Note 7 - Net Income Per Limited Partner Unit

6 Months Ended

Jun. 30, 2022

7.	NET INCOME PER LIMITED PARTNER UNIT

For purposes of calculating earnings per unit, preferred units, general partner units, and common units are first allocated net income to the extent they receive a distribution. Next, the excess of distributions over earnings or excess of earnings over distributions for each period are allocated to the Partnership’s general partner based on the general partner’s ownership interest at the time. For the six months ended June 30, 2021, the preferred units were also allocated income for the excess consideration paid over carrying value for the repurchase of preferred units that occurred in the first quarter of 2021. The remainder is allocated to common units. The following sets forth the computation of basic and diluted net income per common unit (in thousands, except per unit data):

	*Three Months Ended June 30,*				*Six Months Ended June 30,*
	*2021*		*2022*		*2021*		*2022*
Net income	$	7,283	$	6,345	$	88,936	$	12,987
General partner interest in net income		116		101		1,408		206
Preferred interest in net income		6,156		6,150		12,497		12,300
Net income available to limited partners	$	1,011	$	94	$	75,031	$	481

Basic weighted average number of units:
Common units		41,468		41,872		41,449		41,845
Restricted and phantom units		1,551		1,672		1,359		1,476
Total units		43,019		43,544		42,808		43,321

Basic and diluted net income from discontinued operations per common unit	$	-	$	-	$	1.74	$	-
Basic and diluted net income from continuing operations per common unit	$	0.02	$	0.00	$	0.01	$	0.01
Basic and diluted net income per common unit	$	0.02	$	0.00	$	1.75	$	0.01

Blueknight Energy Partners, L.P. 10-Q