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Net Income Per Unit

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Income Per Unit

15. Net Income Per Unit

The general partner’s and common unit holders’ interests in net income are calculated as if all net income for periods after April 4, 2007, were distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash (Note 13), which is a contractually defined term that generally means all cash on hand at the end of each quarter after establishment of cash reserves determined by the Partnership’s board of directors to provide for the proper resources for the Partnership’s business. Unlike available cash, net income is affected by non-cash items. The Partnership follows the guidance relating to the Application of the Two-Class Method and its application to Master Limited Partnerships, which considers whether the incentive distributions of a master limited partnership represent a participating security when considered in the calculation of earnings per unit under the Two-Class Method.

The Partnership also considers whether the Partnership Agreement contains any contractual limitations concerning distributions to the IDRs that would impact the amount of earnings to allocate to the IDRs for each reporting period.

Under the Partnership Agreement, the holder of the IDRs in the Partnership, which is currently CGP, assuming that there are no cumulative arrearages on common unit distributions, has the right to receive an increasing percentage of cash distributions (Note 13).

For the year ended December 31, 2023, the Partnership excluded the effect of 495,867 non-vested unit awards, from which 247,933 vested on December 31, 2023, in calculating dilutive EPU for its common unitholders as they were anti-dilutive.

For the year ended December 31, 2022, the Partnership excluded the effect of 745,769 non-vested unit awards, from which 249,902 vested on December 31, 2022, in calculating dilutive EPU for its common unitholders as they were anti-dilutive.

For the year ended December 31, 2021, the Partnership excluded the effect of 412,916 units, which vested on December 31, 2021, as they were anti-dilutive.

15. Net Income Per Unit - Continued

The non-vested units are participating securities because they received distributions from the Partnership and these distributions did not have to be returned to the Partnership if the non-vested units were forfeited by the grantee.

The Partnership’s net income for the years ended December 31, 2023, 2022 and 2021 did not exceed the First Target Distribution Level, and as a result, the assumed distribution of net income did not result in the use of increasing percentages to calculate CGP’s interest in net income.

The two-class method used to calculate EPU from continuing operations is as follows:

BASIC AND DILUTED		2023			2022			2021
Numerators
Partnership’s net income	$	47,208		$	125,421		$	98,178
Less:
General Partner’s interest in Partnership’s net income		680			2,157			1,790
Partnership’s net income allocable to unvested units		929			3,662			2,053
Common unit holders’ interest in Partnership’s net income	$	45,599		$	119,602		$	94,335
Denominators
Weighted average number of common units outstanding, basic and diluted		21,182,471			19,325,030			18,342,413
Net income per common unit:
Basic and Diluted (in United States Dollars)	$	2.15		$	6.19		$	5.14