InfraREIT (HIFR) 10-Q 2 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 28, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	HIFR
Entity Registrant Name	InfraREIT, Inc.
Entity Central Index Key	1,506,401
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,778,490

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 9,662	$ 17,612
Restricted cash	1,682	1,682
Due from affiliates	27,327	32,554
Inventory	7,172	7,276
Prepaids and other current assets	1,022	726
Total current assets	46,865	59,850
Electric Plant, net	1,710,420	1,640,820
Goodwill	138,384	138,384
Other Assets	36,433	37,646
Total Assets	1,932,102	1,876,700
Current Liabilities
Accounts payable and accrued liabilities	38,367	37,372
Short-term borrowings		137,500
Current portion of long-term debt	67,527	7,849
Dividends and distributions payable	15,169	15,161
Accrued taxes	4,980	4,415
Total current liabilities	126,043	202,297
Long-Term Debt, Less Deferred Financing Costs	845,957	709,488
Regulatory Liability	25,098	21,004
Total liabilities	997,098	932,789
Commitments and Contingencies
Equity
Common stock, $0.01 par value; 450,000,000 shares authorized; 43,778,490 and 43,772,283 issued and outstanding as of June 30, 2017 and December 31, 2016, respectively	438	438
Additional paid-in capital	705,955	705,845
Accumulated deficit	(24,874)	(18,243)
Total InfraREIT, Inc. equity	681,519	688,040
Noncontrolling interest	253,485	255,871
Total equity	935,004	943,911
Total Liabilities and Equity	$ 1,932,102	$ 1,876,700

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par or stated value per share	$ 0.01	$ 0.01
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	43,778,490	43,772,283
Common stock, shares, outstanding	43,778,490	43,772,283

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Lease revenue	$ 40,422	$ 33,785	$ 80,046	$ 67,450
Operating costs and expenses
General and administrative expense	6,866	4,980	12,847	10,525
Depreciation	12,982	11,410	25,669	22,484
Total operating costs and expenses	19,848	16,390	38,516	33,009
Income from operations	20,574	17,395	41,530	34,441
Other (expense) income
Interest expense, net	(10,141)	(9,055)	(19,839)	(17,897)
Other income, net	17	1,137	20	1,896
Total other expense	(10,124)	(7,918)	(19,819)	(16,001)
Income before income taxes	10,450	9,477	21,711	18,440
Income tax expense	321	293	565	479
Net income	10,129	9,184	21,146	17,961
Less: Net income attributable to noncontrolling interest	2,821	2,576	5,889	5,038
Net income attributable to InfraREIT, Inc.	$ 7,308	$ 6,608	$ 15,257	$ 12,923
Net income attributable to InfraREIT, Inc. common stockholders per share:
Basic	$ 0.17	$ 0.15	$ 0.35	$ 0.30
Diluted	0.17	0.15	0.35	0.30
Cash dividends declared per common share	$ 0.25	$ 0.25	$ 0.50	$ 0.50

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net income	$ 21,146	$ 17,961
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	25,669	22,484
Amortization of deferred financing costs	2,030	2,007
Allowance for funds used during construction - other funds		(1,896)
Equity based compensation	285	520
Changes in assets and liabilities:
Due from affiliates	5,227	6,572
Inventory	104	83
Prepaids and other current assets	(296)	(490)
Accounts payable and accrued liabilities	1,986	13,308
Net cash provided by operating activities	56,151	60,549
Cash flows from investing activities
Additions to electric plant	(91,601)	(120,615)
Net cash used in investing activities	(91,601)	(120,615)
Cash flows from financing activities
Proceeds from short-term borrowings	65,500	50,500
Repayments of short-term borrowings	(203,000)	(56,000)
Proceeds from borrowings of long-term debt	200,000	100,000
Repayments of long-term debt	(3,869)	(3,660)
Deferred financing costs	(801)	(649)
Dividends and distributions paid	(30,330)	(28,790)
Net cash provided by financing activities	27,500	61,401
Net (decrease) increase in cash and cash equivalents	(7,950)	1,335
Cash and cash equivalents at beginning of period	17,612	9,471
Cash and cash equivalents at end of period	$ 9,662	$ 10,806

Description of Business and Pre

Description of Business and Presentation of Financial Statements	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business and Presentation of Financial Statements	1. Description of Business and Presentation of Financial Statements Basis of Presentation InfraREIT, Inc. is a Maryland corporation, which may be referred to in these financial statements as the “Company,” “we,” “us” and “our.” These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2017 (2016 Form 10-K). We held 72.2% of the outstanding partnership units (OP Units) in InfraREIT Partners, LP (Operating Partnership or InfraREIT LP) as of June 30, 2017 and are its general partner. We include the accounts of the Operating Partnership and its subsidiaries in our consolidated financial statements. Hunt Consolidated, Inc. affiliates, current or former employees and members of our board of directors held the other 27.8% of the outstanding OP Units as of June 30, 2017. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Recent Accounting Guidance Recent Accounting Guidance Not Yet Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 203): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	2 . Related Party Transactions Our subsidiary, Sharyland Distribution & Transmission Services, L.L.C. (SDTS), leases all our electric transmission and distribution assets (regulated assets) through several lease agreements to Sharyland Utilities, L.P. (Sharyland), a Texas based utility and our sole tenant. Under the leases, we have agreed to fund capital expenditures for footprint projects. Our leases define “footprint projects” to be transmission or distribution projects primarily situated within our distribution service territory, or that physically hang from our existing transmission assets or that are physically located within one of our substations. We earned lease revenues from Sharyland under these agreements of $40.4 million and $33.8 million during the three months ended June 30, 2017 and 2016, respectively. We earned lease revenues of $80.0 million and $67.5 million from Sharyland during the six months ended June 30, 2017 and 2016, respectively. In connection with our leases with Sharyland, we recorded a deferred rent liability of $23.0 million and $15.6 million as of June 30, 2017 and December 31, 2016, respectively, which is included in accounts payable and accrued liabilities on the Consolidated Balance Sheets. In addition to rent payments that Sharyland makes to us, we and Sharyland also make payments to each other under the leases that primarily consist of payments to reimburse Sharyland for the costs of gross plant and equipment added to our regulated assets. For the six months ended June 30, 2017 and 2016, the net amount of payments we made to Sharyland was $93.9 million and $120.1 million, respectively. As of June 30, 2017 and December 31, 2016, accounts payable and accrued liabilities on the Consolidated Balance Sheets included $9.5 million and $13.7 million, respectively, related to amounts owed to Sharyland. As of June 30, 2017 and December 31, 2016, amounts due from affiliates on the Consolidated Balance Sheets included $27.3 million and $32.6 million, respectively, related to amounts owed by Sharyland associated with our leases. The management fee paid to Hunt Utility Services, LLC (Hunt Manager) for the six months ended June 30, 2017 and 2016 was $10.5 million and $6.8 million, respectively. As of December 31, 2016, there was $3.5 million accrued associated with management fees on the Consolidated Balance Sheets. There were no prepaid or accrued amounts associated with the management fees on the Consolidated Balance Sheets as of June 30, 2017. Additionally, during the six months ended June 30, 2017 and 2016, we paid Hunt Manager $0.2 million and less than $0.1 million, respectively, for reimbursement of annual software license and maintenance fees and other expenses in accordance with our management agreement. Our management agreement with Hunt Manager provided for an annual base fee, or management fee, of $13.1 million from April 1, 2015 through March 31, 2016. Effective as of April 1, 2016, the annual base fee was automatically adjusted to $14.0 million annually through March 31, 2017. Effective as of April 1, 2017, the annual base fee was automatically adjusted to $14.2 million annually through March 31, 2018. The base fee for each twelve month period beginning each April 1 thereafter will equal 1.50% of our total equity as of December 31 of the immediately preceding year, subject to a $30.0 million cap. The term of the management agreement expires December 31, 2019, and will automatically renew for successive five year terms unless a majority of our independent directors decides to terminate the agreement. For information related to a new agreement (Side Letter) entered into between SDTS and Sharyland on July 21, 2017 related to certain terms and conditions to address actual or potential conflicts of interest arising between the parties in connection with a proposed transaction with Oncor Electric Delivery Company LLC (Oncor), see Note 17, Subsequent Events

