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Item 2. Management’s Discussion and Analysis

2024-11-06 compared with 2024-08-09 · 74 added, 71 removed, 241 unchanged (38% of the section changed)

29 unchanged sentences

Under the Ethylene Sales Agreement, the price for the sale of such excess ethylene to Westlake is based on a formula similar to that used for the minimum purchase commitment, with the exception of certain fixed costs.

Under the Ethylene Sales Agreement, if we produce more than our planned production in a contract year, we reimburse Westlake for certain non-variable costs that were charged on excess quantities of ethylene produced and sold to Westlake.

Such reimbursement is scheduled to be paid by the Partnership after the conclusion of the year.

In addition, under the Ethylene Sales Agreement, if production costs billed to Westlake on an annual basis are less than 95% of the actual production costs incurred by OpCo during the contract year, OpCo is entitled to recover the shortfall in such production costs (proportionate to the volume sold to Westlake) in the subsequent year ("Shortfall").

34 unchanged sentences

Results of Operations

Three Months Ended June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

20 unchanged sentences

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

Three Months Ended June 30, 2024 Six Months Ended June 30, 2024

Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Sales Price Volume Average

1 unchanged sentence

Net sales percentage change from prior-year period due to average sales price and volume -15.1 % +1.2 % -7.9 % +2.6 %

Three Months Ended June 30, 2024 Six Months Ended June 30, 2024

Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Domestic US prices percentage change from prior-year period for fuel cost and feedstock

3 unchanged sentences

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 June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

11 unchanged sentences

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 June 30, Six Months Ended June 30,

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

2024 2023 2024 2023

11 unchanged sentences

EBITDA $ 139,126 $ 115,738 $ 386,756 $ 349,947

For the quarter ended June 30, 2024, net income was $88.0 million on net sales of $284.2 million.

This represents an increase in net income of $12.7 million as compared to net income of $75.3 million on net sales of $264.2 million for the quarter ended June 30, 2023.

Net income attributable to the Partnership for the second quarter of 2024 was $14.4 million as compared to $11.9 million for the second quarter of 2023, an increase of $2.5 million .

Income from operations was $93.6 million for the second quarter of 2024 as compared to $80.5 million for the second quarter of 2023.

Income from operations, net income and net income attributable to the Partnership for the second quarter of 2024 as compared to the second quarter of 2023 were higher primarily due to higher ethylene sales volumes to Westlake and lower ethane feedstock costs in the second quarter of 2024 compared to the second quarter of 2023, partially offset by lower ethylene sales prices to Westlake.

Net sales for the second quarter of 2024 increased by $20.0 million as compared to net sales for the second quarter of 2023, mainly due to higher ethylene sales volumes to Westlake and higher ethylene and co-products sales prices to third parties in the second quarter of 2024 compared to the second quarter of 2023, partially offset by lower ethylene sales prices to Westlake.

For the six months ended June 30, 2024 , net income was $177.7 million on net sales of $568.8 million.

This represents an increase in net income of $11.0 million as compared to net income of $166.7 million on net sales of $571.9 million for the six months ended June 30, 2023 .

Net income attributable to the Partnership for the six months ended June 30, 2024 was $29.3 million as compared to $26.8 million for the six months ended June 30, 2023 , an increase of $2.5 million.

Income from operations was $188.7 million for the six months ended June 30, 2024 as compared to $178.7 million for the six months ended June 30, 2023 .

Income from operations, net income and net income attributable to the Partnership for the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 were higher primarily due to higher ethylene sales volumes to Westlake and lower ethane feedstock costs and natural gas prices in the six months ended June 30, 2024 compared to the six months ended June 30, 2023 , partially offset by lower ethylene sales prices to Westlake.

N et sales for the six months ended June 30, 2024 decreased by $3.1 million as compared t o net sales for the six months ended June 30, 2023, mainly due to lower ethylene sales prices, partially offset by higher sales volumes during the six months ended June 30, 2024 as compared t o the six months ended June 30, 2023 .

For the quarter ended September 30, 2024, net income was $104.1 million on net sales of $277.0 million.

This represents an increase in net income of $23.2 million as compared to net income of $80.9 million on net sales of $321.7 million for the quarter ended September 30, 2023.

