Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2020 | |
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 $0.01 | |
Trading Symbol | AR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 268,390,401 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001433270 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Accounts receivable | $ 91,944 | $ 46,419 |
Accounts receivable, related parties | 125,000 | |
Accrued revenue | 201,320 | 317,886 |
Derivative instruments | 816,444 | 422,849 |
Other current assets | 10,313 | 10,731 |
Total current assets | 1,120,021 | 922,885 |
Oil and gas properties, at cost (successful efforts method): | ||
Unproved properties | 1,289,770 | 1,368,854 |
Proved properties | 12,154,162 | 11,859,817 |
Gathering systems and facilities | 5,802 | 5,802 |
Other property and equipment | 72,312 | 71,895 |
Property and equipment, gross | 13,522,046 | 13,306,368 |
Less accumulated depletion, depreciation, and amortization | (3,527,306) | (3,327,629) |
Property and equipment, net | 9,994,740 | 9,978,739 |
Operating leases right-of-use assets | 2,814,539 | 2,886,500 |
Derivative instruments | 284,461 | 333,174 |
Investments in unconsolidated affiliates | 291,989 | 1,055,177 |
Other assets | 20,039 | 21,094 |
Total assets | 14,525,789 | 15,197,569 |
Current liabilities: | ||
Accounts payable | 37,909 | 14,498 |
Accounts payable, related parties | 88,894 | 97,883 |
Accrued liabilities | 367,444 | 400,850 |
Revenue distributions payable | 174,654 | 207,988 |
Derivative instruments | 6,721 | |
Short-term lease liabilities | 295,658 | 305,320 |
Other current liabilities | 7,315 | 6,879 |
Total current liabilities | 971,874 | 1,040,139 |
Long-term liabilities: | ||
Long-term debt | 3,707,787 | 3,758,868 |
Deferred income tax liability | 672,002 | 781,987 |
Derivative instruments | 215 | 3,519 |
Long-term lease liabilities | 2,520,939 | 2,583,678 |
Other liabilities | 60,432 | 58,635 |
Total liabilities | 7,933,249 | 8,226,826 |
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; 295,941 shares and 268,926 shares issued and outstanding at December 31, 2019 and March 31, 2020, respectively | 2,689 | 2,959 |
Additional paid-in capital | 6,091,242 | 6,130,365 |
Accumulated earnings | 498,609 | 837,419 |
Total equity | 6,592,540 | 6,970,743 |
Total liabilities and equity | $ 14,525,789 | $ 15,197,569 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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 | 268,926,000 | 295,941,000 |
Common stock, shares outstanding | 268,926,000 | 295,941,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue and other: | ||
Revenue | $ 750,474 | $ 1,114,668 |
Commodity derivative fair value gains (losses) | 565,833 | (77,368) |
Total revenue and other | 1,317,105 | 1,037,407 |
Operating expenses: | ||
Production and ad valorem taxes | 25,699 | 35,678 |
Impairment of oil and gas properties | 89,220 | 81,244 |
Impairment of midstream assets | 6,982 | |
Depletion, depreciation, and amortization | 199,677 | 240,201 |
Accretion of asset retirement obligations | 1,104 | 976 |
General and administrative (including equity-based compensation expense of $8,903 and $3,329 in 2019 and 2020, respectively) | 31,221 | 68,202 |
Contract termination and rig stacking | 0 | 8,360 |
Total operating expenses | 1,054,672 | 1,071,114 |
Operating income (loss) | 262,433 | (33,707) |
Other income (expenses): | ||
Equity in earnings (loss) of unconsolidated affiliates | (128,055) | 14,081 |
Impairment of equity investments | (610,632) | |
Gain on deconsolidation of Antero Midstream Partners LP | 1,406,042 | |
Interest expense, net | (53,102) | (71,950) |
Gain on early extinguishment of debt | 80,561 | |
Total other income (expenses) | (711,228) | 1,348,173 |
Income (loss) before income taxes | (448,795) | 1,314,466 |
Provision for income tax (expense) benefit | 109,985 | (288,710) |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (338,810) | 1,025,756 |
Net income and comprehensive income attributable to noncontrolling interests | 46,993 | |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | $ (338,810) | $ 978,763 |
Income (loss) per share-basic (in dollars per share) | $ (1.19) | $ 3.17 |
Income (loss) per share-diluted (in dollars per share) | $ (1.19) | $ 3.17 |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 284,227 | 308,694 |
Diluted (in shares) | 284,227 | 308,788 |
Natural gas sales | ||
Revenue and other: | ||
Revenue | $ 411,082 | $ 657,266 |
Natural gas liquids sales | ||
Revenue and other: | ||
Revenue | 257,673 | 313,685 |
Oil sales | ||
Revenue and other: | ||
Revenue | 35,646 | 48,052 |
Commodity derivative fair value gains (losses) | 35,646 | |
Gathering, compression, water handling and treatment | ||
Revenue and other: | ||
Revenue | 4,479 | |
Commodity derivative fair value gains (losses) | 565,833 | |
Operating expenses: | ||
Cost of goods and services sold | 588,624 | 424,529 |
Marketing | ||
Revenue and other: | ||
Revenue | 46,073 | 91,186 |
Operating expenses: | ||
Cost of goods and services sold | 93,273 | 163,084 |
Other income | ||
Revenue and other: | ||
Revenue | 798 | 107 |
Lease operating | ||
Operating expenses: | ||
Cost of goods and services sold | 25,644 | 41,732 |
Exploration | ||
Operating expenses: | ||
Cost of goods and services sold | $ 210 | $ 126 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||
Equity-based compensation expense | $ 3,329 | $ 8,903 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Common Stock | Additional paid-in capital | Accumulated earnings | Noncontrolling Interests | Total |
Balances at Dec. 31, 2018 | $ 3,086 | $ 6,485,174 | $ 1,177,548 | $ 821,669 | $ 8,487,477 |
Balances (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 taxes | $ 1 | (451) | (450) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (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 | (85,076) | (85,076) | |||
Effect of deconsolidation of Antero Midstream Partners LP | (359,039) | $ (784,744) | (1,143,783) | ||
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 | ||||
Balances at Dec. 31, 2019 | $ 2,959 | 6,130,365 | 837,419 | 6,970,743 | |
Balances (in shares) at Dec. 31, 2019 | 295,941,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 2 | (34) | (32) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 178,000 | ||||
Repurchases and retirements of common stock | $ (272) | (42,418) | (42,690) | ||
Repurchases and retirements of common stock (in shares) | (27,193,000) | ||||
Equity-based compensation | 3,329 | 3,329 | |||
Net income (loss) and comprehensive income (loss) | (338,810) | (338,810) | |||
Balance at Mar. 31, 2020 | $ 2,689 | $ 6,091,242 | $ 498,609 | $ 6,592,540 | |
Balance (in shares) at Mar. 31, 2020 | 268,926,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) including noncontrolling interests | $ (338,810) | $ 1,025,756 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depletion, depreciation, amortization, and accretion | 200,781 | 241,177 |
Impairment of oil and gas properties | 89,220 | 81,244 |
Impairment of midstream assets | 6,982 | |
Commodity derivative fair value (gains) losses | (565,833) | 77,368 |
Gains on settled commodity derivatives | 210,926 | 97,092 |
Equity-based compensation expense | 3,329 | 8,903 |
Deferred income tax expense (benefit) | (109,985) | 287,854 |
Loss (gain) on early extinguishment of debt | (80,561) | |
Equity in earnings (loss) of unconsolidated affiliates | 128,055 | (14,081) |
Impairment of equity investments | (610,632) | |
Gain on deconsolidation of Antero Midstream Partners LP | (1,406,042) | |
Distributions/dividends of earnings from unconsolidated affiliates | 42,756 | 12,605 |
Other | 2,440 | 11,081 |
Changes in current assets and liabilities: | ||
Accounts receivable | (54,514) | 42,168 |
Accrued revenue | 116,566 | 109,677 |
Other current assets | (583) | 1,364 |
Accounts payable including related parties | (1,251) | (21,370) |
Accrued liabilities | (19,593) | (14,965) |
Revenue distributions payable | (33,333) | (9,761) |
Other current liabilities | 435 | 1,952 |
Net cash provided by operating activities | 200,677 | 539,004 |
Cash flows provided by (used in) investing activities: | ||
Additions to unproved properties | (10,357) | (27,463) |
Drilling and completion costs | (300,483) | (368,687) |
Additions to water handling and treatment systems | (24,416) | |
Additions to gathering systems and facilities | (48,239) | |
Additions to other property and equipment | (771) | (3,128) |
Settlement of water earnout | 125,000 | |
Investments in unconsolidated affiliates | (25,020) | |
Proceeds from the Antero Midstream Partners LP Transactions | 296,611 | |
Change in other assets | (70) | (4,475) |
Net cash used in investing activities | (186,681) | (204,817) |
Cash flows provided by (used in) financing activities: | ||
Repurchases of common stock | (42,690) | |
Issuance of senior notes | 650,000 | |
Repayment of senior notes | (300,835) | |
Borrowings (repayments) on bank credit facilities, net | 330,000 | (270,000) |
Payments of deferred financing costs | (8,259) | |
Distributions to noncontrolling interests in Antero Midstream Partners LP | (85,076) | |
Employee tax withholding for settlement of equity compensation awards | (32) | (479) |
Other | (439) | (841) |
Net cash provided by financing activities | (13,996) | 285,345 |
Effect of deconsolidation of Antero Midstream Partners LP | (619,532) | |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 30,089 | 37,081 |
Increase (decrease) in accounts payable and accrued liabilities for additions to property and equipment | $ 10,767 | $ (22,825) |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization | |
Organization | (1) Organization Antero Resources Corporation (individually referred to as “Antero”) and its consolidated subsidiaries (collectively referred to as “Antero Resources,” 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2019 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position, and accounting policies. The Company’s December 31, 2019 consolidated financial statements were included in Antero Resources’ 2019 Annual Report on Form 10-K, which was filed with the SEC. These 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, these 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, 2019 and March 31, 2020, and the results of its operations and its cash flows for the three months ended March 31, 2019 and 2020. 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 March 31, 2020 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, the impacts of COVID-19 and other factors. (b) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Resources Corporation, 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, par value $0.01 per share (the “Antero Midstream Corporation common stock”), representing an approximate 31 % interest in Antero Midstream Corporation. As a result, our controlling interest in Antero Midstream Partners was converted to 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 for the three months ended March 31, 2019 represents the interests in Antero Midstream Partners that were owned by the public prior to the Transactions, and the incentive distribution rights in Antero Midstream Partners. 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 Investment in unconsolidated affiliate on the Company’s unaudited condensed consolidated balance sheets. Income (loss) from investees that are accounted for under the equity method is included in Equity in earnings (loss) 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 or net loss, it is recorded in equity in earnings (loss) of unconsolidated affiliates in the statements of operations 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 Company’s balance sheet. The Company’s 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, which is classified as cash inflows from operating activities, or a return of investment, which is 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, liabilities and 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 storage capacity and transportation 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 December 31, 2019, the book overdraft included within accounts payable and revenue distributions payable were $7 million and $18 million, respectively. As of March 31, 2020, the book overdraft included within accounts payable and revenue distributions payable were $5 million and $21 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 three months ended March 31, 2019 and 2020. 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 oil and gas properties was $81 million and $89 million for the three months ended March 31, 2019 and 2020, 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. (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) Natural Gas, NGLs, and Oil Revenues 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 other 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 incurred to gather, compress, process and transport natural gas are recorded as Gathering, compression, processing and transportation expense. 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 incurred to process and transport NGLs are recorded as Gathering, compression, processing, and transportation expense. 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. When applicable, the costs incurred to transport oil to a purchaser are recorded as Gathering, compression, processing and transportation expense. (j) Marketing Revenues and Expenses 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 contract price received from the purchaser. Fees generated from the sale of excess firm transportation marketed to third parties are included in Marketing revenue. Marketing expenses include the cost of purchased third-party natural gas and NGLs. The Company classifies firm transportation costs related to capacity contracted for in advance of having sufficient production and infrastructure to fully utilize the capacity (excess capacity) as marketing expenses since it is marketing this excess capacity to third parties. Firm transportation for which the Company has sufficient production capacity (even though it may not use the transportation capacity because of alternative delivery points with more favorable pricing) is considered unutilized capacity and is charged to transportation expense. (k) 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. Effective March 13, 2019, Antero Midstream Partners is no longer consolidated in Antero’s results. See Note 3 to the financial statements for further discussion on the Transactions and Note 17 to the 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 Partners or usage of Antero Midstream Partners’ gathering and compression systems. For gathering and compression revenue, Antero Midstream Partners satisfied its performance obligations and recognized revenue when low pressure volumes were delivered to a compressor station, high pressure volumes were delivered to a processing plant or transmission pipeline, and compression volumes were delivered to a high pressure line. Revenue was recognized based on the per Mcf gathering or compression fee charged by Antero Midstream Partners in accordance with the gathering and compression agreement. For water handling and treatment revenue, Antero Midstream Partners satisfied its performance obligations and recognized revenue when the fresh water volumes were delivered to the hydration unit of a specified well pad and the wastewater volumes were delivered to its wastewater treatment facility. For services contracted through third-party providers, Antero Midstream Partners’ performance obligation was satisfied when the services performed by the third-party providers were completed. Revenue was recognized based on the per barrel fresh water delivery or wastewater treatment fee charged by Antero Midstream Partners in accordance with the water services agreement. (l) 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. (m) 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 March 31, 2019 2020 Basic weighted average number of shares outstanding 308,694 284,227 Add: Dilutive effect of restricted stock units 80 — Add: Dilutive effect of outstanding stock options — — Add: Dilutive effect of performance stock units 14 — Diluted weighted average number of shares outstanding 308,788 284,227 Weighted average number of outstanding equity awards excluded from calculation of diluted earnings per common share (1) Restricted stock units 1,445 5,952 Outstanding stock options 570 459 Performance stock units 1,721 1,621 (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. (n) 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. |
Deconsolidation of Antero Midst
Deconsolidation of Antero Midstream Partners LP | 3 Months Ended |
Mar. 31, 2020 | |
Deconsolidation of Antero Midstream Partners LP | |
Deconsolidation of Antero Midstream Partners LP | (3) Deconsolidation of Antero Midstream Partners LP 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 Midstream Partners and certain of their affiliates, pursuant to which (i) Antero Midstream GP LP was converted from a limited partnership to a corporation under the laws of the State of Delaware and changed its name to Antero Midstream Corporation, and (ii) an indirect, wholly owned subsidiary of Antero Midstream Corporation was merged with and into Antero Midstream Partners, with Antero Midstream Partners surviving the merger as an indirect, wholly owned subsidiary of Antero Midstream Corporation (together, along with the other transactions contemplated by the Simplification Agreement, the “Transactions”). In connection with the Closing, Antero received The Company recorded a gain on deconsolidation of $1.4 billion calculated as the sum of (i) the cash proceeds received, (ii) the fair value of the Antero Midstream Corporation common stock received at the Closing, and (iii) the elimination of the noncontrolling interest less the carrying amount of the investment in Antero Midstream 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 unaudited 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 unaudited statement of operations and comprehensive income (loss) through March 12, 2019. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue | |
Revenue | (4) Revenue (a) Disaggregation of Revenue Revenue is disaggregated by type in the following table. The table also identifies which reportable segment that the disaggregated revenues relate. For more information on reportable segments, see Note 17— Segment Information. Three months ended March 31, Segment to which (in thousands) 2019 2020 revenues relate Revenues from contracts with customers: Natural gas sales $ 657,266 411,082 Exploration and production Natural gas liquids sales (ethane) 35,516 26,796 Exploration and production Natural gas liquids sales (C3+ NGLs) 278,169 230,877 Exploration and production Oil sales 48,052 35,646 Exploration and production Gathering and compression (1) 3,972 — Equity method investment in AMC Water handling and treatment (1) 507 — Equity method investment in AMC Marketing 91,186 46,073 Marketing Total revenue from contracts with customers 1,114,668 750,474 Income (loss) from derivatives and other sources: (77,261) 566,631 Total revenue and other $ 1,037,407 1,317,105 (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. (b) 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, 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, 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. (c) 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. At December 31, 2019 and March 31, 2020, our receivables from contracts with customers were $318 million and $201 million, respectively. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments. | |
