Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
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 $0.01 | |
Trading Symbol | AR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 300,136,446 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001433270 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Accounts receivable | $ 23,770 | $ 78,998 |
Accrued revenue | 924,343 | 591,442 |
Derivative instruments | 954 | 757 |
Other current assets | 28,587 | 14,922 |
Total current assets | 977,654 | 686,119 |
Oil and gas properties, at cost (successful efforts method): | ||
Unproved properties | 999,273 | 1,042,118 |
Proved properties | 13,103,294 | 12,646,303 |
Gathering systems and facilities | 5,802 | 5,802 |
Other property and equipment | 129,853 | 116,522 |
Property and equipment, gross | 14,238,222 | 13,810,745 |
Less accumulated depletion, depreciation, and amortization | (4,587,529) | (4,283,700) |
Property and equipment, net | 9,650,693 | 9,527,045 |
Operating leases right-of-use assets | 3,541,576 | 3,419,912 |
Derivative instruments | 7,327 | 14,369 |
Investment in unconsolidated affiliate | 222,882 | 232,399 |
Other assets | 13,246 | 16,684 |
Total assets | 14,413,378 | 13,896,528 |
Current liabilities: | ||
Accounts payable | 103,640 | 24,819 |
Accounts payable, related parties | 74,584 | 76,240 |
Accrued liabilities | 497,547 | 457,244 |
Revenue distributions payable | 682,327 | 444,873 |
Derivative instruments | 612,237 | 559,851 |
Short-term lease liabilities | 535,347 | 456,347 |
Deferred revenue, VPP | 32,330 | 37,603 |
Other current liabilities | 6,010 | 11,140 |
Total current liabilities | 2,544,022 | 2,068,117 |
Long-term liabilities: | ||
Long-term debt | 1,172,828 | 2,125,444 |
Deferred income tax liability, net | 619,342 | 318,126 |
Derivative instruments | 445,481 | 181,806 |
Long-term lease liabilities | 3,007,636 | 2,964,115 |
Deferred revenue, VPP | 95,514 | 118,366 |
Other liabilities | 58,293 | 54,462 |
Total liabilities | 7,943,116 | 7,830,436 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued | ||
Common stock, $0.01 par value; authorized - 1,000,000 shares; 313,930 shares and 303,131 shares issued and outstanding as of December 31, 2021 and September 30, 2022, respectively | 3,031 | 3,139 |
Additional paid-in capital | 5,941,977 | 6,371,398 |
Retained earnings (accumulated deficit) | 266,468 | (617,377) |
Total stockholders' equity | 6,211,476 | 5,757,160 |
Noncontrolling interests | 258,786 | 308,932 |
Total equity | 6,470,262 | 6,066,092 |
Total liabilities and equity | $ 14,413,378 | $ 13,896,528 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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 | 303,131,000 | 313,930,000 |
Common stock, shares outstanding | 303,131,000 | 313,930,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue and other: | ||||
Revenue | $ 2,583,865 | $ 1,772,415 | $ 6,829,011 | $ 4,450,839 |
Commodity derivative fair value losses | (530,523) | (1,250,466) | (1,807,565) | (2,260,062) |
Amortization of deferred revenue, VPP | 9,478 | 11,404 | 28,125 | 33,833 |
Other income | 1,804 | 530 | 3,578 | 551 |
Total revenue | 2,064,624 | 533,883 | 5,053,149 | 2,225,161 |
Operating expenses: | ||||
Lease operating | 27,453 | 25,363 | 70,486 | 71,555 |
Production and ad valorem taxes | 92,998 | 52,219 | 227,648 | 130,610 |
General and administrative | 42,903 | 32,442 | 123,033 | 108,693 |
Depletion, depreciation, and amortization | 169,607 | 182,810 | 511,390 | 564,166 |
Impairment of oil and gas properties | 33,924 | 26,253 | 79,749 | 69,618 |
Accretion of asset retirement obligations | 630 | 828 | 3,878 | 2,947 |
Contract termination | 17,995 | 3,370 | 20,099 | 4,305 |
(Gain) loss on sale of assets | 214 | (539) | 2,071 | (2,827) |
Total operating expenses | 1,290,464 | 1,217,957 | 3,422,070 | 3,457,645 |
Operating income (loss) | 774,160 | (684,074) | 1,631,079 | (1,232,484) |
Other income (expense): | ||||
Interest expense, net | (28,326) | (45,414) | (100,252) | (138,120) |
Equity in earnings of unconsolidated affiliates | 14,972 | 21,450 | 54,863 | 57,621 |
Loss on early extinguishment of debt | (30,307) | (16,567) | (45,375) | (82,836) |
Loss on convertible note inducement and equitizations | (169) | (169) | (50,777) | |
Transaction expense | (626) | (3,102) | ||
Total other expense | (43,830) | (41,157) | (90,933) | (217,214) |
Income (loss) before income taxes | 730,330 | (725,231) | 1,540,146 | (1,449,698) |
Income tax benefit (expense) | (135,823) | 158,656 | (308,302) | 337,568 |
Net income (loss) and comprehensive income (loss) including noncontrolling interests | 594,507 | (566,575) | 1,231,844 | (1,112,130) |
Less: net income (loss) and comprehensive income (loss) attributable to noncontrolling interests | 34,748 | (17,257) | 63,369 | (23,846) |
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation | $ 559,759 | $ (549,318) | $ 1,168,475 | $ (1,088,284) |
Income (loss) per share-basic (in dollars per share) | $ 1.83 | $ (1.75) | $ 3.77 | $ (3.55) |
Income (loss) per share-diluted (in dollars per share) | $ 1.72 | $ (1.75) | $ 3.51 | $ (3.55) |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 305,343 | 313,790 | 309,954 | 306,201 |
Diluted (in shares) | 325,997 | 313,790 | 333,738 | 306,201 |
Natural gas sales | ||||
Revenue and other: | ||||
Revenue | $ 1,736,039 | $ 884,669 | $ 4,290,825 | $ 2,231,558 |
Natural gas liquids sales | ||||
Revenue and other: | ||||
Revenue | 620,816 | 598,327 | 1,983,509 | 1,503,027 |
Oil sales | ||||
Revenue and other: | ||||
Revenue | 67,025 | 56,734 | 219,504 | 153,326 |
Gathering, compression, water handling and treatment, processing, and transportation | ||||
Operating expenses: | ||||
Cost of goods and services sold | 716,388 | 628,225 | 1,962,878 | 1,874,664 |
Marketing. | ||||
Revenue and other: | ||||
Revenue | 159,985 | 232,685 | 335,173 | 562,928 |
Operating expenses: | ||||
Cost of goods and services sold | 185,377 | 266,751 | 415,571 | 627,822 |
Exploration and mine expenses | ||||
Operating expenses: | ||||
Cost of goods and services sold | $ 2,975 | $ 235 | $ 5,267 | $ 6,092 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||
Equity-based compensation expense | $ 10,402 | $ 5,298 | $ 23,222 | $ 15,189 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional paid-in capital | Accumulated earnings (deficit) | Noncontrolling Interests | Total |
Balances at Dec. 31, 2020 | $ 2,686 | $ 6,195,497 | $ (430,478) | $ 322,566 | $ 6,090,271 |
Balances (in shares) at Dec. 31, 2020 | 268,672 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common shares | $ 314 | 238,551 | 238,865 | ||
Issuance of common shares (in shares) | 31,388 | ||||
Issuance of common units in Martica Holdings, LLC | 51,000 | 51,000 | |||
Equity component of 2026 Convertible Notes, net | (116,381) | (116,381) | |||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 11 | (5,656) | (5,645) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 1,130 | ||||
Equity-based compensation | 5,642 | 5,642 | |||
Distributions to non-controlling interest | (24,699) | (24,699) | |||
Net income (loss) and comprehensive income (loss) | (15,499) | 4,395 | (11,104) | ||
Balance at Mar. 31, 2021 | $ 3,011 | 6,317,653 | (445,977) | 353,262 | 6,227,949 |
Balance (in shares) at Mar. 31, 2021 | 301,190 | ||||
Balances at Dec. 31, 2020 | $ 2,686 | 6,195,497 | (430,478) | 322,566 | 6,090,271 |
Balances (in shares) at Dec. 31, 2020 | 268,672 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) and comprehensive income (loss) | (1,112,130) | ||||
Balance at Sep. 30, 2021 | $ 3,138 | 6,365,929 | (1,518,762) | 284,937 | 5,135,242 |
Balance (in shares) at Sep. 30, 2021 | 313,866 | ||||
Balances at Mar. 31, 2021 | $ 3,011 | 6,317,653 | (445,977) | 353,262 | 6,227,949 |
Balances (in shares) at Mar. 31, 2021 | 301,190 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common shares | $ 116 | 125,262 | 125,378 | ||
Issuance of common shares (in shares) | 11,588 | ||||
Equity component of 2026 Convertible Notes, net | (79,497) | (79,497) | |||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 8 | (3,893) | (3,885) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 749 | ||||
Equity-based compensation | 4,249 | 4,249 | |||
Distributions to non-controlling interest | (21,329) | (21,329) | |||
Net income (loss) and comprehensive income (loss) | (523,467) | (10,984) | (534,451) | ||
Balance at Jun. 30, 2021 | $ 3,135 | 6,363,774 | (969,444) | 320,949 | 5,718,414 |
Balance (in shares) at Jun. 30, 2021 | 313,527 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Equity component of 2026 Convertible Notes, net | 36 | 36 | |||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 3 | (3,179) | (3,176) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 339 | ||||
Equity-based compensation | 5,298 | 5,298 | |||
Distributions to non-controlling interest | (18,755) | (18,755) | |||
Net income (loss) and comprehensive income (loss) | (549,318) | (17,257) | (566,575) | ||
Balance at Sep. 30, 2021 | $ 3,138 | 6,365,929 | (1,518,762) | 284,937 | 5,135,242 |
Balance (in shares) at Sep. 30, 2021 | 313,866 | ||||
Balances at Dec. 31, 2021 | $ 3,139 | 6,371,398 | (617,377) | 308,932 | 6,066,092 |
Balances (in shares) at Dec. 31, 2021 | 313,930 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Equity component of 2026 Convertible Notes, net | (24,411) | 3,229 | (21,182) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 8 | (10,385) | (10,377) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 780 | ||||
