Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-36120 | |
Entity Registrant Name | ANTERO RESOURCES CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0162034 | |
Entity Address, Address Line One | 1615 Wynkoop Street | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 357-7310 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | AR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 304,270,444 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001433270 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Accounts receivable | $ 29,207 | $ 51,073 |
Accrued revenue | 281,177 | 474,827 |
Derivative instruments | 411,774 | 245,263 |
Other current assets | 7,342 | 35,450 |
Total current assets | 729,500 | 806,613 |
Oil and gas properties, at cost (successful efforts method): | ||
Unproved properties | 1,406,464 | 1,767,600 |
Proved properties | 11,568,285 | 12,705,672 |
Water handling and treatment systems | 1,013,818 | |
Gathering systems and facilities | 5,802 | 2,470,708 |
Other property and equipment | 70,965 | 65,842 |
Property and equipment, gross | 13,051,516 | 18,023,640 |
Less accumulated depletion, depreciation, and amortization | (3,136,767) | (4,153,725) |
Property and equipment, net | 9,914,749 | 13,869,915 |
Operating leases right-of-use assets | 3,230,148 | |
Derivative instruments | 405,180 | 362,169 |
Investments in unconsolidated affiliates | 1,819,323 | 433,642 |
Other assets | 21,388 | 47,125 |
Total assets | 16,120,288 | 15,519,464 |
Current liabilities: | ||
Accounts payable | 32,496 | 66,289 |
Accounts payable, related parties | 100,437 | |
Accrued liabilities | 392,726 | 465,070 |
Revenue distributions payable | 231,152 | 310,827 |
Derivative instruments | 532 | |
Short-term lease liabilities | 409,990 | 2,459 |
Other current liabilities | 4,367 | 8,363 |
Total current liabilities | 1,171,168 | 853,540 |
Long-term liabilities: | ||
Long-term debt | 3,703,828 | 5,461,688 |
Deferred income tax liability | 916,031 | 650,788 |
Long-term lease liabilities | 2,823,197 | 2,873 |
Other liabilities | 59,366 | 63,098 |
Total liabilities | 8,673,590 | 7,031,987 |
Commitments and contingencies (Notes 13 and 14) | ||
Equity: | ||
Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued | ||
Common stock, $0.01 par value; authorized - 1,000,000 shares; 308,594 shares and 304,161 shares issued and outstanding at December 31, 2018 and September 30, 2019, respectively | 3,041 | 3,086 |
Additional paid-in capital | 6,124,042 | 6,485,174 |
Accumulated earnings | 1,319,615 | 1,177,548 |
Total stockholders' equity | 7,446,698 | 7,665,808 |
Noncontrolling interests in consolidated subsidiary | 821,669 | |
Total equity | 7,446,698 | 8,487,477 |
Total liabilities and equity | $ 16,120,288 | $ 15,519,464 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 304,161,000 | 308,594,000 |
Common stock, shares outstanding | 304,161,000 | 308,594,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue and other: | ||||
Revenues from contracts with customers | $ 896,612 | $ 1,019,555 | $ 2,980,757 | $ 2,865,104 |
Commodity derivative fair value gains | 220,788 | 57,019 | 471,847 | 134,793 |
Marketing derivative fair value gains (losses) | 0 | (42) | 0 | 94,081 |
Total revenue | 1,118,881 | 1,076,532 | 3,455,952 | 3,093,978 |
Operating expenses: | ||||
Production and ad valorem taxes | 28,863 | 30,518 | 95,509 | 82,232 |
Impairment of oil and gas properties | 1,041,469 | 221,094 | 1,253,712 | 406,068 |
Impairment of midstream assets | 7,800 | 1,157 | 14,782 | 9,658 |
Depletion, depreciation, and amortization | 241,503 | 243,186 | 724,006 | 709,480 |
Loss on sale of assets | 951 | |||
Accretion of asset retirement obligations | 927 | 710 | 2,821 | 2,101 |
General and administrative | 35,923 | 59,860 | 146,507 | 181,576 |
Contract termination and rig stacking | 62 | 14,026 | ||
Total operating expenses | 2,104,759 | 1,071,728 | 4,375,541 | 2,975,444 |
Operating income (loss) | (985,878) | 4,804 | (919,589) | 118,534 |
Other income (expenses): | ||||
Equity in earnings (loss) of unconsolidated affiliates | (117,859) | 10,705 | (90,193) | 27,832 |
Interest expense, net | (47,754) | (74,528) | (173,868) | (208,303) |
Gain on deconsolidation of Antero Midstream Partners LP | 1,406,042 | |||
Total other income (expenses) | (165,613) | (63,823) | 1,141,981 | (180,471) |
Income (loss) before income taxes | (1,151,491) | (59,019) | 222,392 | (61,937) |
Provision for income tax (expense) benefit | 272,627 | (18,953) | (33,332) | (2,500) |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (878,864) | (77,972) | 189,060 | (64,437) |
Net income and comprehensive income attributable to noncontrolling interests | 76,447 | 46,993 | 211,534 | |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | $ (878,864) | $ (154,419) | $ 142,067 | $ (275,971) |
Earnings (loss) per common share-basic (in dollars per share) | ||||
Earnings (loss) per common share-basic (in dollars per share) | $ (2.86) | $ (0.49) | $ 0.46 | $ (0.87) |
Earnings (loss) per common share-assuming dilution (in dollars per share) | ||||
Earnings (loss) per common share-assuming dilution (in dollars per share) | $ (2.19) | $ (0.49) | $ 0.46 | $ (0.87) |
Weighted average number of shares outstanding | ||||
Basic (in shares) | 307,781 | 317,082 | 308,509 | 316,850 |
Diluted (in shares) | 307,781 | 317,082 | 308,646 | 316,850 |
Natural gas sales | ||||
Revenue and other: | ||||
Revenues from contracts with customers | $ 524,448 | $ 527,122 | $ 1,735,086 | $ 1,498,324 |
Natural gas liquids sales | ||||
Revenue and other: | ||||
Revenues from contracts with customers | 284,958 | 338,269 | 902,606 | 828,424 |
Oil sales | ||||
Revenue and other: | ||||
Revenues from contracts with customers | 40,561 | 59,722 | 137,675 | 128,869 |
Gathering, compression, water handling and treatment | ||||
Revenue and other: | ||||
Revenues from contracts with customers | 4,844 | 4,479 | 15,298 | |
Operating expenses: | ||||
Cost of goods and services sold | 603,860 | 326,504 | 1,595,223 | 926,228 |
Marketing | ||||
Revenue and other: | ||||
Revenues from contracts with customers | 46,645 | 89,598 | 200,911 | 394,189 |
Operating expenses: | ||||
Cost of goods and services sold | 108,216 | 151,764 | 408,839 | 560,924 |
Other income | ||||
Revenue and other: | ||||
Revenues from contracts with customers | 1,481 | 3,348 | ||
Lease operating | ||||
Operating expenses: | ||||
Cost of goods and services sold | 35,928 | 36,269 | 118,517 | 93,155 |
Exploration | ||||
Operating expenses: | ||||
Cost of goods and services sold | $ 208 | $ 666 | $ 648 | $ 4,022 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||
Equity-based compensation expense | $ 3,875 | $ 16,202 | $ 19,327 | $ 56,429 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional paid-in capital | Accumulated earnings | Noncontrolling Interests | Total |
Balance at Dec. 31, 2017 | $ 3,164 | $ 6,570,952 | $ 1,575,065 | $ 726,955 | $ 8,876,136 |
Balance (in shares) at Dec. 31, 2017 | 316,379 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings | $ 1 | (1,067) | (1,066) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings (in shares) | 145 | ||||
Issuance of common units in Antero Midstream Partners LP upon vesting of equity-based compensation awards, net of units withheld for income taxes | (50) | 32 | (18) | ||
Equity-based compensation | 18,802 | 2,354 | 21,156 | ||
Net income (loss) and comprehensive income (loss) | 14,833 | 65,977 | 80,810 | ||
Effects of changes in ownership interests in consolidated subsidiaries | (555) | 555 | |||
Distributions to non-controlling interests | (55,915) | (55,915) | |||
Other | (5) | (5) | |||
Balance at Mar. 31, 2018 | $ 3,165 | 6,588,082 | 1,589,898 | 739,953 | 8,921,098 |
Balance (in shares) at Mar. 31, 2018 | 316,524 | ||||
Balance at Dec. 31, 2017 | $ 3,164 | 6,570,952 | 1,575,065 | 726,955 | 8,876,136 |
Balance (in shares) at Dec. 31, 2017 | 316,379 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) and comprehensive income (loss) | (64,437) | ||||
Balance at Sep. 30, 2018 | $ 3,171 | 6,611,348 | 1,299,094 | 757,539 | 8,671,152 |
Balance (in shares) at Sep. 30, 2018 | 317,086 | ||||
Balance at Mar. 31, 2018 | $ 3,165 | 6,588,082 | 1,589,898 | 739,953 | 8,921,098 |
Balance (in shares) at Mar. 31, 2018 | 316,524 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings | $ 6 | (5,589) | (5,583) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings (in shares) | 528 | ||||
Issuance of common units in Antero Midstream Partners LP upon vesting of equity-based compensation awards, net of units withheld for income taxes | (4,007) | 2,707 | (1,300) | ||
Equity-based compensation | 16,930 | 2,141 | 19,071 | ||
Net income (loss) and comprehensive income (loss) | (136,385) | 69,110 | (67,275) | ||
Effects of changes in ownership interests in consolidated subsidiaries | 2,121 | (2,121) | |||
Distributions to non-controlling interests | (63,108) | (63,108) | |||
Other | 8 | 8 | |||
Balance at Jun. 30, 2018 | $ 3,171 | 6,597,537 | 1,453,513 | 748,690 | 8,802,911 |
Balance (in shares) at Jun. 30, 2018 | 317,052 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings | (157) | (157) | |||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings (in shares) | 34 | ||||
Issuance of common units in Antero Midstream Partners LP upon vesting of equity-based compensation awards, net of units withheld for income taxes | (306) | 226 | (80) | ||
Equity-based compensation | 14,646 | 1,556 | 16,202 | ||
Net income (loss) and comprehensive income (loss) | (154,419) | 76,447 | (77,972) | ||
Effects of changes in ownership interests in consolidated subsidiaries | (372) | 372 | |||
Distributions to non-controlling interests | (69,752) | (69,752) | |||
Balance at Sep. 30, 2018 | $ 3,171 | 6,611,348 | 1,299,094 | 757,539 | 8,671,152 |
Balance (in shares) at Sep. 30, 2018 | 317,086 | ||||
Balance at Dec. 31, 2018 | $ 3,086 | 6,485,174 | 1,177,548 | 821,669 | 8,487,477 |
Balance (in shares) at Dec. 31, 2018 | 308,594 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings | $ 1 | (451) | (450) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings (in shares) | 147 | ||||
Issuance of common units in Antero Midstream Partners LP upon vesting of equity-based compensation awards, net of units withheld for income taxes | (85) | 56 | (29) | ||
Equity-based compensation | 7,801 | 1,102 | 8,903 | ||
Net income (loss) and comprehensive income (loss) | 978,763 | 46,993 | 1,025,756 | ||
Distributions to non-controlling interests | (359,039) | (784,744) | (1,143,783) | ||
Effect of deconsolidation of Antero Midstream Partners LP | (85,076) | (85,076) | |||
Balance at Mar. 31, 2019 | $ 3,087 | 6,133,400 | 2,156,311 | 8,292,798 | |
Balance (in shares) at Mar. 31, 2019 | 308,741 | ||||
Balance at Dec. 31, 2018 | $ 3,086 | 6,485,174 | 1,177,548 | $ 821,669 | 8,487,477 |
Balance (in shares) at Dec. 31, 2018 | 308,594 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) and comprehensive income (loss) | 189,060 | ||||
Balance at Sep. 30, 2019 | $ 3,041 | 6,124,042 | 1,319,615 | 7,446,698 | |
Balance (in shares) at Sep. 30, 2019 | 304,161 | ||||
Balance at Mar. 31, 2019 | $ 3,087 | 6,133,400 | 2,156,311 | 8,292,798 | |
Balance (in shares) at Mar. 31, 2019 | 308,741 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings | $ 4 | (1,819) | (1,815) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings (in shares) | 382 | ||||
Equity-based compensation | 6,549 | 6,549 | |||
Net income (loss) and comprehensive income (loss) | 42,168 | 42,168 | |||
Balance at Jun. 30, 2019 | $ 3,091 | 6,138,130 | 2,198,479 | 8,339,700 | |
Balance (in shares) at Jun. 30, 2019 | 309,123 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings | $ 1 | (86) | (85) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income tax withholdings (in shares) | 99 | ||||
Repurchases and retirements of common stock | $ (51) | (17,877) | (17,928) | ||
Repurchases and retirements of common stock (in shares) | (5,061) | ||||
Equity-based compensation | 3,875 | 3,875 | |||
Net income (loss) and comprehensive income (loss) | (878,864) | (878,864) | |||
Balance at Sep. 30, 2019 | $ 3,041 | $ 6,124,042 | $ 1,319,615 | $ 7,446,698 | |
Balance (in shares) at Sep. 30, 2019 | 304,161 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) including noncontrolling interests | $ 189,060 | $ (64,437) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depletion, depreciation, amortization, and accretion | 726,827 | 711,581 |
Impairment of oil and gas properties | 1,253,712 | 406,068 |
Impairment of midstream assets | 14,782 | 9,658 |
Commodity derivative fair value gains | (471,847) | (134,793) |
Gains on settled commodity derivatives | 261,794 | 268,369 |
Marketing derivative fair value gains | 0 | (94,081) |
Gains on settled marketing derivatives | 78,098 | |
Deferred income tax expense | 32,019 | 2,500 |
Loss on sale of assets | 951 | |
Equity-based compensation expense | 19,327 | 56,429 |
Equity in earnings (loss) of unconsolidated affiliates | 90,193 | (27,832) |
Distributions/dividends of earnings from unconsolidated affiliates | 109,241 | 29,660 |
Gain on deconsolidation of Antero Midstream Partners LP | (1,406,042) | |
Other | 8,179 | 2,945 |
Changes in current assets and liabilities: | ||
Accounts receivable | 14,236 | 4,653 |
Accrued revenue | 193,650 | (53,888) |
Other current assets | 2,365 | (3,721) |
Accounts payable including related parties | (971) | 8,177 |
Accrued liabilities | (11,169) | 27,446 |
Revenue distributions payable | (72,176) | 36,215 |
Other current liabilities | 1,387 | (2,649) |
Net cash provided by operating activities | 955,518 | 1,260,398 |
Cash flows provided by (used in) investing activities: | ||
Additions to unproved properties | (69,796) | (130,381) |
Drilling and completion costs | (957,931) | (1,125,660) |
Additions to water handling and treatment systems | (24,416) | (77,385) |
Additions to gathering systems and facilities | (48,239) | (337,448) |
Additions to other property and equipment | (5,980) | (5,371) |
Investments in unconsolidated affiliates | (25,020) | (91,419) |
Proceeds from the Antero Midstream Partners LP Transactions | 296,611 | |
Change in other assets | 7,461 | (2,675) |
Proceeds from asset sales | 1,983 | |
Net cash used in investing activities | (825,327) | (1,770,339) |
Cash flows provided by (used in) financing activities: | ||
Repurchases of common stock | (17,924) | |
Issuance of senior notes | 650,000 | |
Borrowings (repayments) on bank credit facilities, net | (45,000) | 682,000 |
Payments of deferred financing costs | (8,259) | |
Distributions to noncontrolling interests in Antero Midstream Partners LP | (85,076) | (188,775) |
Employee tax withholding for settlement of equity compensation awards | (2,379) | (8,205) |
Other | (2,021) | (3,520) |
Net cash provided by financing activities | 489,341 | 481,500 |
Effect of deconsolidation of Antero Midstream Partners LP | (619,532) | |
Net decrease in cash and cash equivalents | (28,441) | |
Cash and cash equivalents, beginning of period | 28,441 | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 142,288 | 179,489 |
Increase (decrease) in accounts payable and accrued liabilities for additions to property and equipment | $ (22,103) | $ 7,325 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
Organization | |
Organization | (1) Organization Antero Resources Corporation (individually referred to as “Antero”) and its consolidated subsidiaries (collectively referred to as the “Company,” “we,” “us” or “our”) are engaged in the exploration, development, and acquisition of natural gas, NGLs, and oil properties in the Appalachian Basin in West Virginia and Ohio. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs, and oil from unconventional formations. The Company’s corporate headquarters are located in Denver, Colorado. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Basis of Presentation These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC applicable to interim financial information and should be read in the context of the December 31, 2018 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position, and accounting policies. The December 31, 2018 consolidated financial statements have been filed with the Securities and Exchange Commission (“SEC”) in Antero’s 2018 Form 10-K. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2018 and September 30, 2019, and the results of its operations and its cash flows for the three and nine months ended September 30, 2018 and 2019. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is equal to its comprehensive income or loss. Operating results for the period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs, and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments, and other factors. As of the date these financial statements were filed with the SEC, the Company completed its evaluation of potential subsequent events for disclosure and no items requiring disclosure were identified. (b) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Antero, its wholly owned subsidiaries, any entities in which the Company owns a controlling interest, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Through March 12, 2019, Antero Midstream Partners LP (“Antero Midstream Partners”), a publicly traded limited partnership, was included in the consolidated financial statements of Antero. Prior to the Closing (defined in Note 3 to the unaudited condensed consolidated financial statements), our ownership of Antero Midstream Partners common units represented approximately a 53 % limited partner interest in Antero Midstream Partners, and we consolidated Antero Midstream Partners’ financial position and results of operations into our consolidated financial statements. The Transactions (defined in Note 3 to the unaudited condensed consolidated financial statements) resulted in the exchange of the limited partner interest we owned in Antero Midstream Partners for common stock of Antero Midstream Corporation representing an approximate 31 % interest. As a result, we no longer hold a controlling interest in Antero Midstream Partners and we now have an interest in Antero Midstream Corporation that provides significant influence, but not control, over Antero Midstream Corporation. Thus, effective March 13, 2019, Antero no longer consolidates Antero Midstream Partners in its consolidated financial statements and accounts for its interest in Antero Midstream Corporation using the equity method of accounting. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements. The noncontrolling interest in the Company’s unaudited condensed consolidated financial statements represents the interests in Antero Midstream Partners, which were owned by the public prior to the Transactions, and the incentive distribution rights in Antero Midstream Partners, in both cases during the periods prior to the Transactions. Noncontrolling interests in consolidated subsidiaries is included as a component of equity in the Company’s unaudited condensed consolidated balance sheets. Investments in entities for which the Company exercises significant influence, but not control, are accounted for under the equity method. The Company’s judgment regarding the level of influence over its equity investments includes considering key factors such as Antero’s ownership interest, representation on the board of directors, and participation in the policy-making decisions of equity method investees. Such investments are included in Investments in unconsolidated affiliates on the Company’s unaudited condensed consolidated balance sheets. Income from investees that are accounted for under the equity method is included in Equity in earnings of unconsolidated affiliates on the Company’s unaudited condensed consolidated statements of operations and cash flows. When Antero records its proportionate share of net income, it increases equity income in the statements of operations and comprehensive income (loss) and the carrying value of that investment on the Company’s balance sheet. When a distribution is received, it is recorded as a reduction to the carrying value of that investment on the balance sheet. Our equity in earnings of unconsolidated affiliates is adjusted for intercompany transactions and the basis differences recognized due to the difference between the cost of the equity investment in Antero The Company accounts for distributions received from equity method investees under the “nature of the distribution” approach. Under this approach, distributions received from equity method investees are classified on the basis of the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as cash inflows from operating activities) or a return of investment (classified as cash inflows from investing activities). (c) Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect revenues, expenses, assets, and liabilities, as well as the disclosure of contingent assets and liabilities. Changes in facts and circumstances or discovery of new information may result in revised estimates, and actual results could differ from those estimates. The Company’s unaudited condensed consolidated financial statements are based on a number of significant estimates including estimates of natural gas, NGLs, and oil reserve quantities, which are the basis for the calculation of depletion and impairment of oil and gas properties. Reserve estimates, by their nature, are inherently imprecise. Other items in the Company’s unaudited condensed consolidated financial statements that involve the use of significant estimates include derivative assets and liabilities, accrued revenue, deferred and current income taxes, equity-based compensation, asset retirement obligations, depreciation, amortization, and commitments and contingencies. (d) Risks and Uncertainties The markets for natural gas, NGLs, and oil have, and continue to, experience significant price fluctuations. Price fluctuations can result from variations in weather, levels of production, availability of transportation capacity to other regions of the country, the level of imports to and exports from the United States, and various other factors. Increases or decreases in the prices the Company receives for its production could have a significant impact on the Company’s future results of operations and reserve quantities. (e) Cash and Cash Equivalents The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these instruments. From time to time, the Company may be in the position of a “book overdraft” in which outstanding checks exceed cash and cash equivalents. The Company classifies book overdrafts in accounts payable and revenue distributions payable within its unaudited condensed consolidated balance sheets, and classifies the change in accounts payable and revenue distributions payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of September 30, 2019, the book overdraft included within accounts payable and revenue distributions payable were $8 million and $34 million, respectively. As of December 31, 2018, the book overdraft included within accounts payable and revenue distributions payable were $10 million and $28 million, respectively. (f) Oil and Gas Properties The Company accounts for its natural gas, NGLs, and oil exploration and development activities under the successful efforts method of accounting. Under the successful efforts method, the costs incurred to acquire, drill, and complete productive wells, development wells, and undeveloped leases are capitalized. Oil and gas lease acquisition costs are also capitalized. Exploration costs, including personnel and other internal costs, geological and geophysical expenses, delay rentals for gas and oil leases, and costs associated with unsuccessful lease acquisitions are charged to expense as incurred. Exploratory drilling costs are initially capitalized, but charged to expense if the Company determines that the well does not contain reserves in commercially viable quantities. The Company reviews exploration costs related to wells-in- progress at the end of each quarter and makes a determination, based on known results of drilling at that time, whether the costs should continue to be capitalized pending further well testing and results, or charged to expense. The Company incurred no such charges to expense during the nine months ended September 30, 2018 and 2019. During the nine months ended September 30, 2019, we recorded an impairment charge of $26 million for design and initial costs related to pads that are no longer planned to be placed into service. The sale of a partial interest in a proved property is accounted for as a cost recovery, and no gain or loss is recognized as long as this treatment does not significantly affect the units-of- production amortization rate. A gain or loss is recognized for all other sales of producing properties. Unproved properties are assessed for impairment on a property-by- property basis, and any impairment in value is charged to expense. Impairment is assessed based on remaining lease terms, commodity price outlooks, and future plans to develop acreage, as well as drilling results, and reservoir performance of wells in the area. Unproved properties and the related costs are transferred to proved properties when reserves are discovered on, or otherwise attributed to, the property. Proceeds from sales of partial interests in unproved properties are accounted for as a recovery of cost without recognition of any gain or loss until the cost has been recovered. Impairment of unproved properties was $406 million and $347 million for the nine months ended September 30, 2018 and 2019, respectively. The Company evaluates the carrying amount of its proved natural gas, NGLs, and oil properties for impairment on a geological reservoir basis whenever events or changes in circumstances indicate that a property’s carrying amount may not be recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company would estimate the fair value of its properties and record an impairment charge for any excess of the carrying amount of the properties over the estimated fair value of the properties. Factors used to estimate fair value may include estimates of proved reserves, estimated future commodity prices, future production estimates, and anticipated capital expenditures, using a commensurate discount rate. As estimated undiscounted future net cash flows based on future commodity prices at September 30, 2019 exceeded the carrying amount of our proved properties in the Marcellus Shale at September 30, 2019, we did not further evaluate our Marcellus proved properties for impairment. However, the carrying amount of the Utica Shale exceeded the estimated undiscounted future cash flows based on future commodity prices at September 30, 2019. We estimated the fair value of the Utica Shale assets based on sales of other properties, estimates of proved reserves, estimated future commodity prices, and future production estimates. As a result, the Company recorded an impairment charge of $881 million related to proved properties in the Utica Shale during the three months ended September 30, 2019. The Company did not record any impairment expenses associated with its proved properties in the Marcellus Shale during the nine months ended September 30, 2018 and 2019. During the three months ended September 30, 2019, Antero completed a non-cash exchange of acreage and ownership interest in certain properties in West Virginia whereby the Company received 20,770 net acres primarily in Tyler and Wetzel Counties and delivered 18,857 net acres primarily in Wetzel and Marion Counties. In conjunction with the non-cash exchange, the Company also assumed certain gas gathering and processing obligations related to a portion of some of the properties. This exchange did not have a material impact on the timing and amount of future cash flows and no gain or loss was recorded related to this transaction. (g) Derivative Financial Instruments In order to manage its exposure to natural gas, NGLs, and oil price volatility, the Company enters into derivative transactions from time to time, which may include commodity swap agreements, basis swap agreements, collar agreements, and other similar agreements related to the price risk associated with the Company’s production. To the extent legal right of offset exists with a counterparty, the Company reports derivative assets and liabilities on a net basis. The Company has exposure to credit risk to the extent that the counterparty is unable to satisfy its settlement obligations. The Company actively monitors the creditworthiness of counterparties and assesses the impact, if any, on its derivative positions. The Company records derivative instruments on the unaudited condensed consolidated balance sheets as either assets or liabilities measured at fair value and records changes in the fair value of derivatives in current earnings as they occur. Changes in the fair value of commodity derivatives, including gains or losses on settled derivatives, are classified as revenues on the Company’s unaudited condensed consolidated statements of operations. The Company’s derivatives have not been designated as hedges for accounting purposes. (h) Asset Retirement Obligations The Company is obligated to dispose of certain long- lived assets upon their abandonment. The Company’s asset retirement obligations (“AROs”) relate primarily to its obligation to plug and abandon oil and gas wells at the end of their lives. AROs are recorded at estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligations, which is then discounted at the Company’s credit-adjusted, risk- free interest rate. Revisions to estimated AROs often result from changes in retirement cost estimates or changes in the estimated timing of abandonment. The fair value of the liability is added to the carrying amount of the associated asset, and this additional carrying amount is depreciated over the life of the asset. The liability is accreted at the end of each period through charges to operating expense. (i) Industry Segments and Geographic Information Management has evaluated how the Company is organized and managed and has identified the following segments: (1) the exploration, development, and production of natural gas, NGLs, and oil; (2) marketing and utilization of excess firm transportation capacity and (3) our equity method investment in Antero Midstream Corporation. Through March 12, 2019, the results of Antero Midstream Partners were included in the consolidated financial statements of Antero. Effective March 13, 2019, the results of Antero Midstream Partners are no longer consolidated in Antero’s results; however, the Company’s segment disclosures include our equity method investment in Antero Midstream Corporation due to its significance to the Company’s operations. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions and Note 17 to the unaudited condensed consolidated financial statements for disclosures on the Company’s reportable segments. All of the Company’s assets are located in the United States and substantially all of its production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. Our revenues received from these customers are denominated in U.S. dollars and are based on pricing in foreign markets. (j) Earnings (loss) Per Common Share Earnings (loss) per common share—basic for each period is computed by dividing net income (loss) attributable to Antero by the basic weighted average number of shares outstanding during the period. Earnings (loss) per common share—assuming dilution for each period is computed after giving consideration to the potential dilution from outstanding equity awards, calculated using the treasury stock method. The Company includes performance share unit awards in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of the performance period required for the vesting of the awards. During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is anti-dilutive. The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands): Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Basic weighted average number of shares outstanding 317,082 307,781 316,850 308,509 Add: Dilutive effect of restricted stock units — — — 27 Add: Dilutive effect of outstanding stock options — — — — Add: Dilutive effect of performance stock units — — — 110 Diluted weighted average number of shares outstanding 317,082 307,781 316,850 308,646 Weighted average number of outstanding equity awards excluded from calculation of diluted earnings per common share (1) Restricted stock units 2,813 2,356 2,996 2,008 Outstanding stock options 619 514 637 541 Performance stock units 1,880 2,676 1,665 2,141 (1) The potential dilutive effects of these awards were excluded from the computation of earnings (loss) per common share—assuming dilution because the inclusion of these awards would have been anti-dilutive. (k) Treasury Share Retirement The Company retires treasury shares acquired through share repurchases and returns those shares to the status of authorized but unissued. When treasury shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired first, to additional paid-in capital, and then to accumulated earnings. The portion allocable to additional paid-in capital is determined by applying a percentage, determined by dividing the number of shares to be retired by the number of shares outstanding, to the balance of additional paid-in capital as of retirement. (l) Adoption of New Accounting Principle The Company adopted ASU No. 2016-02, Leases , (“Topic 842”) as of January 1, 2019, using the effective date method. The effective date method allows the Company to report its leases under Topic 842 prospectively as of the date of adoption, and no retrospective adjustments were required for prior periods. The Company elected the available practical expedients and updated internal controls to enable the preparation of financial information on adoption. The standard had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated statements of operations. The most significant impact was the recognition of operating leases right-of-use assets and short-term and long-term lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. See Note 12 to the unaudited condensed consolidated financial statements for a description of the Company’s leases. |
