What changed in this filing

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Item 2. Management’s Discussion and Analysis

2020-08-06 compared with 2020-05-06 · 92 added, 60 removed, 215 unchanged (41% of the section changed)

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We use each of MLP distributable cash flow and EBITDA to analyze our performance.

MLP distributable cash flow and EBITDA are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

our operating performance as compared to other publicly traded partnerships;

our ability to incur and service debt and fund capital expenditures;

the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

and the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

MLP distributable cash flow is not a substitute for the GAAP measures of net income and net cash provided by operating activities.

MLP distributable cash flow has important limitations as an analytical tool because it excludes some but not all items that affect net income and net cash provided by operating activities.

EBITDA is not substitute for the GAAP measures of net income, income from operations and net cash provided by operating activities.

EBITDA is not a substitute for the GAAP measures of net income, income from operations and net cash provided by operating activities.

In addition, it should be noted that companies calculate EBITDA differently and, therefore, EBITDA as presented for us may not be comparable to EBITDA reported by other companies.

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The pandemic has resulted in widespread adverse impacts on the global economy and on our employees, customers and suppliers.

We did not experience significant disruptions in the first quarter of 2020 and do not expect to experience significant resulting disruptions to our business operations, primarily due to the fact that 95% of our production is sold to Westlake on a take-or-pay contract.

Due to the sudden collapse of crude oil prices in early March 2020 and the addition of ethylene production capacity in recent months, prices for ethylene and co-products have remained weak.

We did not experience significant disruptions to our business operations in the six months ended June 30, 2020 and do not expect to experience significant disruptions to our business operations resulting from COVID-19, primarily due to the fact that 95% of our production is sold to Westlake on a take-or-pay contract.

Though the price of crude oil has partially recovered from its sudden collapse in early March 2020, due to the continuing impact of low crude-oil prices and the addition of ethylene production capacity in recent months, prices for ethylene and co-products have remained weak and have also negatively impacted our plants' operating rates.

We may idle production and reduce operating rates if it is not economical for us to produce ethylene to sell to third parties.

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Westlake has implemented preventative measures and developed corporate and regional response plans to minimize unnecessary risk of exposure.

We and Westlake have modified certain business practices (including those related to employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences) to conform to government restrictions and best practices encouraged by the Center for Disease Control and Prevention, the World Health Organization and other governmental and regulatory authorities.

We and Westlake are implementing strategies to reduce costs, increase operational efficiencies and lower its capital spending.

We also expect to defer the planned turnaround at OpCo's Petro 2 ethylene unit and associated maintenance cost into the first half of 2021.

We and Westlake have modified certain business practices (including those related to employee travel, employee work locations and employee work practices) to conform to government restrictions and best practices encouraged by the Center for Disease Control and Prevention, the World Health Organization and other governmental and regulatory authorities.

We and Westlake have implemented strategies to reduce costs, increase operational efficiencies and lower capital spending.

We have also deferred the planned turnaround at OpCo's Petro 2 ethylene unit and associated maintenance cost into the first half of 2021.

The turnaround is expected to last 60 days.

For additional discussion regarding risks associated with the COVID-19 pandemic, see Item 1A "Risk Factors" in this report.

Results of Operations

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(dollars in thousands)

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(2) See "Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities" below.

Three Months Ended March 31, 2020

Three Months Ended June 30, 2020

Six Months Ended June 30, 2020

Product sales prices and volume percentage change from prior-year period

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Average industry prices (1)

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The following table presents reconciliations of MLP distributable cash flow to net income and net cash provided by operating activities, the most directly comparable GAAP financial measures, for each of the periods indicated.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(dollars in thousands)

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Depreciation, amortization and disposition of property, plant and equipment

Mark-to-market adjustment gain on derivative contracts

Mark-to-market adjustment loss (gain) on derivative contracts

Contribution to turnaround reserves

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The following table presents reconciliations of EBITDA to net income, income from operations and net cash provided by operating activities, the most directly comparable GAAP financial measures, for each of the periods indicated.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(dollars in thousands)

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Other income, net

For the quarter ended March 31, 2020 , net income was $93.8 million on net sales of $250.5 million .

This represents an increase in net income of $15.4 million as compared to net income of $78.4 million on net sales of $299.1 million for the quarter ended March 31, 2019 .