Net income attributable to the Partnership for the third quarter of 2024 was $18.1 million as compared to $13.2 million for the third quarter of 2023, an increase of $4.9 million .

Income from operations was $109.7 million for the third quarter of 2024 as compared to $86.2 million for the third quarter of 2023, an increase of $23.5 million.

Income from operations, net income and net income attributable to the Partnership for the third quarter of 2024 as compared to the third quarter of 2023 were higher primarily due to higher ethylene and co-products sales volumes and prices to third parties and lower ethane feedstock costs and natural gas prices in the third quarter of 2024 compared to the third quarter of 2023, partially offset by lower ethylene sales volumes and prices to Westlake.

Net sales for the third quarter of 2024 decreased by $44.7 million as compared to net sales for the third quarter of 2023, mainly due to lower ethylene sales volumes and prices to Westlake in the third quarter of 2024 compared to the third quarter of 2023, partially offset by higher ethylene and co-products sales volumes and prices to third parties.

For the nine months ended September 30, 2024 , net income was $281.8 million on net sales of $845.8 million.

This represents an increase in net income of $34.2 million as compared to net income of $247.6 million on net sales of $893.5 million for the nine months ended September 30, 2023 .

Net income attributable to the Partnership for the nine months ended September 30, 2024 was $47.4 million as compared to $40.0 million for the nine months ended September 30, 2023 , an increase of $7.4 million.

Income from operations was $298.4 million for the nine months ended September 30, 2024 as compared to $264.9 million for the nine months ended September 30, 2023, an increase of $33.5 million .

Income from operations, net income and net income attributable to the Partnership for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 were higher primarily due to higher ethylene and co-products sales volumes and prices to third parties, higher ethylene sales volumes to Westlake and lower ethane feedstock costs and natural gas prices in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, partially offset by lower ethylene sales prices to Westlake.

Net sale s for the nine months ended September 30, 2024 decreased by $47.7 million as compared t o net sales for the nine months ended September 30, 2023, mainly due to lower ethylene sales prices to Westlake, partially offset by higher ethylene and co-products sales volumes and prices to third parties and higher ethylene sales volumes to Westlake during the nine months ended September 30, 2024 as compared t o the nine months ended September 30, 2023 .

RESULTS OF OPERATIONS

Second Quarter 2024 Compared with Second Quarter 2023

Total net sales increased by $20.0 million, or 7.6%, to $284.2 million in the second quarter of 2024 from $264.2 million in the second quarter of 2023.

The increase in net sales in the second quarter of 2024 was primarily due to higher ethylene sales volumes to Westlake and higher ethylene and co-products sales prices to third parties in the second quarter of 2024 compared to the second quarter of 2023, partially offset by lower ethylene sales prices to Westlake.

Lower average sales prices in the second quarter of 2024 contributed to a 1.2% decrease in net sales compared to the second quarter of 2023.

Higher sales volumes in the second quarter of 2024 contributed to an 8.8% increase in net sales compared to the second quarter of 2023.

Third Quarter 2024 Compared with Third Quarter 2023

Total net sales decreased by $44.7 million, or 13.9%, to $277.0 million in the third quarter of 2024 from $321.7 million in the third quarter of 2023.

The decrease in net sales in the third quarter of 2024 was primarily due to lower ethylene sales volumes and prices to Westlake in the third quarter of 2024 compared to the third quarter of 2023, partially offset by higher ethylene and co-products sales volumes and prices to third parties.

Lower average sales prices in the third quarter of 2024 contributed to a 15.1% decrease in net sales compared to the third quarter of 2023.

Higher sales volumes in the third quarter of 2024 contributed to a 1.2% increase in net sales compared to the third quarter of 2023.

Gross Profit.

Gross profit increased to $101.2 million in the second quarter of 2024 from $87.7 million in the second quarter of 2023.

Gross profit margin percentage in the second quarter of 2024 was 35.6%, as compared to 33.2% for the second quarter of 2023.

The higher gross profit was primarily due to higher ethylene sales volumes to Westlake, higher ethylene and co-products sales prices to third parties and lower ethane feedstock costs in the second quarter of 2024 compared to the second quarter of 2023, partially offset by lower ethylene sales prices to Westlake.

The higher gross profit margin was primarily due to lower ethane feedstock costs in the second quarter of 2024 compared to the second quarter of 2023.