Electric Plant and Depreciation

Electric Plant and Depreciation	6 Months Ended
	Jun. 30, 2017
Public Utilities Property Plant And Equipment [Abstract]
Electric Plant and Depreciation	3. Electric Plant and Depreciation The major classes of electric plant are as follows: (In thousands) June 30, 2017 December 31, 2016 Electric plant: Transmission plant $ 1,236,848 $ 1,203,164 Distribution plant 614,174 575,648 General plant 15,958 15,959 Total plant in service 1,866,980 1,794,771 Construction work in progress 111,706 107,189 Total electric plant 1,978,686 1,901,960 Accumulated depreciation (268,266 ) (261,140 ) Electric plant, net $ 1,710,420 $ 1,640,820 General plant consists primarily of a warehouse, buildings and associated assets. Construction work in progress (CWIP) relates to various transmission and distribution projects underway. The amounts of CWIP consist primarily of route development expenditures, labor and materials expenditures, right of way acquisitions, engineering services and legal fees. Electric plant, net includes plant acquisition adjustments of $27.2 million and $27.7 million as of June 30, 2017 and December 31, 2016, respectively. See Note 17, Subsequent Events

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	4. Goodwill Goodwill represents the excess of costs of an acquired business over the fair value of the assets acquired, less liabilities assumed. We conduct an impairment test of goodwill at least annually. As of June 30, 2017 and December 31, 2016, $138.4 million was recorded as goodwill on the Consolidated Balance Sheets.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Other Assets	5. Other Assets Other assets are as follows: June 30, 2017 December 31, 2016 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Deferred financing costs on undrawn revolver $ 967 $ (494 ) $ 473 $ 967 $ (397 ) $ 570 Other regulatory assets: Deferred financing costs 28,562 (18,914 ) 9,648 27,761 (16,997 ) 10,764 Deferred costs recoverable in future years 23,793 — 23,793 23,793 — 23,793 Other regulatory assets 52,355 (18,914 ) 33,441 51,554 (16,997 ) 34,557 Investments 2,519 — 2,519 2,519 — 2,519 Other assets $ 55,841 $ (19,408 ) $ 36,433 $ 55,040 $ (17,394 ) $ 37,646 Deferred financing costs on undrawn revolver consist of costs incurred in connection with the establishment of the InfraREIT LP revolving credit facility, see Note 6, Borrowings Under Credit Facilities Other regulatory assets consist of deferred financing costs within our regulated subsidiary, SDTS. The deferred financing costs primarily consist of debt issuance costs incurred in connection with the construction of our regulated assets or the refinancing of related debt. See Note 6, Borrowings Under Credit Facilities Long-Term Debt Deferred costs recoverable in future years of $23.8 million as of June 30, 2017 and December 31, 2016 represent operating costs incurred from inception of Sharyland through 2007. Recovery of these costs has been requested in the pending rate case of Sharyland and SDTS (Rate Case) currently before the Public Utility Commission of Texas (PUCT). We have determined that these costs are probable of recovery through future rates based on orders of the PUCT in Sharyland’s prior rate cases and regulatory precedent. See Note 9, Regulatory Matters Subsequent Events In connection with the acquisition of Cap Rock Holding Corporation, we received a participation in the National Rural Cooperative Corporation (NRUCFC). We account for this investment under the cost method of accounting. We believe that the investment is not impaired at June 30, 2017 and December 31, 2016.

