PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment, at carrying value, is as follows:

	December 31,
	2019			2018
	(In thousands)
Gathering, processing, and transmission systems and facilities	$	198,133		$	729,585
Construction in progress(1)	5,443			521,609
Other property and equipment	3,694			23
Total property, plant, and equipment	207,270			1,251,217
Less: accumulated depreciation and amortization	(1,468		)	(24,320		)
Total property, plant, and equipment, net	$	205,802		$	1,226,897

(1) Included in the Company’s construction in progress is capitalized interest of $0.6 million and $6.9 million at December 31, 2019 and December 31, 2018, respectively.

The cost of property classified as “Construction in progress” is excluded from capitalized costs being depreciated. These amounts represent property that is not yet available to be placed into productive service as of the respective balance sheet date.

The Company’s costs incurred for capital spending on its gathering, processing, and transmissions system and facilities was approximately $299.3 million during 2019.

Property, plant, and equipment are evaluated for potential impairment when events or changes in circumstances indicate a possible significant deterioration in future cash flows expected to be generated by an asset group. In conjunction with Apache’s decision to materially reduce funding to Alpine High, Altus management assessed its long-lived infrastructure assets for impairment given the expected reduction to future throughput volumes. As a result of this assessment, Altus recorded impairments totaling $1.3 billion on its gathering, processing, and transmission assets in the fourth quarter of 2019. The fair values of the impaired assets were determined to be $203.6 million as of the time of the impairment and were estimated using the income approach. Altus has classified these nonrecurring fair value measurements as Level 3 in the fair value hierarchy.

The Company also elected to cancel construction on a compressor station in the third quarter of 2019, and as a result certain of its components were marketed for sale. Accordingly, Altus management reclassified these assets to current assets held for sale, and they were measured at fair value less costs to sell. The Company recorded an impairment of $9.3 million on these assets, which were written down to their fair value of $18.2 million. The fair value of the assets was determined using the market approach based on estimated sales proceeds, classified as Level 1 inputs in the fair value hierarchy. These assets were sold during the fourth quarter of 2019, and $13.3 million of cash proceeds have been received as of December 31, 2019. The Company received the remaining cash proceeds subsequent to December 31, 2019.