Distributions and Net Income Per Limited Partner Unit (Tables)

9 Months Ended

Sep. 30, 2017

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 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, 2017, the Partnership's distribution exceeded the $0.3163 per common and unit target, which resulted in distributions to the IDR Holder.

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,
	2017		2016			2017		2016
Net income attributable to the Partnership	$	13,385	$	8,661		$	33,124	$	30,089
Less:
Limited partners' distribution declared on common units	12,107		4,819			22,454		14,057
Limited partners' distribution declared on subordinated units	—		4,254			9,133		12,407
Distribution declared with respect to the incentive distribution rights	498		91			1,052		139
Net income in excess of distribution (distribution in excess of net income)	$	780	$	(503	)	$	485	$	3,486

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.

As discussed further in Note 7, the 12,686,115 subordinated units, all of which were owned by Westlake, were converted into common units during the third quarter of 2017. For purposes of calculating net income per unit, the subordinated units were treated as if they had been converted to common units on July 1, 2017. Therefore, the subordinated units did not share in the distribution of cash generated during the three months ended September 30, 2017, and the Partnership did not allocate any earnings to the subordinated unitholders for that period for the determination of net income per unit.



	Three Months Ended September 30, 2017
	Limited Partners' Common Units		Limited Partners' Subordinated Units		Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution declared	$	12,107	$	—	$	498	$	12,605
Net income in excess of distribution	780		—		—		780
Net income	$	12,887	$	—	$	498	$	13,385
Weighted average units outstanding:
Basic and diluted	27,172,230		—				27,172,230
Net income per limited partner unit:
Basic and diluted	$	0.47	$	—



	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
Distribution in excess of net income	(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



	Nine Months Ended September 30, 2017
	Limited Partners' Common Units		Limited Partners' Subordinated Units			Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution declared	$	22,454	$	9,133		$	1,052	$	32,639
Net income in excess of distribution (distribution in excess of net income)	624		(139		)	—		485
Net income	$	23,078	$	8,994		$	1,052	$	33,124
Weighted average units outstanding:
Basic and diluted	18,686,701		8,410,941					27,097,642
Net income per limited partner unit:
Basic and diluted	$	1.23	$	1.07



	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