Net Income Per Common Limited Partner Unit |
Note 14. Net Income Per Common Limited Partner Unit Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses. Accordingly, the Partnership’s undistributed net income or losses is assumed to be allocated to the common unitholders and to the General Partner’s general partner interest. Common units outstanding as reported in the accompanying consolidated financial statements at September 30, 2022 and December 31, 2021, respectively, excludes 47,360 and 42,336 common units held on behalf of the Partnership pursuant to its repurchase program. These units are not deemed outstanding for purposes of calculating net income per common limited partner unit (basic and diluted). For all periods presented below, the Partnership’s preferred units are not potentially dilutive securities based on the nature of the conversion feature. The following table provides a reconciliation of net income and the assumed allocation of net income to the common limited partners (after deducting amounts allocated to preferred unitholders) for purposes of computing net income per common limited partner unit for the periods presented (in thousands, except per unit data): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | | | | | | Common | | General | | | | | | | | | Common | | General | | | | | | | | | | Limited | | Partner | | | | | | | | | Limited | | Partner | | | | | Numerator: | | Total | | Partners | | Interest | | IDRs | | | Total | | Partners | | Interest | | IDRs | | Net income | | $ | 111,439 | | $ | 109,412 | | $ | 2,027 | | $ | — | | | $ | 33,637 | | $ | 32,644 | | $ | 993 | | $ | — | | Declared distribution | | $ | 22,680 | | $ | 21,247 | | $ | 153 | | $ | 1,280 | | | $ | 20,453 | | $ | 19,547 | | $ | 138 | | $ | 768 | | Assumed allocation of undistributed net income | | | 88,759 | | | 88,165 | | | 594 | | | — | | | | 13,184 | | | 13,097 | | | 87 | | | — | | Assumed allocation of net income | | $ | 111,439 | | $ | 109,412 | | $ | 747 | | $ | 1,280 | | | $ | 33,637 | | $ | 32,644 | | $ | 225 | | $ | 768 | | Less: Preferred limited partner interest in net income | | | | | | 3,463 | | | | | | | | | | | | | 3,463 | | | | | | | | Net income attributable to common limited partners | | | | | $ | 105,949 | | | | | | | | | | | | $ | 29,181 | | | | | | | | Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | Basic weighted average common units outstanding | | | | | | 33,917 | | | | | | | | | | | | | 33,897 | | | | | | | | Dilutive effect of phantom units | | | | | | 91 | | | | | | | | | | | | | 190 | | | | | | | | Diluted weighted average common units outstanding | | | | | | 34,008 | | | | | | | | | | | | | 34,087 | | | | | | | | Basic net income per common limited partner unit | | | | | $ | 3.12 | | | | | | | | | | | | $ | 0.86 | | | | | | | | Diluted net income per common limited partner unit | | | | | $ | 3.12 | | | | | | | | | | | | $ | 0.86 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2022 | | | Nine Months Ended September 30, 2021 | | | | | | | Common | | General | | | | | | | | | Common | | General | | | | | | | | | | Limited | | Partner | | | | | | | | | Limited | | Partner | | | | | Numerator: | | Total | | Partners | | Interest | | IDRs | | | Total | | Partners | | Interest | | IDRs | | Net income | | $ | 304,731 | | $ | 299,361 | | $ | 5,370 | | $ | — | | | $ | 41,479 | | $ | 38,898 | | $ | 2,581 | | $ | — | | Declared distribution | | $ | 65,813 | | $ | 62,041 | | $ | 444 | | $ | 3,328 | | | $ | 61,359 | | $ | 58,641 | | $ | 414 | | $ | 2,304 | | Assumed allocation of undistributed net income (loss) | | | 238,918 | | | 237,320 | | | 1,598 | | | — | | | | (19,880) | | | (19,743) | | | (137) | | | — | | Assumed allocation of net income | | $ | 304,731 | | $ | 299,361 | | $ | 2,042 | | $ | 3,328 | | | $ | 41,479 | | $ | 38,898 | | $ | 277 | | $ | 2,304 | | Less: Preferred limited partner interest in net income | | | | | | 10,389 | | | | | | | | | | | | | 8,746 | | | | | | | | Net income attributable to common limited partners | | | | | $ | 288,972 | | | | | | | | | | | | $ | 30,152 | | | | | | | | Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | Basic weighted average common units outstanding | | | | | | 33,932 | | | | | | | | | | | | | 33,934 | | | | | | | | Dilutive effect of phantom units | | | | | | 126 | | | | | | | | | | | | | 291 | | | | | | | | Diluted weighted average common units outstanding | | | | | | 34,058 | | | | | | | | | | | | | 34,225 | | | | | | | | Basic net income per common limited partner unit | | | | | $ | 8.52 | | | | | | | | | | | | $ | 0.89 | | | | | | | | Diluted net income per common limited partner unit | | | | | $ | 8.48 | | | | | | | | | | | | $ | 0.88 | | | | | | | |
The board of directors of the General Partner declared the following quarterly cash distributions on its common units: | | | | | | | | | | Per Unit Cash | | | Distribution Declared for the | | Cash Distribution Declaration Date | | Distribution Declared | | | Quarterly Period Ended | | April 26, 2022 | | $ | 0.5950 | | | March 31, 2022 | | July 26, 2022 | | $ | 0.6050 | | | June 30, 2022 | | October 25, 2022 | | $ | 0.6250 | | | September 30, 2022 | |
The board of directors of the General Partner declared the following quarterly cash distributions on the Series A Preferred Units and the Series B Preferred Units: | | | | | | | | | | | | | Series A Preferred Units | | Series B Preferred Units | | | | | | | Per Unit Cash | | Per Unit Cash | | Distribution Declared for the | | | Cash Distribution Declaration Date | | Distribution Declared | | Distribution Declared | | Quarterly Period Covering | | | April 18, 2022 | | $ | 0.609375 | | $ | 0.593750 | | February 15, 2022 - May 14, 2022 | | | July 18, 2022 | | $ | 0.609375 | | $ | 0.593750 | | May 15, 2022 - August 14, 2022 | | | October 17, 2022 | | $ | 0.609375 | | $ | 0.593750 | | August 15, 2022 - November 14, 2022 | | |
See Note 12, “Partners’ Equity and Cash Distributions” for further information.
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