Net income for the first quarter of 2020 as compared to the first quarter of 2019 was higher primarily due higher sales volumes to Westlake and third parties, higher margins on third party ethylene sales resulting from lower feedstock costs, lower selling, general and administrative expenses and lower interest expense.

Net income attributable to Westlake Chemical Partners LP for the first quarter of 2020 was $17.7 million as compared to $15.0 million for the first quarter of 2019 , an increase of $2.7 million , which was primarily due to higher sales volumes due to increased production and higher margins on third party ethylene sales resulting from lower feedstock costs.

Net sales for the first quarter of 2020 decreased by $48.6 million as compared to net sales for the first quarter of 2019 , mainly due to lower sales prices to Westlake per the terms of the Ethylene Sales Agreement, partially offset by higher sales volumes to Westlake and third parties.

Income from operations was $97.4 million for the first quarter of 2020 as compared to $83.7 million for the first quarter of 2019 .

Income from operations for the first quarter of 2020 increased mainly as a result of higher sales volumes, higher margins on third party ethylene sales resulting from lower feedstock costs and lower selling, general and administrative expenses, as compared to the first quarter of 2019 .

For the quarter ended June 30, 2020 , net income was $80.4 million on net sales of $238.5 million .

This represents an increase in net income of $0.3 million as compared to net income of $80.1 million on net sales of $270.1 million for the quarter ended June 30, 2019 .

Net income attributable to Westlake Chemical Partners LP for the second quarter of 2020 was $14.9 million as compared to $13.7 million for the second quarter of 2019 , an increase of $1.2 million .

Net income and net income attributable to Westlake Chemical Partners LP for the first quarter of 2020 as compared to the first quarter of 2019 were higher primarily due to the higher earnings on ethylene sold to Westlake, lower manufacturing costs, selling, general and administrative expenses and interest expense, partially offset by lower ethylene production.

Net sales for the second quarter of 2020 decreased by $31.6 million as compared to net sales for the second quarter of 2019 , mainly due to lower sales volumes to Westlake and third parties and lower sales prices to third parties, partially offset by higher sales prices to Westlake per the terms of the Ethylene Sales Agreement.

Income from operations was $83.9 million for the second quarter of 2020 as compared to $84.3 million for the second quarter of 2019 .

Income from operations for the second quarter of 2020 decreased mainly as a result of overall lower sales volumes to Westlake and lower sales prices and volumes to third parties, partially offset by lower manufacturing costs and selling, general and administrative expenses, as compared to the second quarter of 2019 .

For the six months ended June 30, 2020 , net income was $174.1 million on net sales of $489.0 million .

This represents an increase in net income of $15.6 million as compared to the six months ended June 30, 2019 net income of $158.5 million on net sales of $569.1 million .

Net income attributable to Westlake Chemical Partners LP for the six months ended June 30, 2020 was $32.6 million as compared to $28.7 million for the six months ended June 30, 2019 , an increase of $3.9 million .

The increase in net income and net income attributable to Westlake Chemical Partners LP in the six months ended June 30, 2020 was primarily due to the higher earnings on ethylene sold to Westlake, lower manufacturing costs, selling, general and administrative expenses and interest expense, partially offset by lower ethylene production, as compared to the six months ended June 30, 2019 .

Net sales for the six months ended June 30, 2020 decreased by $80.1 million as compared to net sales for the six months ended June 30, 2019 , mainly due to lower sales prices and volumes to third parties and Westlake.

Income from operations was $181.2 million for the six months ended June 30, 2020 as compared to $168.0 million for the six months ended June 30, 2019 .

Income from operations for the six months ended June 30, 2020 increased mainly as a result of lower manufacturing costs and selling, general and administrative expenses, partially offset by lower ethylene production, as compared to the six months ended June 30, 2019 .

RESULTS OF OPERATIONS

First Quarter 2020 Compared with First Quarter 2019

Total net sales decreased by $48.6 million , or 16.2% , to $250.5 million in the first quarter of 2020 from $299.1 million in the first quarter of 2019 .

The overall average sales price in the first quarter of 2020 contributed to a 19.5% decrease in net sales, primarily due to lower ethylene sales prices to Westlake per the terms of the Ethylene Sales Agreement, compared to the first quarter of 2019 .

