What changed in this filing

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Item 1. Financial Statements

2023-05-04 compared with 2022-11-03 · 76 added, 152 removed, 288 unchanged (44% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2023 December 31,

22 unchanged sentences

Common unitholders—publicly and privately held ( 21,099,638 and 21,099,638 units

issued and outstanding at September 30, 2022 and December 31, 2021, respectively)

issued and outstanding at March 31, 2023 and December 31, 2022, respectively)

479,617 480,643

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

at September 30, 2022 and December 31, 2021, respectively)

at March 31, 2023 and December 31, 2022, respectively)

53,173 53,859

7 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

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

2022 2021 2022 2021

Three Months Ended March 31,

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

8 unchanged sentences

Interest expense—Westlake ( 7,315 ) ( 2,199 )

Other income, net 618 24 683 52

Other income (expense), net 820 ( 25 )

Income before income taxes 91,664 80,988

Income tax provision (benefit) 484 ( 105 ) 822 333

Provision for income taxes 212 163

Net income 91,452 80,825

3 unchanged sentences

$ 14,892 $ 16,194

Net income per limited partner unit attributable to Westlake Chemical Partners LP per limited partner unit (basic and diluted)

Net income per limited partner unit attributable to Westlake Chemical Partners LP (basic and diluted)

Common units $ 0.42 $ 0.46

6 unchanged sentences

Common Unitholders —

Public and Privately Held

Publicly and Privately Held

Common Unitholder —

2 unchanged sentences

(in thousands of dollars)

Balance at December 31, 2021 $ 481,796 $ 54,754 $ ( 242,572 ) $ 678,720 $ 972,698

Net income 9,700 6,494 — 64,631 80,825

Quarterly distribution to unitholders ( 9,946 ) ( 6,657 ) — — ( 16,603 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake — — — ( 60,688 ) ( 60,688 )

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

Net income 9,846 6,592 — 68,001 84,439

Quarterly distribution to unitholders ( 9,943 ) ( 6,657 ) — — ( 16,600 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake — — — ( 75,130 ) ( 75,130 )

Balance at June 30, 2022 $ 481,453 $ 54,526 $ ( 242,572 ) $ 675,534 $ 968,941

Balances at December 31, 2022 $ 480,643 $ 53,859 $ ( 242,572 ) $ 611,778 $ 903,708

Net income 8,921 5,971 — 76,560 91,452

Units issued for vested phantom units 190 — — — 190

Quarterly distribution to unitholders ( 9,947 ) ( 6,657 ) — — ( 16,604 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake — — — ( 88,678 ) ( 88,678 )

Balance at September 30, 2022 $ 480,535 $ 53,787 $ ( 242,572 ) $ 660,414 $ 952,164

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

WESTLAKE CHEMICAL PARTNERS LP

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Balances at March 31, 2023 $ 479,617 $ 53,173 $ ( 242,572 ) $ 599,660 $ 889,878

Common Unitholders—

Public and Privately Held Common Unitholder—

Publicly and Privately Held Common Unitholder—

Westlake General

2 unchanged sentences

(in thousands of dollars)

Balance at December 31, 2020 $ 471,701 $ 48,270 $ ( 242,572 ) $ 637,738 $ 915,137

Net income 9,069 6,077 — 61,476 76,622

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

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake — — — ( 62,058 ) ( 62,058 )

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

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

Balances at December 31, 2021 $ 481,796 $ 54,754 $ ( 242,572 ) $ 678,720 $ 972,698

Net income 9,700 6,494 — 64,631 80,825

Units issued for vested phantom units 262 — — — 262

Quarterly distribution to unitholders ( 9,946 ) ( 6,657 ) — — ( 16,603 )

Quarterly distribution to noncontrolling interest retained in OpCo by Westlake — — — ( 60,688 ) ( 60,688 )

— — — ( 96,683 ) ( 96,683 )

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

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

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)

16 unchanged sentences

Additions to property, plant and equipment ( 12,656 ) ( 20,342 )

Maturities of investments with Westlake under the Investment Management Agreement 247,000 203,000

Investments with Westlake under the Investment Management Agreement ( 90,116 ) ( 55,000 )

Net cash used for investing activities ( 74,458 ) ( 111,364 )

Maturities of investments with Westlake under the Investment Management Agreement 103,000 50,000

Net cash provided by (used for) investing activities 228 ( 25,342 )

Cash flows from financing activities

Proceeds from debt payable to Westlake 39,000 —

Repayment of debt payable to Westlake ( 39,000 ) —

Quarterly distributions to noncontrolling interest retained in OpCo by Westlake ( 88,678 ) ( 60,688 )

23 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, 2022.

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.

References to "Westlake" refer collectively to Westlake 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, 2022, its results of operations for the three and nine months ended September 30, 2022 and 2021 and the changes in its cash position for the nine months ended September 30, 2022 and 2021.