Equity Method Investments | (5) Equity Method Investments At March 31, 2020, the Company owned approximately 29 % 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. The following table is a reconciliation of investments in unconsolidated affiliates for the three months ended March 31, 2020 (in thousands): Antero Midstream Corporation Balance at December 31, 2019 $ 1,055,177 Equity in loss of unconsolidated affiliates (128,055) Distributions/dividends from unconsolidated affiliates (42,756) Impairment (1) (610,632) Elimination of intercompany profit 18,255 Balance at March 31, 2020 $ 291,989 (1) Other-than-temporary impairment in Antero Midstream Corporation recorded as of March 31, 2020 to reduce the carrying value to fair value. Summarized Financial Information of Antero Midstream Corporation The following tables present summarized financial information of Antero Midstream Corporation. Balance Sheet December 31, March 31, (in thousands) 2019 2020 Current assets $ 108,558 151,372 Noncurrent assets 6,174,320 5,629,987 Total assets $ 6,282,878 5,781,359 Current liabilities $ 242,084 83,560 Noncurrent liabilities 2,897,380 3,108,844 Stockholders' equity 3,143,414 2,588,955 Total liabilities and equity $ 6,282,878 5,781,359 Statement of Operations For the period March 13, 2019 Three months through ended (in thousands) March 31, 2019 March 31, 2020 Revenues $ 54,108 243,708 Operating expenses 30,029 762,872 Income (loss) from operations $ 24,079 (519,164) Net income (loss) attributable to the equity method investment $ 23,197 (392,933) |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities | |
Accrued Liabilities | (6) Accrued Liabilities Accrued liabilities as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, March 31, 2019 2020 Capital expenditures $ 105,706 85,363 Gathering, compression, processing, and transportation expenses 134,153 154,039 Marketing expenses 52,612 28,014 Interest expense, net 30,834 51,281 Other 77,545 48,747 Total accrued liabilities $ 400,850 367,444 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt. | |
Long-Term Debt | (7) Long-Term Debt Long-term debt as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, March 31, 2019 2020 Credit Facility (a) $ 552,000 882,000 5.375% senior notes due 2021 (b) 952,500 730,283 5.125% senior notes due 2022 (c) 923,041 761,337 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 791 600 Net unamortized debt issuance costs (19,464) (16,433) Long-term debt $ 3,758,868 3,707,787 (a) Senior Secured Revolving Credit Facility Antero Resources has a senior secured revolving credit facility (the “Credit Facility”) with a consortium of bank lenders. On April 29, 2020, Antero Resources entered into a Third Amendment to the Credit Facility, pursuant to which certain terms of the Credit Facility were amended, as further described herein. Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of Antero Resources’ assets and are subject to regular semi-annual redeterminations. The borrowing base was adjusted to $2.85 billion and lender commitments were reaffirmed at $2.64 billion in the redetermination in April 2020. The next redetermination of the borrowing base is scheduled to occur in October 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 Resources’ senior notes then outstanding. Under the Credit Facility, “Investment Grade Period” is a period that, as long as no event of default has occurred, commences when Antero Resources elects to give notice to the Administrative Agent that Antero Resources has received at least one of (i) a BBB- or better rating from S&P Global Ratings (“S&P”) and (ii) a Baa3 or better rating from Moody’s (an “Investment Grade Rating”). An Investment Grade Period can end at Antero Resources’ election. During any period that is not an Investment Grade Period, the Credit Facility is ratably secured by mortgages on substantially all of Antero Resources’ properties, Antero Resources’ and Antero Subsidiary Holdings LLC’s ownership interests in Antero Midstream Corporation, Antero Resources’ ownership interest in Antero Subsidiary Holdings LLC and Monroe Pipeline LLC, and guarantees from Antero Resources’ 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 (i) LIBOR or (ii) the Alternate Base Rate, in each case, determined by Antero Resources’ election at the time of borrowing, plus an applicable margin based on Antero Resources’ borrowing base utilization which ranges from 75 basis points to 275 basis points. Alternate Base Rate is defined as the greatest of (a) the prime rate, (b) the NYFRB rate plus ½ of 1% , and (c) LIBOR plus 1 %. During an Investment Grade Period, interest is payable at a variable rate based on LIBOR or the Alternate Base Rate determined by Antero Resources’ election at the time of borrowing, plus an applicable margin based on Antero Resources’ credit rating which ranges from 62.5 basis points to 225 basis points. In each case, the credit facility further provides a 1% floor for LIBOR and a 2% floor for the Alternate Base Rate. Antero Resources was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2019 and March 31, 2020. As of March 31, 2020, Antero Resources had an outstanding balance under the Credit Facility of $882 million, with a weighted average interest rate of 2.57%, and outstanding letters of credit of $730 million. As of December 31, 2019, Antero Resources had an outstanding balance under the Credit Facility of $552 million, with a weighted average interest rate of 3.28%, and outstanding letters of credit of $623 million. 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 Resources’ credit rating. (b) 5.375% Senior Notes Due 2021 On November 5, 2013, Antero Resources 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 Resources’ other outstanding senior notes. The 2021 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ 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 a redemption price of 100.00 %. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2021 notes will have the right to require Antero Resources 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 Resources issued $600 million of 5.125% senior notes due December 1, 2022 (the “2022 notes”) at par . On September 18, 2014, Antero Resources 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 Resources’ other outstanding senior notes. The 2022 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ 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 Resources 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 Resources undergoes a change of control followed by a rating decline, the holders of the 2022 notes will have the right to require Antero Resources 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 Resources 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 Resources’ other outstanding senior notes. The 2023 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ 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 Resources may redeem all or part of the 2023 notes at any time at redemption prices ranging from 102.813% currently to 100.00% on or after June 1, 2021. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2023 notes will have the right to require Antero Resources 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 Resources 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 Resources’ other outstanding senior notes. The 2025 notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ 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 Resources may redeem all or part of the 2025 notes at any time at redemption prices ranging from 103.750% currently to 100.00 % on or after March 1, 2023. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2025 notes will have the right to require Antero Resources 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 Resources has a 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 Resources’ 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. There were no outstanding borrowings under the revolving note at (g) Debt Repurchase Program During the first quarter of 2020, Antero Resources repurchased $383 million principal amount of debt at a 21% weighted average discount, including a portion of the 2021 notes and the 2022 notes. The Company recognized a gain of approximately million on the early extinguishment of the debt repurchased. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | (8) Asset Retirement Obligations The following is a reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2020 (in thousands): Asset retirement obligations—December 31, 2019 $ 54,845 Obligations incurred 773 Accretion expense 1,104 Asset retirement obligations—March 31, 2020 $ 56,722 Asset retirement obligations are included in other liabilities on the Company’s unaudited condensed consolidated balance sheets. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Equity-Based Compensation | |
Equity-Based Compensation | (9) Equity-Based Compensation Antero Resources 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 Resources’ Board of Directors. A total of 1,742,720 shares were available for future grant under the Plan as of March 31, 2020. 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 includes Antero Resources). As part of the Transactions, each outstanding phantom unit award under the AMP Plan, was assumed by Antero Midstream Corporation and converted into 1.8926 restricted stock units under the Antero Midstream Corporation Long Term Incentive Plan (the “AMC Plan”). Each restricted stock unit award under the AMC Plan represents a right to receive one share of Antero Midstream Corporation common stock. The Company’s equity-based compensation expense, by type of award, was as follows for the three months ended March 31, 2019 and 2020 (in thousands): Three months ended March 31, 2019 2020 Restricted stock unit awards $ 3,972 1,878 Stock options 344 — Performance share unit awards 2,959 922 Antero Midstream Partners phantom unit awards (1) 1,125 160 Equity awards issued to directors 503 369 Total expense $ 8,903 3,329 (1) Partners to Antero Resources. Antero Resources 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 Resources’ labor costs. Through March 12, 2019, the total amount of equity-based compensation is included in the consolidated financial statements of Antero Resources; and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Partners is no longer reflected in Antero Resources consolidated financial statements. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions. Restricted Stock Unit Awards A summary of restricted stock unit award activity for the three months ended March 31, 2020 is as follows: Weighted average Aggregate Number of grant date intrinsic value shares fair value (in thousands) Total awarded and unvested—December 31, 2019 2,370,575 $ 12.81 $ 6,756 Granted 4,644,934 $ 2.39 Vested (191,216) $ 5.04 Forfeited (69,293) $ 13.07 Total awarded and unvested—March 31, 2020 6,755,000 $ 5.86 $ 4,816 Intrinsic values are based on the closing price of Antero Resources’ common stock on the referenced dates. As of March 31, 2020, there was $27 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 2.3 years. Stock Options A summary of stock option activity for the three months ended March 31, 2020 is as follows: Weighted Weighted average average remaining Intrinsic Stock exercise contractual value options price life (in thousands) Outstanding at December 31, 2019 467,633 $ 50.64 5.05 $ — Granted — $ — Exercised — $ — Forfeited (8,339) $ 52.36 Expired — $ — Outstanding at March 31, 2020 459,294 $ 50.61 4.77 $ — Vested or expected to vest as of March 31, 2020 459,294 $ 50.61 4.77 $ — Exercisable at March 31, 2020 459,294 $ 50.61 4.77 $ — Intrinsic values are based on the exercise price of the options and the closing price of Antero Resources’ common stock on the referenced dates. As of March 31, 2020, all stock options were fully vested resulting in no unamortized equity-based compensation expense. Performance Share Unit Awards As of March 31, 2020, there was $14 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 1.6 years. Cash Awards During the three months ended March 31, 2020, the Company granted cash awards of approximately $3.3 million to certain executives under the Plan. Compensation expense for these awards is recognized ratably over the vesting period for each of three tranches through January 20, 2023. As of March 31, 2020, the Company has accrued approximately $0.6 million in Other liabilities in the unaudited condensed consolidated balance sheet related to such cash awards. Antero Midstream Partners Phantom Unit Awards and Antero Midstream Corporation Restricted Stock Unit Awards A summary of Antero Midstream Corporation restricted stock unit awards for the three months ended March 31, 2020 is as follows: Weighted average Aggregate Number of grant date intrinsic value units fair value (in thousands) Total awarded and unvested—December 31, 2019 657,757 $ 14.71 $ 4,992 Granted — $ — Vested (10,120) $ 15.81 Forfeited (9,496) $ 13.75 Total awarded and unvested—March 31, 2020 638,141 $ 14.70 $ 1,340 Intrinsic values are based on the closing price of shares of Antero Midstream Corporation common stock. As of March 31, 2020, there was $5 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 1.5 years. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Financial Instruments | |
Financial Instruments | (10) Financial Instruments The carrying values of accounts receivable and accounts payable at December 31, 2019 and March 31, 2020 approximated market values because of their short-term nature. The carrying values of the amounts outstanding under the Credit Facility at December 31, 2019 and March 31, 2020 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 $2.8 billion and $1.5 billion at December 31, 2019 and March 31, 2020, 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 | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2019 and 2020. 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 derivative 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 also entered into a call option agreement that gives the counterparty the right, but not the obligation, to enter into a fixed price swap agreement on a specified future date for a specific amount of production for a specified future period. 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 March 31, 2020, the Company’s fixed price natural gas, oil and NGL swap positions from April 1, 2020 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 Propane =European Propane CIF ARA): Natural Gas Weighted Natural gas Liquids Oil average index MMBtu/day Bbls/day Bbls/day price Nine months ending December 31, 2020: NYMEX ($/MMBtu) 2,227,500 — $ 2.87 ARA Propane ($/Gal) — 10,352 — 0.65 NYMEX-WTI ($/Bbl) — — 26,000 55.63 Total 2,227,500 10,352 26,000 Year ending December 31, 2021: NYMEX ($/MMBtu) 2,400,000 — $ 2.80 NYMEX-WTI ($/Bbl) — 3,000 55.16 Total 2,400,000 3,000 Year ending December 31, 2022: NYMEX ($/MMBtu) 687,500 $ 2.48 Year ending December 31, 2023: NYMEX ($/MMBtu) 50,000 $ 2.39 A portion of the NYMEX-WTI ($/Bbl) in 2020 combined with the Mont Belvieu Natural Gasoline to NYMEX-WTI are intended to fix the price of Natural Gasoline. In addition, we have a call option agreement, which entitles the holder the right, but not the obligation, to enter into a fixed price swap agreement on December 21, 2023 to purchase 427,500 MMBtu per day at a price of $2.77 per MMBtu for the year ending December 31, 2024. As of March 31, 2020, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price, and NGL basis swap positions, which settle on the pricing index to basis differential of Mont Belvieu Butane to the European Butane CIF ARA natural gas liquids price, were as follows: Natural Gas Weighted Natural gas Liquids average hedged MMBtu/day Bbls/day differential Three months ending June 30, 2020: ARA to Mont Belvieu Non-TET ($/Gal) — 1,602 $ 0.22 Nine months ending December 31, 2020: NYMEX to TCO ($/MMBtu) 60,000 $ 0.353 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 March 31, 2020, the Company had NGL contracts for April 1, 2020 through December 31, 2021 that fix the Mont Belvieu index price for natural gasoline to percentages of WTI as follows: Weighted Gas average Liquids Payout Bbls/day Ratio Nine months ending December 31, 2020: Mont Belvieu Natural Gasoline to NYMEX-WTI 18,800 80 % Year ending December 31, 2021: Mont Belvieu Natural Gasoline to NYMEX-WTI 18,650 78 % A portion of the Mont Belvieu Natural Gasoline to NYMEX-WTI combined with the NYMEX-WTI ($/Bbl) in 2020 are intended to fix the price of Natural Gasoline. (b) 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, 2019 and March 31, 2020. None of the Company’s derivative instruments are designated as hedges for accounting purposes and the fair value of derivative instruments was determined using Level 2 inputs. December 31, 2019 March 31, 2020 Balance sheet Fair value Balance sheet Fair value location (In thousands) location (In thousands) Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments $ 422,849 Derivative instruments $ 816,444 Commodity derivatives—noncurrent Derivative instruments 333,174 Derivative instruments 284,461 Total asset derivatives 756,023 1,100,905 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments 6,721 Derivative instruments — Commodity derivatives—noncurrent Derivative instruments 3,519 Derivative instruments 215 Total liability derivatives 10,240 215 Net derivatives $ 745,783 $ 1,100,690 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, 2019 March 31, 2020 Gross Gross amounts Net amounts of Gross Gross amounts Net amounts of amounts on offset on assets (liabilities) amounts on offset on assets (liabilities) balance sheet balance sheet on balance sheet balance sheet balance sheet on balance sheet Commodity derivative assets $ 882,817 (126,794) 756,023 $ 1,193,046 (92,141) 1,100,905 Commodity derivative liabilities $ (137,034) 126,794 (10,240) $ (92,356) 92,141 (215) 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 for the three months ended March 31, 2019 and 2020 (in thousands): Statement of operations Three months ended March 31, location 2019 2020 Commodity derivative fair value gains (losses) Revenue $ (77,368) 565,833 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Leases | (12) 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 more extend lease one 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 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. 