Westlake Chemical Partners LP Statement on Final Regulations Relating to its Qualifying Income Activities
January 19 2017 - 7:00PM
Business Wire
• Final regulations uphold previous favorable private letter
ruling granted on ethylene by the Internal Revenue Service to
Westlake
The Internal Revenue Service (“IRS”) and U.S. Department of
Treasury (“Treasury”) today issued final regulations under section
7704(d)(1)(E) of the Internal Revenue Code (the “Code”) relating to
qualifying income from the processing, refining and transportation
of minerals or natural resources, which allows a business to be
treated as a partnership for U.S. federal tax purposes.
Westlake Chemical Corporation (NYSE:WLK) previously requested
and received a favorable private letter ruling from the IRS, prior
to formation and initial public offering of Westlake Chemical
Partners LP (NYSE:WLKP) (the “Partnership”), to the effect that the
production, transportation, storage and marketing of ethylene
constitutes “qualifying income” within the meaning of section
7704(d)(1)(E).
The final regulations issued today by the IRS and Treasury
uphold Westlake’s private letter ruling and holds that the
Partnership’s activities constitute “qualifying income.”
“We appreciate the thorough process taken by the IRS and
Treasury Department to reach their final decision and are pleased
that the final regulations reconfirm and properly recognize these
industry practices and remove uncertainty that our activities will
continue to generate qualifying income under the Code,” said Albert
Chao, President and Chief Executive Officer.
Westlake Chemical Partners LP
Westlake Chemical Partners LP is a limited partnership formed by
Westlake Chemical Corporation to operate, acquire and develop
facilities for the processing of natural gas liquids as well as
other qualifying activities. Headquartered in Houston, Texas, the
Partnership owns a 13.3% interest in Westlake Chemical OpCo LP.
Westlake Chemical OpCo LP’s assets include three facilities in
Calvert City, Kentucky, and Lake Charles, Louisiana, which process
ethane and propane into ethylene, and an ethylene pipeline. For
more information about Westlake Chemical Partners LP, please visit
http://www.wlkpartners.com.
Forward-Looking Statements
Certain of the statements contained in this press release are
forward-looking statements. All statements, other than statements
of historical facts, included in this press release that address
activities, events or developments that the Partnership expects,
projects, believes or anticipates will or may occur in the future
are forward-looking statements. Forward-looking statements can be
identified by the use of words such as “believes,” “intends,”
“may,” “should,” “could,” “anticipates,” “expects,” “will” or
comparable terminology, or by discussions of strategies or trends.
Although the Partnership believes that the expectations reflected
in such forward-looking statements are reasonable, the Partnership
cannot give any assurances that these expectations will prove to be
correct.
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Westlake:Investor
Inquiries:Mr. Steve Bender,
713-960-9111investorrelations@westlake.comorMedia Inquiries:Mr. Ben Ederington,
713-960-9111mediarelations@westlake.com
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