Earnings Per Common Unit

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Earnings Per Common Unit

EARNINGS PER COMMON UNIT

The net income (loss) per common unit on the consolidated statements of operations is based on the net income (loss) of the Partnership for the years ended December 31, 2021, 2020 and 2019, since this is the amount of net income (loss) that is attributable to the Partnership’s common units.

The Partnership’s net income (loss) is allocated wholly to the common units, as the General Partner does not have an economic interest. Payments made to the Partnership’s unitholders are determined in relation to the cash distribution policy described in Note 7—Unitholders' Equity and Partnership Distributions.

Basic and diluted earnings per common unit is calculated using the two-class method. The two class method is an earnings allocation proportional to the respective ownership among holders of common units and participating securities. Basic net income (loss) per common unit is calculated by dividing net income (loss) by the weighted-average number of common units outstanding during the period. Diluted net income (loss) per common unit gives effect, when applicable, to unvested common units granted under the LTIP.

A reconciliation of the components of basic and diluted earnings per common unit is presented in the table below:

	Year Ended December 31,
	2021		2020		2019
	(In thousands, except per unit amounts)
Net income (loss) attributable to the period	$	57,939	$	(192,304)	$	46,281
Less: net income (loss) allocated to participating securities(1)	193		(44)		(117)
Net income (loss) attributable to common unitholders	$	58,132	$	(192,348)	$	46,164
Weighted average common units outstanding:
Basic weighted average common units outstanding	68,319		67,686		61,744
Effect of dilutive securities:
Potential common units issuable(2)	72		—		43
Diluted weighted average common units outstanding	68,391		67,686		61,787
Net income (loss) per common unit, basic	$	0.85	$	(2.84)	$	0.75
Net income (loss) per common unit, diluted	$	0.85	$	(2.84)	$	0.75

(1)    Distribution equivalent rights granted to employees are considered participating securities.

(2) For the year ended December 31, 2021, 10,160 potential common units were excluded from the computation of diluted earnings per common unit because their inclusion would have been anti-dilutive. For the year ended December 31, 2020, no potential common units were included in the computation of diluted earnings per common unit because their inclusion would have been anti-dilutive as a result of recording a net loss attributable to the common unitholders for the period.