Repurchases and retirements of common stock | $ (37) | (74,745) | (25,263) | (100,045) | |
Repurchases and retirements of common stock (in shares) | (3,690) | ||||
Equity-based compensation | 4,649 | 4,649 | |||
Distributions to non-controlling interest | (35,757) | (35,757) | |||
Net income (loss) and comprehensive income (loss) | (156,419) | (18,277) | (174,696) | ||
Balance at Mar. 31, 2022 | $ 3,110 | 6,266,506 | (795,830) | 254,898 | 5,728,684 |
Balance (in shares) at Mar. 31, 2022 | 311,020 | ||||
Balances at Dec. 31, 2021 | $ 3,139 | 6,371,398 | (617,377) | 308,932 | 6,066,092 |
Balances (in shares) at Dec. 31, 2021 | 313,930 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) and comprehensive income (loss) | 1,231,844 | ||||
Balance at Sep. 30, 2022 | $ 3,031 | 5,941,977 | 266,468 | 258,786 | 6,470,262 |
Balance (in shares) at Sep. 30, 2022 | 303,131 | ||||
Balances at Mar. 31, 2022 | $ 3,110 | 6,266,506 | (795,830) | 254,898 | 5,728,684 |
Balances (in shares) at Mar. 31, 2022 | 311,020 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 21 | (54,463) | (54,442) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 2,112 | ||||
Conversion of 2026 Convertible Notes | $ 9 | 3,955 | 3,964 | ||
Conversion of 2026 Convertible Notes (in shares) | 921 | ||||
Repurchases and retirements of common stock | $ (52) | (104,524) | (88,430) | (193,006) | |
Repurchases and retirements of common stock (in shares) | (5,241) | ||||
Equity-based compensation | 8,171 | 8,171 | |||
Distributions to non-controlling interest | (31,541) | (31,541) | |||
Net income (loss) and comprehensive income (loss) | 765,135 | 46,898 | 812,033 | ||
Balance at Jun. 30, 2022 | $ 3,088 | 6,119,645 | (119,125) | 270,255 | 6,273,863 |
Balance (in shares) at Jun. 30, 2022 | 308,812 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | (210) | (210) | |||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 25 | ||||
Conversion of 2026 Convertible Notes | $ 48 | 20,230 | 20,278 | ||
Conversion of 2026 Convertible Notes (in shares) | 4,751 | ||||
Repurchases and retirements of common stock | $ (105) | (208,090) | (174,166) | (382,361) | |
Repurchases and retirements of common stock (in shares) | (10,457) | ||||
Equity-based compensation | 10,402 | 10,402 | |||
Distributions to non-controlling interest | (46,217) | (46,217) | |||
Net income (loss) and comprehensive income (loss) | 559,759 | 34,748 | 594,507 | ||
Balance at Sep. 30, 2022 | $ 3,031 | $ 5,941,977 | $ 266,468 | $ 258,786 | $ 6,470,262 |
Balance (in shares) at Sep. 30, 2022 | 303,131 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) including noncontrolling interests | $ 1,231,844 | $ (1,112,130) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depletion, depreciation, amortization and accretion | 515,268 | 567,113 |
Impairments | 79,749 | 69,618 |
Commodity derivative fair value losses | (1,807,565) | (2,260,062) |
Losses on settled commodity derivatives | (1,484,660) | (481,083) |
Payments for derivative monetizations | (4,569) | |
Deferred income tax expense (benefit) | 307,326 | (337,568) |
Equity-based compensation expense | 23,222 | 15,189 |
Equity in earnings of unconsolidated affiliate | (54,863) | (57,621) |
Dividends of earnings from unconsolidated affiliate | 93,854 | 105,325 |
Amortization of deferred revenue | (28,125) | (33,833) |
Amortization of debt issuance costs, debt discount and debt premium | 3,458 | 10,122 |
Settlement of asset retirement obligations | (946) | |
(Gain) loss on sale of assets | 2,071 | (2,827) |
Loss on early extinguishment of debt | 45,375 | 82,836 |
Loss on convertible note equitizations | 169 | 50,777 |
Changes in current assets and liabilities: | ||
Accounts receivable | 55,229 | (11,336) |
Accrued revenue | (332,900) | (227,207) |
Other current assets | (13,664) | (5,695) |
Accounts payable including related parties | 59,222 | 39,108 |
Accrued liabilities | 36,632 | 124,382 |
Revenue distributions payable | 237,453 | 117,819 |
Other current liabilities | (7,222) | 16,470 |
Net cash provided by operating activities | 2,576,057 | 1,184,952 |
Cash flows provided by (used in) investing activities: | ||
Additions to unproved properties | (120,139) | (48,960) |
Drilling and completion costs | (589,093) | (447,899) |
Additions to other property and equipment | (12,188) | (14,082) |
Proceeds from asset sales | 1,147 | 3,192 |
Change in other assets | 1,910 | 2,371 |
Change in other liabilities | (77) | |
Net cash used in investing activities | (718,363) | (505,455) |
Cash flows provided by (used in) financing activities: | ||
Repurchases of common stock | (675,412) | |
Issuance of senior notes | 1,800,000 | |
Repayment of senior notes | (1,011,313) | (1,424,354) |
Borrowings (repayments) on bank credit facilities, net | 9,000 | (919,500) |
Payment of debt issuance costs | (814) | (22,814) |
Sale of noncontrolling interest | 51,000 | |
Distributions to noncontrolling interests in Martica Holdings LLC | (113,515) | (64,783) |
Employee tax withholding for settlement of equity compensation awards | (65,029) | (12,706) |
Convertible note inducement and equitizations | (169) | (85,648) |
Other | (442) | (692) |
Net cash used in financing activities | (1,857,694) | (679,497) |
Net increase 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 | 148,668 | 130,947 |
Increase in accounts payable and accrued liabilities for additions to property and equipment | $ 23,633 | $ 33,547 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization | |
Organization | (1) Organization Antero Resources Corporation (individually referred to as “Antero” and together with its consolidated subsidiaries “Antero Resources,” or the “Company”) is engaged in the development, production, exploration 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 is located in Denver, Colorado. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021 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, 2021 consolidated financial statements were included in Antero Resources’ 2021 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, 2021 and September 30, 2022, results of operations for the three and nine months ended September 30, 2021 and 2022 and cash flows for the nine months ended September 30, 2021 and 2022. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is equal to its comprehensive income or loss. Operating results for the period ended September 30, 2022 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 and its variable interest entity (“VIE”), Martica Holdings LLC, (“Martica”), for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements. (c) 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 condensed consolidated balance sheets, and classifies the change in accounts payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of December 31, 2021, the book overdrafts included within accounts payable and revenue distributions payable were million, respectively. As of September 30, 2022, the book overdrafts included within accounts payable and revenue distributions payable were (d) 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—diluted for each period is computed after giving consideration to the potential dilution from (i) outstanding equity awards using the treasury stock method and (ii) shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt) using the if-converted method. The Company includes restricted stock unit (“RSU”) awards, performance share unit (“PSU”) awards and stock options 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 effects of all equity awards and the 2026 Convertible Notes are anti-dilutive. The following is a reconciliation of the Company’s earnings (loss) attributable to common stockholders for basic and diluted earnings (loss) per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Net income (loss) attributable to Antero Resources Corporation—common shareholders $ (549,318) 559,759 (1,088,284) 1,168,475 Add: Interest expense for 2026 Convertible Notes — 830 — 2,764 Less: Tax-effect of interest expense for 2026 Convertible Notes — (193) — (642) Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions $ (549,318) 560,396 (1,088,284) 1,170,597 Income (loss) per share—basic $ (1.75) 1.83 (3.55) 3.77 Income (loss) per share—diluted $ (1.75) 1.72 (3.55) 3.51 Weighted average common shares outstanding—basic 313,790 305,343 306,201 309,954 Weighted average common shares outstanding—diluted 313,790 325,997 306,201 333,738 The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Basic weighted average number of shares outstanding 313,790 305,343 306,201 309,954 Add: Dilutive effect of RSUs — 3,041 — 3,444 Add: Dilutive effect of PSUs — 1,486 — 2,462 Add: Dilutive effect of stock options — — — — Add: Dilutive effect of 2026 Convertible Notes — 16,127 — 17,878 Diluted weighted average number of shares outstanding 313,790 325,997 306,201 333,738 Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share (1) RSUs 6,158 — 6,562 — PSUs 2,748 — 2,706 — Stock options 357 349 388 350 2026 Convertible Notes 18,778 — 18,778 — (1) The potential dilutive effects of these awards were excluded from the computation of diluted earnings (loss) per common share because the inclusion of these awards would have been anti-dilutive. (e) Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences resulting from net operating loss carryforwards for income tax purposes and the differences between the financial statement and tax basis of assets and liabilities. The effect of changes in tax laws or tax rates is recognized in income during the period such changes are enacted. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. On July 8, 2022, Pennsylvania enacted new tax laws that are effective January 1, 2023 on a prospective basis that reduce the state’s corporate income tax rate. As a result of this tax law change, the Company’s net deferred income tax liability was reduced by (f) Recently Issued Accounting Standards Convertible Debt Instruments In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Debt with Conversion and Other Options , that required separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. It is effective for interim and annual reporting periods beginning after December 31, 2021. The Company adopted the standard effective January 1, 2022 Upon adoption of this new standard, the Company reclassified $24 million, net of deferred income taxes and equity issuance costs, from additional paid-in capital and increased long-term debt by $27 million, reduced deferred income tax liability by $6 million and reduced accumulated deficit by $3 million as of January 1, 2022. Additionally, annual interest expense for the 2026 Convertible Notes beginning January 1, 2022 is based on an effective interest rate of Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . Income Taxes |
Transactions
Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Conveyance Of Overriding Royalty Interest And Drilling Partnership Formation [Abstract] | |
Transactions | (3) Transactions (a) Conveyance of Overriding Royalty Interest On June 15, 2020, the Company announced the consummation of a transaction with an affiliate of Sixth Street Partners, LLC (“Sixth Street”) relating to certain overriding royalty interests across the Company’s existing asset base (the “ORRIs”). In connection with the transaction, the Company contributed the ORRIs to Martica and Sixth Street contributed $300 million in cash (subject to customary adjustments) and agreed to contribute up to an additional $102 million in cash if certain production thresholds attributable to the ORRIs are achieved in the third quarter of 2020 and first quarter of 2021. All cash contributed by Sixth Street at the initial closing was distributed to the Company. The Company met the applicable production thresholds related to the third quarter of 2020 and the first quarter of 2021 as of September 30, 2020 and March 31, 2021, respectively. The Company received a $51 million cash distribution during each of the fourth quarter of 2020 and the second quarter of 2021. (b) Drilling Partnership On February 17, 2021, Antero Resources announced the formation of a drilling partnership with QL Capital Partners (“QL”), an affiliate of Quantum Energy Partners, for the Company’s 2021 through 2024 drilling program. Under the terms of the arrangement, each year in which QL participates represents an annual tranche, and QL will be conveyed a working interest in any wells spud by Antero Resources during such tranche year. For 2021 and 2022, Antero Resources and QL agreed to the estimated internal rate of return (“IRR”) of the Company’s capital budget for each annual tranche, and QL agreed to participate in the 2021 and 2022 tranches. For each subsequent year through 2024, Antero Resources will propose a capital budget and estimated IRR for all wells to be spud during such year and, subject to the mutual agreement of the parties that the estimated IRR for the year exceeds a specified return, QL will be obligated to participate in such tranche. Antero Resources develops and manages the drilling program associated with each tranche, including the selection of wells. Additionally, for each annual tranche in which QL participates, Antero Resources and QL will enter into assignments, bills of sale and conveyances pursuant to which QL will be conveyed a proportionate working interest percentage in each well spud in that year, which conveyances will not be subject to any reversion. Under the terms of the arrangement, QL funded 20% of development capital for wells spud in 2021, and will fund 15% in 2022 and between 15% and 20% of development capital spending for wells spud on an annual basis in 2023 and 2024, which funding amounts represent QL’s proportionate working interest in such wells. Additionally, Antero Resources may receive a carry in the form of a one-time payment from QL for each annual tranche if the IRR for such tranche exceeds certain specified returns, which will be determined no earlier than October 31 and no later than December 1 following the end of each tranche year. All of the wells spud during each calendar year period will be a separate annual tranche. Capital costs in excess of, and cost savings below, a specified percentage of budgeted amounts for each annual tranche will be for Antero Resources’ account. Subject to the preceding sentence, for any wells included in a tranche, QL is obligated and responsible for its working interest share of costs and liabilities, and is entitled to its working interest share of revenues, associated with such wells for the life of such wells. If Antero Resources presents a capital budget for an annual tranche with an estimated IRR equal to or exceeding a specified return that QL in good faith believes is less than such specified return and QL elects not to participate, Antero Resources will not be obligated to offer QL the opportunity to participate in subsequent annual tranches. The Company has accounted for the drilling partnership as a conveyance under ASC 932, Extractive Activities—Oil and Gas |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue | |
Revenue | (4) Revenue (a) Disaggregation of Revenue The table set forth below presents revenue disaggregated by type and reportable segment to which it relates (in thousands). See Note 16—Reportable Segments to the unaudited condensed financial statements for more information on reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Reportable Segment Revenues from contracts with customers: Natural gas sales $ 884,669 1,736,039 2,231,558 4,290,825 Exploration and production Natural gas liquids sales (ethane) 57,919 117,253 137,446 274,546 Exploration and production Natural gas liquids sales (C3+ NGLs) 540,408 503,563 1,365,581 1,708,963 Exploration and production Oil sales 56,734 67,025 153,326 219,504 Exploration and production Marketing 232,685 159,985 562,928 335,173 Marketing Total revenue from contracts with customers 1,772,415 2,583,865 4,450,839 6,829,011 Loss from derivatives, deferred revenue and other sources, net (1,238,532) (519,241) (2,225,678) (1,775,862) Total revenue $ 533,883 2,064,624 2,225,161 5,053,149 (b) Transaction Price Allocated to Remaining Performance Obligations For the Company’s product sales that have a contract term greater than one year, the Company utilized the practical expedient in ASC 606, Revenue from Contracts with Customers (“ASC 606”), which does not require the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under the Company’s 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 the Company’s product sales that have a contract term of one year or less, the Company utilized the practical expedient in ASC 606, which does not require the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of (c) Contract Balances Under the Company’s sales contracts, the Company invoices customers after its performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. As of December 31, 2021 and September 30, 2022, the Company’s receivables from contracts with customers were $ |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments. | |
Equity Method Investments | (5) Equity Method Investment (a) Summary of Equity Method Investment As of September 30, 2022, Antero owned approximately 29.1% of Antero Midstream Corporation’s (“Antero Midstream”) common stock, which is reflected in Antero’s unaudited condensed consolidated financial statements using the equity method of accounting. The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands): Balance as of December 31, 2021 (1) $ 232,399 Equity in earnings of unconsolidated affiliate 54,863 Dividends from unconsolidated affiliate (93,854) Elimination of intercompany profit 29,474 Balance as of September 30, 2022 (1) $ 222,882 (1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2021 and September 30, 2022 was $1.3 billion based on the quoted market share price of Antero Midstream. (b) Summarized Financial Information of Antero Midstream The tables set forth below present summarized financial information of Antero Midstream (in thousands): Balance Sheet (Unaudited) December 31, September 30, 2021 2022 Current assets $ 83,804 80,785 Noncurrent assets 5,460,197 5,483,036 Total assets $ 5,544,001 5,563,821 Current liabilities $ 114,009 106,382 Noncurrent liabilities 3,143,294 3,245,584 Stockholders' equity 2,286,698 2,211,855 Total liabilities and stockholders' equity $ 5,544,001 5,563,821 Statement of Operations Nine Months Ended September 30, 2021 2022 Revenues $ 681,712 678,432 Operating expenses 254,905 283,112 Income from operations 426,807 395,320 Net income $ 252,991 243,449 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities | |
Accrued Liabilities | (6) Accrued Liabilities Accrued liabilities consisted of the following items (in thousands): (Unaudited) December 31, September 30, 2021 2022 Capital expenditures $ 46,983 50,785 Gathering, compression, processing and transportation expenses 164,900 185,383 Marketing expenses 50,589 79,119 Interest expense, net 65,093 13,819 Production and ad valorem taxes 44,298 40,152 General and administrative expense 27,740 25,693 Derivative settlements payable 35,202 84,062 Other 22,439 18,534 Total accrued liabilities $ 457,244 497,547 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt | |
Long-Term Debt | (7) Long-Term Debt Long-term debt consisted of the following items (in thousands): (Unaudited) December 31, September 30, 2021 2022 Credit Facility (a) $ — 9,000 5.00% senior notes due 2025 (d) 584,635 — 8.375% senior notes due 2026 (e) 325,000 103,892 7.625% senior notes due 2029 (f) 584,000 415,837 5.375% senior notes due 2030 (g) 600,000 600,000 4.25% convertible senior notes due 2026 (h) 81,570 56,932 Total principal 2,175,205 1,185,661 Unamortized discount, net (27,772) — Unamortized debt issuance costs (21,989) (12,833) Long-term debt $ 2,125,444 1,172,828 (a) Senior Secured Revolving Credit Facility Antero Resources has a senior secured revolving credit facility with a consortium of bank lenders. On October 26, 2021, Antero Resources entered into an amended and restated senior secured revolving credit facility (the “Credit Facility”). As of December 31, 2021 and September 30, 2022, the Credit Facility had a borrowing base of billion. The borrowing base was re-affirmed in the semi-annual redetermination in October 2022. The maturity date of the Credit Facility is the earlier of (i) October 26, 2026 and (ii) the date that is prior to the earliest stated redemption date of any series of the Company’s then outstanding senior notes. As of September 30, 2022, the Credit Facility had an available borrowing capacity of The Credit Facility contains requirements with respect to leverage and current ratios, and certain covenants, including restrictions on our ability to incur debt and limitations on our ability to pay dividends unless certain customary conditions are met, in each case, subject to customary carve-outs and exceptions. Antero Resources was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2021 and September 30, 2022. The senior secured revolving credit facility agreement in effect prior to October 26, 2021 provided for borrowing under either an Alternate Base Rate or as a Eurodollar Loan (as each term is defined in the agreement), and the Credit Facility provides for borrowing at either an Adjusted Term Secured Overnight Financing Rate (“SOFR”), an Adjusted Daily Simple SOFR or an Alternate Base Rate (each as defined in the Credit Facility). The Credit Facility provides for interest only payments until maturity at which time all outstanding borrowings are due. Interest was payable at a variable rate based on LIBOR or the Alternative Base Rate (as defined in the agreement), determined by election at the time of borrowing, plus an applicable margin rate under the senior secured revolving credit facility agreement in effect prior to October 26, 2021. Interest is payable at a variable rate based on SOFR or the Alternate Base Rate, determined by election at the time of borrowing, plus an applicable margin rate under the Credit Facility. Interest at the time of borrowing is determined with reference to the Antero Resources’ then-current leverage ratio subject to certain exceptions. Commitment fees on the unused portion of the Credit Facility are due quarterly at rates ranging from with respect to the Credit Facility, determined with reference to borrowing base utilization, subject to certain exceptions based on the leverage ratio then in effect. The Credit Facility includes fall away covenants, lower interest rates and reduced collateral requirements that Antero Resources may elect if Antero Resources is assigned an Investment Grade Rating (as defined in the Credit Facility). As of December 31, 2021, Antero Resources had no borrowings under the Credit Facility and outstanding letters of credit of $531 million. As of September 30, 2022, Antero Resources had an outstanding balance under the Credit Facility of $ (b) 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 of par. The Company repurchased or otherwise fully redeemed all of the 2022 Notes between 2019 and the first quarter of 2021. Interest on the 2022 Notes was payable on June 1 and December 1 of each year. See “—Debt Repurchase Program” below for more information. (c) 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 . 1 of each year. See “—Debt Repurchase Program” below for more information. (d) 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 Company repurchased or otherwise fully redeemed all of the 2025 Notes between 2020 and the first quarter of 2022. Interest on the 2025 Notes was payable on March 1 and September 1 of each year. See “—Debt Repurchase Program” below for more information. (e) 8.375% Senior Notes Due 2026 On January 4, 2021, Antero Resources issued $500 million of 8.375% senior notes due July 15, 2026 (the “2026 Notes”) at par . The Company redeemed million principal amount of the 2026 Notes remained outstanding. See “—Debt Repurchase Program” below for more information. The 2026 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2026 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2026 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2026 Notes is payable on January 15 and July 15 of each year. Antero Resources may redeem all or part of the 2026 Notes at any time on or after January 15, 2024 at redemption prices ranging from on or after January 15, 2026. At any time prior to January 15, 2024, Antero Resources may also redeem the 2026 Notes, in whole or in part, at a price equal to of the principal amount of the 2026 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2026 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to (f) 7.625% Senior Notes Due 2029 On January 26, 2021, Antero Resources issued $700 million of 7.625% senior notes due February 1, 2029 (the “2029 Notes”) at par . The Company redeemed million principal amount of the 2029 Notes remained outstanding. See “—Debt Repurchase Program” below for more information. The 2029 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2029 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2029 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2029 Notes is payable on February 1 and August 1 of each year. Antero Resources may redeem all or part of the 2029 Notes at any time on or after February 1, 2024 at redemption prices ranging from on or after February 1, 2027. In addition, on or before February 1, 2024, Antero Resources may redeem up to million aggregate principal amount of outstanding 2029 Notes. At any time prior to February 1, 2024, Antero Resources may also redeem the 2029 Notes, in whole or in part, at a price equal to of the principal amount of the 2029 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2029 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to (g) 5.375% Senior Notes Due 2030 On June 1, 2021, Antero Resources issued $600 million of 5.375% senior notes due March 1, 2030 (the “2030 Notes”) at par . The 2030 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2030 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2030 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2030 Notes is payable on March 1 and September 1 of each year. Antero Resources may redeem all or part of the 2030 Notes at any time on or after March 1, 2025 at redemption prices ranging from on or after March 1, 2028. In addition, on or before March 1, 2025, Antero Resources may redeem up to of the principal amount of the 2030 Notes, plus accrued and unpaid interest. At any time prior to March 1, 2025, Antero Resources may also redeem the 2030 Notes, in whole or in part, at a price equal to of the principal amount of the 2030 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2030 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to (h) 4.25% Convertible Senior Notes Due 2026 On August 21, 2020, Antero Resources issued $250 million in aggregate principal amount of 4.25% convertible senior notes due September 1, 2026 (the “2026 Convertible Notes”). On September 2, 2020, Antero Resources issued an additional million of the 2026 Convertible Notes. During 2021, the Company completed the equitization transactions described below under “—Partial Equitizations of 2026 Convertible Notes,” that extinguished million principal amount of the 2026 Convertible Notes. During the nine months ended September 30, 2022, million aggregate principal amount of the 2026 Convertible Notes were induced into conversion by the Company. The Company elected to settle these conversions by issuing approximately million. As of September 30, 2022, million principal amount of the 2026 Convertible Notes remained outstanding. The 2026 Convertible Notes were issued pursuant to an indenture and are senior, unsecured obligations of Antero Resources. The 2026 Convertible Notes bear interest at a fixed rate of per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. Proceeds from the issuance of the 2026 Convertible Notes totaled The initial conversion rate is 230.2026 shares of Antero Resources’ common stock per $1,000 principal amount of 2026 Convertible Notes, subject to adjustment upon the occurrence of specified events. As of September 30, 2022, the