Unit-Based Compensation

3 Months Ended

Mar. 31, 2015

Unit-Based Compensation

Unit-Based Compensation

6.  Unit-Based Compensation

Long-Term Incentive Plan

Our board of directors adopted the Exterran Partners, L.P. Long-Term Incentive Plan (the “Plan”) in October 2006 for employees, directors and consultants of us, Exterran Holdings and our respective affiliates. A maximum of 1,035,378 common units, common unit options, restricted units and phantom units are available under the Plan. The Plan is administered by our board of directors or a committee thereof (the “Plan Administrator”).

Phantom units are notional units that entitle the grantee to receive a common unit upon the vesting of a phantom unit or, at the discretion of the Plan Administrator, cash equal to the fair market value of a common unit. Phantom units granted under the Plan may include nonforfeitable tandem distribution equivalent rights to receive cash distributions on unvested phantom units in the quarter in which distributions are paid on common units. Phantom units generally vest one-third per year on each of the first three anniversaries of the grant date.

Phantom Units

The following table presents phantom unit activity during the three months ended March 31, 2015:

	Phantom Units		Weighted Average Grant-Date Fair Value per Unit
Phantom units outstanding, January 1, 2015	91,763		$	27.38
Granted	45,236		24.87
Vested	(50,717	)	25.77
Phantom units outstanding, March 31, 2015	86,282		27.01

As of March 31, 2015, we expect $2.0 million of unrecognized compensation cost related to unvested phantom units to be recognized over the weighted-average period of 2.2 years.