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Net Income Per Limited Partner Unit | 3 Months Ended
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Mar. 31, 2020
Earnings Per Share [Abstract] |
Net Income Per Limited Partner Unit | Note 15. NET INCOME PER LIMITED PARTNER UNIT In addition to the common units, we have identified the IDRs as participating securities and compute income per unit using the two-class method under which any excess of distributions declared over net income shall be allocated to the partners based on their respective sharing of income as specified in the Partnership Agreement. Net income per unit applicable to limited partners is computed by dividing the limited partners’ interest in net income, after deducting the IDRs, by the weighted-average number of outstanding common units. Since February 6, 2020, our common units are the only participating securities. See “Equity Restructuring” below for additional information. The following table provides a reconciliation of net income and weighted-average units used in computing basic and diluted net income per limited partner unit for the following periods (in thousands, except unit and per unit amounts):
|  | Three Months Ended March 31, |
|  | 2020 |  |  | 2019 |
Numerator: |  |  |  |  |  |  |  |
Distributions paid |  | $ | 18,111 |  |  | $ | 18,099 |
Allocation of distributions in excess of net income |  |  | 53,817 |  |  |  | (18,020 | )
Limited partners’ interest in net income - basic and diluted |  | $ | 71,928 |  |  | $ | 79 |
Denominator: |  |  |  |  |  |  |  |
Weighted-average limited partnership units outstanding - basic |  |  | 35,994,972 |  |  |  | 34,444,113 |
Adjustment for phantom and phantom performance units |  |  | 961 |  |  |  | 12,352 |
Weighted-average limited partnership units outstanding - diluted |  |  | 35,995,933 |  |  |  | 34,456,465 |
Net income per limited partnership unit - basic and diluted |  | $ | 2.00 |  |  | $ | 0.00 |
Distributions paid per common unit |  | $ | 0.5250 |  |  | $ | 0.5250 |
Distributions declared (with respect to each respective period) per common unit |  | $ | 0.5250 |  |  | $ | 0.5250 |
Distributions Distribution activity for 2020 is as follows:
Quarter Ended |  | Record Date |  | Payment Date |  | Cash Distribution (per unit) |  |  | Cash Distribution (in thousands) |
December 31, 2019 |  | February 3, 2020 |  | February 10, 2020 |  | $ | 0.5250 |  |  | $ | 18,111 |
March 31, 2020 |  | May 5, 2020 |  | May 12, 2020 |  |  | 0.5250 |  |  |  | 19,881 |
The amount of any distribution is subject to the discretion of the Board, which may modify or revoke our cash distribution policy at any time. Our Partnership Agreement does not require us to pay any distributions. As such, there can be no assurance we will continue to pay distributions in the future. Equity Restructuring On January 15, 2020, the Partnership entered into an Equity Restructuring Agreement (the “Equity Restructuring Agreement”) with the General Partner and Dunne Manning CAP Holdings II LLC (“DM CAP Holdings”), a wholly owned subsidiary of DMP. Pursuant to the Equity Restructuring Agreement, all of the outstanding IDRs of the Partnership, all of which were held by DM CAP Holdings, were cancelled and converted into 2,528,673 newly-issued common units representing limited partner interests in the Partnership based on a value of $45 million and calculated using the volume weighted average trading price of $17.80 per common unit for the 20-day period ended on January 8, 2020, five business days prior to the execution of the Equity Restructuring Agreement (the “20-day VWAP”). This transaction closed on February 6, 2020, after the record date for the distribution payable on the Partnership’s common units with respect to the fourth quarter of 2019. Simultaneously with the closing of the equity restructuring, the General Partner executed and delivered the Second Amended and Restated Agreement of Limited Partnership of the Partnership (the “Second Amended and Restated Partnership Agreement”) to give effect to the Equity Restructuring Agreement. The Second Amended and Restated Partnership Agreement amended and restated the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of October 30, 2012, as amended, in its entirety to, among other items, (i) reflect the cancellation of the IDRs and (ii) eliminate certain legacy provisions that no longer apply, including provisions related to the IDRs and subordinated units of the Partnership that were formerly outstanding. The terms of the Equity Restructuring Agreement were approved by the independent conflicts committee of the Board.

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- Definition The entire disclosure for earnings per share. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -URI http://asc.fasb.org/topic&trid=2144383 + Details
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