Borrowings Under Credit Facilit

Borrowings Under Credit Facilities	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Borrowings Under Credit Facilities	6. Borrowings Under Credit Facilities InfraREIT LP Revolving Credit Facility In 2014, InfraREIT LP entered into a $75.0 million revolving credit facility, led by Bank of America, N.A., as administrative agent, with up to $15.0 million available for issuance of letters of credit and a maturity date of December 10, 2019. The revolving credit facility is secured by certain assets of InfraREIT LP, including accounts and other personal property, and is guaranteed by us and Transmission and Distribution Company, L.L.C. (TDC), with the TDC guarantee secured by the assets of, and InfraREIT LP’s equity interests in, TDC on materially the same basis as TDC’s senior secured notes described below in Note 7, Long-Term Debt Borrowings and other extensions of credit under the revolving credit facility bear interest, at InfraREIT LP’s election, at a rate equal to (1) the one, two, three or six month London Interbank Offered Rate (LIBOR) plus 2.5%, or (2) a base rate (equal to the highest of (a) the Federal Funds Rate plus ½ of 1%, (b) the administrative agent’s prime rate and (c) LIBOR plus 1%) plus 1.5%. Letters of credit are subject to a letter of credit fee equal to the daily amount available to be drawn times 2.5%. InfraREIT LP is also required to pay a commitment fee and other customary fees under the revolving credit facility. InfraREIT LP may prepay amounts outstanding under the revolving credit facility in whole or in part without premium or penalty. As of June 30, 2017 and December 31, 2016, there were no borrowings or letters of credit outstanding, and there was $75.0 million of borrowing capacity available under the revolving credit facility. As of June 30, 2017 and December 31, 2016, InfraREIT LP was in compliance with all debt covenants under the credit agreement. SDTS Revolving Credit Facility In 2014, SDTS entered into the third amended and restated credit agreement led by Royal Bank of Canada, as administrative agent, with a maturity date of December 10, 2019. The credit agreement contains a revolving credit facility with a borrowing capacity up to $250.0 million with up to $25.0 million of the revolving credit facility available for issuance of letters of credit and up to $5.0 million of the revolving credit facility available for swingline loans. The revolving credit facility is secured by certain of SDTS’s regulated assets, the leases, certain accounts and TDC’s equity interests in SDTS on the same basis as SDTS’s various senior secured note obligations described below in Note 7, Long-Term Debt The interest rate for the revolving credit facility is based, at SDTS’s option, at a rate equal to either (1) a base rate, determined as the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus ½ of 1% and (c) LIBOR plus 1.00% per annum, plus a margin of either 0.75% or 1.00% per annum, depending on the total debt to capitalization ratio of SDTS on a consolidated basis or (2) the one, two, three or six month LIBOR plus a margin of either 1.75% or 2.00% per annum, depending on the total debt to capitalization ratio of SDTS on a consolidated basis. SDTS is also required to pay a commitment fee and other customary fees under its revolving credit facility. SDTS is entitled to prepay amounts outstanding under the revolving credit facility with no prepayment penalty. In June 2017, the outstanding balance on the SDTS revolving credit facility was repaid with the proceeds from the $200.0 million SDTS senior secured term loan credit facility. See Note 7, Long-Term Debt As of June 30, 2017, SDTS had no borrowings or letters of credit outstanding, and there was $250.0 million of borrowing capacity available under this revolving credit facility. As of December 31, 2016, SDTS had $137.5 million of borrowings outstanding at a weighted average interest rate of 2.50% with no letters of credit outstanding and $112.5 million of borrowing capacity available under this revolving credit facility. As of June 30, 2017 and December 31, 2016, SDTS was in compliance with all debt covenants under the credit agreement. The credit agreements require InfraREIT LP and SDTS to comply with customary covenants for facilities of this type, including: debt to capitalization ratios, debt service coverage ratios, limitations on additional debt, liens, investments, mergers, acquisitions, dispositions or entry into any line of business other than the business of the transmission and distribution of electric power and the provision of ancillary services and certain restrictions on the payment of dividends. The debt to capitalization ratio on the SDTS credit facility is calculated on a combined basis with Sharyland. The credit agreements also contain restrictions on the amount of Sharyland’s indebtedness and other restrictions on, and covenants applicable to, Sharyland. See Note 17, Subsequent Events The revolving credit facilities of InfraREIT LP and SDTS are subject to customary events of default. If an event of default occurs under either facility and is continuing, the lenders may accelerate amounts due under such revolving credit facility.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2017
Debt Instruments [Abstract]
Long-Term Debt	7. Long-Term Debt Long-term debt consisted of the following: June 30, 2017 December 31, 2016 (In thousands) Maturity Date Amount Outstanding Interest Rate Amount Outstanding Interest Rate TDC Senior secured notes - $25.0 million December 30, 2020 $ 16,875 8.50% $ 17,500 8.50% SDTS Senior secured notes - $60.0 million June 20, 2018 60,000 5.04% 60,000 5.04% Senior secured term loan - $200.0 million June 5, 2020 200,000 2.33% — n/a Senior secured notes - $400.0 million December 3, 2025 400,000 3.86% 400,000 3.86% Senior secured notes - $100.0 million January 14, 2026 100,000 3.86% 100,000 3.86% Senior secured notes - $53.5 million December 30, 2029 41,592 7.25% 42,600 7.25% Senior secured notes - $110.0 million September 30, 2030 95,130 6.47% 97,366 6.47% Total SDTS debt 896,722 699,966 Total long-term debt 913,597 717,466 Less unamortized deferred financing costs (113 ) (129 ) Total long-term debt, less deferred financing costs 913,484 717,337 Less current portion of long-term debt (67,527 ) (7,849 ) Debt classified as long-term debt, less deferred financing costs $ 845,957 $ 709,488 In 2010, TDC issued $25.0 million aggregate principal amount of 8.50% per annum senior secured notes to The Prudential Insurance Company of America and affiliates (TDC Notes). Principal and interest on the TDC Notes are payable quarterly, and the TDC Notes are secured by the assets of, and InfraREIT LP’s equity interest in, TDC on materially the same basis as with lenders under InfraREIT LP’s revolving credit facility described above in Note 6, Borrowings Under Credit Facilities SDTS has $60.0 million aggregate principal amount of 5.04% per annum senior secured notes issued to The Prudential Insurance Company of America and affiliates in 2011 (2011 Notes). Interest is payable quarterly while no principal payments are due until maturity. On June 5, 2017, SDTS entered into a $200.0 million senior secured term loan credit facility (2017 Term Loan) with Canadian Imperial Bank of Commerce, New York Branch (CIBC) and Mizuho Bank, Ltd., as lenders, and CIBC as administrative agent. The interest rate for the 2017 Term Loan is based, at SDTS’s option, at a rate equal to either (1) a base rate, determined as the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus 0.5% and (c) LIBOR plus 1.00% per annum, plus a margin of 0.25% per annum or (2) LIBOR plus a margin of 1.25% per annum. The LIBOR interest period may be one, two, three or six months, but interest is payable no less frequently than quarterly. In 2015, SDTS issued $400.0 million in 10 year senior secured notes, series A (Series A Notes), and in 2016 issued an additional $100.0 million in 10 year senior secured notes, series B (Series B Notes). These senior secured notes were issued through a private placement conducted pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and bear interest at a rate of 3.86% per annum, payable semi-annually. The Series A Notes are due at maturity with outstanding accrued interest payable each June and December. The Series B Notes are due at maturity with outstanding accrued interest payable each January and July. In 2009, SDTS issued $53.5 million aggregate principal amount of 7.25% per annum senior secured notes to The Prudential Insurance Company of America and affiliates (2009 Notes). Principal and interest on the 2009 Notes are payable quarterly. In 2010, SDTS issued $110.0 million aggregate principal amount of 6.47% per annum senior secured notes to The Prudential Insurance Company of America (2010 Notes). Principal and interest on the 2010 Notes are payable quarterly. SDTS and TDC are entitled to prepay amounts outstanding under their senior secured notes, subject to a prepayment penalty equal to the excess of the discounted value of the remaining scheduled payments with respect to such notes over the amount of the prepaid notes. SDTS is entitled to prepay amounts outstanding under the 2017 Term Loan with no prepayment penalty. The 2017 Term Loan is also subject to required prepayments upon the occurrence of certain events. The agreements governing the senior secured notes and 2017 Term Loan contain customary covenants, such as debt to capitalization ratios, debt service coverage ratios, limitations on liens, dispositions, mergers, entry into other lines of business, investments and the incurrence of additional indebtedness. The debt to capitalization ratios are calculated on a combined basis with Sharyland. SDTS’s Series A Notes and Series B Notes are not required to maintain a debt service coverage ratio. As of June 30, 2017 and December 31, 2016, SDTS and TDC were in compliance with all debt covenants under the applicable agreements. See Note 17, Subsequent Events SDTS’s Series A Notes, Series B Notes, 2009 Notes, 2010 Notes, 2011 Notes and 2017 Term Loan are secured by certain of SDTS’s transmission and distribution, the leases, certain accounts and TDC’s equity interests in SDTS on the same basis as SDTS’s revolving credit facility described above in Note 6, Borrowings Under Credit Facilities The senior secured notes of TDC and SDTS and 2017 Term Loan are subject to customary events of default. If an event of default occurs with respect to the notes and is continuing, the lenders may accelerate the applicable amounts due.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	8. Fair Value of Financial Instruments The carrying amounts of our cash and cash equivalents, restricted cash, due from affiliates and accounts payable approximate fair value due to the short-term nature of these assets and liabilities. We had borrowings totaling $713.6 million and $717.5 million under our senior secured notes with a weighted average interest rate of 4.6% per annum as of June 30, 2017 and December 31, 2016, respectively. The fair value of these borrowings is estimated using discounted cash flow analysis based on current market rates. As of June 30, 2017, we had $200.0 million of borrowings under our 2017 Term Loan which was entered into at the beginning of June 2017 and accrues interest under a floating interest rate structure. Accordingly, the carrying value of such indebtedness approximated its fair value for the amounts outstanding. Financial instruments, measured at fair value, by level within the fair value hierarchy were as follows: Carrying Fair Value (In thousands) Value Level 1 Level 2 Level 3 June 30, 2017 Long-term debt $ 913,597 $ — $ 946,054 $ — December 31, 2016 Long-term debt $ 717,466 $ — $ 758,415 $ —

