EQUITY METHOD INTERESTS

9 Months Ended

Sep. 30, 2020

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.



	Interest		September 30, 2020		December 31, 2019
			(In millions)
Gulf Coast Express Pipeline LLC	16.0	%	$	284	$	291
EPIC Crude Holdings, LP	15.0	%	182		163
Permian Highway Pipeline LLC	26.7	%	576		311
Breviloba, LLC (Shin Oak Pipeline)	33.0	%	482		493
			$	1,524	$	1,258

As of September 30, 2020 and December 31, 2019, unamortized basis differences included in the equity method interest balances were $37 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 nine months ended September 30, 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			27			258		—			286
Distributions	(39		)	—			—		(35		)	(74		)
Capitalized interest	—			—			7		—			7
Equity income (loss), net	31			(8		)	—		24			47
Balance at September 30, 2020	$	284		$	182		$	576	$	482		$	1,524

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 Nine Months Ended September 30,
	2020			2019⁽¹⁾
	(In millions)
Operating revenues	$	531		$	103
Operating expenses	264			62
Operating income	267			41
Net income	217			34
Other comprehensive loss	(1		)	(11		)

(1)

Although Altus’ interests in EPIC Crude Holdings, LP, Permian Highway Pipeline LLC, and Breviloba, LLC were acquired in March, May, and July 2019, respectively, the combined financial results are presented for the nine months ended September 30, 2019 for comparability.