Net Income per Unit

9 Months Ended

Sep. 30, 2013

Net income per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners' interest in net income, after deducting any incentive distributions, by the weighted-average number of outstanding common and subordinated units. Our net income is allocated to the limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to SUSS, the holder of the IDRs, pursuant to our partnership agreement. Net income per unit is only calculated for the Partnership after the IPO as no units were outstanding prior to September 25, 2012. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.

In addition to the common and subordinated units, we have also identified the IDRs as participating securities and use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive units on our common units, consisting of nonvested phantom units. Basic and diluted net income per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding.

We also disclose limited partner units issued and outstanding. A reconciliation of the numerators and denominators of the basic and diluted per unit computations is as follows:



	Three Months Ended		Nine Months Ended
	September 30, 2013		September 30, 2013
	(in thousands, except units and per unit amounts)
Net income	$	9,597	$	27,504
Less: General partner's interest in net income	—		—
Limited partners' interest in net income	$	9,597	$	27,504
Weighted average limited partner units outstanding:
Common - basic	10,963,671		10,947,514
Common - equivalents	26,970		21,845
Common - diluted	10,990,641		10,969,359
Subordinated - SUSS (basic and diluted)	10,939,436		10,939,436
Net income per limited partner unit:
Common - basic	$	0.44	$	1.26
Common - diluted	$	0.43	$	1.25
Subordinated - SUSS (basic and diluted)	$	0.44	$	1.26



	Three Months Ended		Nine Months Ended
	September 30, 2012		September 30, 2012
	(in thousands, except units and per unit amounts)
Net income	$	3,617	$	8,994
Less: Predecessor income prior to initial public offering on September 25, 2012	3,043		8,420
Limited partners' interest in net income	$	574	$	574

Net income per limited partner unit:
Common	$	0.03	$	0.03
Subordinated	$	0.03	$	0.03
Limited partner units outstanding:
Common units - public	10,925		10,925,000
Common units - affiliated	14.436		14,436
Subordinated units - affiliated	10,939.436		10,939,436

- Definition

The entire disclosure for earnings per share.

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