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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2025-10-31 · 59 added, 96 removed, 227 unchanged (41% of the section changed)

26 unchanged sentences

The Ethylene Sales Agreement is a long-term, fee-based agreement with a minimum purchase commitment and includes variable pricing based on OpCo's actual feedstock and natural gas costs and estimated other costs of producing ethylene (including OpCo's estimated operating costs and a five-year average of OpCo's expected future maintenance capital expenditures and other turnaround expenditures based on OpCo's planned ethylene production capacity for the year), plus a fixed margin per pound of $0.10 less revenue from co-products sales.

Pursuant to the Ethylene Sales Agreement, Westlake's obligation to pay for the annual minimum commitment (95% of OpCo's budgeted ethylene production), which is measured on an annual basis, is not reduced for a force majeure event lasting fewer than 45 consecutive days.

In the event of a force majeure event, we recognize buyer deficiency fees representing fixed margin and unavoided operating and maintenance capital expenditures and maintenance expenses per pound of volume committed by Westlake during the force majeure period.

In the event Westlake purchases less than its annual commitment, we recognize buyer deficiency fees representing fixed margin and all expenses and expenditures incurred per pound of volume committed but not taken by Westlake.

Payment for the buyer deficiency fee is scheduled to be received by the Partnership after the conclusion of the year.

Pursuant to the Ethylene Sales Agreement, Westlake is obligated to pay for the annual minimum quantity (95% of OpCo's budgeted ethylene production).

In the event Westlake purchases less than its annual commitment, we recognize a buyer deficiency fee ("Buyer Deficiency Fee") representing fixed margin and all expenses and expenditures incurred per pound of volume committed but not taken by Westlake.

The annual commitment is not reduced for a force majeure event affecting OpCo's plants that lasts fewer than 45 consecutive days;

however, in the event of such a force majeure event, we recognize a Buyer Deficiency Fee representing fixed margin and unavoided operating and maintenance capital expenditures and maintenance expenses per pound of volume committed by Westlake during the force majeure period.

Payment of the Buyer Deficiency Fee is scheduled to be received by the Partnership after the conclusion of the year in which the annual commitment was not purchased and taken by Westlake.

Westlake has an option to take 95% of volumes in excess of the minimum commitment on an annual basis under the Ethylene Sales Agreement if we produce more than our planned production.

24 unchanged sentences

We use each of MLP distributable cash flow and EBITDA to analyze our performance.

Fees for a buyer deficiency and Shortfall are included in net income in the periods in which they are recognized.

Buyer Deficiency fees and Shortfall are included in net income in the periods in which they are recognized.

MLP distributable cash flow and EBITDA are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess our operating performance as compared to other publicly-traded partnerships;

7 unchanged sentences

Reconciliations for each of MLP distributable cash flow and EBITDA are included in the " Results of Operations" section below.

Recent Developments

Renewal of the Ethylene Sales Agreement and Feedstock Supply Agreement

On October 28, 2025, OpCo and Westlake agreed to renew both the Ethylene Sales Agreement and the Feedstock Supply Agreement through December 31, 2027 in accordance with their respective terms (the "Renewal"), which each provide for an initial term through December 31, 2026 and automatic 12-month renewal periods until terminated at the end of the initial term or any renewal term on not less than 12-months' notice.

Amendments to the Services and Secondment Agreement and Omnibus Agreement

In connection with the Renewal, on October 28, 2025, OpCo and certain affiliates of Westlake entered into an amendment to the Services and Secondment Agreement to align the date of expiration of such agreement with the date of expiration of the Ethylene Sales Agreement.

In addition, the Partnership, OpCo and certain affiliates of Westlake also entered into an amendment to the Omnibus Agreement to provide that the Omnibus Agreement would terminate upon termination of the Ethylene Sales Agreement.

The amendment also addressed certain procedural requirements in connection with Westlake's obligation to indemnify the Partnership for certain matters, including, among others, environmental and tax matters, under the Omnibus Agreement.