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. As new leases commence or previous leases are modified the discount rate used in the present value calculation is the current period applicable discount rate. 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 December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, 2019 March 31, 2020 Operating Leases Finance Leases Operating Leases Finance Leases Right-of-use Assets: Processing plants $ 1,460,770 — $ 1,440,110 — Drilling rigs and completion services 71,662 — 56,353 — Gas gathering lines and compressor stations (1) 1,308,428 — 1,273,200 — Office space 40,491 — 39,631 — Vehicles 4,983 2,328 4,232 2,058 Other office and field equipment 166 170 1,013 — Total right-of-use assets $ 2,886,500 2,498 $ 2,814,539 2,058 (2) (1) Gas gathering lines and compressor stations leases includes $1.1 billion related to Antero Midstream Corporation as of December 31, 2019 and March 31, 2020. See “—Related party lease disclosure” for additional discussion. (2) Financing lease assets are recorded net of accumulated amortization of $9 million and $3 million as of December 31, 2019 and March 31, 2020, respectively. The Company’s lease liabilities as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, 2019 March 31, 2020 Operating Leases Finance Leases Operating Leases Finance Leases Location on the balance sheet: Short-term lease liabilities $ 304,397 923 $ 294,535 1,123 Long-term lease liabilities 2,582,103 1,575 2,520,004 935 Total lease liabilities $ 2,886,500 2,498 $ 2,814,539 2,058 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 months ended March 31, 2019 and 2020 (in thousands): Three months ended Statement of Operations Location March 31, 2019 March 31, 2020 Gathering, compression, processing, and transportation $ 187,847 352,643 General and administrative 2,726 2,881 Contract termination and rig stacking 8,019 — Total lease expense $ 198,592 355,524 Costs associated with finance leases of less than $1 million for each of the three months ended March 31, 2019 and 2020 were included in interest expense. We capitalized $55 million and $33 million, respectively, of costs related to operating leases and less than $1 million of costs related to finance leases during each of the three months ended March 31, 2019 and 2020. Short-term lease costs that are more than one month but less than 12 months are excluded from the above amounts and total $35 million and $63 million, respectively, for the three months ended March 31, 2019 and 2020. Supplemental Cash Flow Information Related to Leases The following is the Company’s supplemental cash flow information related to leases for the three months ended March 31, 2019 and March 31, 2020 (in thousands): Three months ended March 31, 2019 Three months ended March 31, 2020 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 $ 150,320 — $ 358,039 — Investing cash out flows related to operating leases 52,366 — 27,534 — Financing cash out flows related to financing leases — 791 — 439 $ 202,686 791 $ 385,573 439 Noncash activities: Right of use assets obtained in exchange for operating lease liabilities $ 3,345,549 — $ 9,382 — 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 March 31, 2020 (in thousands): (in thousands) Operating Leases Financing Leases Total Remainder of 2020 $ 464,093 978 465,071 2021 558,241 844 559,085 2022 543,326 321 543,647 2023 538,771 7 538,778 2024 530,003 — 530,003 2025 457,326 — 457,326 Thereafter 1,394,412 — 1,394,412 Total lease payments 4,486,172 2,150 4,488,322 Less: imputed interest (1,671,633) (92) (1,671,725) Total $ 2,814,539 2,058 2,816,597 Lease Term and Discount Rate The table below is the Company’s weighted-average remaining lease term and discount rate as of March 31, 2020: Operating Leases Finance Leases Weighted-average remaining lease term: 8.5 years 2.0 years Weighted-average discount rate: 11.6 % 6.1 % 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 . In December 2019, the Company and Antero Midstream Corporation agreed to extend the initial term of the gathering and compression agreement to 2038 and established a growth incentive fee program whereby low pressure gathering fees will be reduced from 2020 through 2023 to the extent the Company achieves certain volumetric targets at certain points during such time. Upon completion of the initial contract term, the gathering and compression agreement will continue in effect from year to year until such time as the agreement is terminated, effective upon an anniversary of the effective date of the agreement, by either the Company or Antero Midstream Corporation on or before the 180 th day prior to the anniversary of such effective date. The Company achieved the volumetric targets for the three months ended March 31, 2020, and Antero Midstream Corporation provided a rebate of $12 million. For the three months ended March 31, 2019 and 2020, gathering and compression fees paid by Antero related to this agreement were $152 million and $156 million, respectively. As of March 31, 2020, |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 (in thousands). Processing, Firm gathering and Land payment Operating and Imputed Interest transportation compression obligations Financing Leases for Leases (a) (b) (c) (d) (d) Total Remainder of 2020 $ 832,753 42,144 2,411 228,796 236,275 1,342,379 2021 1,076,995 55,780 2,859 269,661 289,424 1,694,719 2022 1,034,275 53,606 328 284,665 258,982 1,631,856 2023 1,057,150 58,565 — 313,475 225,303 1,654,493 2024 1,017,104 58,687 — 342,348 187,655 1,605,794 2025 977,891 47,385 — 308,465 148,861 1,482,602 Thereafter 6,930,640 105,138 — 1,069,187 325,225 8,430,190 Total $ 12,926,808 421,305 5,598 2,816,597 1,671,725 17,842,033 (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. (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. (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 | 3 Months Ended |
Mar. 31, 2020 | |
Contingencies | |
Contingencies | (14) Contingencies Environmental 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 Resources 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. 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 geographic point in Braxton County, 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 Resources 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 of 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 Resources’ 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 Resources. 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 appealed the judgment and the appeal is currently pending before the Colorado Court of Appeals. 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 Braxton delivery point 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 | 3 Months Ended |
Mar. 31, 2020 | |
Contract Termination and Rig Stacking | |
Contract Termination and Rig Stacking | (15) Contract Termination and Rig Stacking The Company incurred costs associated with the delay or cancellation of drilling and completion contracts with third-party contractors of approximately $8 million for the three months ended March 31, 2019. No |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2020 | |
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 Resources 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 Resources. See Note 17 to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information | |
Segment Information | (17) Segment Information See Note 2(l) 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 Resources. Effective March 13, 2019, the results of Antero Partners are no longer consolidated in Antero Resources’ results; 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 midstream segment 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 March 31, 2019 and 2020 (in thousands): Equity Method Elimination of Investment in intersegment Exploration Antero transactions and and Midstream unconsolidated Consolidated production Marketing Corporation affiliates total Three months ended March 31, 2019: Sales and revenues: Third-party $ 941,635 91,186 4 — 1,032,825 Intersegment 1,758 — 54,104 (51,280) 4,582 Total $ 943,393 91,186 54,108 (51,280) 1,037,407 Operating expenses: Lease operating $ 42,969 — 11,815 (13,052) 41,732 Gathering, compression, processing, and transportation 535,015 — 2,935 (113,421) 424,529 Impairment of oil and gas properties 81,244 — — — 81,244 Impairment of midstream assets — — 6,982 — 6,982 Depletion, depreciation, and amortization 218,494 — 7,650 14,057 240,201 General and administrative 49,908 — 2,184 16,110 68,202 Other 44,137 163,084 1,291 (288) 208,224 Total 971,767 163,084 32,857 (96,594) 1,071,114 Operating income (loss) $ (28,374) (71,898) 21,251 45,314 (33,707) Equity in earnings of unconsolidated affiliates $ 1,817 — 2,880 9,384 14,081 Investments in unconsolidated affiliates $ 1,989,612 — 1,153,943 (1,153,943) 1,989,612 Segment assets $ 17,263,369 25,361 6,660,325 (6,660,325) 17,288,730 Capital expenditures for segment assets $ 399,278 — 16,005 56,650 471,933 Equity Method Elimination of Investment in intersegment Exploration Antero transactions and and Midstream unconsolidated Consolidated production Marketing Corporation affiliates total Three months ended March 31, 2020: Sales and revenues: Third-party $ 1,270,234 46,073 — — 1,316,307 Intersegment 798 — 243,708 (243,708) 798 Total $ 1,271,032 46,073 243,708 (243,708) 1,317,105 Operating expenses: Lease operating $ 25,644 — — — 25,644 Gathering, compression, processing, and transportation 588,624 — 55,908 (55,908) 588,624 Impairment of oil and gas properties 89,220 — — — 89,220 Impairment of midstream assets — — 664,544 (664,544) — Depletion, depreciation, and amortization 199,677 — 27,343 (27,343) 199,677 General and administrative 31,221 — 10,199 (10,199) 31,221 Other 27,013 93,273 4,878 (4,878) 120,286 Total 961,399 93,273 762,872 (762,872) 1,054,672 Operating income (loss) $ 309,633 (47,200) (519,164) 519,164 262,433 Equity in earnings (loss) of unconsolidated affiliates $ (128,055) — 19,077 (19,077) (128,055) Investments in unconsolidated affiliates $ 291,989 — 716,778 (716,778) 291,989 Segment assets $ 14,516,150 9,639 5,781,359 (5,781,359) 14,525,789 Capital expenditures for segment assets $ 311,611 — 67,983 (67,983) 311,611 |
Subsidiary Guarantors
Subsidiary Guarantors | 3 Months Ended |
Mar. 31, 2020 | |
Subsidiary Guarantors | |
Subsidiary Guarantors | (18) Subsidiary Guarantors Each of the Company’s wholly owned subsidiaries has fully and unconditionally guaranteed Antero Resources’ 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, 2019 and March 31, 2020, and the related Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2019 and 2020, and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2019 and 2020 present financial information for Antero Resources 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. The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company. Condensed Consolidating Balance Sheet (In thousands) Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Accounts receivable, net $ 46,419 — — — 46,419 Accounts receivable, related parties 125,000 299,450 — (299,450) 125,000 Accrued revenue 317,886 — — — 317,886 Derivative instruments 422,849 — — — 422,849 Other current assets 10,731 — — — 10,731 Total current assets 922,885 299,450 — (299,450) 922,885 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,368,854 — — — 1,368,854 Proved properties 11,859,817 — — — 11,859,817 Gathering systems and facilities 5,802 — — — 5,802 Other property and equipment 71,895 — — — 71,895 13,306,368 — — — 13,306,368 Less accumulated depletion, depreciation, and amortization (3,327,629) — — — (3,327,629) Property and equipment, net 9,978,739 — — — 9,978,739 Operating leases right-of-use assets 2,886,500 — — — 2,886,500 Derivative instruments 333,174 — — — 333,174 Investments in unconsolidated affiliates 243,048 812,129 — — 1,055,177 Investments in consolidated affiliates 812,129 — — (812,129) — Other assets 21,094 — — — 21,094 Total assets $ 15,197,569 1,111,579 — (1,111,579) 15,197,569 Liabilities and Equity Current liabilities: Accounts payable $ 14,498 — — — 14,498 Accounts payable, related parties 397,333 — — (299,450) 97,883 Accrued liabilities 400,850 — — — 400,850 Revenue distributions payable 207,988 — — — 207,988 Derivative instruments 6,721 — — — 6,721 Short-term lease liabilities 305,320 — — — 305,320 Other current liabilities 6,879 — — — 6,879 Total current liabilities 1,339,589 — — (299,450) 1,040,139 Long-term liabilities: Long-term debt 3,758,868 — — — 3,758,868 Deferred income tax liability 781,987 — — — 781,987 Derivative instruments 3,519 — — — 3,519 Long-term lease liabilities 2,583,678 — — — 2,583,678 Other liabilities 58,635 — — — 58,635 Total liabilities 8,526,276 — — (299,450) 8,226,826 Equity: Stockholders' equity: Common stock 2,959 — — — 2,959 Additional paid-in capital 5,600,714 1,341,780 — (812,129) 6,130,365 Accumulated earnings 1,067,620 (230,201) — — 837,419 Total stockholders' equity 6,671,293 1,111,579 — (812,129) 6,970,743 Total liabilities and equity $ 15,197,569 1,111,579 — (1,111,579) 15,197,569 Condensed Consolidating Balance Sheet Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Accounts receivable $ 91,944 — — — 91,944 Accounts receivable, related parties — 332,353 — (332,353) — Accrued revenue 201,320 — — — 201,320 Derivative instruments 816,444 — — — 816,444 Other current assets 10,313 — — — 10,313 Total current assets 1,120,021 332,353 — (332,353) 1,120,021 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,289,770 — — — 1,289,770 Proved properties 12,154,162 — — — 12,154,162 Gathering systems and facilities 5,802 — — — 5,802 Other property and equipment 72,312 — — — 72,312 13,522,046 — — — 13,522,046 Less accumulated depletion, depreciation, and amortization (3,527,306) — — — (3,527,306) Property and equipment, net 9,994,740 — — — 9,994,740 Operating leases right-of-use assets 2,814,539 — — — 2,814,539 Derivative instruments 284,461 — — — 284,461 Investments in unconsolidated affiliates 67,289 224,700 — — 291,989 Investments in consolidated affiliates 224,700 — — (224,700) — Other assets 20,039 — — — 20,039 Total assets $ 14,525,789 557,053 — (557,053) 14,525,789 Liabilities and Equity Current liabilities: Accounts payable $ 37,909 — — — 37,909 Accounts payable, related parties 421,247 — — (332,353) 88,894 Accrued liabilities 367,444 — — — 367,444 Revenue distributions payable 174,654 — — — 174,654 Short-term lease liabilities 295,658 — — — 295,658 Other current liabilities 7,315 — — — 7,315 Total current liabilities 1,304,227 — — (332,353) 971,874 Long-term liabilities: — Long-term debt 3,707,787 — — — 3,707,787 Deferred income tax liability 672,002 — — — 672,002 Derivative instruments 215 — — — 215 Long-term lease liabilities 2,520,939 — — 2,520,939 Other liabilities 60,432 — — — 60,432 Total liabilities 8,265,602 — — (332,353) 7,933,249 Equity: Stockholders' equity: — Common stock 2,689 — — — 2,689 Additional paid-in capital 4,974,162 1,341,780 — (224,700) 6,091,242 Accumulated earnings 1,283,336 (784,727) — — 498,609 Total stockholders' equity 6,260,187 557,053 — (224,700) 6,592,540 Total liabilities and equity $ 14,525,789 557,053 — (557,053) 14,525,789 Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended March 31, 2019 Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Revenue and other: Natural gas sales $ 657,266 — — — 657,266 Natural gas liquids sales 313,685 — — — 313,685 Oil sales 48,052 — — — 48,052 Commodity derivative fair value losses (77,368) — — — (77,368) Gathering, compression, water handling and treatment — — 218,360 (213,881) 4,479 Marketing 91,186 — — — 91,186 Other income 1,758 — — (1,651) 107 Total revenue and other 1,034,579 — 218,360 (215,532) 1,037,407 Operating expenses: Lease operating 42,969 — 64,818 (66,055) 41,732 Gathering, compression, processing, and transportation 535,015 — — (110,486) 424,529 Production and ad valorem taxes 34,738 — — 940 35,678 Marketing 163,084 — — — 163,084 Exploration 126 — — — 126 Impairment of oil and gas properties 81,244 — — — 81,244 Impairment of midstream assets — — 6,982 — 6,982 Depletion, depreciation, and amortization 218,494 — 21,707 — 240,201 Accretion of asset retirement obligations 913 — 63 — 976 General and administrative 49,908 — 18,793 (499) 68,202 Contract termination and rig stacking 8,360 — — — 8,360 Accretion of contingent acquisition consideration — — 1,928 (1,928) — Total operating expenses 1,134,851 — 114,291 (178,028) 1,071,114 Operating income (loss) (100,272) — 104,069 (37,504) (33,707) Other income (expenses): Equity in earnings of unconsolidated affiliates 589 1,228 12,264 — 14,081 Equity in earnings of affiliates 15,021 — — (15,021) — Interest expense, net (55,135) — (16,815) — (71,950) Gain on deconsolidation of Antero Midstream Partners LP 1,205,705 200,337 — — 1,406,042 Total other expenses 1,166,180 201,565 (4,551) (15,021) 1,348,173 Income before income taxes 1,065,908 201,565 99,518 (52,525) 1,314,466 Provision for income tax expense (288,710) — — — (288,710) Net income and comprehensive income including noncontrolling interests 777,198 201,565 99,518 (52,525) 1,025,756 Net income and comprehensive income attributable to noncontrolling interests — — — 46,993 46,993 Net income and comprehensive income attributable to Antero Resources Corporation $ 777,198 201,565 99,518 (99,518) 978,763 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Revenue and other: Natural gas sales $ 411,082 — — — 411,082 Natural gas liquids sales 257,673 — — — 257,673 Oil sales 35,646 — — — 35,646 Commodity derivative fair value gains 565,833 — — — 565,833 Marketing 46,073 — — — 46,073 Other income 798 — — — 798 Total revenue and other 1,317,105 — — — 1,317,105 Operating expenses: Lease operating 25,644 — — — 25,644 Gathering, compression, processing, and transportation 588,624 — — — 588,624 Production and ad valorem taxes 25,699 — — — 25,699 Marketing 93,273 — — — 93,273 Exploration 210 — — — 210 Impairment of oil and gas properties 89,220 — — — 89,220 Depletion, depreciation, and amortization 199,677 — — — 199,677 Accretion of asset retirement obligations 1,104 — — — 1,104 General and administrative 31,221 — — — 31,221 Total operating expenses 1,054,672 — — — 1,054,672 Operating income 262,433 — — — 262,433 Other income (expenses): Equity in earnings of unconsolidated affiliate (40,312) (87,743) — — (128,055) Impairment of equity investment (143,849) (466,783) — — (610,632) Interest expense, net (53,102) — — — (53,102) Gain on early extinguishment of debt 80,561 — — — 80,561 Total other expenses (156,702) (554,526) — — (711,228) Income (loss) before income taxes 105,731 (554,526) — — (448,795) Provision for income tax benefit 109,985 — — — 109,985 Net income (loss) and comprehensive income (loss) $ 215,716 (554,526) — — (338,810) Condensed Consolidating Statement of Cash Flows Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities: Net income including noncontrolling interests $ 777,198 201,565 