Gross profit increased to $116.9 million in the third quarter of 2024 from $93.0 million in the third quarter of 2023.

Gross profit margin percentage in the third quarter of 2024 was 42.2%, as compared to 28.9% for the third quarter of 2023.

The higher gross profit margin was primarily due to lower ethane feedstock costs and natural gas prices in the third quarter of 2024 compared to the third quarter of 2023.

The gross profit margin for the third quarter of 2024 was also positively affected by insurance recoveries of approximately $6.2 million related to the settlement of a business interruption claim associated with Hurricane Laura, which impacted OpCo's Petro 1 and Petro 2 facilities in the second half of 2020 and impacted production in the subsequent periods.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses increased by $0.4 million, or 5.6%, to $7.6 million in the second quarter of 2024 as compared to $7.2 million in the second quarter of 2023.

The increase was mainly attributable to higher service costs in the second quarter of 2024 as compared to the second quarter of 2023.

Selling, general and administrative expenses increased by $0.6 million, or 9.0%, to $7.3 million in the third quarter of 2024 as compared to $6.7 million in the third quarter of 2023.

The increase was mainly attributable to a higher provision for credit losses in the third quarter of 2024 as compared to the third quarter of 2023.

Interest Expense—Westlake.

Interest expense of $6.7 million in the second quarter of 2024 increased from $6.1 million in the second quarter of 2023 mainly due to higher interest rates on the debt balance outstanding in the second quarter of 2024 as compared to the second quarter of 2023.

Interest expense of $6.7 million in the third quarter of 2024 increased from $6.4 million in the third quarter of 2023 mainly due to higher interest rates on the debt balance outstanding in the third quarter of 2024 as compared to the third quarter of 2023.

Other Income, net .

Other income, net increased by $0.2 million to $1.3 million in the second quarter of 2024 from $1.1 million in the second quarter of 2023, primarily due to higher interest earned on the balance with Westlake under the Investment Management Agreement due to higher market interest rates.

Other income, net remained consistent at $1.3 million in the third quarter of 2024 as compared to $1.3 million in the third quarter of 2023.

MLP Distributable Cash Flow.

MLP distributable cash flow increased by $2.1 million to $17.1 million in the second quarter of 2024 from $15.0 million in the second quarter of 2023.

The increase in the second quarter of 2024, as compared to the prior-year period, was primarily attributable to increased earnings at OpCo, partially offset by higher reserves for turnarounds and maintenance capital expenditures.

EBITDA increased by $14.6 million to $123.2 million in the second quarter of 2024 from $108.6 million in the second quarter of 2023.

The increase was primarily due to higher ethylene sales volumes to Westlake and lower ethane feedstock costs in the second quarter of 2024 compared to the second quarter of 2023, partially offset by lower ethylene sales prices to Westlake.

Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023

Total net sales decreased by $3.1 million, or 0.5% , to $568.8 million in the six months ended June 30, 2024 from $571.9 million in the six months ended June 30, 2023 .

The decrease in net sales in the six months ended June 30, 2024 was primarily due to lower ethylene sales prices, partially offset by higher sales volumes during the six months ended June 30, 2024 as co mpared to the six months ended June 30, 2023.

The lower average sales prices in the six months ended June 30, 2024 contributed to a 3.9% decrease in net sales compared to the six months ended June 30, 2023.

The higher sales volumes in the six months ended June 30, 2024 contributed to a 3.3% increase in net sales as compared to the six months ended June 30, 2023 .

MLP distributable cash flow increased by $4.3 million to $17.9 million in the third quarter of 2024 from $13.6 million in the third quarter of 2023.

The increase in the third quarter of 2024, as compared to the prior-year period, was primarily attributable to increased earnings at OpCo and lower maintenance capital expenditures, partially offset by higher reserves for future turnarounds.

EBITDA increased by $23.4 million to $139.1 million in the third quarter of 2024 from $115.7 million in the third quarter of 2023.

The increase was primarily due to higher ethylene and co-products sales volumes and prices to third parties and lower ethane feedstock costs and natural gas prices in the third quarter of 2024 compared to the third quarter of 2023, partially offset by lower ethylene sales volumes and prices to Westlake.

