
10.	NET INCOME PER LIMITED PARTNER UNIT

Net income per limited partner unit is calculated only for the periods subsequent to the IPO as no units were outstanding prior to the IPO. Payments made to our 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 limited partner unit.

We calculate net income available to limited partners based on the distributions pertaining to each period’s net income. After considering the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners, and other participating securities in accordance with the contractual terms of our partnership agreement and as prescribed under the two-class method. Participating securities include IDRs and awards under our 2013 ICP (defined in Note 12) that receive DERs, as further discussed in Note 12. However, the terms of our partnership agreement limit the general partner’s incentive distribution to the amount of available cash, which, as defined in our partnership agreement, is net of reserves deemed appropriate. As such, IDRs are not allocated undistributed earnings or distributions in excess of earnings in the calculation of net income per limited partner unit.

Basic net income per limited partner unit is determined pursuant to the two-class method for master limited partnerships. The two-class method is an earnings allocation formula that is used to determine earnings to our general partner, common unitholders, and participating securities according to (i) distributions pertaining to each period’s net income and (ii) participation rights in undistributed earnings.

Diluted net income per limited partner unit is also determined using the two-class method, unless the treasury stock method is more dilutive. For the year ended December 31, 2015, we used the two-class method to determine diluted net income per limited partner unit. We did not have any potentially dilutive instruments outstanding during year ended December 31, 2015.

Net income per unit was computed as follows (in thousands, except per unit amounts):



	Year Ended December 31, 2015
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	1,572	$	39,106	$	34,476	$	—	$	75,154
General partner’s IDRs	3,431		—		—		—		3,431
DERs	—		—		—		12		12
Distributions and DERs declared	5,003		39,106		34,476		12		78,597
Undistributed earnings	1,066		27,162		25,045		8		53,281
Net income available to limited partners – basic and diluted	$	6,069	$	66,268	$	59,521	$	20	$	131,878

Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding			31,222		28,790

Net income per limited partner unit – basic and diluted			$	2.12	$	2.07



	Year Ended December 31, 2014
			Limited Partners
	General Partner		Common Units		Subordinated Units		Restricted Units		Total
Allocation of net income to determine net income available to limited partners:
Distributions, excluding general partner’s IDRs	$	1,110	$	27,091	$	27,091	$	—	$	55,292
General partner’s IDRs	194		—		—		—		194
DERs	—		—		—		6		6
Distributions and DERs declared	1,304		27,091		27,091		6		55,492
Undistributed earnings	75		1,857		1,857		—		3,789
Net income available to limited partners – basic	$	1,379	28,948		28,948		$	6	$	59,281
Add: DERs			6		—
Net income available to limited partners – diluted			$	28,954	$	28,948

Net income per limited partner unit – basic:
Weighted-average units outstanding			28,790		28,790

Net income per limited partner unit – basic			$	1.01	$	1.01

Net income per limited partner unit – diluted:
Weighted-average units outstanding			28,790		28,790
Common equivalent units for restricted units			1		—
Weighted-average units outstanding –diluted			28,791		28,790

Net income per limited partner unit – diluted			$	1.01	$	1.01



	December 16, 2013 through December 31, 2013
				Limited Partners
	General Partner			Common Units			Subordinated Units			Total
Allocation of net income to determine net income available to limited partners:
Distributions	$	44		$	1,065		$	1,065		$	2,174
Excess distributions over earnings	(3		)	(65		)	(65		)	(133		)
Net income available to limited partners – basic and diluted	$	41		$	1,000		$	1,000		$	2,041

Net income per limited partner unit – basic and diluted:
Weighted-average units outstanding				28,790			28,790

Net income per limited partner unit – basic and diluted				$	0.03		$	0.03