The overall sales volume contributed to an increase in net sales of 3.3% in the first quarter of 2020 compared to the first quarter of 2019 , primarily as a result of higher sales volumes to Westlake and third parties.

Second Quarter 2020 Compared with Second Quarter 2019

Total net sales decreased by $31.6 million , or 11.7% , to $238.5 million in the second quarter of 2020 from $270.1 million in the second quarter of 2019 .

The overall average sales price in the second quarter of 2020 contributed to a 1.9% increase in net sales, primarily due to higher ethylene sales prices to Westlake per the terms of the Ethylene Sales Agreement, partially offset by lower sales prices to third parties, compared to the second quarter of 2019 .

The overall sales volume in the second quarter of 2020 contributed to a decrease in net sales of 13.6% in the second quarter of 2020 compared to the second quarter of 2019 .

Gross Profit.

Gross profit increased to $103.5 million for the first quarter of 2020 from $90.7 million for the first quarter of 2019 .

The gross profit margin in the first quarter of 2020 was 41.3% , as compared to 30.3% for the first quarter of 2019 .

The first quarter of 2020 gross profit margin was higher mainly due to higher sales volumes and higher margins on third party ethylene sales resulting from lower feedstock costs.

Gross profit decreased to $90.0 million for the second quarter of 2020 from $92.0 million for the second quarter of 2019 .

The gross profit margin in the second quarter of 2020 was 37.7% , as compared to 34.1% for the second quarter of 2019 .

The second quarter of 2020 gross profit margin was higher mainly due to higher earnings on ethylene sold to Westlake and lower manufacturing costs, partially offset by lower production.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses decreased by $0.8 million , or 11.4% , to $6.2 million in the first quarter of 2020 as compared to $7.0 million in the first quarter of 2019 .

The decrease in the first quarter of 2020 was mainly attributable to a decrease in general and administrative expense allocations, partially offset by increases in the provision for doubtful accounts and consulting and professional fees as compared to the first quarter of 2019 .

Selling, general and administrative expenses decreased by $1.5 million , or 19.7% , to $6.1 million in the second quarter of 2020 as compared to $7.6 million in the second quarter of 2019 .

The decrease in the second quarter of 2020 was mainly attributable to lower general and administrative expense allocations, provision for doubtful accounts and consulting and professional fees as compared to the second quarter of 2019 .

Interest Expense.

Interest expense decreased by $1.9 million to $4.0 million in the first quarter of 2020 from $5.9 million in the first quarter of 2019 , largely due to a lower average debt balance resulting from the partial repayment of borrowings under the OpCo Revolver in April 2019.

Interest expense decreased by $1.7 million to $3.4 million in the second quarter of 2020 from $5.1 million in the second quarter of 2019 , largely due to a lower average debt balance resulting from the partial repayment of borrowings under the OpCo Revolver in April 2019.

Other Income, net.

Other income, net in the first quarter of 2020 was comparable to the first quarter of 2019 .

Other income, net in the second quarter of 2020 decreased by $1.1 million to $0.1 million as compared to $1.2 million in the second quarter of 2019 due to a decrease in interest income earned under the Investment Management Agreement as a result of a lower average cash balance under the Investment Management Agreement and lower average interest rates.

Provision for Income Taxes.

Provision for income taxes remained consistent at $0.2 million in the first quarter of 2020 and the first quarter of 2019 .

Provision for income taxes was $0.2 million in the second quarter of 2020 , which was comparable to the second quarter of 2019 .

MLP Distributable Cash Flow.

MLP distributable cash flow increased by $0.7 million to $18.3 million in the first quarter of 2020 from $17.6 million in the first quarter of 2019 .

The increased MLP distributable cash flow in the first quarter of 2020 , as compared to the prior-year period, was primarily a result of higher sales volumes to Westlake and third parties and higher margins on third party sales.

EBITDA increased by $12.7 million to $124.0 million in the first quarter of 2020 from $111.3 million in the first quarter of 2019 .

The increased EBITDA as compared to the prior-year period was primarily due to higher sales volumes to Westlake and third parties, higher margins on third party sales and lower selling general and administrative expenses.