EBITDA for the third quarter of 2024 was also positively impacted by insurance recoveries of approximately $6.2 million related to the settlement of a business interruption claim associated with Hurricane Laura, which impacted OpCo's Petro 1 and Petro 2 facilities in the second half of 2020 and impacted production in the subsequent periods.

Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023

Total net sales decreased by $47.7 million, or 5.3% , to $845.8 million in the nine months ended September 30, 2024 from $893.5 million in the nine months ended September 30, 2023 .

The decrease in net sales in the nine months ended September 30, 2024 was primarily due to lower ethylene sales prices to Westlake, partially offset by higher ethylene sales volumes to Westlake and higher ethylene and co-products sales volumes and prices to third parties during the nine months ended September 30, 2024 as co mpared to the nine months ended September 30, 2023.

The lower average sales prices in the nine months ended September 30, 2024 contributed to a 7.9% decrease in net sales compared to the nine months ended September 30, 2023.

The higher sales volumes in the nine months ended September 30, 2024 contributed to a 2.6% increase in net sales as compared to the nine months ended September 30, 2023 .

Gross Profit.

Gross profit increased to $203.4 million in the six months ended June 30, 2024 from $193.8 million in the six months ended June 30, 2023 .

Gross profit margin in the six months ended June 30, 2024 was 35.8% , as compared to 33.9% for the six months ended June 30, 2023 .

The increase in gross profit margin was primarily due to lower ethane feedstock costs and natural gas prices in the six months ended June 30, 2024 compared to the six months ended June 30, 2023.

Gross profit increased to $320.4 million in the nine months ended September 30, 2024 from $286.8 million in the nine months ended September 30, 2023 .

Gross profit margin in the nine months ended September 30, 2024 was 37.9% , as compared to 32.1% for the nine months ended September 30, 2023.

The increase in gross profit margin was primarily due to higher sales prices and volumes to third parties and lower ethane feedstock costs and natural gas prices in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses decreased by $0.4 million, or 2.6% , to $14.7 million in the six months ended June 30, 2024 as compared to $15.1 million in the six months ended June 30, 2023 .

The decrease was mainly attributable to the provision for credit losses recognized in the six months ended June 30, 2023.

Selling, general and administrative expenses of $21.9 million in the nine months ended September 30, 2024 was comparable to selling, general and administrative expenses of $21.9 million in the nine months ended September 30, 2023 .

Interest Expense—Westlake.

Interest expense of $13.2 million in the six months ended June 30, 2024 was comparable to interest expense of $13.4 million in the six months ended June 30, 2023.

Interest expense of $19.9 million in the nine months ended September 30, 2024 was comparable to interest expense of $19.9 million in the nine months ended September 30, 2023.

Other Income, net .

Other income, net increased by $0.7 million to $2.6 million in the six months ended June 30, 2024 from $1.9 million in the six months ended June 30, 2023, primarily due to higher interest earned on the balance with Westlake under the Investment Management Agreement due to higher market interest rates as well as a higher average amount of cash invested in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023.

Other income, net increased by $0.7 million to $3.9 million in the nine months ended September 30, 2024 from $3.2 million in the nine months ended September 30, 2023, primarily due to higher interest earned on the balance with Westlake under the Investment Management Agreement due to higher market interest rates as well as a higher average amount of cash invested in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

MLP Distributable Cash Flow.

MLP distributable cash flow increased by $1.5 million to $34.0 million in the six months ended June 30, 2024 from $32.5 million in the six months ended June 30, 2023 .

The increase in the six months ended June 30, 2024 , as compared to the prior-year p eriod, was primarily attributable to increased earnings at OpCo, partially offset by higher reserves for turnarounds and maintenance capital expenditures.

EBITDA increased by $13.4 million to $247.6 million in the six months ended June 30, 2024 from $234.2 million in the six months ended June 30, 2023 .

The increase was primarily due to higher ethylene sales volumes to Westlake and lower ethane feedstock costs and natural gas prices during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, partially offset by lower ethylene sales prices to Westlake.

CASH FLOW DISCUSSION FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

MLP distributable cash flow increased by $5.7 million to $51.9 million in the nine months ended September 30, 2024 from $46.2 million in the nine months ended September 30, 2023 .

