Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Net Income Per Limited Partner Unit

Note 13. NET INCOME PER LIMITED PARTNER UNIT

We compute income per unit using the two-class method under which any excess of distributions declared over net income shall be allocated to the partners based on their respective sharing of income as specified in the Partnership Agreement. Net income per unit applicable to limited partners is computed by dividing the limited partners’ interest in net income, after deducting the IDRs, by the weighted-average number of outstanding common units.

Since February 6, 2020, our common units are the only participating securities. On February 6, 2020, we closed on the Equity Restructuring Agreement that eliminated the IDRs.

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

	Three Months Ended March 31,
	2021			2020
Numerator:
Distributions paid	$	19,912		$	18,111
Allocation of distributions in excess of net income		(23,879	)		53,817
Limited partners’ interest in net income - basic and diluted	$	(3,967	)	$	71,928
Denominator:
Weighted-average limited partnership units outstanding - basic		37,869,259			35,994,972
Adjustment for phantom and phantom performance units (a)		—			961
Weighted-average limited partnership units outstanding - diluted		37,869,259			35,995,933
Net income per limited partnership unit - basic and diluted	$	(0.10	)	$	2.00
Distributions paid per common unit	$	0.5250		$	0.5250
Distributions declared (with respect to each respective period) per common unit	$	0.5250		$	0.5250

(a) 21,871 potentially dilutive common units were not included in the calculation of diluted earnings per common unit for the three months ended March 31, 2021 because to do so would have been antidilutive.

Distributions

Distribution activity for 2021 is as follows:

Quarter Ended	Record Date	Payment Date	Cash Distribution (per unit)		Cash Distribution (in thousands)
December 31, 2020	February 2, 2021	February 9, 2021	$	0.5250	$	19,912
March 31, 2021	May 4, 2021	May 11, 2021		0.5250		19,915

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.