Deconsolidation of Antero Midst
Deconsolidation of Antero Midstream Partners LP | 9 Months Ended |
Sep. 30, 2019 | |
Deconsolidation of Antero Midstream Partners LP | |
Deconsolidation of Antero Midstream Partners LP | (3) Deconsolidation of Antero Midstream Partners LP In 2014, the Company formed Antero Midstream Partners to own, operate, and develop midstream energy assets that service Antero’s production. Antero Midstream Partners’ assets consist of gathering systems and compression facilities, water handling and treatment facilities, and interests in processing and fractionation plants, through which it provides services to Antero under long-term, fixed-fee contracts. On March 12, 2019, Antero Midstream GP LP and Antero Midstream Partners completed (the “Closing”) the transactions contemplated by the Simplification Agreement (the “Simplification Agreement”), dated as of October 9, 2018, by and among Antero Midstream GP LP, Antero “Transactions”). In connection with the Closing, Antero received Prior to the Closing, the Company’s ownership of Antero Midstream Partners common units represented approximately a 53% limited partner interest in Antero Midstream Partners, and the Company consolidated Antero Midstream Partners’ financial position and results of operations into its consolidated financial statements. The Transactions resulted in the exchange of limited partner interests in Antero interest. As a result, the Company no longer holds a controlling interest in Antero Partners and the Company now has an interest in Antero Midstream Corporation that provides significant influence, but not control, over Antero Midstream Corporation. Thus, effective March 13, 2019, the Company no longer consolidates Antero Partners in our consolidated financial statements and accounts for its interest in Antero Midstream Corporation using the equity method of accounting. In addition, the Company recorded a gain on deconsolidation of Partners. The fair value of Antero’s retained equity method investment on March 13, 2019 in Antero Midstream Corporation was billion based on the market price of the shares received on March 12, 2019. See Note 5 to the unaudited condensed consolidated financial statements for further discussion on equity method investments. Antero Midstream Partners’ results of operations are no longer consolidated in the Company’s consolidated statement of operations and comprehensive income (loss) beginning March 13, 2019. Because Antero Partners’ results of operations continue to be included in the Company’s consolidated statement of operations and comprehensive income (loss) through March 12, 2019. Summarized Financial Information of Antero Midstream Partners The following table presents a summary of assets and liabilities of Antero Midstream Partners as of March 12, 2019, the date of deconsolidation. (in thousands) March 12, 2019 Current assets $ 763,109 Property and equipment, net 3,003,693 Other noncurrent assets 501,208 Total assets $ 4,268,010 Current liabilities $ 123,473 Long-term debt 2,359,084 Other noncurrent liabilities 123,523 Total liabilities $ 2,606,080 Net assets $ 1,661,930 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue | |
Revenue | (4) Revenue (a) Revenue from Contracts with Customers Product revenue Our revenues are primarily derived from the sale of natural gas and oil production, as well as the sale of NGLs that are extracted from our natural gas. Sales of natural gas, NGLs, and oil are recognized when we satisfy a performance obligation by transferring control of a product to a customer. Payment is generally received in the month following the sale. Under our natural gas sales contracts, we deliver natural gas to the purchaser at an agreed upon delivery point. Natural gas is transported from our wellheads to delivery points specified under sales contracts. To deliver natural gas to these points, Antero Midstream or third parties gather, compress, process and transport our natural gas. We maintain control of the natural gas during gathering, compression, processing, and transportation. Our sales contracts provide that we receive a specific index price adjusted for pricing differentials. We transfer control of the product at the delivery point and recognize revenue based on the contract price. The costs to gather, compress, process and transport the natural gas are recorded as Gathering, compression, processing and transportation expenses. NGLs, which are extracted from natural gas through processing, are either sold by us directly or by the processor under processing contracts. For NGLs sold by us directly, our sales contracts provide that we deliver the product to the purchaser at an agreed upon delivery point and that we receive a specific index price adjusted for pricing differentials. We transfer control of the product to the purchaser at the delivery point and recognize revenue based on the contract price. The costs to process and transport NGLs are recorded as Gathering, compression, processing, and transportation expenses. For NGLs sold by the processor, our processing contracts provide that we transfer control to the processor at the tailgate of the processing plant and we recognize revenue based on the price received from the processor. Under our oil sales contracts, we generally sell oil to purchasers and collect a contractually agreed upon index price, net of pricing differentials. We recognize revenue based on the contract price when we transfer control of the product to a purchaser. Gathering, compression, water handling and treatment revenue Substantially all revenues from the gathering, compression, water handling and treatment operations were derived from transactions for services Antero Midstream Partners provided to our exploration and production operations through March 12, 2019 and were eliminated in consolidation. no longer consolidated in Antero’s results. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions and Note 17 to the unaudited condensed consolidated financial statements for disclosures on the Company’s reportable segments . The portion of such fees shown in our consolidated financial statements prior to March 13, 2019 represent amounts charged to interest owners in Antero-operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Antero Midstream gathering and compression systems. For gathering and compression revenue, Antero Midstream satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a compressor station, high pressure volumes are delivered to a processing plant or transmission pipeline, and compression volumes are delivered to a high pressure line. Revenue is recognized based on the per Mcf gathering or compression fee charged by Antero Midstream in accordance with the gathering and compression agreement. For water handling and treatment revenue, Antero Midstream satisfies its performance obligations and recognizes revenue when the fresh water volumes have been delivered to the hydration unit of a specified well pad and the wastewater volumes have been delivered to its wastewater treatment facility. For services contracted through third-party providers, Antero Midstream performance obligation is satisfied when the service performed by the third-party provider has been completed. Revenue is recognized based on the per barrel fresh water delivery or wastewater treatment fee charged by Antero Midstream Marketing revenue Marketing revenues are derived from activities to purchase and sell third-party natural gas and NGLs and to market excess firm transportation capacity to third parties. We retain control of the purchased natural gas and NGLs prior to delivery to the purchaser. We have concluded that we are the principal in these arrangements and therefore we recognize revenue on a gross basis, with costs to purchase and transport natural gas and NGLs presented as marketing expenses. Contracts to sell third-party gas and NGLs are generally subject to similar terms as contracts to sell our produced natural gas and NGLs. We satisfy performance obligations to the purchaser by transferring control of the product at the delivery point and recognize revenue based on the price received from the purchaser. Fees generated from the sale of excess firm transportation marketed to third parties are included in revenue. (b) Disaggregation of Revenue In the following table, revenue is disaggregated by type (in thousands). The table also identifies the reportable segment to which the disaggregated revenues relate. For more information on reportable segments, see Note 17— Segment Information. Three months ended September 30, Nine months ended September 30, Segment to which 2018 2019 2018 2019 revenues relate Revenues from contracts with customers: Natural gas sales $ 527,122 524,448 $ 1,498,324 1,735,086 Exploration and production Natural gas liquids sales (ethane) 56,185 26,488 115,947 92,378 Exploration and production Natural gas liquids sales (C3+ NGLs) 282,084 258,470 712,477 810,228 Exploration and production Oil sales 59,722 40,561 128,869 137,675 Exploration and production Gathering and compression (1) 4,439 — 12,848 3,972 Equity method investment in AMC Water handling and treatment (1) 405 — 2,450 507 Equity method investment in AMC Marketing 89,598 46,645 394,189 200,911 Marketing Total 1,019,555 896,612 2,865,104 2,980,757 Income from derivatives and other sources 56,977 222,269 228,874 475,195 Total revenue and other $ 1,076,532 1,118,881 $ 3,093,978 3,455,952 (1) Gathering and compression and water handling and treatment revenues were included through March 12, 2019. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. (c) Transaction Price Allocated to Remaining Performance Obligations For our product sales that have a contract term greater than one year, we have utilized the practical expedient in ASC 606, which does not require the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under our product sales contracts, each unit of product delivered to the customer represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. For our product sales that have a contract term of one year or less, we have utilized the practical expedient in ASC 606, which does not require the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. (d) Contract Balances Under our sales contracts, we invoice customers after our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under ASC 606. At December 31, 2018 and September 30, 2019, our receivables from contracts with customers were $475 million and $281 million, respectively. |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments. | |
Equity Method Investments | (5) Equity Method Investments At September 30, 2019, Antero owned approximately 31.5 % of Antero Midstream Corporation’s common stock, which is reflected in Antero’s consolidated financial statements using the equity method of accounting. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. Prior to March 13, 2019, our consolidated results included two equity method investments held by Antero Midstream Partners: a 15% equity interest in Stonewall Gas Gathering LLC (“Stonewall”), which operates a regional gathering pipeline on which Antero is an anchor shipper, and a 50 % interest in the joint venture entered into on February 6, 2017 between Antero Midstream Partners and MarkWest Energy Partners, L.P. (“MarkWest”), a wholly owned subsidiary of MPLX, LP, to develop processing and fractionation assets in Appalachia (the “Joint Venture”). Effective March 13, 2019, the equity in earnings of these investments are accounted for in the equity in earnings of Antero Midstream Corporation. The following table is a reconciliation of investments in unconsolidated affiliates for the nine months ended September 30, 2019 (in thousands): Stonewall (1) MarkWest Antero Midstream Corporation (2) Total Balance at December 31, 2018 $ 68,103 365,539 — 433,642 Investments (3) — 25,020 — 25,020 Equity in net income of unconsolidated affiliates 1,894 10,370 (102,457) (90,193) Distributions/dividends from unconsolidated affiliates (3,000) (9,605) (96,636) (109,241) Elimination of intercompany profit — — 30,621 30,621 Effects of deconsolidation (4) (66,997) (391,324) 1,987,795 1,529,474 Balance at September 30, 2019 $ — — 1,819,323 1,819,323 (1) Distributions are net of operating and capital requirements retained by Stonewall. (2) As adjusted for the amortization of the difference between the cost of the equity investment in Antero Midstream Corporation and the amount of underlying equity in the net assets of Antero Midstream Partners as of the date of deconsolidation. (3) Investments in the Joint Venture during the nine months ended September 30, 2019 relate to capital contributions for construction of additional processing facilities. (4) Effective March 13, 2019, the equity in earnings of Stonewall and the Joint Venture are accounted for in the equity in earnings of Antero Midstream Corporation. Summarized Financial Information of Antero Midstream Corporation The following tables present summarized financial information of Antero Midstream Corporation. Summarized financial information is presented from March 13, 2019. Balance Sheet (in thousands) September 30, 2019 Current assets $ 109,224 Noncurrent assets 6,336,280 Total assets $ 6,445,504 Current liabilities $ 259,628 Noncurrent liabilities 2,662,846 Stockholders' equity 3,523,030 Total liabilities and equity $ 6,445,504 Statement of Operations For the period March 13, 2019 through (in thousands) September 30, 2019 Revenues $ 553,521 Operating expenses 745,940 Loss from operations $ (192,419) Net loss attributable to the equity method investments $ (197,006) |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Liabilities | |
Accrued Liabilities | (6) Accrued Liabilities Accrued liabilities as of December 31, 2018 and September 30, 2019 consisted of the following items (in thousands): December 31, 2018 September 30, 2019 Capital expenditures $ 113,237 83,963 Gathering, compression, processing, and transportation expenses 148,032 141,036 Marketing expenses 67,082 47,763 Interest expense, net 43,444 62,255 Other 93,275 57,709 $ 465,070 392,726 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Long-Term Debt. | |
Long-Term Debt | (7) Long-Term Debt Long-term debt was as follows at December 31, 2018 and September 30, 2019 (in thousands): December 31, 2018 September 30, 2019 Antero Resources: Credit Facility (a) $ 405,000 275,000 5.375% senior notes due 2021 (b) 1,000,000 1,000,000 5.125% senior notes due 2022 (c) 1,100,000 1,100,000 5.625% senior notes due 2023 (d) 750,000 750,000 5.00% senior notes due 2025 (e) 600,000 600,000 Net unamortized premium 1,241 1,021 Net unamortized debt issuance costs (26,700) (22,193) Long-term debt 3,829,541 3,703,828 Antero Midstream Partners: Midstream Credit Facility (1) 990,000 — 5.375% senior notes due 2024 (1) 650,000 — Net unamortized debt issuance costs (1) (7,853) — Long-term debt 1,632,147 — Consolidated long-term debt $ 5,461,688 3,703,828 (1) At December 31, 2018, Antero Midstream Partners’ indebtedness was included in the consolidated financial statements of Antero. At September 30, 2019, following the deconsolidation, Antero Midstream Partners’ outstanding indebtedness is no longer reflected in Antero’s consolidated financial statements. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. (a) Senior Secured Revolving Credit Facility Antero has a senior secured revolving credit facility (the “Credit Facility”) with a consortium of bank lenders. Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of Antero’s assets and are subject to regular annual redeterminations. At September 30, 2019, the borrowing base under the Credit Facility was $4.5 billion and lender commitments were $2.5 billion. Each of these amounts were reaffirmed in the annual redetermination in April 2019. The next redetermination of the borrowing base is scheduled to occur in April 2020. The maturity date of the Credit Facility is the earlier of (i) October 26, 2022 and (ii) the date that is 91 days prior to the earliest stated redemption date of any series of Antero’s senior notes, unless such series of notes is refinanced. Under the Credit Facility, “Investment Grade Period” is a period that, as long as no event of default has occurred, commences when Antero elects to give notice to the Administrative Agent that Antero has received at least one of (i) a BBB- or better rating from Standard and Poor’s and (ii) a Baa3 or better rating from Moody’s (an “Investment Grade Rating”). An Investment Grade Period can end at Antero’s election. During any period that is not an Investment Grade Period, the Credit Facility is ratably secured by mortgages on substantially all of Antero’s properties, Antero’s and Antero Subsidiary Holdings LLC’s ownership interests in Antero Midstream Corporation, and guarantees from Antero’s restricted subsidiaries, as applicable. During an Investment Grade Period, the liens securing the obligations under the Credit Facility shall be automatically released (subject to the provisions of the Credit Facility). The Credit Facility contains certain covenants, including restrictions on indebtedness and dividends, and requirements with respect to working capital and interest coverage ratios. During any period that is not an Investment Grade Period, interest is payable at a variable rate based on LIBOR or the prime rate determined by Antero’s election at the time of borrowing, plus an applicable rate based on Antero’s borrowing base utilization which ranges from 25 basis points to 225 basis points. During an Investment Grade Period, interest is payable at a variable rate based on LIBOR or the prime rate determined by Antero’s election at the time of borrowing, plus an applicable rate based on Antero’s credit rating which ranges from 12.5 basis points to 175 basis points. Antero was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2018 and September 30, 2019. At September 30, 2019, Antero had an outstanding balance under the Credit Facility of $275 million and outstanding letters of credit of $703 million. At December 31, 2018, Antero had an outstanding balance under the Credit Facility of $405 million and outstanding letters of credit of $685 million. The average annualized interest rate incurred on the Credit Facility during the nine months ended September 30, 2019 was approximately 4.39 %. Commitment fees on the unused portion of the Credit Facility are due quarterly at rates ranging from (i) 0.300% to 0.375% (during any period that is not an Investment Grade Period) of the unused portion based on utilization and (ii) 0.150% to 0.300% (during an Investment Grade Period) of the unused portion based on Antero’s credit rating. (b) 5.375% Senior Notes Due 2021 On November 5, 2013, Antero issued $1 billion of 5.375% senior notes due November 1, 2021 (the “2021 notes”) at par. The 2021 notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2021 notes rank pari passu to Antero’s other outstanding senior notes. The 2021 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero’s wholly owned subsidiaries and certain of its future restricted subsidiaries. Interest on the 2021 notes is payable on May 1 and November 1 of each year. Antero may redeem all or part of the 2021 notes at any time at redemption prices ranging from 101.344% currently to 100.00% on or after November 1, 2019. If Antero undergoes a change of control followed by a rating decline, the holders of the 2021 notes will have the right to require Antero to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2021 notes, plus accrued and unpaid interest. (c) 5.125% Senior Notes Due 2022 On May 6, 2014, Antero issued $600 million of 5.125% senior notes due December 1, 2022 (the “2022 notes”) at par. On September 18, 2014, Antero issued an additional $500 million of the 2022 notes at 100.5 % of par. The 2022 notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2022 notes rank pari passu to Antero’s other outstanding senior notes. The 2022 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero’s wholly owned subsidiaries and certain of its future restricted subsidiaries. Interest on the 2022 notes is payable on June 1 and December 1 of each year. Antero may redeem all or part of the 2022 notes at any time at redemption prices ranging from 101.281% currently to 100.00% on or after June 1, 2020. If Antero undergoes a change of control followed by a rating decline, the holders of the 2022 notes will have the right to require Antero to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2022 notes, plus accrued and unpaid interest. (d) 5.625% Senior Notes Due 2023 On March 17, 2015, Antero issued $750 million of 5.625% senior notes due June 1, 2023 (the “2023 notes”) at par. The 2023 notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2023 notes rank pari passu to Antero’s other outstanding senior notes. The 2023 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero’s wholly owned subsidiaries and certain of its future restricted subsidiaries. Interest on the 2023 notes is payable on June 1 and December 1 of each year. Antero may redeem all or part of the 2023 notes at any time at redemption prices ranging from 102.813% to 100.00% on or after June 1, 2021. If Antero undergoes a change of control followed by a rating decline, the holders of the 2023 notes will have the right to require Antero to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2023 notes, plus accrued and unpaid interest. (e) 5.00% Senior Notes Due 2025 On December 21, 2016, Antero issued $600 million of 5.00 % senior notes due March 1, 2025 (the “2025 notes”) at par. The 2025 notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2025 notes rank pari passu to Antero’s other outstanding senior notes. The 2025 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero’s wholly owned subsidiaries and certain of its future restricted subsidiaries. Interest on the 2025 notes is payable on March 1 and September 1 of each year. Antero may redeem all or part of the 2025 notes at any time on or after March 1, 2020 at redemption prices ranging from 103.750% on or after March 1, 2020 to 100.00 % on or after March 1, 2023. In addition, on or before March 1, 2020, Antero may redeem up to 35% of the aggregate principal amount of the 2025 notes with the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 105.00 % of the principal amount of the 2025 notes, plus accrued and unpaid interest. At any time prior to March 1, 2020, Antero may also redeem the 2025 notes, in whole or in part, at a price equal to 100 % of the principal amount of the 2025 notes plus a “make-whole” premium and accrued and unpaid interest. If Antero undergoes a change of control followed by a rating decline, the holders of the 2025 notes will have the right to require Antero to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2025 notes, plus accrued and unpaid interest. (f) Treasury Management Facility Antero has a stand-alone revolving note with a lender that is also part of the Credit Facility lending consortium that provides for up to $25 million of cash management obligations in order to facilitate Antero’s daily treasury management. Borrowings under the revolving note are secured by the collateral for the Credit Facility. Borrowings under the revolving note bear interest at the lender’s prime rate plus 1.0 %. The note matures on June 1, 2020. At December 31, 2018, there was $5.4 million in outstanding borrowings under the revolving note included in “Other current liabilities” on the Company’s Consolidated Balance Sheet. At September 30, 2019, there were no outstanding borrowings under the revolving note. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | (8) Asset Retirement Obligations The following is a reconciliation of the Company’s asset retirement obligations for the nine months ended September 30, 2019 (in thousands): Asset retirement obligations—December 31, 2018 $ 58,979 Obligations settled (153) Obligations incurred 1,361 Revisions to prior estimates — Accretion expense 2,821 Effect of deconsolidation of Antero Midstream Partners LP (1) (7,518) Asset retirement obligations—September 30, 2019 $ 55,490 (1) Asset retirement obligations are included in other liabilities on the Company’s unaudited condensed consolidated balance sheets. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Equity-Based Compensation | |
Equity-Based Compensation | (9) Equity-Based Compensation Antero is authorized to grant up to 16,906,500 shares of common stock to employees and directors of the Company under the Antero Resources Corporation Long-Term Incentive Plan (the “Plan”). The Plan allows equity-based compensation awards to be granted in a variety of forms, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, dividend equivalent awards, and other types of awards. The terms and conditions of the awards granted are established by the Compensation Committee of Antero’s Board of Directors. A total of 6,046,007 shares were available for future grant under the Plan as of September 30, 2019. Antero Midstream Partners’ general partner was authorized to grant up to 10,000,000 common units representing limited partner interests in Antero Midstream Partners under the Antero Midstream Partners LP Long-Term Incentive Plan (the “AMP Plan”) to non-employee directors of its general partner and certain officers, employees, and consultants of Antero Midstream Partners and its affiliates (which include Antero). As part of the Transactions, each of the outstanding phantom units in the AMP Plan, whether vested or unvested, were assumed by Antero Midstream Corporation and converted into restricted stock units under the Antero Midstream Corporation Long Term Incentive Plan (the “AMC Plan”) representing a right to receive 1.8926 shares of Antero Midstream Corporation’s Common Stock, par value $0.01 per share (“Antero Midstream Corporation Common Stock”), for each converted phantom unit. On March 12, 2019, the Board of Antero Midstream Corporation adopted the AMC Plan under which awards may be granted to employees, directors and other service providers of Antero and its affiliates. The AMC Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, other stock-based awards, cash awards and substitute awards. The Company’s equity-based compensation expense, by type of award, was as follows for the three and nine months ended September 30, 2018 and 2019 (in thousands): Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Restricted stock unit awards $ 10,001 2,229 $ 33,676 8,829 Stock options 452 — 1,428 389 Performance share unit awards 1,017 399 7,018 6,027 Antero Midstream Partners phantom unit awards (1) 4,193 867 12,752 2,942 Equity awards issued to directors 539 380 1,555 1,140 Total expense $ 16,202 3,875 $ 56,429 19,327 (1) Partners to Antero. Antero allocates a portion of equity-based compensation expense related to grants prior to the Transactions to Antero Partners based on its proportionate share of Antero’s labor costs. Through March 12, 2019, the total amount of equity-based compensation is included in the consolidated financial statements of Antero; and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Partners is no longer reflected in Antero’s consolidated financial statements. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. Restricted Stock Unit Awards Restricted stock unit awards vest subject to the satisfaction of service requirements. Expense related to each restricted stock unit award is recognized on a straight-line basis over the requisite service period of the entire award. Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period. The grant date fair values of these awards are determined based on the closing price of Antero’s common stock on the date of the grant. A summary of restricted stock unit award activity for the nine months ended September 30, 2019 is as follows: Weighted Aggregate Number of grant date intrinsic value Total awarded and unvested—December 31, 2018 1,712,485 $ 24.57 $ 16,080 Granted 1,610,690 $ 8.60 Vested (718,192) $ 27.70 Forfeited (307,938) $ 16.56 Total awarded and unvested—September 30, 2019 2,297,045 $ 13.47 $ 6,937 Intrinsic values are based on the closing price of Antero’s common stock on the referenced dates. As of September 30, 2019, there was $25 million of unamortized equity-based compensation expense related to unvested restricted stock units. That expense is expected to be recognized over a weighted average period of approximately 2.6 years. Stock Options Stock options granted under the Plan have a maximum contractual life of 10 years . Expense related to stock options is recognized on a straight-line basis over the requisite service period of the entire award. Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period. Stock options were granted with an exercise price equal to or greater than the market price of Antero’s common stock on the dates of grant. A summary of stock option activity for the nine months ended September 30, 2019 is as follows: Weighted Weighted average Intrinsic Stock exercise contractual value Outstanding at December 31, 2018 579,617 $ 50.55 5.81 $ — Granted — $ — Exercised — $ — Forfeited (79,484) $ 50.25 Expired — $ — Outstanding at September 30, 2019 500,133 $ 50.60 4.98 $ — Vested or expected to vest as of September 30, 2019 500,133 $ 50.60 4.98 $ — Exercisable at September 30, 2019 500,133 $ 50.60 4.98 $ — Intrinsic values are based on the exercise price of the options and the closing price of Antero’s common stock on the referenced dates. A Black Scholes option pricing model is used to determine the grant-date fair value of stock options. Expected volatility was derived from the volatility of the historical stock prices of a peer group of similar publicly traded companies’ stock prices as Antero’s common stock had traded for a relatively short period of time at the dates the options were granted. The risk free interest rate was determined using the implied yield available for zero coupon U.S. government issues with a remaining term approximating the expected life of the options. A dividend yield of zero was assumed. As of September 30, 2019, there was no unamortized equity-based compensation expense because all stock options were fully vested. Performance Share Unit Awards Performance Share Unit Awards Based on Stock Price Targets In 2016, the Company granted performance share unit awards (“PSUs”) to certain of its executive officers that are based on stock price targets. The vesting of these PSUs is conditioned on the closing price of Antero’s common stock achieving specific price thresholds over 10 -day periods, subject to the following vesting restrictions: no PSUs may vest before the first anniversary of the grant date; no more than one-third of the PSUs may vest before the second anniversary of the grant date; and no more than two-thirds of the PSUs may vest before the third anniversary of the grant date. Any PSUs which have not vested by the fifth anniversary of the grant date will expire. Expense related to these PSUs is recognized on a graded basis over three years . Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period. Performance Share Unit Awards Based on Total Shareholder Return (“TSR”) In 2016 and 2017, the Company granted PSUs to certain of its employees and executive officers that vest based on the TSR of Antero’s common stock relative to the TSR of a peer group of companies over a three-year performance period. The number of shares of common stock which may ultimately be earned ranges from zero to 200 % of the PSUs granted. Expense related to these PSUs is recognized on a straight-line basis over three years . Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period. In 2019, the Company granted PSUs to certain of its employees and executive officers that vest based on Antero’s absolute TSR, with target payout achieved if the price per share of Antero’s common stock reaches 125% of the beginning price (as defined in the award agreement) at the end of a three-year performance period. The number of shares of common stock which may ultimately be earned ranges from zero to 200 % of the PSUs granted. Expense related to these PSUs is recognized on a straight-line basis over three years . Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period. Performance Share Unit Awards Based on TSR and Return on Capital Employed (“ROCE”) In 2018, the Company granted PSUs to certain of its employees and executive officers, a portion of which vest based on the Company’s absolute TSR, with target payout achieved if the price per share of Antero’s common stock reaches 125% of the beginning price (as defined in the award agreement) at the end of a three-year performance period (“TSR PSUs”). The number of awards actually earned with respect to the TSR PSUs will be subject to further adjustment based on the TSR of Antero’s common stock relative to the TSR of a peer group of companies over the same period. The number of shares of common stock that may ultimately be earned with respect to the TSR PSUs ranges from zero to 200 % of the target number of TSR PSUs originally granted. Expense related to the TSR PSUs is recognized on a straight-line basis over three years . Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period. The other portion of the PSUs granted in 2018 vest based on the Company’s actual ROCE (as defined in the award agreement) over a three-year period as compared to a targeted ROCE (“ROCE PSUs”). The number of shares of common stock that may ultimately be earned with respect to the ROCE PSUs ranges from zero to 200 % of the target number of ROCE PSUs originally granted. Expense related to the ROCE PSUs is recognized based on the number of shares of common stock that are expected to be issued at the end of the measurement period, and is reversed if the likelihood of achieving the performance condition decreases. Summary Information for Performance Share Unit Awards A summary of PSU activity for the nine months ended September 30, 2019 is as follows: Number of Weighted Total awarded and unvested—December 31, 2018 1,767,299 $ 26.36 Granted 1,416,378 $ 9.26 Vested (31,944) $ 27.38 Forfeited (614,450) $ 26.61 Total awarded and unvested—September 30, 2019 2,537,283 $ 16.74 The grant-date fair values of market-based PSUs were determined using Monte Carlo simulations, which use a probabilistic approach for estimating the fair values of the awards. Expected volatilities were derived from the volatility of the historical stock prices of a peer group of similar publicly-traded companies. The risk-free interest rate was determined using the yield available for zero-coupon U.S. government issues with remaining terms corresponding to the service periods of the PSUs. A dividend yield of zero was assumed. The grant-date fair value for the ROCE-based PSUs is based on the closing price of Antero’s common stock on the date of the grant, assuming the achievement of the performance condition. The following table presents information regarding the weighted average fair values for market-based PSUs granted during the nine months ended September 30, 2018 and 2019, and the assumptions used to determine the fair values: Nine months ended September 30, 2018 2019 Dividend yield — % — % Volatility 41 % 36 % Risk-free interest rate 2.49 % 2.35 % Weighted average fair value of awards granted $ 24.85 $ 9.26 As of September 30, 2019, there was $20 million of unamortized equity-based compensation expense related to unvested PSUs. That expense is expected to be recognized over a weighted average period of approximately 1.9 years. Antero Midstream Partners Phantom Unit Awards and Antero Midstream Corporation Restricted Stock Unit Awards Phantom units granted by Antero Midstream Partners vested subject to the satisfaction of service requirements, upon the completion of which common units in Antero Midstream Partners were delivered to the holder of the phantom units. Phantom units also contained distribution equivalent rights which entitled the holder of vested common units to receive a “catch up” payment equal to common unit distributions paid by Antero Partners during the vesting period of the phantom unit award. These phantom units were treated, for accounting purposes, as if Antero Partners distributed the units to Antero. Antero recognized compensation expense as the units were granted to its employees, and a portion of the expense was allocated to Antero Partners. Expense related to each phantom unit award was recognized on a straight-line basis over the requisite service period of the entire award. Forfeitures were accounted for as they occurred by reversing the expense previously recognized for awards that were forfeited during the period. The grant date fair values of these awards was determined based on the closing price of Antero In connection with the closing of the Transactions, the Board of Antero Midstream Corporation adopted the AMC Plan. In accordance with the terms of the Transactions, each of the outstanding units in the AMP Plan, whether vested or unvested, was assumed by Antero Midstream Corporation and converted into restricted stock units under the AMC Plan at 1.8926 shares of Antero Midstream Corporation Common Stock LTIP for each converted phantom unit. A summary of phantom unit awards activity for the nine months ended September 30, 2019 is as follows: Number of Weighted Aggregate Total awarded and unvested—December 31, 2018 583,000 $ 27.63 $ 12,470 Granted 5,972 $ 23.44 Vested (3,853) $ 32.44 Forfeited (20,338) $ 26.73 AMP Plan Units awarded and unvested—March 12, 2019 564,781 $ 27.59 $ 13,476 Effect of conversion (1) 504,119 $ 14.58 Vested (358,831) $ 14.34 Forfeited (45,803) $ 14.58 Total awarded and unvested—September 30, 2019 664,266 $ 14.70 $ 4,916 (1) Intrinsic values are based on the closing price of shares of Antero Midstream Corporation’s common stock or Antero Midstream Partners’ common units, as applicable, on the referenced dates. As of September 30, 2019, there was $7.6 million of unamortized equity-based compensation expense related to unvested phantom unit awards. That expense is expected to be recognized over a weighted average period of approximately 1.9 years. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments | |
Financial Instruments | (10) Financial Instruments The carrying values of accounts receivable and accounts payable at December 31, 2018 and September 30, 2019 approximated market values because of their short-term nature. The carrying values of the amounts outstanding under the Credit Facility and Antero Midstream Partners’ credit facility at December 31, 2018 and the Credit Facility at September 30, 2019 approximated fair value because the variable interest rates are reflective of current market conditions. Based on Level 2 market data inputs, the fair value of senior notes was approximately $3.9 billion and $3.1 billion at December 31, 2018 and September 30, 2019, respectively. See Note 11 to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments. | |
Derivative Instruments | (11) Derivative Instruments (a) Commodity Derivative Positions The Company periodically enters into natural gas, NGLs, and oil derivative contracts with counterparties to hedge the price risk associated with its production. These derivatives are not entered into for trading purposes. To the extent that changes occur in the market prices of natural gas, NGLs, and oil, the Company is exposed to market risk on these open contracts. This market risk exposure is generally offset by the change in market prices of natural gas, NGLs, and oil recognized upon the ultimate sale of the Company’s production. The Company was party to various fixed price commodity swap contracts that settled during the nine months ended September 30, 2018 and 2019. The Company enters into these swap contracts when management believes that favorable future sales prices for the Company’s production can be secured. Under these swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company pays the difference to the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company receives the difference from the counterparty. In addition, the Company has entered into basis swap contracts in order to hedge the difference between the New York Mercantile Exchange (“NYMEX”) index price and a local index price. The Company also entered into NGL contracts, which establish a contractual price for the settlement month as a fixed percentage of the West Texas Intermediate Crude Oil index (“WTI”) price for the settlement month. When the percentage of the contractual price is above the contracted percentage, the Company pays the difference to the counterparty. When it is below the contracted percentage, the Company receives the difference from the counterparty. In addition, the Company has entered into natural gas collar contracts, which establish ceiling and floor prices for the sale of notional volumes of natural gas as specified in the collar contracts. Under these contracts, the Company pays the difference between the ceiling price and the published index price in the event the published index price is above the ceiling price. When the published index price is below the floor price, the Company receives the difference between the floor price and the published index price. No amounts are paid or received if the index price is between the floor and the ceiling prices. The index prices in our collars are consistent with the index prices used to sell our production. The Company’s derivative contracts have not been designated as hedges for accounting purposes; therefore, all gains and losses are recognized in the Company’s statements of operations. As of September 30, 2019, the Company’s fixed price natural gas, oil and NGL swap positions from October 1, 2019 through December 31, 2023 were as follows (abbreviations in the table refer to the index to which the swap position is tied, as follows: NYMEX=Henry Hub; NYMEX-WTI=West Texas Intermediate; ARA Butane =European Butane CIF ARA; FEI Butane = Butane Far East Asia Index; ARA Propane =European Propane CIF ARA; FEI Propane = Propane Far East Asia Index; Mont Belvieu Propane Non-TET=Mont Belvieu Propane; Mont Belvieu Butane Non-TET=Mont Belvieu Butane; Mont Belvieu Natural Gasoline Non-TET=Mont Belvieu Natural Gasoline): Natural gas Natural Gas Oil Weighted Three months ending December 31, 2019: NYMEX ($/MMBtu) 996,766 — — $ 3.23 ARA Propane ($/Gal) — 10,113 — 0.68 FEI Propane ($/Gal) — 9,809 — 0.81 Mont Belvieu Propane Non-TET ($/Gal) — 8,000 — 0.50 Mont Belvieu Butane Non-TET ($/Gal) — 4,000 — 0.59 Mont Belvieu Natural Gasoline Non-TET ($/Gal) — 3,500 — 1.14 NYMEX-WTI ($/Bbl) — — 18,000 59.05 Total 996,766 35,422 18,000 Year ending December 31, 2020: NYMEX ($/MMBtu) 2,227,500 — $ 2.87 ARA Propane ($/Gal) — 9,761 — 0.65 FEI Propane ($/Gal) — 2,045 — 0.81 Mont Belvieu Butane Non-TET ($/Gal) — 2,000 — 0.57 NYMEX-WTI ($/Bbl) — 12,000 56.60 Total 2,227,500 13,806 12,000 Year ending December 31, 2021: NYMEX ($/MMBtu) 2,110,000 $ 2.79 Year ending December 31, 2022: NYMEX ($/MMBtu) 290,000 $ 2.96 Year ending December 31, 2023: NYMEX ($/MMBtu) 90,000 $ 2.91 As of September 30, 2019, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of TCO to the NYMEX Henry Hub natural gas price, and NGL basis swap positions, which settle on the pricing index to basis differential of Mont Belvieu Butane to the European Butane CIF ARA natural gas liquids price, were as follows: Natural gas MMBtu/day Natural Gas Weighted average hedged differential Three months ending December 31, 2019: ARA to Mont Belvieu Non-TET ($/Gal) — 4,050 $ 0.25 Year ending December 31, 2020: NYMEX to TCO ($/MMBtu) 60,000 — 0.353 ARA to Mont Belvieu Non-TET ($/Gal) — 4,273 $ 0.23 Total 60,000 4,273 Year ending December 31, 2021: NYMEX to TCO ($/MMBtu) 40,000 — $ 0.414 Year ending December 31, 2022: NYMEX to TCO ($/MMBtu) 60,000 — $ 0.515 Year ending December 31, 2023: NYMEX to TCO ($/MMBtu) 50,000 — $ 0.525 Year ending December 31, 2024: NYMEX to TCO ($/MMBtu) 50,000 — $ 0.530 As of September 30, 2019, the Company had natural gas and NGL contracts for October 1, 2019 through December 31, 2021 that fix the Mont Belvieu index price to percentages of WTI as follows: Natural Gas Liquids Bbls/day Weighted average payout ratio Three months ending December 31, 2019: Mont Belvieu Propane to NYMEX-WTI 500 50 % Mont Belvieu Natural Gasoline to NYMEX-WTI 13,900 81 % Total 14,400 Year ending December 31, 2020: Mont Belvieu Propane to NYMEX-WTI 500 50 % Mont Belvieu Natural Gasoline to NYMEX-WTI 15,000 79 % Total 15,500 Year ending December 31, 2021: Mont Belvieu Natural Gasoline to NYMEX-WTI 13,000 78 % As of September 30, 2019, the Company’s fixed price natural gas collar positions from October 1, 2019 through December 31, 2019 were as follows (abbreviations in the table refer to the index to which the collar position is tied, as follows (NYMEX=Henry Hub): Natural gas (MMBtu/day) Weighted average index price Ceiling Floor Ceiling price Floor price Three months ending December 31, 2019: NYMEX ($/MMBtu) 1,575,000 1,333,234 $ 3.52 $ 2.50 An initial premium of $13 million was paid at the inception of natural gas collar contracts with one counterparty, and is recorded as a derivative asset measured at fair value. As of September 30, 2019, the unamortized portion of the premium was $4.5 million. (b) Marketing Derivatives In 2017, due to delay of the in-service date for a pipeline on which the Company is an anchor shipper, the Company realized it would not be able to fulfill its delivery obligations under a 2018 natural gas sales contract. In order to acquire gas to fulfill its delivery obligations, the Company entered into several natural gas purchase agreements with index-based pricing to purchase gas for resale under this sales contract. Subsequently, the Company and the counterparty to the sales contract came to an agreement that the Company’s delivery obligations under the contract would not begin until the earlier of (1) the in-service date of the pipeline and (2) January 1, 2019. Consequently, in December 2017, the Company entered into natural gas sales agreements with index-based pricing to resell the purchased gas for delivery during the period from February to October 2018. The natural gas that it had purchased for January was sold on the spot market during January. The Company determined that these gas purchase and sales agreements should be accounted for as derivatives and measured at fair value at the end of each period. For the three and nine months ended September 30, 2018, the Company recognized a fair value loss of less than $1 million and a gain of $94 million, respectively. There were no marketing derivative fair value gains or losses during the three or nine months ended September 30, 2019. (c) Summary The following table presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the consolidated balance sheets as of December 31, 2018 and September 30, 2019. None of the Company’s derivative instruments are designated as hedges for accounting purposes. December 31, 2018 September 30, 2019 Balance sheet Fair value Balance sheet Fair value (In thousands) (In thousands) Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives - current Derivative instruments $ 245,263 Derivative instruments $ 411,774 Commodity derivatives - noncurrent Derivative instruments 362,169 Derivative instruments 405,180 Total asset derivatives 607,432 816,954 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives - current Derivative instruments 532 Derivative instruments — Commodity derivatives - noncurrent Derivative instruments — Derivative instruments — Total liability derivatives 532 — Net derivatives $ 606,900 $ 816,954 The following table presents the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands): December 31, 2018 September 30, 2019 Gross Gross amounts Net amounts Gross Gross amounts Net amounts Commodity derivative assets $ 658,830 (51,398) 607,432 $ 838,795 (21,841) 816,954 Commodity derivative liabilities $ (51,930) 51,398 (532) $ (21,841) 21,841 — The following is a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands): Statement of Three months ended September 30, Nine months ended September 30, location 2018 2019 2018 2019 Commodity derivative fair value gains Revenue $ 57,019 220,788 134,793 471,847 Marketing derivative fair value gains (losses) Revenue $ (42) — 94,081 — The fair value of derivative instruments was determined using Level 2 inputs. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | (12) Leases On February 25, 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-02, Leases The Company is a lessee to both operating and finance lease arrangements. The standard resulted in an increased in assets and liabilities related to our operating leases. The Company leases certain office space, processing plants, drilling rigs and completion services, gas gathering lines, compressor stations, and other office and field equipment. Leases with an initial term of 12 months or less are considered short-term and are not recorded on the balance sheet. Instead, the short-term leases are recognized in expense on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease from one to 20 years or more. The exercise of the lease renewal options are at the Company’s sole discretion. The depreciable lives of the leased assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of the Company’s lease agreements include minimum payments based on a percentage of produced volumes over contractual levels and others include rental payments adjusted periodically for inflation. The Company has elected the effective date method for adoption of the new leasing standard under Topic 842. This method allows the Company to not make retrospective adjustments for leases that were in effect prior to the adoption date of January 1, 2019 when disclosing comparable prior periods, but instead, account for the prior period leases under Topic 840, which was the guidance in place at the time of the original reporting. The Company considers all contracts that have assets specified in the contract, either explicitly or implicitly, that the Company has substantially all of the capacity of the asset, and has the right to obtain substantially all of the economic benefits of that asset, without the lessor’s ability to have a substantive right to substitute that asset, as leased assets under Topic 842. For any contract deemed to include a leased asset, that asset is capitalized on the balance sheet as a right-of-use asset and a corresponding lease liability is recorded at the present value of the known future minimum payments of the contract using a discount rate on the date of commencement. The leased asset classification is determined at the date of recording as either operating or financing, depending upon certain criteria of the contract. The discount rate used for present value calculations is the discount rate implicit in the contract. If an implicit rate is not determinable, a collateralized incremental borrowing rate is used at the date of commencement. The Company used the collateralized incremental borrowing rate, adjusted for length of lease term, for all of its present value calculations at the initial adoption of Topic 842. The Company has made an accounting policy election to adopt the practical expedient for combining lease and non-lease components on an asset class basis. This expedient allows the Company to combine non-lease components such as real estate taxes, insurance, maintenance, and other operating expenses associated with the leased premises with the lease component of a lease agreement on an asset class basis when the non-lease components of the agreement cannot be easily bifurcated from the lease payment. Currently, the Company is only applying this expedient to certain office space agreements. Supplemental Balance Sheet Information Related to Leases The Company’s lease assets as of September 30, 2019 consisted of the following items (in thousands): September 30, 2019 Operating Leases Finance Leases Right-of-use Assets: Processing plants $ 1,554,601 — Drilling rigs and completion services 93,846 — Gas gathering lines and compressor stations (1) 1,535,146 — Office space 41,285 — Vehicles 4,971 2,591 Other office and field equipment 299 448 Total right-of-use assets $ 3,230,148 3,039 (2) (1) Gas gathering lines and compressor stations leases includes $1.3 billion related to Antero Midstream Corporation. (2) Financing lease assets are recorded net of accumulated amortization of $9 million as of September 30, 2019. The Company’s lease liabilities as of September 30, 2019 consisted of the following items (in thousands): September 30, 2019 Operating Leases Finance Leases Location on the balance sheet: Short-term lease liabilities $ 408,814 1,176 Long-term lease liabilities 2,821,334 1,863 Total lease liabilities $ 3,230,148 3,039 The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842 because Antero is the sole customer of the assets and because Antero makes the decisions that most impact the economic performance of the assets. Supplemental Information Related to Leases Costs associated with operating leases were included in the statement of operations and comprehensive income (loss) for the three and nine months ended September 30, 2019 (in thousands): Statement of Operations Location Three months ended September 30, 2019 Nine months ended September 30, 2019 Gathering, compression, processing, and transportation $ 237,618 $ 644,007 General and administrative 2,859 8,395 Contract termination and rig stacking — 10,692 Total Lease Expense $ 240,477 $ 663,094 Costs associated with finance leases of less than $1 million for each of the three and nine months ended September 30, 2019 were included in interest expense. We capitalized $53 million and $161 million, respectively, of costs related to operating leases and less than $1 million of costs related to finance leases during each of the three and nine months ended September 30, 2019, respectively. Short-term lease costs that are more than one month but less than 12 months are excluded from the above amounts and total $115 million at September 30, 2019. Supplemental Cash Flow Information Related to Leases The following is the Company’s supplemental cash flow information related to leases for the three and nine months ended September 30, 2019 (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating Leases Finance Leases Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash out flows related to operating leases $ 234,399 — $ 591,963 — Investing cash out flows related to operating leases 47,417 — 146,315 — Financing cash out flows related to financing leases — 303 — 1,967 281,816 303 738,278 1,967 Noncash activities: Right of use assets obtained in exchange for operating lease liabilities — — 3,345,549 — Right of use assets obtained in exchange for financing lease liabilities — — — — Maturities of Lease Liabilities The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2019 (in thousands): (in thousands) Operating Leases Financing Leases Total Remainder of 2019 $ 151,345 21 151,366 2020 578,615 523 579,138 2021 506,402 1,152 507,554 2022 495,694 1,298 496,992 2023 491,513 45 491,558 2024 482,745 — 482,745 Thereafter 1,447,537 — 1,447,537 Total lease payments 4,153,851 3,039 4,156,890 Less: imputed interest (923,703) — (923,703) Total $ 3,230,148 3,039 3,233,187 As of December 31, 2018, the following future minimum payments were required for office and equipment leases: (in thousands) Office Leases Equipment Leases Total 2019 $ 8,630 6,042 14,672 2020 8,471 4,517 12,988 2021 8,450 2,410 10,860 2022 8,427 274 8,701 2023 7,495 — 7,495 Thereafter 49,367 — 49,367 Total $ 90,840 13,243 104,083 Lease Term and Discount Rate The table below is the Company’s weighted-average remaining lease term and discount rate as of September 30, 2019: September 30, 2019 Operating Leases Finance Leases Weighted-average remaining lease term: 8.4 years 2.1 years Weighted-average discount rate: 6.1 % 5.7 % As of September 30, 2019, the Company had requested additional processing capacity which will be accounted for as lease modifications when the processing capacity becomes available in 2019 and 2020. Related party lease disclosure The Company has a gathering and compression agreement with Antero Midstream Corporation, whereby Antero Midstream Corporation receives a low-pressure gathering fee per Mcf, a high-pressure gathering fee per Mcf, and a compression fee per Mcf, in each case subject to adjustments based on the consumer price index. If and to the extent we request that Antero Midstream Corporation construct new high pressure lines and compressor stations, the gathering and compression agreement contains minimum volume commitments that require Antero Resources to utilize or pay for . For the three and nine months ended September 30, 2019, gathering and compression fees paid by Antero related to this agreement were million, respectively. As of September 30, 2019, |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Commitments | |
Commitments | (13) Commitments The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have remaining lease terms in excess of one year as of September 30, 2019 (in thousands). Firm Processing, Land payment obligations Operating and Financing Leases Imputed Interest for Leases (a) (b) (c) (d) (d) Total Remainder of 2019 $ 282,571 13,667 4,653 102,808 48,558 452,257 2020 1,123,782 54,425 5,557 399,881 179,257 1,762,902 2021 1,100,079 54,093 3,177 350,364 157,190 1,664,903 2022 1,047,162 53,606 259 361,057 135,935 1,598,019 2023 1,034,641 58,565 — 377,836 113,722 1,584,764 2024 994,534 58,687 — 392,323 90,422 1,535,966 Thereafter 7,816,594 152,523 — 1,248,918 198,619 9,416,654 Total $ 13,399,363 445,566 13,646 3,233,187 923,703 18,015,465 (a) Firm Transportation The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market. These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates, or pay for any deficiencies at specified reservation fee rates. The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest. None of these agreements were determined to be leases. (b) Processing, Gathering, and Compression Service Commitments The Company has entered into various long- term gas processing, gathering and compression service agreements. Certain of these agreements were determined to be leases. The minimum payment obligations under the agreements that are not leases are presented in this column. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest. The values in the table also include minimum processing fees to be paid to the Joint Venture owned by Antero Partners and MarkWest. (c) Land Payment Obligations The Company has entered into various land acquisition agreements. Certain of these agreements contain minimum payment obligations over various terms. The values in the table represent the minimum payments due under these arrangements. None of these agreements were determined to be leases. (d) Leases, including imputed interest The Company has obligations under contracts for services provided by drilling rigs and completion fleets, processing, gathering, and compression services agreements, and office and equipment leases. The values in the table represent the gross amounts that we are committed to pay; however, we will record in our financial statements our proportionate share of costs based on our working interests. Refer to Note 12 to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Contingencies | |
Contingencies | (14) Contingencies Environmental As disclosed previously in our 2018 10-K, in June 2018, following site inspections conducted in September 2017 at certain of our facilities located in Doddridge County, Tyler County, and Ritchie County, West Virginia, we received a Notice of Violation (“NOV”) from the U.S. Environmental Protection Agency (“EPA”) Region III for alleged violations of the federal Clean Air Act and the West Virginia State Implementation Plan relating to permitting and control requirements for emissions of regulated pollutants at several of our natural gas production facilities. The NOV alleges that combustion devices at these facilities did not meet applicable air permitting requirements. Separately, in June 2018, we received an information request from EPA Region III pursuant to Section 114(a) of the Clean Air Act relating to the facilities that were inspected in September 2017 as well as additional Antero facilities for the purpose of determining if the additional facilities have the same alleged compliance issues that were identified during the September 2017 inspections. We have separately received an NOV from West Virginia Department of Environmental Protection (“WVDEP”) alleging violations relating to the same issues being investigated by the EPA. We continue to negotiate with EPA and WVDEP to resolve the issues alleged in the NOVs and the information request; however we believe that there is a reasonable possibility that these actions may result in monetary sanctions exceeding $100,000. Our operations at these facilities are not suspended, and management does not expect these matters to have a material adverse effect on our financial condition, results of operations, or cash flows. SJGC In March 2015, the Company filed suit against South Jersey Gas Company and South Jersey Resources Group, LLC (collectively, “SJGC”) in United States District Court in Colorado seeking relief for breach of contract and damages in the amounts that SJGC had short paid, and continued to short pay, the Company in connection with two nearly identical long term gas contracts. Under those contracts, SJGC are long term purchasers of 80,000 MMBtu/day of the Company’s natural gas production. Deliveries under the contracts began in October 2011 and the term of the contracts continues through October 2019. The price for gas was based on specified indices in the contracts. Beginning in October 2014, SJGC began short paying the Company based on price indices unilaterally selected by SJGC and not the applicable index specified in the contracts. SJGC claimed that the index price specified in the contracts, and the index at which SJGC paid for deliveries from 2011 through September 2014, was no longer appropriate under the contracts because a market disruption event (as defined by the contract) had occurred and, as a result, a new index price was required to be determined by the parties. The Company rejected SJGC’s contention that a market disruption event occurred. SJGC’s actions constituted a breach of the contracts by failing to pay the Company based on the express price terms of the contracts and paying the Company based on unilaterally selected price indices in violation of the contracts’ remedial provisions. On May 8, 2017, a jury in the United States District Court in Colorado returned a unanimous verdict finding in favor of Antero’s positions in the lawsuit against SJGC. On July 21, 2017, final judgment on the jury’s unanimous verdict was entered by the court. On August 18, 2017, SJGC filed post-judgment motions with the court. On March 23, 2018, the court denied SJGC’s post-judgment motions. On April 20, 2018, SJGC appealed the final judgment to the United States Court of Appeals for the Tenth Circuit. On August 6, 2019, the Tenth Circuit Court of Appeals affirmed the judgment of the trial court, and SJGC declined further appeal. Subsequent to the entry of judgment on July 21, 2017, SJGC continued to short pay the Company on the basis of unilaterally selected price indices and not the index specified in the contract. Accordingly, on December 21, 2017, Antero filed suit against SJGC to recover for its damages since March of 2017. After the judgment in the first lawsuit was affirmed, SJGC and Antero filed a joint motion for entry of judgment with the court on September 27, 2019 in which SJGC stipulated to liability and damages in the second lawsuit. The Company received $59 million during the quarter and $23 million subsequent to the quarter for an aggregate payment of $82 million from SJGC, which was in full satisfaction and discharge of judgments entered in favor of the Company in the above described lawsuits. Antero recognized $54 million in natural gas sales, $3 million in production taxes, and $8 million in interest in the Company’s statement of operations for the three and nine months ended September 30, 2019, related to these lawsuits. The $23 million was included in accrued revenue on the Company’s consolidated balance sheet at September 30, 2019. WGL The Company and Washington Gas Light Company and WGL Midstream, Inc. (collectively, “WGL”) were involved in a pricing dispute involving firm gas sales contracts executed June 20, 2014 (the “Contracts”) that the Company began delivering gas under in January 2016. From January 2016 through July 2017 and from December 2017 through January 2018, the aggregate daily gas volumes contracted for under the Contracts was 500,000 MMBtu/day, with the aggregate daily contracted volumes having increased to 600,000 MMBtu/day from August through November 2017. The Company invoiced WGL based on the natural gas index price specified in the Contracts and WGL paid the Company based on that invoice price. However, WGL asserted that the index price was no longer appropriate under the Contracts and claimed that an undefined alternative index was more appropriate for the delivery point of the gas. In July 2016, the matter was referred to arbitration by the Colorado district court. In January 2017, the arbitration panel ruled in the Company’s favor. As a result, the index price has remained as specified in the Contracts and there will be no adjustments to the invoices that have been paid by WGL, nor will future invoices to WGL be adjusted based on the same claim rejected by the arbitration panel. The arbitration panel’s award was confirmed by the Colorado district court on April 14, 2017. In March of 2017, WGL filed a second legal proceeding against the Company in Colorado district court alleging breach of contract and seeking damages of more than $30 million. In this lawsuit, WGL claimed that the Company breached its contractual obligations under the Contracts by failing to deliver “TCO pool” gas. In subsequent filings, WGL explained that its claims were based on an alleged obligation that the Company must deliver gas to the Columbia IPP Pool (“IPP Pool”). WGL asserted this exact same issue in the arbitration and it was rejected by the arbitration panel. The arbitration panel specifically found that the Delivery Point under the Contracts was at a specific point in Braxton, West Virginia, not the IPP Pool. On August 24, 2017, the Colorado district court dismissed with prejudice WGL’s claims against the Company in its new lawsuit and found that the Company had not breached its Contracts with WGL by allegedly failing to deliver to the IPP Pool. The Court dismissed WGL’s lawsuit because WGL had not adequately pled a claim against Antero for the alleged failure to deliver “TCO pool” gas under the Contracts. WGL has appealed this decision to the Colorado Court of Appeals and on October 11, 2018 the Colorado Court of Appeals reversed the Colorado district court’s decision finding that WGL had adequately pled a claim for relief and remanded the case back to the district court for further proceedings. The Company is also actively engaged in pursuing cover damages against WGL based on WGL’s failure to take receipt of all of the agreed quantities of gas required under the Contracts. WGL’s failure to take the gas volumes specified in the Contracts is directly related to WGL’s lack of primary firm transportation rights at the Delivery Point. The failures by WGL to take the full contracted volumes gas began in April 2017 and continued each month through December 2017 in varying quantities. In defense of its conduct, WGL asserted to the Company that their failure to receive gas is excused by (1) the Company’s failure to deliver gas to the IPP Pool or (2) alleged instances of Force Majeure under the Contracts. However, as stated above, the alleged obligation that the Company must deliver gas to the IPP Pool was already rejected by the arbitration panel. Further, the Contracts expressly prohibit a Force Majeure claim in circumstances in which the gas purchaser does not have primary firm transportation agreements in place to transport the purchased gas. In each instance that WGL failed to receive the quantity of gas required under the Contracts, the Company resold the quantities not taken and invoiced WGL for cover damages pursuant to the terms of the Contracts. WGL refused to pay for the invoiced cover damages as required by the Contracts and also short paid the Company for, among other things, certain amounts of gas received by WGL. The Company filed a lawsuit against WGL in Colorado district court on October 24, 2017 to recover its cover damages, other unpaid amounts, and interest. WGL’s claims have been consolidated with Antero’s claims in the same district court and trial began on June 10, 2019. WGL quantified its damages claim for the alleged failure to deliver TCO Pool gas and sought approximately $40 million from Antero. On June 20, 2019, the Company was awarded a jury verdict of approximately $96 million in damages after the jury found that WGL breached the Contracts with the Company. In addition, the jury rejected WGL’s claim against the Company, finding that the Company did not breach the Contracts by allegedly failing to deliver TCO Pool gas and awarding no damages in favor of WGL. On August 16, 2019, WGL filed a notice of appeal of the judgment. Effective February 1, 2018, as a result of a recent amendment to its firm gas sales contract with WGL Midstream, Inc. that was executed on December 28, 2017, the total aggregate volumes to be delivered to WGL at the delivery point in Braxton, West Virginia were reduced from 500,000 MMBtu/day to 200,000 MMBtu/day and in November 2018, the total aggregate contract volumes to be delivered to WGL at a delivery point in Loudoun County, Virginia increased by 330,000 MMBtu/day. This increase of 330,000 MMBtu/day is in effect for the remaining term of our gas sale contract with WGL Midstream, which expires in 2038, and these increased volumes are subject to NYMEX-based pricing. Following this increase, the aggregate contract volumes delivered to WGL total 530,000 MMBtu/day. Other The Company is party to various other legal proceedings and claims in the ordinary course of its business. The Company believes that certain of these matters will be covered by insurance and that the outcome of other matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. |
