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:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2017		2016		2017		2016
Net Income Attributable to Noble Midstream Partners LP	$	41,670	$	3,093	$	97,604	$	3,093
Less: Net Income Attributable to Incentive Distribution Rights	223		—		315		—
Net Income Attributable to Limited Partners	$	41,447	$	3,093	$	97,289	$	3,093

Net Income Allocable to Common Units — Public	$	20,670	$	1,398	$	46,001	$	1,398
Net Income Allocable to Common Units — Noble	2,414		149		5,116		149
Net Income Allocable to Subordinated Units — Noble	18,363		1,546		46,172		1,546
Net Income Attributable to Limited Partners	$	41,447	$	3,093	$	97,289	$	3,093

Net Income Attributable to Limited Partners Per Limited Partner Unit — Basic and Diluted
Common Units	$	1.15	$	0.10	$	2.93	$	0.10
Subordinated Units	$	1.15	$	0.10	$	2.92	$	0.10

Weighted Average Limited Partner Units Outstanding — Basic
Common Units — Public	17,900		14,375		15,627		14,375
Common Units — Noble	2,090		1,528		1,727		1,528
Subordinated Units — Noble	15,903		15,903		15,903		15,903

Weighted Average Limited Partner Units Outstanding — Diluted
Common Units — Public	17,915		14,375		15,638		14,375
Common Units — Noble	2,090		1,528		1,727		1,528
Subordinated Units — Noble	15,903		15,903		15,903		15,903

Antidilutive Restricted Units	4		—		6		—