EARNINGS PER UNIT

The Partnership applies the two-class method for purposes of calculating earnings per unit (“EPU”). The holders of the Partnership’s restricted common and subordinated units have all the rights of a unitholder, including non-forfeitable distribution rights. As participating securities, the restricted common and subordinated units are included in the calculation of basic earnings per unit. For the periods presented, the amount of earnings allocated to these participating units was not material.

Net income (loss) attributable to the Partnership is allocated to our general partner and the common and subordinated unitholders in proportion to their pro rata ownership after giving effect to distributions, if any, declared during the period. The Series A redeemable preferred units could be converted into 0.8 million common units and 1.1 million subordinated units as of December 31, 2017. The Series B cumulative convertible preferred units could be converted into 1.6 million weighted average common units as of December 31, 2017.

At December 31, 2017, if the outstanding Series A redeemable preferred units were converted to common and subordinated units, and the outstanding Series B cumulative convertible preferred units were converted to common units, the effect would be anti-dilutive. Therefore, the Series A redeemable preferred units and the Series B cumulative convertible preferred units are not included in the diluted EPU calculations.

The Partnership’s restricted performance unit awards are contingently issuable units that are considered in the calculation of diluted EPU. The Partnership assesses the number of units that would be issuable, if any, under the terms of the arrangement if the end of the reporting period were the end of the contingency period. As of December 31, 2017, there were no units related to the Partnership’s restricted performance unit awards included in the calculation of diluted EPU as the inclusion of these units would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per unit:



	For the Year Ended December 31,
	2017			2016			2015
	(in thousands, except per unit amounts)
NET INCOME (LOSS)	$	157,153		$	20,188		$	(101,305	)
Net loss attributable to Predecessor	—			—			(450		)
Net income attributable to noncontrolling interests subsequent to initial public offering	34			12			1,260
Distributions on Series A redeemable preferred units subsequent to initial public offering	(3,117		)	(5,763		)	(7,522		)
Distributions on Series B cumulative convertible preferred units	$	(1,925	)	—			—
NET INCOME (LOSS) ATTRIBUTABLE TO THE GENERAL PARTNER AND COMMON AND SUBORDINATED UNITS SUBSEQUENT TO INITIAL PUBLIC OFFERING	$	152,145		$	14,437		$	(108,017	)
ALLOCATION OF NET INCOME (LOSS) SUBSEQUENT TO INITIAL PUBLIC OFFERING ATTRIBUTABLE TO:
General partner interest	$	—		$	—		$	—
Common units	98,389			24,669			(54,326		)
Subordinated units	53,756			(10,232		)	(53,691		)
	$	152,145		$	14,437		$	(108,017	)
NET INCOME (LOSS) ATTRIBUTABLE TO LIMITED PARTNERS PER COMMON AND SUBORDINATED UNIT:
Per common unit (basic)	$	1.01		$	0.26		$	(0.56	)
Weighted average common units outstanding (basic)	97,400			96,073			96,182
Per subordinated unit (basic)	$	0.56		$	(0.11	)	$	(0.56	)
Weighted average subordinated units outstanding (basic)	95,149			95,138			95,057
Per common unit (diluted)	$	1.01		$	0.26		$	(0.56	)
Weighted average common units outstanding (diluted)	97,400			96,243			96,182
Per subordinated unit (diluted)	$	0.56		$	(0.11	)	$	(0.56	)
Weighted average subordinated units outstanding (diluted)	95,149			95,138			95,057