Net Income Per Limited Partner Unit

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
(in thousands, except per unit amounts)	2020		2019		2020		2019
Net Income Attributable to Noble Midstream Partners LP	$	48,236	$	36,409	$	58,339	$	79,968
Less: Net Income Attributable to Incentive Distribution Rights	—		4,640		—		8,147
Net Income Attributable to Limited Partners	$	48,236	$	31,769	$	58,339	$	71,821

Net Income Attributable to Common Units	$	48,236	$	25,487	$	58,339	$	49,454
Net Income Attributable to Subordinated Units ⁽¹⁾	—		6,282		—		22,367
Net Income Attributable to Limited Partners	$	48,236	$	31,769	$	58,339	$	71,821

Net Income Attributable to Limited Partners Per Limited Partner Unit — Basic and Diluted
Common Units	$	0.53	$	0.79	$	0.65	$	1.77
Subordinated Units ⁽¹⁾	$	—	$	0.84	$	—	$	1.91

Weighted Average Limited Partner Units Outstanding — Basic
Common Units	90,163		32,090		90,158		27,916
Subordinated Units ⁽¹⁾	—		7,514		—		11,685

Weighted Average Limited Partner Units Outstanding — Diluted
Common Units	90,164		32,121		90,163		27,944
Subordinated Units ⁽¹⁾	—		7,514		—		11,685

Antidilutive Restricted Units	207		68		187		71

⁽¹⁾

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