SERIES A CUMULATIVE REDEEMABLE PREFERRED UNITS (Tables)

3 Months Ended

Mar. 31, 2021

Activity related to the Preferred Units for the year ended December 31, 2020 and three months ended March 31, 2021 is as follows:


	Units Outstanding	Financial Position(2)

	(In thousands, except for unit data)
Redeemable noncontrolling interest — Preferred Units: at December 31, 2019	638,163	$	555,599
Distribution of in-kind additional Preferred Units	22,531	—
Cash distributions paid to Preferred Unit limited partners	—	(23,124)
Allocation of Altus Midstream net income	N/A	75,906
Redeemable noncontrolling interest — Preferred Units: at December 31, 2020	660,694	608,381

Cash distributions paid to Preferred Unit limited partners	—	(11,562)
Distributions payable to Preferred Unit limited partners	—	(11,562)
Allocation of Altus Midstream net income	N/A	19,492
Redeemable noncontrolling interest — Preferred Units: at March 31, 2021	660,694	$	604,749
Embedded derivative liability(1)		155,538
		$	760,287

(1)Certain redemption features embedded within the terms of the Preferred Units require bifurcation and measurement at fair value. See Note 13—Fair Value Measurements for discussion of the fair value changes in the embedded derivative liability during the period.

(2)The Preferred Units are redeemable at Altus Midstream’s option at a redemption price (the Redemption Price), which as of March 31, 2021 is calculated as the greater of (i) an 11.5 percent internal rate of return and (ii) a 1.3 times multiple of invested capital. As of March 31, 2021, the Redemption Price would have been based on a 1.3 times multiple of invested capital, which was $812.5 million. This was greater than using an 11.5 percent internal rate of return, which would equate to a redemption value of $713.0 million.

N/A - not applicable.