Regulatory Matters

Regulatory Matters	6 Months Ended
	Jun. 30, 2017
Public Utilities Rate Matters [Abstract]
Regulatory Matters	9. Regulatory Matters Regulatory Liability Our regulatory liability is established through depreciation rates related to cost of removal and represents amounts that we expect to incur in the future. As of June 30, 2017 and December 31, 2016, we recorded on the Consolidated Balance Sheets as a long-term liability $25.1 million and $21.0 million, respectively, net of actual removal costs incurred. Rate Case Filing On April 29, 2016, Sharyland filed a system-wide rate proceeding with the PUCT to update its rates (April Rate Case Filing). Pursuant to a restructuring order issued by the PUCT in 2008 allowing us to utilize a REIT structure, the April Rate Case Filing was prepared using the audited books and records of both Sharyland and SDTS and proposed rates to be set on a combined basis. However, as a result of a preliminary order issued by the PUCT in October 2016, Sharyland and SDTS filed an amended rate case application and rate filing packages (December Rate Case Filing) on December 30, 2016 with the PUCT, which supersedes the April Rate Case Filing. On March 28, 2017, an abatement of the Rate Case was granted and the hearing on the merits that was scheduled for March 29 through April 7, 2017 was canceled, pending ongoing settlement negotiations among us and the other parties to the Rate Case. On July 21, 2017, SDTS entered into an agreement with certain parties to the Rate Case (Rate Case Dismissal Agreement), which, if approved by the PUCT and subject to certain conditions, will result in the dismissal of the Rate Case. See Note 17, Subsequent Events If the Rate Case is not dismissed, the December Rate Case Filing would still be before the PUCT. For details on our December Rate Case Filing and the proposals contained therein, see Note 10, Regulatory Matters

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies SDTS and Sharyland filed the December Rate Case Filing with the PUCT on December 30, 2016. For further information regarding the Rate Case, see Note 9, Regulatory Matters In addition, from time to time, we are a party to various legal proceedings arising in the ordinary course of business. Although we cannot predict the outcome of any such legal proceedings, we do not believe the resolution of these proceedings, individually or in the aggregate, will have a material impact on our business, financial condition or results of operations, liquidity and cash flows.

Equity

Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	11. Equity We and the Operating Partnership declared cash dividends on common stock and distributions on OP Units of $0.50 per share during each of the six months ended June 30, 2017 and 2016. We paid a total of $30.3 million and $28.8 million in dividends and distributions during the six months ended June 30, 2017 and 2016, respectively.

Noncontrolling Interest

Noncontrolling Interest	6 Months Ended
	Jun. 30, 2017
Noncontrolling Interest [Abstract]
Noncontrolling Interest	12. Noncontrolling Interest We present as a noncontrolling interest the portion of any equity in entities that we control and consolidate but do not own. Generally, OP Units of our Operating Partnership participate in net income allocations and distributions and entitle their holder to the right, subject to the terms set forth in the partnership agreement, to require the Operating Partnership to redeem all or a portion of the OP Units held by such limited partner. At our option, we may satisfy this redemption with cash or by exchanging shares of InfraREIT, Inc. common stock on a one-for-one basis. As of June 30, 2017 and December 31, 2016, there were a total of 16.9 million OP Units held by the limited partners of the Operating Partnership. During the six months ended June 30, 2017 and 2016, an aggregate of 31,633 and 29,722 long-term incentive units (LTIP Units), respectively, were issued by our Operating Partnership to members of our board of directors. For additional information, refer to Note 15, Share-Based Compensation We follow the guidance issued by the FASB regarding the classification and measurement of redeemable securities. Accordingly, we have determined that the OP Units meet the requirements to be classified as permanent equity. We redeemed 6,207 OP Units with the issuance of 6,207 shares of common stock during the six months ended June 30, 2017. During the six months ended June 30, 2016, we did not redeem any OP Units.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	13. Earnings Per Share Basic earnings per share is calculated by dividing net earnings after noncontrolling interest by the weighted average shares outstanding. Diluted earnings per share is calculated similarly, except that it includes the dilutive effect of the assumed redemption of OP Units for shares of our common stock, if such redemption were dilutive. The redemption of OP Units would have been anti-dilutive during the three and six months ended June 30, 2017 and 2016. Earnings per share are calculated as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2017 2016 2017 2016 Basic net income per share: Net income attributable to InfraREIT, Inc. $ 7,308 $ 6,608 $ 15,257 $ 12,923 Weighted average common shares outstanding 43,778 43,576 43,776 43,573 Basic net income per share $ 0.17 $ 0.15 $ 0.35 $ 0.30 Diluted net income per share: Net income attributable to InfraREIT, Inc. $ 7,308 $ 6,608 $ 15,257 $ 12,923 Weighted average common shares outstanding 43,778 43,576 43,776 43,573 Redemption of Operating Partnership units — — — — Weighted average dilutive shares outstanding 43,778 43,576 43,776 43,573 Diluted net income per share $ 0.17 $ 0.15 $ 0.35 $ 0.30 Due to the anti-dilutive effect, the computation of diluted earnings per share does not reflect the following adjustments: Net income attributable to noncontrolling interest $ 2,821 $ 2,576 $ 5,889 $ 5,038 Redemption of Operating Partnership units 16,897 17,058 16,899 17,057

Leases

Leases	6 Months Ended
	Jun. 30, 2017
Leases [Abstract]
Leases	14. Leases The following table shows the composition of our lease revenue: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2017 2016 2017 2016 Base rent (straight-line) $ 40,422 $ 33,785 $ 80,046 $ 67,450 Percentage rent — — — — Total lease revenue $ 40,422 $ 33,785 $ 80,046 $ 67,450 SDTS has entered into various leases with Sharyland for all our placed in service regulated assets. The master lease agreements, as amended, expire at various dates from December 31, 2017 through December 31, 2022. Each agreement includes annual base rent while all but one agreement includes additional percentage rent (based on an agreed upon percentage of the gross revenue of Sharyland, as defined in the lease agreements, in excess of annual specified breakpoints). The rate used for percentage rent for the reported time periods varies by lease and ranges from a high of 32% to a low of 23%. Because an annual specified breakpoint must be met under our leases before we can recognize any percentage rent, we anticipate our revenue will grow over the year with little to no percentage rent recognized in the first and second quarters of each year and with the largest amounts recognized during the third and fourth quarters of each year. For details on our December Rate Case Filing and proposed leases, see Note 10, Regulatory Matters Subsequent Events

Share Based Compensation

Share Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Compensation	15. Share-Based Compensation We currently utilize the InfraREIT, Inc. 2015 Equity Incentive Plan (2015 Equity Incentive Plan) primarily to compensate the non-employee directors for their service on our board of directors. In January 2017, we issued an aggregate of 31,633 LTIP Units to members of our board of directors with a grant date fair value of $18.02 per LTIP Unit and an aggregate fair value of $0.6 million. The 31,633 LTIP Units will vest in January 2018, subject to continued service. In January 2016, we issued an aggregate of 4,735 shares of common stock and 29,722 LTIP Units to members of our board of directors with a grant date fair value of $18.58 per common share or LTIP Unit and an aggregate fair value of $0.6 million. The 29,722 LTIP Units vested January 2017, and the 4,735 shares of common stock fully vested upon issuance. In April 2016, we issued 5,497 shares of common stock to members of our board of directors with a grant date fair value of $16.81 per common share and an aggregate fair value of $0.1 million. These shares of common stock fully vested upon issuance. The compensation expense, which represents the fair value of the stock or LTIP Unit measured at market price at the date of grant, is recognized on a straight-line basis over the vesting period. For the three months ended June 30, 2017 and 2016, $0.2 million was recognized as compensation expense related to these grants and is included in general and administrative expense on the Consolidated Statements of Operations. We recognized $0.3 million and $0.5 million of compensation expense during the six months ended June 30, 2017 and 2016, respectively. The unamortized compensation expense related to these grants was $0.3 million as of June 30, 2017.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	16. Supplemental Cash Flow Information Supplemental cash flow information and non-cash investing and financing activities are as follows: Six Months Ended June 30, (In thousands) 2017 2016 Supplemental cash flow information Cash paid during the period for interest $ 19,007 $ 15,745 Non-cash investing and financing activities Change in accrued additions to electric plant 3,912 1,544 Allowance for funds used during construction - debt 1,557 1,779 Redemption of operating partnership units for common stock 110 — Dividends and distributions payable 15,169 15,158

