What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-02 · 89 added, 51 removed, 231 unchanged (38% of the section changed)

19 unchanged sentences

and (3) a 200-mile common carrier ethylene pipeline (the "Longview Pipeline") that runs from Mont Belvieu, Texas to Westlake's Longview, Texas facility.

Neither we nor OpCo has any employees.

OpCo and Westlake are parties to the Services and Secondment Agreement, pursuant to which Westlake provides OpCo with various utility services, comprehensive operating services for OpCo's units, services for the maintenance and operation of the common facilities and seconded employees to perform all services required under the agreement.

Pursuant to the terms of the Services and Secondment Agreement, OpCo and Westlake have agreed to negotiate in good faith to reach agreement upon terms for the renewal of the agreement prior to the expiration of the initial term in August 2026.

How We Generate Revenue

47 unchanged sentences

Results of Operations

Three Months Ended March 31,

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

2025 2024 2025 2024

(in thousands of dollars)

19 unchanged sentences

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

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Sales Price Volume Average

Sales Price Volume

Net sales percentage change from prior-year period due to average sales price and volume +9.1 % -9.3 % +10.0 % -18.4 %

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

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 March 31,

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

2025 2024 2025 2024

(in thousands of dollars)

10 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 March 31,

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

2025 2024 2025 2024

(in thousands of dollars)

10 unchanged sentences

EBITDA $ 124,391 $ 123,199 $ 199,412 $ 247,630

For the quarter ended March 31, 2025, net income was $42.3 million on net sales of $237.6 million.

This represents a decrease in net income of $47.3 million as compared to net income of $89.6 million on net sales of $284.7 million for the quarter ended March 31, 2024.

Net income attributable to the Partnership for the first quarter of 2025 was $4.9 million as compared to $14.8 million for the first quarter of 2024, a decrease of $9.9 million .

Income from operations was $46.6 million for the first quarter of 2025 as compared to $95.1 million for the first quarter of 2024, a decrease of $48.5 million.

Net sales for the first quarter of 2025 decreased by $47.1 million as compared to the first quarter of 2024 primarily due to lower ethylene sales volumes to Westlake and lower co-products sales volumes to third parties as a result of lower production volumes during the Petro 1 turnaround, partially offset by higher ethylene sales prices to Westlake and third parties.

Income from operations, net income and net income attributable to the Partnership for the first quarter of 2025 as compared to the first quarter of 2024 were lower due to the lower net sales because of the Petro 1 turnaround and higher ethane feedstock and natural gas costs in the first quarter of 2025 compared to the first quarter of 2024.

RESULTS OF OPERATIONS

First Quarter 2025 Compared with First Quarter 2024

Net sales decreased by $47.1 million, or 16.5%, to $237.6 million in the first quarter of 2025 from $284.7 million in the first quarter of 2024.

The decrease in net sales in the first quarter of 2025 was primarily due to lower ethylene sales volumes to Westlake and lower co-products sales volumes to third parties as a result of lower production volumes during the Petro 1 turnaround in the first quarter of 2025 compared to the first quarter of 2024, partially offset by higher ethylene sales prices to Westlake and third parties.

Higher average sales prices in the first quarter of 2025 contributed to an 11.2% increase in net sales compared to the first quarter of 2024.

Lower sales volumes in the first quarter of 2025 contributed to a 27.7% decrease in net sales compared to the first quarter of 2024.

For the quarter ended June 30, 2025, net income was $85.8 million on net sales of $297.1 million.

This represents a decrease in net income of $2.2 million as compared to net income of $88.0 million on net sales of $284.2 million for the quarter ended June 30, 2024.

Net income attributable to the Partnership for the second quarter of 2025 was $14.6 million as compared to $14.4 million for the second quarter of 2024, an increase of $0.2 million .

Income from operations was $91.2 million for the second quarter of 2025 as compared to $93.6 million for the second quarter of 2024, a decrease of $2.4 million.

