REDEMABLE NONCONTROLLING INTEREST - ALTUS (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Preferred Units

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

Activity related to the Preferred Units during the nine months ended September 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
Distribution of in-kind additional Preferred Units(1)	2,188	—
Allocation of Altus Midstream LP net income	N/A	21
Accreted value adjustment	N/A	1
Redeemable noncontrolling interest - Altus Preferred Unit Limited Partners: end of period	627,188	539
Preferred Units embedded derivative		98
		$	637

(1) Subsequent to the balance sheet date, Altus Midstream LP provided notice to the Preferred Unit holders of record at September 30, 2019 of the amount of the distribution on the Preferred Units for the quarter ended September 30, 2019. The holders also were notified that Altus Midstream LP elected to pay the entire amount of the approximate $11 million distribution in-kind in additional Preferred Units (PIK Units) on November 14, 2019. In total, 10,975.8 PIK Units will be issued in satisfaction of the required distribution.

(2)

As at September 30, 2019, the aggregate Redemption Price was $646 million, based on an internal rate of return of 11.5 percent.