Net Income Per Common Unit

9 Months Ended

Sep. 30, 2024

Note 14. NET INCOME PER COMMON UNIT

The following table provides a reconciliation of net income and weighted-average units used in computing basic and diluted net income per common unit for the following periods (in thousands, except unit and per unit amounts):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Numerator:
Distributions paid on common units	$	19,975		$	19,934		$	59,880		$	59,777
Allocation of distributions in excess of net income		(9,849	)		(8,271	)		(56,199	)		(35,773	)
Limited partners’ interest in net income - basic and diluted	$	10,126		$	11,663		$	3,681		$	24,004
Denominator:
Weighted-average common units outstanding - basic		38,041,815			37,966,474			38,021,173			37,953,348
Adjustment for phantom and phantom performance units (a)		159,018			172,784			160,511			173,044
Weighted-average common units outstanding - diluted		38,200,833			38,139,258			38,181,684			38,126,392
Net income per common unit - basic	$	0.27		$	0.31		$	0.10		$	0.63
Net income per common unit - diluted	$	0.27		$	0.31		$	0.10		$	0.63

Distributions paid per common unit	$	0.5250		$	0.5250		$	1.5750		$	1.5750
Distributions declared (with respect to each respective period) per common unit	$	0.5250		$	0.5250		$	1.5750		$	1.5750

(a)

For the three and nine months ended September 30, 2024 and 2023, respectively, 1,245,117 and 1,176,998 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.

Distributions

Distribution activity for 2024 is as follows:


Quarter Ended	Record Date	Payment Date	Cash Distribution (per unit)		Cash Distribution (in thousands)
December 31, 2023	February 2, 2024	February 9, 2024	$	0.5250	$	19,941
March 31, 2024	May 3, 2024	May 10, 2024	$	0.5250	$	19,964
June 30, 2024	August 2, 2024	August 9, 2024	$	0.5250	$	19,975
September 30, 2024	November 4, 2024	November 13, 2024	$	0.5250	$	19,975

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.