Note 22. Net Income Per Common Limited Partner Unit

Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses. Accordingly, the Partnership’s undistributed net income or losses is assumed to be allocated to the common unitholders and to the General Partner’s general partner interest.

Common units outstanding as reported in the accompanying consolidated financial statements at December 31, 2025 and 2024 excludes 230,273 and 327,307 common units, respectively, held on behalf of the Partnership pursuant to its repurchase program (see Note 19). These units are not deemed outstanding for purposes of calculating net income per common limited partner unit (basic and diluted). For all years presented below, the Partnership’s preferred units are not potentially dilutive securities based on the nature of the conversion feature.

The following table provides a reconciliation of net income and the assumed allocation of net income to the common limited partners (after deducting amounts allocated to preferred unitholders) for purposes of computing net income per common limited partner unit for the years presented (in thousands, except per unit data):

Year Ended December 31, 2025

 

  ​

Common

  ​

General

  ​

 

Limited

Partner

 

Numerator:

Total

Partners

Interest

IDRs

 

Net income

$

97,977

$

79,218

$

18,759

$

Declared distribution

$

121,246

$

102,327

$

816

$

18,103

Assumed allocation of undistributed net loss

 

(23,269)

 

(23,109)

 

(160)

 

Assumed allocation of net income

$

97,977

$

79,218

$

656

$

18,103

Less: Preferred limited partner interest in net income

7,124

Net income attributable to common limited partners

$

72,094

Denominator:

Basic weighted average common units outstanding

 

33,871

Dilutive effect of phantom units

 

346

Diluted weighted average common units outstanding

 

34,217

Basic net income per common limited partner unit

$

2.13

Diluted net income per common limited partner unit

$

2.11

Year Ended December 31, 2024

  ​

Common

  ​

General

  ​

Limited

Partner

Numerator:

Total

Partners

Interest

IDRs

Net income

$

110,327

$

94,983

$

15,344

$

Declared distribution

$

113,959

$

98,588

$

766

$

14,605

Assumed allocation of undistributed net loss

 

(3,632)

 

(3,605)

 

(27)

 

Assumed allocation of net income

$

110,327

$

94,983

$

739

$

14,605

Less: Preferred limited partner interest in net income

9,575

Less: Redemption of Series A preferred limited partner units

2,634

Net income attributable to common limited partners

$

82,774

Denominator:

Basic weighted average common units outstanding

 

33,840

Dilutive effect of phantom units

 

499

Diluted weighted average common units outstanding

 

34,339

Basic net income per common limited partner unit

$

2.45

Diluted net income per common limited partner unit

$

2.41

Year Ended December 31, 2023

  ​

Common

  ​

General

  ​

Limited

Partner

Numerator:

Total

Partners

Interest

IDRs

Net income

$

152,506

$

142,598

$

9,908

$

Declared distribution

$

101,869

$

92,298

$

685

$

8,886

Assumed allocation of undistributed net income

 

50,637

 

50,300

 

337

 

Assumed allocation of net income

$

152,506

$

142,598

$

1,022

$

8,886

Less: Preferred limited partner interest in net income

14,559

Net income attributable to common limited partners

$

128,039

Denominator:

Basic weighted average common units outstanding

 

33,970

Dilutive effect of phantom units

 

69

Diluted weighted average common units outstanding

 

34,039

Basic net income per common limited partner unit

$

3.77

Diluted net income per common limited partner unit

$

3.76

See Note 20, “Partners’ Equity, Allocations and Cash Distributions” for information on declared distributions.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Feb 27, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.