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EQUITY INVESTMENTS

12 Months Ended

Dec. 31, 2024

10.EQUITY INVESTMENTS

Equity Method Investments

We account for our ownership interest in the income or loss of AllDale III, Francis and NGP ET IV as equity method investments. We record equity income or loss based on the distribution structure of the investments. The changes in our equity method investments were as follows:


	Year Ended December 31,
	2024		2023		2022

	(in thousands)
Beginning balance	$	46,503	$	49,371	$	26,325
Contributions		2,896		2,518		24,087
Equity method investment income (loss)		(4,961)		(1,468)		5,634
Distributions received		(3,788)		(3,918)		(6,675)
Change in our share of net assets		(5,118)		—		—
Ending balance	$	35,532	$	46,503	$	49,371

Equity method investment income (loss) represents our share of the income or loss of the equity method investments.

Change in our share of net assets represents a reduction in our position in the investments due to additional capital contributions from other investors.

Infinitum

During 2022, we purchased $42.0 million of Series D Preferred Stock in Infinitum, a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators. On September 8, 2023, we purchased $24.6 million of Series E Preferred Stock in Infinitum. The Infinitum Preferred Stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors. Each share of Infinitum Preferred Stock 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. Absent an observable price change, 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.

Ascend

On August 22, 2023, we purchased $25.0 million of Ascend Preferred Stock in Ascend, a U.S.-based manufacturer and recycler of sustainable, engineered battery materials for electric vehicles. The Ascend Preferred Stock provides for non-cumulative dividends when and if declared by Ascend’s board of directors. Each share is convertible, at any time, at our option, into shares of common stock of Ascend. We account for our ownership interest in Ascend as an equity investment without a readily determinable fair value. Absent an observable price change, it is not practicable to estimate the fair value of our investment in Ascend 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.