Net Income Per Limited Partner Unit

6 Months Ended

Jun. 30, 2017

Note 12. 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 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, as the holder of our IDRs, 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 limited partner common and subordinated unit is as follows:



(in thousands)	Three Months Ended June 30, 2017		Six Months Ended June 30, 2017
Net Income Attributable to Noble Midstream Partners LP	$	31,592	$	55,934
Less: Net Income Attributable to Incentive Distribution Rights	92		92
Net Income Attributable to Limited Partners	$	31,500	$	55,842

Net Income Allocable to Common Units — Public	$	14,329	$	25,331
Net Income Allocable to Common Units — Noble	1,533		2,702
Net Income Allocable to Subordinated Units — Noble	15,638		27,809
Net Income Attributable to Limited Partners	$	31,500	$	55,842

Net Income Attributable to Limited Partners Per Limited Partner Unit — Basic and Diluted
Common Units	$	0.98	$	1.75
Subordinated Units	$	0.98	$	1.75

Weighted Average Limited Partner Units Outstanding — Basic
Common Units — Public	14,569		14,472
Common Units — Noble	1,558		1,543
Subordinated Units — Noble	15,903		15,903

Weighted Average Limited Partner Units Outstanding — Diluted
Common Units — Public	14,579		14,481
Common Units — Noble	1,558		1,543
Subordinated Units — Noble	15,903		15,903

Antidilutive Restricted Units	7		6