if-converted value of the 2026 Convertible Notes was million. The 2026 Convertible Notes will mature on September 1, 2026, unless earlier repurchased, redeemed or converted. Before May 1, 2026, noteholders will have the right to convert their 2026 Convertible Notes only upon the occurrence of the following events: ● during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on September 30, 2020, if the Last Reported Sale Price per share of Antero Resources’ common stock exceeds 130% of the Conversion Price for each of at least 20 Trading Days (whether or not consecutive) during the 30 consecutive Trading Days ending on, and including, the last Trading Day of the immediately preceding calendar quarter (the “Stock Price Condition”); ● during the five consecutive Business Days immediately after any 10 consecutive trading day period (such 10 consecutive Trading Day period, the “Measurement Period”) if the trading Price per $1,000 principal amount of 2026 Convertible Notes, as determined following a request by a noteholder in accordance with the procedures set forth below, for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price per share of common stock on such trading day and the conversion rate on such trading day; ● if Antero Resources calls any or all of the 2026 Convertible Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or ● upon the occurrence of certain specified corporate events as set forth in the indenture governing the 2026 Convertible Notes. From and after May 1, 2026, noteholders may convert their 2026 Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, Antero Resources may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of Antero Resources’ common stock or a combination of cash and shares of Antero Resources’ common stock, at Antero Resources’ election, in the manner and subject to the terms and conditions provided in the indenture governing the 2026 Convertible Notes. The 2026 Convertible Notes have met the Stock Price Condition allowing holders of the 2026 Convertible Notes to exercise their conversion right as of September 30, 2022. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the 2026 Convertible Notes. In addition, following certain corporate events, as described in the indenture governing the 2026 Convertible Notes, that occur prior to the maturity date, Antero Resources will increase the conversion rate for a holder who elects to convert its 2026 Convertible Notes in connection with such a corporate event. If certain corporate events that constitute a Fundamental Change occur, then noteholders may require Antero Resources to repurchase their 2026 Convertible Notes at a cash repurchase price equal to the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving Antero Resources and certain de-listing events with respect to Antero Resources’ common stock. Upon issuance, the Company separately accounted for the liability and equity components of the 2026 Convertible Notes. The liability component was recorded at the estimated fair value of a similar debt instrument without the conversion feature. The difference between the principal amount of the 2026 Convertible Notes and the estimated fair value of the liability component was recorded as a debt discount and was amortized to interest expense, together with debt issuance costs, over the term of the 2026 Convertible Notes using the effective interest method, with an effective interest rate of 15.1% per annum. As of the issuance date, the fair value of the 2026 Convertible Notes was estimated at $172 million, resulting in a debt discount at inception of $116 million. The equity component, representing the value of the conversion option, was computed by deducting the fair value of the liability component from the initial proceeds of the 2026 Convertible Notes issuance. This equity component was recorded, net of deferred taxes and issuance costs, in additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity. Transaction costs related to the 2026 Convertible Notes issuance were allocated to the liability and equity components based on their relative fair values. Issuance costs attributable to the liability component were recorded within debt issuance costs on the condensed consolidated balance sheet and were amortized over the term of the 2026 Convertible Notes using the effective interest method. Issuance costs attributable to the equity component were recorded as a charge to additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity. Effective January 1, 2022, the Company adopted ASU 2020-06 whereby the Company reclassified the equity component of the 2026 Convertible Notes outstanding on such date, net of deferred income taxes and equity issuance costs, from additional paid-in capital to long-term debt. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements. Partial Equitizations of 2026 Convertible Notes On January 12, 2021, the Company completed a registered direct offering (the “January Share Offering”) of an aggregate of 31.4 million shares of its common stock at a price of $6.35 per share to certain holders of the 2026 Convertible Notes. The Company used the proceeds from the January Share Offering and approximately shares of common stock per $1,000 principal amount. The Company accounted for this transaction as an inducement of the 2026 Convertible Notes, and as a result, the Company recorded a million loss on convertible note equitization in the unaudited condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2021 for the consideration paid in excess of the original terms of the 2026 Convertible Notes. Additionally, the January Equitization Transactions resulted in a loss on early extinguishment of debt of On May 13, 2021, the Company completed a registered direct offering (the “May Share Offering”) of an aggregate of 11.6 million shares of its common stock at a price of $11.01 per share to certain holders of the 2026 Convertible Notes. The Company used the proceeds from the May Share Offering and approximately shares of common stock per $1,000 principal amount. The Company accounted for this transaction as an inducement of the 2026 Convertible Notes, and as a result, the Company recorded a million loss on convertible note equitization in the unaudited condensed consolidated statements of operations and comprehensive loss for the second quarter of 2021 for the consideration paid in excess of the original terms of the 2026 Convertible Notes. Additionally, the May Equitization Transactions resulted in a loss on early extinguishment of debt of The 2026 Convertible Notes consist of the following (in thousands): (Unaudited) December 31, September 30, 2021 2022 Liability component: Principal $ 81,570 56,932 Less: unamortized note discount (1) (27,772) — Less: unamortized debt issuance costs (1,592) (1,231) Net carrying value $ 52,206 55,701 Equity component (1) $ 32,799 — (1) As of December 31, 2021, the equity component attributable to the outstanding 2026 Convertible Notes was recorded in additional paid-in capital net of $1 million of issuance costs and $8 million of deferred taxes. Upon adoption of ASU 2020-06 on January 1, 2022, the equity component was reclassified from additional paid-in capital to long-term debt and fully offset the remaining discount on the 2026 Convertible Notes. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements. Interest expense recognized on the 2026 Convertible Notes related to the stated interest rate, amortization of the debt discount and debt issuance costs totaled $2 million and $1 million for the three months ended September 30, 2021 and 2022, respectively, and $9 million and $3 million for the nine months ended September 30, 2021 and 2022, respectively. (i) Debt Repurchase Program During the first quarter of 2021, the Company redeemed the remaining $661 million aggregate principal amount of its 2022 Notes at par, plus accrued and unpaid interest, and as a result, the 2022 Notes were fully retired as of February 10, 2021. The Company redeemed the remaining $574 million of the 2023 Notes at par, plus accrued and unpaid interest, during the second quarter of 2021. The 2023 Notes were fully retired as of June 1, 2021. During the third quarter of 2021, the Company redeemed $175 million of its 2026 Notes at a redemption price of 108.375% of the principal amount thereof, plus accrued and unpaid interest, and recognized a loss on early debt extinguishment of $17 million during the three months ended September 30, 2021. During the first quarter of 2022, the Company redeemed the remaining $585 million aggregate principal amount of its 2025 Notes at a redemption price of 101.25% of the principal amount thereof, plus accrued and unpaid interest and recognized a loss on early debt extinguishment of $11 million. During the second quarter of 2022, the Company repurchased million. During the third quarter of 2022, the Company repurchased through its previously disclosed tender offer and open market transactions (i) plus accrued and unpaid interest, plus accrued and unpaid interest . For the three and nine months ended September 30, 2022, the Company recognized a loss on early debt extinguishment from these repurchases of |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | (8) Asset Retirement Obligations The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands): Asset retirement obligations—December 31, 2021 $ 53,952 Obligations incurred 2,445 Accretion expense 4,069 Settlement of obligations (946) Obligations on sold properties (42) Revisions to prior estimates (1,467) Asset retirement obligations—September 30, 2022 $ 58,011 Asset retirement obligations are included in Other liabilities on the Company’s condensed consolidated balance sheets. |
