Unit-Based Compensation

3 Months Ended

Sep. 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 nine months ended September 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 September 30, 2020	16,038	$	14.03

For the three and nine months ended September 30, 2020, total compensation expense recognized for phantom unit awards were approximately $57 thousand and $176 thousand, respectively. For the three and nine months ended September 30, 2019, total compensation expense recognized for phantom unit awards was approximately $64 thousand and $175 thousand, respectively. The unrecognized compensation cost related to phantom unit awards was approximately $90 thousand at September 30, 2020, which is expected to be recognized over a weighted average period of 0.4 years.