Quarterly report [Sections 13 or 15(d)]

Net Income per Common Unit

v3.25.2
Net Income per Common Unit
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Net Income per Common Unit NET INCOME PER COMMON UNIT
 
Net income per common unit for a given period is based on the distributions we incur to the common unitholders with respect to earnings or losses of the reporting period plus an allocation of undistributed net income or loss based on provisions of the partnership agreement, divided by the weighted average number of common units outstanding. Distributions declared by us during the period are presented on the Consolidated Statements of Partners’ Deficit. On July 29, 2025, we declared a cash distribution of $0.820 per common unit to unitholders of record as of August 8, 2025, and the related general partner distribution, to be paid on August 14, 2025 with respect to the three months ended June 30, 2025. These distributions consist of a base amount of $0.775 per unit and a variable amount of $0.045 per unit.

The two-class method dictates that net income for a period be reduced by the amount of available cash that will be distributed with respect to that period and that any residual amount representing undistributed net income be allocated to common unitholders and other participating unitholders to the extent that each unit may share in net income as if all of the net income for the period had been distributed in accordance with the partnership agreement. Undistributed income is allocated to participating securities based on the distribution waterfall for available cash specified in the partnership agreement. Undistributed losses (including those resulting from distributions in excess of net income) are allocated to common units and other participating securities on a pro rata basis based on provisions of the partnership agreement. Distributions are treated as distributed earnings in the computation of earnings per common unit in the current period even though cash distributions are not necessarily derived from current period earnings.

The following table provides a reconciliation of net income and the allocation of net income to the common units, the general partner units and IDRs for purposes of computing basic and diluted net income per unit (in millions, except per unit data). The amounts in the table may not recalculate exactly due to rounding because it is calculated based on whole numbers, not the rounded numbers presented.
  Total Limited Partner Common Units General Partner Units
IDR
Three Months Ended June 30, 2025
Net income $ 553 
Less: declared distributions (1) 511  397  10  104 
Assumed allocation of undistributed net income (2) $ 42  42  1  — 
Assumed allocation of net income $ 439  $ 11  $ 104 
Weighted average units outstanding 484.0 
Basic and diluted net income per unit $ 0.91 
Three Months Ended June 30, 2024
Net income $ 570 
Less: declared distributions (1) 501  392  10  99 
Assumed allocation of undistributed net income (2) $ 69  67  1  — 
Assumed allocation of net income $ 459  $ 11  $ 99 
Weighted average units outstanding 484.0 
Basic and diluted net income per unit $ 0.95 
Six Months Ended June 30, 2025
Net income $ 1,194 
Less: declared distributions (1) 1,021  794  20  207 
Assumed allocation of undistributed net income (2) $ 173  169  3  — 
Assumed allocation of net income $ 963  $ 23  $ 207 
Weighted average units outstanding 484.0 
Basic and diluted net income per unit $ 1.99 
Six Months Ended June 30, 2024
Net income $ 1,252 
Less: declared distributions (1) 1,002  784  20  198 
Assumed allocation of undistributed net income (2) $ 250  245  5  — 
Assumed allocation of net income $ 1,029  $ 25  $ 198 
Weighted average units outstanding 484.0 
Basic and diluted net income per unit $ 2.13 
(1)Represents distributions declared with respect to earnings of the respective period.
(2)Under our partnership agreement, the IDRs participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in undistributed net income (loss).