Unit-Based Compensation

3 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

11. Unit-Based Compensation

Long-Term Incentive Plan

On October 26, 2017, the General Partner adopted the BP Midstream Partners LP 2017 Long Term Incentive Plan (the “LTIP”). Awards under the LTIP are available for eligible officers, directors, employees and consultants of the General Partner and its affiliates, who perform services for the Partnership. The LTIP allows the Partnership to grant unit options, unit appreciation rights, restricted units, phantom units, unit awards, cash awards, performance awards, distribution equivalent rights, substitute awards and other unit-based awards. The maximum aggregate number of common units that may be issued pursuant to the awards granted under the LTIP shall not exceed 5,502,271, subject to proportionate adjustment in the event of unit splits and similar events.

Unit-Based Awards under the LTIP

The following is a summary of phantom unit award activities of the Partnership’s common units for the six months ended June 30, 2020:


	Phantom Units
	Number of Units (in units)	Weighted Average Grant Date Fair Value per Unit (in dollars)
Outstanding at December 31, 2019	15,227	$	16.64
Granted	16,038	14.03
Vested	(15,227)	16.64

Outstanding at June 30, 2020	16,038	$	14.03

For the three and six months ended June 30, 2020, total compensation expense recognized for phantom unit awards were approximately $56 thousand and $119 thousand, respectively. For the three and six months ended June 30, 2019, total compensation expense recognized for phantom unit awards was approximately $71 thousand and $111 thousand, respectively. The unrecognized compensation cost related to phantom unit awards was approximately $147 thousand at June 30, 2020, which is expected to be recognized over a weighted average period of 0.7 years.