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent Events On July 21, 2017, SDTS and Sharyland entered the Rate Case Dismissal Agreement with certain parties to the Rate Case regarding the proposed dismissal of the Rate Case and signed a definitive agreement (Definitive Agreement) with Oncor to exchange SDTS’s retail distribution assets for a group of Oncor’s transmission assets located in West and Central Texas. The Rate Case Dismissal Agreement, if approved by the PUCT, will result in the dismissal of the Rate Case if the transaction with Oncor is completed. Once the Rate Case is dismissed, SDTS and Sharyland will continue operating under their existing regulatory structure, and the current regulatory parameters will remain in place until the next rate case, including an allowed return on equity of 9.7%, a capital structure of 55% debt and 45% equity and a cost of debt of 6.73%. Sharyland and SDTS will be required to file a new rate case in the calendar year 2020 with a test year ending December 31, 2019. Under the Definitive Agreement with Oncor, SDTS will exchange approximately $400 million of net distribution assets for approximately $380 million of transmission assets located in West and Central Texas and approximately $20 million in cash from Oncor, subject to customary adjustments to be made at and following the closing of the transaction. These transactions are structured to qualify, in part, as a simultaneous tax deferred like-kind exchange of assets to the extent that the assets exchanged are of “like kind” (within the meaning of Section 1031 of the Internal Revenue Code of 1986, as amended). Upon closing, Sharyland will lease these assets from SDTS and operate them under an amended certificate of convenience and necessity. Thereafter, SDTS will continue to own and lease to Sharyland certain substations related to its distribution assets but Sharyland will exit the retail distribution business. The effectiveness of the Rate Case dismissal and the closing of the exchange transaction are dependent upon each other and will be subject to a number of closing conditions, including approval by the PUCT of: the exchange transaction, the Rate Case dismissal and Oncor’s rate case settlement, in each case on terms consistent with those proposed by the relevant parties. Under the Definitive Agreement, SDTS, Sharyland and Oncor are required to file a joint Sale-Transfer-Merger application (STM) with the PUCT no later than August 4, 2017. Key parties to the Rate Case also support the exchange transaction and are requesting that the PUCT approve the STM. The closing of the exchange transaction is also contingent upon Oncor’s parent company obtaining consent of the U.S. Bankruptcy Court for the District of Delaware and SDTS obtaining certain consents from its lenders, as well as other customary closing conditions. The exchange transaction is expected to close in the fourth quarter of 2017. In connection with the Definitive Agreement, on July 21, 2017, SDTS and Sharyland entered into the Side Letter in which they agreed to certain terms and conditions to address the actual or potential conflicts of interest arising between SDTS and Sharyland in connection with the transaction with Oncor. Specifically, the Side Letter includes, among other things: (a) certain representations and warranties from Sharyland that correspond to representations and warranties of SDTS under the Definitive Agreement relating to certain matters for which SDTS relies, in whole or in part, upon Sharyland under the leases and as operator of the assets; (b) a mutual covenant of SDTS and Sharyland to not take actions that would cause the other party to breach the Definitive Agreement; and (c) an allocation of expenses incurred in connection with the transactions. The Side Letter also provides that SDTS and Sharyland will amend the leases at closing of the transaction to reflect SDTS’s rights related to funding and ownership of future capital expenditure rights in the service territory previously certificated to Sharyland and will cooperate to resolve other matters arising in connection with the transactions.

Description of Business and P23

Description of Business and Presentation of Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation InfraREIT, Inc. is a Maryland corporation, which may be referred to in these financial statements as the “Company,” “we,” “us” and “our.” These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2017 (2016 Form 10-K). We held 72.2% of the outstanding partnership units (OP Units) in InfraREIT Partners, LP (Operating Partnership or InfraREIT LP) as of June 30, 2017 and are its general partner. We include the accounts of the Operating Partnership and its subsidiaries in our consolidated financial statements. Hunt Consolidated, Inc. affiliates, current or former employees and members of our board of directors held the other 27.8% of the outstanding OP Units as of June 30, 2017.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Recent Accounting Guidance	Recent Accounting Guidance Recent Accounting Guidance Not Yet Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 203): Restricted Cash (A Consensus of the FASB Emerging Issues Task Force) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.

Electric Plant and Depreciati24

Electric Plant and Depreciation (Tables)	6 Months Ended
	Jun. 30, 2017
Public Utilities Property Plant And Equipment [Abstract]
Schedule of Major Classes of Electric Plant	The major classes of electric plant are as follows: (In thousands) June 30, 2017 December 31, 2016 Electric plant: Transmission plant $ 1,236,848 $ 1,203,164 Distribution plant 614,174 575,648 General plant 15,958 15,959 Total plant in service 1,866,980 1,794,771 Construction work in progress 111,706 107,189 Total electric plant 1,978,686 1,901,960 Accumulated depreciation (268,266 ) (261,140 ) Electric plant, net $ 1,710,420 $ 1,640,820

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Summary of Other Assets	Other assets are as follows: June 30, 2017 December 31, 2016 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Deferred financing costs on undrawn revolver $ 967 $ (494 ) $ 473 $ 967 $ (397 ) $ 570 Other regulatory assets: Deferred financing costs 28,562 (18,914 ) 9,648 27,761 (16,997 ) 10,764 Deferred costs recoverable in future years 23,793 — 23,793 23,793 — 23,793 Other regulatory assets 52,355 (18,914 ) 33,441 51,554 (16,997 ) 34,557 Investments 2,519 — 2,519 2,519 — 2,519 Other assets $ 55,841 $ (19,408 ) $ 36,433 $ 55,040 $ (17,394 ) $ 37,646

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Instruments [Abstract]
Components of Long-Term Debt	Long-term debt consisted of the following: June 30, 2017 December 31, 2016 (In thousands) Maturity Date Amount Outstanding Interest Rate Amount Outstanding Interest Rate TDC Senior secured notes - $25.0 million December 30, 2020 $ 16,875 8.50% $ 17,500 8.50% SDTS Senior secured notes - $60.0 million June 20, 2018 60,000 5.04% 60,000 5.04% Senior secured term loan - $200.0 million June 5, 2020 200,000 2.33% — n/a Senior secured notes - $400.0 million December 3, 2025 400,000 3.86% 400,000 3.86% Senior secured notes - $100.0 million January 14, 2026 100,000 3.86% 100,000 3.86% Senior secured notes - $53.5 million December 30, 2029 41,592 7.25% 42,600 7.25% Senior secured notes - $110.0 million September 30, 2030 95,130 6.47% 97,366 6.47% Total SDTS debt 896,722 699,966 Total long-term debt 913,597 717,466 Less unamortized deferred financing costs (113 ) (129 ) Total long-term debt, less deferred financing costs 913,484 717,337 Less current portion of long-term debt (67,527 ) (7,849 ) Debt classified as long-term debt, less deferred financing costs $ 845,957 $ 709,488