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, 2023, its results of operations for the three months ended March 31, 2023 and 2022 and the changes in its cash position for the three months ended March 31, 2023 and 2022.

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, 2023 or any other interim period.

7 unchanged sentences

Accounts receivable—third parties consist of the following:

September 30,

2023 December 31,

1 unchanged sentence

Allowance for credit losses ( 867 ) ( 280 )

Other receivables 1,497 1,497

Accounts receivable, net—third parties $ 19,691 $ 20,030

Inventories consist of the following:

September 30,

2023 December 31,

3 unchanged sentences

Property, Plant and Equipment

Depreciation expense on property, plant and equipment of $ 23,368 and $ 23,010 is included in cost of sales in the consolidated statements of operations for the three months ended September 30, 2022 and 2021, respectively.

Depreciation expense on property, plant and equipment of $ 71,252 and $ 68,795 is included in cost of sales in the consolidated statements of operations for the nine months ended September 30, 2022 and 2021, respectively.

Depreciation expense on property, plant and equipment of $ 20,957 and $ 23,996 is included in cost of sales in the consolidated statements of operations for the three months ended March 31, 2023 and 2022, respectively.

Deferred Charges and Other Assets

Amortization expense on other assets of $ 6,023 and $ 3,576 is included in cost of sales in the consolidated statements of operations for the three months ended September 30, 2022 and 2021, respectively.

Amortization expense on other assets of $ 20,430 and $ 14,035 is included in cost of sales in the consolidated statements of operations for the nine months ended September 30, 2022 and 2021, respectively.

Amortization expense on deferred charges and other assets of $ 5,679 and $ 7,286 is included in cost of sales in the consolidated statements of operations for the three months ended March 31, 2023 and 2022, respectively.

Distributions and Net Income Per Limited Partner Unit

On October 31, 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 September 30, 2022 of $ 0.4714 per unit.

This distribution is payable on November 28, 2022 to unitholders of record as of November 10, 2022.

On May 2, 2023, 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, 2023 of $ 0.4714 per unit.

This distribution is payable on May 26, 2023 to unitholders of record as of May 12, 2023.

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,

2022 2021 2022 2021

Three Months Ended March 31,

Net income attributable to the Partnership $ 14,892 $ 16,194

1 unchanged sentence

16,603 16,600

Net income in excess of distribution (Distribution in excess of net income) $ ( 1,847 ) $ ( 3,810 ) $ ( 2,410 ) $ 3,247

Distribution in excess of net income $ ( 1,711 ) $ ( 406 )

WESTLAKE CHEMICAL PARTNERS LP

7 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, 2022

Limited Partners' Common Units Incentive Distribution Rights Total

Net income attributable to the Partnership:

Distribution $ 16,604 $ — $ 16,604

Distribution in excess of net income ( 1,847 ) — ( 1,847 )

Net income $ 14,757 $ — $ 14,757

Weighted average units outstanding:

Basic and diluted 35,218,547 35,218,547

Net income per limited partner unit:

Basic and diluted $ 0.42

Three Months Ended September 30, 2021

Three Months Ended March 31, 2023

Limited Partners' Common Units Incentive Distribution Rights Total

7 unchanged sentences

Basic and diluted $ 0.42

Nine Months Ended September 30, 2022

Three Months Ended March 31, 2022

Limited Partners' Common Units Incentive Distribution Rights Total

7 unchanged sentences

Basic and diluted $ 0.46

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

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

Nine Months Ended September 30, 2021

Limited Partners' Common Units Incentive Distribution Rights Total

Net income attributable to the Partnership:

Distribution $ 49,788 $ — $ 49,788

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

Net income $ 53,035 $ — $ 53,035

Weighted average units outstanding:

Basic and diluted 35,203,609 35,203,609

Net income per limited partner unit:

Basic and diluted $ 1.51

The amended Partnership Agreement provides that the Partnership will distribute cash that is deemed to be operating surplus each quarter to all the unitholders, pro rata, until each unit has received a distribution of $ 1.2938 .

8 unchanged sentences

50.0 % 50.0 %

The Partnership's distribution for the three months ended September 30, 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 and nine months ended September 30, 2022 and 2021 were as follows:

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

2022 2021 2022 2021

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

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

The Partnership's distribution for the three months ended March 31, 2023 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.

Distributions Per Common Unit

Distributions per common unit for the three months ended March 31, 2023 and 2022 were as follows:

Three Months Ended March 31,

Distributions per common unit $ 0.4714 $ 0.4714

Partners' Equity

On October 4, 2018, the Partnership and Westlake Chemical Partners GP LLC, the general partner of the Partnership, entered into an Equity Distribution Agreement with UBS Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC to offer and sell the Partnership's common units, from time to time, up to an aggregate offering amount of $ 50,000 .

