PARTNERS' CAPITAL (Tables)

12 Months Ended

Dec. 31, 2017

A rollforward of the number of common limited partner, preferred limited partner and General Partner units follows.

	Limited partners
	Series A Preferred Units		Common		Subordinated			General Partner
Units, January 1, 2015		—		34,426,513		24,409,850			1,200,651
Units issued in connection with the May 2015 Equity Offering		—		7,475,000		—			—
General Partner 2% contribution		—		—		—			152,551
Net units issued under SMLP LTIP		—		161,131		—			1,498
Units, December 31, 2015		—		42,062,644		24,409,850			1,354,700
Subordinated units conversion		—		24,409,850		(24,409,850	)		—
Units issued in connection with the September 2016 Equity Offering		—		5,500,000		—			—
General Partner 2% contribution		—		—		—			112,245
Net units issued under SMLP LTIP		—		138,627		—			4,242
Units, December 31, 2016		—		72,111,121		—			1,471,187
Units issued in connection with the November 2017 Equity Offering		300,000		—		—			—
Net units issued under SMLP LTIP		—		211,327		—			—
Units issued under ATM program		—		763,548		—			—
General Partner 2% contribution		—		—		—			19,812
Units, December 31, 2017		300,000		73,085,996		—			1,490,999

Schedule of Capital Distribution and Allocation to Partners

The calculation of the capital contribution and its allocation to partners' capital follows (in thousands).

Summit Investments' net investment in the 2016 Drop Down Assets	$	771,929
SMP Holdings borrowings allocated to 2016 Drop Down Assets and retained by Summit Investments	342,926
Acquired carrying value of 2016 Drop Down Assets				$	1,114,855

Deferred Purchase Price Obligation	$	507,427
Borrowings under Revolving Credit Facility	360,000
Working capital adjustment received from a subsidiary of Summit Investments	(569		)
Total consideration paid and recognized by SMLP				866,858
Excess of acquired carrying value over consideration paid and recognized				$	247,997

Allocation of capital contribution:
General Partner interest	$	4,953
Common limited partner interest	243,044
Partners' capital contribution – excess of acquired carrying value over consideration paid and recognized				$	247,997

The calculation of the capital contribution and its allocation to partners' capital follow (in thousands).

Summit Investments' net investment in Polar Midstream and Epping			$	416,044
Total net cash consideration paid to a subsidiary of Summit Investments			285,677
Excess of acquired carrying value over consideration paid			$	130,367

Allocation of capital contribution:
General Partner interest	$	2,607
Common limited partner interest	80,079
Subordinated limited partner interest	47,681
Partners' capital contribution – excess of acquired carrying value over consideration paid			$	130,367

Details of cash distributions

We paid the following per-unit distributions during the years ended December 31:

	Year ended December 31,
	2017		2016		2015
Per-unit distributions to unitholders	$	2.300	$	2.300	$	2.270

Our payment of IDRs as reported in distributions to unitholders – General Partner in the statements of partners' capital during the years ended December 31 follow.

	Year ended December 31,
	2017		2016		2015
	(In thousands)
IDR payments	$	8,460	$	7,912	$	6,743

Schedule of partnership target distributions

The following table illustrates the percentage allocations of available cash between the unitholders and our General Partner based on the specified target distribution levels. The amounts set forth in the column Marginal Percentage Interest in Distributions are the percentage interests of our General Partner and the unitholders in any available cash we distribute up to and including the corresponding amount in the column Total Quarterly Distribution Per Unit Target Amount. The percentage interests shown for our unitholders and our General Partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the MQD. The percentage interests set forth below for our General Partner assume (i) a 2% general partner interest, (ii) that our General Partner has not transferred its IDRs and (iii) that there are no arrearages on common units.

		Marginal percentage interest in distributions
	Total quarterly distribution per unit target amount	Unitholders	General Partner
Minimum quarterly distribution	$0.40	98%	2%
First target distribution	$0.40 up to $0.46	98%	2%
Second target distribution	above $0.46 up to $0.50	85%	15%
Third target distribution	above $0.50 up to $0.60	75%	25%
Thereafter	above $0.60	50%	50%