Equity-Based Compensation and C
Equity-Based Compensation and Cash Awards | 9 Months Ended |
Sep. 30, 2022 | |
Equity-Based Compensation and Cash Awards | |
Equity-Based Compensation and Cash Awards | (9) Equity-Based Compensation and Cash Awards On June 17, 2020, Antero Resources’ stockholders approved the Antero Resources Corporation 2020 Long-Term Incentive Plan (the “2020 Plan”), which replaced the Antero Resources Corporation Long-Term Incentive Plan (the “2013 Plan”), and the 2020 Plan became effective as of such date. The 2020 Plan provides for grants of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, RSU awards, vested stock awards, dividend equivalent awards and other stock-based and cash awards. The terms and conditions of the awards granted are established by the Compensation Committee of Antero Resources’ Board of Directors. Employees, officers, non-employee directors and other service providers of the Company and its affiliates are eligible to receive awards under the 2020 Plan. No further awards will be granted under the 2013 Plan on or after June 17, 2020. The 2020 Plan provides for the reservation of 10,050,000 shares of the Company’s common stock, plus the number of certain shares that become available again for delivery from the 2013 Plan in accordance with the share recycling provisions described below. The share recycling provisions allow for all or any portion of an award (including an award granted under the 2013 Plan that was outstanding as of June 17, 2020) that expires or is cancelled, forfeited, exchanged, settled for cash or otherwise terminated without actual delivery of the shares to be considered not delivered and thus, available for new awards under the 2020 Plan. Further, any shares withheld or surrendered in payment of any taxes relating to awards that were outstanding under either the 2013 Plan as of June 17, 2020 or are granted under the 2020 Plan (other than stock options and stock appreciation rights), will again be available for new awards under the 2020 Plan. A total of 8,406,240 shares were available for future grant under the 2020 Plan as of September 30, 2022. Antero Midstream Partners LP’s (“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). Antero Resources deconsolidated Antero Midstream Partners on March 12, 2019, and on such date, each outstanding phantom unit award under the AMP Plan was assumed by Antero Midstream and converted into RSUs (all such RSUs, the “Converted AM RSU Awards”) under the Antero Midstream Long Term Incentive Plan (the “AM Plan”). Each RSU award under the AM Plan represents a right to receive The Company’s equity-based compensation expense, by type of award, is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 RSU awards $ 3,327 4,974 9,957 12,468 PSU awards 1,452 5,070 3,211 9,501 Converted AM RSU Awards (1) 186 8 988 203 Equity awards issued to directors 333 350 1,033 1,050 Total expense $ 5,298 10,402 15,189 23,222 (1) Antero Resources recognized compensation expense for equity awards granted under both the 2013 Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to March 12, 2019 (date of deconsolidation) to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. (a) Restricted Stock Unit Awards A summary of RSU award activity is as follows: Weighted Average Number of Grant Date Shares Fair Value Total awarded and unvested—December 31, 2021 5,930,607 $ 5.15 Granted 992,843 35.02 Vested (2,564,930) 4.80 Forfeited (158,102) 10.63 Total awarded and unvested—September 30, 2022 4,200,418 $ 12.22 As of September 30, 2022, there was approximately $41 million of unamortized equity-based compensation expense related to unvested RSUs. That expense is expected to be recognized over a weighted average period of approximately (b) Performance Share Unit Awards Performance Share Unit Awards Based on Total Shareholder Return In 2019, the Company granted PSUs to certain of its employees and executive officers that vest based on Antero Resources’ absolute total shareholder return at the end of a three-year performance period (“2019 Absolute TSR PSUs”). The number of shares of common stock that could ultimately be earned ranged from of the target number of PSUs granted. During the second quarter of 2022, the market-based performance condition for the 2019 Absolute TSR PSUs was met at In April 2022, the Company granted PSU awards to certain of its senior management and executive officers that vest based on Antero Resources’ absolute total shareholder return determined as of the last day of each of three one-year performance periods ending on April 15, 2023, April 15, 2024 and April 15, 2025, and one cumulative three-year performance period ending on April 15, 2025, in each case, subject to certain continued employment criteria (“2022 Absolute TSR PSUs”). The number of shares of common stock that may ultimately be earned following the end of the cumulative three-year performance period with respect to the 2022 Absolute TSR PSUs ranges from zero to 200% of the target number of 2022 Absolute TSR PSUs originally granted. Expense related to these PSUs is recognized on a graded-vested basis over the term of each performance period. Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period. The following table presents the assumptions used in the Monte Carlo valuation model and the grant date fair value information for the 2022 Absolute TSR PSUs: Dividend yield — % Volatility 88 % Risk-free interest rate 2.65 % Weighted average fair value of awards granted—Absolute TSR $ 47.53 Performance Share Unit Awards Based on Leverage Ratio In April 2022, the Company granted PSUs to certain of its senior management and executive officers that vest based on the Company’s total debt less cash and cash equivalents divided by the Company’s Adjusted EBITDAX ( ) determined as of the last day of each of three one-year performance periods ending on December 31, 2022, December 31, 2023 and December 31, 2024, in each case, subject to certain continued employment criteria (“Leverage Ratio PSUs”). The number of shares of common stock that may ultimately be earned following the end of the third performance period with respect to the Leverage Ratio PSUs ranges from zero to 200% of the target number of Leverage Ratio PSUs originally granted. Expense related to the Leverage Ratio PSUs is recognized on a graded-vested basis over the term of each performance period that reflects the number of shares of common stock that are expected to be issued at the end of each measurement period, and such expense is reversed if the likelihood of achieving the performance condition becomes improbable. As of September 30, 2022, the likelihood of achieving the performance conditions related to the Leverage Ratio PSUs was probable. Summary Information for Performance Share Unit Awards A summary of PSU award activity is as follows: Weighted Number of Average Grant Units Date Fair Value Total awarded and unvested—December 31, 2021 1,847,279 $ 8.31 Granted 436,537 29.98 Vested (1,210,712) 9.26 Forfeited — — Cancelled (unearned) — — Total awarded and unvested—September 30, 2022 1,073,104 $ 16.05 As of September 30, 2022, there was approximately $15 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 (c) Converted AM RSU Awards A summary of the Converted AM RSU Awards is as follows: Weighted Average Number of Grant Date Units Fair Value Total awarded and unvested—December 31, 2021 81,707 $ 13.46 Granted — — Vested (78,880) 13.50 Forfeited — — Total awarded and unvested—September 30, 2022 2,827 $ 12.38 million of unamortized equity-based compensation expense related to unvested Converted AM RSU Awards. That expense is expected to be recognized over a weighted average period of (d) Stock Options A summary of stock option activity is as follows: Weighted Weighted Average Average Remaining Intrinsic Stock Exercise Contractual Value Options Price Life (in thousands) (1) Outstanding—December 31, 2021 351,794 $ 50.79 3.0 $ — Granted — — Exercised — — Forfeited — — Expired (3,417) 50.00 Outstanding—September 30, 2022 348,377 $ 50.80 2.1 $ — Vested—September 30, 2022 348,377 $ 50.80 2.1 $ — Exercisable—September 30, 2022 348,377 $ 50.80 2.1 $ — (1) 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 September 30, 2022, all stock options were fully vested resulting in no unamortized equity-based compensation expense. (e) Cash Awards In January 2020, the Company granted cash awards of approximately $3 million to certain executives under the 2013 Plan, and compensation expense for these awards is recognized ratably over the vesting period for each of three tranches through January 20, 2023. In July 2020, the Company granted additional cash awards in the aggregate of . As of December 31, 2021 and September 30, 2022, the Company has recorded approximately |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value | |