Please refer to the 2024 Form 10-K and Note 8 to the unaudited consolidated financial statements within this Quarterly Report on Form 10-Q for additional discussions related to these agreements.

Results of Operations

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

2025 2024 2025 2024

Three Months Ended March 31,

(in thousands of dollars)

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

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025

Sales Price Volume Average

Three Months Ended March 31, 2026

Sales Price Volume

Net sales percentage change from prior-year period due to average sales price and volume -7.7 % +36.4 %

Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

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 September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

(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 September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

(in thousands of dollars)

10 unchanged sentences

EBITDA $ 121,216 $ 75,021

For the quarter ended September 30, 2025, net income was $86.2 million on net sales of $308.9 million.

This represents a decrease in net income of $17.9 million as compared to net income of $104.1 million on net sales of $277.0 million for the quarter ended September 30, 2024.

Net income attributable to the Partnership for the third quarter of 2025 was $14.7 million as compared to $18.1 million for the third quarter of 2024, a decrease of $3.4 million .

Income from operations was $92.0 million for the third quarter of 2025 as compared to $109.7 million for the third quarter of 2024, a decrease of $17.7 million.

Net sales for the third quarter of 2025 increased by $31.9 million as compared to the third quarter of 2024 primarily due to higher ethylene sales prices and sales volumes to Westlake, partially offset by lower ethylene and co-products sales prices and sales volumes to third parties.

Income from operations, net income and net income attributable to the Partnership for the third quarter of 2025 as compared to the third quarter of 2024 were lower due to lower third-party sales prices and higher ethane feedstock and natural gas costs, partially offset by higher sales to Westlake in the third quarter of 2025 compared to the third quarter of 2024.

For the nine months ended September 30, 2025 , net income was $214.3 million on net sales of $843.6 million .

This represents a decrease in net income of $67.5 million as compared to net income of $281.8 million on net sales of $845.8 million for the nine months ended September 30, 2024 .

Net income attributable to the Partnership for the nine months ended September 30, 2025 was $34.2 million as compared to $47.4 million for the nine months ended September 30, 2024 , a decrease of $13.2 million .

Income from operations was $229.8 million for the nine months ended September 30, 2025 as compared to $298.4 million for the nine months ended September 30, 2024, a decrease of $68.6 million.

Net sales for the nine months ended September 30, 2025 decreased by $2.2 million as compared to net sales for the nine months ended September 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 nine months ended September 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 nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 were lower primarily due to the lower sales volumes and higher ethane feedstock and natural gas costs during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

For the quarter ended March 31, 2026, net income was $81.7 million on net sales of $305.7 million.

This represents an increase in net income of $39.4 million as compared to net income of $42.3 million on net sales of $237.6 million for the quarter ended March 31, 2025.

Net income attributable to the Partnership for the first quarter of 2026 was $14.2 million as compared to $4.9 million for the first quarter of 2025, an increase of $9.3 million .

Income from operations was $86.6 million for the first quarter of 2026 as compared to $46.6 million for the first quarter of 2025, an increase of $40.0 million.

Net sales for the first quarter of 2026 increased by $68.1 million as compared to the first quarter of 2025.

These increases were primarily driven by higher ethylene production and resulting higher sales to Westlake in the first quarter of 2026 as compared to lower ethylene production due to the Petro 1 turnaround in the first quarter of 2025.

In addition, we had higher co-products sales volumes, which was partially offset by lower sales prices and lower ethylene sales volumes to third parties.

Higher income from operations, net income and net income attributable to the Partnership for the first quarter of 2026 as compared to the first quarter of 2025 due to higher sales to Westlake was partially offset by higher natural gas costs in the first quarter of 2026 compared to the first quarter of 2025.

RESULTS OF OPERATIO NS

Third Quarter 2025 Compared with Third Quarter 2024

Net sales increased by $31.9 million, or 11.5%, to $308.9 million in the third quarter of 2025 from $277.0 million in the third quarter of 2024.