99,518 (52,525) 1,025,756 Adjustments to reconcile net income to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 219,407 — 21,770 — 241,177 Impairments 81,244 — 6,982 — 88,226 Commodity derivative fair value losses 77,368 — — — 77,368 Gains on settled commodity derivatives 97,092 — — — 97,092 Deferred income tax expense 287,854 — — — 287,854 Equity-based compensation expense 6,426 — 2,477 — 8,903 Equity in earnings of consolidated subsidiaries (15,021) — — 15,021 — Equity in earnings of unconsolidated affiliates (589) (1,228) (12,264) — (14,081) Distributions of earnings from unconsolidated affiliates — — 12,605 — 12,605 Gain on deconsolidation of Antero Midstream Partners LP (1,205,705) (200,337) — — (1,406,042) Distributions from Antero Midstream Partners LP 46,469 — — (46,469) — Other 10,331 — 750 — 11,081 Changes in current assets and liabilities 102,830 — (10,573) 16,808 109,065 Net cash provided by operating activities 484,904 — 121,265 (67,165) 539,004 Cash flows provided by (used in) investing activities: Additions to unproved properties (27,463) — — — (27,463) Drilling and completion costs (389,252) — — 20,565 (368,687) 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 (2,066) — (1,062) — (3,128) Investments in unconsolidated affiliates — — (25,020) — (25,020) Proceeds from the Antero Midstream Partners LP Transactions 296,611 — — — 296,611 Change in other assets (1,118) — (3,357) — (4,475) Net cash used in investing activities (123,288) — (102,225) 20,696 (204,817) Cash flows provided by (used in) financing activities: Issuance of senior notes — — 650,000 — 650,000 Borrowings (repayments) on bank credit facility, net (360,379) — 90,379 — (270,000) 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 (450) — (29) — (479) Other 4 — (845) — (841) Net cash provided by (used in) financing activities (361,616) — 600,492 46,469 285,345 Effect of deconsolidation of Antero Midstream Partners LP — — (619,532) — (619,532) Net increase (decrease) in cash and cash equivalents — — — — — Cash and cash equivalents, beginning of period — — — — — Cash and cash equivalents, end of period $ — — — — — Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2020 (In thousands) Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities: Net income (loss) including noncontrolling interests $ 215,716 (554,526) — — (338,810) Adjustment to reconcile net income (loss) to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 200,781 — — — 200,781 Impairment of oil and gas properties 89,220 — — — 89,220 Commodity derivative fair value gains (565,833) — — — (565,833) Gains on settled commodity derivatives 210,926 — — — 210,926 Equity-based compensation expense 3,329 — — — 3,329 Deferred income tax benefit (109,985) — — — (109,985) Gain on early extinguishment of debt (80,561) — — — (80,561) Equity in loss of unconsolidated affiliates 40,312 87,743 — — 128,055 Impairment of equity investment 143,849 466,783 — — 610,632 Distributions/dividends of earnings from unconsolidated affiliates 42,756 — — — 42,756 Other 2,440 — — — 2,440 Changes in current assets and liabilities 7,727 — — — 7,727 Net cash provided by operating activities 200,677 — — — 200,677 Cash flows provided by (used in) investing activities: Additions to unproved properties (10,357) — — — (10,357) Drilling and completion costs (300,483) — — — (300,483) Additions to other property and equipment (771) — — — (771) Settlement of water earnout 125,000 — — — 125,000 Change in other assets (70) — — — (70) Net cash used in investing activities (186,681) — — — (186,681) Cash flows provided by (used in) financing activities: Repurchases of common stock (42,690) — — — (42,690) Repayment of senior notes (300,835) — — — (300,835) Borrowings on bank credit facility, net 330,000 — — — 330,000 Employee tax withholding for settlement of equity compensation awards (32) — — — (32) Other (439) — — — (439) Net cash used in financing activities (13,996) — — — (13,996) 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_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2019 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position, and accounting policies. The Company’s December 31, 2019 consolidated financial statements were included in Antero Resources’ 2019 Annual Report on Form 10-K, which was filed with the SEC. These 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, these 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, 2019 and March 31, 2020, and the results of its operations and its cash flows for the three months ended March 31, 2019 and 2020. 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 March 31, 2020 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, the impacts of COVID-19 and other factors. |
Principles of Consolidation | (b) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Resources Corporation, 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, par value $0.01 per share (the “Antero Midstream Corporation common stock”), representing an approximate 31 % interest in Antero Midstream Corporation. As a result, our controlling interest in Antero Midstream Partners was converted to 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 for the three months ended March 31, 2019 represents the interests in Antero Midstream Partners that were owned by the public prior to the Transactions, and the incentive distribution rights in Antero Midstream Partners. 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 Investment in unconsolidated affiliate on the Company’s unaudited condensed consolidated balance sheets. Income (loss) from investees that are accounted for under the equity method is included in Equity in earnings (loss) 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 or net loss, it is recorded in equity in earnings (loss) of unconsolidated affiliates in the statements of operations 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 Company’s balance sheet. The Company’s 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 |
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, liabilities and 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 storage capacity and transportation 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 December 31, 2019, the book overdraft included within accounts payable and revenue distributions payable were $7 million and $18 million, respectively. As of March 31, 2020, the book overdraft included within accounts payable and revenue distributions payable were $5 million and $21 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 three months ended March 31, 2019 and 2020. 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 oil and gas properties was $81 million and $89 million for the three months ended March 31, 2019 and 2020, 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. |
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 | (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. |
Natural Gas, NGLs, and Oil Revenues | (i) Natural Gas, NGLs, and Oil Revenues 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 other 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 incurred to gather, compress, process and transport natural gas are recorded as Gathering, compression, processing and transportation expense. 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 incurred to process and transport NGLs are recorded as Gathering, compression, processing, and transportation expense. 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. When applicable, the costs incurred to transport oil to a purchaser are recorded as Gathering, compression, processing and transportation expense. |
Marketing Revenues and Expenses | (j) Marketing Revenues and Expenses 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 contract price received from the purchaser. Fees generated from the sale of excess firm transportation marketed to third parties are included in Marketing revenue. Marketing expenses include the cost of purchased third-party natural gas and NGLs. The Company classifies firm transportation costs related to capacity contracted for in advance of having sufficient production and infrastructure to fully utilize the capacity (excess capacity) as marketing expenses since it is marketing this excess capacity to third parties. Firm transportation for which the Company has sufficient production capacity (even though it may not use the transportation capacity because of alternative delivery points with more favorable pricing) is considered unutilized capacity and is charged to transportation expense. |
Gathering compression, water handling and treatment revenue | (k) 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. Effective March 13, 2019, Antero Midstream Partners is no longer consolidated in Antero’s results. See Note 3 to the financial statements for further discussion on the Transactions and Note 17 to the 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 Partners or usage of Antero Midstream Partners’ gathering and compression systems. For gathering and compression revenue, Antero Midstream Partners satisfied its performance obligations and recognized revenue when low pressure volumes were delivered to a compressor station, high pressure volumes were delivered to a processing plant or transmission pipeline, and compression volumes were delivered to a high pressure line. Revenue was recognized based on the per Mcf gathering or compression fee charged by Antero Midstream Partners in accordance with the gathering and compression agreement. For water handling and treatment revenue, Antero Midstream Partners satisfied its performance obligations and recognized revenue when the fresh water volumes were delivered to the hydration unit of a specified well pad and the wastewater volumes were delivered to its wastewater treatment facility. For services contracted through third-party providers, Antero Midstream Partners’ performance obligation was satisfied when the services performed by the third-party providers were completed. Revenue was recognized based on the per barrel fresh water delivery or wastewater treatment fee charged by Antero Midstream Partners in accordance with the water services agreement. |
Industry Segments and Geographic Information | (l) 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. |
Earnings (loss) Per Common Share | (m) 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 March 31, 2019 2020 Basic weighted average number of shares outstanding 308,694 284,227 Add: Dilutive effect of restricted stock units 80 — Add: Dilutive effect of outstanding stock options — — Add: Dilutive effect of performance stock units 14 — Diluted weighted average number of shares outstanding 308,788 284,227 Weighted average number of outstanding equity awards excluded from calculation of diluted earnings per common share (1) Restricted stock units 1,445 5,952 Outstanding stock options 570 459 Performance stock units 1,721 1,621 (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. |
Treasury Share Retirement | (n) 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2019 2020 Basic weighted average number of shares outstanding 308,694 284,227 Add: Dilutive effect of restricted stock units 80 — Add: Dilutive effect of outstanding stock options — — Add: Dilutive effect of performance stock units 14 — Diluted weighted average number of shares outstanding 308,788 284,227 Weighted average number of outstanding equity awards excluded from calculation of diluted earnings per common share (1) Restricted stock units 1,445 5,952 Outstanding stock options 570 459 Performance stock units 1,721 1,621 (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. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue | |
Schedule of disaggregation of revenue | Revenue is disaggregated by type in the following table. The table also identifies which reportable segment that the disaggregated revenues relate. For more information on reportable segments, see Note 17— Segment Information. Three months ended March 31, Segment to which (in thousands) 2019 2020 revenues relate Revenues from contracts with customers: Natural gas sales $ 657,266 411,082 Exploration and production Natural gas liquids sales (ethane) 35,516 26,796 Exploration and production Natural gas liquids sales (C3+ NGLs) 278,169 230,877 Exploration and production Oil sales 48,052 35,646 Exploration and production Gathering and compression (1) 3,972 — Equity method investment in AMC Water handling and treatment (1) 507 — Equity method investment in AMC Marketing 91,186 46,073 Marketing Total revenue from contracts with customers 1,114,668 750,474 Income (loss) from derivatives and other sources: (77,261) 566,631 Total revenue and other $ 1,037,407 1,317,105 (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) | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments. | |
Schedule of reconciliation of investments in unconsolidated affiliates | The following table is a reconciliation of investments in unconsolidated affiliates for the three months ended March 31, 2020 (in thousands): Antero Midstream Corporation Balance at December 31, 2019 $ 1,055,177 Equity in loss of unconsolidated affiliates (128,055) Distributions/dividends from unconsolidated affiliates (42,756) Impairment (1) (610,632) Elimination of intercompany profit 18,255 Balance at March 31, 2020 $ 291,989 (1) Other-than-temporary impairment in Antero Midstream Corporation recorded as of March 31, 2020 to reduce the carrying value to fair value. |
Schedule of summarized financial information of Antero Midstream Corporation | Balance Sheet December 31, March 31, (in thousands) 2019 2020 Current assets $ 108,558 151,372 Noncurrent assets 6,174,320 5,629,987 Total assets $ 6,282,878 5,781,359 Current liabilities $ 242,084 83,560 Noncurrent liabilities 2,897,380 3,108,844 Stockholders' equity 3,143,414 2,588,955 Total liabilities and equity $ 6,282,878 5,781,359 Statement of Operations For the period March 13, 2019 Three months through ended (in thousands) March 31, 2019 March 31, 2020 Revenues $ 54,108 243,708 Operating expenses 30,029 762,872 Income (loss) from operations $ 24,079 (519,164) Net income (loss) attributable to the equity method investment $ 23,197 (392,933) |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, March 31, 2019 2020 Capital expenditures $ 105,706 85,363 Gathering, compression, processing, and transportation expenses 134,153 154,039 Marketing expenses 52,612 28,014 Interest expense, net 30,834 51,281 Other 77,545 48,747 Total accrued liabilities $ 400,850 367,444 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt. | |
Schedule of long-term debt | Long-term debt as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, March 31, 2019 2020 Credit Facility (a) $ 552,000 882,000 5.375% senior notes due 2021 (b) 952,500 730,283 5.125% senior notes due 2022 (c) 923,041 761,337 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 791 600 Net unamortized debt issuance costs (19,464) (16,433) Long-term debt $ 3,758,868 3,707,787 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Asset Retirement Obligations | |
Schedule of reconciliation of asset retirement obligations | The following is a reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2020 (in thousands): Asset retirement obligations—December 31, 2019 $ 54,845 Obligations incurred 773 Accretion expense 1,104 Asset retirement obligations—March 31, 2020 $ 56,722 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2019 and 2020 (in thousands): Three months ended March 31, 2019 2020 Restricted stock unit awards $ 3,972 1,878 Stock options 344 — Performance share unit awards 2,959 922 Antero Midstream Partners phantom unit awards (1) 1,125 160 Equity awards issued to directors 503 369 Total expense $ 8,903 3,329 (1) Partners to Antero Resources. Antero Resources 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 Resources’ labor costs. Through March 12, 2019, the total amount of equity-based compensation is included in the consolidated financial statements of Antero Resources; and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Partners is no longer reflected in Antero Resources 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 average Aggregate Number of grant date intrinsic value shares fair value (in thousands) Total awarded and unvested—December 31, 2019 2,370,575 $ 12.81 $ 6,756 Granted 4,644,934 $ 2.39 Vested (191,216) $ 5.04 Forfeited (69,293) $ 13.07 Total awarded and unvested—March 31, 2020 6,755,000 $ 5.86 $ 4,816 |
Summary of stock option activity | Weighted Weighted average average remaining Intrinsic Stock exercise contractual value options price life (in thousands) Outstanding at December 31, 2019 467,633 $ 50.64 5.05 $ — Granted — $ — Exercised — $ — Forfeited (8,339) $ 52.36 Expired — $ — Outstanding at March 31, 2020 459,294 $ 50.61 4.77 $ — Vested or expected to vest as of March 31, 2020 459,294 $ 50.61 4.77 $ — Exercisable at March 31, 2020 459,294 $ 50.61 4.77 $ — |
Schedule of outstanding unvested restricted stock awards vesting schedule | Weighted average Aggregate Number of grant date intrinsic value units fair value (in thousands) Total awarded and unvested—December 31, 2019 657,757 $ 14.71 $ 4,992 Granted — $ — Vested (10,120) $ 15.81 Forfeited (9,496) $ 13.75 Total awarded and unvested—March 31, 2020 638,141 $ 14.70 $ 1,340 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments. | |
Schedule of outstanding commodity derivatives | Natural Gas Weighted Natural gas Liquids Oil average index MMBtu/day Bbls/day Bbls/day price Nine months ending December 31, 2020: NYMEX ($/MMBtu) 2,227,500 — $ 2.87 ARA Propane ($/Gal) — 10,352 — 0.65 NYMEX-WTI ($/Bbl) — — 26,000 55.63 Total 2,227,500 10,352 26,000 Year ending December 31, 2021: NYMEX ($/MMBtu) 2,400,000 — $ 2.80 NYMEX-WTI ($/Bbl) — 3,000 55.16 Total 2,400,000 3,000 Year ending December 31, 2022: NYMEX ($/MMBtu) 687,500 $ 2.48 Year ending December 31, 2023: NYMEX ($/MMBtu) 50,000 $ 2.39 |
Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO | Natural Gas Weighted Natural gas Liquids average hedged MMBtu/day Bbls/day differential Three months ending June 30, 2020: ARA to Mont Belvieu Non-TET ($/Gal) — 1,602 $ 0.22 Nine months ending December 31, 2020: NYMEX to TCO ($/MMBtu) 60,000 $ 0.353 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 |
Schedule 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. | Weighted Gas average Liquids Payout Bbls/day Ratio Nine months ending December 31, 2020: Mont Belvieu Natural Gasoline to NYMEX-WTI 18,800 80 % Year ending December 31, 2021: Mont Belvieu Natural Gasoline to NYMEX-WTI 18,650 78 % |
Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes | December 31, 2019 March 31, 2020 Balance sheet Fair value Balance sheet Fair value location (In thousands) location (In thousands) Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments $ 422,849 Derivative instruments $ 816,444 Commodity derivatives—noncurrent Derivative instruments 333,174 Derivative instruments 284,461 Total asset derivatives 756,023 1,100,905 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments 6,721 Derivative instruments — Commodity derivatives—noncurrent Derivative instruments 3,519 Derivative instruments 215 Total liability derivatives 10,240 215 Net derivatives $ 745,783 $ 1,100,690 |
