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 loss per unit for the nine months ended September 30, 2015 is presented for the period March 1, 2015 to September 30, 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 and nine months periods ended September 30, 2016, the three months ended September 30, 2015 and the period March 1, 2015 to September 30, 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 $5.8 million have been allocated to the General Partner for the period January 1, 2015 to June 30, 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 and nine months periods ended September 30, 2016, the three months ended September 30, 2015 and the period March 1, 2015 to September 30, 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 and nine months periods ended September 30, 2016 and 2015, net income (loss) was allocated to the unvested phantom unit awards granted to our executive officers and certain employees for the earnings (loss) per unit calculation. Relevant accounting guidance requires that 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				Nine Months Ended		March 1, 2015 to
In thousands, except per unit data	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Net income (loss)	$	14,364	$	(216,434)	$	(107,598)	$	(221,817)
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 six months ended June 30, 2015		—		—		—		(5,816)
General Partner interest		527		(4,177)		(1,977)		(4,172)
Net income (loss) attributable to the General Partner		527		(4,177)		(1,977)		(11,654)
Less net income (loss) attributable to unvested phantom units		258		(3,562)		(2,377)		(3,562)
Net income (loss) attributable to common and subordinated units	$	13,579	$	(208,695)	$	(103,244)	$	(206,601)

Net income (loss) per common and subordinated unit - basic and diluted	$	1.21	$	(9.64)	$	(7.02)	$	(10.50)

Weighted average units outstanding - basic and diluted
Common units		11,266,340		12,927,483		11,815,489		10,947,018
Subordinated units		—		8,724,545		2,897,568		8,724,545
Total		11,266,340		21,652,028		14,713,057		19,671,563