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Net Income Per Common Limited Partner Unit

12 Months Ended

Dec. 31, 2025

Net Income Per Common Limited Partner Unit

Net Income Per Common Limited Partner Unit

Note 22. Net Income Per Common Limited Partner Unit

Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses. Accordingly, the Partnership’s undistributed net income or losses is assumed to be allocated to the common unitholders and to the General Partner’s general partner interest.

Common units outstanding as reported in the accompanying consolidated financial statements at December 31, 2025 and 2024 excludes 230,273 and 327,307 common units, respectively, held on behalf of the Partnership pursuant to its repurchase program (see Note 19). These units are not deemed outstanding for purposes of calculating net income per common limited partner unit (basic and diluted). For all years presented below, the Partnership’s preferred units are not potentially dilutive securities based on the nature of the conversion feature.

The following table provides a reconciliation of net income and the assumed allocation of net income to the common limited partners (after deducting amounts allocated to preferred unitholders) for purposes of computing net income per common limited partner unit for the years presented (in thousands, except per unit data):


		Year Ended December 31, 2025
					Common			General
					Limited			Partner
Numerator:		Total			Partners			Interest			IDRs
Net income		$	97,977		$	79,218		$	18,759		$	—
Declared distribution		$	121,246		$	102,327		$	816		$	18,103
Assumed allocation of undistributed net loss			(23,269)			(23,109)			(160)			—
Assumed allocation of net income		$	97,977		$	79,218		$	656		$	18,103
Less: Preferred limited partner interest in net income						7,124
Net income attributable to common limited partners					$	72,094
Denominator:
Basic weighted average common units outstanding						33,871
Dilutive effect of phantom units						346
Diluted weighted average common units outstanding						34,217
Basic net income per common limited partner unit					$	2.13
Diluted net income per common limited partner unit					$	2.11


		Year Ended December 31, 2024
					Common			General
					Limited			Partner
Numerator:		Total			Partners			Interest			IDRs
Net income		$	110,327		$	94,983		$	15,344		$	—
Declared distribution		$	113,959		$	98,588		$	766		$	14,605
Assumed allocation of undistributed net loss			(3,632)			(3,605)			(27)			—
Assumed allocation of net income		$	110,327		$	94,983		$	739		$	14,605
Less: Preferred limited partner interest in net income						9,575
Less: Redemption of Series A preferred limited partner units						2,634
Net income attributable to common limited partners					$	82,774
Denominator:
Basic weighted average common units outstanding						33,840
Dilutive effect of phantom units						499
Diluted weighted average common units outstanding						34,339
Basic net income per common limited partner unit					$	2.45
Diluted net income per common limited partner unit					$	2.41


		Year Ended December 31, 2023
					Common			General
					Limited			Partner
Numerator:		Total			Partners			Interest			IDRs
Net income		$	152,506		$	142,598		$	9,908		$	—
Declared distribution		$	101,869		$	92,298		$	685		$	8,886
Assumed allocation of undistributed net income			50,637			50,300			337			—
Assumed allocation of net income		$	152,506		$	142,598		$	1,022		$	8,886
Less: Preferred limited partner interest in net income						14,559
Net income attributable to common limited partners					$	128,039
Denominator:
Basic weighted average common units outstanding						33,970
Dilutive effect of phantom units						69
Diluted weighted average common units outstanding						34,039
Basic net income per common limited partner unit					$	3.77
Diluted net income per common limited partner unit					$	3.76

See Note 20, “Partners’ Equity, Allocations and Cash Distributions” for information on declared distributions.