Variable Interest Entities

6 Months Ended

Jun. 30, 2018

Variable Interest Entities

Variable Interest Entities

18. VARIABLE INTEREST ENTITIES

The Partnership’s investment in Carnero JV represents a VIE that could expose the Partnership to losses. The amount of losses the Partnership could be exposed to from Carnero JV is limited to the capital investment of approximately $120.7 million.

As of June 30, 2018, the Partnership had invested approximately $123.7 million in Carnero JV and no debt has been incurred by Carnero JV. We have included this VIE in the “Equity investments” long-term asset line on the balance sheet.

Below is a tabular comparison of the carrying amounts of the assets and liabilities of the VIE and the Partnership’s maximum exposure to loss as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018		December 31, 2017
Acquisitions and capital investments	$	127,774	$	125,059
Earnings in equity investments		17,669		10,288
Distributions received		(24,733)		(11,632)
Maximum exposure to loss	$	120,710	$	123,715