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INVESTMENTS

9 Months Ended

Sep. 30, 2022

10.INVESTMENTS

AllDale III

As discussed in Note 9 – Variable Interest Entities, we account for our ownership interest in the income or loss of AllDale III as an equity method investment. The changes in our equity method investment in AllDale III for each of the periods presented were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021

	(in thousands)
Beginning balance	$	26,278	$	26,274	$	26,325	$	27,268
Equity method investment income		2,108		703		4,576		1,106
Distributions received		(2,448)		(797)		(4,963)		(2,194)
Ending balance	$	25,938	$	26,180	$	25,938	$	26,180

Francis

As discussed in Note 9 – Variable Interest Entities, we accounted 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 three and nine months ended September 30, 2022 were as follows:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2022		2022

	(in thousands)
Beginning balance	$	20,000	$	—
Contributions		—		20,000
Ending balance	$	20,000	$	20,000

NGP ETP IV

As discussed in Note 9 – 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 three and nine months ended September 30, 2022 were as follows:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2022		2022

	(in thousands)
Beginning balance	$	110	$	—
Contributions		110		220
Ending balance	$	220	$	220

Infinitum

On April 29, 2022, we purchased $32.6 million of Series D Preferred Stock from Infinitum, a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators. The 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 purchase. 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.

As discussed in Note 1 – Organization and Presentation, on November 2, 2022, we purchased an additional $9.4 million of Series D Preferred Stock in Infinitum. The stock was purchased at the same price per share as those shares of Series D Preferred Stock that we acquired on April 29, 2022.