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, 2019 March 31, 2020 Gross Gross amounts Net amounts of Gross Gross amounts Net amounts of amounts on offset on assets (liabilities) amounts on offset on assets (liabilities) balance sheet balance sheet on balance sheet balance sheet balance sheet on balance sheet Commodity derivative assets $ 882,817 (126,794) 756,023 $ 1,193,046 (92,141) 1,100,905 Commodity derivative liabilities $ (137,034) 126,794 (10,240) $ (92,356) 92,141 (215) |
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 for the three months ended March 31, 2019 and 2020 (in thousands): Statement of operations Three months ended March 31, location 2019 2020 Commodity derivative fair value gains (losses) Revenue $ (77,368) 565,833 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Summary of supplemental balance sheet information related to leases | The Company’s lease assets as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, 2019 March 31, 2020 Operating Leases Finance Leases Operating Leases Finance Leases Right-of-use Assets: Processing plants $ 1,460,770 — $ 1,440,110 — Drilling rigs and completion services 71,662 — 56,353 — Gas gathering lines and compressor stations (1) 1,308,428 — 1,273,200 — Office space 40,491 — 39,631 — Vehicles 4,983 2,328 4,232 2,058 Other office and field equipment 166 170 1,013 — Total right-of-use assets $ 2,886,500 2,498 $ 2,814,539 2,058 (2) (1) Gas gathering lines and compressor stations leases includes $1.1 billion related to Antero Midstream Corporation as of December 31, 2019 and March 31, 2020. See “—Related party lease disclosure” for additional discussion. (2) Financing lease assets are recorded net of accumulated amortization of $9 million and $3 million as of December 31, 2019 and March 31, 2020, respectively. The Company’s lease liabilities as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands): December 31, 2019 March 31, 2020 Operating Leases Finance Leases Operating Leases Finance Leases Location on the balance sheet: Short-term lease liabilities $ 304,397 923 $ 294,535 1,123 Long-term lease liabilities 2,582,103 1,575 2,520,004 935 Total lease liabilities $ 2,886,500 2,498 $ 2,814,539 2,058 |
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 months ended March 31, 2019 and 2020 (in thousands): Three months ended Statement of Operations Location March 31, 2019 March 31, 2020 Gathering, compression, processing, and transportation $ 187,847 352,643 General and administrative 2,726 2,881 Contract termination and rig stacking 8,019 — Total lease expense $ 198,592 355,524 |
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 months ended March 31, 2019 and March 31, 2020 (in thousands): Three months ended March 31, 2019 Three months ended March 31, 2020 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 $ 150,320 — $ 358,039 — Investing cash out flows related to operating leases 52,366 — 27,534 — Financing cash out flows related to financing leases — 791 — 439 $ 202,686 791 $ 385,573 439 Noncash activities: Right of use assets obtained in exchange for operating lease liabilities $ 3,345,549 — $ 9,382 — 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 March 31, 2020 (in thousands): (in thousands) Operating Leases Financing Leases Total Remainder of 2020 $ 464,093 978 465,071 2021 558,241 844 559,085 2022 543,326 321 543,647 2023 538,771 7 538,778 2024 530,003 — 530,003 2025 457,326 — 457,326 Thereafter 1,394,412 — 1,394,412 Total lease payments 4,486,172 2,150 4,488,322 Less: imputed interest (1,671,633) (92) (1,671,725) Total $ 2,814,539 2,058 2,816,597 |
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 March 31, 2020 (in thousands): (in thousands) Operating Leases Financing Leases Total Remainder of 2020 $ 464,093 978 465,071 2021 558,241 844 559,085 2022 543,326 321 543,647 2023 538,771 7 538,778 2024 530,003 — 530,003 2025 457,326 — 457,326 Thereafter 1,394,412 — 1,394,412 Total lease payments 4,486,172 2,150 4,488,322 Less: imputed interest (1,671,633) (92) (1,671,725) Total $ 2,814,539 2,058 2,816,597 |
Summary of weighted-average remaining lease term and discount rate | Operating Leases Finance Leases Weighted-average remaining lease term: 8.5 years 2.0 years Weighted-average discount rate: 11.6 % 6.1 % |
Commitments (Tables)
Commitments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 (in thousands). Processing, Firm gathering and Land payment Operating and Imputed Interest transportation compression obligations Financing Leases for Leases (a) (b) (c) (d) (d) Total Remainder of 2020 $ 832,753 42,144 2,411 228,796 236,275 1,342,379 2021 1,076,995 55,780 2,859 269,661 289,424 1,694,719 2022 1,034,275 53,606 328 284,665 258,982 1,631,856 2023 1,057,150 58,565 — 313,475 225,303 1,654,493 2024 1,017,104 58,687 — 342,348 187,655 1,605,794 2025 977,891 47,385 — 308,465 148,861 1,482,602 Thereafter 6,930,640 105,138 — 1,069,187 325,225 8,430,190 Total $ 12,926,808 421,305 5,598 2,816,597 1,671,725 17,842,033 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2019 and 2020 (in thousands): Equity Method Elimination of Investment in intersegment Exploration Antero transactions and and Midstream unconsolidated Consolidated production Marketing Corporation affiliates total Three months ended March 31, 2019: Sales and revenues: Third-party $ 941,635 91,186 4 — 1,032,825 Intersegment 1,758 — 54,104 (51,280) 4,582 Total $ 943,393 91,186 54,108 (51,280) 1,037,407 Operating expenses: Lease operating $ 42,969 — 11,815 (13,052) 41,732 Gathering, compression, processing, and transportation 535,015 — 2,935 (113,421) 424,529 Impairment of oil and gas properties 81,244 — — — 81,244 Impairment of midstream assets — — 6,982 — 6,982 Depletion, depreciation, and amortization 218,494 — 7,650 14,057 240,201 General and administrative 49,908 — 2,184 16,110 68,202 Other 44,137 163,084 1,291 (288) 208,224 Total 971,767 163,084 32,857 (96,594) 1,071,114 Operating income (loss) $ (28,374) (71,898) 21,251 45,314 (33,707) Equity in earnings of unconsolidated affiliates $ 1,817 — 2,880 9,384 14,081 Investments in unconsolidated affiliates $ 1,989,612 — 1,153,943 (1,153,943) 1,989,612 Segment assets $ 17,263,369 25,361 6,660,325 (6,660,325) 17,288,730 Capital expenditures for segment assets $ 399,278 — 16,005 56,650 471,933 Equity Method Elimination of Investment in intersegment Exploration Antero transactions and and Midstream unconsolidated Consolidated production Marketing Corporation affiliates total Three months ended March 31, 2020: Sales and revenues: Third-party $ 1,270,234 46,073 — — 1,316,307 Intersegment 798 — 243,708 (243,708) 798 Total $ 1,271,032 46,073 243,708 (243,708) 1,317,105 Operating expenses: Lease operating $ 25,644 — — — 25,644 Gathering, compression, processing, and transportation 588,624 — 55,908 (55,908) 588,624 Impairment of oil and gas properties 89,220 — — — 89,220 Impairment of midstream assets — — 664,544 (664,544) — Depletion, depreciation, and amortization 199,677 — 27,343 (27,343) 199,677 General and administrative 31,221 — 10,199 (10,199) 31,221 Other 27,013 93,273 4,878 (4,878) 120,286 Total 961,399 93,273 762,872 (762,872) 1,054,672 Operating income (loss) $ 309,633 (47,200) (519,164) 519,164 262,433 Equity in earnings (loss) of unconsolidated affiliates $ (128,055) — 19,077 (19,077) (128,055) Investments in unconsolidated affiliates $ 291,989 — 716,778 (716,778) 291,989 Segment assets $ 14,516,150 9,639 5,781,359 (5,781,359) 14,525,789 Capital expenditures for segment assets $ 311,611 — 67,983 (67,983) 311,611 |
Subsidiary Guarantors (Tables)
Subsidiary Guarantors (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Subsidiary Guarantors | |
Schedule of condensed consolidating balance sheets | Condensed Consolidating Balance Sheet (In thousands) Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Accounts receivable, net $ 46,419 — — — 46,419 Accounts receivable, related parties 125,000 299,450 — (299,450) 125,000 Accrued revenue 317,886 — — — 317,886 Derivative instruments 422,849 — — — 422,849 Other current assets 10,731 — — — 10,731 Total current assets 922,885 299,450 — (299,450) 922,885 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,368,854 — — — 1,368,854 Proved properties 11,859,817 — — — 11,859,817 Gathering systems and facilities 5,802 — — — 5,802 Other property and equipment 71,895 — — — 71,895 13,306,368 — — — 13,306,368 Less accumulated depletion, depreciation, and amortization (3,327,629) — — — (3,327,629) Property and equipment, net 9,978,739 — — — 9,978,739 Operating leases right-of-use assets 2,886,500 — — — 2,886,500 Derivative instruments 333,174 — — — 333,174 Investments in unconsolidated affiliates 243,048 812,129 — — 1,055,177 Investments in consolidated affiliates 812,129 — — (812,129) — Other assets 21,094 — — — 21,094 Total assets $ 15,197,569 1,111,579 — (1,111,579) 15,197,569 Liabilities and Equity Current liabilities: Accounts payable $ 14,498 — — — 14,498 Accounts payable, related parties 397,333 — — (299,450) 97,883 Accrued liabilities 400,850 — — — 400,850 Revenue distributions payable 207,988 — — — 207,988 Derivative instruments 6,721 — — — 6,721 Short-term lease liabilities 305,320 — — — 305,320 Other current liabilities 6,879 — — — 6,879 Total current liabilities 1,339,589 — — (299,450) 1,040,139 Long-term liabilities: Long-term debt 3,758,868 — — — 3,758,868 Deferred income tax liability 781,987 — — — 781,987 Derivative instruments 3,519 — — — 3,519 Long-term lease liabilities 2,583,678 — — — 2,583,678 Other liabilities 58,635 — — — 58,635 Total liabilities 8,526,276 — — (299,450) 8,226,826 Equity: Stockholders' equity: Common stock 2,959 — — — 2,959 Additional paid-in capital 5,600,714 1,341,780 — (812,129) 6,130,365 Accumulated earnings 1,067,620 (230,201) — — 837,419 Total stockholders' equity 6,671,293 1,111,579 — (812,129) 6,970,743 Total liabilities and equity $ 15,197,569 1,111,579 — (1,111,579) 15,197,569 Condensed Consolidating Balance Sheet Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Accounts receivable $ 91,944 — — — 91,944 Accounts receivable, related parties — 332,353 — (332,353) — Accrued revenue 201,320 — — — 201,320 Derivative instruments 816,444 — — — 816,444 Other current assets 10,313 — — — 10,313 Total current assets 1,120,021 332,353 — (332,353) 1,120,021 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 1,289,770 — — — 1,289,770 Proved properties 12,154,162 — — — 12,154,162 Gathering systems and facilities 5,802 — — — 5,802 Other property and equipment 72,312 — — — 72,312 13,522,046 — — — 13,522,046 Less accumulated depletion, depreciation, and amortization (3,527,306) — — — (3,527,306) Property and equipment, net 9,994,740 — — — 9,994,740 Operating leases right-of-use assets 2,814,539 — — — 2,814,539 Derivative instruments 284,461 — — — 284,461 Investments in unconsolidated affiliates 67,289 224,700 — — 291,989 Investments in consolidated affiliates 224,700 — — (224,700) — Other assets 20,039 — — — 20,039 Total assets $ 14,525,789 557,053 — (557,053) 14,525,789 Liabilities and Equity Current liabilities: Accounts payable $ 37,909 — — — 37,909 Accounts payable, related parties 421,247 — — (332,353) 88,894 Accrued liabilities 367,444 — — — 367,444 Revenue distributions payable 174,654 — — — 174,654 Short-term lease liabilities 295,658 — — — 295,658 Other current liabilities 7,315 — — — 7,315 Total current liabilities 1,304,227 — — (332,353) 971,874 Long-term liabilities: — Long-term debt 3,707,787 — — — 3,707,787 Deferred income tax liability 672,002 — — — 672,002 Derivative instruments 215 — — — 215 Long-term lease liabilities 2,520,939 — — 2,520,939 Other liabilities 60,432 — — — 60,432 Total liabilities 8,265,602 — — (332,353) 7,933,249 Equity: Stockholders' equity: — Common stock 2,689 — — — 2,689 Additional paid-in capital 4,974,162 1,341,780 — (224,700) 6,091,242 Accumulated earnings 1,283,336 (784,727) — — 498,609 Total stockholders' equity 6,260,187 557,053 — (224,700) 6,592,540 Total liabilities and equity $ 14,525,789 557,053 — (557,053) 14,525,789 |
Schedule of condensed consolidating statement of operations and comprehensive income | Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended March 31, 2019 Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Revenue and other: Natural gas sales $ 657,266 — — — 657,266 Natural gas liquids sales 313,685 — — — 313,685 Oil sales 48,052 — — — 48,052 Commodity derivative fair value losses (77,368) — — — (77,368) Gathering, compression, water handling and treatment — — 218,360 (213,881) 4,479 Marketing 91,186 — — — 91,186 Other income 1,758 — — (1,651) 107 Total revenue and other 1,034,579 — 218,360 (215,532) 1,037,407 Operating expenses: Lease operating 42,969 — 64,818 (66,055) 41,732 Gathering, compression, processing, and transportation 535,015 — — (110,486) 424,529 Production and ad valorem taxes 34,738 — — 940 35,678 Marketing 163,084 — — — 163,084 Exploration 126 — — — 126 Impairment of oil and gas properties 81,244 — — — 81,244 Impairment of midstream assets — — 6,982 — 6,982 Depletion, depreciation, and amortization 218,494 — 21,707 — 240,201 Accretion of asset retirement obligations 913 — 63 — 976 General and administrative 49,908 — 18,793 (499) 68,202 Contract termination and rig stacking 8,360 — — — 8,360 Accretion of contingent acquisition consideration — — 1,928 (1,928) — Total operating expenses 1,134,851 — 114,291 (178,028) 1,071,114 Operating income (loss) (100,272) — 104,069 (37,504) (33,707) Other income (expenses): Equity in earnings of unconsolidated affiliates 589 1,228 12,264 — 14,081 Equity in earnings of affiliates 15,021 — — (15,021) — Interest expense, net (55,135) — (16,815) — (71,950) Gain on deconsolidation of Antero Midstream Partners LP 1,205,705 200,337 — — 1,406,042 Total other expenses 1,166,180 201,565 (4,551) (15,021) 1,348,173 Income before income taxes 1,065,908 201,565 99,518 (52,525) 1,314,466 Provision for income tax expense (288,710) — — — (288,710) Net income and comprehensive income including noncontrolling interests 777,198 201,565 99,518 (52,525) 1,025,756 Net income and comprehensive income attributable to noncontrolling interests — — — 46,993 46,993 Net income and comprehensive income attributable to Antero Resources Corporation $ 777,198 201,565 99,518 (99,518) 978,763 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Revenue and other: Natural gas sales $ 411,082 — — — 411,082 Natural gas liquids sales 257,673 — — — 257,673 Oil sales 35,646 — — — 35,646 Commodity derivative fair value gains 565,833 — — — 565,833 Marketing 46,073 — — — 46,073 Other income 798 — — — 798 Total revenue and other 1,317,105 — — — 1,317,105 Operating expenses: Lease operating 25,644 — — — 25,644 Gathering, compression, processing, and transportation 588,624 — — — 588,624 Production and ad valorem taxes 25,699 — — — 25,699 Marketing 93,273 — — — 93,273 Exploration 210 — — — 210 Impairment of oil and gas properties 89,220 — — — 89,220 Depletion, depreciation, and amortization 199,677 — — — 199,677 Accretion of asset retirement obligations 1,104 — — — 1,104 General and administrative 31,221 — — — 31,221 Total operating expenses 1,054,672 — — — 1,054,672 Operating income 262,433 — — — 262,433 Other income (expenses): Equity in earnings of unconsolidated affiliate (40,312) (87,743) — — (128,055) Impairment of equity investment (143,849) (466,783) — — (610,632) Interest expense, net (53,102) — — — (53,102) Gain on early extinguishment of debt 80,561 — — — 80,561 Total other expenses (156,702) (554,526) — — (711,228) Income (loss) before income taxes 105,731 (554,526) — — (448,795) Provision for income tax benefit 109,985 — — — 109,985 Net income (loss) and comprehensive income (loss) $ 215,716 (554,526) — — (338,810) |
Schedule of condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities: Net income including noncontrolling interests $ 777,198 201,565 99,518 (52,525) 1,025,756 Adjustments to reconcile net income to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 219,407 — 21,770 — 241,177 Impairments 81,244 — 6,982 — 88,226 Commodity derivative fair value losses 77,368 — — — 77,368 Gains on settled commodity derivatives 97,092 — — — 97,092 Deferred income tax expense 287,854 — — — 287,854 Equity-based compensation expense 6,426 — 2,477 — 8,903 Equity in earnings of consolidated subsidiaries (15,021) — — 15,021 — Equity in earnings of unconsolidated affiliates (589) (1,228) (12,264) — (14,081) Distributions of earnings from unconsolidated affiliates — — 12,605 — 12,605 Gain on deconsolidation of Antero Midstream Partners LP (1,205,705) (200,337) — — (1,406,042) Distributions from Antero Midstream Partners LP 46,469 — — (46,469) — Other 10,331 — 750 — 11,081 Changes in current assets and liabilities 102,830 — (10,573) 16,808 109,065 Net cash provided by operating activities 484,904 — 121,265 (67,165) 539,004 Cash flows provided by (used in) investing activities: Additions to unproved properties (27,463) — — — (27,463) Drilling and completion costs (389,252) — — 20,565 (368,687) 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 (2,066) — (1,062) — (3,128) Investments in unconsolidated affiliates — — (25,020) — (25,020) Proceeds from the Antero Midstream Partners LP Transactions 296,611 — — — 296,611 Change in other assets (1,118) — (3,357) — (4,475) Net cash used in investing activities (123,288) — (102,225) 20,696 (204,817) Cash flows provided by (used in) financing activities: Issuance of senior notes — — 650,000 — 650,000 Borrowings (repayments) on bank credit facility, net (360,379) — 90,379 — (270,000) 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 (450) — (29) — (479) Other 4 — (845) — (841) Net cash provided by (used in) financing activities (361,616) — 600,492 46,469 285,345 Effect of deconsolidation of Antero Midstream Partners LP — — (619,532) — (619,532) Net increase (decrease) in cash and cash equivalents — — — — — Cash and cash equivalents, beginning of period — — — — — Cash and cash equivalents, end of period $ — — — — — Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2020 (In thousands) Parent Guarantor Non-Guarantor (Antero) Subsidiaries Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities: Net income (loss) including noncontrolling interests $ 215,716 (554,526) — — (338,810) Adjustment to reconcile net income (loss) to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 200,781 — — — 200,781 Impairment of oil and gas properties 89,220 — — — 89,220 Commodity derivative fair value gains (565,833) — — — (565,833) Gains on settled commodity derivatives 210,926 — — — 210,926 Equity-based compensation expense 3,329 — — — 3,329 Deferred income tax benefit (109,985) — — — (109,985) Gain on early extinguishment of debt (80,561) — — — (80,561) Equity in loss of unconsolidated affiliates 40,312 87,743 — — 128,055 Impairment of equity investment 143,849 466,783 — — 610,632 Distributions/dividends of earnings from unconsolidated affiliates 42,756 — — — 42,756 Other 2,440 — — — 2,440 Changes in current assets and liabilities 7,727 — — — 7,727 Net cash provided by operating activities 200,677 — — — 200,677 Cash flows provided by (used in) investing activities: Additions to unproved properties (10,357) — — — (10,357) Drilling and completion costs (300,483) — — — (300,483) Additions to other property and equipment (771) — — — (771) Settlement of water earnout 125,000 — — — 125,000 Change in other assets (70) — — — (70) Net cash used in investing activities (186,681) — — — (186,681) Cash flows provided by (used in) financing activities: Repurchases of common stock (42,690) — — — (42,690) Repayment of senior notes (300,835) — — — (300,835) Borrowings on bank credit facility, net 330,000 — — — 330,000 Employee tax withholding for settlement of equity compensation awards (32) — — — (32) Other (439) — — — (439) Net cash used in financing activities (13,996) — — — (13,996) 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 ($) $ / shares in Units, $ in Millions | Mar. 11, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 12, 2019 |