CASH FLOW DISCUSSION FOR THE THREE MONTHS ENDED MARCH 31, 2020 AND 2019

MLP distributable cash flow increased by $0.5 million to $16.9 million in the second quarter of 2020 from $16.4 million in the second quarter of 2019 .

The increased MLP distributable cash flow in the second quarter of 2020 , as compared to the prior-year period, was primarily due to lower manufacturing costs, partially offset by lower production of ethylene at OpCo and increased turnaround reserve.

EBITDA decreased by $2.5 million to $109.8 million in the second quarter of 2020 from $112.3 million in the second quarter of 2019 .

The decreased EBITDA, as compared to the prior-year period, was primarily due to lower sales volumes to Westlake and third parties and lower sales prices to third parties, partially offset by lower manufacturing costs and selling general and administrative expenses.

Six Months Ended June 30, 2020 Compared with Six Months Ended June 30, 2019

Total net sales decreased by $80.1 million , or 14.1% , to $489.0 million in the six months ended June 30, 2020 from $569.1 million in the six months ended June 30, 2019 .

The overall decreased sales price for the six months ended June 30, 2020 contributed to a 8.9% decrease in net sales, as compared to the six months ended June 30, 2019 , which was mainly due to lower sales prices to third parties and Westlake per the terms of the Ethylene Sales Agreement.

The overall sales volume contributed to a decrease in net sales of 5.2% in the six months ended June 30, 2020 compared to the six months ended June 30, 2019 .

Gross Profit.

Gross profit increased to $193.6 million for the six months ended June 30, 2020 from $182.6 million for the six months ended June 30, 2019 .

The gross profit margin in the six months ended June 30, 2020 was 39.6% , as compared to 32.1% for the six months ended June 30, 2019 .

The six months ended June 30, 2020 gross profit margin was higher mainly due to higher earnings on ethylene sold to Westlake and lower manufacturing costs, partially offset by lower production, as compared to the six months ended June 30, 2019 .

Selling, General and Administrative Expenses.

Selling, general and administrative expenses decreased by $2.3 million , or 15.8% , to $12.3 million in the six months ended June 30, 2020 as compared to $14.6 million in the six months ended June 30, 2019 .

The decrease was mainly attributable to lower general and administrative expense allocations in the six months ended June 30, 2020 , as compared to the prior-year period.

Interest Expense.

Interest expense decreased by $3.6 million to $7.4 million in the six months ended June 30, 2020 from $11.0 million in the six months ended June 30, 2019 due to a lower average debt balance resulting from the partial repayment of borrowings under the OpCo Revolver in April 2019.

Other Income, net.

Other income, net decreased by $1.3 million to $0.7 million in the six months ended June 30, 2020 as compared to $2.0 million in the six months ended June 30, 2019 , primarily due to a decrease in interest income earned under the Investment Management Agreement as a result of a lower average cash balance under the Investment Management Agreement and lower average interest rates.

Provision for Income Taxes.

Provision for income taxes was $0.4 million for the six months ended June 30, 2020 , which was comparable to the six months ended June 30, 2019 .

MLP Distributable Cash Flow.

MLP distributable cash flow increased by $1.2 million to $35.2 million in the six months ended June 30, 2020 from $34.0 million in the six months ended June 30, 2019 .

The increased MLP distributable cash flow in the six months ended June 30, 2020 , as compared to the prior-year period, was primarily due to lower manufacturing costs, partially offset by lower production of ethylene at OpCo and increased turnaround reserves.

EBITDA increased by $10.1 million to $233.8 million in the six months ended June 30, 2020 from $223.7 million in the six months ended June 30, 2019 .

The increased EBITDA, as compared to the prior-year period, was primarily due to lower manufacturing costs and selling and general administrative expenses, partially offset by lower sales volumes and prices.

CASH FLOW DISCUSSION FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019

Operating Activities

Operating activities provided cash of $111.0 million in the first three months of 2020 compared to cash provided by operating activities of $113.5 million in the first three months of 2019 .

The $2.5 million decrease in cash flows from operating activities was mainly due to an increase in cash used for working capital during the three months ended March 31, 2020 as compared to the prior-year period, partially offset by an increase in income from operations.

