5. NET INCOME (LOSS) PER UNIT

The Partnership's condensed consolidated statements of operations were recast to reflect the Azure System for periods prior to March 1, 2015 in accordance with applicable accounting and financial reporting guidance. The Azure System had no units outstanding prior to the Transaction Date. Therefore, net income per unit for the three months ended March 31, 2015 is presented for the period March 1, 2015 to March 31, 2015, which is the period the Partnership's results of operations are included within these condensed consolidated financial statements and the period in which the Partnership's units were reflected as outstanding within these condensed consolidated financial statements.

The Partnership’s net income (loss) for the three months ended March 31, 2016 and the period March 1, 2015 to March 31, 2015 is allocated to the General Partner and our limited partners in accordance with their respective ownership percentages and, when applicable, giving effect to the IDR Units. The ETG System's net losses of $3.1 million have been allocated to the General Partner for the period January 1, 2015 to March 31, 2015 as this period preceded the contribution date of August 6, 2015. Basic and diluted net income (loss) per unit is calculated by dividing the partner’s interest in net income (loss) by the weighted average number of units outstanding during the period. There were no units or awards issued or outstanding during the three months ended March 31, 2016 and the period March 1, 2015 to March 31, 2015 that would be considered dilutive to the net income (loss) per unit calculation, and, therefore, basic and diluted net income (loss) per unit are the same for the periods presented.

For the three months ended March 31, 2016, net loss was allocated to the unvested phantom unit awards granted to our executive officers and certain employees for the earnings per unit calculation. Relevant accounting guidance requires unvested unit-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities for earnings per unit calculations.

The following table illustrates the Partnership’s calculation of net income (loss) per unit for common and subordinated units for the periods presented:


	Three Months Ended		March 1, 2015 to
In thousands, except per unit data	March 31, 2016		March 31, 2015
Net loss	$	(113,571)	$	(4,380)
Less amounts attributable to the General Partner:
Net loss of the Legacy System for the period January 1, 2015 to February 28, 2015		—		(1,666)
Net loss of the ETG System for the period January 1, 2015 to March 31, 2015		—		(3,111)
General Partner interest		(2,192)		8
Net loss attributable to the General Partner		(2,192)		(4,769)
Less: Net loss attributable to unvested phantom units		(2,349)		—
Net income (loss) attributable to common and subordinated units	$	(109,030)	$	389

Net income (loss) per common and subordinated units - basic and diluted	$	(5.00)	$	0.02

Weighted average units outstanding - basic and diluted
Common units (1)		13,061,208		9,195,356
Subordinated units		8,724,545		8,724,545
Total		21,785,753		17,919,901

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(1) As of April 1, 2015 the outstanding common units were 11,124,953 per the terms of the AES Agreement. See Note 15.