Net sales for the second quarter of 2025 increased by $12.9 million as compared to the second quarter of 2024 primarily due to higher ethylene sales prices to Westlake, partially offset by lower ethylene and co-products sales volumes to Westlake and third parties primarily as a result of lower production volumes attributable to the Petro 1 turnaround, which concluded in April 2025.

Net sales for the second quarter of 2025 also included a buyer deficiency fee of $13.6 million recognized as a result of a forecasted annual production deficiency due to the Petro 1 turnaround extending into April 2025, which was later than the planned completion in March 2025.

Income from operations and net income for the second quarter of 2025 as compared to the second quarter of 2024 were lower due to higher ethane feedstock and natural gas costs in the second quarter of 2025 compared to the second quarter of 2024.

Despite lower net income, net income attributable to the Partnership for the second quarter of 2025 as compared to the second quarter of 2024 increased due to lower interest expense.

For the six months ended June 30, 2025 , net income was $128.1 million on net sales of $534.7 million .

This represents a decrease in net income of $49.6 million as compared to net income of $177.7 million on net sales of $568.8 million for the six months ended June 30, 2024 .

Net income attributable to the Partnership for the six months ended June 30, 2025 was $19.5 million as compared to $29.3 million for the six months ended June 30, 2024 , a decrease of $9.8 million .

Income from operations was $137.8 million for the six months ended June 30, 2025 as compared to $188.7 million for the six months ended June 30, 2024, a decrease of $50.9 million.

Net sales for the six months ended June 30, 2025 decreased by $34.1 million as compared to net sales for the six months ended June 30, 2024, mainly due to lower ethylene and co-products sales volumes to Westlake and third parties as a result of lower production volumes attributable to the Petro 1 turnaround, partially offset by higher ethylene sales prices to Westlake and third parties as well as a buyer deficiency fee of $13.6 million recognized during the six months ended June 30, 2025 as a result of a forecasted annual production deficiency due to the Petro 1 turnaround extending into April 2025, which was later than the planned completion in March 2025.

Income from operations, net income and net income attributable to the Partnership for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 were lower primarily due to the lower net sales and higher ethane feedstock and natural gas costs during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

RESULTS OF OPERATIO NS

Second Quarter 2025 Compared with Second Quarter 2024

Net sales increased by $12.9 million, or 4.5%, to $297.1 million in the second quarter of 2025 from $284.2 million in the second quarter of 2024.

The increase in net sales in the second quarter of 2025 was primarily due to higher ethylene sales prices to Westlake and the buyer deficiency fee of $13.6 million recognized during the second quarter of 2025, partially offset by lower sales volumes to Westlake and third parties as a result of lower production volumes attributable to the Petro 1 turnaround.

Higher average sales prices in the second quarter of 2025 contributed to a 9.1% increase in net sales compared to the second quarter of 2024.

Lower sales volumes in the second quarter of 2025 contributed to a 9.3% decrease in net sales compared to the second quarter of 2024.

Gross Profit.

Gross profit decreased to $54.1 million in the first quarter of 2025 from $102.2 million in the first quarter of 2024.

Gross profit margin percentage in the first quarter of 2025 was 22.8%, as compared to 35.9% for the first quarter of 2024.

The lower gross profit margin was primarily due to higher ethane feedstock and natural gas costs in the first quarter of 2025 compared to the first quarter of 2024.

Gross profit decreased to $97.5 million in the second quarter of 2025 from $101.2 million in the second quarter of 2024.

Gross profit margin in the second quarter of 2025 was 32.8%, as compared to 35.6% in the second quarter of 2024.

The lower gross profit margin was primarily due to higher ethane feedstock and natural gas costs in the second quarter of 2025 compared to the second quarter of 2024.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses increased by $0.4 million, or 5.6%, to $7.5 million in the first quarter of 2025 as compared to $7.1 million in the first quarter of 2024.

The increase was mainly attributable to higher service charges from Westlake in the first quarter of 2025 as compared to the first quarter of 2024.

Selling, general and administrative expenses decreased by $1.3 million, or 17.1%, to $6.3 million in the second quarter of 2025 as compared to $7.6 million in the second quarter of 2024.

