Earnings Per Limited Partner Unit

6 Months Ended

Jun. 30, 2020

Our net income (loss) attributable to Crestwood Equity Partners is allocated to the subordinated and limited partner unitholders based on their ownership percentage after giving effect to net income attributable to the preferred units. We calculate basic net income per limited partner unit using the two-class method. Diluted net income per limited partner unit is computed using the treasury stock method, which considers the impact to net income attributable to Crestwood Equity Partners and limited partner units from the potential issuance of limited partner units.

We exclude potentially dilutive securities from the determination of diluted earnings per unit (as well as their related income statement impacts) when their impact on net income attributable to Crestwood Equity Partners per limited partner unit is anti-dilutive. The following table summarizes information regarding the weighted-average of common units excluded during the three and six months ended June 30, 2020 and 2019 (in millions):



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Preferred units ⁽¹⁾	7.1	—	7.1	7.1
Crestwood Niobrara’s preferred units⁽¹⁾	8.2	—	8.2	—
Unit-based compensation performance units⁽¹⁾	0.2	—	0.3	—
Subordinated units⁽¹⁾	0.4	—	0.4	—


(1)	For additional information regarding the potential conversion/redemption of our preferred units and Crestwood Niobrara’s preferred units to CEQP common units, and of our performance units and subordinated units, see our 2019 Annual Report on Form 10-K.

The table below shows CEQP’s net income per limited partner unit based on the number of basic and diluted limited partner units outstanding for the three and six months ended June 30, 2020 and 2019 (in millions, except for per unit data):



	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2020			2019		2020			2019
Common unitholders’ interest in net income (loss)	$	(49.5	)	$	198.2	$	(97.8	)	$	193.3
Dilutive effect of net income attributable to preferred units	—			15.0		—			—
Dilutive effect of net income attributable to subordinated units	—			1.2		—			1.2
Diluted net income (loss)	$	(49.5	)	$	214.4	$	(97.8	)	$	194.5

Weighted-average limited partners’ units outstanding - basic	73.2			71.8		73.0			71.8
Dilutive effect of preferred units	—			7.1		—			—
Dilutive effect of Crestwood Niobrara preferred units	—			3.4		—			4.5
Dilutive effect of stock-based compensation performance units	—			0.3		—			0.3
Dilutive effect of subordinated units	—			0.4		—			0.4
Weighted-average limited partners’ units outstanding - diluted	73.2			83.0		73.0			77.0

Basic earnings per unit:
Net income (loss) per limited partner unit	$	(0.68	)	$	2.76	$	(1.34	)	$	2.69
Diluted earnings per unit:
Net income (loss) per limited partner unit	$	(0.68	)	$	2.58	$	(1.34	)	$	2.53