NET INCOME PER COMMON UNIT

6 Months Ended

Jun. 30, 2013

NET INCOME PER COMMON UNIT

NET INCOME PER COMMON UNIT

NOTE 7 NET INCOME PER COMMON UNIT

Net income per common unit is computed by dividing net income, after deduction of the General Partner’s allocation, by the weighted average number of common units outstanding. The General Partner’s allocation is equal to an amount based upon the General Partner’s effective two percent general partner interest, plus an amount equal to incentive distributions. Incentive distributions are paid to the General Partner if quarterly cash distributions on the common units exceed levels specified in the Partnership Agreement.

Net income per common unit was determined as follows:

	Three months ended		Six months ended
(unaudited)	June 30,		June 30,
(millions of dollars)	2013	2012	2013	2012
Net income	23	33	52	72
Net income allocated to General Partner	-	(1)	(1)	(2)
Net income allocable to common units	23	32	51	70
Weighted average common units outstanding (millions) – basic and diluted	57.4	53.5	55.4	53.5
Net income per common unit – basic and diluted	$0.40	$0.60	$0.92	$1.31