The decrease was mainly attributable to lower service costs in the second quarter of 2025 as compared to the second quarter of 2024.

Interest Expense—Westlake.

Interest expense of $5.5 million in the first quarter of 2025 decreased from $6.6 million in the first quarter of 2024 mainly due to lower interest rates on the outstanding debt in the first quarter of 2025 as compared to the first quarter of 2024.

Interest expense of $5.9 million in the second quarter of 2025 decreased from $6.7 million in the second quarter of 2024 mainly due to lower interest rates on the outstanding debt in the second quarter of 2025 as compared to the second quarter of 2024.

Other Income, net .

Other income, net remained consistent at $1.3 million in the first quarter of 2025 as compared to $1.3 million in the first quarter of 2024.

Other income, net decreased to $0.7 million in the second quarter of 2025 from $1.3 million in the second quarter of 2024, primarily due to a decrease in interest earned on investments with Westlake under the Investment Management Agreement due to a lower average amount of cash invested and lower interest rates in the second quarter of 2025 as compared to the second quarter of 2024.

MLP Distributable Cash Flow.

MLP distributable cash flow decreased by $12.2 million to $4.7 million in the first quarter of 2025 from $16.9 million in the first quarter of 2024.

The decrease in the first quarter of 2025, as compared to the prior-year period, was primarily attributable to decreased earnings at OpCo and higher maintenance capital expenditures due to the Petro 1 turnaround in the first quarter of 2025.

EBITDA decreased by $49.4 million to $75.0 million in the first quarter of 2025 from $124.4 million in the first quarter of 2024.

The decrease was primarily due to lower ethylene sales volumes to Westlake and lower co-products sales volumes to third parties as a result of lower production volumes during the Petro 1 turnaround and higher ethane feedstock and natural gas costs in the first quarter of 2025 compared to the first quarter of 2024, partially offset by higher ethylene sales prices to Westlake and third parties.

CASH FLOW DISCUSSION FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

MLP distributable cash flow decreased by $2.1 million to $15.0 million in the second quarter of 2025 from $17.1 million in the second quarter of 2024.

The decrease in the second quarter of 2025, as compared to the prior-year period, was primarily attributable to higher maintenance capital expenditures due to the Petro 1 turnaround.

EBITDA increased by $1.2 million to $124.4 million in the second quarter of 2025 from $123.2 million in the second quarter of 2024.

The increase was primarily due to higher ethylene sales prices to Westlake and the buyer deficiency fee recognized in the second quarter of 2025 compared to the second quarter of 2024, partially offset by lower ethylene and co-products sales volumes to Westlake and third parties as a result of lower production volumes attributable to the Petro 1 turnaround and higher ethane feedstock and natural gas costs.

Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024

Net sales decreased by $34.1 million , or 6.0% , to $534.7 million in the six months ended June 30, 2025 from $568.8 million in the six months ended June 30, 2024 .

The decrease in net sales in the six months ended June 30, 2025 was primarily due to lower sales volumes to Westlake and third parties as a result of lower production volumes attributable to the Petro 1 turnaround, partially offset by higher ethylene sales prices to Westlake and the buyer deficiency fee of $13.6 million recognized during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

The higher average sales prices in the six months ended June 30, 2025 contributed to a 10.0% increase in net sales compared to the six months ended June 30, 2024.

The lower sales volumes in the six months ended June 30, 2025 contributed to an 18.4% decrease in net sales as compared to the six months ended June 30, 2024.

Gross Profit.

Gross profit decreased to $151.6 million in the six months ended June 30, 2025 from $203.4 million in the six months ended June 30, 2024 .

Gross profit margin in the six months ended June 30, 2025 was 28.4% , as compared to 35.8% for the six months ended June 30, 2024 .

The decrease in gross profit margin was primarily due to higher ethane feedstock and natural gas costs in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses decreased by $0.9 million , or 6.1% , to $13.8 million in the six months ended June 30, 2025 as compared to $14.7 million in the six months ended June 30, 2024.