The increase in the nine months ended September 30, 2024 , as compared to the prior-year p eriod, was primarily attributable to increased earnings at OpCo, partially offset by higher reserves for future turnarounds.

EBITDA increased by $36.9 million to $386.8 million in the nine months ended September 30, 2024 from $349.9 million in the nine months ended September 30, 2023.

The increase was primarily due to higher ethylene and co-products sales volumes and prices to third parties, higher ethylene sales volumes to Westlake and lower ethane feedstock costs and natural gas prices during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023, partially offset by lower ethylene sales prices to Westlake.

CASH FLOW DISCUSSION FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Operating Activities

Operating activities provided cash of $226.5 million in the first six months of 2024 compared to cash provided by operating activities of $243.4 million in the first six months of 2023.

The $16.9 million decrease in cash flows from operating activities was mainly due to a decrease of $49.4 million in cash provided by working capital during the six months ended June 30, 2024 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, net—Westlake, accounts receivable, net—third parties, inventories, prepaid expenses and other current assets less accounts payable—Westlake, accounts payable—third parties and accrued and other liabilities, provided cash of $0.3 million in the first six months of 2024 as compared to $49.7 million of cash provided in the first six months of 2023, resulting in an overall unfavorable change of $49.4 million.

The unfavorable change in working capital was mainly attributable to unfavorable changes in net accounts receivable—Westlake, accounts receivable—third parties, accounts payable—third parties and accrued and other liabilities.

The unfavorable change in accounts receivable, net—Westlake was primarily due to a smaller buyer deficiency fee and Shortfall collected in the first six months of 2024 as compared to the first six months of 2023 partially offset by lower ethane feedstock costs.

Unfavorable changes in accounts receivables— third parties, accounts payable—third parties and accrued and other liabilities were due to higher third party sales and lower maintenance costs in the first six months of 2024 as compared to the first six months of 2023.

Operating activities provided cash of $352.5 million in the first nine months of 2024 compared to cash provided by operating activities of $344.3 million in the first nine months of 2023.

The $8.2 million increase in cash flows from operating activities was mainly due to lower cash used for turnaround activity compared to the first nine months of 2023.

Changes in components of working capital, which we define for the purposes of this cash flow discussion as accounts receivable, net—Westlake, accounts receivable, net—third parties, inventories, prepaid expenses and other current assets less accounts payable—Westlake, accounts payable—third parties and accrued and other liabilities, provided cash of $1.2 million in the first nine months of 2024 as compared to $39.5 million of cash provided in the first nine months of 2023, resulting in an overall unfavorable change of $38.3 million.

The unfavorable change in working capital was mainly attributable to unfavorable changes in net accounts receivable—Westlake, accounts payable—third parties and accrued and other liabilities.

The unfavorable change in accounts receivable, net—Westlake was primarily due to a smaller buyer deficiency fee and Shortfall collected in the first nine months of 2024 as compared to the first nine months of 2023, partially offset by changes in the payable with Westlake due to fluctuating ethane feedstock costs.

Unfavorable changes in accounts payable—third parties and accrued and other liabilities were due to the timing of payment of accruals and the impact of the Calvert City Olefins turnaround activities on these balances in the first nine months of 2023.

Investing Activities

Net cash used for investing activities in the first six months of 2024 was $20.0 million as compared to net cash used for investing activities of $46.3 million in the first six months of 2023, resulting in an overall favorable change of $26.3 million in investing cash flows.

During the first six months of 2023, there were net investments with Westlake of $29.1 million under the Investment Management Agreement, whereas, in the first six months of 2024 there were no investing activities under the Investment Management Agreement.

Capital expenditures during the first six months of 2024 were slightly higher than the first six months of 2023.

Net cash used for investing activities in the first nine months of 2024 was $50.5 million as compared to net cash used for investing activities of $53.1 million in the first nine months of 2023, resulting in an overall favorable change of $2.6 million in investing cash flows.

During the first nine months of 2024, there were net investments with Westlake of $15.0 million under the Investment Management Agreement, whereas during the first nine months of 2023, there were net investments with Westlake of $19.1 million under the Investment Management Agreement.

Capital expenditures during the first nine months of 2024 were slightly higher than the first nine months of 2023.