Basis of Presentation | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Accounts Payable | ||||
Basis of Presentation | ||||
Bank Overdrafts | $ 5 | $ 7 | ||
Revenue distributions payable | ||||
Basis of Presentation | ||||
Bank Overdrafts | $ 21 | $ 18 | ||
Antero Midstream Corporation | ||||
Basis of Presentation | ||||
Common stock, par value (in dollars per share) | $ 0.01 | |||
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) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary of Significant Accounting Policies | ||
Depreciation expense | $ 199,677 | $ 240,201 |
Oil and Gas Properties | ||
Exploration | 0 | 0 |
Impairment of oil and gas properties | $ 89,220 | 81,244 |
Impairment of midstream assets | $ 6,982 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - EPS and New Accounting Principle (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings per share | ||
Basic weighted average number of shares outstanding | 284,227 | 308,694 |
Diluted weighted average number of shares outstanding | 284,227 | 308,788 |
Restricted stock and restricted stock unit | ||
Earnings per share | ||
Add: Dilutive effect of non-vested restricted stock units | 80 | |
Weighted Average Anti-dilutive Awards | 5,952 | 1,445 |
Stock options | ||
Earnings per share | ||
Weighted Average Anti-dilutive Awards | 459 | 570 |
Performance share unit awards | ||
Earnings per share | ||
Add: Dilutive effect of non-vested restricted stock units | 14 | |
Weighted Average Anti-dilutive Awards | 1,621 | 1,721 |
Deconsolidation of Antero Mid_2
Deconsolidation of Antero Midstream Partners LP - Narrative (Details) - USD ($) $ in Thousands | Mar. 12, 2019 | Mar. 31, 2019 | Mar. 13, 2019 |
Deconsolidation | |||
Cash received | $ 296,611 | ||
Antero Midstream Corporation | |||
Deconsolidation | |||
Cash received | $ 297,000 | ||
Shares of Antero Midstream's common stock received | 158,400,000 | ||
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 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue | ||
Revenue | $ 750,474 | $ 1,114,668 |
Revenue from derivatives and other sources | 566,631 | (77,261) |
Total revenue and other | 1,317,105 | 1,037,407 |
Natural gas sales | ||
Disaggregation of Revenue | ||
Revenue | 411,082 | 657,266 |
Oil sales | ||
Disaggregation of Revenue | ||
Revenue | 35,646 | 48,052 |
Gathering and compression | ||
Disaggregation of Revenue | ||
Revenue | 3,972 | |
Water handling and treatment | ||
Disaggregation of Revenue | ||
Revenue | 507 | |
Marketing | ||
Disaggregation of Revenue | ||
Revenue | 46,073 | 91,186 |
Other income | ||
Disaggregation of Revenue | ||
Revenue | 798 | 107 |
Exploration and production | Natural gas sales | ||
Disaggregation of Revenue | ||
Revenue | 411,082 | 657,266 |
Exploration and production | Natural gas liquids sales (ethane) | ||
Disaggregation of Revenue | ||
Revenue | 26,796 | 35,516 |
Exploration and production | Natural gas liquids sales (C3+ NGLs) | ||
Disaggregation of Revenue | ||
Revenue | 230,877 | 278,169 |
Exploration and production | Oil sales | ||
Disaggregation of Revenue | ||
Revenue | 35,646 | 48,052 |
Marketing | Marketing | ||
Disaggregation of Revenue | ||
Revenue | $ 46,073 | $ 91,186 |
Revenue - Transaction Price All
Revenue - Transaction Price Allocation and Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||
Original expected duration | true | |
Receivables from contracts with customers | $ 201 | $ 318 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 12, 2019 | |
Equity Method Investments | |||||
Impairment of equity investments | $ 610,632 | ||||
Investments in unconsolidated affiliates | |||||
Equity in earnings (loss) of unconsolidated affiliates | (128,055) | $ 14,081 | |||
Distributions/dividends from unconsolidated affiliates | (42,756) | $ (12,605) | |||
Impairment | $ (610,632) | ||||
Antero Midstream Corporation | |||||
Equity Method Investments | |||||
Ownership percentage | 29.00% | ||||
Antero Midstream Corporation | |||||
Equity Method Investments | |||||
Ownership percentage | 31.00% | ||||
Impairment of equity investments | $ 610,632 | ||||
Investments in unconsolidated affiliates | |||||
Balance at beginning of period | 1,055,177 | ||||
Equity in earnings (loss) of unconsolidated affiliates | (128,055) | ||||
Distributions/dividends from unconsolidated affiliates | (42,756) | ||||
Impairment | (610,632) | ||||
Elimination of intercompany profit | 18,255 | ||||
Balance at end of period | 291,989 | ||||
Balance Sheet | |||||
Current assets | 151,372 | $ 108,558 | |||
Noncurrent assets | 5,629,987 | 6,174,320 | |||
Total assets | 5,781,359 | 6,282,878 | |||
Current liabilities | 83,560 | 242,084 | |||
Noncurrent liabilities | 3,108,844 | 2,897,380 | |||
Stockholders' equity | 2,588,955 | 3,143,414 | |||
Total liabilities and equity | 5,781,359 | $ 6,282,878 | |||
Statement of Operations | |||||
Revenues | $ 54,108 | 243,708 | |||
Operating expenses | 30,029 | 762,872 | |||
Loss from operations | 24,079 | (519,164) | |||
Net loss attributable to the equity method investments | $ 23,197 | $ (392,933) |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities | ||
Capital expenditures | $ 85,363 | $ 105,706 |
Gathering, compression, processing, and transportation expenses | 154,039 | 134,153 |
Marketing expenses | 28,014 | 52,612 |
Interest expense, net | 51,281 | 30,834 |
Other | 48,747 | 77,545 |
Total accrued liabilities | $ 367,444 | $ 400,850 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||||
Mar. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Dec. 21, 2016 | Mar. 17, 2015 | Sep. 18, 2014 | May 06, 2014 | Nov. 05, 2013 | |
Long- term Debt | ||||||||
Net unamortized premium | $ 600 | $ 791 | ||||||
Net unamortized debt issuance costs | (16,433) | (19,464) | ||||||
Long-term debt | 3,707,787 | 3,758,868 | ||||||
Amount of debt repurchased | $ 383,000 | |||||||
Weighted average percentage discount on repurchases of debt | 21.00% | |||||||
Gain on extinguishment of debt repurchased | $ 80,561 | |||||||
Credit Facility | ||||||||
Long- term Debt | ||||||||
Long-term debt, gross | $ 882,000 | 552,000 | ||||||
Current borrowing base | $ 2,850,000 | |||||||
Lender commitments | $ 2,640,000 | |||||||
Time period prior to maturity date of senior notes as one option for maturity date of Credit Facility | 91 days | |||||||
Outstanding balance | $ 882,000 | $ 552,000 | ||||||
Weighted average interest rate (as a percent) | 2.57% | 3.28% | ||||||
Outstanding letters of credit | $ 730,000 | $ 623,000 | ||||||
Credit Facility | Minimum | Not Investment Grade Period | ||||||||
Long- term Debt | ||||||||
Basis points added to the reference rate | 0.75% | |||||||
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 | 0.625% | |||||||
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 | 2.75% | |||||||
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 | 2.25% | |||||||
Commitment fees on the unused portion during an Investment Grade period (as a percent) | 0.30% | |||||||
Credit Facility | NYFRB | Not Investment Grade Period | ||||||||
Long- term Debt | ||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||
Credit Facility | LIBOR | ||||||||
Long- term Debt | ||||||||
Floor rate (as a percent) | 1.00% | |||||||
Credit Facility | LIBOR | Not Investment Grade Period | ||||||||
Long- term Debt | ||||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||||
Credit Facility | Alternate Base Rate | ||||||||
Long- term Debt | ||||||||
Floor rate (as a percent) | 2.00% | |||||||
5.375% senior notes due 2021 | ||||||||
Long- term Debt | ||||||||
Long-term debt, gross | $ 730,283 | 952,500 | ||||||
Interest rate (as a percent) | 5.375% | 5.375% | ||||||
Senior notes issued | $ 1,000,000 | |||||||
Issue price as percentage of par value | 100.00% | |||||||
Redemption price | 100.00% | |||||||
Redemption price at which notes may be required to be repurchased in event of change of control | 101.00% | |||||||
Stand-alone revolving note | ||||||||
Long- term Debt | ||||||||
Maximum amount of the Credit Facility | $ 25,000 | |||||||
Outstanding balance | $ 0 | 0 | ||||||
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 | ||||||||
Long-term debt, gross | $ 761,337 | 923,041 | ||||||
Interest rate (as a percent) | 5.125% | 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 | ||||||||
Long-term debt, gross | $ 750,000 | 750,000 | ||||||
Interest rate (as a percent) | 5.625% | 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% | |||||||
5.00% senior notes due 2025 | ||||||||
Long- term Debt | ||||||||
Long-term debt, gross | $ 600,000 | $ 600,000 | ||||||
Long-term notes payable | $ 600,000 | |||||||
Interest rate (as a percent) | 5.00% | 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 | 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% |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Asset Retirement Obligations | ||
Asset retirement obligations - beginning of period | $ 54,845 | |
Obligations incurred | 773 | |
Revisions to prior estimates | 1,104 | |
Accretion expense | 1,104 | $ 976 |
Asset retirement obligations - end of period | $ 56,722 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Stock-based compensation expense | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Equity based compensation expense recognized | $ 3,329 | $ 8,903 | |
Antero Resources Corporation Long Term Incentive Plan Member | |||
Stock-based compensation expense | |||
Number of stock-based compensation awards authorized | 16,906,500 | ||
Number of shares available for future grant under the Plan | 1,742,720 | ||
Midstream Plan | |||
Stock-based compensation expense | |||
Number of stock-based compensation awards authorized | 10,000,000 | ||
Restricted stock awards | |||
Stock-based compensation expense | |||
Equity based compensation expense recognized | $ 1,878 | 3,972 | |
Stock options | |||
Stock-based compensation expense | |||
Equity based compensation expense recognized | 344 | ||
Performance share unit awards | |||
Stock-based compensation expense | |||
Equity based compensation expense recognized | 922 | 2,959 | |
Antero Midstream Partners Phantom Unit Awards | |||
Stock-based compensation expense | |||
Equity based compensation expense recognized | 160 | 1,125 | |
Equity awards issued to directors | |||
Stock-based compensation expense | |||
Equity based compensation expense recognized | $ 369 | $ 503 | |
Antero Midstream Corporation | Midstream Plan | |||
Stock-based compensation expense | |||
Conversion rate of units converted into restricted stock | 1.8926 | ||
Antero Midstream Corporation | Midstream Plan | Common Stock | |||
Stock-based compensation expense | |||
Conversion rate of units converted into restricted stock | 1 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock and RSU Awards (Details) - Restricted stock and restricted stock unit $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Number of shares | |
Total awarded and unvested at the beginning of the period (in shares) | shares | 2,370,575 |
Granted (in shares) | shares | 4,644,934 |
Vested (in shares) | shares | (191,216) |
Forfeited (in shares) | shares | (69,293) |
Total awarded and unvested at the end of the period (in shares) | shares | 6,755,000 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 12.81 |
Granted (in dollars per share) | $ / shares | 2.39 |
Vested (in dollars per share) | $ / shares | 5.04 |
Forfeited (in dollars per share) | $ / shares | 13.07 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 5.86 |
Aggregate intrinsic value | |
Total awarded and unvested at the beginning of the period | $ | $ 6,756 |
Total awarded and unvested at the end of the period | $ | 4,816 |
Additional equity compensation to be recognized over the remaining period | $ | $ 27,000 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 3 months 18 days |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Stock options | ||
Outstanding at the beginning of the period (in shares) | 467,633 | |
Options forfeited (in shares) | (8,339) | |
Outstanding at the end of the period (in shares) | 459,294 | 467,633 |
Vested or expected to vest (in shares) | 459,294 | |
Exercisable (in shares) | 459,294 | |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 50.64 | |
Options forfeited (in dollars per share) | 52.36 | |
Outstanding at the end of the period (in dollars per share) | 50.61 | $ 50.64 |
Vested or expected to vest (in dollars per share) | 50.61 | |
Exercisable (in dollars per share) | $ 50.61 | |
Weighted average remaining contractual life | ||
Outstanding | 4 years 9 months 7 days | 5 years 18 days |
Vested or expected to vest | 4 years 9 months 7 days | |
Exercisable | 4 years 9 months 7 days | |
Additional disclosures | ||
Unamortized equity based compensation expense | $ 0 |
Equity-Based Compensation - PSU
Equity-Based Compensation - PSU awards (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)tranche$ / sharesshares | |
Additional disclosures | |
Cash awards granted | $ 3.3 |
Number of tranches | tranche | 3 |
Cash awards accrued in other liabilities | $ 0.6 |
Performance share unit awards | |
Number of units | |
Total awarded and unvested at the end of the period (in shares) | shares | 2,537,283 |
Weighted average grant date fair value | |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 16.74 |
Additional disclosures | |
Additional equity compensation to be recognized over the remaining period | $ 14 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 1 year 7 months 6 days |
Equity-Based Compensation - Pha
Equity-Based Compensation - Phantom Unit Awards (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Antero Midstream Partners Phantom Unit Awards | |
Number of units | |
Total awarded and unvested at the beginning of the period (in shares) | 657,757 |
Vested (in shares) | (10,120) |
Forfeited (in shares) | (9,496) |
Total awarded and unvested at the end of the period (in shares) | 638,141 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 14.71 |
Vested (in dollars per share) | $ / shares | 15.81 |
Forfeited (in dollars per share) | $ / shares | 13.75 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 14.70 |
Aggregate intrinsic value | |
Outstanding at the beginning of the period | $ | $ 4,992 |
Outstanding at the end of the period | $ | 1,340 |
Additional equity compensation to be recognized over the remaining period | $ | $ 5,000 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 1 year 6 months |
Restricted stock and restricted stock unit | |
Number of units | |
Total awarded and unvested at the beginning of the period (in shares) | 2,370,575 |
Granted (in shares) | 4,644,934 |
Vested (in shares) | (191,216) |
Forfeited (in shares) | (69,293) |
Total awarded and unvested at the end of the period (in shares) | 6,755,000 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 12.81 |
Granted (in dollars per share) | $ / shares | 2.39 |
Vested (in dollars per share) | $ / shares | 5.04 |
Forfeited (in dollars per share) | $ / shares | 13.07 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 5.86 |
Aggregate intrinsic value | |
Additional equity compensation to be recognized over the remaining period | $ | $ 27,000 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 3 months 18 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 | Mar. 31, 2020 | Dec. 31, 2019 |
Recurring | Level 2 market data | ||
Financial Instruments | ||
Fair value of senior notes | $ 1.5 | $ 2.8 |
Derivative Instruments - Commod
Derivative Instruments - Commodity derivatives (Details) | 3 Months Ended |
Mar. 31, 2020MMBTU / d$ / MMBTU$ / galgalbbl | |
Swaps | NYMEX | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average index price | $ / MMBTU | 2.87 |
Swaps | NYMEX | Three Months Ending September 30 2020 | |
Derivative Instruments | |
Weighted average index price | $ / MMBTU | 2.48 |
Swaps | ARA Propane | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average index price | $ / MMBTU | 0.65 |
Swaps | ARA Propane | Three Months Ending September 30 2020 | |
Derivative Instruments | |
Weighted average index price | $ / gal | 2.39 |
Swaps | FEI Propane | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average index price | $ / MMBTU | 55.63 |
Swaps | Mont Belvieu Natural Gasoline Non-TET | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average index price | $ / MMBTU | 2.80 |
Swaps | NYMEX-WTI | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average index price | $ / MMBTU | 55.16 |
Swaps | Natural gas | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 2,400,000 |
Swaps | Natural gas | Year ending December 31, 2021 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 60,000 |
Swaps | Natural gas | Year ending December 31, 2022 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 50,000 |
Swaps | Natural gas | Year ending December 31, 2023 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 50,000 |
Swaps | Natural gas | NYMEX | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 2,227,500 |
Swaps | Natural gas | NYMEX | Three Months Ending September 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 687,500 |
Swaps | Natural gas | FEI Propane | Three Months Ending September 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 50,000 |
Swaps | Natural gas | Mont Belvieu Propane Non-TET | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 2,227,500 |
Swaps | Natural gas | Mont Belvieu Natural Gasoline Non-TET | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 2,400,000 |
Swaps | Natural gas liquids | ARA Propane | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | bbl | 10,352 |
Swaps | Natural gas liquids | Mont Belvieu Propane Non-TET | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | bbl | 10,352 |
Swaps | Oil | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | gal | 3,000 |
Swaps | Oil | FEI Propane | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | gal | 26,000 |
