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Net Income per Unit
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Income per Unit Net Income per Unit
We use the two-class method when calculating the net income per unit applicable to limited partners, because we have more than one participating class of securities. Our participating securities consist of common units and preferred units.
The two-class method is based on the weighted-average number of common units outstanding during the period. Basic net income per unit applicable to common limited partners is computed by dividing limited partners’ interest in net income allocated to participating securities by the weighted-average number of outstanding common units. Undistributed earnings are allocated to our preferred unitholders and limited partners based on their respective ownership interests. During a period of net loss or negative undistributed earnings, the two-class method is not applicable.
Diluted net income per unit applicable to common limited partners includes the effects of potentially dilutive units on our common units. As of September 30, 2024, the only potentially dilutive units outstanding consist of unvested phantom units.
The calculation of net income per unit is as follows (in thousands, except unit and per unit amounts):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net income attributable to partners$33,674 $34,825 $107,380 $104,088 
Less: Limited partners' distribution declared on common units51,263 45,112 147,794 134,216 
Undistributed net loss$(17,589)$(10,287)$(40,414)$(30,128)
Limited partners' earnings on common units:
Distributions$51,263 $45,112 $147,794 $134,216 
Allocation of undistributed net loss(17,589)(10,287)(40,414)(30,128)
Total limited partners' earnings on common units$33,674 $34,825 $107,380 $104,088 
Weighted average limited partner units outstanding, basic47,109,008 43,588,316 46,248,003 43,578,636 
Dilutive effect of unvested phantom units26,093 16,476 21,420 19,911 
Weighted average limited partner units outstanding, diluted47,135,101 43,604,792 46,269,423 43,598,547 
Net income per limited partner unit:
Basic$0.71 $0.80 $2.32 $2.39 
Diluted (1)
$0.71 $0.80 $2.32 $2.39 
(1) There were 24,506 anti-dilutive common unit equivalents excluded from the diluted earnings per unit calculation during both three and nine months ended September 30, 2024. There were 48,597 and 35,519 anti-dilutive common unit equivalents excluded from the diluted earnings per unit calculation during the three and nine months ended September 30, 2023, respectively.