EQUITY METHOD INTERESTS

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Apache, through its ownership of Altus, has the following equity method interests in four Permian Basin long-haul pipeline entities which are accounted for under the equity method of accounting. 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.



	December 31, 2019				December 31, 2018
	Interest		Amount		Interest		Amount
	($ in millions)
Gulf Coast Express Pipeline LLC	16.0	%	$	291	15.0	%	$	91
EPIC Crude Holdings, LP	15.0	%	163		—		—
Permian Highway Pipeline LLC	26.7	%	311		—		—
Shin Oak Pipeline (Breviloba, LLC)	33.0	%	493		—		—
			$	1,258			$	91

As of December 31, 2019 and December 31, 2018, unamortized basis differences included in the equity method interest balances were $30 million and $6 million, respectively. These amounts represent differences in contributions to date and Altus’ underlying equity in the separate net assets within the financial statements of the respective entities. Unamortized basis differences are 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 Altus’ equity method interests for the year ended December 31, 2019:



	Gulf Coast Express Pipeline LLC			EPIC Crude Holdings, LP			Permian Highway Pipeline LLC		Breviloba, LLC			Total⁽²⁾
	(In millions)
Balance at December 31, 2018	$	91		$	—		$	—	$	—		$	91
Acquisitions	15			52			162		442			671
Capital contributions	184			123			147		47			501
Distributions	(16		)	—			—		(9		)	(25		)
Capitalized interest⁽¹⁾	—			—			2		—			2
Equity income (loss), net	17			(11		)	—		13			19
Accumulated other comprehensive loss	—			(1		)	—		—			(1		)
Balance at December 31, 2019	$	291		$	163		$	311	$	493		$	1,258


(1)	Altus’ proportionate share of the Permian Highway Pipeline (PHP) construction costs is funded with Altus’ revolving credit facility. Accordingly, Altus capitalized $2 million of related interest expense, which is included in the basis of the PHP equity interest.


(2)	At December 31, 2019, consolidated retained earnings, net of amortized basis differences, included $5 million related to undistributed earnings of equity method investments.

Summarized Combined Financial Information

The following presents summarized combined statement of operations information for Altus’ equity method interests (on a 100 percent basis):



	For the Year Ended December 31,
	2019⁽¹⁾			2018⁽¹⁾
	(In millions)
Operating revenues	$	302		$	2
Operating expenses	181			8
Operating income (loss)	121			(6		)
Net income (loss)	115			(6		)
Other comprehensive loss	(8		)	—


(1)	The financial results for all equity method interests are presented for the entire twelve months for both periods for comparability.

The following presents summarized combined balance sheet information for Altus’ equity method interests (on a 100 percent basis):



	December 31,
	2019		2018
	(In millions)
Current assets	$	441	$	451
Noncurrent assets	6,431		2,377
Total assets	$	6,872	$	2,828

Current liabilities	$	478	$	805
Noncurrent liabilities	958		1
Equity	5,436		2,022
Total liabilities and equity	$	6,872	$	2,828

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.