3 unchanged sentences
However, our direct exposure to commodity price risk is limited to approximately 5% of our total ethylene production, which is the portion sold to third parties.
−Removed: We believe we have substantially mitigated our indirect exposure to commodity price fluctuation during the term of the Ethylene Sales Agreement through the minimum commitment and the cost-plus based pricing.
−Removed: Additionally, we may use short-term derivative instruments to reduce price volatility risk on feedstocks and ethylene associated with the production and sales to third parties.
−Removed: We entered into some of these agreements in 2018 and 2019.
−Removed: All derivative positions were settled as of December 31, 2020 and we did not enter into any new derivative contracts during 2021.
+Added: We believe we have substantially mitigated our indirect exposure to commodity price fluctuation during the term of the Ethylene Sales Agreement through the minimum purchase commitment and the cost-plus based pricing.
+Added: Additionally, we may use derivative instruments to reduce price volatility risk on feedstocks and ethylene associated with the production and sales to third parties.
+Added: All derivative positions were settled as of December 31, 2020 and we did not enter into any new derivative contracts during 2021 or 2022.
Interest Rate Risk
We are exposed to interest rate risk with respect to our outstanding debt, all of which is variable rate debt.
−Removed: At December 31, 2021, we had variable rate debt of $399.7 million outstanding, all of which was owed to wholly-owned subsidiaries of Westlake, and accrues interest at a variable rate of LIBOR plus 200 basis points.
−Removed: On March 19, 2020, the Partnership entered into an amendment to the MLP Revolver to extend the maturity date of the debt to March 19, 2023 and to add a phase-out provision for LIBOR, which is to be replaced by an alternate benchmark rate.
−Removed: The amended credit agreement bears interest at a variable rate of either (a) LIBOR plus 2.0% or, if LIBOR is no longer available, (b) Alternate Base Rate plus 1.0%.
+Added: As of December 31, 2022, we had variable rate debt of $399.7 million outstanding, all of which was owed to wholly-owned subsidiaries of Westlake.
+Added: On July 12, 2022, OpCo entered into the OpCo Revolver Amendment.
+Added: The OpCo Revolver Amendment, among other things, provided for the replacement of LIBOR with SOFR as the reference rate.
+Added: Borrowings under the OpCo Revolver now bear interest at a variable rate of either (a) SOFR plus the Applicable Margin plus a 0.10% credit spread adjustment or, if SOFR is no longer available, (b) the Alternate Base Rate plus the Applicable Margin minus 1.0%.
+Added: The Applicable Margin under the OpCo Revolver is 1.75%.
+Added: On July 12, 2022, the Partnership entered into the MLP Revolver Amendment.
+Added: The MLP Revolver Amendment, among other things, provided for the replacement of LIBOR with SOFR as the reference rate.
+Added: Borrowings under the MLP Revolver now bear interest at a variable rate of either (a) SOFR plus the Applicable Margin plus a 0.10% credit spread adjustment or, if SOFR is no longer available, (b) the Alternate Base Rate plus the Applicable Margin minus 1.0%.
+Added: The Applicable Margin under the MLP Revolver varies between 1.75% and 2.75%, depending on the Partnership's Consolidated Leverage Ratio.
The weighted average variable interest rate of our debt as of December 31, 2022 was 4.8%.
We will continue to be subject to interest rate risk with respect to our variable rate debt as well as the risk of higher interest cost if and when this debt is refinanced.
−Removed: A hypothetical increase in our average interest rate on variable rate debt by 100 basis points would increase our annual interest expense by approximately $4.0 million, based on the December 31, 2021 debt balance.
−Removed: LIBOR is used as a reference rate for all of our outstanding variable rate debt as of December 31, 2020.
−Removed: The phase-out of LIBOR commenced at the end of 2021 and is expected to conclude by June 30, 2023.
−Removed: We are currently reviewing how the LIBOR phase-out will affect us, but we do not expect the impact to be material.
+Added: A hypothetical increase in our average interest rate on variable rate debt by 100 basis points would increase our annual interest expense by approximately $4.0 million, of which $3.8 million would relate to the MLP Revolver and $0.2 million would relate to the OpCo Revolver based on the December 31, 2022 debt balance.
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.