What changed in this filing

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Item 1. Financial Statements

2022-05-04 compared with 2021-11-03 · 72 added, 151 removed, 288 unchanged (44% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2022 December 31,

2 unchanged sentences

Cash and cash equivalents $ 19,234 $ 17,057

Receivable under the Investment Management Agreement—Westlake Chemical Corporation ("Westlake")

196,252 123,228

Receivable under the Investment Management Agreement—Westlake Corporation ("Westlake") 111,224 106,243

Accounts receivable, net—Westlake 109,732 142,791

11 unchanged sentences

Accrued and other liabilities 21,391 60,895

Debt payable to Westlake 377,055 —

Total current liabilities 453,999 106,796

1 unchanged sentence

Deferred income taxes 1,516 1,530

Other liabilities — 381

Total liabilities 478,134 508,000

1 unchanged sentence

Common unitholders—publicly and privately held ( 21,092,186 and 21,092,186 units

issued and outstanding at September 30, 2021 and December 31, 2020, respectively)

issued and outstanding at March 31, 2022 and December 31, 2021, respectively)

481,550 481,796

Common unitholder—Westlake ( 14,122,230 and 14,122,230 units issued and outstanding

at September 30, 2021 and December 31, 2020, respectively)

at March 31, 2022 and December 31, 2021, respectively)

54,591 54,754

7 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

(in thousands of dollars, except unit amounts and per unit data)

9 unchanged sentences

Interest expense—Westlake ( 2,199 ) ( 2,236 )

Other income, net 24 17 52 725

Other income (expense), net ( 25 ) 7

Income before income taxes 80,988 76,797

Income tax provision (benefit) ( 105 ) ( 15 ) 333 408

Income tax provision 163 175

Net income 80,825 76,622

22 unchanged sentences

Balance at March 31, 2022 $ 481,550 $ 54,591 $ ( 242,572 ) $ 682,663 $ 976,232

Net income 15,029 10,070 — 95,195 120,294

Units issued for vested phantom units 149 — — — 149

Quarterly distribution to unitholders ( 9,936 ) ( 6,657 ) — — ( 16,593 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake — — — ( 65,200 ) ( 65,200 )

Balance at June 30, 2021 $ 476,076 $ 51,103 $ ( 242,572 ) $ 667,151 $ 951,758

Net income 7,660 5,130 — 53,285 66,075

Units issued for vested phantom units 262 — — — 262

Quarterly distribution to unitholders ( 9,936 ) ( 6,657 ) — — ( 16,593 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake — — — ( 96,683 ) ( 96,683 )

Balance at September 30, 2021 $ 474,062 $ 49,576 $ ( 242,572 ) $ 623,753 $ 904,819

The accompanying notes are an integral part of the consolidated financial statements.

WESTLAKE CHEMICAL PARTNERS LP

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Common Unitholders—

9 unchanged sentences

Balance at March 31, 2021 $ 470,834 $ 47,690 $ ( 242,572 ) $ 637,156 $ 913,108

Net income 8,897 5,963 — 65,517 80,377

Quarterly distributions to unitholders ( 9,933 ) ( 6,657 ) — — ( 16,590 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake

— — — ( 78,025 ) ( 78,025 )

Balance at June 30, 2020 $ 471,392 $ 48,120 $ ( 242,572 ) $ 658,913 $ 935,853

Net income 11,098 7,437 — 73,313 91,848

Quarterly distributions to unitholders ( 9,934 ) ( 6,657 ) — — ( 16,591 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake

— — — ( 72,278 ) ( 72,278 )

Balance at September 30, 2020 $ 472,556 $ 48,900 $ ( 242,572 ) $ 659,948 $ 938,832

The accompanying notes are an integral part of the consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(in thousands of dollars)

4 unchanged sentences

Loss from disposition of property, plant and equipment 2,970 1,359

Other gains, net 866 ( 522 )

Other loss, net 992 103

Changes in operating assets and liabilities

31 unchanged sentences

Most recently, on March 29, 2019, the Partnership purchased an additional 4.5 % newly-issued limited partner interest in OpCo for approximately $ 201,445 , resulting in an aggregate 22.8 % limited partner interest in OpCo, effective January 1, 2019.