Fair Value | (10) Fair Value The carrying values of accounts receivable and accounts payable as of December 31, 2021 and September 30, 2022 approximated market values because of their short-term nature. The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2021 and September 30, 2022 approximated fair value because the variable interest rates are reflective of current market conditions. The following table sets forth the fair value and carrying value of the senior notes and 2026 Convertible Notes (in thousands): (Unaudited) December 31, 2021 September 30, 2022 Fair Carrying Fair Carrying Value (1) Value (2) Value (1) Value (2) 2025 Notes $ 594,866 581,117 — — 2026 Notes 370,013 321,738 108,692 103,028 2029 Notes 654,080 577,149 415,837 411,363 2030 Notes 641,400 593,234 537,780 593,736 2026 Convertible Notes 331,655 52,206 400,454 55,701 Total $ 2,592,014 2,125,444 1,462,763 1,163,828 (1) Fair values are based on Level 2 market data inputs. (2) Carrying values are presented net of unamortized debt issuance costs and debt discounts or premiums. See Note 9—Equity-Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for information regarding the fair value of equity-based awards. See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments. | |
Derivative Instruments | (11) Derivative Instruments The Company is exposed to certain risks relating to its ongoing business operations, and it uses derivative instruments to manage its commodity price risk. In addition, the Company periodically enters into contracts that contain embedded features that are required to be bifurcated and accounted for separately as derivatives. (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 and nine months ended September 30, 2021 and 2022. 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. Under these basis swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company receives the difference from the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company pays the difference to the counterparty. The Company’s derivative contracts have not been designated as hedges for accounting purposes; therefore, all gains and losses are recognized in the Company’s statements of operations. As of September 30, 2022, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows: Weighted Average Commodity / Settlement Period Index Contracted Volume Price Natural Gas October-December 2022 Henry Hub 1,105,897 MMBtu/day $ 2.48 /MMBtu January-December 2023 Henry Hub 43,000 MMBtu/day 2.37 /MMBtu In addition, the Company has a swaption agreement, which entitles the counterparty 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. The Company also has a call option and an embedded put option tied to NYMEX pricing for the production volumes associated with the Company’s retained interest in the volumetric production payment transaction (“VPP”) properties. The put option was embedded within another contract, and since the embedded put option was not clearly and closely related to its host contract, the Company bifurcated this derivative instrument and reflects it at fair value in the unaudited condensed consolidated financial statements. As of September 30, 2022, the Company’s call option and embedded put option arrangements were as follows: Embedded Call Option Put Option Commodity / Settlement Period Index Contracted Volume Strike Price Strike Price Natural Gas October-December 2022 Henry Hub 59,000 MMBtu/day $ 2.545 /MMBtu $ 2.545 /MMBtu January-December 2023 Henry Hub 55,000 MMBtu/day 2.466 /MMBtu 2.466 /MMBtu January-December 2024 Henry Hub 53,000 MMBtu/day 2.477 /MMBtu 2.527 /MMBtu January-December 2025 Henry Hub 44,000 MMBtu/day 2.564 /MMBtu 2.614 /MMBtu January-December 2026 Henry Hub 32,000 MMBtu/day 2.629 /MMBtu 2.679 /MMBtu As of September 30, 2022, 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 were as follows: Weighted Average Commodity / Settlement Period Index to Basis Differential Contracted Volume Hedged Differential Natural Gas October-December 2022 NYMEX to TCO 60,000 MMBtu/day $ 0.515 /MMBtu January-December 2023 NYMEX to TCO 50,000 MMBtu/day 0.525 /MMBtu January-December 2024 NYMEX to TCO 50,000 MMBtu/day 0.530 /MMBtu As of September 30, 2022, the Company’s fixed price swap positions for Martica, the Company’s consolidated VIE, were as follows: Weighted Average Commodity / Settlement Period Index Contracted Volume Price Natural Gas October-December 2022 Henry Hub 40,592 MMBtu/day $ 2.39 /MMBtu January-December 2023 Henry Hub 35,616 MMBtu/day 2.35 /MMBtu January-December 2024 Henry Hub 23,885 MMBtu/day 2.33 /MMBtu January-March 2025 Henry Hub 18,021 MMBtu/day 2.53 /MMBtu Propane October-December 2022 Mont Belvieu Propane-OPIS Non-TET 952 Bbl/day 19.32 /Bbl Natural Gasoline October-December 2022 Mont Belvieu Natural Gasoline-OPIS Non-TET 288 Bbl/day 34.86 /Bbl January-December 2023 Mont Belvieu Natural Gasoline-OPIS Non-TET 247 Bbl/day 40.74 /Bbl Oil October-December 2022 West Texas Intermediate 105 Bbl/day 43.50 /Bbl January-December 2023 West Texas Intermediate 99 Bbl/day 44.88 /Bbl January-December 2024 West Texas Intermediate 43 Bbl/day 44.02 /Bbl January-March 2025 West Texas Intermediate 39 Bbl/day 45.06 /Bbl (b) Summary The table below presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the condensed consolidated balance sheets (in thousands). (Unaudited) Balance Sheet December 31, September 30, Location 2021 2022 Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments $ — — Embedded derivatives—current Derivative instruments 757 954 Commodity derivatives—noncurrent Derivative instruments — — Embedded derivatives—noncurrent Derivative instruments 14,369 7,327 Total asset derivatives (1) 15,126 8,281 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives—current (2) Derivative instruments 559,851 612,237 Commodity derivatives—noncurrent (2) Derivative instruments 181,806 445,481 Total liability derivatives (1) 741,657 1,057,718 Net derivatives liability (1) $ (726,531) (1,049,437) (1) The fair value of derivative instruments was determined using Level 2 inputs. (2) As of December 31, 2021, approximately $55 million of commodity derivative liabilities, including $31 million of current commodity derivatives and $24 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of September 30, 2022, approximately $84 million of commodity derivative liabilities, including $53 million of current commodity derivatives and $31 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. The following table sets forth 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 condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands): (Unaudited) December 31, 2021 September 30, 2022 Net Amounts of Net Amounts of Gross Gross Assets Gross Gross Assets Amounts Amounts Offset (Liabilities) on Amounts Amounts Offset (Liabilities) on Recognized Recognized Balance Sheet Recognized Recognized Balance Sheet Commodity derivative assets $ 2,177 (2,177) — 516 (516) — Embedded derivative assets 15,126 — 15,126 8,281 — 8,281 Commodity derivative liabilities (743,834) 2,177 (741,657) (1,058,234) 516 (1,057,718) The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands): Statement of Operations Three Months Ended September 30, Nine Months Ended September 30, Location 2021 2022 2021 2022 Commodity derivative fair value losses (1) Revenue $ (1,238,384) (500,557) (2,228,076) (1,732,720) Embedded derivative fair value losses (1) Revenue (12,082) (29,966) (31,986) (74,845) (1) The fair value of derivative instruments was determined using Level 2 inputs . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
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 or more options to renew, with renewal terms that can extend the lease from one or more. The exercise of the lease renewal options is 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. (a) Supplemental Balance Sheet Information Related to Leases The Company’s lease assets and liabilities consisted of the following items (in thousands): (Unaudited) December 31, September 30, Leases Balance Sheet Classification 2021 2022 Operating Leases Operating lease right-of-use assets: Processing plants Operating lease right-of-use assets $ 1,739,550 1,906,419 Drilling rigs and completion services Operating lease right-of-use assets 9,860 64,022 Gas gathering lines and compressor stations (1) Operating lease right-of-use assets 1,634,928 1,523,233 Office space Operating lease right-of-use assets 33,083 42,760 Vehicles Operating lease right-of-use assets 2,009 1,074 Other office and field equipment Operating lease right-of-use assets 482 4,068 Total operating lease right-of-use assets $ 3,419,912 3,541,576 Short-term operating lease obligation Short-term lease liabilities $ 455,950 535,014 Long-term operating lease obligation Long-term lease liabilities 2,963,962 3,006,562 Total operating lease obligation $ 3,419,912 3,541,576 Finance Leases Finance lease right-of-use assets: Vehicles Other property and equipment $ 550 1,407 Total finance lease right-of-use assets (2) $ 550 1,407 Short-term finance lease obligation Short-term lease liabilities $ 397 333 Long-term finance lease obligation Long-term lease liabilities 153 1,074 Total finance lease obligation $ 550 1,407 (1) Gas gathering lines and compressor station leases includes $1.5 billion related to Antero Midstream as of December 31, 2021 and September 30, 2022. See “—Related party lease disclosure” for additional discussion. (2) Financing lease assets are recorded net of accumulated amortization of $2 million and $1 million as of December 31, 2021 and September 30, 2022, respectively. The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842, Leases (b) Supplemental Information Related to Leases Costs associated with operating