Earnings Per Limited Partner Unit

6 Months Ended

Jun. 30, 2022

Earnings Per Limited Partner Unit We calculate the dilutive effect of the preferred units and Crestwood Niobrara preferred units 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. The dilutive effect of the stock-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.

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 three and six months ended June 30, 2022 and 2021 (in millions):


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2022	2021	2022	2021
Preferred units(1)	7.1	7.1	7.1	7.1
Crestwood Niobrara’s preferred units(1)	—	3.6	—	3.6
Unit-based compensation performance units(1)	—	0.1	—	0.1
Subordinated units(2)	—	—	—	0.2

(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, see our 2021 Annual Report on Form 10-K.

(2)In March 2021, CEQP retired its subordinated units. For additional information regarding the retirement of the subordinated units, see Note 11.

The following table shows Crestwood Equity’s common unitholders’ interest in net income (loss) and weighted-average limited partner units used in computing basic and diluted net income (loss) per limited partner unit for the three and six months ended ended June 30, 2022 and 2021 (in millions, except for per unit data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Common unitholders’ interest in net income (loss)	$	14.1	$	(63.4)	$	11.1	$	(126.8)



Diluted net income (loss)	$	14.1	$	(63.4)	$	11.1	$	(126.8)

Weighted-average limited partners’ units outstanding - basic	98.0		63.5		92.0		68.4

Dilutive effect of Crestwood Niobrara preferred units	4.5		—		4.5		—
Dilutive effect of stock-based compensation performance units	0.1		—		0.2		—

Weighted-average limited partners’ units outstanding - diluted	102.6		63.5		96.7		68.4

Net income (loss) per limited partner unit:
Basic	$	0.14	$	(1.00)	$	0.12	$	(1.85)
Diluted	$	0.14	$	(1.00)	$	0.11	$	(1.85)