Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2020

Note 9. Net Income Per Limited Partner Unit

Our net income is attributed to limited partners, in accordance with their respective ownership percentages, and when applicable, giving effect to incentive distributions paid to Noble. For periods prior to the conversion of Subordinated Units and simplification of IDRs, we had more than one class of participating securities and we utilized the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include Common Units, Subordinated Units and IDRs.

Basic and diluted net income per limited partner Common Unit and Subordinated Unit 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. Diluted net income per limited partner Common Unit and Subordinated Unit reflects the potential dilution that could occur if agreements to issue Common Units, such as awards under the LTIP, were settled or converted into Common Units. When it is determined that potential Common Units resulting from an award should be included in the diluted net income per limited partner Common and Subordinated Unit calculation, the impact is reflected by applying the treasury stock method.

Our calculation of net income per limited partner Common and Subordinated Unit is as follows:



	Three Months Ended March 31,
(in thousands, except per unit amounts)	2020		2019
Net Income Attributable to Noble Midstream Partners LP	$	10,103	$	43,559
Less: Net Income Attributable to Incentive Distribution Rights	—		3,507
Net Income Attributable to Limited Partners	$	10,103	$	40,052

Net Income Attributable to Common Units	$	10,103	$	23,967
Net Income Attributable to Subordinated Units ⁽¹⁾	—		16,085
Net Income Attributable to Limited Partners	$	10,103	$	40,052

Net Income Attributable to Limited Partners Per Limited Partner Unit — Basic and Diluted
Common Units	$	0.11	$	1.01
Subordinated Units ⁽¹⁾	$	—	$	1.01

Weighted Average Limited Partner Units Outstanding — Basic
Common Units	90,152		23,696
Subordinated Units ⁽¹⁾	—		15,903

Weighted Average Limited Partner Units Outstanding — Diluted
Common Units	90,164		23,721
Subordinated Units ⁽¹⁾	—		15,903

Antidilutive Restricted Units	167		67

⁽¹⁾

On May 14, 2019, all Subordinated Units were converted into Common Units.