Contract Termination and Rig St
Contract Termination and Rig Stacking | 9 Months Ended |
Sep. 30, 2019 | |
Contract Termination and Rig Stacking | |
Contract Termination and Rig Stacking | (15) Contract Termination and Rig Stacking During the three and nine months ended September 30, 2019, the Company incurred less than $1 million and $14 million, respectively, of costs for the delay or cancelation of drilling and completion contracts with third-party contractors. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2019 | |
Related Parties | |
Related Parties | (16) Related Parties Antero Midstream Partners’ operations comprised substantially all of the operations reflected in the gathering and processing, and water handling and treatment, results through March 12, 2019. Effective March 13, 2019, Antero accounts for Antero Midstream Corporation as an equity method investment. See Note 3 to the unaudited condensed consolidated financial statements for more discussion on the Transactions. Substantially all of the revenues for gathering and processing and water handling and treatment were derived from transactions with Antero. See Note 17 to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Information | |
Segment Information | (17) Segment Information See Note 2(i) to the unaudited condensed consolidated financial statements for a description of the Company’s determination of its reportable segments. Revenues from gathering and processing and water handling and treatment operations were primarily derived from intersegment transactions for services provided to the Company’s exploration and production operations prior to the closing of the Transactions. Through March 12, 2019, the results of Antero Partners were included in the consolidated financial statements of Antero. Effective March 13, 2019, the results of Antero Partners are no longer consolidated in Antero’s result; however, the Company’s segment disclosures include the results of our unconsolidated affiliates due to their significance to the Company’s operations. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. Marketing revenues are primarily derived from activities to purchase and sell third-party natural gas and NGLs and to market excess firm transportation capacity to third parties. Operating segments are evaluated based on their contribution to consolidated results, which is primarily determined by the respective operating income (loss) of each segment. General and administrative expenses were allocated to the gathering and processing and water handling and treatment segments based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures, and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income, income taxes, and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2 to the unaudited condensed consolidated financial statements. The operating results and assets of the Company’s reportable segments were as follows for the three months ended September 30, 2018 and 2019 (in thousands): Exploration Marketing Midstream Elimination of Consolidated Three months ended September 30, 2018: Sales and revenues: Third-party $ 982,131 89,556 4,845 — 1,076,532 Intersegment 5,197 — 261,360 (266,557) — Total $ 987,328 89,556 266,205 (266,557) 1,076,532 Operating expenses: Lease operating $ 35,124 — 67,608 (66,463) 36,269 Gathering, compression, processing, and transportation 442,602 — 12,701 (128,799) 326,504 Impairment of oil and gas properties 221,094 — — — 221,094 Impairment of midstream assets — — 1,157 — 1,157 Depletion, depreciation, and amortization 204,465 — 38,721 — 243,186 General and administrative 45,474 — 15,018 (632) 59,860 Other 30,695 151,764 5,219 (4,020) 183,658 Total 979,454 151,764 140,424 (199,914) 1,071,728 Operating income (loss) $ 7,874 (62,208) 125,781 (66,643) 4,804 Equity in earnings of unconsolidated affiliates $ — — 10,705 — 10,705 Segment assets $ 13,484,457 20,481 3,411,496 (1,113,899) 15,802,535 Capital expenditures for segment assets $ 485,219 — 149,953 (67,951) 567,221 Exploration Marketing Equity Method Investment in Antero Midstream Corporation Elimination of intersegment transactions and unconsolidated affiliates Consolidated Three months ended September 30, 2019: Sales and revenues: Third-party $ 1,070,755 46,645 — — 1,117,400 Intersegment 1,481 — 243,795 (243,795) 1,481 Total $ 1,072,236 46,645 243,795 (243,795) 1,118,881 Operating expenses: Lease operating $ 35,928 — 49,050 (49,050) 35,928 Gathering, compression, processing, and transportation 603,860 — 13,091 (13,091) 603,860 Impairment of oil and gas properties 1,041,469 — — — 1,041,469 Impairment of midstream assets — — 465,278 (457,478) 7,800 Depletion, depreciation, and amortization 241,503 — 24,460 (24,460) 241,503 General and administrative 35,923 — 30,595 (30,595) 35,923 Other 30,060 108,216 3,210 (3,210) 138,276 Total 1,988,743 108,216 585,684 (577,884) 2,104,759 Operating loss $ (916,507) (61,571) (341,889) 334,089 (985,878) Equity in earnings (loss) of unconsolidated affiliates $ (117,859) — 18,478 (18,478) (117,859) Investments in unconsolidated affiliates $ 1,819,323 — 672,310 (672,310) 1,819,323 Segment assets $ 16,094,927 25,361 6,445,504 (6,445,504) 16,120,288 Capital expenditures for segment assets $ 292,176 — 120,875 (120,875) 292,176 The operating results and assets of the Company’s reportable segments were as follows for the nine months ended September 30, 2018 and 2019 (in thousands): Exploration Marketing Midstream Elimination of Consolidated Nine months ended September 30, 2018: Sales and revenues: Third-party $ 2,590,409 488,270 15,299 — 3,093,978 Intersegment 16,251 — 731,473 (747,724) — Total $ 2,606,660 488,270 746,772 (747,724) 3,093,978 Operating expenses: Lease operating $ 98,698 — 184,698 (190,241) 93,155 Gathering, compression, processing, and transportation 1,236,655 — 36,469 (346,896) 926,228 Impairment of oil and gas properties 406,068 — — — 406,068 Impairment of midstream assets — — 9,658 — 9,658 Depletion, depreciation, and amortization 601,446 — 108,034 — 709,480 General and administrative 138,555 — 44,967 (1,946) 181,576 Other 85,067 560,924 15,129 (11,841) 649,279 Total 2,566,489 560,924 398,955 (550,924) 2,975,444 Operating income (loss) $ 40,171 (72,654) 347,817 (196,800) 118,534 Equity in earnings of unconsolidated affiliates $ — — 27,832 — 27,832 Segment assets $ 13,484,457 20,481 3,411,496 (1,113,899) 15,802,535 Capital expenditures for segment assets $ 1,464,041 — 414,833 (202,629) 1,676,245 Exploration Marketing Equity Method Investment in Antero Midstream Corporation Elimination of intersegment transactions and unconsolidated affiliates Consolidated Nine months ended September 30, 2019: Sales and revenues: Third-party $ 3,247,214 200,911 50 — 3,448,175 Intersegment 4,999 — 553,471 (550,693) 7,777 Total $ 3,252,213 200,911 553,521 (550,693) 3,455,952 Operating expenses: Lease operating $ 119,754 — 111,427 (112,664) 118,517 Gathering, compression, processing, and transportation 1,705,709 — 28,324 (138,810) 1,595,223 Impairment of oil and gas properties 1,253,712 — — — 1,253,712 Impairment of midstream assets — — 472,854 (458,072) 14,782 Depletion, depreciation, and amortization 702,299 — 68,557 (46,850) 724,006 General and administrative 128,213 — 85,026 (66,732) 146,507 Other 112,952 408,839 8,005 (7,002) 522,794 Total 4,022,639 408,839 774,193 (830,130) 4,375,541 Operating income (loss) $ (770,426) (207,928) (220,672) 279,437 (919,589) Equity in earnings (loss) of unconsolidated affiliates $ (102,457) — 34,981 (22,717) (90,193) Investments in unconsolidated affiliates $ 1,819,323 — 672,310 (672,310) 1,819,323 Segment assets $ 16,094,927 25,361 6,445,504 (6,445,504) 16,120,288 Capital expenditures for segment assets $ 1,053,210 — 262,065 (208,913) 1,106,362 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | (a) Basis of Presentation These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC applicable to interim financial information and should be read in the context of the December 31, 2018 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position, and accounting policies. The December 31, 2018 consolidated financial statements have been filed with the Securities and Exchange Commission (“SEC”) in Antero’s 2018 Form 10-K. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2018 and September 30, 2019, and the results of its operations and its cash flows for the three and nine months ended September 30, 2018 and 2019. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is equal to its comprehensive income or loss. Operating results for the period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs, and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments, and other factors. As of the date these financial statements were filed with the SEC, the Company completed its evaluation of potential subsequent events for disclosure and no items requiring disclosure were identified. |
Principles of Consolidation | (b) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Antero, its wholly owned subsidiaries, any entities in which the Company owns a controlling interest, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Through March 12, 2019, Antero Midstream Partners LP (“Antero Midstream Partners”), a publicly traded limited partnership, was included in the consolidated financial statements of Antero. Prior to the Closing (defined in Note 3 to the unaudited condensed consolidated financial statements), our ownership of Antero Midstream Partners common units represented approximately a 53 % limited partner interest in Antero Midstream Partners, and we consolidated Antero Midstream Partners’ financial position and results of operations into our consolidated financial statements. The Transactions (defined in Note 3 to the unaudited condensed consolidated financial statements) resulted in the exchange of the limited partner interest we owned in Antero Midstream Partners for common stock of Antero Midstream Corporation representing an approximate 31 % interest. As a result, we no longer hold a controlling interest in Antero Midstream Partners and we now have an interest in Antero Midstream Corporation that provides significant influence, but not control, over Antero Midstream Corporation. Thus, effective March 13, 2019, Antero no longer consolidates Antero Midstream Partners in its consolidated financial statements and accounts for its interest in Antero Midstream Corporation using the equity method of accounting. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements. The noncontrolling interest in the Company’s unaudited condensed consolidated financial statements represents the interests in Antero Midstream Partners, which were owned by the public prior to the Transactions, and the incentive distribution rights in Antero Midstream Partners, in both cases during the periods prior to the Transactions. Noncontrolling interests in consolidated subsidiaries is included as a component of equity in the Company’s unaudited condensed consolidated balance sheets. Investments in entities for which the Company exercises significant influence, but not control, are accounted for under the equity method. The Company’s judgment regarding the level of influence over its equity investments includes considering key factors such as Antero’s ownership interest, representation on the board of directors, and participation in the policy-making decisions of equity method investees. Such investments are included in Investments in unconsolidated affiliates on the Company’s unaudited condensed consolidated balance sheets. Income from investees that are accounted for under the equity method is included in Equity in earnings of unconsolidated affiliates on the Company’s unaudited condensed consolidated statements of operations and cash flows. When Antero records its proportionate share of net income, it increases equity income in the statements of operations and comprehensive income (loss) and the carrying value of that investment on the Company’s balance sheet. When a distribution is received, it is recorded as a reduction to the carrying value of that investment on the balance sheet. Our equity in earnings of unconsolidated affiliates is adjusted for intercompany transactions and the basis differences recognized due to the difference between the cost of the equity investment in Antero The Company accounts for distributions received from equity method investees under the “nature of the distribution” approach. Under this approach, distributions received from equity method investees are classified on the basis of the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as cash inflows from operating activities) or a return of investment (classified as cash inflows from investing activities). |
Use of Estimates | (c) Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect revenues, expenses, assets, and liabilities, as well as the disclosure of contingent assets and liabilities. Changes in facts and circumstances or discovery of new information may result in revised estimates, and actual results could differ from those estimates. The Company’s unaudited condensed consolidated financial statements are based on a number of significant estimates including estimates of natural gas, NGLs, and oil reserve quantities, which are the basis for the calculation of depletion and impairment of oil and gas properties. Reserve estimates, by their nature, are inherently imprecise. Other items in the Company’s unaudited condensed consolidated financial statements that involve the use of significant estimates include derivative assets and liabilities, accrued revenue, deferred and current income taxes, equity-based compensation, asset retirement obligations, depreciation, amortization, and commitments and contingencies. |
Risks and Uncertainties | (d) Risks and Uncertainties The markets for natural gas, NGLs, and oil have, and continue to, experience significant price fluctuations. Price fluctuations can result from variations in weather, levels of production, availability of transportation capacity to other regions of the country, the level of imports to and exports from the United States, and various other factors. Increases or decreases in the prices the Company receives for its production could have a significant impact on the Company’s future results of operations and reserve quantities. |
Cash and Cash Equivalents | (e) Cash and Cash Equivalents The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these instruments. From time to time, the Company may be in the position of a “book overdraft” in which outstanding checks exceed cash and cash equivalents. The Company classifies book overdrafts in accounts payable and revenue distributions payable within its unaudited condensed consolidated balance sheets, and classifies the change in accounts payable and revenue distributions payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of September 30, 2019, the book overdraft included within accounts payable and revenue distributions payable were $8 million and $34 million, respectively. As of December 31, 2018, the book overdraft included within accounts payable and revenue distributions payable were $10 million and $28 million, respectively. |
Oil and Gas Properties | (f) Oil and Gas Properties The Company accounts for its natural gas, NGLs, and oil exploration and development activities under the successful efforts method of accounting. Under the successful efforts method, the costs incurred to acquire, drill, and complete productive wells, development wells, and undeveloped leases are capitalized. Oil and gas lease acquisition costs are also capitalized. Exploration costs, including personnel and other internal costs, geological and geophysical expenses, delay rentals for gas and oil leases, and costs associated with unsuccessful lease acquisitions are charged to expense as incurred. Exploratory drilling costs are initially capitalized, but charged to expense if the Company determines that the well does not contain reserves in commercially viable quantities. The Company reviews exploration costs related to wells-in- progress at the end of each quarter and makes a determination, based on known results of drilling at that time, whether the costs should continue to be capitalized pending further well testing and results, or charged to expense. The Company incurred no such charges to expense during the nine months ended September 30, 2018 and 2019. During the nine months ended September 30, 2019, we recorded an impairment charge of $26 million for design and initial costs related to pads that are no longer planned to be placed into service. The sale of a partial interest in a proved property is accounted for as a cost recovery, and no gain or loss is recognized as long as this treatment does not significantly affect the units-of- production amortization rate. A gain or loss is recognized for all other sales of producing properties. Unproved properties are assessed for impairment on a property-by- property basis, and any impairment in value is charged to expense. Impairment is assessed based on remaining lease terms, commodity price outlooks, and future plans to develop acreage, as well as drilling results, and reservoir performance of wells in the area. Unproved properties and the related costs are transferred to proved properties when reserves are discovered on, or otherwise attributed to, the property. Proceeds from sales of partial interests in unproved properties are accounted for as a recovery of cost without recognition of any gain or loss until the cost has been recovered. Impairment of unproved properties was $406 million and $347 million for the nine months ended September 30, 2018 and 2019, respectively. The Company evaluates the carrying amount of its proved natural gas, NGLs, and oil properties for impairment on a geological reservoir basis whenever events or changes in circumstances indicate that a property’s carrying amount may not be recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company would estimate the fair value of its properties and record an impairment charge for any excess of the carrying amount of the properties over the estimated fair value of the properties. Factors used to estimate fair value may include estimates of proved reserves, estimated future commodity prices, future production estimates, and anticipated capital expenditures, using a commensurate discount rate. As estimated undiscounted future net cash flows based on future commodity prices at September 30, 2019 exceeded the carrying amount of our proved properties in the Marcellus Shale at September 30, 2019, we did not further evaluate our Marcellus proved properties for impairment. However, the carrying amount of the Utica Shale exceeded the estimated undiscounted future cash flows based on future commodity prices at September 30, 2019. We estimated the fair value of the Utica Shale assets based on sales of other properties, estimates of proved reserves, estimated future commodity prices, and future production estimates. As a result, the Company recorded an impairment charge of $881 million related to proved properties in the Utica Shale during the three months ended September 30, 2019. The Company did not record any impairment expenses associated with its proved properties in the Marcellus Shale during the nine months ended September 30, 2018 and 2019. During the three months ended September 30, 2019, Antero completed a non-cash exchange of acreage and ownership interest in certain properties in West Virginia whereby the Company received 20,770 net acres primarily in Tyler and Wetzel Counties and delivered 18,857 net acres primarily in Wetzel and Marion Counties. In conjunction with the non-cash exchange, the Company also assumed certain gas gathering and processing obligations related to a portion of some of the properties. This exchange did not have a material impact on the timing and amount of future cash flows and no gain or loss was recorded related to this transaction. |
Derivative Financial Instruments | (g) Derivative Financial Instruments In order to manage its exposure to natural gas, NGLs, and oil price volatility, the Company enters into derivative transactions from time to time, which may include commodity swap agreements, basis swap agreements, collar agreements, and other similar agreements related to the price risk associated with the Company’s production. To the extent legal right of offset exists with a counterparty, the Company reports derivative assets and liabilities on a net basis. The Company has exposure to credit risk to the extent that the counterparty is unable to satisfy its settlement obligations. The Company actively monitors the creditworthiness of counterparties and assesses the impact, if any, on its derivative positions. The Company records derivative instruments on the unaudited condensed consolidated balance sheets as either assets or liabilities measured at fair value and records changes in the fair value of derivatives in current earnings as they occur. Changes in the fair value of commodity derivatives, including gains or losses on settled derivatives, are classified as revenues on the Company’s unaudited condensed consolidated statements of operations. The Company’s derivatives have not been designated as hedges for accounting purposes. |
Asset Retirement Obligations Policy | (h) Asset Retirement Obligations The Company is obligated to dispose of certain long- lived assets upon their abandonment. The Company’s asset retirement obligations (“AROs”) relate primarily to its obligation to plug and abandon oil and gas wells at the end of their lives. AROs are recorded at estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligations, which is then discounted at the Company’s credit-adjusted, risk- free interest rate. Revisions to estimated AROs often result from changes in retirement cost estimates or changes in the estimated timing of abandonment. The fair value of the liability is added to the carrying amount of the associated asset, and this additional carrying amount is depreciated over the life of the asset. The liability is accreted at the end of each period through charges to operating expense. |
Industry Segments and Geographic Information | (i) Industry Segments and Geographic Information Management has evaluated how the Company is organized and managed and has identified the following segments: (1) the exploration, development, and production of natural gas, NGLs, and oil; (2) marketing and utilization of excess firm transportation capacity and (3) our equity method investment in Antero Midstream Corporation. Through March 12, 2019, the results of Antero Midstream Partners were included in the consolidated financial statements of Antero. Effective March 13, 2019, the results of Antero Midstream Partners are no longer consolidated in Antero’s results; however, the Company’s segment disclosures include our equity method investment in Antero Midstream Corporation due to its significance to the Company’s operations. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions and Note 17 to the unaudited condensed consolidated financial statements for disclosures on the Company’s reportable segments. All of the Company’s assets are located in the United States and substantially all of its production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. Our revenues received from these customers are denominated in U.S. dollars and are based on pricing in foreign markets. |
Earnings (loss) Per Common Share | (j) Earnings (loss) Per Common Share Earnings (loss) per common share—basic for each period is computed by dividing net income (loss) attributable to Antero by the basic weighted average number of shares outstanding during the period. Earnings (loss) per common share—assuming dilution for each period is computed after giving consideration to the potential dilution from outstanding equity awards, calculated using the treasury stock method. The Company includes performance share unit awards in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of the performance period required for the vesting of the awards. During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is anti-dilutive. |
Treasury Share Retirement | (k) Treasury Share Retirement The Company retires treasury shares acquired through share repurchases and returns those shares to the status of authorized but unissued. When treasury shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired first, to additional paid-in capital, and then to accumulated earnings. The portion allocable to additional paid-in capital is determined by applying a percentage, determined by dividing the number of shares to be retired by the number of shares outstanding, to the balance of additional paid-in capital as of retirement. |
Adoption of New Accounting Principle | (l) Adoption of New Accounting Principle The Company adopted ASU No. 2016-02, Leases , (“Topic 842”) as of January 1, 2019, using the effective date method. The effective date method allows the Company to report its leases under Topic 842 prospectively as of the date of adoption, and no retrospective adjustments were required for prior periods. The Company elected the available practical expedients and updated internal controls to enable the preparation of financial information on adoption. The standard had a material impact on our consolidated balance sheets, but did not have a material impact on our consolidated statements of operations. The most significant impact was the recognition of operating leases right-of-use assets and short-term and long-term lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. See Note 12 to the unaudited condensed consolidated financial statements for a description of the Company’s leases. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies | |
Reconciliation of basic weighted average shares outstanding to diluted weighted average shares outstanding | The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands): Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Basic weighted average number of shares outstanding 317,082 307,781 316,850 308,509 Add: Dilutive effect of restricted stock units — — — 27 Add: Dilutive effect of outstanding stock options — — — — Add: Dilutive effect of performance stock units — — — 110 Diluted weighted average number of shares outstanding 317,082 307,781 316,850 308,646 Weighted average number of outstanding equity awards excluded from calculation of diluted earnings per common share (1) Restricted stock units 2,813 2,356 2,996 2,008 Outstanding stock options 619 514 637 541 Performance stock units 1,880 2,676 1,665 2,141 (1) The potential dilutive effects of these awards were excluded from the computation of earnings (loss) per common share—assuming dilution because the inclusion of these awards would have been anti-dilutive. |
Deconsolidation of Antero Mid_2
Deconsolidation of Antero Midstream Partners LP (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deconsolidation of Antero Midstream Partners LP | |
Summary of summary of assets and liabilities of Antero Midstream Partners as of March 12, 2019, the date of deconsolidation | (in thousands) March 12, 2019 Current assets $ 763,109 Property and equipment, net 3,003,693 Other noncurrent assets 501,208 Total assets $ 4,268,010 Current liabilities $ 123,473 Long-term debt 2,359,084 Other noncurrent liabilities 123,523 Total liabilities $ 2,606,080 Net assets $ 1,661,930 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue | |
Schedule of disaggregation of revenue | In the following table, revenue is disaggregated by type (in thousands). The table also identifies the reportable segment to which the disaggregated revenues relate. For more information on reportable segments, see Note 17— Segment Information. Three months ended September 30, Nine months ended September 30, Segment to which 2018 2019 2018 2019 revenues relate Revenues from contracts with customers: Natural gas sales $ 527,122 524,448 $ 1,498,324 1,735,086 Exploration and production Natural gas liquids sales (ethane) 56,185 26,488 115,947 92,378 Exploration and production Natural gas liquids sales (C3+ NGLs) 282,084 258,470 712,477 810,228 Exploration and production Oil sales 59,722 40,561 128,869 137,675 Exploration and production Gathering and compression (1) 4,439 — 12,848 3,972 Equity method investment in AMC Water handling and treatment (1) 405 — 2,450 507 Equity method investment in AMC Marketing 89,598 46,645 394,189 200,911 Marketing Total 1,019,555 896,612 2,865,104 2,980,757 Income from derivatives and other sources 56,977 222,269 228,874 475,195 Total revenue and other $ 1,076,532 1,118,881 $ 3,093,978 3,455,952 (1) Gathering and compression and water handling and treatment revenues were included through March 12, 2019. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments. | |
Schedule of reconciliation of investments in unconsolidated affiliates | The following table is a reconciliation of investments in unconsolidated affiliates for the nine months ended September 30, 2019 (in thousands): Stonewall (1) MarkWest Antero Midstream Corporation (2) Total Balance at December 31, 2018 $ 68,103 365,539 — 433,642 Investments (3) — 25,020 — 25,020 Equity in net income of unconsolidated affiliates 1,894 10,370 (102,457) (90,193) Distributions/dividends from unconsolidated affiliates (3,000) (9,605) (96,636) (109,241) Elimination of intercompany profit — — 30,621 30,621 Effects of deconsolidation (4) (66,997) (391,324) 1,987,795 1,529,474 Balance at September 30, 2019 $ — — 1,819,323 1,819,323 (1) Distributions are net of operating and capital requirements retained by Stonewall. (2) As adjusted for the amortization of the difference between the cost of the equity investment in Antero Midstream Corporation and the amount of underlying equity in the net assets of Antero Midstream Partners as of the date of deconsolidation. (3) Investments in the Joint Venture during the nine months ended September 30, 2019 relate to capital contributions for construction of additional processing facilities. (4) Effective March 13, 2019, the equity in earnings of Stonewall and the Joint Venture are accounted for in the equity in earnings of Antero Midstream Corporation. |
Schedule of summarized financial information of Antero Midstream Corporation | Balance Sheet (in thousands) September 30, 2019 Current assets $ 109,224 Noncurrent assets 6,336,280 Total assets $ 6,445,504 Current liabilities $ 259,628 Noncurrent liabilities 2,662,846 Stockholders' equity 3,523,030 Total liabilities and equity $ 6,445,504 Statement of Operations For the period March 13, 2019 through (in thousands) September 30, 2019 Revenues $ 553,521 Operating expenses 745,940 Loss from operations $ (192,419) Net loss attributable to the equity method investments $ (197,006) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities as of December 31, 2018 and September 30, 2019 consisted of the following items (in thousands): December 31, 2018 September 30, 2019 Capital expenditures $ 113,237 83,963 Gathering, compression, processing, and transportation expenses 148,032 141,036 Marketing expenses 67,082 47,763 Interest expense, net 43,444 62,255 Other 93,275 57,709 $ 465,070 392,726 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Long-Term Debt. | |
