Variable Interest Entities

3 Months Ended

Mar. 31, 2022

Variable Interest Entities

Variable Interest Entities

16. VARIABLE INTEREST ENTITIES

The Partnership’s investment in the Carnero JV represents a variable interest entity (“VIE”) that could expose the Partnership to losses. The amount of losses the Partnership could be exposed to from the Carnero JV is limited to the capital investment of approximately $22.3 million.

As of March 31, 2022, the Partnership had invested approximately $124.4 million in the Carnero JV and no debt has been incurred by the Carnero JV. We have included this VIE in equity investments on our condensed consolidated 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 March 31, 2022 and December 31, 2021 (in thousands):

	March 31,		December 31,
	2022		2021
Acquisitions, earnout and capital investments	$	128,483	$	128,483
Earnings in equity investments		(20,227)		(23,618)
Distributions received		(85,930)		(84,667)
Maximum exposure to loss	$	22,326	$	20,198