Net Income per Common Unit

12 Months Ended

Dec. 31, 2025

Net income per common unit is computed by dividing common unitholders’ interest in net income by the weighted average number of outstanding common units. Our net income is allocated to common unitholders in accordance with their respective partnership percentages, after giving effect to any priority income allocations for incentive distributions and distributions on employee unit awards. Earnings in excess of distributions are allocated to common unitholders based on their respective ownership interests. Payments made to our common unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.

In addition to the common units, we identify the IDRs as participating securities and use the two-class method when calculating net income per unit applicable to limited partners, which is based on the weighted average number of common units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive units on our common units, consisting of unvested phantom units.

A reconciliation of the numerators and denominators of the basic and diluted per unit computations is as follows:


	Year Ended December 31,
	2025		2024		2023

Net income	$	527	$	874	$	394
Less:
Net income attributable to noncontrolling interests	—		8		—
Incentive distribution rights	182		145		77
Distributions on unvested phantom unit awards	7		5		6
Preferred unitholders’ interest in net income	34		—		—
Class D unitholder’s interest in net income	(9)		—		—
Common unitholders’ interest in net income	$	313	$	716	$	311


Weighted average common units outstanding:
Basic	136,492,204		118,529,390		84,081,083
Dilutive effect of unvested phantom unit awards	706,014		812,648		1,012,414
Diluted	137,198,218		119,342,038		85,093,497

Net income per common unit:
Basic	$	2.29	$	6.04	$	3.70
Diluted	$	2.28	$	6.00	$	3.65