Swaps | Oil | Mont Belvieu Propane Non-TET | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | gal | 26,000 |
Swaps | Oil | NYMEX-WTI | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | gal | 3,000 |
Fixed price swap agreement | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 427,500 |
Fixed price ($/MMBtu) | $ / MMBTU | 2.77 |
Derivative Instruments (Details
Derivative Instruments (Details) | 3 Months Ended |
Mar. 31, 2020MMBTU / dbbl / dbblgal | |
Year ending December 31, 2021 | |
Derivative Instruments | |
Weighted average payout ratio | 0.515 |
Year ending December 31, 2022 | |
Derivative Instruments | |
Weighted average payout ratio | 0.525 |
Year ending December 31, 2023 | |
Derivative Instruments | |
Weighted average payout ratio | 0.530 |
Mont Belvieu Butane to European Butane CIF ARA Argus | Year ending December 31, 2020 | |
Derivative Instruments | |
Weighted average payout ratio | 0.414 |
NYMEX to TCO | Year ending December 31, 2020 | |
Derivative Instruments | |
Weighted average payout ratio | 0.353 |
ARA to Mont Belvieu Non-TET | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average payout ratio | 0.22 |
Mont Belvieu Index Price to WTI | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average payout ratio | 78 |
Mont Belvieu Propane to NYMEX-WTI | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Weighted average payout ratio | 80 |
Natural gas | Swaps | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 2,400,000 |
Natural gas | Swaps | Year ending December 31, 2021 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 60,000 |
Natural gas | Swaps | Year ending December 31, 2022 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 50,000 |
Natural gas | Swaps | Year ending December 31, 2023 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 50,000 |
Natural gas | Swaps | Mont Belvieu Butane to European Butane CIF ARA Argus | Year ending December 31, 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 40,000 |
Natural gas | Swaps | NYMEX to TCO | Year ending December 31, 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | 60,000 |
Oil | Swaps | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | gal | 3,000 |
Natural gas liquids | Swaps | ARA to Mont Belvieu Non-TET | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount (MMBtu/day) | bbl / d | 1,602 |
Natural gas liquids | Swaps | Mont Belvieu Index Price to WTI | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | bbl | 18,650 |
Natural gas liquids | Swaps | Mont Belvieu Propane to NYMEX-WTI | Three Months Ending June 30 2020 | |
Derivative Instruments | |
Notional amount | bbl | 18,800 |
Derivative Instruments - Fair v
Derivative Instruments - Fair value (Details) $ in Thousands | Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item |
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | $ 816,444 | $ 422,849 |
Noncurrent portion of fair value of derivative assets | 284,461 | 333,174 |
Current portion of fair value of derivative liabilities | 6,721 | |
Noncurrent portion of fair value of derivative liabilities | 215 | 3,519 |
Commodity derivative | ||
Fair value of derivative instruments | ||
Total asset derivatives | 1,100,905 | 756,023 |
Total liability derivatives | 215 | 10,240 |
Derivatives not designated as hedges for accounting purposes | ||
Fair value of derivative instruments | ||
Total asset derivatives | 1,100,905 | 756,023 |
Total liability derivatives | 215 | 10,240 |
Net derivatives | 1,100,690 | 745,783 |
Derivatives not designated as hedges for accounting purposes | Commodity derivative | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | 816,444 | 422,849 |
Noncurrent portion of fair value of derivative assets | 284,461 | 333,174 |
Current portion of fair value of derivative liabilities | 6,721 | |
Noncurrent portion of fair value of derivative liabilities | $ 215 | $ 3,519 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Commodity derivative assets | ||
Gross amounts on balance sheet | $ 1,193,046 | $ 882,817 |
Gross amounts offset on balance sheet | (92,141) | (126,794) |
Total asset derivatives | 1,100,905 | 756,023 |
Commodity derivative liabilities | ||
Gross amounts on balance sheet | (92,356) | (137,034) |
Gross amounts offset on balance sheet | 92,141 | 126,794 |
Total liability derivatives | $ (215) | $ (10,240) |
Derivative Instruments - Fair_2
Derivative Instruments - Fair value gains (losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary of realized and unrealized gains (losses) on derivative instruments | ||
Commodity derivative fair value gains (losses) | $ 565,833 | $ (77,368) |
Revenue | ||
Summary of realized and unrealized gains (losses) on derivative instruments | ||
Commodity derivative fair value gains (losses) | $ 565,833 | $ (77,368) |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2020 | |
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) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Lease Assets | ||
Operating leases right-of-use assets | $ 2,814,539 | $ 2,886,500 |
Finance leases, right of use assets | 2,058 | 2,498 |
Finance leases, accumulated amortization | 3,000 | 9,000 |
Short-term lease liabilities, operating leases | 294,535 | 304,397 |
Long-term lease liabilities, operating leases | 2,520,004 | 2,582,103 |
Total lease liabilities, operating leases | 2,814,539 | 2,886,500 |
Short-term lease liabilities, finance leases | 1,123 | 923 |
Long-term lease liabilities, finance leases | 935 | 1,575 |
Total | 2,058 | 2,498 |
Vehicles | ||
Lease Assets | ||
Operating leases right-of-use assets | 4,232 | 4,983 |
Finance leases, right of use assets | 2,058 | 2,328 |
Other office and field equipment | ||
Lease Assets | ||
Operating leases right-of-use assets | 1,013 | 166 |
Finance leases, right of use assets | 170 | |
Processing plants | ||
Lease Assets | ||
Operating leases right-of-use assets | 1,440,110 | 1,460,770 |
Drilling and completion rigs | ||
Lease Assets | ||
Operating leases right-of-use assets | 56,353 | 71,662 |
Gas gathering lines and compressor stations | ||
Lease Assets | ||
Operating leases right-of-use assets | 1,273,200 | 1,308,428 |
Gas gathering lines and compressor stations | Antero Midstream Corporation | ||
Lease Assets | ||
Finance leases, accumulated amortization | 1,100,000 | 1,100,000 |
Office space | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 39,631 | $ 40,491 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases | ||
Total lease expense | $ 355,524 | $ 198,592 |
Capitalized operating leases | 33,000 | 55,000 |
Short-term lease costs | 63,000 | 35,000 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash out flows related to operating leases | 358,039 | 150,320 |
Cash paid for amounts included in the measurement of lease liabilities: Investing cash out flows related to operating leases | 27,534 | 52,366 |
Cash paid for amounts included in the measurement of lease liabilities for operating leases | 385,573 | 202,686 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash out flows related to financing leases | 439 | 791 |
Cash paid for amounts included in the measurement of lease liabilities for finance leases | 439 | 791 |
Leased assets obtained in exchange for new operating lease liabilities | 9,382 | 3,345,549 |
Gathering, compression, water handling and treatment | ||
Leases | ||
Total lease expense | 352,643 | 187,847 |
General and administrative | ||
Leases | ||
Total lease expense | 2,881 | 2,726 |
Contract termination and rig stacking | ||
Leases | ||
Total lease expense | 8,019 | |
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) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Future minimum payments for operating lease liabilities | ||
Remainder of 2020 | $ 464,093 | |
2021 | 558,241 | |
2022 | 543,326 | |
2023 | 538,771 | |
2024 | 530,003 | |
2025 | 457,326 | |
Thereafter | 1,394,412 | |
Total lease payments | 4,486,172 | |
Less: imputed interest | (1,671,633) | |
Total lease liabilities, operating leases | 2,814,539 | $ 2,886,500 |
Future minimum payments for financing lease liabilities | ||
Remainder of 2020 | 978 | |
2021 | 844 | |
2022 | 321 | |
2023 | 7 | |
Total lease payments | 2,150 | |
Less: imputed interest | (92) | |
Total | 2,058 | $ 2,498 |
Future minimum payments for total lease liabilities | ||
Remainder of 2020 | 465,071 | |
2021 | 559,085 | |
2022 | 543,647 | |
2023 | 538,778 | |
2024 | 530,003 | |
2025 | 457,326 | |
Thereafter | 1,394,412 | |
Total lease payments | 4,488,322 | |
Less: imputed interest | (1,671,725) | |
Total | $ 2,816,597 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Mar. 31, 2020 |
Leases | |
Weighted-average remaining lease term: Operating lease | 8 years 6 months |
Weighted-average discount rate: Operating lease | 11.60% |
Weighted-average remaining lease term: Finance lease | 2 years |
Weighted-average discount rate: Finance lease | 6.10% |
Leases - Related party disclosu
Leases - Related party disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases | |||
Amount included within accounts payable, related parties | $ 88,894 | $ 97,883 | |
Antero Midstream Corporation | |||
Leases | |||
Utilizing capacity (as a percent) | 75.00% | ||
Payment of capacity (as a percent) | 70.00% | ||
Term of lease | 10 years | ||
Notice period | 180 days | ||
Rebate received | $ 12,000 | ||
Gathering and compression fees paid | 156,000 | $ 152,000 | |
Amount included within accounts payable, related parties | $ 60,000 |
Commitments (Details)
Commitments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Future minimum payments | |
Remainder of 2020 | $ 1,342,379 |
2021 | 1,694,719 |
2022 | 1,631,856 |
2023 | 1,654,493 |
2024 | 1,605,794 |
2025 | 1,482,602 |
Thereafter | 8,430,190 |
Total | 17,842,033 |
Firm transportation | |
Future minimum payments | |
Remainder of 2020 | 832,753 |
2021 | 1,076,995 |
2022 | 1,034,275 |
2023 | 1,057,150 |
2024 | 1,017,104 |
2025 | 977,891 |
Thereafter | 6,930,640 |
Total | 12,926,808 |
Gas processing, gathering and compression | |
Future minimum payments | |
Remainder of 2020 | 42,144 |
2021 | 55,780 |
2022 | 53,606 |
2023 | 58,565 |
2024 | 58,687 |
2025 | 47,385 |
Thereafter | 105,138 |
Total | 421,305 |
Land payment obligations | |
Future minimum payments | |
Remainder of 2020 | 2,411 |
2021 | 2,859 |
2022 | 328 |
Total | 5,598 |
Operating and Financing Leases | |
Future minimum payments | |
Remainder of 2020 | 228,796 |
2021 | 269,661 |
2022 | 284,665 |
2023 | 313,475 |
2024 | 342,348 |
2025 | 308,465 |
Thereafter | 1,069,187 |
Total | 2,816,597 |
Imputed Interest for Leases | |
Future minimum payments | |
Remainder of 2020 | 236,275 |
2021 | 289,424 |
2022 | 258,982 |
2023 | 225,303 |
2024 | 187,655 |
2025 | 148,861 |
Thereafter | 325,225 |
Total | $ 1,671,725 |
Contingencies (Details)
Contingencies (Details) | Jun. 20, 2019USD ($) | Feb. 01, 2018MMBTU / d | Jan. 31, 2018MMBTU / d | Jan. 31, 2018MMBTU / d | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Nov. 30, 2017MMBTU / d | Jul. 31, 2017MMBTU / d | Dec. 31, 2019USD ($) | Nov. 30, 2018MMBTU / d | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Contingencies | ||||||||||||
Revenue | $ 750,474,000 | $ 1,114,668,000 | ||||||||||
Production and ad valorem taxes | 25,699,000 | 35,678,000 | ||||||||||
Interest | (53,102,000) | (71,950,000) | ||||||||||
Accrued revenue | 201,320,000 | $ 317,886,000 | ||||||||||
Accounts receivable | 91,944,000 | $ 46,419,000 | ||||||||||
Natural gas sales | ||||||||||||
Contingencies | ||||||||||||
Revenue | 411,082,000 | $ 657,266,000 | ||||||||||
Doddridge County, Tyler County and Ritchie County, West Virginia | Minimum | ||||||||||||
Contingencies | ||||||||||||
Settlement amount | $ 100,000 | |||||||||||
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 | WGL | ||||||||||||
Contingencies | ||||||||||||
Natural gas long term purchase contract volume (in MMBtu)/day | MMBTU / d | 500,000 | 600,000 | 500,000 |
Contract Termination and Rig _2
Contract Termination and Rig Stacking (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contract Termination and Rig Stacking | ||
Costs for delay or cancelation of drilling and completion contracts with third-party contractors | $ 0 | $ 8,360 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Sales and revenues: | |||
Sales and revenues | $ 1,316,307 | $ 1,032,825 | |
Sales and revenues | 1,317,105 | 1,037,407 | |
Operating expenses: | |||
Impairment of oil and gas properties | 89,220 | 81,244 | |
Impairment of midstream assets | 6,982 | ||
Impairment of equity investments | 610,632 | ||
Depletion, depreciation, and amortization | 199,677 | 240,201 | |
General and administrative | 31,221 | 68,202 | |
Other operating expenses | 120,286 | 208,224 | |
Total operating expenses | 1,054,672 | 1,071,114 | |
Operating income (loss) | 262,433 | (33,707) | |
Equity in earnings (loss) of unconsolidated affiliates | (128,055) | 14,081 | |
Investments in unconsolidated affiliates | 291,989 | 1,989,612 | $ 1,055,177 |
Segment assets | 14,525,789 | 17,288,730 | $ 15,197,569 |
Capital expenditures for segment assets | 311,611 | 471,933 | |
Marketing | |||
Sales and revenues: | |||
Sales and revenues | 46,073 | ||
Operating expenses: | |||
Other operating expenses | 93,273 | ||
Total operating expenses | 93,273 | ||
Operating income (loss) | (47,200) | ||
Segment assets | 9,639 | ||
Antero Midstream Corporation | |||
Operating expenses: | |||
Impairment of midstream assets | 664,544 | ||
Depletion, depreciation, and amortization | 27,343 | ||
General and administrative | 10,199 | ||
Other operating expenses | 4,878 | ||
Total operating expenses | 762,872 | ||
Operating income (loss) | (519,164) | ||
Equity in earnings (loss) of unconsolidated affiliates | 19,077 | ||
Investments in unconsolidated affiliates | 716,778 | ||
Segment assets | 5,781,359 | ||
Capital expenditures for segment assets | 67,983 | ||
Operating segments | |||
Sales and revenues: | |||
Sales and revenues | 1,037,407 | ||
Operating segments | Exploration and production | |||
Sales and revenues: | |||
Sales and revenues | 1,270,234 | 941,635 | |
Sales and revenues | 1,271,032 | 943,393 | |
Operating expenses: | |||
Impairment of oil and gas properties | 89,220 | 81,244 | |
Depletion, depreciation, and amortization | 199,677 | 218,494 | |
General and administrative | 31,221 | 49,908 | |
Other operating expenses | 27,013 | 44,137 | |
Total operating expenses | 961,399 | 971,767 | |
Operating income (loss) | 309,633 | (28,374) | |
Equity in earnings (loss) of unconsolidated affiliates | (128,055) | 1,817 | |
Investments in unconsolidated affiliates | 291,989 | 1,989,612 | |
Segment assets | 14,516,150 | 17,263,369 | |
Capital expenditures for segment assets | 311,611 | 399,278 | |
Operating segments | Marketing | |||
Sales and revenues: | |||
Sales and revenues | 91,186 | ||
Sales and revenues | 46,073 | 91,186 | |
Operating expenses: | |||
Other operating expenses | 163,084 | ||
Total operating expenses | 163,084 | ||
Operating income (loss) | (71,898) | ||
Segment assets | 25,361 | ||
Operating segments | Antero Midstream Corporation | |||
Sales and revenues: | |||
Sales and revenues | 4 | ||
Sales and revenues | 243,708 | 54,108 | |
Operating expenses: | |||
Impairment of midstream assets | 6,982 | ||
Depletion, depreciation, and amortization | 7,650 | ||
General and administrative | 2,184 | ||
Other operating expenses | 1,291 | ||
Total operating expenses | 32,857 | ||
Operating income (loss) | 21,251 | ||
Equity in earnings (loss) of unconsolidated affiliates | 2,880 | ||
Investments in unconsolidated affiliates | 1,153,943 | ||
Segment assets | 6,660,325 | ||
Capital expenditures for segment assets | 16,005 | ||
Elimination of intersegment transaction | |||
Sales and revenues: | |||
Sales and revenues | 798 | 4,582 | |
Sales and revenues | (243,708) | (51,280) | |
Operating expenses: | |||
Impairment of midstream assets | (664,544) | ||
Depletion, depreciation, and amortization | (27,343) | 14,057 | |
General and administrative | (10,199) | 16,110 | |
Other operating expenses | (4,878) | (288) | |
Total operating expenses | (762,872) | (96,594) | |
Operating income (loss) | 519,164 | 45,314 | |
Equity in earnings (loss) of unconsolidated affiliates | (19,077) | 9,384 | |
Investments in unconsolidated affiliates | (716,778) | (1,153,943) | |
Segment assets | (5,781,359) | (6,660,325) | |
Capital expenditures for segment assets | (67,983) | 56,650 | |
Elimination of intersegment transaction | Exploration and production | |||
Sales and revenues: | |||
Sales and revenues | 798 | 1,758 | |
Elimination of intersegment transaction | Antero Midstream Corporation | |||
Sales and revenues: | |||
Sales and revenues | 243,708 | 54,104 | |
Gathering, compression, water handling and treatment | |||
Operating expenses: | |||
Cost of goods and services sold | 588,624 | 424,529 | |
Gathering, compression, water handling and treatment | Antero Midstream Corporation | |||
Operating expenses: | |||
Cost of goods and services sold | 55,908 | ||
Gathering, compression, water handling and treatment | Operating segments | Exploration and production | |||
Operating expenses: | |||
Cost of goods and services sold | 588,624 | 535,015 | |
Gathering, compression, water handling and treatment | Operating segments | Antero Midstream Corporation | |||
Operating expenses: | |||
Cost of goods and services sold | 2,935 | ||
Gathering, compression, water handling and treatment | Elimination of intersegment transaction | |||
Operating expenses: | |||
Cost of goods and services sold | (55,908) | (113,421) | |
Lease operating | |||
Operating expenses: | |||
Cost of goods and services sold | 25,644 | 41,732 | |
Lease operating | Operating segments | Exploration and production | |||
Operating expenses: | |||
Cost of goods and services sold | $ 25,644 | 42,969 | |
Lease operating | Operating segments | Antero Midstream Corporation | |||
Operating expenses: | |||
Cost of goods and services sold | 11,815 | ||
Lease operating | Elimination of intersegment transaction | |||
Operating expenses: | |||
Cost of goods and services sold | $ (13,052) |
Subsidiary Guarantors - Balance
Subsidiary Guarantors - Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | |||
Accounts receivable | $ 91,944 | $ 46,419 | |
Accounts receivable, related parties | 125,000 | ||
Accrued revenue | 201,320 | 317,886 | |
Derivative instruments | 816,444 | 422,849 | |
Other current assets | 10,313 | 10,731 | |
Total current assets | 1,120,021 | 922,885 | |
Unproved properties | 1,289,770 | 1,368,854 | |
Proved properties | 12,154,162 | 11,859,817 | |
Gathering systems and facilities | 5,802 | 5,802 | |
Other property and equipment | 72,312 | 71,895 | |
Property and equipment, gross | 13,522,046 | 13,306,368 | |
Less accumulated depletion, depreciation, and amortization | (3,527,306) | (3,327,629) | |
Property and equipment, net | 9,994,740 | 9,978,739 | |
Operating leases right-of-use assets | 2,814,539 | 2,886,500 | |
Derivative instruments | 284,461 | 333,174 | |
Investments in unconsolidated affiliates | 291,989 | 1,055,177 | $ 1,989,612 |
Other assets | 20,039 | 21,094 | |
Total assets | 14,525,789 | 15,197,569 | $ 17,288,730 |
Liabilities and Stockholders' Equity | |||
Accounts payable | 37,909 | 14,498 | |
Accounts payable, related parties | 88,894 | 97,883 | |
Accrued liabilities | 367,444 | 400,850 | |
Revenue distributions payable | 174,654 | 207,988 | |
Derivative instruments | 6,721 | ||
Short-term lease liabilities | 295,658 | 305,320 | |
Other current liabilities | 7,315 | 6,879 | |
Total current liabilities | 971,874 | 1,040,139 | |
Long-term debt | 3,707,787 | 3,758,868 | |
Deferred income tax liability | 672,002 | 781,987 | |
Derivative instruments | 215 | 3,519 | |
Long-term lease liabilities | 2,520,939 | 2,583,678 | |
Other liabilities | 60,432 | 58,635 | |
Total liabilities | 7,933,249 | 8,226,826 | |
Common stock | 2,689 | 2,959 | |
Additional paid-in capital | 6,091,242 | 6,130,365 | |
Accumulated earnings | 498,609 | 837,419 | |
Total equity | 6,592,540 | 6,970,743 | |
Total liabilities and equity | 14,525,789 | 15,197,569 | |
Reportable legal entity | Parent (Antero) | |||
Current assets: | |||
Accounts receivable | 91,944 | 46,419 | |
Accounts receivable, related parties | 125,000 | ||
Accrued revenue | 201,320 | 317,886 | |
Derivative instruments | 816,444 | 422,849 | |
Other current assets | 10,313 | 10,731 | |
Total current assets | 1,120,021 | 922,885 | |
Unproved properties | 1,289,770 | 1,368,854 | |
Proved properties | 12,154,162 | 11,859,817 | |
Gathering systems and facilities | 5,802 | 5,802 | |
Other property and equipment | 72,312 | 71,895 | |
Property and equipment, gross | 13,522,046 | 13,306,368 | |
Less accumulated depletion, depreciation, and amortization | (3,527,306) | (3,327,629) | |
Property and equipment, net | 9,994,740 | 9,978,739 | |
Operating leases right-of-use assets | 2,814,539 | 2,886,500 | |
Derivative instruments | 284,461 | 333,174 | |
Investment in consolidated affiliates | 224,700 | 812,129 | |
Investments in unconsolidated affiliates | 67,289 | 243,048 | |
Other assets | 20,039 | 21,094 | |
Total assets | 14,525,789 | 15,197,569 | |
Liabilities and Stockholders' Equity | |||
Accounts payable | 37,909 | 14,498 | |
Accounts payable, related parties | 421,247 | 397,333 | |
Accrued liabilities | 367,444 | 400,850 | |
Revenue distributions payable | 174,654 | 207,988 | |
Derivative instruments | 6,721 | ||
Short-term lease liabilities | 295,658 | 305,320 | |
Other current liabilities | 7,315 | 6,879 | |
Total current liabilities | 1,304,227 | 1,339,589 | |
Long-term debt | 3,707,787 | 3,758,868 | |
Deferred income tax liability | 672,002 | 781,987 | |
Derivative instruments | 215 | 3,519 | |
Long-term lease liabilities | 2,520,939 | 2,583,678 | |
Other liabilities | 60,432 | 58,635 | |
Total liabilities | 8,265,602 | 8,526,276 | |
Common stock | 2,689 | 2,959 | |
Additional paid-in capital | 4,974,162 | 5,600,714 | |
Accumulated earnings | 1,283,336 | 1,067,620 | |
Total equity | 6,260,187 | 6,671,293 | |
Total liabilities and equity | 14,525,789 | 15,197,569 | |
Reportable legal entity | Guarantor Subsidiaries | |||
Current assets: | |||
Accounts receivable, related parties | 332,353 | 299,450 | |
Total current assets | 332,353 | 299,450 | |
Investments in unconsolidated affiliates | 224,700 | 812,129 | |
Total assets | 557,053 | 1,111,579 | |
Liabilities and Stockholders' Equity | |||
Additional paid-in capital | 1,341,780 | 1,341,780 | |
Accumulated earnings | (784,727) | (230,201) | |
Total equity | 557,053 | 1,111,579 | |
Total liabilities and equity | 557,053 | 1,111,579 | |
Eliminations | |||
Current assets: | |||
Accounts receivable, related parties | (332,353) | (299,450) | |
Total current assets | (332,353) | (299,450) | |
Investment in consolidated affiliates | (224,700) | (812,129) | |
Total assets | (557,053) | (1,111,579) | |
Liabilities and Stockholders' Equity | |||
Accounts payable, related parties | (332,353) | (299,450) | |
Total current liabilities | (332,353) | (299,450) | |
Total liabilities | (332,353) | (299,450) | |
Additional paid-in capital | (224,700) | (812,129) | |
Total equity | (224,700) | (812,129) | |
Total liabilities and equity | $ (557,053) | $ (1,111,579) |
Subsidiary Guarantors - Stateme
Subsidiary Guarantors - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue and other: | ||
Revenue | $ 750,474 | $ 1,114,668 |
Commodity derivative fair value gains (losses) | 565,833 | (77,368) |
Total revenue and other | 1,317,105 | 1,037,407 |
Operating expenses: | ||
Production and ad valorem taxes | 25,699 | 35,678 |
Impairment of oil and gas properties | 89,220 | 81,244 |
Impairment of midstream assets | 6,982 | |
Impairment of equity investments | (610,632) | |
Depletion, depreciation, and amortization | 199,677 | 240,201 |
Accretion of asset retirement obligations | 1,104 | 976 |
General and administrative | 31,221 | 68,202 |
Contract termination and rig stacking | 0 | 8,360 |
Total operating expenses | 1,054,672 | 1,071,114 |
Operating income (loss) | 262,433 | (33,707) |
Equity in earnings (loss) of unconsolidated affiliates | (128,055) | 14,081 |
Interest expense, net | (53,102) | (71,950) |
Gain on early extinguishment of debt | 80,561 | |
Gain on deconsolidation of Antero Midstream Partners LP | 1,406,042 | |
Total other income (expenses) | (711,228) | 1,348,173 |
Income (loss) before income taxes | (448,795) | 1,314,466 |
Provision for income tax (expense) benefit | 109,985 | (288,710) |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (338,810) | 1,025,756 |
Net income and comprehensive income attributable to noncontrolling interests | 46,993 | |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | (338,810) | 978,763 |
Natural gas sales | ||
Revenue and other: | ||
Revenue | 411,082 | 657,266 |
Natural gas liquids sales | ||
Revenue and other: | ||
Revenue | 257,673 | 313,685 |
Oil sales | ||
Revenue and other: | ||
Revenue | 35,646 | 48,052 |
Commodity derivative fair value gains (losses) | 35,646 | |
Gathering, compression, water handling and treatment | ||
Revenue and other: | ||
Revenue | 4,479 | |
Commodity derivative fair value gains (losses) | 565,833 | |
Operating expenses: | ||
Cost of goods and services sold | 588,624 | 424,529 |
Marketing | ||
Revenue and other: | ||
Revenue | 46,073 | 91,186 |
Operating expenses: | ||
Cost of goods and services sold | 93,273 | 163,084 |
Exploration | ||
Operating expenses: | ||
Cost of goods and services sold | 210 | 126 |
Lease operating | ||
Operating expenses: | ||
Cost of goods and services sold | 25,644 | 41,732 |
Other income | ||
Revenue and other: | ||
Revenue | 798 | 107 |
Reportable legal entity | Parent (Antero) | ||
Revenue and other: | ||
Commodity derivative fair value gains (losses) | 565,833 | (77,368) |
Total revenue and other | 1,317,105 | 1,034,579 |
Operating expenses: | ||
Production and ad valorem taxes | 25,699 | 34,738 |
Impairment of oil and gas properties | 89,220 | 81,244 |
Impairment of equity investments | (143,849) | |
Depletion, depreciation, and amortization | 199,677 | 218,494 |
Accretion of asset retirement obligations | 1,104 | 913 |
General and administrative | 31,221 | 49,908 |
Contract termination and rig stacking | 8,360 | |
Total operating expenses | 1,054,672 | 1,134,851 |
Operating income (loss) | 262,433 | (100,272) |
Equity in earnings (loss) of unconsolidated affiliates | (40,312) | 589 |
Interest expense, net | (53,102) | (55,135) |
Gain on early extinguishment of debt | 80,561 | |
Equity in earnings (loss) of consolidated subsidiaries | 15,021 | |
Gain on deconsolidation of Antero Midstream Partners LP | 1,205,705 | |
Total other income (expenses) | (156,702) | 1,166,180 |
Income (loss) before income taxes | 105,731 | 1,065,908 |
Provision for income tax (expense) benefit | 109,985 | (288,710) |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | 215,716 | 777,198 |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | 215,716 | 777,198 |
Reportable legal entity | Parent (Antero) | Natural gas sales | ||
Revenue and other: | ||
Revenue | 411,082 | 657,266 |
Reportable legal entity | Parent (Antero) | Natural gas liquids sales | ||
Revenue and other: | ||
Revenue | 257,673 | 313,685 |
Reportable legal entity | Parent (Antero) | Oil sales | ||
Revenue and other: | ||
Revenue | 48,052 | |
Commodity derivative fair value gains (losses) | 35,646 | |
Reportable legal entity | Parent (Antero) | Gathering, compression, water handling and treatment | ||
Revenue and other: | ||
Commodity derivative fair value gains (losses) | 565,833 | |
Operating expenses: | ||
Cost of goods and services sold | 588,624 | 535,015 |
Reportable legal entity | Parent (Antero) | Marketing | ||
Revenue and other: | ||
Revenue | 46,073 | 91,186 |
Operating expenses: | ||
Cost of goods and services sold | 93,273 | 163,084 |
Reportable legal entity | Parent (Antero) | Exploration | ||
Operating expenses: | ||
Cost of goods and services sold | 210 | 126 |
Reportable legal entity | Parent (Antero) | Lease operating | ||
Operating expenses: | ||
Cost of goods and services sold | 25,644 | 42,969 |
Reportable legal entity | Parent (Antero) | Other income | ||
Revenue and other: | ||
Revenue | 798 | 1,758 |
Reportable legal entity | Guarantor Subsidiaries | ||
Operating expenses: | ||
Impairment of equity investments | (466,783) | |
Equity in earnings (loss) of unconsolidated affiliates | (87,743) | 1,228 |
Gain on deconsolidation of Antero Midstream Partners LP | 200,337 | |
Total other income (expenses) | (554,526) | 201,565 |
Income (loss) before income taxes | (554,526) | 201,565 |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (554,526) | 201,565 |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | $ (554,526) | 201,565 |
Reportable legal entity | Non-Guarantor Subsidiaries | ||
Revenue and other: | ||
Total revenue and other | 218,360 | |
Operating expenses: | ||
Impairment of midstream assets | 6,982 | |
Depletion, depreciation, and amortization | 21,707 | |
Accretion of asset retirement obligations | 63 | |
General and administrative | 18,793 | |
Accretion of contingent acquisition consideration | 1,928 | |
Total operating expenses | 114,291 | |
Operating income (loss) | 104,069 | |
Equity in earnings (loss) of unconsolidated affiliates | 12,264 | |
Interest expense, net | (16,815) | |
Total other income (expenses) | (4,551) | |
Income (loss) before income taxes | 99,518 | |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | 99,518 | |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | 99,518 | |
Reportable legal entity | Non-Guarantor Subsidiaries | Gathering, compression, water handling and treatment | ||
Revenue and other: | ||
Revenue | 218,360 | |
Reportable legal entity | Non-Guarantor Subsidiaries | Lease operating | ||
Operating expenses: | ||
Cost of goods and services sold | 64,818 | |
Eliminations | ||
Revenue and other: | ||
Total revenue and other | (215,532) | |
Operating expenses: | ||
Production and ad valorem taxes | 940 | |
General and administrative | (499) | |
Accretion of contingent acquisition consideration | (1,928) | |
Total operating expenses | (178,028) | |
Operating income (loss) | (37,504) | |
Equity in earnings (loss) of consolidated subsidiaries | (15,021) | |
Total other income (expenses) | (15,021) | |
Income (loss) before income taxes | (52,525) | |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (52,525) | |
Net income and comprehensive income attributable to noncontrolling interests | 46,993 | |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | (99,518) | |
Eliminations | Gathering, compression, water handling and treatment | ||
Revenue and other: | ||
Revenue | (213,881) | |
Operating expenses: | ||
Cost of goods and services sold | (110,486) | |
Eliminations | Lease operating | ||
Operating expenses: | ||
Cost of goods and services sold | (66,055) | |
Eliminations | Other income | ||
Revenue and other: | ||
Revenue | $ (1,651) |
Subsidiary Guarantors - Cash Fl
Subsidiary Guarantors - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | $ (338,810) | $ 1,025,756 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depletion, depreciation, amortization, and accretion | 200,781 | 241,177 |
Impairments | 88,226 | |
Impairment of oil and gas properties | 89,220 | 81,244 |
Commodity derivative fair value (gains) losses | (565,833) | 77,368 |
Gains on settled commodity derivatives | 210,926 | 97,092 |
Deferred income tax expense (benefit) | (109,985) | 287,854 |
Equity-based compensation expense | 3,329 | 8,903 |
Gain on early extinguishment of debt | 80,561 | |
Impairment of equity investments | 610,632 | |
Equity in earnings (loss) of unconsolidated affiliates | 128,055 | (14,081) |
Distributions/dividends of earnings from unconsolidated affiliates | 42,756 | 12,605 |
Gain on deconsolidation of Antero Midstream Partners LP | (1,406,042) | |
Other | 2,440 | 11,081 |
Changes in current assets and liabilities | 7,727 | 109,065 |
Net cash provided by operating activities | 200,677 | 539,004 |
Cash flows provided by (used in) investing activities: | ||
Additions to unproved properties | (10,357) | (27,463) |
Drilling and completion costs | (300,483) | (368,687) |
Additions to water handling and treatment systems | (24,416) | |
Additions to gathering systems and facilities | (48,239) | |
Additions to other property and equipment | (771) | (3,128) |
Settlement of water earnout | 125,000 | |
Investments in unconsolidated affiliates | (25,020) | |
Proceeds from the Antero Midstream Partners LP Transactions | 296,611 | |
Change in other assets | (70) | (4,475) |
Net cash used in investing activities | (186,681) | (204,817) |
Cash flows provided by (used in) financing activities: | ||
Repurchases of common stock | (42,690) | |
Issuance of senior notes | 650,000 | |
Repayment of senior notes | (300,835) | |
Borrowings (repayments) on bank credit facilities, net | 330,000 | (270,000) |
Payments of deferred financing costs | (8,259) | |
Distributions to noncontrolling interests in Antero Midstream Partners LP | (85,076) | |
Employee tax withholding for settlement of equity compensation awards | (32) | (479) |
Other | (439) | (841) |
Net cash provided by financing activities | (13,996) | 285,345 |
Effect of deconsolidation of Antero Midstream Partners LP | (619,532) | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Reportable legal entity | Parent (Antero) | ||
Cash flows provided by (used in) operating activities: | ||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | 215,716 | 777,198 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depletion, depreciation, amortization, and accretion | 200,781 | 219,407 |
Impairments | 81,244 | |
Impairment of oil and gas properties | 89,220 | 81,244 |
Commodity derivative fair value (gains) losses | (565,833) | 77,368 |
Gains on settled commodity derivatives | 210,926 | 97,092 |
Deferred income tax expense (benefit) | (109,985) | 287,854 |
Equity-based compensation expense | 3,329 | 6,426 |
Gain on early extinguishment of debt | 80,561 | |
Equity in earnings of consolidated subsidiaries | (15,021) | |
Impairment of equity investments | 143,849 | |
Equity in earnings (loss) of unconsolidated affiliates | 40,312 | (589) |
Distributions/dividends of earnings from unconsolidated affiliates | 42,756 | |
Gain on deconsolidation of Antero Midstream Partners LP | (1,205,705) | |
Distributions from Antero Midstream Partners LP | 46,469 | |
Other | 2,440 | 10,331 |
Changes in current assets and liabilities | 7,727 | 102,830 |
Net cash provided by operating activities | 200,677 | 484,904 |
Cash flows provided by (used in) investing activities: | ||
Additions to unproved properties | (10,357) | (27,463) |
Drilling and completion costs | (300,483) | (389,252) |
Additions to other property and equipment | (771) | (2,066) |
Settlement of water earnout | 125,000 | |
Proceeds from the Antero Midstream Partners LP Transactions | 296,611 | |
Change in other assets | (70) | (1,118) |
Net cash used in investing activities | (186,681) | (123,288) |
Cash flows provided by (used in) financing activities: | ||
Repurchases of common stock | (42,690) | |
Repayment of senior notes | (300,835) | |
Borrowings (repayments) on bank credit facilities, net | 330,000 | (360,379) |
Payments of deferred financing costs | (791) | |
Employee tax withholding for settlement of equity compensation awards | (32) | (450) |
Other | (439) | 4 |
Net cash provided by financing activities | (13,996) | (361,616) |
Reportable legal entity | Guarantor Subsidiaries | ||
Cash flows provided by (used in) operating activities: | ||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (554,526) | 201,565 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Impairment of equity investments | 466,783 | |
Equity in earnings (loss) of unconsolidated affiliates | $ 87,743 | (1,228) |
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) and comprehensive income (loss) including noncontrolling interests | 99,518 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depletion, depreciation, amortization, and accretion | 21,770 | |
Impairments | 6,982 | |
Equity-based compensation expense | 2,477 | |
Equity in earnings (loss) of unconsolidated affiliates | (12,264) | |
Distributions/dividends of earnings from unconsolidated affiliates | 12,605 | |
Other | 750 | |
Changes in current assets and liabilities | (10,573) | |
Net cash provided by operating activities | 121,265 | |
Cash flows provided by (used in) investing activities: | ||
Additions to water handling and treatment systems | (24,547) | |
Additions to gathering systems and facilities | (48,239) | |
Additions to other property and equipment | (1,062) | |
Investments in unconsolidated affiliates | (25,020) | |
Change in other assets | (3,357) | |
Net cash used in investing activities | (102,225) | |
Cash flows provided by (used in) financing activities: | ||
Issuance of senior notes | 650,000 | |
Borrowings (repayments) on bank credit facilities, net | 90,379 | |
Payments of deferred financing costs | (7,468) | |
Distributions to noncontrolling interests in Antero Midstream Partners LP | (131,545) | |
Employee tax withholding for settlement of equity compensation awards | (29) | |
Other | (845) | |
Net cash provided by financing activities | 600,492 | |
Effect of deconsolidation of Antero Midstream Partners LP | (619,532) | |
Eliminations | ||
Cash flows provided by (used in) operating activities: | ||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (52,525) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Equity in earnings of consolidated subsidiaries | 15,021 | |
Distributions from Antero Midstream Partners LP | (46,469) | |
Changes in current assets and liabilities | 16,808 | |
Net cash provided by operating activities | (67,165) | |
Cash flows provided by (used in) investing activities: | ||
Drilling and completion costs | 20,565 | |
Additions to water handling and treatment systems | 131 | |
Net cash used in investing activities | 20,696 | |
Cash flows provided by (used in) financing activities: | ||
Distributions to noncontrolling interests in Antero Midstream Partners LP | 46,469 | |
Net cash provided by financing activities | $ 46,469 |