Schedule of long-term debt | Long-term debt was as follows at December 31, 2018 and September 30, 2019 (in thousands): December 31, 2018 September 30, 2019 Antero Resources: Credit Facility (a) $ 405,000 275,000 5.375% senior notes due 2021 (b) 1,000,000 1,000,000 5.125% senior notes due 2022 (c) 1,100,000 1,100,000 5.625% senior notes due 2023 (d) 750,000 750,000 5.00% senior notes due 2025 (e) 600,000 600,000 Net unamortized premium 1,241 1,021 Net unamortized debt issuance costs (26,700) (22,193) Long-term debt 3,829,541 3,703,828 Antero Midstream Partners: Midstream Credit Facility (1) 990,000 — 5.375% senior notes due 2024 (1) 650,000 — Net unamortized debt issuance costs (1) (7,853) — Long-term debt 1,632,147 — Consolidated long-term debt $ 5,461,688 3,703,828 (1) At December 31, 2018, Antero Midstream Partners’ indebtedness was included in the consolidated financial statements of Antero. At September 30, 2019, following the deconsolidation, Antero Midstream Partners’ outstanding indebtedness is no longer reflected in Antero’s consolidated financial statements. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligations | |
Schedule of reconciliation of asset retirement obligations | The following is a reconciliation of the Company’s asset retirement obligations for the nine months ended September 30, 2019 (in thousands): Asset retirement obligations—December 31, 2018 $ 58,979 Obligations settled (153) Obligations incurred 1,361 Revisions to prior estimates — Accretion expense 2,821 Effect of deconsolidation of Antero Midstream Partners LP (1) (7,518) Asset retirement obligations—September 30, 2019 $ 55,490 (1) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity-Based Compensation | |
Schedule of equity-based compensation expense | The Company’s equity-based compensation expense, by type of award, was as follows for the three and nine months ended September 30, 2018 and 2019 (in thousands): Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Restricted stock unit awards $ 10,001 2,229 $ 33,676 8,829 Stock options 452 — 1,428 389 Performance share unit awards 1,017 399 7,018 6,027 Antero Midstream Partners phantom unit awards (1) 4,193 867 12,752 2,942 Equity awards issued to directors 539 380 1,555 1,140 Total expense $ 16,202 3,875 $ 56,429 19,327 (1) Partners to Antero. Antero allocates a portion of equity-based compensation expense related to grants prior to the Transactions to Antero Partners based on its proportionate share of Antero’s labor costs. Through March 12, 2019, the total amount of equity-based compensation is included in the consolidated financial statements of Antero; and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Partners is no longer reflected in Antero’s consolidated financial statements. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. |
Summary of restricted stock and restricted stock unit awards activity | Weighted Aggregate Number of grant date intrinsic value Total awarded and unvested—December 31, 2018 1,712,485 $ 24.57 $ 16,080 Granted 1,610,690 $ 8.60 Vested (718,192) $ 27.70 Forfeited (307,938) $ 16.56 Total awarded and unvested—September 30, 2019 2,297,045 $ 13.47 $ 6,937 |
Summary of stock option activity | Weighted Weighted average Intrinsic Stock exercise contractual value Outstanding at December 31, 2018 579,617 $ 50.55 5.81 $ — Granted — $ — Exercised — $ — Forfeited (79,484) $ 50.25 Expired — $ — Outstanding at September 30, 2019 500,133 $ 50.60 4.98 $ — Vested or expected to vest as of September 30, 2019 500,133 $ 50.60 4.98 $ — Exercisable at September 30, 2019 500,133 $ 50.60 4.98 $ — |
Summary of Performance Stock Unit activity | Number of Weighted Total awarded and unvested—December 31, 2018 1,767,299 $ 26.36 Granted 1,416,378 $ 9.26 Vested (31,944) $ 27.38 Forfeited (614,450) $ 26.61 Total awarded and unvested—September 30, 2019 2,537,283 $ 16.74 |
Schedule of weighted average fair value assumptions used for PSUs granted | Nine months ended September 30, 2018 2019 Dividend yield — % — % Volatility 41 % 36 % Risk-free interest rate 2.49 % 2.35 % Weighted average fair value of awards granted $ 24.85 $ 9.26 |
Schedule of outstanding unvested restricted stock awards vesting schedule | Number of Weighted Aggregate Total awarded and unvested—December 31, 2018 583,000 $ 27.63 $ 12,470 Granted 5,972 $ 23.44 Vested (3,853) $ 32.44 Forfeited (20,338) $ 26.73 AMP Plan Units awarded and unvested—March 12, 2019 564,781 $ 27.59 $ 13,476 Effect of conversion (1) 504,119 $ 14.58 Vested (358,831) $ 14.34 Forfeited (45,803) $ 14.58 Total awarded and unvested—September 30, 2019 664,266 $ 14.70 $ 4,916 (1) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments. | |
Schedule of outstanding commodity derivatives | Natural gas Natural Gas Oil Weighted Three months ending December 31, 2019: NYMEX ($/MMBtu) 996,766 — — $ 3.23 ARA Propane ($/Gal) — 10,113 — 0.68 FEI Propane ($/Gal) — 9,809 — 0.81 Mont Belvieu Propane Non-TET ($/Gal) — 8,000 — 0.50 Mont Belvieu Butane Non-TET ($/Gal) — 4,000 — 0.59 Mont Belvieu Natural Gasoline Non-TET ($/Gal) — 3,500 — 1.14 NYMEX-WTI ($/Bbl) — — 18,000 59.05 Total 996,766 35,422 18,000 Year ending December 31, 2020: NYMEX ($/MMBtu) 2,227,500 — $ 2.87 ARA Propane ($/Gal) — 9,761 — 0.65 FEI Propane ($/Gal) — 2,045 — 0.81 Mont Belvieu Butane Non-TET ($/Gal) — 2,000 — 0.57 NYMEX-WTI ($/Bbl) — 12,000 56.60 Total 2,227,500 13,806 12,000 Year ending December 31, 2021: NYMEX ($/MMBtu) 2,110,000 $ 2.79 Year ending December 31, 2022: NYMEX ($/MMBtu) 290,000 $ 2.96 Year ending December 31, 2023: NYMEX ($/MMBtu) 90,000 $ 2.91 |
Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO | Natural gas MMBtu/day Natural Gas Weighted average hedged differential Three months ending December 31, 2019: ARA to Mont Belvieu Non-TET ($/Gal) — 4,050 $ 0.25 Year ending December 31, 2020: NYMEX to TCO ($/MMBtu) 60,000 — 0.353 ARA to Mont Belvieu Non-TET ($/Gal) — 4,273 $ 0.23 Total 60,000 4,273 Year ending December 31, 2021: NYMEX to TCO ($/MMBtu) 40,000 — $ 0.414 Year ending December 31, 2022: NYMEX to TCO ($/MMBtu) 60,000 — $ 0.515 Year ending December 31, 2023: NYMEX to TCO ($/MMBtu) 50,000 — $ 0.525 Year ending December 31, 2024: NYMEX to TCO ($/MMBtu) 50,000 — $ 0.530 |
Tabular disclosure of commodity derivatives basis differential positions which settle on the pricing index to basis differential of Columbia Gas (TCO) to the NYMEX Henry Hub natural gas price. | Natural Gas Liquids Bbls/day Weighted average payout ratio Three months ending December 31, 2019: Mont Belvieu Propane to NYMEX-WTI 500 50 % Mont Belvieu Natural Gasoline to NYMEX-WTI 13,900 81 % Total 14,400 Year ending December 31, 2020: Mont Belvieu Propane to NYMEX-WTI 500 50 % Mont Belvieu Natural Gasoline to NYMEX-WTI 15,000 79 % Total 15,500 Year ending December 31, 2021: Mont Belvieu Natural Gasoline to NYMEX-WTI 13,000 78 % As of September 30, 2019, the Company’s fixed price natural gas collar positions from October 1, 2019 through December 31, 2019 were as follows (abbreviations in the table refer to the index to which the collar position is tied, as follows (NYMEX=Henry Hub): Natural gas (MMBtu/day) Weighted average index price Ceiling Floor Ceiling price Floor price Three months ending December 31, 2019: NYMEX ($/MMBtu) 1,575,000 1,333,234 $ 3.52 $ 2.50 |
Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes | December 31, 2018 September 30, 2019 Balance sheet Fair value Balance sheet Fair value (In thousands) (In thousands) Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives - current Derivative instruments $ 245,263 Derivative instruments $ 411,774 Commodity derivatives - noncurrent Derivative instruments 362,169 Derivative instruments 405,180 Total asset derivatives 607,432 816,954 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives - current Derivative instruments 532 Derivative instruments — Commodity derivatives - noncurrent Derivative instruments — Derivative instruments — Total liability derivatives 532 — Net derivatives $ 606,900 $ 816,954 |
Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts | The following table presents the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands): December 31, 2018 September 30, 2019 Gross Gross amounts Net amounts Gross Gross amounts Net amounts Commodity derivative assets $ 658,830 (51,398) 607,432 $ 838,795 (21,841) 816,954 Commodity derivative liabilities $ (51,930) 51,398 (532) $ (21,841) 21,841 — |
Summary of derivative fair value gains (losses) | The following is a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands): Statement of Three months ended September 30, Nine months ended September 30, location 2018 2019 2018 2019 Commodity derivative fair value gains Revenue $ 57,019 220,788 134,793 471,847 Marketing derivative fair value gains (losses) Revenue $ (42) — 94,081 — |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Summary of supplemental balance sheet information related to leases | The Company’s lease assets as of September 30, 2019 consisted of the following items (in thousands): September 30, 2019 Operating Leases Finance Leases Right-of-use Assets: Processing plants $ 1,554,601 — Drilling rigs and completion services 93,846 — Gas gathering lines and compressor stations (1) 1,535,146 — Office space 41,285 — Vehicles 4,971 2,591 Other office and field equipment 299 448 Total right-of-use assets $ 3,230,148 3,039 (2) (1) Gas gathering lines and compressor stations leases includes $1.3 billion related to Antero Midstream Corporation. (2) Financing lease assets are recorded net of accumulated amortization of $9 million as of September 30, 2019. The Company’s lease liabilities as of September 30, 2019 consisted of the following items (in thousands): September 30, 2019 Operating Leases Finance Leases Location on the balance sheet: Short-term lease liabilities $ 408,814 1,176 Long-term lease liabilities 2,821,334 1,863 Total lease liabilities $ 3,230,148 3,039 |
Summary of costs associated with operating leases | Costs associated with operating leases were included in the statement of operations and comprehensive income (loss) for the three and nine months ended September 30, 2019 (in thousands): Statement of Operations Location Three months ended September 30, 2019 Nine months ended September 30, 2019 Gathering, compression, processing, and transportation $ 237,618 $ 644,007 General and administrative 2,859 8,395 Contract termination and rig stacking — 10,692 Total Lease Expense $ 240,477 $ 663,094 |
Summary of supplemental cash flow information related to leases | The following is the Company’s supplemental cash flow information related to leases for the three and nine months ended September 30, 2019 (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating Leases Finance Leases Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash out flows related to operating leases $ 234,399 — $ 591,963 — Investing cash out flows related to operating leases 47,417 — 146,315 — Financing cash out flows related to financing leases — 303 — 1,967 281,816 303 738,278 1,967 Noncash activities: Right of use assets obtained in exchange for operating lease liabilities — — 3,345,549 — Right of use assets obtained in exchange for financing lease liabilities — — — — |
Summary of maturities of operating lease liabilities | The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2019 (in thousands): (in thousands) Operating Leases Financing Leases Total Remainder of 2019 $ 151,345 21 151,366 2020 578,615 523 579,138 2021 506,402 1,152 507,554 2022 495,694 1,298 496,992 2023 491,513 45 491,558 2024 482,745 — 482,745 Thereafter 1,447,537 — 1,447,537 Total lease payments 4,153,851 3,039 4,156,890 Less: imputed interest (923,703) — (923,703) Total $ 3,230,148 3,039 3,233,187 As of December 31, 2018, the following future minimum payments were required for office and equipment leases: (in thousands) Office Leases Equipment Leases Total 2019 $ 8,630 6,042 14,672 2020 8,471 4,517 12,988 2021 8,450 2,410 10,860 2022 8,427 274 8,701 2023 7,495 — 7,495 Thereafter 49,367 — 49,367 Total $ 90,840 13,243 104,083 |
Summary of maturities of financing lease liabilities | The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2019 (in thousands): (in thousands) Operating Leases Financing Leases Total Remainder of 2019 $ 151,345 21 151,366 2020 578,615 523 579,138 2021 506,402 1,152 507,554 2022 495,694 1,298 496,992 2023 491,513 45 491,558 2024 482,745 — 482,745 Thereafter 1,447,537 — 1,447,537 Total lease payments 4,153,851 3,039 4,156,890 Less: imputed interest (923,703) — (923,703) Total $ 3,230,148 3,039 3,233,187 As of December 31, 2018, the following future minimum payments were required for office and equipment leases: (in thousands) Office Leases Equipment Leases Total 2019 $ 8,630 6,042 14,672 2020 8,471 4,517 12,988 2021 8,450 2,410 10,860 2022 8,427 274 8,701 2023 7,495 — 7,495 Thereafter 49,367 — 49,367 Total $ 90,840 13,243 104,083 |
Summary of weighted-average remaining lease term and discount rate | September 30, 2019 Operating Leases Finance Leases Weighted-average remaining lease term: 8.4 years 2.1 years Weighted-average discount rate: 6.1 % 5.7 % |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments | |
Schedule of future minimum payments for firm transportation, drilling rig and completion services, gas processing, gathering and compression, office and equipment agreements, and leases that have remaining lease terms in excess of one year | The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have remaining lease terms in excess of one year as of September 30, 2019 (in thousands). Firm Processing, Land payment obligations Operating and Financing Leases Imputed Interest for Leases (a) (b) (c) (d) (d) Total Remainder of 2019 $ 282,571 13,667 4,653 102,808 48,558 452,257 2020 1,123,782 54,425 5,557 399,881 179,257 1,762,902 2021 1,100,079 54,093 3,177 350,364 157,190 1,664,903 2022 1,047,162 53,606 259 361,057 135,935 1,598,019 2023 1,034,641 58,565 — 377,836 113,722 1,584,764 2024 994,534 58,687 — 392,323 90,422 1,535,966 Thereafter 7,816,594 152,523 — 1,248,918 198,619 9,416,654 Total $ 13,399,363 445,566 13,646 3,233,187 923,703 18,015,465 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Information | |
Schedule of operating results and assets of reportable segments | The operating results and assets of the Company’s reportable segments were as follows for the three months ended September 30, 2018 and 2019 (in thousands): Exploration Marketing Midstream Elimination of Consolidated Three months ended September 30, 2018: Sales and revenues: Third-party $ 982,131 89,556 4,845 — 1,076,532 Intersegment 5,197 — 261,360 (266,557) — Total $ 987,328 89,556 266,205 (266,557) 1,076,532 Operating expenses: Lease operating $ 35,124 — 67,608 (66,463) 36,269 Gathering, compression, processing, and transportation 442,602 — 12,701 (128,799) 326,504 Impairment of oil and gas properties 221,094 — — — 221,094 Impairment of midstream assets — — 1,157 — 1,157 Depletion, depreciation, and amortization 204,465 — 38,721 — 243,186 General and administrative 45,474 — 15,018 (632) 59,860 Other 30,695 151,764 5,219 (4,020) 183,658 Total 979,454 151,764 140,424 (199,914) 1,071,728 Operating income (loss) $ 7,874 (62,208) 125,781 (66,643) 4,804 Equity in earnings of unconsolidated affiliates $ — — 10,705 — 10,705 Segment assets $ 13,484,457 20,481 3,411,496 (1,113,899) 15,802,535 Capital expenditures for segment assets $ 485,219 — 149,953 (67,951) 567,221 Exploration Marketing Equity Method Investment in Antero Midstream Corporation Elimination of intersegment transactions and unconsolidated affiliates Consolidated Three months ended September 30, 2019: Sales and revenues: Third-party $ 1,070,755 46,645 — — 1,117,400 Intersegment 1,481 — 243,795 (243,795) 1,481 Total $ 1,072,236 46,645 243,795 (243,795) 1,118,881 Operating expenses: Lease operating $ 35,928 — 49,050 (49,050) 35,928 Gathering, compression, processing, and transportation 603,860 — 13,091 (13,091) 603,860 Impairment of oil and gas properties 1,041,469 — — — 1,041,469 Impairment of midstream assets — — 465,278 (457,478) 7,800 Depletion, depreciation, and amortization 241,503 — 24,460 (24,460) 241,503 General and administrative 35,923 — 30,595 (30,595) 35,923 Other 30,060 108,216 3,210 (3,210) 138,276 Total 1,988,743 108,216 585,684 (577,884) 2,104,759 Operating loss $ (916,507) (61,571) (341,889) 334,089 (985,878) Equity in earnings (loss) of unconsolidated affiliates $ (117,859) — 18,478 (18,478) (117,859) Investments in unconsolidated affiliates $ 1,819,323 — 672,310 (672,310) 1,819,323 Segment assets $ 16,094,927 25,361 6,445,504 (6,445,504) 16,120,288 Capital expenditures for segment assets $ 292,176 — 120,875 (120,875) 292,176 The operating results and assets of the Company’s reportable segments were as follows for the nine months ended September 30, 2018 and 2019 (in thousands): Exploration Marketing Midstream Elimination of Consolidated Nine months ended September 30, 2018: Sales and revenues: Third-party $ 2,590,409 488,270 15,299 — 3,093,978 Intersegment 16,251 — 731,473 (747,724) — Total $ 2,606,660 488,270 746,772 (747,724) 3,093,978 Operating expenses: Lease operating $ 98,698 — 184,698 (190,241) 93,155 Gathering, compression, processing, and transportation 1,236,655 — 36,469 (346,896) 926,228 Impairment of oil and gas properties 406,068 — — — 406,068 Impairment of midstream assets — — 9,658 — 9,658 Depletion, depreciation, and amortization 601,446 — 108,034 — 709,480 General and administrative 138,555 — 44,967 (1,946) 181,576 Other 85,067 560,924 15,129 (11,841) 649,279 Total 2,566,489 560,924 398,955 (550,924) 2,975,444 Operating income (loss) $ 40,171 (72,654) 347,817 (196,800) 118,534 Equity in earnings of unconsolidated affiliates $ — — 27,832 — 27,832 Segment assets $ 13,484,457 20,481 3,411,496 (1,113,899) 15,802,535 Capital expenditures for segment assets $ 1,464,041 — 414,833 (202,629) 1,676,245 Exploration Marketing Equity Method Investment in Antero Midstream Corporation Elimination of intersegment transactions and unconsolidated affiliates Consolidated Nine months ended September 30, 2019: Sales and revenues: Third-party $ 3,247,214 200,911 50 — 3,448,175 Intersegment 4,999 — 553,471 (550,693) 7,777 Total $ 3,252,213 200,911 553,521 (550,693) 3,455,952 Operating expenses: Lease operating $ 119,754 — 111,427 (112,664) 118,517 Gathering, compression, processing, and transportation 1,705,709 — 28,324 (138,810) 1,595,223 Impairment of oil and gas properties 1,253,712 — — — 1,253,712 Impairment of midstream assets — — 472,854 (458,072) 14,782 Depletion, depreciation, and amortization 702,299 — 68,557 (46,850) 724,006 General and administrative 128,213 — 85,026 (66,732) 146,507 Other 112,952 408,839 8,005 (7,002) 522,794 Total 4,022,639 408,839 774,193 (830,130) 4,375,541 Operating income (loss) $ (770,426) (207,928) (220,672) 279,437 (919,589) Equity in earnings (loss) of unconsolidated affiliates $ (102,457) — 34,981 (22,717) (90,193) Investments in unconsolidated affiliates $ 1,819,323 — 672,310 (672,310) 1,819,323 Segment assets $ 16,094,927 25,361 6,445,504 (6,445,504) 16,120,288 Capital expenditures for segment assets $ 1,053,210 — 262,065 (208,913) 1,106,362 |
Subsidiary Guarantors (Tables)
Subsidiary Guarantors (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Subsidiary Guarantors | |
Schedule of condensed consolidated balance sheets | Condensed Consolidating Balance Sheet Parent Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Accounts receivable, net $ 49,529 — 1,544 — 51,073 Intercompany receivables 383 — 115,378 (115,761) — Accrued revenue 474,827 — — — 474,827 Derivative instruments 245,263 — — — 245,263 Other current assets 13,937 — 21,513 — 35,450 Total current assets 783,939 — 138,435 (115,761) 806,613 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,767,600 — — — 1,767,600 Proved properties 13,306,585 — — (600,913) 12,705,672 Water handling and treatment systems — — 1,004,793 9,025 1,013,818 Gathering systems and facilities 17,825 — 2,452,883 — 2,470,708 Other property and equipment 65,770 — 72 — 65,842 15,157,780 — 3,457,748 (591,888) 18,023,640 Less accumulated depletion, depreciation, and amortization (3,654,392) — (499,333) — (4,153,725) Property and equipment, net 11,503,388 — 2,958,415 (591,888) 13,869,915 Derivative instruments 362,169 — — — 362,169 Investment in Antero Midstream Partners (740,031) — — 740,031 — Contingent acquisition consideration 114,995 — — (114,995) — Investments in unconsolidated affiliates — — 433,642 — 433,642 Other assets 31,200 — 15,925 — 47,125 Total assets $ 12,055,660 — 3,546,417 (82,613) 15,519,464 Liabilities and Equity Current liabilities: Accounts payable $ 44,917 — 21,372 — 66,289 Intercompany payable 111,620 — 4,141 (115,761) — Accrued liabilities 392,949 — 72,121 — 465,070 Revenue distributions payable 310,827 — — — 310,827 Derivative instruments 532 — — — 532 Short-term lease liabilities 2,459 — — — 2,459 Other current liabilities 2,162 — 2,052 4,149 8,363 Total current liabilities 865,466 — 99,686 (111,612) 853,540 Long-term liabilities: Long-term debt 3,829,541 — 1,632,147 — 5,461,688 Deferred income tax liability 650,788 — — — 650,788 Contingent acquisition consideration — — 114,995 (114,995) — Long-term lease liabilities 2,873 — — — 2,873 Other liabilities 55,017 — 8,081 — 63,098 Total liabilities 5,403,685 — 1,854,909 (226,607) 7,031,987 Equity: Stockholders' equity: Partners' capital — — 1,691,508 (1,691,508) — Common stock 3,086 — — — 3,086 Additional paid-in capital 5,471,341 — — 1,013,833 6,485,174 Accumulated earnings 1,177,548 — — — 1,177,548 Total stockholders' equity 6,651,975 — 1,691,508 (677,675) 7,665,808 Noncontrolling interests in consolidated subsidiary — — — 821,669 821,669 Total equity 6,651,975 — 1,691,508 143,994 8,487,477 Total liabilities and equity $ 12,055,660 — 3,546,417 (82,613) 15,519,464 Condensed Consolidating Balance Sheet Parent Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Accounts receivable, net 29,207 — — — 29,207 Intercompany receivables — 131,135 — (131,135) — Accrued revenue 281,177 — — — 281,177 Derivative instruments 411,774 — — — 411,774 Other current assets 7,342 — — — 7,342 Total current assets 729,500 131,135 — (131,135) 729,500 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,406,464 — — — 1,406,464 Proved properties 11,568,285 — — — 11,568,285 Gathering systems and facilities 5,802 — — — 5,802 Other property and equipment 70,965 — — — 70,965 13,051,516 — — — 13,051,516 Less accumulated depletion, depreciation, and amortization (3,136,767) — — — (3,136,767) Property and equipment, net 9,914,749 — — — 9,914,749 Operating leases right-of-use assets 3,230,148 — — — 3,230,148 Derivative instruments 405,180 — — — 405,180 Investments in unconsolidated affiliates 481,474 1,337,849 — — 1,819,323 Investments in consolidated affiliates 1,337,849 — — (1,337,849) — Other assets 21,388 — — — 21,388 Total assets $ 16,120,288 1,468,984 — (1,468,984) 16,120,288 Liabilities and Equity Current liabilities: Accounts payable $ 32,496 — — — 32,496 Accounts payable, related parties 300,774 — — (200,337) 100,437 Accrued liabilities 392,726 — — — 392,726 Revenue distributions payable 231,152 — — — 231,152 Short-term lease liabilities 409,990 — 409,990 Other current liabilities 4,367 — — — 4,367 Total current liabilities 1,371,505 — — (200,337) 1,171,168 Long-term liabilities: Long-term debt 3,703,828 — — — 3,703,828 Deferred income tax liability 916,031 — — — 916,031 Long-term lease liabilities 2,823,197 — 2,823,197 Other liabilities 59,366 — — — 59,366 Total liabilities 8,873,927 — — (200,337) 8,673,590 Equity: Stockholders' equity: Partners' capital — — — — — Common stock 3,041 — — — 3,041 Additional paid-in capital 6,124,042 1,337,849 — (1,337,849) 6,124,042 Accumulated earnings 1,119,278 131,135 — 69,202 1,319,615 Total equity 7,246,361 1,468,984 — (1,268,647) 7,446,698 Total liabilities and equity $ 16,120,288 1,468,984 — (1,468,984) 16,120,288 |
Schedule of condensed consolidated statement of operations and comprehensive income (loss) | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 527,122 — — — 527,122 Natural gas liquids sales 338,269 — — — 338,269 Oil sales 59,722 — — — 59,722 Commodity derivative fair value gains 57,019 — — — 57,019 Gathering, compression, water handling and treatment — — 266,205 (261,361) 4,844 Marketing 89,598 — — — 89,598 Marketing derivative fair value losses (42) — — — (42) Other income 5,327 — — (5,327) — Total revenue and other 1,077,015 — 266,205 (266,688) 1,076,532 Operating expenses: Lease operating 35,124 — 67,608 (66,463) 36,269 Gathering, compression, processing, and transportation 442,602 — 12,701 (128,799) 326,504 Production and ad valorem taxes 29,352 — 1,166 — 30,518 Marketing 151,764 — — — 151,764 Exploration 666 — — — 666 Impairment of oil and gas properties 221,094 — — — 221,094 Impairment of midstream assets — — 1,157 — 1,157 Depletion, depreciation, and amortization 204,730 — 38,456 — 243,186 Accretion of asset retirement obligations 677 — 33 — 710 General and administrative 45,477 — 15,015 (632) 59,860 Accretion of contingent acquisition consideration — — 4,020 (4,020) — Total operating expenses 1,131,486 — 140,156 (199,914) 1,071,728 Operating income (loss) (54,471) — 126,049 (66,774) 4,804 Other income (expenses): Equity in earnings of unconsolidated affiliates — — 10,705 — 10,705 Interest expense, net (57,632) — (16,989) 93 (74,528) Equity in earnings (loss) of consolidated subsidiaries (23,363) — — 23,363 — Total other expenses (80,995) — (6,284) 23,456 (63,823) Income (loss) before income taxes (135,466) — 119,765 (43,318) (59,019) Provision for income tax expense (18,953) — — — (18,953) Net income (loss) and comprehensive income (loss) including noncontrolling interests (154,419) — 119,765 (43,318) (77,972) Net income and comprehensive income attributable to noncontrolling interests — — — 76,447 76,447 Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (154,419) — 119,765 (119,765) (154,419) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2019 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 524,448 — — — 524,448 Natural gas liquids sales 284,958 — — — 284,958 Oil sales 40,561 — — — 40,561 Commodity derivative fair value gains 220,788 — — — 220,788 Marketing 46,645 — — — 46,645 Other income 1,481 — — — 1,481 Total revenue and other 1,118,881 — — — 1,118,881 Operating expenses: Lease operating 35,928 — — — 35,928 Gathering, compression, processing, and transportation 603,860 — — — 603,860 Production and ad valorem taxes 28,863 — — — 28,863 Marketing 108,216 — — — 108,216 Exploration 208 — — — 208 Impairment of oil and gas properties 1,041,469 — — — 1,041,469 Impairment of midstream assets 7,800 — — — 7,800 Depletion, depreciation, and amortization 241,503 — — — 241,503 Accretion of asset retirement obligations 927 — — — 927 General and administrative 35,923 — — — 35,923 Contract termination and rig stacking 62 — — — 62 Total operating expenses 2,104,759 — — — 2,104,759 Operating loss (985,878) — — — (985,878) Other income (expenses): Equity in earnings of unconsolidated affiliates (38,255) (79,604) — — (117,859) Interest expense, net (47,754) — — — (47,754) Total other expenses (86,009) (79,604) — — (165,613) Loss before income taxes (1,071,887) (79,604) — — (1,151,491) Provision for income tax benefit 272,627 — — — 272,627 Net loss and comprehensive loss attributable to Antero Resources Corporation $ (799,260) (79,604) — — (878,864) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 1,498,324 — — — 1,498,324 Natural gas liquids sales 828,424 — — — 828,424 Oil sales 128,869 — — — 128,869 Commodity derivative fair value gains 134,793 — — — 134,793 Gathering, compression, water handling and treatment — — 746,188 (730,890) 15,298 Marketing 394,189 — — — 394,189 Marketing derivative fair value gains 94,081 — — — 94,081 Gain on sale of assets — — 583 (583) — Other income 16,381 — — (16,381) — Total revenue and other 3,095,061 — 746,771 (747,854) 3,093,978 Operating expenses: Lease operating 98,698 — 184,698 (190,241) 93,155 Gathering, compression, processing, and transportation 1,236,655 — 36,469 (346,896) 926,228 Production and ad valorem taxes 79,045 — 3,187 — 82,232 Marketing 560,924 — — — 560,924 Exploration 4,022 — — — 4,022 Impairment of oil and gas properties 406,068 — — — 406,068 Impairment of midstream assets 4,470 — 5,771 (583) 9,658 Depletion, depreciation, and amortization 602,159 — 107,321 — 709,480 Accretion of asset retirement obligations 2,000 — 101 — 2,101 General and administrative 138,555 — 44,967 (1,946) 181,576 Accretion of contingent acquisition consideration — — 11,841 (11,841) — Total operating expenses 3,132,596 — 394,355 (551,507) 2,975,444 Operating income (loss) (37,535) — 352,416 (196,347) 118,534 Other income (expenses): Equity in earnings of unconsolidated affiliates — — 27,832 — 27,832 Interest expense, net (165,519) — (42,913) 129 (208,303) Equity in earnings (loss) of consolidated subsidiaries (70,417) — — 70,417 — Total other expenses (235,936) — (15,081) 70,546 (180,471) Income (loss) before income taxes (273,471) — 337,335 (125,801) (61,937) Provision for income tax expense (2,500) — — — (2,500) Net income (loss) and comprehensive income (loss) including noncontrolling interests (275,971) — 337,335 (125,801) (64,437) Net income and comprehensive income attributable to noncontrolling interests — — — 211,534 211,534 Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (275,971) — 337,335 (337,335) (275,971) Condensed Consolidating Statement of Operations and Comprehensive Income Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 1,735,086 — — — 1,735,086 Natural gas liquids sales 902,606 — — — 902,606 Oil sales 137,675 — — — 137,675 Commodity derivative fair value gains 471,847 — — — 471,847 Gathering, compression, water handling and treatment — — 218,360 (213,881) 4,479 Marketing 200,911 — — — 200,911 Other income 4,999 — — (1,651) 3,348 Total revenue and other 3,453,124 — 218,360 (215,532) 3,455,952 Operating expenses: Lease operating 119,754 — 64,818 (66,055) 118,517 Gathering, compression, processing, and transportation 1,705,709 — — (110,486) 1,595,223 Production and ad valorem taxes 94,569 — — 940 95,509 Marketing 408,839 — — — 408,839 Exploration 648 — — — 648 Impairment of oil and gas properties 1,253,712 — — — 1,253,712 Impairment of midstream assets 7,800 — 6,982 — 14,782 Depletion, depreciation, and amortization 702,299 — 21,707 — 724,006 Loss on sale of assets 951 — — — 951 Accretion of asset retirement obligations 2,758 — 63 — 2,821 General and administrative 128,213 — 18,793 (499) 146,507 Contract termination and rig stacking 14,026 — — — 14,026 Accretion of contingent acquisition consideration — — 1,928 (1,928) — Total operating expenses 4,439,278 — 114,291 (178,028) 4,375,541 Operating income (loss) (986,154) — 104,069 (37,504) (919,589) Other income (expenses): Equity in earnings (loss) of unconsolidated affiliates (33,255) (69,202) 12,264 — (90,193) Interest expense, net (157,053) — (16,815) — (173,868) Equity in earnings of affiliates 15,021 — — (15,021) — Gain on deconsolidation of Antero Midstream Partners LP 1,205,705 200,337 — — 1,406,042 Total other income (expenses) 1,030,418 131,135 (4,551) (15,021) 1,141,981 Income before income taxes 44,264 131,135 99,518 (52,525) 222,392 Provision for income tax expense (33,332) — — — (33,332) Net income and comprehensive income including noncontrolling interests 10,932 131,135 99,518 (52,525) 189,060 Net income and comprehensive income attributable to noncontrolling interests — — — 46,993 46,993 Net income and comprehensive income attributable to Antero Resources Corporation $ 10,932 131,135 99,518 (99,518) 142,067 |
