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Equity Method Investment
6 Months Ended
Jun. 30, 2023
Equity Method Investments  
Equity Method Investment

Note 11.    Equity Method Investment

Spring Partners Retail LLC

On March 1, 2023, the Partnership entered into a Limited Liability Company Agreement, as amended (the “LLC Agreement”) of Spring Partners Retail LLC (“SPR”), a Delaware limited liability company formed as a joint venture with ExxonMobil Corporation for the purpose of engaging in the business of operating retail locations in the

state of Texas and such other states as may be approved by SPR’s board of directors. In accordance with the LLC Agreement, the Partnership invested approximately $69.5 million in cash for a 49.99% ownership interest. ExxonMobil Corporation has the remaining 50.01% ownership interest in SPR. SPR is managed by a two-person board of directors, one of whom is designated by the Partnership. The day-to-day activities of SPR are operated by SPR Operator LLC (“SPR Operator”), a wholly owned subsidiary of the Partnership. SPR Operator provides administrative and support functions, such as operations and management support, accounting, legal and human resources and information technology services and systems to SPR for an annual fixed fee. The Partnership accounts for its investment in SPR as an equity method investment as the Partnership has significant influence, but not a controlling interest in the investee.

On June 1, 2023, SPR acquired a portfolio of 64 Houston-area convenience and fueling facilities from Landmark Industries, LLC and its related entities.

The Partnership recognized income of $1.2 million in its investment for each of the three and six months ended June 30, 2023, which is included in income from equity method investment in the accompanying consolidated statements of operations. As of June 30, 2023, the Partnership’s investment balance in the joint venture was $70.7 million, which is included in equity method investment in the accompanying consolidated balance sheet.