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, 2022.

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

No common units were issued under this program as of March 31, 2023.

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.

TTWF LP, Westlake's principal stockholder and a related party, acquired 1,401,869 common units out of 2,940,818 common units issued in the private placement.

WESTLAKE CHEMICAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued

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

Related Party Transactions

5 unchanged sentences

Sales to related parties were as follows:

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

2022 2021 2022 2021

Three Months Ended March 31,

Net sales—Westlake $ 257,471 $ 290,657

As of September 30, 2022, OpCo has estimated an annual deficiency for the full year 2022, and thus, the Partnership has recognized buyer deficiency fees of $ 13,940 during the three and nine months ended September 30, 2022.

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

The buyer deficiency fees are classified as a component of net sales—Westlake.

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,

2022 2021 2022 2021

Three Months Ended March 31,

Feedstock purchased from Westlake and included in cost of sales

9 unchanged sentences

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

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

2022 2021 2022 2021

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,

2022 2021 2022 2021

Three Months Ended March 31,

Goods and services purchased from Westlake and capitalized as assets

$ 832 $ 3,606 $ 2,205 $ 4,542

Receivable under the Investment Management Agreement

On August 1, 2017, the Partnership, OpCo and Westlake executed an investment management agreement (the "Investment Management Agreement") that authorized Westlake to invest the Partnership's and OpCo's excess cash with Westlake for a term of up to a maximum of nine months.

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 $ 691 and $ 71 was included in the receivable under the Investment Management Agreement balance at September 30, 2022 and December 31, 2021, respectively.

Total interest earned related to the Investment Management Agreement was $ 691 and $ 81 for the three months ended September 30, 2022 and 2021, respectively, and $ 934 and $ 225 for the nine months ended September 30, 2022 and 2021, respectively.

Accrued interest of $ 907 and $ 940 was included in the receivable under the Investment Management Agreement balance at March 31, 2023 and December 31, 2022, respectively.

Total interest earned related to the Investment Management Agreement was $ 907 and $ 52 for the three months ended March 31, 2023 and 2022, respectively.

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

September 30,

2023 December 31,

5 unchanged sentences

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.

The buyer deficiency fees discussed above under "Sales to Related Parties" recognized in the nine months ended September 30, 2022 are scheduled to be received by the Partnership after December 31, 2022.

As a result of the force majeure events in 2021, the Partnership recognized revenue for a buyer deficiency fee of $ 51,395 and a 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.

Based on OpCo's 2022 production, the Partnership recognized buyer deficiency fees of $ 23,835 during 2022.

The buyer deficiency fee was received by the Partnership in January 2023.

Additionally, as a result of force majeure events in 2021, the Partnership recognized a shortfall fee of $ 58,906 during 2021, of which $ 7,193 remained to be collected by the Partnership as of December 31, 2022.

Of this amount, $ 5,374 was received in the three months ended March 31, 2023 and the remaining amount will be collected during 2023 pursuant to the terms of the Ethylene Sales Agreement.

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

September 30,

2023 December 31,

3 unchanged sentences

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

September 30,

2023 December 31,

1 unchanged sentence

Related Party Leases

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 $ 719 and $ 997 for the three months ended September 30, 2022 and 2021, respectively, and $ 1,979 and $ 2,292 for the nine months ended September 30, 2022 and 2021, respectively, and reflected in other charges from Westlake that are included in cost of sales.

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

Operating lease rentals paid to Westlake for such leases were $ 737 and $ 686 for the three months ended March 31, 2023 and 2022, respectively, and are 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, 2022 and 2021 was $ 3,645 and $ 2,190 , respectively.

Interest on related party debt payable balances for the nine months ended September 30, 2022 and 2021 was $ 8,703 and $ 6,650 , respectively.

Interest on related party debt payable balances, net of capitalized interest, for the three months ended March 31, 2023 and 2022 was $ 7,315 and $ 2,199 , respectively.

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

At September 30, 2022 and December 31, 2021, accrued interest on related party debt was $ 3,544 and $ 2,176 , respectively, and is reflected as a component of accrued and other liabilities in the consolidated balance sheets.

At March 31, 2023 and December 31, 2022, accrued interest on related party debt was $ 7,326 and $ 4,733 , respectively, and is reflected as a component of accrued and other liabilities in the consolidated balance sheets.

Debt payable to related parties was as follows:

September 30,

2023 December 31,

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

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

Major Customer and Concentration of Credit Risk

During the three months ended September 30, 2022 and 2021, Westlake accounted for approximately 87.8 % and 84.3 %, respectively, of the Partnership's net sales.

During the nine months ended September 30, 2022 and 2021, Westlake accounted for approximately 83.2 % and 80.1 %, respectively, of the Partnership's net sales.

