Net Income Per Limited Partner Unit

6 Months Ended

Jun. 30, 2022

Note 15. 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 by the weighted-average number of outstanding common units.

We applied the if-converted method to the preferred membership interests in accordance with Accounting Standards Update No. 2020-06 for purposes of computing diluted earnings per unit; however, the preferred membership interests are antidilutive.

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,
	2022			2021			2022			2021
Numerator:
Distributions paid	$	19,904		$	19,884		$	39,800		$	39,765
Allocation of distributions in excess of net income		(6,501	)		(15,095	)		(21,350	)		(38,943	)
Limited partners’ interest in net income - basic and diluted	$	13,403		$	4,789		$	18,450		$	822
Denominator:
Weighted-average common units outstanding - basic		37,912,710			37,874,868			37,906,463			37,872,079
Adjustment for phantom and phantom performance units (a)		44,724			30,142			45,003			30,146
Weighted-average common units outstanding - diluted		37,957,434			37,905,010			37,951,466			37,902,225
Net income per common unit - basic and diluted	$	0.35		$	0.13		$	0.49		$	0.02

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

(a) 1,076,769 and 553,257 potentially dilutive units related to the preferred membership interests were excluded from the calculation of diluted earnings per unit because including them would have been antidilutive for the three and six months ended June 30, 2022, respectively.

Distributions

Distribution activity for 2022 is as follows:

Quarter Ended

Record Date

Payment Date

Cash
Distribution
(per unit)

Cash
Distribution
(in thousands)

December 31, 2021

February 3, 2022

February 10, 2022

0.5250

19,896

March 31, 2022

May 3, 2022

May 11, 2022

0.5250

19,904

June 30, 2022

August 3, 2022

August 10, 2022

0.5250

19,913

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.