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Financial Instruments Measured at Fair Value	Financial instruments, measured at fair value, by level within the fair value hierarchy were as follows: Carrying Fair Value (In thousands) Value Level 1 Level 2 Level 3 June 30, 2017 Long-term debt $ 913,597 $ — $ 946,054 $ — December 31, 2016 Long-term debt $ 717,466 $ — $ 758,415 $ —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Computation of Earnings Per Share	Earnings per share are calculated as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2017 2016 2017 2016 Basic net income per share: Net income attributable to InfraREIT, Inc. $ 7,308 $ 6,608 $ 15,257 $ 12,923 Weighted average common shares outstanding 43,778 43,576 43,776 43,573 Basic net income per share $ 0.17 $ 0.15 $ 0.35 $ 0.30 Diluted net income per share: Net income attributable to InfraREIT, Inc. $ 7,308 $ 6,608 $ 15,257 $ 12,923 Weighted average common shares outstanding 43,778 43,576 43,776 43,573 Redemption of Operating Partnership units — — — — Weighted average dilutive shares outstanding 43,778 43,576 43,776 43,573 Diluted net income per share $ 0.17 $ 0.15 $ 0.35 $ 0.30 Due to the anti-dilutive effect, the computation of diluted earnings per share does not reflect the following adjustments: Net income attributable to noncontrolling interest $ 2,821 $ 2,576 $ 5,889 $ 5,038 Redemption of Operating Partnership units 16,897 17,058 16,899 17,057

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2017
Leases [Abstract]
Schedule of Composition of Lease Revenue	The following table shows the composition of our lease revenue: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2017 2016 2017 2016 Base rent (straight-line) $ 40,422 $ 33,785 $ 80,046 $ 67,450 Percentage rent — — — — Total lease revenue $ 40,422 $ 33,785 $ 80,046 $ 67,450

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information and Non-cash Investing and Financing Activities	Supplemental cash flow information and non-cash investing and financing activities are as follows: Six Months Ended June 30, (In thousands) 2017 2016 Supplemental cash flow information Cash paid during the period for interest $ 19,007 $ 15,745 Non-cash investing and financing activities Change in accrued additions to electric plant 3,912 1,544 Allowance for funds used during construction - debt 1,557 1,779 Redemption of operating partnership units for common stock 110 — Dividends and distributions payable 15,169 15,158

Description of Business and P31

Description of Business and Presentation of Financial Statements - Additional Information (Details)	6 Months Ended
	Jun. 30, 2017
Description Of Business And Presentation Of Financial Statements [Line Items]
Percentage of partnership units outstanding	72.20%
Hunt Consolidated Incorporation
Description Of Business And Presentation Of Financial Statements [Line Items]
Percentage of partnership units outstanding	27.80%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Due from affiliates	$ 27,327,000		$ 27,327,000					$ 32,554,000
Hunt Utility Services, LLC
Related Party Transaction [Line Items]
Payment for management fee			10,500,000	$ 6,800,000
Prepaid management fee	0		0
Accrued management fee	$ 0		$ 0					3,500,000
Management fee						$ 14,000,000	$ 13,100,000
Management agreement expiration date			Dec. 31, 2019
Agreement successive renewal terms			5 years
Management fee, description			The base fee for each twelve month period beginning each April 1 thereafter will equal 1.50% of our total equity as of December 31 of the immediately preceding year, subject to a $30.0 million cap
Investment management fee equity multiplier	1.50%		1.50%
Management fee cap	$ 30,000,000		$ 30,000,000
Hunt Utility Services, LLC | Scenario, Forecast
Related Party Transaction [Line Items]
Management fee					$ 14,200,000
Maximum | Hunt Utility Services, LLC
Related Party Transaction [Line Items]
Reimbursement of annual software license and maintenance fees and other expenses			200,000	100,000
Sharyland
Related Party Transaction [Line Items]
Lease revenue from related party	40,400,000	$ 33,800,000	80,000,000	67,500,000
Deferred rent liability	23,000,000		23,000,000					15,600,000
Payments to acquire plant, and equipment			93,900,000	$ 120,100,000
Accounts payable and accrued liabilities	9,500,000		9,500,000					13,700,000
Due from affiliates	$ 27,300,000		$ 27,300,000					$ 32,600,000

Electric Plant and Depreciati33

Electric Plant and Depreciation - Schedule of Major Classes of Electric Plant (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Electric plant:
Transmission plant	$ 1,236,848	$ 1,203,164
Distribution plant	614,174	575,648
General plant	15,958	15,959
Total plant in service	1,866,980	1,794,771
Construction work in progress	111,706	107,189
Total electric plant	1,978,686	1,901,960
Accumulated depreciation	(268,266)	(261,140)
Electric plant, net	$ 1,710,420	$ 1,640,820

Electric Plant and Depreciati34

Electric Plant and Depreciation - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Public Utilities Property Plant And Equipment [Abstract]
Electric plant, net includes plant acquisition adjustments	$ 27.2	$ 27.7

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 138,384	$ 138,384

Other Assets - Summary of Other

Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other Assets Noncurrent [Abstract]
Deferred financing costs on undrawn revolver, Gross Carrying Amount	$ 967	$ 967
Other regulatory assets Deferred financing costs, Gross Carrying Amount	28,562	27,761
Other regulatory assets Deferred costs recoverable in future years, Gross Carrying Amount	23,793	23,793
Other regulatory assets, Gross Carrying Amount	52,355	51,554
Investments, Gross Carrying Amount	2,519	2,519
Other assets, Gross Carrying Amount	55,841	55,040
Deferred financing costs on undrawn revolver, Accumulated Amortization	(494)	(397)
Other regulatory assets Deferred financing costs, Accumulated Amortization	(18,914)	(16,997)
Other regulatory assets, Accumulated Amortization	(18,914)	(16,997)
Other assets, Accumulated Amortization	(19,408)	(17,394)
Deferred financing costs on undrawn revolver, Net Carrying Amount	473	570
Other regulatory assets Deferred financing costs, Net Carrying Amount	9,648	10,764
Other regulatory assets Deferred costs recoverable in future years, Net Carrying Amount	23,793	23,793
Other regulatory assets, Net Carrying Amount	33,441	34,557
Investments, Net Carrying Amount	2,519	2,519
Other assets, Net Carrying Amount	$ 36,433	$ 37,646

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other Assets Noncurrent [Abstract]
Deferred costs recoverable in future years	$ 23,793	$ 23,793

