Westlake Chemical Partners LPWLKP
Westlake Chemical Partners LP Earnings Per Share Disclosure
Distributions and Net Income Per Limited Partner Unit
On January 27, 2026, 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 October 1, 2025 to December 31, 2025 of $0.4714 per common unit. This distribution was paid on February 23, 2026 to unitholders of record as of February 6, 2026.
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.
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Net income attributable to the Partnership | $ | 48,698 | $ | 62,392 | $ | 54,283 | ||||||||||||||
| Less: | ||||||||||||||||||||
| Limited partners' distribution declared on common units | 66,453 | 66,437 | 66,421 | |||||||||||||||||
Distribution in excess of net income | $ | (17,755) | $ | (4,045) | $ | (12,138) | ||||||||||||||
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.
| Year Ended December 31, 2025 | ||||||||||||||||||||
| Limited Partners' Common Units | Incentive Distribution Rights | Total | ||||||||||||||||||
| Net income attributable to the Partnership: | ||||||||||||||||||||
| Distribution | $ | 66,453 | $ | — | $ | 66,453 | ||||||||||||||
| Distribution in excess of net income | (17,755) | — | (17,755) | |||||||||||||||||
| Net income | $ | 48,698 | $ | — | $ | 48,698 | ||||||||||||||
| Weighted average units outstanding: | ||||||||||||||||||||
| Basic and diluted | 35,241,505 | 35,241,505 | ||||||||||||||||||
| Net income per limited partner unit: | ||||||||||||||||||||
| Basic and diluted | $ | 1.38 | ||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||
| Limited Partners' Common Units | Incentive Distribution Rights | Total | ||||||||||||||||||
| Net income attributable to the Partnership: | ||||||||||||||||||||
| Distribution | $ | 66,437 | $ | — | $ | 66,437 | ||||||||||||||
Distribution in excess of net income | (4,045) | — | (4,045) | |||||||||||||||||
| Net income | $ | 62,392 | $ | — | $ | 62,392 | ||||||||||||||
| Weighted average units outstanding: | ||||||||||||||||||||
| Basic and diluted | 35,232,870 | 35,232,870 | ||||||||||||||||||
| Net income per limited partner unit: | ||||||||||||||||||||
| Basic and diluted | $ | 1.77 | ||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||
| Limited Partners' Common Units | Incentive Distribution Rights | Total | ||||||||||||||||||
| Net income attributable to the Partnership: | ||||||||||||||||||||
| Distribution | $ | 66,421 | $ | — | $ | 66,421 | ||||||||||||||
Distribution in excess of net income | (12,138) | — | (12,138) | |||||||||||||||||
| Net income | $ | 54,283 | $ | — | $ | 54,283 | ||||||||||||||
| Weighted average units outstanding: | ||||||||||||||||||||
| Basic and diluted | 35,224,340 | 35,224,340 | ||||||||||||||||||
| Net income per limited partner unit: | ||||||||||||||||||||
| Basic and diluted | $ | 1.54 | ||||||||||||||||||
The amended Partnership Agreement provides that the Partnership will distribute cash that is deemed to be an appropriate portion of the Partnership's total operating surplus. 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 each quarter in the year ended December 31, 2025 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 years ended December 31, 2025, 2024 and 2023 were as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Distributions per common unit | $ | 1.8856 | $ | 1.8856 | $ | 1.8856 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 2, 2022 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.