Investments

9 Months Ended

Sep. 30, 2022

Investments in and Advances to Affiliates [Abstract]

Investments

INVESTMENTS

Following the closing of the GP Sale, we continue to own approximately 3.7% of the outstanding CSI Compressco common units as of September 30, 2022. In addition, we are party to agreements in which Standard Lithium has the right to explore, and an option to acquire the rights to produce and extract lithium in our Arkansas leases as well as additional potential resources in the Mojave region of California. The Company receives cash and stock of Standard Lithium (NYSE:SLI) under the terms of the arrangements. The cash and stock component of consideration received is initially recorded as unearned income based on the quoted market price at the time the stock is received, then recognized in income over the contract term. See Note 8 - “Fair Value Measurements” for further information.

In May 2021, we signed a memorandum of understanding (“MOU”) with CarbonFree, a carbon capture company with patented technologies that capture CO2 and mineralize emissions to make commercial, carbon-negative chemicals. Although the MOU expired in May 2022 at the end of its twelve-month term, we have an intellectual property joint development agreement in place with CarbonFree to evaluate potential new technologies. In December 2021, we invested $5.0 million in a convertible note issued by CarbonFree. Our exposure to potential losses by CarbonFree is limited to our investment in the convertible note and associated accrued interest.

Our investments as of September 30, 2022 and December 31, 2021 consist of the following:

	September 30, 2022		December 31, 2021
	(in thousands)
Investment in CSI Compressco	$	6,128	$	6,233
Investment in CarbonFree	5,453		5,000
Investment in Standard Lithium	1,732		—
Total Investments	$	13,313	$	11,233