Borrowings Under Credit Facil38

Borrowings Under Credit Facilities - Additional Information (Details) - USD ($)	1 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2014
Line Of Credit Facility [Line Items]
Proceeds from senior secured term loan credit facility		$ 200,000,000	$ 100,000,000
SDTS Credit Agreements | 2017 Term Loan
Line Of Credit Facility [Line Items]
Proceeds from senior secured term loan credit facility	$ 200,000,000
InfraREIT LP Revolving Credit Facility
Line Of Credit Facility [Line Items]
Amount of revolving credit facility under agreement	0	0		$ 0	$ 75,000,000
Line of credit facility, remaining borrowing capacity	75,000,000	$ 75,000,000		75,000,000	15,000,000
Credit facility, maturity date		Dec. 10, 2019
Revolving credit facility, interest rate description		a rate equal to (1) the one, two, three or six month London Interbank Offered Rate (LIBOR) plus 2.5%, or (2) a base rate (equal to the highest of (a) the Federal Funds Rate plus ½ of 1%, (b) the administrative agent’s prime rate and (c) LIBOR plus 1%) plus 1.5%. Letters of credit are subject to a letter of credit fee equal to the daily amount available to be drawn times 2.5%.
Letter of credit fee multiplier		2.50%
InfraREIT LP Revolving Credit Facility | One, Two, Three or Six Month London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		2.50%
InfraREIT LP Revolving Credit Facility | Federal Funds Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		0.50%
InfraREIT LP Revolving Credit Facility | LIBOR
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.00%
InfraREIT LP Revolving Credit Facility | Base Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.50%
Third Amended and Restated Credit Agreement | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Credit facility, maturity date		Dec. 10, 2019
Credit facility, maximum borrowing capacity					250,000,000
Third Amended and Restated Credit Agreement | SDTS Credit Agreements | Letter Of Credit
Line Of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity					25,000,000
Third Amended and Restated Credit Agreement | SDTS Credit Agreements | Swingline Loans
Line Of Credit Facility [Line Items]
Line of credit facility, remaining borrowing capacity					$ 5,000,000
Revolving Credit Facility | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Amount of revolving credit facility under agreement	0	$ 0		137,500,000
Line of credit facility, remaining borrowing capacity	250,000,000	$ 250,000,000		$ 112,500,000
Revolving credit facility, interest rate description		a rate equal to either (1) a base rate, determined as the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus ½ of 1% and (c) LIBOR plus 1.00% per annum, plus a margin of either 0.75% or 1.00% per annum, depending on the total debt to capitalization ratio of SDTS on a consolidated basis or (2) the one, two, three or six month LIBOR plus a margin of either 1.75% or 2.00% per annum
Debt, weighted average interest rate				2.50%
Revolving Credit Facility | SDTS Credit Agreements | Letter Of Credit
Line Of Credit Facility [Line Items]
Amount of revolving credit facility under agreement	$ 0	$ 0		$ 0
Revolving Credit Facility | One, Two, Three or Six Month London Interbank Offered Rate (LIBOR) | SDTS Credit Agreements | Minimum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.75%
Revolving Credit Facility | One, Two, Three or Six Month London Interbank Offered Rate (LIBOR) | SDTS Credit Agreements | Maximum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		2.00%
Revolving Credit Facility | Federal Funds Rate | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		0.50%
Revolving Credit Facility | LIBOR | SDTS Credit Agreements
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.00%
Revolving Credit Facility | Base Rate | SDTS Credit Agreements | Minimum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		0.75%
Revolving Credit Facility | Base Rate | SDTS Credit Agreements | Maximum
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.00%

Long-Term Debt - Components of

Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Debt Instrument [Line Items]
Long-term debt, Amount Outstanding	$ 913,597	$ 717,466
Less unamortized deferred financing costs	(113)	(129)
Total long-term debt, less deferred financing costs	913,484	717,337
Less current portion of long-term debt	(67,527)	(7,849)
Debt classified as long-term debt, less deferred financing costs	$ 845,957	$ 709,488
TDC | Senior Secured Notes, 8.50%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	8.50%	8.50%		8.50%
Long-term debt, Amount Outstanding	$ 16,875	$ 17,500
Interest bearing note, maturity date	Dec. 30, 2020
SDTS Credit Agreements
Debt Instrument [Line Items]
Long-term debt, Amount Outstanding	$ 896,722	$ 699,966
SDTS Credit Agreements | Senior Secured Notes, 5.04%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	5.04%	5.04%	5.04%
Long-term debt, Amount Outstanding	$ 60,000	$ 60,000
Interest bearing note, maturity date	Jun. 20, 2018
SDTS Credit Agreements | Senior Secured Term Loan, 2.33%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	2.33%
Long-term debt, Amount Outstanding	$ 200,000
Interest bearing note, maturity date	Jun. 5, 2020
SDTS Credit Agreements | Senior Secured Notes, 3.86%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	3.86%	3.86%
Long-term debt, Amount Outstanding	$ 400,000	$ 400,000
Interest bearing note, maturity date	Dec. 3, 2025
SDTS Credit Agreements | Senior Secured Notes, 3.86% Maturing in 2026
Debt Instrument [Line Items]
Long-term debt, Interest Rate	3.86%	3.86%
Long-term debt, Amount Outstanding	$ 100,000	$ 100,000
Interest bearing note, maturity date	Jan. 14, 2026
SDTS Credit Agreements | Senior Secured Notes, 7.25%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	7.25%	7.25%			7.25%
Long-term debt, Amount Outstanding	$ 41,592	$ 42,600
Interest bearing note, maturity date	Dec. 30, 2029
SDTS Credit Agreements | Senior Secured Notes, 6.47%
Debt Instrument [Line Items]
Long-term debt, Interest Rate	6.47%	6.47%		6.47%
Long-term debt, Amount Outstanding	$ 95,130	$ 97,366
Interest bearing note, maturity date	Sep. 30, 2030

Long-Term Debt - Components o40

Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
TDC | Senior Secured Notes, 8.50%
Debt Instrument [Line Items]
Long-term debt, face amount	$ 25		$ 25
SDTS Credit Agreements | Senior Secured Notes, 5.04%
Debt Instrument [Line Items]
Long-term debt, face amount	60	$ 60
SDTS Credit Agreements | Senior Secured Term Loan, 2.33%
Debt Instrument [Line Items]
Long-term debt, face amount	200
SDTS Credit Agreements | Senior Secured Notes, 3.86%
Debt Instrument [Line Items]
Long-term debt, face amount	400
SDTS Credit Agreements | Senior Secured Notes, 3.86% Maturing in 2026
Debt Instrument [Line Items]
Long-term debt, face amount	100
SDTS Credit Agreements | Senior Secured Notes, 7.25%
Debt Instrument [Line Items]
Long-term debt, face amount	53.5			$ 53.5
SDTS Credit Agreements | Senior Secured Notes, 6.47%
Debt Instrument [Line Items]
Long-term debt, face amount	$ 110		$ 110