The remaining 77.2 % limited partner interest in OpCo is owned by Westlake Chemical Corporation.

The remaining 77.2 % limited partner interest in OpCo is owned by Westlake Corporation.

Basis of Presentation

4 unchanged sentences

These financial statements have been prepared in conformity with the accounting principles and practices as disclosed in the notes to the consolidated financial statements of the Partnership for the fiscal year ended December 31, 2021.

References to "Westlake" refer collectively to Westlake Chemical Corporation and its subsidiaries, other than the Partnership, OpCo and OpCo GP.

References to "Westlake" refer collectively to Westlake Corporation (formerly known as Westlake Chemical Corporation) and its subsidiaries, other than the Partnership, OpCo and OpCo GP.

The Partnership holds a 22.8 % limited partner interest and the entire non-economic general partner interest in OpCo.

4 unchanged sentences

Westlake's retained interest of 77.2 % is recorded as noncontrolling interest in the Partnership's consolidated financial statements.

In the opinion of the Partnership's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Partnership's financial position as of September 30, 2021, its results of operations for the three and nine months ended September 30, 2021 and 2020 and the changes in its cash position for the nine months ended September 30, 2021 and 2020.

In the opinion of the Partnership's management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Partnership's financial position as of March 31, 2022, its results of operations for the three months ended March 31, 2022 and 2021 and the changes in its cash position for the three months ended March 31, 2022 and 2021.

Results of operations and changes in cash position for the interim periods presented are not necessarily indicative of the results that will be realized for the fiscal year ending December 31, 2022 or any other interim period.

5 unchanged sentences

(in thousands of dollars, except unit amounts and per unit data)

The COVID pandemic resulted in widespread adverse impacts on the global economy in 2020.

The Partnership has not experienced significant disruptions to its business operations in 2020 or during the nine months ended September 30, 2021 and does not expect significant disruptions to its business operations resulting from COVID-19.

However, the impact that COVID-19 will have on the Partnership's financial condition, results of operations and cash flows cannot be estimated with certainty at this time as it will depend on future developments, including, among others, the timing and logistics with respect to the distribution of vaccines globally and the efficacy of the available vaccines (including with respect to the more recent variants of COVID-19) and other treatments, the ultimate duration of the pandemic, geographic spread and severity of the virus, the consequences of governmental and other measures designed to prevent the spread of the virus, the impact on the operation of OpCo's facilities, Westlake, customers, suppliers and other third parties and the timing and extent to which normal economic and operating conditions resume.

Recent Accounting Pronouncements

Reference Rate Reform (ASU No.

In March 2020, the FASB issued an accounting standards update to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met.

The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022 and are not expected to have a material impact on the Partnership's consolidated financial position, results of operations and cash flows.

Certain exceptions provided under this guidance may be applicable to future reference rate reform related transitions.

Accounts Receivable—Third Parties

Accounts receivable—third parties consist of the following:

September 30,

2022 December 31,

3 unchanged sentences

Inventories consist of the following:

September 30,

2022 December 31,

3 unchanged sentences

Property, Plant and Equipment

Depreciation expense on property, plant and equipment of $ 23,010 and $ 22,913 is included in cost of sales in the consolidated statements of operations for the three months ended September 30, 2021 and 2020, respectively.

Depreciation expense on property, plant and equipment of $ 68,795 and $ 68,380 is included in cost of sales in the consolidated statements of operations for the nine months ended September 30, 2021 and 2020, respectively.

Depreciation expense on property, plant and equipment of $ 23,996 and $ 22,802 is included in cost of sales in the consolidated statements of operations for the three months ended March 31, 2022 and 2021, respectively.

