Equity

We had 9,353,240 common limited partner units held by the public outstanding as of December 31, 2013. Additionally, as of December 31, 2013, Delek owned a 60.0% limited partner interest in us, consisting of 2,799,258 common limited partner units and 11,999,258 subordinated limited partner units as well as a 96.6% interest in our general partner, which owns the entire 2.0% general partner interest consisting of 492,893 general partner units. In accordance with our partnership agreement, Delek's subordinated units may convert to common units once specified distribution targets and other requirements have been met.

The table below summarizes the changes in the number of units outstanding through December 31, 2013 (in units). There were no units outstanding prior to our initial public offering in November 2012.



	Common - Public	Common - Delek	Subordinated	General Partner	Total
Units issued in initial public offering in November 2012	9,200,000	2,799,258	11,999,258	489,766	24,488,282
Balance at December 31, 2012	9,200,000	2,799,258	11,999,258	489,766	24,488,282
GP units issued to maintain 2% interest	—	—	—	3,127	3,127
Unit-based compensation awards ⁽¹⁾	153,240	—	—	—	153,240
Balance at December 31, 2013	9,353,240	2,799,258	11,999,258	492,893	24,644,649

⁽¹⁾ Unit-based compensation awards are presented net of 31,083 units withheld for taxes.

Issuance of Additional Securities

Our partnership agreement authorizes us to issue an unlimited number of additional partnership securities for the consideration and on the terms and conditions determined by our general partner without the approval of the unitholders. Costs associated with the issuance of securities are allocated to all unitholders' capital accounts based on their ownership interest at the time of issuance.

Allocations of Net Income

Our partnership agreement contains provisions for the allocation of net income and loss to the unitholders and our general partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100% to our general partner.

The calculation of net income allocated to the partners is as follows (in thousands, except per unit amounts):



	Year Ended December 31,
	2013			2012
Net income attributable to partners	$	47,830		$	8,410
General partner's ownership interest	2.0		%	2.0		%
Less: General partner's allocated interest in net income	957			168
Limited partners' interest in net income:	46,873			8,242
Limited partners' allocated interest in net income - (common)	$	23,490		$	4,121
Limited partners' allocated interest in net income - (subordinated)	$	23,383		$	4,121

Percentage Allocations of Available Cash from Operating Surplus

The following table illustrates the percentage allocations of available cash from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of our general partner and the unitholders in any available cash from operating surplus we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution per Unit Target Amount.” The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner include its 2.0% general partner interest and assume that our general partner has contributed any additional capital necessary to maintain its general partner interest, our general partner has not transferred its incentive distribution rights and that there are no arrearages on common units.



	Total Quarterly	Marginal Percentage
	Distribution per Unit	Interest in Distributions
	Target Amount	Unitholders		General Partner
Minimum quarterly distribution	$0.37500	98.0	%	2.0	%
First target distribution	above $0.37500 up to $0.43125	98.0	%	2.0	%
Second target distribution	above $0.43125 up to $0.46875	85.0	%	15.0	%
Third target distribution	above $0.46875 up to $0.56250	75.0	%	25.0	%
Thereafter	above $0.56250	50.0	%	50.0	%

Cash distributions

Our partnership agreement sets forth the calculation to be used to determine the amount and priority of the minimum cash distributions that the common and subordinated unitholders and general partner will receive. Our minimum quarterly distributions are declared subsequent to quarter end. The table below summarizes the minimum quarterly distributions related to our quarterly financial results:



Quarter Ended	Total Quarterly Distribution Per Unit	Total Quarterly Distribution Per Unit, Annualized	Total Cash Distribution (in thousands)	Date of Distribution	Unitholders Record Date
December 31, 2013	$0.415	$1.66	$10,228	February 13, 2014	February 4, 2014
September 30, 2013	$0.405	$1.62	$9,933	November 14, 2013	November 7, 2013
June 30, 2013	$0.395	$1.58	$9,687	August 13, 2013	August 6, 2013
March 31, 2013	$0.385	$1.54	$9,428	May 15, 2013	May 7, 2013
December 31, 2012 (from November 7, 2012) ⁽¹⁾	$0.224	$0.90	$5,486	February 14, 2013	February 6, 2013

⁽¹⁾ The quarterly cash distribution for the three months ended December 31, 2012 was calculated as the minimum quarterly cash distribution of $0.375 per unit per quarter, or $1.50 per unit on an annualized basis, prorated for the period beginning November 7, 2012, the date the Partnership commenced operations.

The allocation of total quarterly cash distributions to general and limited partners is as follows for the years ended December 31, 2013 and 2012. Our distributions are declared subsequent to quarter end. Therefore, the table below represents total cash distributions applicable to the period in which the distributions are earned (in thousands, except per unit amounts):



	Year Ended December 31,
	2013		2012
General partner's distributions	$	785	$	110

Limited partners' distributions:
Common	19,292		2,688
Subordinated	19,199		2,688
Total cash distributions	$	39,276	$	5,486

Cash distributions per unit	$	1.600	$	0.224