NET LOSS PER LIMITED PARTNER UNIT AND DISTRIBUTIONS | NET LOSS PER LIMITED PARTNER UNIT AND DISTRIBUTIONS Net Loss Per Limited Partner Unit The following is a reconciliation of net loss attributable to limited partners and the limited partner units used in the basic and diluted earnings per unit calculations for the three and nine months ended September 30, 2018 and 2017 (in thousands, except unit and per unit data): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net loss $ (14,834 ) $ (19,058 ) $ (49,579 ) $ (50,311 ) General partner unit in-kind distribution (11 ) (20 ) (33 ) (50 ) Net loss attributable to partners $ (14,845 ) $ (19,078 ) $ (49,612 ) $ (50,361 ) General partner's interest (1) $ (308 ) $ (396 ) $ (1,024 ) $ (1,019 ) Class B Convertible limited partner interest (1) (3,487 ) (4,235 ) (11,483 ) (11,058 ) Limited partners' interest (1) Common $ (8,833 ) $ (11,545 ) $ (29,659 ) $ (30,590 ) Subordinated (2,217 ) (2,902 ) (7,446 ) (7,694 ) (1) General Partner's and limited partners’ interests are calculated based on the allocation of net losses for the period, net of the General Partner unit in-kind distributions. The Class B Convertible Unit interest is calculated based on the allocation of only net losses for the period. Three Months Ended September 30, Nine Months Ended September 30, Common Units 2018 2017 2018 2017 Interest in net loss $ (8,833 ) $ (11,545 ) $ (29,659 ) $ (30,590 ) Effect of dilutive units - numerator (1) — — — — Dilutive interest in net loss $ (8,833 ) $ (11,545 ) $ (29,659 ) $ (30,590 ) Weighted-average units - basic 48,657,961 48,573,647 48,640,448 48,544,728 Effect of dilutive units - denominator (1) — — — — Weighted-average units - dilutive 48,657,961 48,573,647 48,640,448 48,544,728 Basic and diluted net loss per common unit $ (0.18 ) $ (0.24 ) $ (0.61 ) $ (0.63 ) Three Months Ended September 30, Nine Months Ended September 30, Subordinated Units 2018 2017 2018 2017 Interest in net loss $ (2,217 ) $ (2,902 ) $ (7,446 ) $ (7,694 ) Effect of dilutive units - numerator (1) — — — — Dilutive interest in net loss $ (2,217 ) $ (2,902 ) $ (7,446 ) $ (7,694 ) Weighted-average units - basic 12,213,713 12,213,713 12,213,713 12,213,713 Effect of dilutive units - denominator (1) — — — — Weighted-average units - dilutive 12,213,713 12,213,713 12,213,713 12,213,713 Basic and diluted net loss per subordinated unit $ (0.18 ) $ (0.24 ) $ (0.61 ) $ (0.63 ) (1) Because we had a net loss for all periods for common units and the subordinated units, the effect of the dilutive units would be anti-dilutive to the per unit calculation. Therefore, the weighted average units outstanding are the same for basic and dilutive net loss per unit for those periods. The weighted average units that were not included in the computation of diluted per unit amounts were 87,388 and 86,418 unvested awards granted under the LTIP for the three months ended September 30, 2018 and 2017, respectively. The weighted average units that were not included in the computation of diluted per unit amounts were 230,833 and 46,551 unvested awards granted under the LTIP for the nine months ended September 30, 2018 and 2017, respectively. Cash Distributions Our agreement of limited partnership (as amended and restated, the “Partnership Agreement”), requires that within 45 days after the end of each quarter, we distribute all of our available cash to unitholders of record on the applicable record date, as determined by our General Partner. There is no guarantee that we will pay the minimum quarterly distribution on our units in any quarter. Beginning with the third quarter of 2014, until such time that we have a distributable cash flow divided by cash distributions ratio (“Distributable Cash Flow Ratio”) of at least 1.0 , Holdings, the indirect holder of all of our subordinated units, waived the right to receive distributions on any subordinated units that would cause the Distributable Cash Flow Ratio to be less than 1.0 . More importantly, the First Amendment (as defined in Note 5) imposed additional restrictions on our ability to declare and pay quarterly cash distributions with respect to our subordinated units. Additionally, we are restricted under the Fifth Amendment from paying a distribution with respect to our common units until our Consolidated Total Leverage Ratio is below 5.0 . See Note 5. The SXE GP Board suspended paying a quarterly distribution with respect to the fourth quarter of 2015, every quarter of 2016 and 2017 and the first, second and third quarters of 2018 to conserve any excess cash for the operation of our business. The SXE GP Board and our management believe this suspension to be in the best interest of our unitholders and will continue to evaluate our ability to reinstate the distribution in future periods. More importantly, we are restricted under the terms of the Fifth Amendment from paying a distribution until our Consolidated Total Leverage Ratio is below 5.0 . Paid In-Kind Distributions Class B Convertible Units. As of September 30, 2018 , the Class B Convertible Units consisted of 19,314,797 of such units including the additional Class B Convertible Units issued in-kind as a distribution (“Class B PIK Units”). The Class B Convertible Units are not participating securities for purposes of the earnings per unit calculation. Commencing with the quarter ended September 30, 2014 and until converted, as long as certain requirements are met, the holders of the Class B Convertible Units will receive quarterly distributions in an amount equal to $0.3257 per unit. These distributions will be paid quarterly in Class B PIK Units within 45 days after the end of each quarter. Our General Partner was entitled, and has exercised its right, to retain its 2.0% general partner interest in us in connection with the original issuance of the Class B Convertible Units. In connection with future distributions of Class B PIK Units, the General Partner is entitled to a corresponding distribution to maintain its 2.0% general partner interest in us. The Class B Convertible Units have the same rights, preferences and privileges, and are subject to the same duties and obligations, as our common units, with certain exceptions. See Note 7. The following table represents the Class B PIK unit distribution paid on the Class B Convertible Units for the periods ended December 31, 2017 and September 30, 2018 (in thousands, except per unit and in-kind distribution units): Payment Date Attributable to the Quarter Ended Per Unit Distribution In-Kind Class B Convertible Unit In-Kind Class B Convertible Distributions (1) In-Kind Unit to General Partner In-Kind General Partner Distribution Value (1) 2018 November 12, 2018 September 30, 2018 $ 0.3257 338,034 $ 196 6,899 $ 4 August 13, 2018 June 30, 2018 0.3257 332,220 515 6,780 11 May 3, 2018 March 31, 2018 0.3257 326,506 532 6,663 11 2017 February 9, 2018 December 31, 2017 $ 0.3257 320,890 $ 542 6,549 $ 11 November 11, 2017 September 30, 2017 0.3257 315,370 741 6,436 15 August 11, 2017 June 30, 2017 0.3257 309,946 983 6,325 20 May 11, 2017 March 31, 2017 0.3257 304,615 1,060 6,216 22 (1) The fair-value was calculated as required, based on the common unit price at the quarter end date for the period attributable to the distribution, multiplied by the number of units distributed. |