Deferred Charges and Other Assets

Amortization expense on other assets of $ 3,576 and $ 3,010 is included in costs of sales in the consolidated statements of operations for the three months ended September 30, 2021 and 2020, respectively.

Amortization expense on other assets of $ 14,035 and $ 9,387 is included in costs of sales in the consolidated statements of operations for the nine months ended September 30, 2021 and 2020, respectively.

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

Amortization expense on other assets of $ 7,286 and $ 4,740 is included in costs of sales in the consolidated statements of operations for the three months ended March 31, 2022 and 2021, respectively.

Distributions and Net Income Per Limited Partner Unit

On November 1, 2021, the board of directors of Westlake Chemical Partners GP LLC ("Westlake GP"), the Partnership's general partner, declared a quarterly cash distribution for the three months ended September 30, 2021 of $ 0.4714 per unit.

This distribution is payable on November 29, 2021 to unitholders of record as of November 12, 2021.

On May 2, 2022, the board of directors of Westlake Chemical Partners GP LLC ("Westlake GP"), the Partnership's general partner, declared a quarterly cash distribution for the three months ended March 31, 2022 of $ 0.4714 per unit.

This distribution is payable on May 26, 2022 to unitholders of record as of May 12, 2022.

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.

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Net income attributable to the Partnership $ 16,194 $ 15,146

1 unchanged sentence

16,600 16,593

Net income in excess of distribution (distribution in excess of net income)

$ ( 3,810 ) $ 1,944 $ 3,247 $ 1,370

Distribution in excess of net income $ ( 406 ) $ ( 1,447 )

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.

4 unchanged sentences

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.

Three Months Ended September 30, 2021

Limited Partners' Common Units Incentive Distribution Rights Total

Net income attributable to the Partnership:

Distribution $ 16,600 $ — $ 16,600

Distribution in excess of net income ( 3,810 ) — ( 3,810 )

Net income $ 12,790 $ — $ 12,790

Weighted average units outstanding:

Basic and diluted 35,209,976 35,209,976

Net income per limited partner unit:

Basic and diluted $ 0.36

WESTLAKE CHEMICAL PARTNERS LP

1 unchanged sentence

(in thousands of dollars, except unit amounts and per unit data)

Three Months Ended September 30, 2020

Limited Partners' Common Units Incentive Distribution Rights Total

Net income attributable to the Partnership:

Distribution $ 16,591 $ — $ 16,591

Net income in excess of distribution 1,944 — 1,944

Net income $ 18,535 $ — $ 18,535

Weighted average units outstanding:

Basic and diluted 35,194,545 35,194,545

Net income per limited partner unit:

Basic and diluted $ 0.53

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

Limited Partners' Common Units Incentive Distribution Rights Total

1 unchanged sentence

Distribution $ 16,600 $ — $ 16,600

Net income in excess of distribution 3,247 — 3,247

Distribution in excess of net income ( 406 ) — ( 406 )

Net income $ 16,194 $ — $ 16,194

3 unchanged sentences

Basic and diluted $ 0.46

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2021

Limited Partners' Common Units Incentive Distribution Rights Total

1 unchanged sentence

Distribution $ 16,593 $ — $ 16,593

Net income in excess of distribution 1,370 — 1,370

Distribution in excess of net income ( 1,447 ) — ( 1,447 )

Net income $ 15,146 $ — $ 15,146

13 unchanged sentences

50.0 % 50.0 %

The Partnership's distribution for the three months ended March 31, 2022 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 three months ended March 31, 2022 and 2021 were as follows:

Three Months Ended March 31,

Distributions per common unit $ 0.4714 $ 0.4714

WESTLAKE CHEMICAL PARTNERS LP

1 unchanged sentence

(in thousands of dollars, except unit amounts and per unit data)

The Partnership's distribution for the three months ended September 30, 2021 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 three and nine months ended September 30, 2021 and 2020 were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Distributions per common unit $ 0.4714 $ 0.4714 $ 1.4142 $ 1.4142

Partners' Equity

1 unchanged sentence

The Equity Distribution Agreement was amended on February 28, 2020 to reference a new shelf registration for utilization under this agreement.