For both the comparative periods, these capital expenditures were primarily related to projects to increase production capacity or reduce costs, maintenance costs and safety and environmental projects at our facilities.

Financing Activities

Net cash used for financing activities in the first six months of 2024 was $199.1 million as compared to net cash used for financing activities of $202.5 million in the first six months of 2023.

The cash outflows in the first six months of 2024 were related to distributions of $165.9 million to the noncontrolling interest retained in OpCo by Westlake and of $33.2 million to unitholders by the Partnership.

The cash outflows in the first six months of 2023 were related to distributions of $169.3 million to the noncontrolling interest retained in OpCo by Westlake and of $33.2 million to unitholders by the Partnership.

Net cash used for financing activities in the first nine months of 2024 was $300.4 million as compared to net cash used for financing activities of $290.1 million in the first nine months of 2023.

The cash outflows in the first nine months of 2024 were related to distributions of $250.6 million to the noncontrolling interest retained in OpCo by Westlake and of $49.8 million to unitholders by the Partnership.

The cash outflows in the first nine months of 2023 were related to distributions of $240.3 million to the noncontrolling interest retained in OpCo by Westlake and of $49.8 million to unitholders by the Partnership.

LIQUIDITY AND CAPITAL RESOURCES

2 unchanged sentences

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

No common units had been issued under the ATM Program as of June 30, 2024.

No common units had been issued under the ATM Program as of September 30, 2024.

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.

7 unchanged sentences

By reserving additional cash annually, we intend to reduce the variability in OpCo's cash flow.

Although we had previously planned to commence the next maintenance turnaround at the Petro 1 ethylene unit in the third quarter of 2024, we made the decision to defer the planned turnaround in order to maintain production and capitalize on higher average third-party ethylene sales prices during the second half of 2024.

We expect to commence the next planned maintenance turnaround at Petro 1 in the first quarter of 2025.

5 unchanged sentences

Per the terms of the Investment Management Agreement, cash invested with Westlake 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.

On July 30, 2024, 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 27, 2024 to unitholders of record as of August 12, 2024, 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, 2024.

On October 30, 2024, the board of directors of Westlake Chemical Partners GP LLC, our general partner, approved a quarterly distribution of $0.4714 per unit payable on November 27, 2024 to unitholders of record as of November 12, 2024, 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 September 30, 2024.

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.

1 unchanged sentence

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

No such funding was required by OpCo during the six months ended June 30, 2024 and 2023.

Total capital expenditures for the six months ended June 30, 2024 and 2023 were $20.0 million and $17.2 million, respectively.

No such funding was required by OpCo during the nine months ended September 30, 2024 and 2023.

Total capital expenditures for the nine months ended September 30, 2024 and 2023 were $35.5 million and $34.0 million, respectively.

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 June 30, 2024, our cash and cash equivalents totaled $66.0 million.

As of September 30, 2024, our cash and cash equivalents totaled $60.2 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.

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.

The Partnership had $94.5 million of cash invested under the Investment Management Agreement at June 30, 2024.

The Partnership had $109.5 million of cash invested under the Investment Management Agreement at September 30, 2024.

OpCo Revolver

5 unchanged sentences

The Applicable Margin under the OpCo Revolver is 1.75%.

As of June 30, 2024, outstanding borrowings under the OpCo Revolver totaled $22.6 million and bore interest at SOFR plus the Applicable Margin and credit spread adjustment, which is accrued in arrears quarterly.

As of September 30, 2024, outstanding borrowings under the OpCo Revolver totaled $22.6 million and bore interest at SOFR plus the Applicable Margin and credit spread adjustment, which is accrued in arrears quarterly.

In 2015, we entered into a senior, unsecured revolving credit agreement with an affiliate of Westlake, as amended in August and November 2017, March 2020 and July 2022 (the "MLP Revolver").

8 unchanged sentences

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

As of June 30, 2024, outstanding borrowings under the MLP Revolver totaled $377.1 million and bore interest at SOFR plus the Applicable Margin and credit spread adjustment, which is accrued in arrears quarterly.

As of September 30, 2024, outstanding borrowings under the MLP Revolver totaled $377.1 million and bore interest at SOFR plus the Applicable Margin and credit spread adjustment, which is accrued in arrears quarterly.

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 partnership purposes.

58 unchanged sentences

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