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Unit-Based Compensation
9 Months Ended
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Unit-Based Compensation
Note 9. Unit-Based Compensation
In connection with the Offering, the Board of Directors of our general partner adopted the Noble Midstream Partners LP 2016 Long-Term Incentive Plan (the LTIP). The LTIP provides for the grant, from time to time at the discretion of the Board of Directors, of unit awards, restricted units, phantom units (the nomenclature used in accounting literature), unit options, unit appreciation rights, distribution equivalent rights, profits interest units and other unit-based awards. The purpose of awards under the LTIP is to provide additional incentive compensation to individuals providing services to us, and to align the economic interests of such individuals with the interests of our unitholders.
The LTIP limits the number of units that may be delivered pursuant to vested awards to 1,860,000 common units, subject to proportionate adjustment in the event of unit splits and similar events. Common units subject to awards that are canceled, forfeited, withheld to satisfy exercise prices or tax withholding obligations or otherwise terminated without delivery of common units will be available for delivery pursuant to other awards. As of September 30, 2016, no awards had been granted under the LTIP.
Effective October 28, 2016, we granted restricted common units with a fair value of $120,000 to each of our two outside directors. The restricted units will vest one year from the effective date. Cash distributions on the restricted common units will accumulate and be paid upon vesting.