The increase in net sales in the third quarter of 2025 as compared to the third quarter of 2024 was primarily due to higher ethylene sales prices and sales volumes to Westlake, partially offset by lower ethylene and co-products sales prices and sales volumes to third parties.

Higher average sales prices in the third quarter of 2025 contributed to a 12.0% increase in net sales compared to the third quarter of 2024.

Lower sales volumes in the third quarter of 2025 contributed to a 0.5% decrease in net sales compared to the third quarter of 2024.

Gross Profit.

Gross profit decreased to $99.4 million in the third quarter of 2025 from $116.9 million in the third quarter of 2024.

Gross profit margin in the third quarter of 2025 was 32.2%, as compared to 42.2% in the third quarter of 2024.

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

Selling, General and Administrative Expenses.

Selling, general and administrative expenses remained relatively consistent at $7.4 million in the third quarter of 2025 as compared to $7.3 million in the third quarter of 2024.

Interest Expense—Westlake.

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

Other Income, net .

Other income, net decreased to $0.2 million in the third quarter of 2025 from $1.3 million in the third 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 third quarter of 2025 as compared to the third quarter of 2024.

MLP Distributable Cash Flow.

MLP distributable cash flow decreased by $3.0 million to $14.9 million in the third quarter of 2025 from $17.9 million in the third quarter of 2024.

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

EBITDA decreased by $13.0 million to $126.1 million in the third quarter of 2025 from $139.1 million in the third quarter of 2024.

The decrease was primarily due to lower third-party sales prices and higher ethane feedstock and natural gas costs, partially offset by higher sales to Westlake in the third quarter of 2025 compared to the third quarter of 2024.

Nine Months Ended September 30, 2025 Compared with Nine Months Ended September 30, 2024

Net sales decreased by $2.2 million , or 0.3% , to $843.6 million in the nine months ended September 30, 2025 from $845.8 million in the nine months ended September 30, 2024 .

The decrease in net sales in the nine months ended September 30, 2025 was primarily 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 nine months ended September 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.

The higher average sales prices in the nine months ended September 30, 2025 contributed to a 10.1% increase in net sales compared to the nine months ended September 30, 2024.

The lower sales volumes in the nine months ended September 30, 2025 contributed to an 11.9% decrease in net sales as compared to the nine months ended September 30, 2024.

First Quarter 2026 Compared with First Quarter 2025

Net sales increased by $68.1 million, or 28.7%, to $305.7 million in the first quarter of 2026 from $237.6 million in the first quarter of 2025.

The increase in net sales in the first quarter of 2026 as compared to the first quarter of 2025 was primarily due to higher ethylene sales volumes to Westlake as well as higher co‑products sales volumes, partially offset by lower sales prices and sales volumes to third parties.

Higher sales volumes in the first quarter of 2026 contributed to a 36.4% increase in net sales compared to the first quarter of 2025.

Lower average sales prices in the first quarter of 2026 contributed to a 7.7% decrease in net sales compared to the first quarter of 2025.

Gross Profit.

Gross profit decreased to $251.0 million in the nine months ended September 30, 2025 from $320.4 million in the nine months ended September 30, 2024 .

Gross profit margin in the nine months ended September 30, 2025 was 29.8% , as compared to 37.9% for the nine months ended September 30, 2024.

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

Gross profit increased to $93.8 million in the first quarter of 2026 from $54.1 million in the first quarter of 2025.

Gross profit margin in the first quarter of 2026 was 30.7%, as compared to 22.8% in the first quarter of 2025.

The higher gross profit margin was primarily due to higher production and sales in the first quarter of 2026 as compared to the first quarter of 2025 due to the Petro 1 turnaround in the first quarter of 2025, partially offset by higher natural gas costs in the first quarter of 2026 compared to the first quarter of 2025.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses decreased by $0.7 million , or 3.2% , to $21.2 million in the nine months ended September 30, 2025 as compared to $21.9 million in the nine months ended September 30, 2024.

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

Selling, general and administrative expenses remained relatively consistent at $7.2 million in the first quarter of 2026 as compared to $7.5 million in the first quarter of 2025.

