Net Income Per Limited Partner Unit

12 Months Ended

Dec. 31, 2016

Note 10. Net Income Per Limited Partner Unit

Net income per unit applicable to common and subordinated unitholders is computed by dividing the respective limited partners’ interest in net income for the period subsequent to the Offering by the weighted-average number of common units and subordinated units outstanding for the period. The common and subordinated unitholders represent an aggregate 100% limited partner interest in us. Because we have more than one class of participating securities, we use the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units and subordinated units.

Pursuant to our partnership agreement, to the extent that the quarterly distributions exceed certain target levels, Noble is entitled to receive certain incentive distributions that will result in more net income proportionately being allocated to Noble than to the holders of common units and subordinated units.

Our calculation of net income per common and subordinated units is as follows:



(in thousands except per unit amounts)	Common Units — Public		Common Units — Noble		Subordinated Units — Noble		Total
Period Subsequent to the Offering on September 20, 2016 to December 31, 2016
Distribution Declared⁽¹⁾	$	6,229	$	662	$	6,891	$	13,782
Income in Excess of Distribution Declared	6,633		705		7,338		14,676
Net Income Attributable to Noble Midstream Partners LP Subsequent to the Offering on September 20, 2016	$	12,862	$	1,367	$	14,229	$	28,458

Weighted Average Units Outstanding:
Basic and Diluted	14,375		1,528		15,903		31,806

Net Income Subsequent to the Offering on September 20, 2016 Per Limited Partner Unit:
Basic and Diluted	$	0.89	$	0.89	$	0.89	$	0.89

⁽¹⁾

No distribution was declared for the 10-day period ended September 30, 2016. The distribution for the quarter ending December 31, 2016 was adjusted by an amount that covers the period beginning on the closing of the Offering on September 20, 2016 and ending on September 30, 2016, based on the number of days in that period. On January 26, 2017, the Board of Directors declared a quarterly cash distribution of $0.4333 per common unit. The distribution will be paid February 14, 2017, to unitholders of record on February 6, 2017. The distribution is comprised of $0.3925 per unit for the fourth quarter 2016 and $0.0408 per unit for the 10-day period following the closing of the Offering through September 30, 2016.