EQUITY METHOD INTERESTS

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Apache, through its ownership of Altus, has the following equity method interests in Permian Basin long-haul pipeline entities. For each of the equity method interests, Altus has the ability to exercise significant influence based on certain governance provisions and its participation in activities and decisions that impact the management and economic performance of the equity method interests.



	June 30, 2019				December 31, 2018
	Interest		Amount		Interest		Amount
	($ in millions)
Gulf Coast Express Pipeline LLC	16.0	%	$	251	15.0	%	$	91
EPIC Crude Holdings, LP	15.0	%	105		—		—
Permian Highway Pipeline LLC	26.7	%	171		—		—
			$	527			$	91

Altus’ underlying equity in the separate net assets within the financial statements of the respective entities as of June 30, 2019 and December 31, 2018 were $14 million less and $6 million more, respectively, than its equity method interest balances. Unamortized differences in the basis of the initial investments and Apache’s interest in the separate net assets within the financial statements of the investee will be amortized into net income over the useful lives of the underlying pipeline assets when they are placed into service.

The following table presents the activity in Apache’s equity method interests for the six months ended June 30, 2019:



	Gulf Coast Express Pipeline LLC⁽¹⁾		EPIC Crude Holdings, LP			Permian Highway Pipeline LLC		Total
	(In millions)
Balance at December 31, 2018	$	91	$	—		$	—	$	91
Acquisitions	15		52			161		228
Capital contributions	144		56			10		210
Income (loss) from equity method interests	1		(3		)	—		(2		)
Balance at June 30, 2019	$	251	$	105		$	171	$	527


(1)	In the second quarter of 2019, Altus Midstream LP exercised its option to acquire an additional 1 percent interest in the Gulf Coast Express Pipeline project, resulting in a total ownership of 16 percent at June 30, 2019.

As of December 31, 2018, Apache also held an investment in Marine Well Containment Company. This investment was sold in the first quarter of 2019 for $30 million, with no gain or loss recorded on the sale.

Exercise of Option in the Shin Oak Pipeline

Effective July 31, 2019, Altus Midstream Processing LP, a subsidiary of Altus Midstream, closed its option to acquire a 33.0 percent equity interest in the Shin Oak NGL pipeline project (Shin Oak) for approximately $441 million. Shin Oak comprises a 24-inch diameter mainline and related 20-inch lateral pipeline. The project, which is already in service, is expected to have ultimate capacity of approximately 550 MBbl/d and transports NGLs primarily from the Permian Basin to Mont Belvieu, Texas.

Shin Oak is owned and operated by Breviloba LLC (Breviloba), a subsidiary of Enterprise Products Partners, LP (Enterprise). Following closing of the option, Breviloba is 33.0 percent owned by Altus Midstream Processing LP and 67.0 percent owned by Enterprise.