Net Income or Loss per Limited Partner Unit (Notes)

9 Months Ended

Sep. 30, 2020

Net Income or Loss per Limited Partner Unit

16. Net Income or Loss per Limited Partner Unit

Prior to the equity restructuring transaction, we used the two-class method when calculating the net income unit applicable to limited partners, because we had more than one participating security consisting of limited partner common units, general partner units and IDRs. Subsequent to the equity restructuring transaction that occurred on November 6, 2019, our general partner and its IDRs no longer participate in earnings or distributions.

There were 319,350 restricted phantom units outstanding as of September 30, 2020 that were excluded from the calculation of diluted net loss per unit for the nine months ended September 30, 2020 because including them would have been anti-dilutive. We have the ability to elect to settle restricted phantom units at our discretion in either cash or common units. For units granted during 2020, we have the ability and intent to settle vested units through the issuance of common units.

Basic and diluted net income per limited partner unit was calculated as follows for the three and nine months ended September 30, 2020 and 2019.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(millions, except per unit amounts)

Net income (loss) attributable to limited partners	$	96	$	(228)	$	(436)	$	(146)
Weighted average limited partner units outstanding, basic	208,342,746		143,322,121		208,334,185		143,318,943
Dilutive effects of nonvested restricted phantom units	319,350		—		—		—
Weighted average limited partner units outstanding, diluted	208,662,096		143,322,121		208,334,185		143,318,943
Net income (loss) per limited partner unit, basic	$	0.46	$	(1.59)	$	(2.09)	$	(1.02)
Net income (loss) per limited partner unit, diluted	$	0.46	$	(1.59)	$	(2.09)	$	(1.02)