rate, percent | 3.00% | 3.00% |
Limited Partner [Member] | MLP Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Long-term debt payable to Westlake | $ 135,341 | $ 135,341 |
Limited Partner [Member] | MLP Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | LIBOR [Member] | ||
Related Party Transaction [Line Items] | ||
Basis spread on variable rate, percent | 2.00% | 2.00% |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive (Loss) Income (Details) - Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ 280 | $ 0 |
Interest rate contract - Other comprehensive loss before reclassification | (784) | (223) |
Interest rate contract - Amounts reclassified to net income | 280 | 50 |
Balance at end of period | $ (224) | $ (173) |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||
Ineffective portion of a derivative instrument | $ 0 | $ 0 | |||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Change in value recognized in other comprehensive loss | (310,000) | $ 223,000 | (784,000) | $ 223,000 | |
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Deferred charges and other assets, net [Member] | |||||
Derivative [Line Items] | |||||
Asset - Interest rate contract | 0 | 0 | $ 436,000 | ||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Liability - Interest rate contract | 118,000 | 118,000 | $ 0 | ||
Interest Rate Contract [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Loss recognized in statement of operations | $ (90,000) | $ (50,000) | $ (280,000) | $ (50,000) |
Derivative Instruments (Ineffec
Derivative Instruments (Ineffective Portion) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
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) - Fair Value, Measurements, Recurring [Member] - Interest Rate Contract [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability - Interest rate contract | $ 118 | |
Asset - Interest rate contract | $ 436 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability - Interest rate contract | $ 118 | |
Asset - Interest rate contract | $ 436 |
Fair Value Measurements (Summ56
Fair Value Measurements (Summary of Carrying and Fair Values of Long Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt payable to Westlake, carrying value | $ 595,083 | $ 384,006 |
August 2013 Promissory Note [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt payable to Westlake, fair value | 31,775 | 31,775 |
August 2013 Promissory Note [Member] | Senior Notes [Member] | Limited Partner [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt payable to Westlake, carrying value | 31,775 | 31,775 |
OpCo Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt payable to Westlake, fair value | 429,539 | 215,738 |
OpCo Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | Limited Partner [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt payable to Westlake, carrying value | 427,967 | 216,890 |
MLP Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt payable to Westlake, fair value | 133,708 | 130,439 |
MLP Revolver [Member] | Senior Unsecured Revolving Credit Facility [Member] | Limited Partner [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt payable to Westlake, carrying value | $ 135,341 | $ 135,341 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |||
Accrued liabilities | $ 20,953 | $ 23,407 | |
Accrued capital expenditures | 4,978 | 14,745 | |
Accrued interest | 5,146 | 2,879 | |
Accrued taxes | 3,619 | 1,452 | |
Accrued maintenance | 3,532 | $ 2,949 | |
Increase (reduction) in capital expenditure accrual | $ 15,859 | $ (15,850) |
Major Customer and Concentrat58
Major Customer and Concentration Risk (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales [Member] | Customer Concentration Risk [Member] | Westlake [Member] | Affiliated Entity [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk percentage of net sales | 84.60% | 83.60% | 87.60% | 81.90% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)settlement | Apr. 21, 2014USD ($) | |
Loss Contingencies [Line Items] | ||
Number of claims settled | settlement | 2 | |
Pending Litigation [Member] | Unfavorable Regulatory Action [Member] | ||
Loss Contingencies [Line Items] | ||
Possible amount of claims in settlement for compliance violations | $ 100 | |
Settled Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of settlement for compliance violations | $ 192 |
Subsequent Events (Details)
Subsequent Events (Details) - Cash Distribution [Member] - Subsequent Event [Member] $ / shares in Units, $ in Thousands | Oct. 31, 2016USD ($)$ / shares |
IDR Holders [Member] | |
Subsequent Event [Line Items] | |
Distribution declared and paid to IDR holders | $ | $ 91 |
Common And Subordinated Units [Member] | |
Subsequent Event [Line Items] | |
Distribution declared per unit (in usd per unit) | $ / shares | $ 0.3353 |