During the three months ended March 31, 2023 and 2022, Westlake accounted for approximately 83.7 % and 80.2 %, respectively, of the Partnership's net sales.

WESTLAKE CHEMICAL PARTNERS LP

3 unchanged sentences

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

September 30,

2023 December 31,

1 unchanged sentence

MLP Revolver 377,055 377,055

Total debt $ 399,674 $ 399,674

On July 12, 2022, OpCo entered into the Second Amendment (the "OpCo Revolver Amendment") to the Amended and Restated Senior Unsecured Revolving Credit Agreement (as so amended, the "OpCo Revolver").

Prior to the OpCo Revolver Amendment, the OpCo Revolver bore interest at the London Interbank Offered Rate ("LIBOR") plus 2.0 %.

The OpCo Revolver Amendment, among other things, extended the maturity date of the OpCo Revolver from September 25, 2023 to July 12, 2027 and provided for the replacement of LIBOR with the Secured Overnight Financing Rate, as administered by the Federal Reserve Bank of New York ("SOFR").

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 %.

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

As of March 31, 2023, outstanding borrowings under the OpCo Revolver and the MLP Revolver bore interest at the Secured Overnight Financing Rate, as administered by the Federal Reserve Bank of New York ("SOFR") plus the Applicable Margin plus a 0.10 % credit spread adjustment.

The Applicable Margin under the OpCo Revolver is 1.75 %.

As of September 30, 2022, outstanding borrowings under the OpCo Revolver bore interest at SOFR plus the Applicable Margin and credit spread adjustment.

On July 12, 2022, the Partnership entered into the Fourth Amendment (the "MLP Revolver Amendment") to the Senior Unsecured Revolving Credit Agreement (the "MLP Revolver").

Prior to the MLP Revolver Amendment, the MLP Revolver bore interest at a variable rate of either (a) LIBOR plus 2.0 % or, if LIBOR were no longer available, (b) the Alternate Base Rate plus 1.0 %.

The MLP Revolver Amendment, among other things, extended the maturity date of the MLP Revolver from March 19, 2023 to July 12, 2027 and provided for the replacement of LIBOR with SOFR.

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 %.

The Applicable Margin under the MLP Revolver varies between 1.75 % and 2.75 %, depending on the Partnership's Consolidated Leverage Ratio.

As of September 30, 2022, outstanding borrowings under the MLP Revolver bore interest at SOFR plus the Applicable Margin and credit spread adjustment.

The weighted average interest rate on all debt was 3.4 % and 2.1 % at September 30, 2022 and December 31, 2021, respectively.

As of September 30, 2022, the Partnership was in compliance with all of the covenants under the OpCo Revolver and the MLP Revolver.

The OpCo Revolver and the MLP Revolver are scheduled to mature on July 12, 2027.

The weighted average interest rate on all long-term debt was 6.4 % and 4.8 % at March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023, 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 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 long-term 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 debt at September 30, 2022 and December 31, 2021 are summarized in the table below.

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

September 30, 2022 December 31, 2021

The carrying and fair values of the Partnership's long-term debt at March 31, 2023 and December 31, 2022 are summarized in the table below.

The fair value of long-term 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.

March 31, 2023 December 31, 2022

Value Carrying

OpCo Revolver $ 22,619 $ 23,169 $ 22,619 $ 23,276

MLP Revolver 377,055 382,278 377,055 383,574

Long-term debt payable to Westlake $ 399,674 $ 407,874 $ 399,674 $ 405,879

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 $ 22,615 and $ 60,895 at September 30, 2022 and December 31, 2021, respectively.

Accrued maintenance expense and accrued taxes, which are components of accrued and other liabilities, were $ 6,128 and $ 5,462 , respectively, at September 30, 2022 and $ 5,597 and $ 2,264 , respectively, at December 31, 2021.

Accrued and other liabilities were $ 21,061 and $ 17,537 at March 31, 2023 and December 31, 2022, respectively.

Accrued maintenance expense, accrued interest on related party debt and accrued taxes, which are components of accrued and other liabilities, were $ 4,660 , $ 7,326 and $ 3,508 , respectively, at March 31, 2023 and $ 3,752 , $ 4,733 and $ 2,652 , respectively, at December 31, 2022.

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

Cash Flow Information

Non-cash Investing Activity

Capital expenditure related liabilities, included in accounts payable—third parties and accrued and other liabilities, were $ 7,654 and $ 10,517 at September 30, 2022 and 2021, respectively.

Capital expenditure related liabilities, included in accounts payable—third parties and accrued and other liabilities, were $ 2,091 and $ 8,056 at March 31, 2023 and 2022, respectively.

Interest Paid

Interest paid by the Partnership, net of interest capitalized, was $ 4,696 and $ 2,163 for the three months ended March 31, 2023 and 2022, respectively.

Commitments and Contingencies

7 unchanged sentences

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 expects 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