No common units were issued under this program as of September 30, 2021.

No common units were issued under this program as of March 31, 2022.

On March 29, 2019, the Partnership completed the issuance and sale of 2,940,818 common units at a price of $ 21.40 per unit through a private placement.

7 unchanged sentences

Sales to related parties were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Net sales—Westlake $ 290,657 $ 219,803

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

OpCo declared force majeure events in September 2021 during the Petro 2 facility turnaround, in June 2021 related to OpCo's Petro 1 facility outage, and in February 2021 due to the severe winter storm.

As a result of these events, the Partnership updated its estimate of OpCo's 2021 anticipated production as of September 30, 2021.

The buyer deficiency fee is measured based upon the lower of the actual production deficiency at period end or the estimated annual production deficiency based upon OpCo's annual anticipated production.

Based upon this change in estimate of OpCo's 2021 anticipated production, the Partnership has recognized buyer deficiency fees and shortfall fees of $ 3,045 and $ 21,465 during the three and nine months ended September 30, 2021, respectively.

The buyer deficiency fees and shortfall fees are classified as a component of net sales.

During 2020, the Lake Charles Petro 1 and Petro 2 facilities were impacted by Hurricanes Laura and Delta, which resulted in force majeure events under the Ethylene Sales Agreement.

As a result of the force majeure events, the Partnership recognized a buyer deficiency fee of $ 69,555 as a component of net sales in 2020.

Payment for the buyer deficiency fee was received by the Partnership in January 2021.

Cost of Sales from Related Parties

1 unchanged sentence

Charges from related parties in cost of sales were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Feedstock purchased from Westlake and included in cost of sales

3 unchanged sentences

Total $ 201,746 $ 113,958

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

Services from Related Parties Included in Selling, General and Administrative Expenses

1 unchanged sentence

Charges from related parties included within selling, general and administrative expenses were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Services received from Westlake and included in selling, general and administrative expenses

3 unchanged sentences

Charges from related parties for goods and services capitalized as assets were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Goods and services purchased from Westlake and capitalized as assets

$ 3,606 $ 404 $ 4,542 $ 1,268

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

Receivable under the Investment Management Agreement

1 unchanged sentence

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.

Accrued interest of $ 81 and $ 56 was included in the receivable under the Investment Management Agreement balance at September 30, 2021 and December 31, 2020, respectively.

Total interest earned related to the Investment Management Agreement was $ 81 and $ 69 for the three months ended September 30, 2021 and 2020, respectively, and $ 225 and $ 876 for the nine months ended September 30, 2021 and 2020, respectively.

Accrued interest of $ 52 and $ 71 was included in the receivable under the Investment Management Agreement balance at March 31, 2022 and December 31, 2021, respectively.

Total interest earned related to the Investment Management Agreement was $ 52 and $ 67 for the three months ended March 31, 2022 and 2021, respectively.

The Partnership's receivable under the Investment Management Agreement was as follows:

September 30,

2022 December 31,

Receivable under the Investment Management Agreement $ 111,224 $ 106,243

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

Accounts Receivable from Related Parties

The Partnership's accounts receivable from Westlake result primarily from ethylene sales to Westlake and the buyer deficiency fee and shortfall fee recognized under the Ethylene Sales Agreement, as discussed above under "Sales to Related Parties." The buyer deficiency fee and shortfall fee recognized in the nine months ended September 30, 2021 are scheduled to be received by the Partnership after the end of 2021.

The Partnership's accounts receivable from Westlake result primarily from ethylene sales to Westlake and the buyer deficiency fee and shortfall fee recognized under the Ethylene Sales Agreement.

In 2021, OpCo declared force majeure events related to the flash fire at the Petro 2 facility, OpCo's Petro 1 facility outage, and the severe winter storm.