Changes in components of working capital, which we define for the purposes of this cash flow discussion as accounts receivable—Westlake, accounts receivable, net—third parties, inventories, prepaid expenses and other current assets less accounts payable—Westlake, accounts payable—third parties and accrued liabilities, used cash of $8.7 million in the first three months of 2020 as compared to $8.1 million of cash provided in the first three months of 2019 , resulting in an overall unfavorable change of $16.8 million , offset by the increase in net income.

The unfavorable change in working capital was mainly attributable to unfavorable changes in third party and Westlake net accounts receivable.

Operating activities provided cash of $223.7 million in the first six months of 2020 compared to cash provided by operating activities of $213.7 million in the first six months of 2019 .

The $10.0 million increase in cash flows from operating activities was mainly due to an increase in income from operations, partially offset by an increase in cash used for working capital during the six months ended June 30, 2020 as compared to the prior-year period.

Changes in components of working capital, which we define for the purposes of this cash flow discussion as accounts receivable—Westlake, accounts receivable, net—third parties, inventories, prepaid expenses and other current assets less accounts payable—Westlake, accounts payable—third parties and accrued liabilities, used cash of $2.1 million in the first six months of 2020 as compared to $1.4 million of cash provided in the first six months of 2019 , resulting in an overall unfavorable change of $3.5 million .

The unfavorable change in working capital was mainly attributable to an unfavorable change in Westlake, net accounts receivable, due to lower feedstock purchases, partially offset by a favorable change in third party accounts receivable due to lower sales prices.

Investing Activities

Net cash used for investing activities during the first three months of 2020 was $11.0 million as compared to net cash used for investing activities of $139.6 million in the first three months of 2019 , mainly due to decreased net cash used under the Investment Management Agreement in the first three months of 2020 , as compared to the prior-year period.

Capital expenditures during the first three months of 2020 and 2019 were primarily related to projects to improve production capacity or reduce costs, maintenance and safety and environmental projects at our facilities.

Net cash used for investing activities during the first six months of 2020 was $29.6 million as compared to net cash used for investing activities of $17.5 million in the first six months of 2019 , mainly due to increased net cash used under the Investment Management Agreement in the first six months of 2020 , which was partially offset by decreased capital expenditures, as compared to the prior-year period.

Capital expenditures during the first six months of 2020 and 2019 were primarily related to projects to improve production capacity or reduce costs, maintenance and safety and environmental projects at our facilities.

Financing Activities

Net cash used for financing activities during the first three months of 2020 was $95.8 million as compared to net cash provided by financing activities of $91.0 million in the first three months of 2019 .

The outflows during the first three months of 2020 were related to the distribution of $79.2 million to Westlake and of $16.6 million to other unitholders by the Partnership.

The cash inflows during the first three months of 2019 were a result of borrowings under the MLP Revolver of $123.5 million and net proceeds from the private placement of common units of approximately $62.9 million .

The cash outflows during the first three months of 2019 were related to the distribution of $81.5 million to Westlake and of $14.0 million to other unitholders by the Partnership.

Net cash used for financing activities during the first six months of 2020 was $190.4 million as compared to net cash used by financing activities of $198.4 million in the first six months of 2019 .

The outflows during the first six months of 2020 were related to the distribution of $157.2 million to Westlake and of $33.2 million to other unitholders by the Partnership.

The cash inflows during the first six months of 2019 were a result of borrowings under the MLP Revolver of $123.5 million and net proceeds from the private placement of common units of approximately $62.9 million .

The cash outflows during the first six months of 2019 were related to the distribution of $153.8 million to Westlake and of $29.6 million to other unitholders by the Partnership as well as a partial repayment of borrowings under the OpCo revolver of $201.4 million .

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Financing Arrangements

Pursuant to the terms of the ATM Agreement, the Partnership may offer and sell the Partnership's common units from time to time to or through the Managers, as the Partnership's sales agents or as principals, having an aggregate offering amount of up to $50.0 million.

Pursuant to the terms of an equity distribution agreement, entered in October 2018 and amended in February 2020, among the Partnership and various investment banks, the Partnership may offer and sell the Partnership's common units from time to time to or through the investment banks, as the Partnership's sales agents or as principals, having an aggregate offering amount of up to $50.0 million ("the ATM Program").

