Nature of Operations

Through its consolidated subsidiaries, Altus Midstream Company owns gas gathering, processing and transmission assets in the Permian Basin of West Texas. Construction on the assets began in the fourth quarter of 2016, and operations commenced in the second quarter of 2017. Additionally, we own, or have options to own, joint venture equity interests in a total of five Permian Basin pipelines. The Company’s operations consist of one reportable segment.

Organization

Altus originally incorporated on December 12, 2016 in Delaware under the name Kayne Anderson Acquisition Corp. (“KAAC”), for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Company closed its public offering in the second quarter of 2017.

On August 3, 2018, Altus Midstream LP was formed in Delaware as a limited partnership and wholly-owned subsidiary of the Company. On August 8, 2018, KAAC and Altus Midstream LP entered into a contribution agreement (the “Contribution Agreement”) with certain wholly-owned subsidiaries of Apache Corporation (“Apache”), including the Alpine High Entities. The Alpine High Entities comprise four Delaware limited partnerships (collectively, “Alpine High Midstream”) and their general partner (Alpine High Subsidiary GP LLC, a Delaware limited liability company), formed by Apache between May 2016 and January 2017 for the purpose of acquiring, developing, and operating midstream oil and gas assets in the Alpine High resource play (“Alpine High”).

On November 9, 2018 (the “Closing Date”) and pursuant to the terms of that certain Contribution Agreement, KAAC acquired from Apache, the entire equity interests of the Alpine High Entities and options to acquire joint venture equity interests in five separate third-party pipeline projects (the “Pipeline Options”). The acquisition of the entities and the Pipeline Options is referred to herein as the “Business Combination.” In exchange, the consideration provided to Apache included equity consideration, comprising economic voting and non-economic voting shares in KAAC, and limited partner interests in Altus Midstream.

Following the Closing Date and in connection with the completion of the Business Combination:

•KAAC changed its name to Altus Midstream Company;


•	the Company’s wholly-owned subsidiary, Altus Midstream GP LLC, a Delaware limited liability company (“Altus Midstream GP”), is the sole general partner of Altus Midstream;

•Altus Midstream Company holds a 23.1 percent controlling interest in Altus Midstream;


•	Altus Midstream Company operates its business through Altus Midstream and its subsidiaries, which include Alpine High Midstream; and


•	the shares of Class A common stock, $0.0001 par value (“Class A Common Stock”) continued trading on the NASDAQ under the new symbol “ALTM.”

Refer to Note 2 — Recapitalization Transaction, for further discussion of the ownership structure and the partnership structure of Altus Midstream.