The decrease was mainly attributable to lower service costs in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Interest Expense—Westlake.

Interest expense of $11.4 million in the six months ended June 30, 2025 decreased by $1.8 million as compared to interest expense of $13.2 million in the six months ended June 30, 2024.

The decrease was primarily attributable to lower interest rates on the outstanding debt in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

Other Income, net .

Other income, net decreased by $0.6 million to $2.0 million in the six months ended June 30, 2025 from $2.6 million in the six months ended June 30, 2024, primarily due to a decrease in interest earned on investments with Westlake under the Investment Management Agreement due to a lower average amount of cash invested and lower interest rates in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

MLP Distributable Cash Flow.

MLP distributable cash flow decreased by $14.3 million to $19.7 million in the six months ended June 30, 2025 from $34.0 million in the six months ended June 30, 2024.

The decrease in the six months ended June 30, 2025, as compared to the prior-year period, was primarily attributable to decreased earnings at OpCo and higher maintenance capital expenditures due to the Petro 1 turnaround.

EBITDA decreased by $48.2 million to $199.4 million in the six months ended June 30, 2025 from $247.6 million in the six months ended June 30, 2024.

The decrease was primarily due to higher ethane feedstock and natural gas costs and lower sales volumes to Westlake and third parties as a result of lower production volumes attributable to the Petro 1 turnaround in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, partially offset by higher ethylene sales prices to Westlake and the buyer deficiency fee recognized during the six months ended June 30, 2025.

CASH FLOW DISCUSSION FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

Operating Activities

Operating activities provided cash of $45.8 million in the first three months of 2025 compared to cash provided by operating activities of $104.6 million in the first three months of 2024.

The $58.8 million decrease in cash flows from operating activities was mainly due to cash used in connection with the Petro 1 turnaround and lower income from operations in the first three months of 2025 compared to the first three months of 2024, partially offset by an increase in cash provided by working capital.

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 $81.7 million in the first three months of 2025 as compared to $9.7 million of cash used in the first three months of 2024, resulting in an overall favorable change of $91.4 million.

The favorable change in working capital was mainly attributable to favorable changes in accounts payable—third parties and accrued and other liabilities due to the impact of the Petro 1 turnaround activities and the timing of payments in the first three months of 2025.

Operating activities provided cash of $54.9 million in the first six months of 2025 compared to cash provided by operating activities of $226.5 million in the first six months of 2024.

The $171.6 million decrease in cash flows from operating activities was mainly due to cash used in connection with the Petro 1 turnaround and lower income from operations in the first six months of 2025 as compared to the first six months of 2024 as well as a decrease in cash provided by working capital.

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, used cash of $10.6 million in the first six months of 2025 as compared to $0.3 million of cash provided in the first six months of 2024, resulting in an overall unfavorable change of $10.9 million.

The unfavorable change in working capital was mainly attributable to an unfavorable change in net accounts receivable—Westlake due to the buyer deficiency recognized in the first six months of 2025 and lower receivables with Westlake outstanding as of the fourth quarter of 2024 due to sales of excess quantities of ethylene at a lower sales price.

This unfavorable change was partially offset by favorable changes in accounts payable—third parties and accrued and other liabilities due to the impact of the Petro 1 turnaround activities and the timing of payments in the first six months of 2025.

Investing Activities

Net cash provided by investing activities in the first three months of 2025 was $14.0 million as compared to net cash used for investing activities of $9.8 million in the first three months of 2024, resulting in an overall favorable change of $23.8 million in investing cash flows.

During the first three months of 2025, there were maturities of investments with Westlake of $30.0 million under the Investment Management Agreement, whereas during the first three months of 2024, there were no investing activities under the Investment Management Agreement.

Capital expenditures increased to $16.0 million in the first three months of 2025 as compared to $9.8 million in the first three months of 2024 due to the Petro 1 turnaround.

Capital expenditures in the first three months of 2025 and 2024 were primarily related to projects to increase production capacity or reduce costs, maintenance costs and safety and environmental projects at our facilities.