As a result of these events, the Partnership recognized revenue for a buyer deficiency fee of $ 51,395 and shortfall fee of $ 58,906 during 2021.

The buyer deficiency fee was collected from Westlake in January 2022 and the shortfall fee recognized in 2021 is recoverable during 2022 per the Ethylene Sales Agreement.

The Partnership's accounts receivable from Westlake were as follows:

September 30,

2022 December 31,

2 unchanged sentences

The Partnership's accounts payable to Westlake result primarily from feedstock purchases under the Feedstock Supply Agreement and services provided under the Services and Secondment Agreement and the Omnibus Agreement.

The related party accounts payable balances were as follows:

September 30,

The Partnership's accounts payable to Westlake were as follows:

2022 December 31,

2 unchanged sentences

OpCo is obligated to Westlake under various long-term and short-term noncancelable operating leases, primarily related to rail car leases and land.

Operating lease rentals paid to Westlake for such leases were $ 997 and $ 407 for the three months ended September 30, 2021 and 2020, respectively, and $ 2,292 and $ 1,803 for the nine months ended September 30, 2021 and 2020, respectively, and reflected in other charges from Westlake that are included in cost of sales.

Operating lease rentals paid to Westlake for such leases were $ 686 for the three months ended March 31, 2022 and 2021, and reflected in other charges from Westlake that are included in cost of sales.

OpCo has two site lease agreements with Westlake, each of which has a term of 50 years.

Pursuant to the site lease agreements, OpCo pays Westlake one dollar per site per year.

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

Debt Payable to Related Parties

See Note 9 for a description of related party debt payable balances.

Interest on related party debt payable balances for the three months ended September 30, 2021 and 2020 was $ 2,190 and $ 2,320 , respectively.

Interest on related party debt payable balances for the nine months ended September 30, 2021 and 2020 was $ 6,650 and $ 9,701 , respectively.

Interest on related party debt payable balances for the three months ended March 31, 2022 and 2021 was $ 2,199 and $ 2,236 , respectively.

Interest on related party debt payable is presented as interest expense—Westlake in the consolidated statements of operations.

At September 30, 2021 and December 31, 2020, accrued interest on related party debt was $ 2,193 and $ 2,336 , respectively, and is reflected as a component of accrued liabilities in the consolidated balance sheets.

At March 31, 2022 and December 31, 2021, accrued interest on related party debt was $ 2,213 and $ 2,176 , respectively, and is reflected as a component of accrued liabilities in the consolidated balance sheets.

Debt payable to related parties was as follows:

September 30,

2022 December 31,

Long-term debt payable to Westlake $ 399,674 $ 399,674

Total debt payable to Westlake $ 399,674 $ 399,674

Major Customer and Concentration of Credit Risk

During the three months ended September 30, 2021 and 2020, Westlake accounted for approximately 84.3 % and 93.9 %, respectively, of the Partnership's net sales.

During the nine months ended September 30, 2021 and 2020, Westlake accounted for approximately 80.1 % and 91.5 %, respectively, of the Partnership's net sales.

During the three months ended March 31, 2022 and 2021, Westlake accounted for approximately 80.2 % and 82.0 %, respectively, of the Partnership's net sales.

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

Long-Term Debt Payable to Westlake

Long-term debt payable to Westlake consists of the following:

September 30,

2022 December 31,

3 unchanged sentences

377,055 377,055

$ 399,674 $ 399,674

The weighted average interest rate on all long-term debt was 2.1 % and 2.2 % at September 30, 2021 and December 31, 2020, respectively.

As of September 30, 2021, the Partnership was in compliance with all of the covenants under the OpCo Revolver and the MLP Revolver.

Total debt $ 399,674 $ 399,674

Less current debt:

MLP Revolver 377,055 —

Long-term debt, net of current debt $ 22,619 $ 399,674

The weighted average interest rate on all debt was 2.2 % and 2.1 % at March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022, the Partnership was in compliance with all of the covenants under the OpCo Revolver and the MLP Revolver.