Interest Expense—Westlake.

Interest expense of $17.4 million in the nine months ended September 30, 2025 decreased by $2.5 million as compared to interest expense of $19.9 million in the nine months ended September 30, 2024.

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

Interest expense of $5.1 million in the first quarter of 2026 decreased from $5.5 million in the first quarter of 2025 mainly due to lower interest rates on the outstanding debt in the first quarter of 2026 as compared to the first quarter of 2025.

Other Income, net .

Other income, net decreased by $1.7 million to $2.2 million in the nine months ended September 30, 2025 from $3.9 million in the nine months ended September 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 nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Other income, net decreased to $0.3 million in the first quarter of 2026 from $1.3 million in the first quarter of 2025, 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 first quarter of 2026 as compared to the first quarter of 2025.

MLP Distributable Cash Flow.

MLP distributable cash flow decreased by $17.3 million to $34.6 million in the nine months ended September 30, 2025 from $51.9 million in the nine months ended September 30, 2024.

The decrease in the nine months ended September 30, 2025, as compared to the prior-year period, was primarily attributable 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 and higher maintenance capital expenditures due to the Petro 1 turnaround.

EBITDA decreased by $61.3 million to $325.5 million in the nine months ended September 30, 2025 from $386.8 million in the nine months ended September 30, 2024.

The decrease was primarily due to higher ethane feedstock and natural gas costs and 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.

The decrease was 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 nine months ended September 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.

CASH FLOW DISCUSSION FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

MLP distributable cash flow increased by $13.2 million to $17.9 million in the first quarter of 2026 from $4.7 million in the first quarter of 2025.

The increase in the first quarter of 2026, as compared to the prior-year period, was primarily attributable to increased earnings at OpCo and lower maintenance capital expenditures in the first quarter of 2026.

EBITDA increased by $46.2 million to $121.2 million in the first quarter of 2026 from $75.0 million in the first quarter of 2025.

The increase was primarily due to higher ethylene sales to Westlake and higher co-products sales, partially offset by higher natural gas costs in the first quarter of 2026 compared to the first quarter of 2025.

CASH FLOW DISCUSSION FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

Operating Activities

Operating activities provided cash of $160.1 million in the first nine months of 2025 compared to cash provided by operating activities of $352.5 million in the first nine months of 2024.

The $192.4 million decrease in cash flows from operating activities was mainly due to cash used in connection with the Petro 1 turnaround, lower income from operations in the first nine months of 2025 as compared to the first nine months of 2024 and 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 $26.2 million in the first nine months of 2025 as compared to $1.2 million of cash provided in the first nine months of 2024, resulting in an overall unfavorable change of $27.4 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 nine 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 accrued and other liabilities due to the impact of the Petro 1 turnaround activities and the timing of payments in the first nine months of 2025.

Operating activities provided cash of $110.2 million in the first three months of 2026 compared to cash provided by operating activities of $45.8 million in the first three months of 2025.

The $64.4 million increase in cash flows from operating activities was mainly due to higher income from operations in the first three months of 2026 as compared to the first three months of 2025 and a favorable impact in the first three months of 2026 as compared to the first three months of 2025 when significant cash was used in connection with the 2025 Petro 1 turnaround, offset by a decrease in cash provided by working capital changes.

Changes in components of working capital resulted in cash use of $5.4 million in the first three months of 2026 as compared to $81.7 million of cash provided in the first three months of 2025, resulting in an overall unfavorable change of $87.1 million.

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

This unfavorable change was partially offset by a favorable change in net accounts receivable—Westlake in the first three months of 2026.

Investing Activities

Net cash provided by investing activities in the first nine months of 2025 was $50.0 million as compared to net cash used for investing activities of $50.5 million in the first nine months of 2024, resulting in an overall favorable change of $100.5 million in investing cash flows.

During the first nine months of 2025, there were maturities of investments with Westlake of $120.0 million under the Investment Management Agreement, whereas during the first nine months of 2024, there were investments with Westlake of $15.0 million and no maturities under the Investment Management Agreement .

