Distributions and Net Income Per Limited Partner Unit

On April 30, 2018, 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 January 1, 2018 through March 31, 2018 of $0.3975 per unit and of $733 to the holder of the Partnership's incentive distribution rights ("IDR Holder"). This distribution is payable on May 24, 2018 to the unitholders and IDR Holder of record as of May 10, 2018.

The Partnership Agreement provides that the Partnership will distribute cash each quarter in the following manner: first, to all the unitholders, until each unit has received the minimum quarterly distribution of $0.2750, plus any arrearages from prior quarters; and second, to all the unitholders, pro-rata, until each unit has received a distribution of $0.3163. 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 March 31, 2018, the Partnership's distribution exceeded the $0.3163 per common 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 March 31,
	2018			2017
Net income attributable to the Partnership	$	12,295		$	9,764
Less:
Limited partners' distributions declared on common units	12,814			5,101
Limited partners' distributions declared on subordinated units	—			4,502
Distributions declared with respect to the incentive distribution rights	733			231
Distribution in excess of net income	$	(1,252	)	$	(70	)

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 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.

The 12,686,115 subordinated units, all of which were owned by Westlake, were converted into common units during the third quarter of 2017 and were considered converted as of July 1, 2017 for purposes of calculating net income per unit. Therefore, the subordinated units did not share in the distribution of cash generated nor did the partnership allocate any earnings to the subordinated unitholders for the determination of net income per unit subsequent to June 30, 2017.



	Three Months Ended March 31, 2018
	Limited Partners' Common Units			Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution declared	$	12,814		$	733	$	13,547
Distribution in excess of net income	(1,252		)	—		(1,252		)
Net income	$	11,562		$	733	$	12,295
Weighted average units outstanding:
Basic and diluted	32,236,449					32,236,449
Net income per limited partner unit:
Basic and diluted	$	0.36



	Three Months Ended March 31, 2017
	Limited Partners' Common Units			Limited Partners' Subordinated Units			Incentive Distribution Rights		Total
Net income attributable to the Partnership:
Distribution declared	$	5,101		$	4,502		$	231	$	9,834
Distribution in excess of net income	(37		)	(33		)	—		(70		)
Net income	$	5,064		$	4,469		$	231	$	9,764
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	$	0.35		$	0.35