REEDEMABLE NONCONTROLLING INTEREST - ALTUS (Tables)

6 Months Ended

Jun. 30, 2019

Activity related to the Preferred Units during the six months ended June 30, 2019 is as follows:



	Units Outstanding	Financial Position⁽²⁾
	(In millions, except unit data)
Redeemable noncontrolling interest - Altus Preferred Unit Limited Partners: beginning of period	—	$	—
Issuance of Preferred Units, net	625,000	517
Allocation of Altus Midstream LP net income⁽¹⁾	N/A	3
Accreted value adjustment	N/A	1
Redeemable noncontrolling interest - Altus Preferred Unit Limited Partners: end of period	625,000	521
Preferred Units embedded derivative		94
		$	615

(1)

Subsequent to the balance sheet date, Altus Midstream LP provided notice to the Preferred Unit holders of record at June 30, 2019 of the amount of the initial distribution on the Preferred Units for the period from Closing to June 30, 2019. The holders also were notified that Altus Midstream LP elected to pay the entire amount of the approximate $2 million distribution in-kind in additional Preferred Units (PIK Units) on August 14, 2019. In total, 2,187.5 PIK Units will be issued in satisfaction of the initial required distribution.

(2)

As at June 30, 2019, the aggregate Redemption Price was $628 million, based on an internal rate of return of 11.5 percent.

The net transaction price was allocated to the preferred redeemable noncontrolling interest and the embedded features according to the associated initial fair value measurements as follows:



	June 12, 2019
	(In millions)
Redeemable noncontrolling interest - Altus Preferred Unit Limited Partners	$	517
Preferred Units embedded derivative	94
	$	611