Net Income Per Limited Partner Unit

6 Months Ended

Jun. 30, 2021

Note 14. NET INCOME PER LIMITED PARTNER UNIT

We 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. On February 6, 2020, we closed on the Equity Restructuring Agreement that eliminated the IDRs.

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 June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Numerator:
Distributions paid	$	19,916		$	19,881		$	39,828		$	37,992
Allocation of distributions in excess of net income		(15,127	)		(14,651	)		(39,006	)		39,166
Limited partners’ interest in net income - basic and diluted	$	4,789		$	5,230		$	822		$	77,158
Denominator:
Weighted-average limited partnership units outstanding - basic		37,874,868			37,736,329			37,872,079			36,865,651
Adjustment for phantom and phantom performance units		30,142			1,821			30,146			1,844
Weighted-average limited partnership units outstanding - diluted		37,905,010			37,738,150			37,902,225			36,867,495
Net income per limited partnership unit - basic and diluted	$	0.13		$	0.14		$	0.02		$	2.09

Distributions paid per common unit	$	0.5250		$	0.5250		$	1.0500		$	1.0500
Distributions declared (with respect to each respective period) per common unit	$	0.5250		$	0.5250		$	1.0500		$	1.0500

Distributions

Distribution activity for 2021 is as follows:

Quarter Ended

Record Date

Payment Date

Cash

Distribution

(per unit)

Cash

Distribution

(in thousands)

December 31, 2020

February 2, 2021

February 9, 2021

0.5250

19,912

March 31, 2021

May 4, 2021

May 11, 2021

0.5250

19,916

June 30, 2021

August 3, 2021

August 10, 2021

0.5250

19,924

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.