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EQUITY METHOD INTERESTS
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INTERESTS EQUITY METHOD INTERESTS
The Kinetik Class A Common Stock held by the Company is treated as an interest in equity securities measured at fair value. The Company elected the fair value option for measuring its equity method interest in Kinetik based on practical expedience, variances in reporting timelines, and cost-benefit considerations. The fair value of the Company’s interest in Kinetik is determined using observable share prices on a major exchange, a Level 1 fair value measurement. Fair value adjustments and dividends received are recorded as a component of “Other, net” under “Revenues and other” in the Company’s statement of consolidated operations.
The initial interest in Kinetik was measured at fair value based on the Company’s ownership of approximately 12.9 million shares of Kinetik Class A Common stock as of February 22, 2022. In March 2022, the Company sold four million of its shares of Kinetik Class A Common Stock for a loss, including underwriters fees, of $25 million, which was recorded as a component of “Gain on divestitures, net” under “Revenues and other” in the Company’s statement of consolidated operations. Refer to Note 3–Acquisitions and Divestitures for further detail.
During the second quarter of 2022, Kinetik issued a two-for-one split of its Common Stock. Also during 2022, the Company received approximately 1.1 million shares of Kinetik’s Class A Common Stock as paid-in-kind dividends. Finally, in 2022, the Company recorded fair value adjustments on its ownership in Kinetik totaling a gain of approximately $32 million. The Company’s ownership of 18.9 million shares represented approximately 13 percent of Kinetik’s outstanding Class A Common Stock as of December 31, 2022.
The following table presents the activity in the Company’s equity method interest in Kinetik for the year ended December 31, 2022:
Kinetik Holdings Inc
(In millions)
Balance at December 31, 2021
$— 
Initial interest upon closing the BCP Business Combination802 
Sale of Class A shares(250)
Paid-in-kind dividend40 
Fair value adjustments32 
Balance at December 31, 2022
$624 
During the year ending December 31, 2022, the Company recorded GPT costs for midstream services provided by Kinetik subsequent to the close of the BCP Business Combination transaction totaling $91 million. As of December 31, 2022, the Company has recorded accrued GPT costs payable to Kinetik of approximately $17 million. In addition, the Company sold natural gas and NGLs to Kinetik during 2022 totaling $8 million. As of December 31, 2022, the Company has recorded accrued receivables from Kinetik of approximately $8 million.
Prior to the deconsolidation of Altus on February 22, 2022, the Company, through its ownership of Altus, had the following equity method interests in four Permian Basin long-haul pipeline entities, which were accounted for under the equity method of accounting at December 31, 2021. For each of the equity method interests, Altus had 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. The table below presents the ownership percentages held by the Company and associated carrying values for each entity:
InterestDecember 31, 2021
(In millions)
Gulf Coast Express Pipeline LLC16.0 %$274 
EPIC Crude Holdings, LP15.0 %— 
Permian Highway Pipeline LLC26.7 %630 
Shin Oak Pipeline (Breviloba, LLC)33.0 %461 
Total Altus equity method interests$1,365 
The following table presents the activity in Altus’ equity method interests for the years ended December 31, 2022 and 2021:
Gulf Coast Express Pipeline LLCEPIC Crude Holdings, LPPermian Highway Pipeline LLCBreviloba, LLCTotal
(In millions)
Balance at December 31, 2020$284 $176 $615 $480 $1,555 
Capital contributions— 2 26 — 28 
Distributions(50)— (74)(49)(173)
Equity income (loss), net40 (19)63 30 114 
Accumulated other comprehensive loss— 1 — — 1 
Impairment(1)
— (160)— — (160)
Balance at December 31, 2021274 — 630 461 1,365 
Capital contributions— 2 — — 2 
Distributions(5)— (9)(7)(21)
Equity income (loss), net8 (2)10 5 21 
Deconsolidation of Altus(277)— (631)(459)(1,367)
Balance at December 31, 2022$— $— $— $— $— 
(1)Prior to the deconsolidation of Altus on February 22, 2022, the Company impaired its investment in EPIC in the fourth quarter of 2021. Refer to Note 1—Summary of Significant Accounting Policies for further details on this impairment charge.
For discussion of the financial statement impacts related to the deconsolidation of ALTM, refer to Note 3—Acquisitions and Divestitures.