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Net Income per Unit
 9 Months Ended
Sep. 30, 2025
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, 2025 and 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,
2025202420252024
Net income$45,560 $33,674 $129,168 $107,380 
Less: Limited partners' distribution declared on common units59,898 51,263 178,830 147,794 
Undistributed net loss$(14,338)$(17,589)$(49,662)$(40,414)
Limited partners' earnings on common units:
Distributions$59,898 $51,263 $178,830 $147,794 
Allocation of undistributed net loss(14,338)(17,589)(49,662)(40,414)
Total limited partners' earnings on common units$45,560 $33,674 $129,168 $107,380 
Weighted average limited partner units outstanding, basic53,467,306 47,109,008 53,505,419 46,248,003 
Dilutive effect of unvested phantom units52,266 26,093 35,376 21,420 
Weighted average limited partner units outstanding, diluted53,519,572 47,135,101 53,540,795 46,269,423 
Net income per limited partner unit:
Basic$0.85 $0.71 $2.41 $2.32 
Diluted (1)
$0.85 $0.71 $2.41 $2.32 
1) There were 6,863 and 23,824 anti-dilutive common unit equivalents excluded from the diluted earnings per unit calculation during the three and nine months ended September 30, 2025, respectively. 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.