Schedule of condensed consolidated statement of cash flows | (18) Subsidiary Guarantors Each of Antero’s wholly owned subsidiaries has fully and unconditionally guaranteed Antero’s senior notes. In the event a subsidiary guarantor is sold or disposed of (whether by merger, consolidation, the sale of a sufficient amount of its capital stock so that it no longer qualifies as a “Subsidiary” of Antero (as defined in the indentures governing the notes) or the sale of all or substantially all of its assets (other than by lease)) and whether or not the subsidiary guarantor is the surviving entity in such transaction to a person that is not Antero or a restricted subsidiary of Antero, such subsidiary guarantor will be released from its obligations under its subsidiary guarantee if the sale or other disposition does not violate the covenants set forth in the indentures governing the notes. In addition, a subsidiary guarantor will be released from its obligations under the indentures and its guarantee, upon the release or discharge of the guarantee of other Indebtedness (as defined in the indentures governing the notes) that resulted in the creation of such guarantee, except a release or discharge by or as a result of payment under such guarantee; if Antero designates such subsidiary as an unrestricted subsidiary and such designation complies with the other applicable provisions of the indentures governing the notes or in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the notes. The following Condensed Consolidating Balance Sheets at December 31, 2018 and September 30, 2019, and the related Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2019, and Condensed Consolidating Statements of Cash Flows for the nine months ended September 30, 2018 and 2019 present financial information for Antero on a stand-alone basis (carrying its investment in subsidiaries using the equity method), financial information for the subsidiary guarantors, financial information for the non-guarantor subsidiaries, and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. Antero’s wholly owned subsidiaries are not restricted from making distributions to Antero. Condensed Consolidating Balance Sheet Parent Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Accounts receivable, net $ 49,529 — 1,544 — 51,073 Intercompany receivables 383 — 115,378 (115,761) — Accrued revenue 474,827 — — — 474,827 Derivative instruments 245,263 — — — 245,263 Other current assets 13,937 — 21,513 — 35,450 Total current assets 783,939 — 138,435 (115,761) 806,613 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,767,600 — — — 1,767,600 Proved properties 13,306,585 — — (600,913) 12,705,672 Water handling and treatment systems — — 1,004,793 9,025 1,013,818 Gathering systems and facilities 17,825 — 2,452,883 — 2,470,708 Other property and equipment 65,770 — 72 — 65,842 15,157,780 — 3,457,748 (591,888) 18,023,640 Less accumulated depletion, depreciation, and amortization (3,654,392) — (499,333) — (4,153,725) Property and equipment, net 11,503,388 — 2,958,415 (591,888) 13,869,915 Derivative instruments 362,169 — — — 362,169 Investment in Antero Midstream Partners (740,031) — — 740,031 — Contingent acquisition consideration 114,995 — — (114,995) — Investments in unconsolidated affiliates — — 433,642 — 433,642 Other assets 31,200 — 15,925 — 47,125 Total assets $ 12,055,660 — 3,546,417 (82,613) 15,519,464 Liabilities and Equity Current liabilities: Accounts payable $ 44,917 — 21,372 — 66,289 Intercompany payable 111,620 — 4,141 (115,761) — Accrued liabilities 392,949 — 72,121 — 465,070 Revenue distributions payable 310,827 — — — 310,827 Derivative instruments 532 — — — 532 Short-term lease liabilities 2,459 — — — 2,459 Other current liabilities 2,162 — 2,052 4,149 8,363 Total current liabilities 865,466 — 99,686 (111,612) 853,540 Long-term liabilities: Long-term debt 3,829,541 — 1,632,147 — 5,461,688 Deferred income tax liability 650,788 — — — 650,788 Contingent acquisition consideration — — 114,995 (114,995) — Long-term lease liabilities 2,873 — — — 2,873 Other liabilities 55,017 — 8,081 — 63,098 Total liabilities 5,403,685 — 1,854,909 (226,607) 7,031,987 Equity: Stockholders' equity: Partners' capital — — 1,691,508 (1,691,508) — Common stock 3,086 — — — 3,086 Additional paid-in capital 5,471,341 — — 1,013,833 6,485,174 Accumulated earnings 1,177,548 — — — 1,177,548 Total stockholders' equity 6,651,975 — 1,691,508 (677,675) 7,665,808 Noncontrolling interests in consolidated subsidiary — — — 821,669 821,669 Total equity 6,651,975 — 1,691,508 143,994 8,487,477 Total liabilities and equity $ 12,055,660 — 3,546,417 (82,613) 15,519,464 Condensed Consolidating Balance Sheet Parent Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets: Accounts receivable, net 29,207 — — — 29,207 Intercompany receivables — 131,135 — (131,135) — Accrued revenue 281,177 — — — 281,177 Derivative instruments 411,774 — — — 411,774 Other current assets 7,342 — — — 7,342 Total current assets 729,500 131,135 — (131,135) 729,500 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,406,464 — — — 1,406,464 Proved properties 11,568,285 — — — 11,568,285 Gathering systems and facilities 5,802 — — — 5,802 Other property and equipment 70,965 — — — 70,965 13,051,516 — — — 13,051,516 Less accumulated depletion, depreciation, and amortization (3,136,767) — — — (3,136,767) Property and equipment, net 9,914,749 — — — 9,914,749 Operating leases right-of-use assets 3,230,148 — — — 3,230,148 Derivative instruments 405,180 — — — 405,180 Investments in unconsolidated affiliates 481,474 1,337,849 — — 1,819,323 Investments in consolidated affiliates 1,337,849 — — (1,337,849) — Other assets 21,388 — — — 21,388 Total assets $ 16,120,288 1,468,984 — (1,468,984) 16,120,288 Liabilities and Equity Current liabilities: Accounts payable $ 32,496 — — — 32,496 Accounts payable, related parties 300,774 — — (200,337) 100,437 Accrued liabilities 392,726 — — — 392,726 Revenue distributions payable 231,152 — — — 231,152 Short-term lease liabilities 409,990 — 409,990 Other current liabilities 4,367 — — — 4,367 Total current liabilities 1,371,505 — — (200,337) 1,171,168 Long-term liabilities: Long-term debt 3,703,828 — — — 3,703,828 Deferred income tax liability 916,031 — — — 916,031 Long-term lease liabilities 2,823,197 — 2,823,197 Other liabilities 59,366 — — — 59,366 Total liabilities 8,873,927 — — (200,337) 8,673,590 Equity: Stockholders' equity: Partners' capital — — — — — Common stock 3,041 — — — 3,041 Additional paid-in capital 6,124,042 1,337,849 — (1,337,849) 6,124,042 Accumulated earnings 1,119,278 131,135 — 69,202 1,319,615 Total equity 7,246,361 1,468,984 — (1,268,647) 7,446,698 Total liabilities and equity $ 16,120,288 1,468,984 — (1,468,984) 16,120,288 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 527,122 — — — 527,122 Natural gas liquids sales 338,269 — — — 338,269 Oil sales 59,722 — — — 59,722 Commodity derivative fair value gains 57,019 — — — 57,019 Gathering, compression, water handling and treatment — — 266,205 (261,361) 4,844 Marketing 89,598 — — — 89,598 Marketing derivative fair value losses (42) — — — (42) Other income 5,327 — — (5,327) — Total revenue and other 1,077,015 — 266,205 (266,688) 1,076,532 Operating expenses: Lease operating 35,124 — 67,608 (66,463) 36,269 Gathering, compression, processing, and transportation 442,602 — 12,701 (128,799) 326,504 Production and ad valorem taxes 29,352 — 1,166 — 30,518 Marketing 151,764 — — — 151,764 Exploration 666 — — — 666 Impairment of oil and gas properties 221,094 — — — 221,094 Impairment of midstream assets — — 1,157 — 1,157 Depletion, depreciation, and amortization 204,730 — 38,456 — 243,186 Accretion of asset retirement obligations 677 — 33 — 710 General and administrative 45,477 — 15,015 (632) 59,860 Accretion of contingent acquisition consideration — — 4,020 (4,020) — Total operating expenses 1,131,486 — 140,156 (199,914) 1,071,728 Operating income (loss) (54,471) — 126,049 (66,774) 4,804 Other income (expenses): Equity in earnings of unconsolidated affiliates — — 10,705 — 10,705 Interest expense, net (57,632) — (16,989) 93 (74,528) Equity in earnings (loss) of consolidated subsidiaries (23,363) — — 23,363 — Total other expenses (80,995) — (6,284) 23,456 (63,823) Income (loss) before income taxes (135,466) — 119,765 (43,318) (59,019) Provision for income tax expense (18,953) — — — (18,953) Net income (loss) and comprehensive income (loss) including noncontrolling interests (154,419) — 119,765 (43,318) (77,972) Net income and comprehensive income attributable to noncontrolling interests — — — 76,447 76,447 Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (154,419) — 119,765 (119,765) (154,419) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2019 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 524,448 — — — 524,448 Natural gas liquids sales 284,958 — — — 284,958 Oil sales 40,561 — — — 40,561 Commodity derivative fair value gains 220,788 — — — 220,788 Marketing 46,645 — — — 46,645 Other income 1,481 — — — 1,481 Total revenue and other 1,118,881 — — — 1,118,881 Operating expenses: Lease operating 35,928 — — — 35,928 Gathering, compression, processing, and transportation 603,860 — — — 603,860 Production and ad valorem taxes 28,863 — — — 28,863 Marketing 108,216 — — — 108,216 Exploration 208 — — — 208 Impairment of oil and gas properties 1,041,469 — — — 1,041,469 Impairment of midstream assets 7,800 — — — 7,800 Depletion, depreciation, and amortization 241,503 — — — 241,503 Accretion of asset retirement obligations 927 — — — 927 General and administrative 35,923 — — — 35,923 Contract termination and rig stacking 62 — — — 62 Total operating expenses 2,104,759 — — — 2,104,759 Operating loss (985,878) — — — (985,878) Other income (expenses): Equity in earnings of unconsolidated affiliates (38,255) (79,604) — — (117,859) Interest expense, net (47,754) — — — (47,754) Total other expenses (86,009) (79,604) — — (165,613) Loss before income taxes (1,071,887) (79,604) — — (1,151,491) Provision for income tax benefit 272,627 — — — 272,627 Net loss and comprehensive loss attributable to Antero Resources Corporation $ (799,260) (79,604) — — (878,864) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 1,498,324 — — — 1,498,324 Natural gas liquids sales 828,424 — — — 828,424 Oil sales 128,869 — — — 128,869 Commodity derivative fair value gains 134,793 — — — 134,793 Gathering, compression, water handling and treatment — — 746,188 (730,890) 15,298 Marketing 394,189 — — — 394,189 Marketing derivative fair value gains 94,081 — — — 94,081 Gain on sale of assets — — 583 (583) — Other income 16,381 — — (16,381) — Total revenue and other 3,095,061 — 746,771 (747,854) 3,093,978 Operating expenses: Lease operating 98,698 — 184,698 (190,241) 93,155 Gathering, compression, processing, and transportation 1,236,655 — 36,469 (346,896) 926,228 Production and ad valorem taxes 79,045 — 3,187 — 82,232 Marketing 560,924 — — — 560,924 Exploration 4,022 — — — 4,022 Impairment of oil and gas properties 406,068 — — — 406,068 Impairment of midstream assets 4,470 — 5,771 (583) 9,658 Depletion, depreciation, and amortization 602,159 — 107,321 — 709,480 Accretion of asset retirement obligations 2,000 — 101 — 2,101 General and administrative 138,555 — 44,967 (1,946) 181,576 Accretion of contingent acquisition consideration — — 11,841 (11,841) — Total operating expenses 3,132,596 — 394,355 (551,507) 2,975,444 Operating income (loss) (37,535) — 352,416 (196,347) 118,534 Other income (expenses): Equity in earnings of unconsolidated affiliates — — 27,832 — 27,832 Interest expense, net (165,519) — (42,913) 129 (208,303) Equity in earnings (loss) of consolidated subsidiaries (70,417) — — 70,417 — Total other expenses (235,936) — (15,081) 70,546 (180,471) Income (loss) before income taxes (273,471) — 337,335 (125,801) (61,937) Provision for income tax expense (2,500) — — — (2,500) Net income (loss) and comprehensive income (loss) including noncontrolling interests (275,971) — 337,335 (125,801) (64,437) Net income and comprehensive income attributable to noncontrolling interests — — — 211,534 211,534 Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (275,971) — 337,335 (337,335) (275,971) Condensed Consolidating Statement of Operations and Comprehensive Income Parent Guarantor Non-Guarantor Eliminations Consolidated Revenue and other: Natural gas sales $ 1,735,086 — — — 1,735,086 Natural gas liquids sales 902,606 — — — 902,606 Oil sales 137,675 — — — 137,675 Commodity derivative fair value gains 471,847 — — — 471,847 Gathering, compression, water handling and treatment — — 218,360 (213,881) 4,479 Marketing 200,911 — — — 200,911 Other income 4,999 — — (1,651) 3,348 Total revenue and other 3,453,124 — 218,360 (215,532) 3,455,952 Operating expenses: Lease operating 119,754 — 64,818 (66,055) 118,517 Gathering, compression, processing, and transportation 1,705,709 — — (110,486) 1,595,223 Production and ad valorem taxes 94,569 — — 940 95,509 Marketing 408,839 — — — 408,839 Exploration 648 — — — 648 Impairment of oil and gas properties 1,253,712 — — — 1,253,712 Impairment of midstream assets 7,800 — 6,982 — 14,782 Depletion, depreciation, and amortization 702,299 — 21,707 — 724,006 Loss on sale of assets 951 — — — 951 Accretion of asset retirement obligations 2,758 — 63 — 2,821 General and administrative 128,213 — 18,793 (499) 146,507 Contract termination and rig stacking 14,026 — — — 14,026 Accretion of contingent acquisition consideration — — 1,928 (1,928) — Total operating expenses 4,439,278 — 114,291 (178,028) 4,375,541 Operating income (loss) (986,154) — 104,069 (37,504) (919,589) Other income (expenses): Equity in earnings (loss) of unconsolidated affiliates (33,255) (69,202) 12,264 — (90,193) Interest expense, net (157,053) — (16,815) — (173,868) Equity in earnings of affiliates 15,021 — — (15,021) — Gain on deconsolidation of Antero Midstream Partners LP 1,205,705 200,337 — — 1,406,042 Total other income (expenses) 1,030,418 131,135 (4,551) (15,021) 1,141,981 Income before income taxes 44,264 131,135 99,518 (52,525) 222,392 Provision for income tax expense (33,332) — — — (33,332) Net income and comprehensive income including noncontrolling interests 10,932 131,135 99,518 (52,525) 189,060 Net income and comprehensive income attributable to noncontrolling interests — — — 46,993 46,993 Net income and comprehensive income attributable to Antero Resources Corporation $ 10,932 131,135 99,518 (99,518) 142,067 Condensed Consolidating Statement of Cash Flows Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows provided by (used in) operating activities: Net income (loss) including noncontrolling interests $ (275,971) — 337,335 (125,801) (64,437) Adjustment to reconcile net income (loss) to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 604,159 — 107,422 — 711,581 Accretion of contingent acquisition consideration (11,841) — 11,841 — — Impairment of oil and gas properties 406,068 — — — 406,068 Impairment of midstream assets 4,470 — 5,771 (583) 9,658 Commodity derivative fair value gains (134,793) — — — (134,793) Gains on settled commodity derivatives 268,369 — — — 268,369 Marketing derivative fair value gains (94,081) — — — (94,081) Gains on settled marketing derivatives 78,098 — — — 78,098 Deferred income tax expense 2,500 — — — 2,500 Gain on sale of assets — — (583) 583 — Equity-based compensation expense 39,823 — 16,606 — 56,429 Equity in earnings (loss) of consolidated subsidiaries 70,417 — — (70,417) — Equity in earnings of unconsolidated affiliates — — (27,832) — (27,832) Distributions of earnings from unconsolidated affiliates — — 29,660 — 29,660 Distributions from Antero Midstream Partners LP 115,678 — — (115,678) — Other 862 — 2,083 — 2,945 Changes in current assets and liabilities 20,015 — (10,901) 7,119 16,233 Net cash provided by operating activities 1,093,773 — 471,402 (304,777) 1,260,398 Cash flows provided by (used in) investing activities: Additions to unproved properties (130,381) — — — (130,381) Drilling and completion costs (1,328,289) — — 202,629 (1,125,660) Additions to water handling and treatment systems — — (68,325) (9,060) (77,385) Additions to gathering systems and facilities 175 — (337,623) — (337,448) Additions to other property and equipment (5,371) — — — (5,371) Investments in unconsolidated affiliates — — (91,419) — (91,419) Change in other assets (1,810) — (865) — (2,675) Other — — 4,470 (4,470) — Net cash used in investing activities (1,465,676) — (493,762) 189,099 (1,770,339) Cash flows provided by (used in) financing activities: Borrowings (repayments) on bank credit facility, net 362,000 — 320,000 — 682,000 Distributions to noncontrolling interests in Antero Midstream Partners LP — — (304,453) 115,678 (188,775) Employee tax withholding for settlement of equity compensation awards (6,806) — (1,399) — (8,205) Other (3,369) — (151) — (3,520) Net cash provided by financing activities 351,825 — 13,997 115,678 481,500 Net decrease in cash and cash equivalents (20,078) — (8,363) — (28,441) Cash and cash equivalents, beginning of period 20,078 — 8,363 — 28,441 Cash and cash equivalents, end of period $ — — — — — Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows provided by (used in) operating activities: Net income including noncontrolling interests $ 10,932 131,135 99,518 (52,525) 189,060 Adjustment to reconcile net income to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 705,057 — 21,770 — 726,827 Impairment of oil and gas properties 1,253,712 — — — 1,253,712 Impairment of midstream assets 7,800 — 6,982 — 14,782 Commodity derivative fair value gains (471,847) — — — (471,847) Gains on settled commodity derivatives 261,794 — — — 261,794 Deferred income tax expense 32,019 — — — 32,019 Loss on sale of assets 951 — — — 951 Equity-based compensation expense 16,850 — 2,477 — 19,327 Equity in earnings of affiliates (15,021) — — 15,021 — Equity in earnings (loss) of unconsolidated affiliates 33,255 69,202 (12,264) — 90,193 Distributions/dividends of earnings from unconsolidated affiliates 96,636 — 12,605 — 109,241 Gain on deconsolidation of Antero Midstream Partners LP (1,205,705) (200,337) — — (1,406,042) Distributions from Antero Midstream Partners LP 94,391 — — (94,391) — Other (40,493) — 750 47,922 8,179 Changes in current assets and liabilities 121,087 — (10,573) 16,808 127,322 Net cash provided by operating activities 901,418 — 121,265 (67,165) 955,518 Cash flows provided by (used in) investing activities: Additions to unproved properties (69,796) — — — (69,796) Drilling and completion costs (978,496) — — 20,565 (957,931) Additions to water handling and treatment systems — — (24,547) 131 (24,416) Additions to gathering systems and facilities — — (48,239) — (48,239) Additions to other property and equipment (4,918) — (1,062) — (5,980) Investments in unconsolidated affiliates — — (25,020) — (25,020) Proceeds from the Antero Midstream Partners LP Transactions 296,611 — — — 296,611 Change in other assets 10,818 — (3,357) — 7,461 Proceeds from sale of assets 1,983 — — — 1,983 Net cash used in investing activities (743,798) — (102,225) 20,696 (825,327) Cash flows provided by (used in) financing activities: Repurchases of common stock (17,924) — — — (17,924) Issuance of senior notes — — 650,000 — 650,000 Borrowings (repayments) on bank credit facility, net (135,379) — 90,379 — (45,000) Payments of deferred financing costs (791) — (7,468) — (8,259) Distributions to noncontrolling interests in Antero Midstream Partners LP — — (131,545) 46,469 (85,076) Employee tax withholding for settlement of equity compensation awards (2,350) — (29) — (2,379) Other (1,176) — (845) — (2,021) Net cash provided by (used in) financing activities (157,620) — 600,492 46,469 489,341 Effect of deconsolidation of Antero Midstream Partners LP — — (619,532) — (619,532) Net increase in cash and cash equivalents — — — — — Cash and cash equivalents, beginning of period — — — — — Cash and cash equivalents, end of period $ — — — — — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Principles of Consolidation (Details) - USD ($) $ in Millions | Mar. 11, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 12, 2019 | Dec. 31, 2018 |
Basis of Presentation | |||||||
Other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 0 | |||
Accounts Payable | |||||||
Basis of Presentation | |||||||
Bank Overdrafts | 8 | 8 | $ 10 | ||||
Revenue distributions payable | |||||||
Basis of Presentation | |||||||
Bank Overdrafts | $ 34 | $ 34 | $ 28 | ||||
Antero Midstream Corporation | |||||||
Basis of Presentation | |||||||
Ownership interest in equity method | 31.00% | ||||||
Antero Midstream Partners LP | |||||||
Basis of Presentation | |||||||
Ownership interest | 53.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and equipment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)a | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Oil and Gas Properties | ||||
Exploration | $ 0 | $ 0 | ||
Impairment of oil and gas properties | $ 1,041,469 | $ 221,094 | 1,253,712 | 406,068 |
Impairment of oil and gas properties for leases expired or expected to expire | 347,000 | 406,000 | ||
Impairment of proved properties | $ 7,800 | $ 1,157 | 14,782 | $ 9,658 |
Land received in exchange | a | 20,770 | |||
Land delivered in exchange | a | 18,857 | |||
Acreage and ownership interest | $ 0 | |||
Utica Shale | ||||
Oil and Gas Properties | ||||
Impairment of proved properties | 881,000 | |||
Oil and gas property wells | ||||
Oil and Gas Properties | ||||
Impairment of oil and gas properties | $ 26,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - EPS and New Accounting Principle (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per share | ||||
Basic weighted average number of shares outstanding | 307,781 | 317,082 | 308,509 | 316,850 |
Diluted weighted average number of shares outstanding | 307,781 | 317,082 | 308,646 | 316,850 |
Restricted stock and restricted stock unit | ||||
Earnings per share | ||||
Add: Dilutive effect of non-vested restricted stock units | 27 | |||
Weighted Average Anti-dilutive Awards | 2,356 | 2,813 | 2,008 | 2,996 |
Stock options | ||||
Earnings per share | ||||
Weighted Average Anti-dilutive Awards | 514 | 619 | 541 | 637 |
Performance share unit awards | ||||
Earnings per share | ||||
Add: Dilutive effect of non-vested restricted stock units | 110 | |||
Weighted Average Anti-dilutive Awards | 2,676 | 1,880 | 2,141 | 1,665 |
Deconsolidation of Antero Mid_3
Deconsolidation of Antero Midstream Partners LP - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Mar. 12, 2019 | Mar. 11, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Deconsolidation | ||||
Cash received | $ 296,611 | |||
Par value per share | $ 0.01 | $ 0.01 | ||
Antero Midstream Corporation | ||||
Deconsolidation | ||||
Cash received | $ 297,000 | |||
Shares of Antero Midstream's common stock received | 158,400 | |||
Par value per share | $ 0.01 | |||
Ownership interest in equity method | 31.00% | |||
Gain on deconsolidation | $ 1,400,000 | |||
Fair value of our retained equity method investment | $ 2,000,000 | |||
Antero Midstream Partners LP | ||||
Deconsolidation | ||||
Number of common units owned | 98,870,335 | |||
Ownership interest | 53.00% |
Deconsolidation of Antero Mid_4
Deconsolidation of Antero Midstream Partners LP - Summarized Financial Information of Antero Midstream Partners (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 12, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Deconsolidation | ||||
Current assets | $ 729,500 | $ 806,613 | ||
Property and equipment, net | 9,914,749 | 13,869,915 | ||
Other noncurrent assets | 21,388 | 47,125 | ||
Total assets | 16,120,288 | 15,519,464 | $ 15,802,535 | |
Current liabilities | 1,171,168 | 853,540 | ||
Long-term debt | 3,703,828 | 5,461,688 | ||
Other noncurrent liabilities | 59,366 | 63,098 | ||
Total liabilities | $ 8,673,590 | $ 7,031,987 | ||
Antero Midstream Partners LP | ||||
Deconsolidation | ||||
Current assets | $ 763,109 | |||
Property and equipment, net | 3,003,693 | |||
Other noncurrent assets | 501,208 | |||
Total assets | 4,268,010 | |||
Current liabilities | 123,473 | |||
Long-term debt | 2,359,084 | |||
Other noncurrent liabilities | 123,523 | |||
Total liabilities | 2,606,080 | |||
Net assets | $ 1,661,930 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue | ||||
Revenues from contracts with customers | $ 896,612 | $ 1,019,555 | $ 2,980,757 | $ 2,865,104 |
Income from derivatives and other sources | 222,269 | 56,977 | 475,195 | 228,874 |
Total revenue | 1,118,881 | 1,076,532 | 3,455,952 | 3,093,978 |
Natural gas sales | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 524,448 | 527,122 | 1,735,086 | 1,498,324 |
Oil sales | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 40,561 | 59,722 | 137,675 | 128,869 |
Marketing | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 46,645 | 89,598 | 200,911 | 394,189 |
Other income | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 1,481 | 3,348 | ||
Exploration and production | Natural gas sales | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 524,448 | 527,122 | 1,735,086 | 1,498,324 |
Exploration and production | Natural gas liquids sales (ethane) | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 26,488 | 56,185 | 92,378 | 115,947 |
Exploration and production | Natural gas liquids sales (C3+ NGLs) | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 258,470 | 282,084 | 810,228 | 712,477 |
Exploration and production | Oil sales | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 40,561 | 59,722 | 137,675 | 128,869 |
Gathering and compression | Gathering and compression | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 4,439 | 3,972 | 12,848 | |
Water handling and treatment | Water handling and treatment | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | 405 | 507 | 2,450 | |
Marketing | Marketing | ||||
Disaggregation of Revenue | ||||
Revenues from contracts with customers | $ 46,645 | $ 89,598 | $ 200,911 | $ 394,189 |
Revenue - Transaction Price All
Revenue - Transaction Price Allocation and Contract Balances (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue | ||
Original expected duration | true | |
Receivables from contracts with customers | $ 281 | $ 475 |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Thousands | Mar. 12, 2019item | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Investments in unconsolidated affiliates | ||||||
Balance at beginning of period | $ 433,642 | |||||
Investments | 25,020 | |||||
Equity in earnings (loss) of unconsolidated affiliates | $ (117,859) | $ 10,705 | (90,193) | $ 27,832 | ||
Distributions/dividends from unconsolidated affiliates | (109,241) | $ (29,660) | ||||
Elimination of intercompany profit | 30,621 | |||||
Effects of deconsolidation | 1,529,474 | |||||
Balance at end of period | 1,819,323 | 1,819,323 | ||||
Stonewall | ||||||
Investments in unconsolidated affiliates | ||||||
Balance at beginning of period | 68,103 | |||||
Equity in earnings (loss) of unconsolidated affiliates | 1,894 | |||||
Distributions/dividends from unconsolidated affiliates | (3,000) | |||||
Effects of deconsolidation | (66,997) | |||||
Appalachia joint venture | MarkWest | ||||||
Investments in unconsolidated affiliates | ||||||
Balance at beginning of period | 365,539 | |||||
Investments | 25,020 | |||||
Equity in earnings (loss) of unconsolidated affiliates | 10,370 | |||||
Distributions/dividends from unconsolidated affiliates | (9,605) | |||||
Effects of deconsolidation | (391,324) | |||||
Antero Midstream Corporation | ||||||
Equity Method Investments | ||||||
Ownership percentage | 31.00% | |||||
Investments in unconsolidated affiliates | ||||||
Equity in earnings (loss) of unconsolidated affiliates | (102,457) | |||||
Distributions/dividends from unconsolidated affiliates | (96,636) | |||||
Elimination of intercompany profit | 30,621 | |||||
Effects of deconsolidation | 1,987,795 | |||||
Balance at end of period | 1,819,323 | 1,819,323 | ||||
Balance Sheet | ||||||
Current assets | 109,224 | 109,224 | ||||
Noncurrent assets | 6,336,280 | 6,336,280 | ||||
Total assets | 6,445,504 | 6,445,504 | ||||
Current liabilities | 259,628 | 259,628 | ||||
Noncurrent liabilities | 2,662,846 | 2,662,846 | ||||
Stockholders' equity | 3,523,030 | 3,523,030 | ||||
Total liabilities and equity | $ 6,445,504 | $ 6,445,504 | ||||
Statement of Operations | ||||||
Revenues | $ 553,521 | |||||
Operating expenses | 745,940 | |||||
Loss from operations | (192,419) | |||||
Net loss attributable to the equity method investments | $ (197,006) | |||||
Antero Midstream Corporation | Antero Midstream Corporation | ||||||
Equity Method Investments | ||||||
Ownership percentage | 31.50% | 31.50% | ||||
Antero Midstream Partners LP | ||||||
Equity Method Investments | ||||||
Number of equity method investments | item | 2 | |||||
Antero Midstream Partners LP | Stonewall | ||||||
Equity Method Investments | ||||||
Ownership percentage | 15.00% | |||||
Antero Midstream Partners LP | Appalachia joint venture | ||||||
Equity Method Investments | ||||||
Ownership percentage | 50.00% |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities | ||
Accrued capital expenditures | $ 83,963 | $ 113,237 |
Accrued gathering, compression, processing, and transportation expenses | 141,036 | 148,032 |
Accrued marketing expenses | 47,763 | 67,082 |
Accrued interest expense, net | 62,255 | 43,444 |
Other accrued liabilities | 57,709 | 93,275 |
Total accrued liabilities | $ 392,726 | $ 465,070 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Oct. 26, 2017 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 21, 2016 | Mar. 17, 2015 | Sep. 18, 2014 | May 06, 2014 | Nov. 05, 2013 |
Long- term Debt | ||||||||
Long-term debt | $ 3,703,828 | $ 5,461,688 | ||||||
Credit Facility | ||||||||
Long- term Debt | ||||||||
Current borrowing base | 4,500,000 | |||||||
Lender commitments | $ 2,500,000 | |||||||
Time period prior to maturity date of senior notes as one option for maturity date of Credit Facility | 91 days | 91 days | ||||||
Outstanding balance | $ 275,000 | 405,000 | ||||||
Average annualized interest rate | 4.39% | |||||||
Outstanding letters of credit | $ 703,000 | 685,000 | ||||||
Credit Facility | Minimum | Not Investment Grade Period | ||||||||
Long- term Debt | ||||||||
Basis points added to the reference rate | 0.25% | |||||||
Commitment fees on the unused portion during any period that is not an Investment Grade Period (as a percent) | 0.30% | |||||||
Credit Facility | Minimum | Investment Grade Period | ||||||||
Long- term Debt | ||||||||
Basis points added to the reference rate | 0.125% | |||||||
Commitment fees on the unused portion during an Investment Grade period (as a percent) | 0.15% | |||||||
Credit Facility | Maximum | Not Investment Grade Period | ||||||||
Long- term Debt | ||||||||
Basis points added to the reference rate | 2.25% | |||||||
Commitment fees on the unused portion during any period that is not an Investment Grade Period (as a percent) | 0.375% | |||||||
Credit Facility | Maximum | Investment Grade Period | ||||||||
Long- term Debt | ||||||||
Basis points added to the reference rate | 1.75% | |||||||
Commitment fees on the unused portion during an Investment Grade period (as a percent) | 0.30% | |||||||
5.375% senior notes due 2021 | ||||||||
Long- term Debt | ||||||||
Interest rate (as a percent) | 5.375% | |||||||
Senior notes issued | $ 1,000,000 | |||||||
Issue price as percentage of par value | 100.00% | |||||||
Redemption price | 101.344% | |||||||
Redemption price at which notes may be required to be repurchased in event of change of control | 101.00% | |||||||
5.375% senior notes due 2021 | On or after November 1, 2019 | ||||||||
Long- term Debt | ||||||||
Redemption price | 100.00% | |||||||
Stand-alone revolving note | ||||||||
Long- term Debt | ||||||||
Maximum amount of the Credit Facility | $ 25,000 | |||||||
Stand-alone revolving note | Other current liabilities | ||||||||
Long- term Debt | ||||||||
Outstanding balance | $ 0 | 5,400 | ||||||
Stand-alone revolving note | Lender's Prime Rate | ||||||||
Long- term Debt | ||||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||||
5.125 senior notes due 2022 | ||||||||
Long- term Debt | ||||||||
Interest rate (as a percent) | 5.125% | |||||||
Senior notes issued | $ 500,000 | $ 600,000 | ||||||
Issue price as percentage of par value | 100.50% | 100.00% | ||||||
Redemption price | 101.281% | |||||||
Redemption price at which notes may be required to be repurchased in event of change of control | 101.00% | |||||||
5.125 senior notes due 2022 | On or after June 1, 2020 | ||||||||
Long- term Debt | ||||||||
Redemption price | 100.00% | |||||||
5.625% senior notes due 2023 | ||||||||
Long- term Debt | ||||||||
Interest rate (as a percent) | 5.625% | |||||||
Senior notes issued | $ 750,000 | |||||||
Issue price as percentage of par value | 100.00% | |||||||
Redemption price | 102.813% | |||||||
Redemption price at which notes may be required to be repurchased in event of change of control | 101.00% | |||||||
5.625% senior notes due 2023 | On Or After June 1, 2021 | ||||||||
Long- term Debt | ||||||||
Redemption price | 100.00% | |||||||
5.375% senior notes due 2024 | ||||||||
Long- term Debt | ||||||||
Interest rate (as a percent) | 5.375% | |||||||
5.00% senior notes due 2025 | ||||||||
Long- term Debt | ||||||||
Long-term notes payable | $ 600,000 | |||||||
Interest rate (as a percent) | 5.00% | |||||||
Issue price as percentage of par value | 100.00% | |||||||
Redemption price at which notes may be required to be repurchased in event of change of control | 101.00% | |||||||
5.00% senior notes due 2025 | Prior to March 1, 2020 | ||||||||
Long- term Debt | ||||||||
Redemption price | 100.00% | |||||||
5.00% senior notes due 2025 | On or before March 1, 2020 | ||||||||
Long- term Debt | ||||||||
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings | 35.00% | |||||||
Redemption price of the debt instrument if redeemed with the proceeds of certain equity offerings (as a percent) | 105.00% | |||||||
5.00% senior notes due 2025 | On or after March 1, 2020 | ||||||||
Long- term Debt | ||||||||
Redemption price | 103.75% | |||||||
5.00% senior notes due 2025 | On or after March1, 2023 | ||||||||
Long- term Debt | ||||||||
Redemption price | 100.00% | |||||||
Reportable legal entity | ||||||||
Long- term Debt | ||||||||
Long-term debt | $ 3,703,828 | 3,829,541 | ||||||
Reportable legal entity | Parent (Antero) | ||||||||
Long- term Debt | ||||||||
Net unamortized premium | 1,021 | 1,241 | ||||||
Net unamortized debt issuance costs | (22,193) | (26,700) | ||||||
Long-term debt | 3,703,828 | 3,829,541 | ||||||
Reportable legal entity | Credit Facility | Parent (Antero) | ||||||||
Long- term Debt | ||||||||
Bank credit facility long-term debt | 275,000 | 405,000 | ||||||
Reportable legal entity | 5.375% senior notes due 2021 | Parent (Antero) | ||||||||
Long- term Debt | ||||||||
Long-term notes payable | 1,000,000 | 1,000,000 | ||||||
Reportable legal entity | 5.125 senior notes due 2022 | Parent (Antero) | ||||||||
Long- term Debt | ||||||||
Long-term notes payable | 1,100,000 | 1,100,000 | ||||||
Reportable legal entity | 5.625% senior notes due 2023 | Parent (Antero) | ||||||||
Long- term Debt | ||||||||
Long-term notes payable | 750,000 | 750,000 | ||||||
Reportable legal entity | 5.00% senior notes due 2025 | Parent (Antero) | ||||||||
Long- term Debt | ||||||||
Long-term notes payable | $ 600,000 | 600,000 | ||||||
Antero Midstream Partners LP | ||||||||
Long- term Debt | ||||||||
Net unamortized debt issuance costs | (7,853) | |||||||
Long-term debt | 1,632,147 | |||||||
Antero Midstream Partners LP | Midstream Credit Facility | ||||||||
Long- term Debt | ||||||||