Fair Value Measurements

4 unchanged sentences

Unobservable inputs that are not corroborated by market data.

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

The Partnership has financial assets and liabilities subject to fair value measures.

These financial assets and liabilities include cash and cash equivalents, accounts receivable, net, accounts payable and long-term debt payable to Westlake, all of which are recorded at carrying value.

These financial assets and liabilities include cash and cash equivalents, accounts receivable, net, accounts payable and debt payable to Westlake, all of which are recorded at carrying value.

The amounts reported in the consolidated balance sheets for accounts receivable, net and accounts payable approximate their fair value due to the short maturities of these instruments.

The carrying and fair values of the Partnership's long-term debt at September 30, 2021 and December 31, 2020 are summarized in the table below.

The Partnership's long-term debt includes the OpCo Revolver and the MLP Revolver at September 30, 2021.

The carrying and fair values of the Partnership's debt at March 31, 2022 and December 31, 2021 are summarized in the table below.

The Partnership's debt includes the OpCo Revolver and the MLP Revolver at March 31, 2022.

The fair value of debt is determined based on the present value of expected future cash flows using a discounted cash flow methodology.

Because the Partnership's valuation methodology used for long-term debt requires the use of significant unobservable inputs, the inputs used to measure the fair value of the Partnership's long-term debt are classified as Level 3 within the fair value hierarchy.

Inputs used to estimate the fair values of the Partnership's long-term debt include the selection of an appropriate discount rate.

September 30, 2021 December 31, 2020

Because the Partnership's valuation methodology used for debt requires the use of significant unobservable inputs, the inputs used to measure the fair value of the Partnership's debt are classified as Level 3 within the fair value hierarchy.

Inputs used to estimate the fair values of the Partnership's debt include the selection of an appropriate discount rate.

March 31, 2022 December 31, 2021

Value Carrying

1 unchanged sentence

MLP Revolver 377,055 381,875 377,055 383,574

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

(in thousands of dollars, except unit amounts and per unit data)

Supplemental Information

Accrued and Other Liabilities

Accrued and other liabilities were $ 24,527 and $ 18,768 at September 30, 2021 and December 31, 2020, respectively.

Accrued taxes, accrued maintenance expense, accrued turnaround costs and accrued capital expenditures, which are components of accrued liabilities, were $ 4,784 , $ 5,438 , $ 3,330 and $ 4,832 , respectively, at September 30, 2021 and $ 6,207 , $ 3,905 , $ 0 and $ 2,286 , respectively, at December 31, 2020.

No other component of accrued and other liabilities was more than five percent of total current liabilities.

Accrued and other liabilities of $ 21,391 and $ 60,895 at March 31, 2022 and December 31, 2021, respectively, primarily comprised of accrued maintenance expense, accrued turnaround costs, accrued capital expenditures and accrued taxes, which were $ 4,152 , $ 4,430 , $ 4,606 and $ 3,137 , respectively, at March 31, 2022 and $ 5,597 , $ 40,250 , $ 7,491 and $ 2,264 , respectively, at December 31, 2021.

Non-cash Investing Activity

The non-cash investing activities related to accruals for capital expenditures were $ 3,663 and $ 1,945 for the nine months ended September 30, 2021 and 2020, respectively.

Capital expenditure related liabilities, included in accounts payable—third parties and accrued and other liabilities, were $ 8,056 and $ 6,272 at March 31, 2022 and 2021, respectively.

Commitments and Contingencies

6 unchanged sentences

Several contractors working on the quench tower were injured.

There are five lawsuits pending in connection with the flash fire.

There are lawsuits pending in connection with the flash fire.

We expect insurance to cover most of the costs associated with these lawsuits.

The Partnership is also involved in other legal proceedings incidental to the conduct of its business.

1 unchanged sentence

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 1. Financial Statements