NET INCOME PER COMMON UNIT

Basic net income per common unit is determined pursuant to the two-class method. Under this method, all earnings are allocated to our limited partners and participating securities based on their respective rights to receive distributions earned during the period. Participating securities include our general partner interest and restricted units awarded under our long-term incentive plan. We compute basic net income per common unit by dividing net income attributable to common units by the weighted-average number of common units outstanding during the period.

The following table details the calculation of net income per common unit:



	Three Months Ended March 31,
	2018		2017
	(Thousands of Dollars, Except Unit and Per Unit Data)
Net income attributable to NuStar Energy L.P.	$	126,133	$	57,940
Less: Distributions to preferred limited partners	15,990		4,813
Less: Distributions to general partner (including incentive distribution rights)	1,141		15,255
Less: Distributions to common limited partners	55,916		101,913
Less: Distribution equivalent rights to restricted units	445		715
Distributions less than (in excess of) earnings	$	52,641	$	(64,756	)

Net income attributable to common units:
Distributions to common limited partners	$	55,916	$	101,913
Allocation of distributions less than (in excess of) earnings	51,148		(63,461		)
Total	$	107,064	$	38,452

Basic weighted-average common units outstanding	93,181,781		78,642,888

Basic net income per common unit	$	1.15	$	0.49