Net Income Per Common Limited Partner Unit

6 Months Ended

Jun. 30, 2025

Net Income Per Common Limited Partner Unit

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 June 30, 2025 and December 31, 2024 excludes 94,548 and 327,307 common units, respectively, 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 June 30, 2025													Three Months Ended June 30, 2024
					Common			General										Common			General
					Limited			Partner										Limited			Partner
Numerator:		Total			Partners			Interest			IDRs				Total			Partners			Interest			IDRs
Net income		$	25,210		$	20,595		$	4,615		$	—			$	46,149		$	42,347		$	3,802		$	—
Declared distribution		$	30,146		$	25,497		$	203		$	4,446			$	28,159		$	24,477		$	189		$	3,493
Assumed allocation of undistributed net (loss) income			(4,936)			(4,902)			(34)			—				17,990			17,870			120			—
Assumed allocation of net income		$	25,210		$	20,595		$	169		$	4,446			$	46,149		$	42,347		$	309		$	3,493
Less: Preferred limited partner interest in net income						1,781													2,097
Less: Redemption of Series A preferred limited partner units						—													2,634
Net income attributable to common limited partners					$	18,814												$	37,616
Denominator:
Basic weighted average common units outstanding						33,918													33,910
Dilutive effect of phantom units						177													368
Diluted weighted average common units outstanding						34,095													34,278
Basic net income per common limited partner unit					$	0.55												$	1.11
Diluted net income per common limited partner unit					$	0.55												$	1.10


		Six Months Ended June 30, 2025													Six Months Ended June 30, 2024
					Common			General										Common			General
					Limited			Partner										Limited			Partner
Numerator:		Total			Partners			Interest			IDRs				Total			Partners			Interest			IDRs
Net income		$	43,894		$	34,867		$	9,027		$	—			$	40,547		$	33,609		$	6,938		$	—
Declared distribution		$	59,961		$	50,824		$	404		$	8,733			$	55,655		$	48,614		$	374		$	6,667
Assumed allocation of undistributed net loss			(16,067)			(15,957)			(110)			—				(15,108)			(15,005)			(103)			—
Assumed allocation of net income		$	43,894		$	34,867		$	294		$	8,733			$	40,547		$	33,609		$	271		$	6,667
Less: Preferred limited partner interest in net income						3,562													6,013
Less: Redemption of Series A preferred limited partner units						—													2,634
Net income attributable to common limited partners					$	31,305												$	24,962
Denominator:
Basic weighted average common units outstanding						33,902													33,936
Dilutive effect of phantom units						302													337
Diluted weighted average common units outstanding						34,204													34,273
Basic net income per common limited partner unit					$	0.92												$	0.74
Diluted net income per common limited partner unit					$	0.92												$	0.73

See Note 12, “Partners’ Equity and Cash Distributions” for information on declared cash distributions.