EQUITY METHOD INTERESTS

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INTERESTS

EQUITY METHOD INTERESTS

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.

	Interest		March 31, 2020		December 31, 2019
			(In millions)
Gulf Coast Express Pipeline LLC	16.0	%	$	289	$	291
EPIC Crude Holdings, LP	15.0	%	176		163
Permian Highway Pipeline LLC	26.7	%	381		311
Shin Oak Pipeline (Breviloba, LLC)	33.0	%	491		493
			$	1,337	$	1,258

As of March 31, 2020 and December 31, 2019, unamortized basis differences included in the equity method interest balances were $33 million and $30 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 three months ended March 31, 2020:

	Gulf Coast Express Pipeline LLC			EPIC Crude Holdings, LP			Permian Highway Pipeline LLC		Breviloba, LLC			Total
	(In millions)
Balance at December 31, 2019	$	291		$	163		$	311	$	493		$	1,258
Capital contributions	1			15			67		—			83
Distributions	(13		)	—			—		(9		)	(22		)
Capitalized interest	—			—			3		—			3
Equity income (loss), net	10			(1		)	—		7			16
Accumulated other comprehensive loss	—			(1		)	—		—			(1		)
Balance at March 31, 2020	$	289		$	176		$	381	$	491		$	1,337

Summarized Combined Financial Information

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

	For the Quarter Ended March 31,
	2020			2019(1)
	(In millions)
Operating revenues	$	176		$	12
Operating expenses	90			8
Operating income	86			4
Net income	77			—
Other comprehensive loss	(8		)	—

(1)

The financial results for all equity method interests are presented for the three months ended March 31, 2019 for comparability.