Equity Investments

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

7. EQUITY INVESTMENTS

The following table presents the financial statement impact of the Partnership’s equity investments for the nine months ended September 30, 2022:


thousands	Balance at December 31, 2021		Equity income, net		Contributions		Distributions		Distributions in excess of cumulative earnings (1)		Acquisitions and Divestitures		Balance at September 30, 2022
White Cliffs	$	40,753	$	539	$	—	$	(103)	$	(2,760)	$	—	$	38,429
Rendezvous	22,075		(1,910)		—		(534)		(2,074)		—		17,557
Mont Belvieu JV	96,728		21,651		—		(21,765)		(3,378)		—		93,236
TEG	16,116		4,832		75		(4,849)		(21)		—		16,153
TEP	188,925		32,457		—		(32,646)		(2,733)		—		186,003
FRP	196,632		34,074		455		(34,384)		(2,364)		—		194,413
Whitethorn LLC	149,690		(2,736)		255		3,553		(1,565)		—		149,197
Cactus II	171,294		10,903		—		(11,028)		(7,567)		—		163,602
Saddlehorn	110,441		15,813		—		(15,470)		(5,150)		—		105,634
Panola	20,044		1,688		—		(1,454)		(864)		—		19,414
Mi Vida	51,763		8,256		—		(7,209)		(3,105)		—		49,705
Ranch Westex	979		3,392		—		(3,392)		(8,376)		7,397		—
Red Bluff Express	101,747		10,429		8,114		(10,429)		(1,101)		—		108,760
Total	$	1,167,187	$	139,388	$	8,899	$	(139,710)	$	(41,058)	$	7,397	$	1,142,103

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(1)Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual-investment basis.

In September 2022, the Partnership acquired the remaining 50% interest in Ranch Westex from a third party. Subsequent to the acquisition, the Partnership is the sole owner and operator of the asset and Ranch Westex is no longer accounted for under the equity method of accounting. See Note 3.

During the nine months ended September 30, 2021, the Partnership recognized an impairment loss on its investment in Ranch Westex of $11.8 million that resulted from a decline in value below the carrying value, which was determined to be other than temporary in nature. This investment was impaired to its estimated fair value of $2.9 million, using the income approach and Level-3 fair value inputs, due to a reduction in estimated future cash flows resulting from lower forecasted producer throughput.