Capital expenditures increased to $70.0 million in the first nine months of 2025 as compared to $35.5 million in the first nine months of 2024 due to the Petro 1 turnaround.

Capital expenditures in the first nine 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 used for investing activities in the first three months of 2026 was $18.6 million as compared to net cash provided by investing activities of $14.0 million in the first three months of 2025, resulting in an overall unfavorable change of $32.6 million in investing cash flows.

During the first three months of 2026, there were investments of $13.0 million with Westlake and no maturities of inv estments with Westlake under the Investment Management Agreement, whereas during the first three months of 2025, there were no investments with Westlake and there were maturities of $30.0 million.

Capital expenditures decreased to $5.6 million in the first three months of 2026 as compared to $16.0 million in the first three months of 2025 due to the 2025 Petro 1 turnaround.

Capital expenditures in the first three months of 2026 and 2025 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 nine months of 2025 was $230.5 million as compared to net cash used for financing activities of $300.4 million in the first nine months of 2024.

The cash outflows in the first nine months of 2025 were related to distributions of $180.6 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 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.

Net cash used for financing activities in the first three months of 2026 was $91.6 million as compared to net cash used for financing activities of $68.5 million in the first three months of 2025.

The cash outflows in the first three months of 2026 were related to distributions of $75.0 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 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.

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 September 30, 2025.

No common units had been issued under the ATM Program as of March 31, 2026.

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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In order to fund non-annual turnaround expenditures, we cause OpCo to reserve an amount for turnaround costs during each twelve-month period designed to cover future turnaround activities.

Each of OpCo's ethylene production facilities requires turnaround maintenance approximately every five years.

Each of OpCo's ethylene production facilities requires turnaround maintenance approximately every five to eight years.

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

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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 October 28, 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 November 26, 2025 to unitholders of record as of November 10, 2025, which equates to a total amount of approximately $16.6 million per quarter, or approximately $66.5 million per year in aggregate, based on the number of common units outstanding on September 30, 2025.

On May 4, 2026, 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 June 1, 2026 to unitholders of record as of May 14, 2026, which equates to a total amount of approximately $16.6 million per quarter, or approximately $66.5 million per year in aggregate, based on the number of common units outstanding on March 31, 2026.

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 nine months ended September 30, 2025 and 2024.

Total capital expenditures for the nine months ended September 30, 2025 and 2024 were $70.0 million and $35.5 million, respectively.

No such funding was required by OpCo during the three months ended March 31, 2026 and 2025.

Total capital expenditures for the three months ended March 31, 2026 and 2025 were $5.6 million and $16.0 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 September 30, 2025, our cash and cash equivalents totaled $37.9 million.

As of March 31, 2026, our cash and cash equivalents totaled $44.3 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 $13.4 million of cash invested under the Investment Management Agreement at September 30, 2025.

The Partnership had $36.4 million of cash invested under the Investment Management Agreement at March 31, 2026.

OpCo Revolver

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The Applicable Margin under the OpCo Revolver is 1.75%.

As of September 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.

As of March 31, 2026, 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 September 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.

As of March 31, 2026, 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.

1 unchanged sentence

Recent Accounting Pronouncements

See Note 1 to the consolidated financial statements included in Item 1 of this Form 10-Q for a full description of recent accounting pronouncements, including expected date of adoption and estimated effect on results of operations and financial condition.

See Note 1, "Description of Business and Basis of Presentation," to the unaudited consolidated financial statements included in Item 1 of this Form 10-Q for a full description of recent accounting pronouncements, including expected date of adoption and estimated effect on results of operations and financial condition.

FORWARD-LOOKING STATEMENTS

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Forward-looking statements relate to matters such as:

• the ultimate timing, outcome and results of our strategies and plans;

• the amount of ethane that we are able to process, which could be adversely affected by, among other things, operating difficulties;

27 unchanged sentences

• 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;

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

• uncertainties associated with pandemic infectious diseases;

21 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