INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Total Income Tax Provision (Benefit)

The total income tax provision (benefit) consists of the following:

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Current income taxes:
Federal	$	(15	)	$	(1,041	)	$	—
State	—			—			—
	(15		)	(1,041		)	—
Deferred income taxes:
Federal	67,516			(10,464		)	5,413
State	(2,601		)	1,004			1,628
	64,915			(9,460		)	7,041
Total	$	64,900		$	(10,501	)	$	7,041

Reconciliation of Tax on Income (Loss) Before Income Taxes and Total Tax Expense (Benefit)

A reconciliation of the tax on the Company’s net loss before income taxes and total tax expense (benefit) is shown below:

	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Income tax benefit at U.S. statutory rate	$	(267,540	)	$	(2,255	)	$	(4,037	)
Income tax expense (benefit) attributable to Apache limited partner	205,844			(891		)	—
Income tax benefit attributable to Preferred Unit limited partners	(1,879		)	—			—
State tax expense (benefit)(1)	(2,610		)	818			1,058
Change in U.S. tax rate	—			—			1,843
Valuation allowance(1)	130,988			(8,177		)	8,177
All other, net	97			4			—
Income tax expense (benefit)	$	64,900		$	(10,501	)	$	7,041

(1) The change in state valuation allowance is included as a component of state income tax.

Net Deferred Tax Assets (Liabilities)

The net deferred tax assets consists of the following:

	December 31,
	2019			2018
	(In thousands)
Deferred tax assets:
Investment in partnership	$	103,195		$	65,851
Asset retirement obligation	451			220
Net operating losses	26,749			495
Property, plant, and equipment	5,679			—
Other	—			1,212
Total deferred tax assets	136,074			67,778
Valuation allowance	(135,024		)	—
Net deferred tax assets	1,050			67,778
Deferred tax liabilities:
Property, plant, and equipment	—			2,863
Other	1,050			—
Net deferred tax assets	$	—		$	64,915

Net deferred tax assets and liabilities are included in the balance sheet as follows:

	December 31,
	2019		2018
	(In thousands)
Assets:
Deferred tax asset	$	—	$	67,558
Liabilities:
Deferred tax liability	—		2,643
Net deferred tax assets	$	—	$	64,915

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	December 31,
	2019			2018
	(In thousands)
Balance at beginning of year	$	—		$	—
Additions based on tax positions related to the prior year	—			—
Additions based on tax positions related to the current year	(2,057		)	—
Reductions for tax positions of prior years	—			—
Balance at end of year	$	(2,057	)	$	—