Distributions and Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2022

Distributions and Net Income Per Limited Partner Unit

On May 2, 2022, the board of directors of Westlake Chemical Partners GP LLC ("Westlake GP"), the Partnership's general partner, declared a quarterly cash distribution for the three months ended March 31, 2022 of $0.4714 per unit. This distribution is payable on May 26, 2022 to unitholders of record as of May 12, 2022.

Distributions are declared subsequent to quarter end; therefore, the table below represents total cash distributions declared from earnings of the related periods pertaining to such distributions.


	Three Months Ended March 31,
	2022		2021
Net income attributable to the Partnership	$	16,194	$	15,146
Less:
Limited partners' distribution declared on common units	16,600		16,593


Distribution in excess of net income	$	(406)	$	(1,447)

Net income per unit applicable to common limited partner units is computed by dividing the respective limited partners' interest in net income by the weighted-average number of common 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 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 statements of changes in 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 March 31, 2022
	Limited Partners' Common Units		Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution	$	16,600	$	—	$	16,600
Distribution in excess of net income	(406)		—		(406)
Net income	$	16,194	$	—	$	16,194
Weighted average units outstanding:
Basic and diluted	35,214,416				35,214,416
Net income per limited partner unit:
Basic and diluted	$	0.46


	Three Months Ended March 31, 2021
	Limited Partners' Common Units		Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution	$	16,593	$	—	$	16,593
Distribution in excess of net income	(1,447)		—		(1,447)
Net income	$	15,146	$	—	$	15,146
Weighted average units outstanding:
Basic and diluted	35,198,903				35,198,903
Net income per limited partner unit:
Basic and diluted	$	0.43

The amended Partnership Agreement provides that the Partnership will distribute cash each quarter to all the unitholders, pro rata, until each unit has received a distribution of $1.2938. If cash distributions to the Partnership's unitholders exceed $1.2938 per common 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 $1.2938 up to $1.4063	85.0	%	15.0	%
Above $1.4063 up to $1.6875	75.0	%	25.0	%
Above $1.6875	50.0	%	50.0	%

The Partnership's distribution for the three months ended March 31, 2022 did not exceed the $1.2938 per unit threshold, and, as a result, no distribution was made with respect to the Partnership's incentive distribution rights to Westlake, as the holder of the Partnership's incentive distribution rights.

Distribution Per Common Unit

Distributions per common unit for the three months ended March 31, 2022 and 2021 were as follows:


	Three Months Ended March 31,
	2022		2021
Distributions per common unit	$	0.4714	$	0.4714