Bank credit facility long-term debt | 990,000 | |||||||
Antero Midstream Partners LP | 5.375% senior notes due 2024 | ||||||||
Long- term Debt | ||||||||
Long-term notes payable | $ 650,000 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Asset Retirement Obligations | ||||
Asset retirement obligations - beginning of period | $ 58,979 | |||
Obligations settled | (153) | |||
Obligations incurred | 1,361 | |||
Accretion expense | $ 927 | $ 710 | 2,821 | $ 2,101 |
Effect of deconsolidation of Antero Midstream Partners LP | (7,518) | |||
Asset retirement obligations - end of period | $ 55,490 | $ 55,490 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Stock-based compensation expense | |||||
Number of stock-based compensation awards authorized | 16,906,500 | 16,906,500 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Number of shares available for future grant under the Plan | 6,046,007 | 6,046,007 | |||
Equity based compensation expense recognized | $ 3,875 | $ 16,202 | $ 19,327 | $ 56,429 | |
Midstream Plan | |||||
Stock-based compensation expense | |||||
Number of stock-based compensation awards authorized | 10,000,000 | 10,000,000 | |||
Restricted stock awards | |||||
Stock-based compensation expense | |||||
Equity based compensation expense recognized | $ 2,229 | 10,001 | $ 8,829 | 33,676 | |
Stock options | |||||
Stock-based compensation expense | |||||
Equity based compensation expense recognized | 452 | 389 | 1,428 | ||
Performance share unit awards | |||||
Stock-based compensation expense | |||||
Equity based compensation expense recognized | 399 | 1,017 | 6,027 | 7,018 | |
Antero Midstream Partners Phantom Unit Awards | |||||
Stock-based compensation expense | |||||
Equity based compensation expense recognized | 867 | 4,193 | 2,942 | 12,752 | |
Equity awards issued to directors | |||||
Stock-based compensation expense | |||||
Equity based compensation expense recognized | $ 380 | $ 539 | $ 1,140 | $ 1,555 | |
Antero Midstream Corporation | Midstream Plan | |||||
Stock-based compensation expense | |||||
Conversion rate of units converted into restricted stock | 1.8926 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock and RSU Awards (Details) - Restricted stock and restricted stock unit $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Number of shares | |
Total awarded and unvested at the beginning of the period (in shares) | shares | 1,712,485 |
Granted (in shares) | shares | 1,610,690 |
Vested (in shares) | shares | (718,192) |
Forfeited (in shares) | shares | (307,938) |
Total awarded and unvested at the end of the period (in shares) | shares | 2,297,045 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 24.57 |
Granted (in dollars per share) | $ / shares | 8.60 |
Vested (in dollars per share) | $ / shares | 27.70 |
Forfeited (in dollars per share) | $ / shares | 16.56 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 13.47 |
Additional equity compensation to be recognized over the remaining period | $ | $ 25 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 7 months 6 days |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Stock options | ||
Outstanding at the beginning of the period (in shares) | 579,617 | |
Options forfeited (in shares) | (79,484) | |
Outstanding at the end of the period (in shares) | 500,133 | 579,617 |
Vested or expected to vest (in shares) | 500,133 | |
Exercisable (in shares) | 500,133 | |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 50.55 | |
Options forfeited (in dollars per share) | 50.25 | |
Outstanding at the end of the period (in dollars per share) | 50.60 | $ 50.55 |
Vested or expected to vest (in dollars per share) | 50.60 | |
Exercisable (in dollars per share) | $ 50.60 | |
Weighted average remaining contractual life | ||
Outstanding | 4 years 11 months 23 days | 5 years 9 months 21 days |
Vested or expected to vest | 4 years 11 months 23 days | |
Exercisable | 4 years 11 months 23 days | |
Additional disclosures | ||
Additional equity compensation to be recognized over the remaining period | $ 0 | |
Maximum | ||
Stock-based compensation | ||
Contractual life | 10 years |
Equity-Based Compensation - PSU
Equity-Based Compensation - PSU awards (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Performance share unit awards | |||
Number of units | |||
Total awarded and unvested at the beginning of the period (in shares) | 1,767,299 | ||
Granted (in shares) | 1,416,378 | ||
Vested (in shares) | (31,944) | ||
Forfeited (in shares) | (614,450) | ||
Total awarded and unvested at the end of the period (in shares) | 2,537,283 | 1,767,299 | |
Weighted average grant date fair value | |||
Total awarded and unvested at the beginning of the period (in dollars per share) | $ 26.36 | ||
Granted (in dollars per share) | 9.26 | $ 24.85 | |
Vested (in dollars per share) | 27.38 | ||
Forfeited (in dollars per share) | 26.61 | ||
Total awarded and unvested at the end of the period (in dollars per share) | $ 16.74 | $ 26.36 | |
Additional disclosures | |||
Additional equity compensation to be recognized over the remaining period | $ 20 | ||
Weighted average period for recognizing unrecognized stock-based compensation expense | 1 year 10 months 24 days | ||
Weighted-average assumptions used to calculate fair value of performance share units granted | |||
Volatility (as a percent) | 36.00% | 41.00% | |
Risk-free interest rate (as a percent) | 2.35% | 2.49% | |
Weighted average fair value of awards granted (in dollars per share) | $ 9.26 | $ 24.85 | |
Price target and TSR performance share unit awards | |||
Amortization period of PSU expense | 3 years | ||
Price target and TSR performance share unit awards | Minimum | |||
Number of PSUs that may be earned as compared to the number of PSUs granted, as a percent | 0.00% | ||
Price target and TSR performance share unit awards | Maximum | |||
Number of PSUs that may be earned as compared to the number of PSUs granted, as a percent | 200.00% | ||
Price target performance share unit awards | |||
Number of successive days closing stock price must achieve specific thresholds for PSUs to vest per schedule | 10 days | ||
Vesting period | 3 years | ||
Price target performance share unit awards | Vesting before first anniversary | Maximum | |||
Number of PSUs that may vest, as a percent | 0.00% | ||
Price target performance share unit awards | Vesting before the second anniversary | Maximum | |||
Number of PSUs that may vest, as a percent | 33.33% | ||
Price target performance share unit awards | Vesting before the third anniversary | Maximum | |||
Number of PSUs that may vest, as a percent | 66.67% | ||
TSR performance share unit awards | |||
Price target as a percentage of beginning price | 125.00% | ||
Vesting period | 3 years | ||
Amortization period of PSU expense | 3 years | ||
TSR performance share unit awards | Minimum | |||
Number of PSUs that may be earned as compared to the number of PSUs granted, as a percent | 0.00% | ||
TSR performance share unit awards | Maximum | |||
Number of PSUs that may be earned as compared to the number of PSUs granted, as a percent | 200.00% | ||
ROCE performance share unit awards | |||
Vesting period | 3 years | ||
Amortization period of PSU expense | 3 years | ||
ROCE performance share unit awards | Minimum | |||
Number of PSUs that may vest, as a percent | 0.00% | ||
ROCE performance share unit awards | Maximum | |||
Price target as a percentage of beginning price | 125.00% | ||
Number of PSUs that may vest, as a percent | 200.00% |
Equity-Based Compensation - Pha
Equity-Based Compensation - Phantom Unit Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 4 Months Ended | 9 Months Ended |
Mar. 12, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | |
Antero Midstream Partners Phantom Unit Awards | |||
Number of units | |||
Total awarded and unvested at the beginning of the period (in shares) | 583,000 | 564,781 | 583,000 |
Granted (in shares) | 5,972 | ||
Effect of conversion | 504,119 | ||
Vested (in shares) | (3,853) | (358,831) | |
Forfeited (in shares) | (20,338) | (45,803) | |
Total awarded and unvested at the end of the period (in shares) | 564,781 | 664,266 | |
Weighted average grant date fair value | |||
Total awarded and unvested at the beginning of the period (in dollars per share) | $ 27.63 | $ 27.59 | $ 27.63 |
Granted (in dollars per share) | 23.44 | ||
Effect of conversion (in dollars per share) | 14.58 | ||
Vested (in dollars per share) | 32.44 | 14.34 | |
Forfeited (in dollars per share) | 26.73 | 14.58 | |
Total awarded and unvested at the end of the period (in dollars per share) | $ 27.59 | $ 14.70 | |
Aggregate intrinsic value | |||
Outstanding at the beginning of the period | $ 12,470 | $ 13,476 | $ 12,470 |
Outstanding at the end of the period | $ 13,476 | $ 4,916 | |
Additional equity compensation to be recognized over the remaining period | $ 7,600 | ||
Weighted average period for recognizing unrecognized stock-based compensation expense | 1 year 10 months 24 days | ||
Restricted stock and restricted stock unit | |||
Number of units | |||
Total awarded and unvested at the beginning of the period (in shares) | 1,712,485 | 1,712,485 | |
Granted (in shares) | 1,610,690 | ||
Vested (in shares) | (718,192) | ||
Forfeited (in shares) | (307,938) | ||
Total awarded and unvested at the end of the period (in shares) | 2,297,045 | ||
Weighted average grant date fair value | |||
Total awarded and unvested at the beginning of the period (in dollars per share) | $ 24.57 | $ 24.57 | |
Granted (in dollars per share) | 8.60 | ||
Vested (in dollars per share) | 27.70 | ||
Forfeited (in dollars per share) | 16.56 | ||
Total awarded and unvested at the end of the period (in dollars per share) | $ 13.47 | ||
Aggregate intrinsic value | |||
Outstanding at the beginning of the period | $ 16,080 | $ 16,080 | |
Outstanding at the end of the period | 6,937 | ||
Additional equity compensation to be recognized over the remaining period | $ 25,000 | ||
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 7 months 6 days | ||
Antero Midstream Corporation | Midstream Plan | |||
Aggregate intrinsic value | |||
Conversion rate of units converted into restricted stock | 1.8926 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Billions | Sep. 30, 2019 | Dec. 31, 2018 |
Recurring | Level 2 market data | ||
Financial Instruments | ||
Fair value of senior notes | $ 3.1 | $ 3.9 |
Derivative Instruments - Commod
Derivative Instruments - Commodity derivatives (Details) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2019MMBTU / d$ / MMBTUbblgal | Sep. 30, 2019$ / gal | Sep. 30, 2019$ / MMBTU | Sep. 30, 2019$ / bbl | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivatives not designated as hedges for accounting purposes | NYMEX | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Ceiling | MMBTU / d | 1,575,000 | |||||
Floor | $ / MMBTU | 1,333,234 | |||||
Weighted average index price ceiling price | $ / MMBTU | 3.52 | |||||
Weighted average index price floor price | $ / MMBTU | 2.50 | |||||
Commodity derivative | ||||||
Derivative Instruments | ||||||
Gross amounts on balance sheet | $ | $ 838,795 | $ 658,830 | ||||
Commodity derivative | Derivatives not designated as hedges for accounting purposes | ||||||
Derivative Instruments | ||||||
Gross amounts on balance sheet | $ | 13,000 | |||||
Unamortized portion of premium | $ | $ 4,500 | |||||
Swaps | NYMEX | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / MMBTU | 3.23 | |||||
Swaps | NYMEX | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / MMBTU | 2.87 | |||||
Swaps | NYMEX | Year Ending December 31, 2021 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / MMBTU | 2.79 | |||||
Swaps | NYMEX | Year ending December 31, 2022 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / MMBTU | 2.96 | |||||
Swaps | NYMEX | Year ending December 31, 2023 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / MMBTU | 2.91 | |||||
Swaps | ARA Propane | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Weighted average index price | 0.81 | 0.68 | ||||
Swaps | ARA Propane | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Weighted average index price | 0.81 | 0.65 | ||||
Swaps | FEI Propane | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / gal | 0.50 | |||||
Swaps | FEI Propane | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / gal | 0.57 | |||||
Swaps | Mont Belvieu Propane Non-TET | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / gal | 0.59 | |||||
Swaps | Mont Belvieu Butane Non-TET | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / gal | 1.14 | |||||
Swaps | NYMEX-WTI | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / gal | 59.05 | |||||
Swaps | NYMEX-WTI | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Weighted average index price | $ / gal | 56.60 | |||||
Swaps | Natural gas | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount (MMBtu/day) | MMBTU / d | 996,766 | |||||
Swaps | Natural gas | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount (MMBtu/day) | MMBTU / d | 2,227,500 | |||||
Swaps | Natural gas | NYMEX | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount (MMBtu/day) | MMBTU / d | 996,766 | |||||
Swaps | Natural gas | NYMEX | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount (MMBtu/day) | MMBTU / d | 2,227,500 | |||||
Swaps | Natural gas | NYMEX | Year Ending December 31, 2021 | ||||||
Derivative Instruments | ||||||
Notional amount (MMBtu/day) | MMBTU / d | 2,110,000 | |||||
Swaps | Natural gas | NYMEX | Year ending December 31, 2022 | ||||||
Derivative Instruments | ||||||
Notional amount (MMBtu/day) | MMBTU / d | 290,000 | |||||
Swaps | Natural gas | NYMEX | Year ending December 31, 2023 | ||||||
Derivative Instruments | ||||||
Notional amount (MMBtu/day) | MMBTU / d | 90,000 | |||||
Swaps | Natural gas liquids | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | 35,422 | |||||
Swaps | Natural gas liquids | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount | 13,806 | |||||
Swaps | Natural gas liquids | ARA Propane | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | 10,113 | |||||
Swaps | Natural gas liquids | ARA Propane | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount | 9,761 | |||||
Swaps | Natural gas liquids | FEI Propane | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | 9,809 | |||||
Swaps | Natural gas liquids | FEI Propane | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount | 2,045 | |||||
Swaps | Natural gas liquids | Mont Belvieu Propane Non-TET | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | 8,000 | |||||
Swaps | Natural gas liquids | Mont Belvieu Butane Non-TET | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | 4,000 | |||||
Swaps | Natural gas liquids | Mont Belvieu Butane Non-TET | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount | 2,000 | |||||
Swaps | Natural gas liquids | Mont Belvieu Natural Gasoline Non-TET | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | 3,500 | |||||
Swaps | Oil | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | gal | 18,000 | |||||
Swaps | Oil | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount | gal | 12,000 | |||||
Swaps | Oil | NYMEX-WTI | Three months ending December 31, 2019 | ||||||
Derivative Instruments | ||||||
Notional amount | gal | 18,000 | |||||
Swaps | Oil | NYMEX-WTI | Year ending December 31, 2020 | ||||||
Derivative Instruments | ||||||
Notional amount | gal | 12,000 |
Derivative Instruments (Details
Derivative Instruments (Details) - 9 months ended Sep. 30, 2019 - Swaps | MMBTU / dbblgal | $ / gal | $ / MMBTU |
ARA to Mont Belvieu Non-TET | Three months ending December 31, 2019 | Hedged differential | |||
Derivative [Line Items] | |||
Weighted average hedged differential | $ / gal | 0.25 | ||
ARA to Mont Belvieu Non-TET | Year ending December 31, 2020 | Hedged differential | |||
Derivative [Line Items] | |||
Weighted average hedged differential | 0.23 | 0.353 | |
NYMEX to TCO | Year Ending December 31, 2021 | Hedged differential | |||
Derivative [Line Items] | |||
Weighted average hedged differential | $ / MMBTU | 0.414 | ||
NYMEX to TCO | Year ending December 31, 2022 | Hedged differential | |||
Derivative [Line Items] | |||
Weighted average hedged differential | $ / MMBTU | 0.515 | ||
NYMEX to TCO | Year ending December 31, 2023 | Hedged differential | |||
Derivative [Line Items] | |||
Weighted average hedged differential | $ / MMBTU | 0.525 | ||
NYMEX to TCO | Year ending December 31, 2024 | Hedged differential | |||
Derivative [Line Items] | |||
Weighted average hedged differential | $ / MMBTU | 0.530 | ||
Mont Belvieu Propane to NYMEX-WTI | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Weighted average payout ratio | 50 | ||
Mont Belvieu Propane to NYMEX-WTI | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Weighted average payout ratio | 50 | ||
Mont Belvieu Natural Gasoline to NYMEX-WTI | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Weighted average payout ratio | 81 | ||
Mont Belvieu Natural Gasoline to NYMEX-WTI | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Weighted average payout ratio | 79 | ||
Mont Belvieu Natural Gasoline to NYMEX-WTI | Year Ending December 31, 2021 | |||
Derivative [Line Items] | |||
Weighted average payout ratio | 78 | ||
Natural gas | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Notional amount (MMBtu/day) | MMBTU / d | 996,766 | ||
Natural gas | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount (MMBtu/day) | MMBTU / d | 2,227,500 | ||
Natural gas | NYMEX to TCO | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount (MMBtu/day) | MMBTU / d | 60,000 | ||
Natural gas | NYMEX to TCO | Year Ending December 31, 2021 | |||
Derivative [Line Items] | |||
Notional amount (MMBtu/day) | MMBTU / d | 40,000 | ||
Natural gas | NYMEX to TCO | Year ending December 31, 2022 | |||
Derivative [Line Items] | |||
Notional amount (MMBtu/day) | MMBTU / d | 60,000 | ||
Natural gas | NYMEX to TCO | Year ending December 31, 2023 | |||
Derivative [Line Items] | |||
Notional amount (MMBtu/day) | MMBTU / d | 50,000 | ||
Natural gas | NYMEX to TCO | Year ending December 31, 2024 | |||
Derivative [Line Items] | |||
Notional amount (MMBtu/day) | MMBTU / d | 50,000 | ||
Oil | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Notional amount | gal | 18,000 | ||
Oil | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount | gal | 12,000 | ||
Natural gas liquids | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Notional amount | 35,422 | ||
Natural gas liquids | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount | 13,806 | ||
Natural gas liquids | ARA to Mont Belvieu Non-TET | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Notional amount | 4,050 | ||
Natural gas liquids | ARA to Mont Belvieu Non-TET | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount | 4,273 | ||
Natural gas liquids | Mont Belvieu Index Price to WTI | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Notional amount | 14,400 | ||
Natural gas liquids | Mont Belvieu Index Price to WTI | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount | 15,500 | ||
Natural gas liquids | Mont Belvieu Propane to NYMEX-WTI | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Notional amount | 500 | ||
Natural gas liquids | Mont Belvieu Propane to NYMEX-WTI | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount | 500 | ||
Natural gas liquids | Mont Belvieu Natural Gasoline to NYMEX-WTI | Three months ending December 31, 2019 | |||
Derivative [Line Items] | |||
Notional amount | 13,900 | ||
Natural gas liquids | Mont Belvieu Natural Gasoline to NYMEX-WTI | Year ending December 31, 2020 | |||
Derivative [Line Items] | |||
Notional amount | 15,000 | ||
Natural gas liquids | Mont Belvieu Natural Gasoline to NYMEX-WTI | Year Ending December 31, 2021 | |||
Derivative [Line Items] | |||
Notional amount | 13,000 |
Derivative Instruments - Fair v
Derivative Instruments - Fair value (Details) $ in Thousands | Sep. 30, 2019USD ($)item | Dec. 31, 2018USD ($)item |
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | $ 411,774 | $ 245,263 |
Noncurrent portion of fair value of derivative assets | 405,180 | 362,169 |
Current portion of fair value of derivative liabilities | 532 | |
Commodity derivative | ||
Fair value of derivative instruments | ||
Total asset derivatives | 816,954 | 607,432 |
Total liability derivatives | 532 | |
Derivatives not designated as hedges for accounting purposes | ||
Fair value of derivative instruments | ||
Total asset derivatives | 816,954 | 607,432 |
Total liability derivatives | 532 | |
Net derivatives | 816,954 | 606,900 |
Derivatives not designated as hedges for accounting purposes | Commodity derivative | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | 411,774 | 245,263 |
Noncurrent portion of fair value of derivative assets | $ 405,180 | 362,169 |
Current portion of fair value of derivative liabilities | $ 532 | |
Derivatives designated as hedges for accounting purposes | ||
Fair value of derivative instruments | ||
Number of derivative instruments held designated as hedges | item | 0 | 0 |
Derivative Instruments - Assets
Derivative Instruments - Assets and liabilities (Details) - Commodity derivative - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commodity derivative assets | ||
Gross amounts on balance sheet | $ 838,795 | $ 658,830 |
Gross amounts offset on balance sheet | (21,841) | (51,398) |
Total asset derivatives | 816,954 | 607,432 |
Commodity derivative liabilities | ||
Gross amounts on balance sheet | (21,841) | (51,930) |
Gross amounts offset on balance sheet | $ 21,841 | 51,398 |
Total liability derivatives | $ (532) |
Derivative Instruments - Fair_2
Derivative Instruments - Fair value gains (losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Commodity derivative fair value gains | $ 220,788 | $ 57,019 | $ 471,847 | $ 134,793 |
Marketing derivative fair value gains (losses) | 0 | (42) | 0 | 94,081 |
Revenue | ||||
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Commodity derivative fair value gains | $ 220,788 | 57,019 | $ 471,847 | 134,793 |
Marketing derivative fair value gains (losses) | (42) | $ 94,081 | ||
Maximum | ||||
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Marketing derivative fair value gains (losses) | $ 1,000 |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Options to renew - Operating lease | true |
Options to renew - Finance lease | true |
Minimum | |
Leases | |
Renewal terms - Operating lease | 1 year |
Renewal terms - Finance lease | 1 year |
Maximum | |
Leases | |
Renewal terms - Operating lease | 20 years |
Renewal terms - Finance lease | 20 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lease Assets | |
Operating leases right-of-use assets | $ 3,230,148 |
Finance leases, right of use assets | 3,039 |
Finance leases, accumulated amortization | 9,000 |
Short-term lease liabilities, operating leases | 408,814 |
Long-term lease liabilities, operating leases | 2,821,334 |
Total lease liabilities, operating leases | 3,230,148 |
Short-term lease liabilities, finance leases | 1,176 |
Long-term lease liabilities, finance leases | 1,863 |
Total | 3,039 |
Vehicles | |
Lease Assets | |
Operating leases right-of-use assets | 4,971 |
Finance leases, right of use assets | 2,591 |
Other office and field equipment | |
Lease Assets | |
Operating leases right-of-use assets | 299 |
Finance leases, right of use assets | 448 |
Processing plants | |
Lease Assets | |
Operating leases right-of-use assets | 1,554,601 |
Drilling and completion rigs | |
Lease Assets | |
Operating leases right-of-use assets | 93,846 |
Gas gathering lines and compressor stations | |
Lease Assets | |
Operating leases right-of-use assets | 1,535,146 |
Gas gathering lines and compressor stations | Antero Midstream Corporation | |
Lease Assets | |
Finance leases, accumulated amortization | 1,300,000 |
Office space | |
Lease Assets | |
Operating leases right-of-use assets | $ 41,285 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases | ||
Total Lease Expense | $ 240,477 | $ 663,094 |
Capitalized operating leases | 53,000 | 161,000 |
Short-term lease costs | 115,000 | |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash out flows related to operating leases | 234,399 | 591,963 |
Cash paid for amounts included in the measurement of lease liabilities: Investing cash out flows related to operating leases | 47,417 | 146,315 |
Cash paid for amounts included in the measurement of lease liabilities for operating leases | 281,816 | 738,278 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash out flows related to financing leases | 303 | 1,967 |
Cash paid for amounts included in the measurement of lease liabilities for finance leases | 303 | 1,967 |
Leased assets obtained in exchange for new operating lease liabilities | 3,345,549 | |
Gathering, compression, water handling and treatment | ||
Leases | ||
Total Lease Expense | 237,618 | 644,007 |
General and administrative | ||
Leases | ||
Total Lease Expense | 2,859 | 8,395 |
Contract termination and rig stacking | ||
Leases | ||
Total Lease Expense | 10,692 | |
Maximum | ||
Leases | ||
Finance leases, interest expense | 1,000 | 1,000 |
Capitalized finance leases | $ 1,000 | $ 1,000 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Future minimum payments for operating lease liabilities | |
Remainder of 2019 | $ 151,345 |
2020 | 578,615 |
2021 | 506,402 |
2022 | 495,694 |
2023 | 491,513 |
2024 | 482,745 |
Thereafter | 1,447,537 |
Total lease payments | 4,153,851 |
Less: imputed interest | (923,703) |
Total lease liabilities, operating leases | 3,230,148 |
Future minimum payments for financing lease liabilities | |
Remainder of 2019 | 21 |
2020 | 523 |
2021 | 1,152 |
2022 | 1,298 |
2023 | 45 |
Total lease payments | 3,039 |
Total | 3,039 |
Future minimum payments for total lease liabilities | |
Remainder of 2019 | 151,366 |
2020 | 579,138 |
2021 | 507,554 |
2022 | 496,992 |
2023 | 491,558 |
2024 | 482,745 |
Thereafter | 1,447,537 |
Total lease payments | 4,156,890 |
Less: imputed interest | (923,703) |
Total | $ 3,233,187 |
Leases - Office and equipment l
Leases - Office and equipment leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Office and Equipment Leases | |
Office and equipment leases: | |
2019 | $ 14,672 |
2020 | 12,988 |
2021 | 10,860 |
2022 | 8,701 |
2023 | 7,495 |
Thereafter | 49,367 |
Total | 104,083 |
Office Leases | |
Office and equipment leases: | |
2019 | 8,630 |
2020 | 8,471 |
2021 | 8,450 |
2022 | 8,427 |
2023 | 7,495 |
Thereafter | 49,367 |
Total | 90,840 |
Equipment Leases | |
Office and equipment leases: | |
2019 | 6,042 |
2020 | 4,517 |
2021 | 2,410 |
2022 | 274 |
Total | $ 13,243 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Leases | |
Weighted-average remaining lease term: Operating lease | 8 years 4 months 24 days |
Weighted-average discount rate: Operating lease | 6.10% |
Weighted-average remaining lease term: Finance lease | 2 years 1 month 6 days |
Weighted-average discount rate: Finance lease | 5.70% |
Leases - Related party disclosu
Leases - Related party disclosure (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases | ||
Amount included within accounts payable, related parties | $ 100,437 | $ 100,437 |
Antero Midstream Corporation | ||
Leases | ||
Utilizing capacity (as a percent) | 75.00% | |
Payment of capacity (as a percent) | 70.00% | |
Term of lease | 10 years | 10 years |
Gathering and compression fees paid | $ 171,000 | $ 486,000 |
Amount included within accounts payable, related parties | $ 60,000 | $ 60,000 |
Commitments (Details)
Commitments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Future minimum payments | |
Remainder of 2019 | $ 452,257 |
2020 | 1,762,902 |
2021 | 1,664,903 |
2022 | 1,598,019 |
2023 | 1,584,764 |
2024 | 1,535,966 |
Thereafter | 9,416,654 |
Total | 18,015,465 |
Firm transportation | |
Future minimum payments | |
Remainder of 2019 | 282,571 |
2020 | 1,123,782 |
2021 | 1,100,079 |
2022 | 1,047,162 |
2023 | 1,034,641 |
2024 | 994,534 |
Thereafter | 7,816,594 |
Total | 13,399,363 |
Gas processing, gathering and compression | |
Future minimum payments | |
Remainder of 2019 | 13,667 |
2020 | 54,425 |
2021 | 54,093 |
2022 | 53,606 |
2023 | 58,565 |
2024 | 58,687 |
Thereafter | 152,523 |
Total | 445,566 |
Land payment obligations | |
Future minimum payments | |
Remainder of 2019 | 4,653 |
2020 | 5,557 |
2021 | 3,177 |
2022 | 259 |
Total | 13,646 |
Operating and Financing Leases | |
Future minimum payments | |
Remainder of 2019 | 102,808 |
2020 | 399,881 |
2021 | 350,364 |
2022 | 361,057 |
2023 | 377,836 |
2024 | 392,323 |
Thereafter | 1,248,918 |
Total | 3,233,187 |
Imputed Interest for Leases | |
Future minimum payments | |
Remainder of 2019 | 48,558 |
2020 | 179,257 |
2021 | 157,190 |
2022 | 135,935 |
2023 | 113,722 |
2024 | 90,422 |
Thereafter | 198,619 |
Total | $ 923,703 |
Contingencies (Details)
Contingencies (Details) | Jun. 20, 2019USD ($) | Feb. 01, 2018MMBTU / d | Jan. 01, 2018MMBTU / d | Oct. 29, 2019USD ($) | Jul. 31, 2017MMBTU / d | Jan. 31, 2018MMBTU / d | Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Oct. 29, 2019USD ($) | Nov. 30, 2017MMBTU / d | Sep. 30, 2019USD ($)MMBTU / dcontract | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2018MMBTU / d | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Contingencies | |||||||||||||||||
Revenues from contracts with customers | $ 896,612,000 | $ 1,019,555,000 | $ 2,980,757,000 | $ 2,865,104,000 | |||||||||||||
Production and ad valorem taxes | 28,863,000 | 30,518,000 | 95,509,000 | 82,232,000 | |||||||||||||
Interest | (47,754,000) | (74,528,000) | (173,868,000) | (208,303,000) | |||||||||||||
Accrued revenue | 281,177,000 | 281,177,000 | $ 474,827,000 | ||||||||||||||
Accounts receivable | 29,207,000 | 29,207,000 | $ 51,073,000 | ||||||||||||||
Natural gas sales | |||||||||||||||||
Contingencies | |||||||||||||||||
Revenues from contracts with customers | 524,448,000 | $ 527,122,000 | $ 1,735,086,000 | $ 1,498,324,000 | |||||||||||||
Doddridge County, Tyler County and Ritchie County, West Virginia | Minimum | |||||||||||||||||
Contingencies | |||||||||||||||||
Settlement amount | $ 100,000 | ||||||||||||||||
SJGC | |||||||||||||||||
Contingencies | |||||||||||||||||
Natural gas long term purchase contract volume (in MMBtu)/day | MMBTU / d | 80,000 | ||||||||||||||||
SJGC | Settled Litigation | |||||||||||||||||
Contingencies | |||||||||||||||||
Settlement amount received | $ 23,000,000 | 59,000,000 | $ 82,000,000 | ||||||||||||||
Production and ad valorem taxes | 3,000,000 | $ 3,000,000 | |||||||||||||||
Interest | 8,000,000 | 8,000,000 | |||||||||||||||
Accrued revenue | 23,000,000 | 23,000,000 | |||||||||||||||
SJGC | Settled Litigation | Natural gas sales | |||||||||||||||||
Contingencies | |||||||||||||||||
Revenues from contracts with customers | $ 54,000,000 | $ 54,000,000 | |||||||||||||||
WGL | |||||||||||||||||
Contingencies | |||||||||||||||||
Natural gas long term purchase contract volume increase after specified events (in MMBtu)/day | MMBTU / d | 530,000 | ||||||||||||||||
Damages awarded | $ 96,000,000 | ||||||||||||||||
WGL | Pending Litigation | |||||||||||||||||
Contingencies | |||||||||||||||||
Damages sought | $ 40,000,000 | ||||||||||||||||
WGL | Pending Litigation | Minimum | |||||||||||||||||
Contingencies | |||||||||||||||||
Damages sought | $ 30,000,000 | ||||||||||||||||
WGL - Braxton, West Virginia | |||||||||||||||||
Contingencies | |||||||||||||||||
Natural gas long term purchase contract volume (in MMBtu)/day | MMBTU / d | 200,000 | 500,000 | |||||||||||||||
WGL - Loudoun County, Virginia | |||||||||||||||||
Contingencies | |||||||||||||||||
Natural gas long term purchase contract volume increase after specified events (in MMBtu)/day | MMBTU / d | 330,000 | ||||||||||||||||
Potential Positive Outcome of Litigation | SJGC | |||||||||||||||||
Contingencies | |||||||||||||||||
Number of long term gas contracts | contract | 2 | 2 | |||||||||||||||
Potential Positive Outcome of Litigation | WGL | |||||||||||||||||
Contingencies | |||||||||||||||||
Natural gas long term purchase contract volume (in MMBtu)/day | MMBTU / d | 500,000 | 500,000 | 600,000 |
Contract Termination and Rig _2
Contract Termination and Rig Stacking (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Costs for delay or cancelation of drilling and completion contracts with third-party contractors | $ 62 | $ 14,026 |
Maximum | ||
Costs for delay or cancelation of drilling and completion contracts with third-party contractors | $ 1,000 | $ 14,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Sales and revenues: | |||||
Sales and revenues | $ 1,117,400 | $ 1,076,532 | $ 3,448,175 | $ 3,093,978 | |
Sales and revenues | 1,118,881 | 1,076,532 | 3,455,952 | 3,093,978 | |
Operating expenses: | |||||
Impairment of oil and gas properties | 1,041,469 | 221,094 | 1,253,712 | 406,068 | |
Impairment of midstream assets | 7,800 | 1,157 | 14,782 | 9,658 | |
Depletion, depreciation, and amortization | 241,503 | 243,186 | 724,006 | 709,480 | |
General and administrative | 35,923 | 59,860 | 146,507 | 181,576 | |
Other operating expenses | 138,276 | 183,658 | 522,794 | 649,279 | |
Total operating expenses | 2,104,759 | 1,071,728 | 4,375,541 | 2,975,444 | |
Operating income (loss) | (985,878) | 4,804 | (919,589) | 118,534 | |
Equity in earnings (loss) of unconsolidated affiliates | (117,859) | 10,705 | (90,193) | 27,832 | |
Investments in unconsolidated affiliates | 1,819,323 | 1,819,323 | $ 433,642 | ||
Segment assets | 16,120,288 | 15,802,535 | 16,120,288 | 15,802,535 | $ 15,519,464 |
Capital expenditures for segment assets | 292,176 | 567,221 | 1,106,362 | 1,676,245 | |
Marketing | |||||
Sales and revenues: | |||||
Sales and revenues | 200,911 | ||||
Operating expenses: | |||||
Other operating expenses | 408,839 | ||||
Total operating expenses | 408,839 | ||||
Operating income (loss) | (207,928) | ||||
Segment assets | 25,361 | 25,361 | |||
Antero Midstream Corporation | |||||
Sales and revenues: | |||||
Sales and revenues | 50 | ||||
Operating expenses: | |||||
Impairment of midstream assets | 472,854 | ||||
Depletion, depreciation, and amortization | 68,557 | ||||
General and administrative | 85,026 | ||||
Other operating expenses | 8,005 | ||||
Total operating expenses | 774,193 | ||||
Operating income (loss) | (220,672) | ||||
Equity in earnings (loss) of unconsolidated affiliates | 34,981 | ||||
Investments in unconsolidated affiliates | 672,310 | 672,310 | |||
Segment assets | 6,445,504 | 6,445,504 | |||
Capital expenditures for segment assets | 262,065 | ||||
Operating segments | |||||
Sales and revenues: | |||||
Sales and revenues | 3,093,978 | ||||
Operating segments | Exploration and production | |||||
Sales and revenues: | |||||
Sales and revenues | 1,070,755 | 982,131 | 3,247,214 | 2,590,409 | |
Sales and revenues | 1,072,236 | 987,328 | 3,252,213 | 2,606,660 | |
Operating expenses: | |||||
Impairment of oil and gas properties | 1,041,469 | 221,094 | 1,253,712 | 406,068 | |
Depletion, depreciation, and amortization | 241,503 | 204,465 | 702,299 | 601,446 | |
General and administrative | 35,923 | 45,474 | 128,213 | 138,555 | |
Other operating expenses | 30,060 | 30,695 | 112,952 | 85,067 | |
Total operating expenses | 1,988,743 | 979,454 | 4,022,639 | 2,566,489 | |
Operating income (loss) | (916,507) | 7,874 | (770,426) | 40,171 | |
Equity in earnings (loss) of unconsolidated affiliates | (117,859) | (102,457) | |||
Investments in unconsolidated affiliates | 1,819,323 | 1,819,323 | |||
Segment assets | 16,094,927 | 13,484,457 | 16,094,927 | 13,484,457 | |
Capital expenditures for segment assets | 292,176 | 485,219 | 1,053,210 | 1,464,041 | |
Operating segments | Marketing | |||||
Sales and revenues: | |||||
Sales and revenues | 46,645 | 89,556 | 488,270 | ||
Sales and revenues | 46,645 | 89,556 | 200,911 | 488,270 | |
Operating expenses: | |||||
Other operating expenses | 108,216 | 151,764 | 560,924 | ||
Total operating expenses | 108,216 | 151,764 | 560,924 | ||
Operating income (loss) | (61,571) | (62,208) | (72,654) | ||
Segment assets | 25,361 | 20,481 | 25,361 | 20,481 | |
Operating segments | Antero Midstream Corporation | |||||
Sales and revenues: | |||||
Sales and revenues | 4,845 | 15,299 | |||
Sales and revenues | 243,795 | 266,205 | 553,521 | 746,772 | |
Operating expenses: | |||||
Impairment of midstream assets | 465,278 | 1,157 | 9,658 | ||
Depletion, depreciation, and amortization | 24,460 | 38,721 | 108,034 | ||
General and administrative | 30,595 | 15,018 | 44,967 | ||
Other operating expenses | 3,210 | 5,219 | 15,129 | ||
Total operating expenses | 585,684 | 140,424 | 398,955 | ||
Operating income (loss) | (341,889) | 125,781 | 347,817 | ||
Equity in earnings (loss) of unconsolidated affiliates | 18,478 | 10,705 | 27,832 | ||
Investments in unconsolidated affiliates | 672,310 | 672,310 | |||
Segment assets | 6,445,504 | 3,411,496 | 6,445,504 | 3,411,496 | |
Capital expenditures for segment assets | 120,875 | 149,953 | 414,833 | ||
Elimination of intersegment transaction | |||||
Sales and revenues: | |||||
Sales and revenues | 1,481 | (266,557) | 7,777 | (747,724) | |
Sales and revenues | (243,795) | (266,557) | (550,693) | (747,724) | |
Operating expenses: | |||||
Impairment of midstream assets | (457,478) | (458,072) | |||
Depletion, depreciation, and amortization | (24,460) | (46,850) | |||
General and administrative | (30,595) | (632) | (66,732) | (1,946) | |
Other operating expenses | (3,210) | (4,020) | (7,002) | (11,841) | |
Total operating expenses | (577,884) | (199,914) | (830,130) | (550,924) | |
Operating income (loss) | 334,089 | (66,643) | 279,437 | (196,800) | |
Equity in earnings (loss) of unconsolidated affiliates | (18,478) | (22,717) | |||
Investments in unconsolidated affiliates | (672,310) | (672,310) | |||
Segment assets | (6,445,504) | (1,113,899) | (6,445,504) | (1,113,899) | |
Capital expenditures for segment assets | (120,875) | (67,951) | (208,913) | (202,629) | |
Elimination of intersegment transaction | Exploration and production | |||||
Sales and revenues: | |||||
Sales and revenues | 1,481 | 5,197 | 4,999 | 16,251 | |
Elimination of intersegment transaction | Antero Midstream Corporation | |||||
Sales and revenues: | |||||
Sales and revenues | 243,795 | 261,360 | 553,471 | 731,473 | |
Gathering, compression, water handling and treatment | |||||
Operating expenses: | |||||
Cost of goods and services sold | 603,860 | 326,504 | 1,595,223 | 926,228 | |
Gathering, compression, water handling and treatment | Antero Midstream Corporation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 28,324 | ||||
Gathering, compression, water handling and treatment | Operating segments | Exploration and production | |||||
Operating expenses: | |||||
Cost of goods and services sold | 603,860 | 442,602 | 1,705,709 | 1,236,655 | |
Gathering, compression, water handling and treatment | Operating segments | Antero Midstream Corporation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 13,091 | 12,701 | 36,469 | ||
Gathering, compression, water handling and treatment | Elimination of intersegment transaction | |||||
Operating expenses: | |||||
Cost of goods and services sold | (13,091) | (128,799) | (138,810) | (346,896) | |
Lease operating | |||||
Operating expenses: | |||||
Cost of goods and services sold | 35,928 | 36,269 | 118,517 | 93,155 | |
Lease operating | Antero Midstream Corporation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 111,427 | ||||
Lease operating | Operating segments | Exploration and production | |||||
Operating expenses: | |||||
Cost of goods and services sold | 35,928 | 35,124 | 119,754 | 98,698 | |
Lease operating | Operating segments | Antero Midstream Corporation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 49,050 | 67,608 | 184,698 | ||
Lease operating | Elimination of intersegment transaction | |||||
Operating expenses: | |||||
Cost of goods and services sold | $ (49,050) | $ (66,463) | $ (112,664) | $ (190,241) |
Subsidiary Guarantors - Balance
Subsidiary Guarantors - Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||||||
Accounts receivable, net | $ 29,207 | $ 51,073 | ||||||
Accrued revenue | 281,177 | 474,827 | ||||||
Derivative instruments | 411,774 | 245,263 | ||||||
Other current assets | 7,342 | 35,450 | ||||||
Total current assets | 729,500 | 806,613 | ||||||
Unproved properties | 1,406,464 | 1,767,600 | ||||||
Proved properties | 11,568,285 | 12,705,672 | ||||||
Water handling and treatment systems | 1,013,818 | |||||||
Gathering systems and facilities | 5,802 | 2,470,708 | ||||||
Other property and equipment | 70,965 | 65,842 | ||||||
Property and equipment, gross | 13,051,516 | 18,023,640 | ||||||
Less accumulated depletion, depreciation, and amortization | (3,136,767) | (4,153,725) | ||||||
Property and equipment, net | 9,914,749 | 13,869,915 | ||||||
Operating leases right-of-use assets | 3,230,148 | |||||||
Derivative instruments | 405,180 | 362,169 | ||||||
Investment in consolidated affiliates | 1,819,323 | 433,642 | ||||||
Investments in unconsolidated affiliates | 1,819,323 | 433,642 | ||||||
Other assets | 21,388 | 47,125 | ||||||
Total assets | 16,120,288 | 15,519,464 | $ 15,802,535 | |||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | 32,496 | 66,289 | ||||||
Accounts payable, related parties | 100,437 | |||||||
Accrued liabilities | 392,726 | 465,070 | ||||||
Revenue distributions payable | 231,152 | 310,827 | ||||||
Derivative instruments | 532 | |||||||
Short-term lease liabilities | 409,990 | 2,459 | ||||||
Other current liabilities | 4,367 | 8,363 | ||||||
Total current liabilities | 1,171,168 | 853,540 | ||||||
Long-term debt | 3,703,828 | 5,461,688 | ||||||
Deferred income tax liability | 916,031 | 650,788 | ||||||
Long-term lease liabilities | 2,823,197 | 2,873 | ||||||
Other liabilities | 59,366 | 63,098 | ||||||
Total liabilities | 8,673,590 | 7,031,987 | ||||||
Common stock | 3,041 | 3,086 | ||||||
Additional paid-in capital | 6,124,042 | 6,485,174 | ||||||
Accumulated earnings | 1,319,615 | 1,177,548 | ||||||
Total stockholders' equity | 7,446,698 | 7,665,808 | ||||||
Noncontrolling interests in consolidated subsidiary | 821,669 | |||||||
Total equity | 7,446,698 | $ 8,339,700 | $ 8,292,798 | 8,487,477 | $ 8,671,152 | $ 8,802,911 | $ 8,921,098 | $ 8,876,136 |
Total liabilities and equity | 16,120,288 | 15,519,464 | ||||||
Reportable legal entity | ||||||||
Liabilities and Stockholders' Equity | ||||||||
Long-term debt | 3,703,828 | 3,829,541 | ||||||
Reportable legal entity | Parent (Antero) | ||||||||
Current assets: | ||||||||
Accounts receivable, net | 29,207 | 49,529 | ||||||
Intercompany receivables | 383 | |||||||
Accrued revenue | 281,177 | 474,827 | ||||||
Derivative instruments | 411,774 | 245,263 | ||||||
Other current assets | 7,342 | 13,937 | ||||||
Total current assets | 729,500 | 783,939 | ||||||
Unproved properties | 1,406,464 | 1,767,600 | ||||||
Proved properties | 11,568,285 | 13,306,585 | ||||||
Gathering systems and facilities | 5,802 | 17,825 | ||||||
Other property and equipment | 70,965 | 65,770 | ||||||
Property and equipment, gross | 13,051,516 | 15,157,780 | ||||||
Less accumulated depletion, depreciation, and amortization | (3,136,767) | (3,654,392) | ||||||
Property and equipment, net | 9,914,749 | 11,503,388 | ||||||
Operating leases right-of-use assets | 3,230,148 | |||||||
Derivative instruments | 405,180 | 362,169 | ||||||
Investment in consolidated affiliates | 1,337,849 | (740,031) | ||||||
Contingent acquisition consideration | 114,995 | |||||||
Investments in unconsolidated affiliates | 481,474 | |||||||
Other assets | 21,388 | 31,200 | ||||||
Total assets | 16,120,288 | 12,055,660 | ||||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | 32,496 | 44,917 | ||||||
Accounts payable, related parties | 300,774 | |||||||
Intercompany payable | 111,620 | |||||||
Accrued liabilities | 392,726 | 392,949 | ||||||
Revenue distributions payable | 231,152 | 310,827 | ||||||
Derivative instruments | 532 | |||||||
Short-term lease liabilities | 409,990 | 2,459 | ||||||
Other current liabilities | 4,367 | 2,162 | ||||||
Total current liabilities | 1,371,505 | 865,466 | ||||||
Long-term debt | 3,703,828 | 3,829,541 | ||||||
Deferred income tax liability | 916,031 | 650,788 | ||||||
Long-term lease liabilities | 2,823,197 | 2,873 | ||||||
Other liabilities | 59,366 | 55,017 | ||||||
Total liabilities | 8,873,927 | 5,403,685 | ||||||
Common stock | 3,041 | 3,086 | ||||||
Additional paid-in capital | 6,124,042 | 5,471,341 | ||||||
Accumulated earnings | 1,119,278 | 1,177,548 | ||||||
Total stockholders' equity | 6,651,975 | |||||||
Total equity | 7,246,361 | 6,651,975 | ||||||
Total liabilities and equity | 16,120,288 | 12,055,660 | ||||||
Reportable legal entity | Guarantor Subsidiaries | ||||||||
Current assets: | ||||||||
Intercompany receivables | 131,135 | |||||||
Total current assets | 131,135 | |||||||
Investments in unconsolidated affiliates | 1,337,849 | |||||||
Total assets | 1,468,984 | |||||||
Liabilities and Stockholders' Equity | ||||||||
Additional paid-in capital | 1,337,849 | |||||||
Accumulated earnings | 131,135 | |||||||
Total equity | 1,468,984 | |||||||
Total liabilities and equity | 1,468,984 | |||||||
Reportable legal entity | Non-Guarantor Subsidiaries | ||||||||
Current assets: | ||||||||
Accounts receivable, net | 1,544 | |||||||
Intercompany receivables | 115,378 | |||||||
Other current assets | 21,513 | |||||||
Total current assets | 138,435 | |||||||
Water handling and treatment systems | 1,004,793 | |||||||
Gathering systems and facilities | 2,452,883 | |||||||
Other property and equipment | 72 | |||||||
Property and equipment, gross | 3,457,748 | |||||||
Less accumulated depletion, depreciation, and amortization | (499,333) | |||||||
Property and equipment, net | 2,958,415 | |||||||
Investments in unconsolidated affiliates | 433,642 | |||||||
Other assets | 15,925 | |||||||
Total assets | 3,546,417 | |||||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | 21,372 | |||||||
Intercompany payable | 4,141 | |||||||
Accrued liabilities | 72,121 | |||||||
Other current liabilities | 2,052 | |||||||
Total current liabilities | 99,686 | |||||||
Long-term debt | 1,632,147 | |||||||
Contingent acquisition consideration | 114,995 | |||||||
Other liabilities | 8,081 | |||||||
Total liabilities | 1,854,909 | |||||||
Partners' capital | 1,691,508 | |||||||
Total stockholders' equity | 1,691,508 | |||||||
Total equity | 1,691,508 | |||||||
Total liabilities and equity | 3,546,417 | |||||||
Eliminations | ||||||||
Current assets: | ||||||||
Intercompany receivables | (131,135) | (115,761) | ||||||
Total current assets | (131,135) | (115,761) | ||||||
Proved properties | (600,913) | |||||||
Water handling and treatment systems | 9,025 | |||||||
Property and equipment, gross | (591,888) | |||||||
Property and equipment, net | (591,888) | |||||||
Investment in consolidated affiliates | (1,337,849) | 740,031 | ||||||
Contingent acquisition consideration | (114,995) | |||||||
Total assets | (1,468,984) | (82,613) | ||||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable, related parties | (200,337) | |||||||
Intercompany payable | (115,761) | |||||||
Other current liabilities | 4,149 | |||||||
Total current liabilities | (200,337) | (111,612) | ||||||
Contingent acquisition consideration | (114,995) | |||||||
Total liabilities | (200,337) | (226,607) | ||||||
Partners' capital | (1,691,508) | |||||||
Additional paid-in capital | (1,337,849) | 1,013,833 | ||||||
Accumulated earnings | 69,202 | |||||||
Total stockholders' equity | (677,675) | |||||||
Noncontrolling interests in consolidated subsidiary | 821,669 | |||||||
Total equity | (1,268,647) | 143,994 | ||||||
Total liabilities and equity | $ (1,468,984) | $ (82,613) |
Subsidiary Guarantors - Stateme
Subsidiary Guarantors - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue and other: | ||||||||
Revenues from contracts with customers | $ 896,612 | $ 1,019,555 | $ 2,980,757 | $ 2,865,104 | ||||
Commodity derivative fair value gains | 220,788 | 57,019 | 471,847 | 134,793 | ||||
Marketing derivative fair value gains (losses) | 0 | (42) | 0 | 94,081 | ||||
Loss on sale of assets | 951 | |||||||
Total revenue | 1,118,881 | 1,076,532 | 3,455,952 | 3,093,978 | ||||
Operating expenses: | ||||||||
Production and ad valorem taxes | 28,863 | 30,518 | 95,509 | 82,232 | ||||
Impairment of oil and gas properties | 1,041,469 | 221,094 | 1,253,712 | 406,068 | ||||
Impairment of midstream assets | 7,800 | 1,157 | 14,782 | 9,658 | ||||
Depletion, depreciation, and amortization | 241,503 | 243,186 | 724,006 | 709,480 | ||||
Accretion of asset retirement obligations | 927 | 710 | 2,821 | 2,101 | ||||
General and administrative | 35,923 | 59,860 | 146,507 | 181,576 | ||||
Contract termination and rig stacking | 62 | 14,026 | ||||||
Total operating expenses | 2,104,759 | 1,071,728 | 4,375,541 | 2,975,444 | ||||
Operating income (loss) | (985,878) | 4,804 | (919,589) | 118,534 | ||||
Equity in earnings (loss) of unconsolidated affiliates | (117,859) | 10,705 | (90,193) | 27,832 | ||||
Interest expense, net | (47,754) | (74,528) | (173,868) | (208,303) | ||||
Gain on deconsolidation of Antero Midstream Partners LP | 1,406,042 | |||||||
Total other income (expenses) | (165,613) | (63,823) | 1,141,981 | (180,471) | ||||
Income (loss) before income taxes | (1,151,491) | (59,019) | 222,392 | (61,937) | ||||
Provision for income tax (expense) benefit | 272,627 | (18,953) | (33,332) | (2,500) | ||||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (878,864) | $ 42,168 | $ 1,025,756 | (77,972) | $ (67,275) | $ 80,810 | 189,060 | (64,437) |
Net income and comprehensive income attributable to noncontrolling interests | 76,447 | 46,993 | 211,534 | |||||
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | (878,864) | (154,419) | 142,067 | (275,971) | ||||
Natural gas sales | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 524,448 | 527,122 | 1,735,086 | 1,498,324 | ||||
Natural gas liquids sales | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 284,958 | 338,269 | 902,606 | 828,424 | ||||
Oil sales | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 40,561 | 59,722 | 137,675 | 128,869 | ||||
Gathering, compression, water handling and treatment | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 4,844 | 4,479 | 15,298 | |||||
Operating expenses: | ||||||||
Cost of goods and services sold | 603,860 | 326,504 | 1,595,223 | 926,228 | ||||
Marketing | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 46,645 | 89,598 | 200,911 | 394,189 | ||||
Operating expenses: | ||||||||
Cost of goods and services sold | 108,216 | 151,764 | 408,839 | 560,924 | ||||
Exploration | ||||||||
Operating expenses: | ||||||||
Cost of goods and services sold | 208 | 666 | 648 | 4,022 | ||||
Lease operating | ||||||||
Operating expenses: | ||||||||
Cost of goods and services sold | 35,928 | 36,269 | 118,517 | 93,155 | ||||
Other income | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 1,481 | 3,348 | ||||||
Reportable legal entity | Parent (Antero) | ||||||||
Revenue and other: | ||||||||
Commodity derivative fair value gains | 220,788 | 57,019 | 471,847 | 134,793 | ||||
Marketing derivative fair value gains (losses) | (42) | 94,081 | ||||||
Loss on sale of assets | 951 | |||||||
Total revenue | 1,118,881 | 1,077,015 | 3,453,124 | 3,095,061 | ||||
Operating expenses: | ||||||||
Production and ad valorem taxes | 28,863 | 29,352 | 94,569 | 79,045 | ||||
Impairment of oil and gas properties | 1,041,469 | 221,094 | 1,253,712 | 406,068 | ||||
Impairment of midstream assets | 7,800 | 7,800 | 4,470 | |||||
Depletion, depreciation, and amortization | 241,503 | 204,730 | 702,299 | 602,159 | ||||
Accretion of asset retirement obligations | 927 | 677 | 2,758 | 2,000 | ||||
General and administrative | 35,923 | 45,477 | 128,213 | 138,555 | ||||
Contract termination and rig stacking | 62 | 14,026 | ||||||
Accretion of contingent acquisition consideration | (11,841) | |||||||
Total operating expenses | 2,104,759 | 1,131,486 | 4,439,278 | 3,132,596 | ||||
Operating income (loss) | (985,878) | (54,471) | (986,154) | (37,535) | ||||
Equity in earnings (loss) of unconsolidated affiliates | (38,255) | (33,255) | ||||||
Interest expense, net | (47,754) | (57,632) | (157,053) | (165,519) | ||||
Equity in earnings (loss) of consolidated subsidiaries | (23,363) | 15,021 | (70,417) | |||||
Gain on deconsolidation of Antero Midstream Partners LP | 1,205,705 | |||||||
Total other income (expenses) | (86,009) | (80,995) | 1,030,418 | (235,936) | ||||
Income (loss) before income taxes | (1,071,887) | (135,466) | 44,264 | (273,471) | ||||
Provision for income tax (expense) benefit | 272,627 | (18,953) | (33,332) | (2,500) | ||||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (154,419) | 10,932 | (275,971) | |||||
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | (799,260) | (154,419) | 10,932 | (275,971) | ||||
Reportable legal entity | Parent (Antero) | Natural gas sales | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 524,448 | 527,122 | 1,735,086 | 1,498,324 | ||||
Reportable legal entity | Parent (Antero) | Natural gas liquids sales | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 284,958 | 338,269 | 902,606 | 828,424 | ||||
Reportable legal entity | Parent (Antero) | Oil sales | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 40,561 | 59,722 | 137,675 | 128,869 | ||||
Reportable legal entity | Parent (Antero) | Gathering, compression, water handling and treatment | ||||||||
Operating expenses: | ||||||||
Cost of goods and services sold | 603,860 | 442,602 | 1,705,709 | 1,236,655 | ||||
Reportable legal entity | Parent (Antero) | Marketing | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 46,645 | 89,598 | 200,911 | 394,189 | ||||
Operating expenses: | ||||||||
Cost of goods and services sold | 108,216 | 151,764 | 408,839 | 560,924 | ||||
Reportable legal entity | Parent (Antero) | Exploration | ||||||||
Operating expenses: | ||||||||
Cost of goods and services sold | 208 | 666 | 648 | 4,022 | ||||
Reportable legal entity | Parent (Antero) | Lease operating | ||||||||
Operating expenses: | ||||||||
Cost of goods and services sold | 35,928 | 35,124 | 119,754 | 98,698 | ||||
Reportable legal entity | Parent (Antero) | Other income | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 1,481 | 5,327 | 4,999 | 16,381 | ||||
Reportable legal entity | Guarantor Subsidiaries | ||||||||
Operating expenses: | ||||||||
Equity in earnings (loss) of unconsolidated affiliates | (79,604) | (69,202) | ||||||
Gain on deconsolidation of Antero Midstream Partners LP | 200,337 | |||||||
Total other income (expenses) | (79,604) | 131,135 | ||||||
Income (loss) before income taxes | (79,604) | 131,135 | ||||||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | 131,135 | |||||||
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | $ (79,604) | 131,135 | ||||||
Reportable legal entity | Non-Guarantor Subsidiaries | ||||||||
Revenue and other: | ||||||||
Loss on sale of assets | (583) | |||||||
Total revenue | 266,205 | 218,360 | 746,771 | |||||
Operating expenses: | ||||||||
Production and ad valorem taxes | 1,166 | 3,187 | ||||||
Impairment of midstream assets | 1,157 | 6,982 | 5,771 | |||||
Depletion, depreciation, and amortization | 38,456 | 21,707 | 107,321 | |||||
Accretion of asset retirement obligations | 33 | 63 | 101 | |||||
General and administrative | 15,015 | 18,793 | 44,967 | |||||
Accretion of contingent acquisition consideration | 4,020 | 1,928 | 11,841 | |||||
Total operating expenses | 140,156 | 114,291 | 394,355 | |||||
Operating income (loss) | 126,049 | 104,069 | 352,416 | |||||
Equity in earnings (loss) of unconsolidated affiliates | 10,705 | 12,264 | 27,832 | |||||
Interest expense, net | (16,989) | (16,815) | (42,913) | |||||
Total other income (expenses) | (6,284) | (4,551) | (15,081) | |||||
Income (loss) before income taxes | 119,765 | 99,518 | 337,335 | |||||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | 119,765 | 99,518 | 337,335 | |||||
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | 119,765 | 99,518 | 337,335 | |||||
Reportable legal entity | Non-Guarantor Subsidiaries | Gathering, compression, water handling and treatment | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | 266,205 | 218,360 | 746,188 | |||||
Operating expenses: | ||||||||
Cost of goods and services sold | 12,701 | 36,469 | ||||||
Reportable legal entity | Non-Guarantor Subsidiaries | Lease operating | ||||||||
Operating expenses: | ||||||||
Cost of goods and services sold | 67,608 | 64,818 | 184,698 | |||||
Eliminations | ||||||||
Revenue and other: | ||||||||
Loss on sale of assets | 583 | |||||||
Total revenue | (266,688) | (215,532) | (747,854) | |||||
Operating expenses: | ||||||||
Production and ad valorem taxes | 940 | |||||||
Impairment of midstream assets | (583) | |||||||
General and administrative | (632) | (499) | (1,946) | |||||
Accretion of contingent acquisition consideration | (4,020) | (1,928) | (11,841) | |||||
Total operating expenses | (199,914) | (178,028) | (551,507) | |||||
Operating income (loss) | (66,774) | (37,504) | (196,347) | |||||
Interest expense, net | 93 | 129 | ||||||
Equity in earnings (loss) of consolidated subsidiaries | 23,363 | (15,021) | 70,417 | |||||
Total other income (expenses) | 23,456 | (15,021) | 70,546 | |||||
Income (loss) before income taxes | (43,318) | (52,525) | (125,801) | |||||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (43,318) | (52,525) | (125,801) | |||||
Net income and comprehensive income attributable to noncontrolling interests | 76,447 | 46,993 | 211,534 | |||||
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | (119,765) | (99,518) | (337,335) | |||||
Eliminations | Gathering, compression, water handling and treatment | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | (261,361) | (213,881) | (730,890) | |||||
Operating expenses: | ||||||||
Cost of goods and services sold | (128,799) | (110,486) | (346,896) | |||||
Eliminations | Lease operating | ||||||||
Operating expenses: | ||||||||
Cost of goods and services sold | (66,463) | (66,055) | (190,241) | |||||
Eliminations | Other income | ||||||||
Revenue and other: | ||||||||
Revenues from contracts with customers | $ (5,327) | $ (1,651) | $ (16,381) |
Subsidiary Guarantors - Cash Fl
Subsidiary Guarantors - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows provided by (used in) operating activities: | ||||||||
Net income (loss) including noncontrolling interests | $ (878,864) | $ 42,168 | $ 1,025,756 | $ (77,972) | $ (67,275) | $ 80,810 | $ 189,060 | $ (64,437) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||
Depletion, depreciation, amortization, and accretion | 726,827 | 711,581 | ||||||
Impairment of oil and gas properties | 1,041,469 | 221,094 | 1,253,712 | 406,068 | ||||
Impairment of midstream assets | 7,800 | 1,157 | 14,782 | 9,658 | ||||
Commodity derivative fair value gains | (220,788) | (57,019) | (471,847) | (134,793) | ||||
Gains on settled commodity derivatives | 261,794 | 268,369 | ||||||
Marketing derivative fair value (gains) losses | 0 | 42 | 0 | (94,081) | ||||
Gains on settled marketing derivatives | 78,098 | |||||||
Deferred income tax expense | 32,019 | 2,500 | ||||||
Gain on sale of assets | 951 | |||||||
Equity-based compensation expense | 3,875 | 16,202 | 19,327 | 56,429 | ||||
Equity in earnings (loss) of unconsolidated affiliates | 117,859 | (10,705) | 90,193 | (27,832) | ||||
Distributions/dividends of earnings from unconsolidated affiliates | 109,241 | 29,660 | ||||||
Gain on deconsolidation of Antero Midstream Partners LP | (1,406,042) | |||||||
Other | 8,179 | 2,945 | ||||||
Changes in current assets and liabilities | 127,322 | 16,233 | ||||||
Net cash provided by operating activities | 955,518 | 1,260,398 | ||||||
Cash flows provided by (used in) investing activities: | ||||||||
Additions to unproved properties | (69,796) | (130,381) | ||||||
Drilling and completion costs | (957,931) | (1,125,660) | ||||||
Additions to water handling and treatment systems | (24,416) | (77,385) | ||||||
Additions to gathering systems and facilities | (48,239) | (337,448) | ||||||
Additions to other property and equipment | (5,980) | (5,371) | ||||||
Investments in unconsolidated affiliates | (25,020) | (91,419) | ||||||
Proceeds from the Antero Midstream Partners LP Transactions | 296,611 | |||||||
Change in other assets | 7,461 | (2,675) | ||||||
Proceeds from sale of assets | 1,983 | |||||||
Net cash used in investing activities | (825,327) | (1,770,339) | ||||||
Cash flows provided by (used in) financing activities: | ||||||||
Repurchases of common stock | (17,924) | |||||||
Issuance of senior notes | 650,000 | |||||||
Borrowings (repayments) on bank credit facilities, net | (45,000) | 682,000 | ||||||
Payments of deferred financing costs | (8,259) | |||||||
Distributions to noncontrolling interests in Antero Midstream Partners LP | (85,076) | (188,775) | ||||||
Employee tax withholding for settlement of equity compensation awards | (2,379) | (8,205) | ||||||
Other | (2,021) | (3,520) | ||||||
Net cash provided by financing activities | 489,341 | 481,500 | ||||||
Effect of deconsolidation of Antero Midstream Partners LP | (619,532) | |||||||
Net increase (decrease) in cash and cash equivalents | (28,441) | |||||||
Cash and cash equivalents, beginning of period | 28,441 | 28,441 | ||||||
Reportable legal entity | Parent (Antero) | ||||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net income (loss) including noncontrolling interests | (154,419) | 10,932 | (275,971) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||
Depletion, depreciation, amortization, and accretion | 705,057 | 604,159 | ||||||
Accretion of contingent acquisition consideration | (11,841) | |||||||
Impairment of oil and gas properties | 1,041,469 | 221,094 | 1,253,712 | 406,068 | ||||
Impairment of midstream assets | 7,800 | 7,800 | 4,470 | |||||
Commodity derivative fair value gains | (220,788) | (57,019) | (471,847) | (134,793) | ||||
Gains on settled commodity derivatives | 261,794 | 268,369 | ||||||
Marketing derivative fair value (gains) losses | 42 | (94,081) | ||||||
Gains on settled marketing derivatives | 78,098 | |||||||
Deferred income tax expense | 32,019 | 2,500 | ||||||
Gain on sale of assets | 951 | |||||||
Equity-based compensation expense | 16,850 | 39,823 | ||||||
Equity in earnings of consolidated subsidiaries | 23,363 | (15,021) | 70,417 | |||||
Equity in earnings (loss) of unconsolidated affiliates | 38,255 | 33,255 | ||||||
Distributions/dividends of earnings from unconsolidated affiliates | 96,636 | |||||||
Gain on deconsolidation of Antero Midstream Partners LP | (1,205,705) | |||||||
Distributions from subsidiaries | 94,391 | 115,678 | ||||||
Other | (40,493) | 862 | ||||||
Changes in current assets and liabilities | 121,087 | 20,015 | ||||||
Net cash provided by operating activities | 901,418 | 1,093,773 | ||||||
Cash flows provided by (used in) investing activities: | ||||||||
Additions to unproved properties | (69,796) | (130,381) | ||||||
Drilling and completion costs | (978,496) | (1,328,289) | ||||||
Additions to gathering systems and facilities | 175 | |||||||
Additions to other property and equipment | (4,918) | (5,371) | ||||||
Proceeds from the Antero Midstream Partners LP Transactions | 296,611 | |||||||
Change in other assets | 10,818 | (1,810) | ||||||
Proceeds from sale of assets | 1,983 | |||||||
Net cash used in investing activities | (743,798) | (1,465,676) | ||||||
Cash flows provided by (used in) financing activities: | ||||||||
Repurchases of common stock | (17,924) | |||||||
Borrowings (repayments) on bank credit facilities, net | (135,379) | 362,000 | ||||||
Payments of deferred financing costs | (791) | |||||||
Employee tax withholding for settlement of equity compensation awards | (2,350) | (6,806) | ||||||
Other | (1,176) | (3,369) | ||||||
Net cash provided by financing activities | (157,620) | 351,825 | ||||||
Net increase (decrease) in cash and cash equivalents | (20,078) | |||||||
Cash and cash equivalents, beginning of period | 20,078 | 20,078 | ||||||
Reportable legal entity | Guarantor Subsidiaries | ||||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net income (loss) including noncontrolling interests | 131,135 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||
Equity in earnings (loss) of unconsolidated affiliates | $ 79,604 | 69,202 | ||||||
Gain on deconsolidation of Antero Midstream Partners LP | (200,337) | |||||||
Reportable legal entity | Non-Guarantor Subsidiaries | ||||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net income (loss) including noncontrolling interests | 119,765 | 99,518 | 337,335 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||
Depletion, depreciation, amortization, and accretion | 21,770 | 107,422 | ||||||
Accretion of contingent acquisition consideration | 4,020 | 1,928 | 11,841 | |||||
Impairment of midstream assets | 1,157 | 6,982 | 5,771 | |||||
Gain on sale of assets | (583) | |||||||
Equity-based compensation expense | 2,477 | 16,606 | ||||||
Equity in earnings (loss) of unconsolidated affiliates | (10,705) | (12,264) | (27,832) | |||||
Distributions/dividends of earnings from unconsolidated affiliates | 12,605 | 29,660 | ||||||
Other | 750 | 2,083 | ||||||
Changes in current assets and liabilities | (10,573) | (10,901) | ||||||
Net cash provided by operating activities | 121,265 | 471,402 | ||||||
Cash flows provided by (used in) investing activities: | ||||||||
Additions to water handling and treatment systems | (24,547) | (68,325) | ||||||
Additions to gathering systems and facilities | (48,239) | (337,623) | ||||||
Additions to other property and equipment | (1,062) | |||||||
Investments in unconsolidated affiliates | (25,020) | (91,419) | ||||||
Change in other assets | (3,357) | (865) | ||||||
Other | 4,470 | |||||||
Net cash used in investing activities | (102,225) | (493,762) | ||||||
Cash flows provided by (used in) financing activities: | ||||||||
Issuance of senior notes | 650,000 | |||||||
Borrowings (repayments) on bank credit facilities, net | 90,379 | 320,000 | ||||||
Payments of deferred financing costs | (7,468) | |||||||
Distributions to noncontrolling interests in Antero Midstream Partners LP | (131,545) | (304,453) | ||||||
Employee tax withholding for settlement of equity compensation awards | (29) | (1,399) | ||||||
Other | (845) | (151) | ||||||
Net cash provided by financing activities | 600,492 | 13,997 | ||||||
Effect of deconsolidation of Antero Midstream Partners LP | (619,532) | |||||||
Net increase (decrease) in cash and cash equivalents | (8,363) | |||||||
Cash and cash equivalents, beginning of period | $ 8,363 | 8,363 | ||||||
Eliminations | ||||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net income (loss) including noncontrolling interests | (43,318) | (52,525) | (125,801) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||
Accretion of contingent acquisition consideration | (4,020) | (1,928) | (11,841) | |||||
Impairment of midstream assets | (583) | |||||||
Gain on sale of assets | 583 | |||||||
Equity in earnings of consolidated subsidiaries | $ (23,363) | 15,021 | (70,417) | |||||
Distributions from subsidiaries | (94,391) | (115,678) | ||||||
Other | 47,922 | |||||||
Changes in current assets and liabilities | 16,808 | 7,119 | ||||||
Net cash provided by operating activities | (67,165) | (304,777) | ||||||
Cash flows provided by (used in) investing activities: | ||||||||
Drilling and completion costs | 20,565 | 202,629 | ||||||
Additions to water handling and treatment systems | 131 | (9,060) | ||||||
Other | (4,470) | |||||||
Net cash used in investing activities | 20,696 | 189,099 | ||||||
Cash flows provided by (used in) financing activities: | ||||||||
Distributions to noncontrolling interests in Antero Midstream Partners LP | 46,469 | 115,678 | ||||||
Net cash provided by financing activities | $ 46,469 | $ 115,678 |