Net cash provided by investing activities in the first six months of 2025 was $49.7 million as compared to net cash used for investing activities of $20.0 million in the first six months of 2024, resulting in an overall favorable change of $69.7 million in investing cash flows.

During the first six months of 2025, there were maturities of investments with Westlake of $90.0 million under the Investment Management Agreement, whereas during the first six months of 2024, there were no investing activities under the Investment Management Agreement.

Capital expenditures increased to $40.3 million in the first six months of 2025 as compared to $20.0 million in the first six months of 2024 due to the Petro 1 turnaround.

Capital expenditures in the first six months of 2025 and 2024 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 three months of 2025 was $68.5 million as compared to net cash used for financing activities of $97.7 million in the first three months of 2024.

The cash outflows in the first three months of 2025 were related to distributions of $51.9 million to the noncontrolling interest retained in OpCo by Westlake and of $16.6 million to unitholders by the Partnership.

The cash outflows in the first three months of 2024 were related to distributions of $81.0 million to the noncontrolling interest retained in OpCo by Westlake and of $16.6 million to unitholders by the Partnership.

Net cash used for financing activities in the first six months of 2025 was $126.3 million as compared to net cash used for financing activities of $199.1 million in the first six months of 2024.

The cash outflows in the first six months of 2025 were related to distributions of $93.0 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 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.

LIQUIDITY AND CAPITAL RESOURCES

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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 March 31, 2025.

No common units had been issued under the ATM Program as of June 30, 2025.

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

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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 April 30, 2025, the board of directors of Westlake Chemical Partners GP LLC, our general partner, approved a quarterly distribution of $0.4714 per common unit payable on May 29, 2025 to unitholders of record as of May 13, 2025, which equates to a total amount of approximately $16.6 million per quarter, or approximately $66.4 million per year in aggregate, based on the number of common units outstanding on March 31, 2025.

On July 30, 2025, the board of directors of Westlake Chemical Partners GP LLC, our general partner, approved a quarterly distribution of $0.4714 per common unit payable on August 27, 2025 to unitholders of record as of August 12, 2025, 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, 2025.

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 three months ended March 31, 2025 and 2024.

Total capital expenditures for the three months ended March 31, 2025 and 2024 were $16.0 million and $9.8 million, respectively.

No such funding was required by OpCo during the six months ended June 30, 2025 and 2024.

Total capital expenditures for the six months ended June 30, 2025 and 2024 were $40.3 million and $20.0 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 March 31, 2025, our cash and cash equivalents totaled $49.6 million.

As of June 30, 2025, our cash and cash equivalents totaled $36.6 million.

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

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

The Partnership had $104.5 million of cash invested under the Investment Management Agreement at March 31, 2025.

The Partnership had $43.9 million of cash invested under the Investment Management Agreement at June 30, 2025.

OpCo Revolver

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The Applicable Margin under the OpCo Revolver is 1.75%.

As of March 31, 2025, 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 June 30, 2025, 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").

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

As of March 31, 2025, 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 June 30, 2025, 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.

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• expected mitigation of exposure to commodity price fluctuations;

• turnaround activities and the variability of OpCo's cash flow;

• turnaround activities (such as the Petro 1 turnaround) and the variability of OpCo's cash flow;

• receipt of any buyer deficiency fee and Shortfall under the Ethylene Sales Agreement;

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• lower crude oil prices reducing the cost advantage of ethane-based ethylene producers;

• actions taken by Westlake;

• actions taken by Westlake, including the renewal or renegotiation of, or determinations made pursuant to, our contractual arrangements with Westlake;

• uncertainties associated with the United States and worldwide economies, including those due to political tensions and conflict in the Middle East and elsewhere, including the conflict between Russia and Ukraine;

9 unchanged sentences

• terrorist acts;

• operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, spills and releases and other environmental risks);

• operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, delays in turnaround activities, labor difficulties, transportation interruptions, spills and releases and other environmental risks);

• changes in laws or regulations;

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis