Earnings Per Limited Partner Unit

12 Months Ended

Dec. 31, 2021

Prior to the Crestwood Holdings transactions, we calculated basic net income per limited partner unit using the two-class method. Our income (loss) was allocated to our common units and other participating securities (i.e., subordinated units) based on the amount of dividends paid in the current period plus an allocation of the undistributed earnings or excess distributions over earnings to the extent that each security participates in income (loss) or excess distributions over income (loss). The dilutive effect of the unit-based compensation performance units is calculated using the treasury stock method which considers the impact to net income or loss attributable to Crestwood Equity Partners and limited partner units from the potential issuance of limited partner units. The dilutive effect of the preferred units and Crestwood Niobrara preferred units are calculated using the if-converted method which assumes units are converted at the beginning of the period (beginning with their respective issuance date), and the resulting common units are included in the denominator of the diluted net income per common unit calculation for the period being presented. Distributions declared in the period and undeclared distributions that accumulated during the period are added back to the numerator for purposes of the if-converted calculation.

We exclude potentially dilutive securities from the determination of diluted earnings per unit (as well as their related income statement impacts) when their impact is anti-dilutive. The following table summarizes information regarding the weighted-average of common units excluded during the years ended December 31, 2021, 2020 and 2019 (in millions):


	Year Ended December 31,
	2021	2020	2019
Preferred units(1)	7.1	7.1	7.1
Crestwood Niobrara’s preferred units(1)	4.2	5.7	—
Unit-based compensation performance units(2)	0.2	0.1	—
Subordinated units(3)	0.1	0.4	—

(1)See Note 12 for additional information regarding the potential conversion of our preferred units and Crestwood Niobrara’s preferred units to common units.

(2)For a description of our unit-based compensation performance units, see Note 13.

(3)In conjunction with the Crestwood Holdings Transactions, in March 2021, CEQP retired the subordinated units. For additional information regarding the retirement of the subordinated units, see Note 12.

The following table shows net income (loss) and weighted-average limited partner units used in computing basic and diluted net income (loss) per limited partner unit for the years ended December 31, 2021, 2020 and 2019 (in millions, except per unit data):


	Year Ended December 31,
	2021		2020		2019
Common unitholders’ interest in net income (loss)	$	(138.6)	$	(116.2)	$	223.6


Dilutive effect of net income attributable to subordinated units	—		—		1.4
Diluted net income (loss)	$	(138.6)	$	(116.2)	$	225.0

Weighted-average limited partners’ units outstanding - basic	65.6		73.2		71.8
Dilutive effect of Crestwood Niobrara preferred units	—		—		4.3

Dilutive effect of stock-based compensation performance units	—		—		0.4
Dilutive effect of subordinated units	—		—		0.4
Weighted-average limited partners’ units outstanding - diluted	65.6		73.2		76.9

Net income (loss) per limited partner unit:
Basic	$	(2.11)	$	(1.59)	$	3.11
Diluted	$	(2.11)	$	(1.59)	$	2.93