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands	Jun. 05, 2017	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Debt Instrument [Line Items]
Deferred financing costs, Net Carrying Amount		$ 473	$ 570
2017 Term Loan
Debt Instrument [Line Items]
Long-term debt, face amount		200,000
TDC | Senior Secured Notes, 8.50%
Debt Instrument [Line Items]
Long-term debt, face amount		$ 25,000				$ 25,000
Long-term debt, stated interest rate		8.50%	8.50%			8.50%
Deferred financing costs, Net Carrying Amount		$ 100	$ 100
SDTS Credit Agreements | Senior Secured Notes, 5.04%
Debt Instrument [Line Items]
Long-term debt, face amount		$ 60,000			$ 60,000
Long-term debt, stated interest rate		5.04%	5.04%		5.04%
SDTS Credit Agreements | 2017 Term Loan | Canadian Imperial Bank of Commerce, New York Branch and Mizuho Bank, Ltd.
Debt Instrument [Line Items]
Long-term debt, face amount	$ 200,000
Interest rate description		The interest rate for the 2017 Term Loan is based, at SDTS’s option, at a rate equal to either (1) a base rate, determined as the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus 0.5% and (c) LIBOR plus 1.00% per annum, plus a margin of 0.25% per annum or (2) LIBOR plus a margin of 1.25% per annum. The LIBOR interest period may be one, two, three or six months, but interest is payable no less frequently than quarterly.
SDTS Credit Agreements | 2017 Term Loan | Canadian Imperial Bank of Commerce, New York Branch and Mizuho Bank, Ltd. | Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
SDTS Credit Agreements | 2017 Term Loan | Canadian Imperial Bank of Commerce, New York Branch and Mizuho Bank, Ltd. | LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
SDTS Credit Agreements | 2017 Term Loan | Canadian Imperial Bank of Commerce, New York Branch and Mizuho Bank, Ltd. | Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.25%
SDTS Credit Agreements | 2017 Term Loan | Canadian Imperial Bank of Commerce, New York Branch and Mizuho Bank, Ltd. | One, Two, Three or Six Month London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.25%
SDTS Credit Agreements | Senior Secured Notes, 7.25%
Debt Instrument [Line Items]
Long-term debt, face amount		$ 53,500					$ 53,500
Long-term debt, stated interest rate		7.25%	7.25%				7.25%
SDTS Credit Agreements | Senior Secured Notes, 6.47%
Debt Instrument [Line Items]
Long-term debt, face amount		$ 110,000				$ 110,000
Long-term debt, stated interest rate		6.47%	6.47%			6.47%
SDTS Credit Agreements | Series A Notes
Debt Instrument [Line Items]
Long-term debt, face amount				$ 400,000
Long-term debt, stated interest rate				3.86%
Long-Term Debt Maturity Period				10 years
SDTS Credit Agreements | Series B Notes
Debt Instrument [Line Items]
Long-term debt, face amount			$ 100,000
Long-term debt, stated interest rate			3.86%
Long-Term Debt Maturity Period			10 years

Fair Value of Financial Instr42

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term Debt	$ 845,957	$ 709,488
2017 Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, face amount	200,000
Senior Secured Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term Debt	$ 713,600	$ 717,500
Debt, weighted average interest rate	4.60%	4.60%

Fair Value of Financial Instr43

Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Carrying Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	$ 913,597	$ 717,466
Level 2 | Fair Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Long-term debt	$ 946,054	$ 758,415

Regulatory Matters - Additional

Regulatory Matters - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Regulated Operations [Abstract]
Regulatory Liability	$ 25,098	$ 21,004

Equity - Additional Information

Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Equity [Abstract]
Cash dividends declared per share to shareholders	$ 0.25	$ 0.25	$ 0.50	$ 0.50
Cash distributions declared to unit holders, per unit			$ 0.50	$ 0.50
Dividends and distributions paid			$ 30,330	$ 28,790

Noncontrolling Interest - Addit

Noncontrolling Interest - Additional Information (Details) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Minority Interest [Line Items]
Description of units redeemed for cash or, at option, exchanged for common shares	one-for-one basis
OP Units held by the limited partners	16,900,000		16,900,000
Operating partnership units redeem	6,207	0
Common shares issued	6,207
LTIP Units
Minority Interest [Line Items]
Operating partnership units issued	31,633	29,722

Earnings Per Share - Computatio

Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic net income per share:
Net income attributable to InfraREIT, Inc.	$ 7,308	$ 6,608	$ 15,257	$ 12,923
Weighted average common shares outstanding	43,778	43,576	43,776	43,573
Basic net income per share	$ 0.17	$ 0.15	$ 0.35	$ 0.30
Diluted net income per share:
Net income attributable to InfraREIT, Inc.	$ 7,308	$ 6,608	$ 15,257	$ 12,923
Weighted average common shares outstanding	43,778	43,576	43,776	43,573
Weighted average dilutive shares outstanding	43,778	43,576	43,776	43,573
Diluted net income per share	$ 0.17	$ 0.15	$ 0.35	$ 0.30
Due to the anti-dilutive effect, the computation of diluted earnings per share does not reflect the following adjustments:
Net income attributable to noncontrolling interest	$ 2,821	$ 2,576	$ 5,889	$ 5,038
Redemption of Operating Partnership units	16,897	17,058	16,899	17,057

Leases - Schedule of Compositio

Leases - Schedule of Composition of Lease Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Leases [Abstract]
Base rent (straight-line)	$ 40,422	$ 33,785	$ 80,046	$ 67,450
Total lease revenue	$ 40,422	$ 33,785	$ 80,046	$ 67,450

Leases - Additional Information

Leases - Additional Information (Details)	6 Months Ended
	Jun. 30, 2017
Operating Leased Assets [Line Items]
Operating leases placed in services dates description	SDTS has entered into various leases with Sharyland for all our placed in service regulated assets. The master lease agreements, as amended, expire at various dates from December 31, 2017 through December 31, 2022.
Lease expiration date range, start date	Dec. 31, 2017
Lease expiration date range, end date	Dec. 31, 2022
Maximum
Operating Leased Assets [Line Items]
Rate of rent used, Percentage	32.00%
Minimum
Operating Leased Assets [Line Items]
Rate of rent used, Percentage	23.00%

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) - 2015 Equity Incentive Plan - USD ($)	1 Months Ended			3 Months Ended		6 Months Ended
	Jan. 31, 2017	Apr. 30, 2016	Jan. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unamortized stock compensation expense				$ 300,000		$ 300,000
General And Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Compensation expenses				$ 200,000	$ 200,000	$ 300,000	$ 500,000
Director
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Grant date fair value per share		$ 16.81
Grant date fair value		$ 100,000
Aggregate common stock shares issued to directors		5,497	4,735
Director | LTIP Units
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
LTIP Units issued to directors	31,633		29,722
Grant date fair value per share	$ 18.02		$ 18.58
Grant date fair value	$ 600,000		$ 600,000
Vesting period of LTIP Units	Jan. 31, 2018		Jan. 31, 2017

Supplemental Cash Flow Inform51

Supplemental Cash Flow Information - Supplemental Cash Flow Information and Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Supplemental cash flow information
Cash paid during the period for interest	$ 19,007	$ 15,745
Non-cash investing and financing activities
Change in accrued additions to electric plant	3,912	1,544
Allowance for funds used during construction - debt	1,557	1,779
Redemption of operating partnership units for common stock	110
Dividends and distributions payable	$ 15,169	$ 15,158	$ 15,161

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands	Jul. 21, 2017	Jun. 30, 2017	Dec. 31, 2016
Subsequent Event [Line Items]
Distribution assets		$ 614,174	$ 575,648
Transmission assets		$ 1,236,848	$ 1,203,164
Sharyland Distribution & Transmission Services | Subsequent Event | Definitive Agreement | Oncor Electric Delivery Company LLC
Subsequent Event [Line Items]
Distribution assets	$ 400,000
Customary adjustments made in cash	20,000
Sharyland Distribution & Transmission Services | Subsequent Event | Definitive Agreement | Oncor Electric Delivery Company LLC | West and Central Texas
Subsequent Event [Line Items]
Transmission assets	$ 380,000
Sharyland | Sharyland Distribution & Transmission Services | Subsequent Event
Subsequent Event [Line Items]
Public utilities, allowed return on equity, percentage	9.70%
Sharyland and SDTS | Subsequent Event
Subsequent Event [Line Items]
Public utilities, requested capital structure, debt percentage	55.00%
Public utilities, requested capital structure, equity percentage	45.00%
Public utilities cost of debt percentage	6.73%