INVESTMENTS

12 Months Ended

Dec. 31, 2022

INVESTMENTS

INVESTMENTS

14.INVESTMENTS

AllDale III

As discussed in Note 13 – Variable Interest Entities, we account for our ownership interest in the income or loss of AllDale III as an equity method investment.  We record equity income or loss based on AllDale III's distribution structure.  The changes in our equity method investment in AllDale III for each of the periods presented were as follows:

	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Beginning balance	$	26,325	$	27,268	$	28,529
Equity method investment income		5,634		2,130		907
Distributions received		(6,675)		(3,073)		(1,895)
Other		—		—		(273)
Ending balance	$	25,284	$	26,325	$	27,268

Francis

As discussed in Note 13 – Variable Interest Entities, we account for our ownership interest in the income or loss of Francis as an equity method investment. The changes in our equity method investment in Francis for the year ended December 31, 2022 were as follows:

	Year Ended December 31,
	2022
	(in thousands)
Beginning balance	$	—
Contributions		20,000
Ending balance	$	20,000

NGP ETP IV

As discussed in Note 13 – Variable Interest Entities, we account for our ownership interest in the income or loss of NGP ETP IV as an equity method investment. The changes in our equity method investment in NGP ETP IV for the year ended December 31, 2022 were as follows:

	Year Ended December 31,
	2022
	(in thousands)
Beginning balance	$	—
Contributions		4,087
Ending balance	$	4,087

Infinitum

On April 29, 2022, we purchased $32.6 million of Series D Preferred Stock in Infinitum, a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators.  On November 2, 2022, we purchased an additional $9.4 million of Series D Preferred Stock in Infinitum at the same price per share as those shares of Series D Preferred Stock that we acquired on April 29, 2022.  Our preferred stock provides for non-cumulative dividends when and if declared by Infinitum's board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Infinitum. We account for our ownership interest in Infinitum as an equity investment without a readily

determinable fair value.  It is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market price for our ownership interests.  Therefore, we use a measurement alternative other than fair value to account for our investment. There have been no fair value adjustments in our investment in Infinitum subsequent to our purchases.  During the period we have not observed any price changes that have occurred to identical or similar securities sold by Infinitum that would indicate an adjustment to the fair value of our investment is warranted. The changes in our investment in Infinitum for the year ended December 31, 2022 were as follows:

	Year Ended December 31,
	2022
	(in thousands)
Beginning balance	$	—
Contributions		42,000
Ending balance	$	42,000

See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for investments.