The Partnership intends to use the net proceeds of sales of the common units, if any, for general partnership purposes, including the funding of potential drop-downs and other acquisitions.

No common units had been issued under this program as of March 31, 2020 .

No common units had been issued under the ATM Program as of June 30, 2020 .

Based on the terms of our cash distribution policy, we expect that we will distribute to our partners most of the excess cash generated by our operations.

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Westlake's credit facility does not prevent OpCo from making distributions to us.

On April 30, 2020 , the board of directors of Westlake Chemical Partners GP LLC, our general partner, approved a quarterly distribution of $0.4714 per unit payable on May 26, 2020 to unitholders of record as of May 11, 2020 , which equates to a total amount of approximately $16.6 million per quarter, or approximately $66.4 million per year in aggregate, based on the number of common units outstanding on March 31, 2020 .

On July 31, 2020 , the board of directors of Westlake Chemical Partners GP LLC, our general partner, approved a quarterly distribution of 0.4714 per unit payable on August 24, 2020 to unitholders of record as of August 10, 2020 , which equates to a total amount of approximately $16.6 million per quarter, or approximately $66.4 million per year in aggregate, based on the number of common units outstanding on June 30, 2020 .

We do not have a legal or contractual obligation to pay distributions on a quarterly basis or any other basis at our minimum quarterly distribution rate or any other rate.

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Westlake has historically funded expansion capital expenditures related to Lake Charles Olefins and Calvert City Olefins.

Total capital expenditures for the three months ended March 31, 2020 and 2019 were $12.0 million and $12.1 million , respectively.

No funding was required by OpCo to fund capital expenditures during the three months ended March 31, 2020 and 2019 .

Total capital expenditures for the six months ended June 30, 2020 and 2019 were $20.6 million and $25.6 million , respectively.

No funding was required by OpCo to fund capital expenditures during the six months ended June 30, 2020 and 2019 .

We expect that Westlake will loan additional cash to OpCo to fund its expansion capital expenditures in the future, but Westlake is under no obligation to do so.

Cash and Cash Equivalents

As of March 31, 2020 , our cash and cash equivalents totaled $24.1 million .

As of June 30, 2020 , our cash and cash equivalents totaled $23.6 million .

In addition, we have cash invested under the Investment Management Agreement (as described below) and a revolving credit facility with Westlake available to supplement cash if needed, as described under "Indebtedness" below.

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Per the terms of the Investment Management Agreement, the Partnership earns a market return plus five basis points and Westlake provides daily availability of the invested cash to meet any liquidity needs of the Partnership or OpCo.

The Partnership had $161.8 million of cash invested under the Investment Management Agreement at March 31, 2020 .

The Partnership had $171.4 million of cash invested under the Investment Management Agreement at June 30, 2020 .

OpCo Revolver

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On April 30, 2019, the Partnership repaid $201.4 million of borrowings under the OpCo Revolver.

As of March 31, 2020 , outstanding borrowings under the OpCo Revolver totaled $22.6 million and bore interest at the LIBOR rate plus 2.0%, which is accrued in arrears quarterly.

As of June 30, 2020 , outstanding borrowings under the OpCo Revolver totaled $22.6 million and bore interest at the LIBOR rate plus 2.0%, which is accrued in arrears quarterly.

In September 2018, the OpCo Revolver was amended to extend the scheduled maturity date from August 4, 2019 to September 25, 2023 and revise the applicable margin from 3.0% to 2.0%.

In 2015, we entered into a senior, unsecured revolving credit agreement with an affiliate of Westlake (as subsequently amended, the "MLP Revolver").

In 2015, we entered into a senior, unsecured revolving credit agreement with an affiliate of Westlake (the "MLP Revolver").

The MLP Revolver has a borrowing capacity of $600 million and is scheduled to mature in 2023.

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The repayment of borrowings under the MLP Revolver is subject to acceleration upon the occurrence of an event of default.

As of March 31, 2020 , outstanding borrowings under the MLP Revolver totaled $377.1 million .

As of June 30, 2020 , outstanding borrowings under the MLP Revolver totaled $377.1 million .

We intend to use the MLP Revolver to purchase additional limited partnership interests in OpCo in the future, in the event OpCo desires to sell such additional interests to us, for other acquisitions and for general corporate purposes.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis