Net Income (Loss) per Common Unit

12 Months Ended

Dec. 31, 2021

NET INCOME PER COMMON UNIT

Net income per common unit for a given period is based on the distributions that will be made to the unitholders with respect to the period plus an allocation of undistributed net income (loss) based on provisions of the partnership agreement, divided by the weighted average number of common units outstanding. Distributions paid by us are presented on the Consolidated Statements of Partners’ Equity. On January 28, 2022, we declared a $0.700 distribution per common unit and the related distribution to our general partner and IDR holders that was paid on February 14, 2022 to unitholders of record as of February 7, 2022 for the period from October 1, 2021 to December 31, 2021.

The two-class method dictates that net income for a period be reduced by the amount of available cash that will be distributed with respect to that period and that any residual amount representing undistributed net income to be allocated to common unitholders and other participating unitholders to the extent that each unit may share in net income as if all of the net income for the period had been distributed in accordance with the partnership agreement. Undistributed income is allocated to participating securities based on the distribution waterfall for available cash specified in the partnership agreement. Undistributed losses (including those resulting from distributions in excess of net income) are allocated to common units and other participating securities on a pro rata basis based on provisions of the partnership agreement. Distributions are treated as distributed earnings in the computation of earnings per common unit even though cash distributions are not necessarily derived from current or prior period earnings.

The following table provides a reconciliation of net income and the allocation of net income to the common units, the subordinated units, the general partner units and IDRs for purposes of computing basic and diluted net income per unit (in millions, except per unit data).


			Limited Partner Units
	Total		Common Units		Subordinated Units		General Partner Units		IDR


















Year Ended December 31, 2021
Net income	$	1,630
Declared distributions	1,486		1,309		—		30		147
Assumed allocation of undistributed net income (1)	$	144	141		—		3		—
Assumed allocation of net income			$	1,450	$	—	$	33	$	147

Weighted average units outstanding			484.0		—
Basic and diluted net income per unit			$	3.00	$	—


Year Ended December 31, 2020
Net income	$	1,183
Declared distributions	1,375		1,080		174		27		94

Assumed allocation of undistributed net loss (1)	$	(192)	(155)		(33)		(4)		—
Assumed allocation of net income			$	925	$	141	$	23	$	94

Weighted average units outstanding			399.3		84.7
Basic and diluted net income per unit			$	2.32	$	1.67

Year Ended December 31, 2019
Net income	$	1,175
Declared distributions	1,278		858		333		26		62

Assumed allocation of undistributed net loss (1)	$	(103)	(73)		(28)		(2)		—
Assumed allocation of net income			$	785	$	305	$	24	$	62

Weighted average units outstanding			348.6		135.4
Basic and diluted net income per unit			$	2.25	$	2.25

(1)Under our partnership agreement, the IDRs participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in undistributed net income (loss).