and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Cost Classification Location 2021 2022 2021 2022 Operating lease cost Statement of operations Gathering, compression, processing and transportation $ 386,033 378,246 1,147,985 1,109,422 Operating lease cost Statement of operations General and administrative 2,833 2,855 8,057 8,509 Operating lease cost Statement of operations Contract termination 3,369 12,000 4,213 12,000 Operating lease cost Statement of operations Lease operating 43 44 109 133 Operating lease cost Balance sheet Proved properties (1) 25,558 34,288 82,749 83,146 Total operating lease cost $ 417,836 427,433 1,243,113 1,213,210 Finance lease cost: Amortization of right-of-use assets Statement of operations Depletion, depreciation and amortization $ 132 94 391 319 Interest on lease liabilities Statement of operations Interest expense 286 44 337 78 Total finance lease cost $ 418 138 728 397 Short-term lease payments $ 21,030 38,690 62,328 115,798 (1) Capitalized costs related to drilling and completion activities. (c) Supplemental Cash Flow Information Related to Leases The following table presents the Company’s supplemental cash flow information related to leases (in thousands): Nine Months Ended September 30, 2021 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,042,684 1,067,786 Investing cash flows from operating leases 66,042 70,654 Financing cash flows from finance leases 692 441 Noncash activities: Right-of-use assets obtained in exchange for new operating lease obligations 232,771 366,194 Increase to existing right-of-use assets and lease obligations from operating lease modifications, net (1) 345,066 119,290 (1) During the nine months ended September 30, 2021, the weighted average discount rate for remeasured operating leases decreased from 14.4% as of December 31, 2020 to 5.5% as of September 30, 2021. During the nine months ended September 30, 2022, the weighted average discount rate for remeasured operating leases decreased from 5.6% as of December 31, 2021 to 5.2% as of September 30, 2022. (d) Maturities of Lease Liabilities The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2022 (in thousands): Operating Leases Financing Leases Total Remainder of 2022 $ 178,967 145 179,112 2023 706,880 510 707,390 2024 645,692 501 646,193 2025 585,209 459 585,668 2026 534,508 210 534,718 2027 442,252 — 442,252 Thereafter 1,203,662 — 1,203,662 Total lease payments 4,297,170 1,825 4,298,995 Less: imputed interest (755,594) (418) (756,012) Total $ 3,541,576 1,407 3,542,983 (e) Lease Term and Discount Rate The following table sets forth the Company’s weighted average remaining lease term and discount rate: (Unaudited) December 31, 2021 September 30, 2022 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 7.6 years 1.9 years 7.4 years 3.5 years Weighted average discount rate 5.5 % 5.6 % 5.3 % 6.8 % (f) Related Party Lease Disclosure The Company has a gathering and compression agreement with Antero Midstream, whereby Antero Midstream 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 annual adjustments based on the consumer price index. If and to the extent the Company requests that Antero Midstream construct new low pressure lines, high pressure lines or compressor stations, the gathering and compression agreement contains options at Antero Midstream’s election for either (i) minimum volume commitments that require Antero Resources to utilize or pay for In December 2019, the Company and Antero Midstream 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 on or before the 180 th day prior to the anniversary of such effective date. The Company did 30, 2021. For the three and nine months ended September 30, 2022, the Company earned rebates of Gathering and compression fees paid by Antero related to this agreement were $178 million and $164 million for the three months ended September 30, 2021 and 2022, respectively. For the nine months ended September 30, 2021 and 2022, gathering and compression fees paid by Antero related to this agreement were million, respectively. As of December 31, 2021 and September 30, 2022, |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2022 | |
Commitments | |
Commitments | (13) Commitments The following table sets forth 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 a lease term in excess of one year as of September 30, 2022 (in thousands): Processing, Gathering, Compression Firm and Water Land Payment Operating and Imputed Interest Transportation Service Obligations Financing Leases for Leases (a) (b) (c) (d) (d) Total Remainder of 2022 $ 282,279 14,932 41 132,838 46,274 476,364 2023 1,157,330 71,650 — 538,749 168,641 1,936,370 2024 1,130,195 62,693 — 505,219 140,974 1,839,081 2025 1,107,995 51,391 — 471,022 114,646 1,745,054 2026 1,102,362 18,214 — 444,514 90,204 1,655,294 2027 1,098,497 16,927 — 374,087 68,165 1,557,676 Thereafter 5,860,221 84,876 — 1,076,554 127,108 7,148,759 Total $ 11,738,879 320,683 41 3,542,983 756,012 16,358,598 (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 unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest. (b) Processing, Gathering, Compression and Water Service Commitments The Company has entered into various long- term gas processing, gathering, compression and water 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 unaudited condensed 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 Antero Resources is committed to pay; however, the Company will record in its financial statements its proportionate share of costs based on its working interests. See Note 12—Leases to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases (e) Contract Terminations The Company incurs costs associated with the delay or cancellation of certain contracts with third-parties. These costs are recorded in Contract termination and included in the statement of operations and comprehensive income (loss). There are no remaining payment obligations related to these delayed or cancelled contracts as of |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Contingencies | |
Contingencies | (14) Contingencies Environmental In June 2018, the Company 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. The NOV alleges that combustion devices at these facilities did not meet applicable air permitting requirements. Separately, in June 2018, the Company received an information request from the 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. Subsequently, the West Virginia Department of Environmental Protection (“WVDEP”) and the EPA Region V (covering Ohio facilities) each conducted its own inspections, and the Company has separately received NOVs from WVDEP and EPA Region V related to similar issues being investigated by the EPA Region III. The Company continues to negotiate with the EPA and WVDEP to resolve the issues alleged in the NOVs and the information request. The Company’s operations at these facilities are not suspended, and management does not expect these matters to have a material adverse effect on the Company’s 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 multiple contractual disputes involving firm gas sales contracts executed June 20, 2014 (the “Contracts”) that the Company began delivering gas under in January 2016. In late 2015, WGL asserted that the natural gas index price specified in the Contracts was no longer appropriate and sought to invoke an alternative index clause in the Contracts. This dispute was referred to arbitration. In January 2017, the arbitration panel ruled in the Company’s favor and found that the natural gas index price specified in the Contracts should remain. In March of 2017, WGL filed a lawsuit against the Company in Colorado district court claiming that the Company breached contractual obligations by failing to deliver “TCO pool” gas, ultimately seeking damages of more than $40 million. Subsequently, after WGL failed to take certain volumes of gas required under the Contracts, the Company filed a separate lawsuit against WGL to recover damages that WGL refused to pay. These lawsuits were consolidated and tried in June 2019. On June 20, 2019, the Company was awarded a jury verdict of approximately million in damages against WGL. In addition, the jury rejected WGL’s claim against the Company, finding that the Company did not breach the Contracts. On December 10, 2020, the Colorado Court of Appeals affirmed the judgment of the trial court in favor of the Company. In February 2021, the Company and its royalty owners received a gross payment of approximately 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 unaudited condensed consolidated financial position, results of operations or cash flows. In addition, pending litigation against operators in the Appalachian Basin, including the Company, could have an impact on the methods for determining the amount of permitted post-production costs and types of costs that may be deducted from royalty payments, among other things, and the Company cannot predict how these issues may ultimately be resolved. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2022 | |
Related Parties | |
Related Parties | (15) Related Parties Substantially all of Antero Midstream’s revenues were and are derived from transactions with Antero Resources. See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2022 | |
Reportable Segments | |
Reportable Segments | (16) Reportable Segments (a) Summary of Reportable Segments The Company’s operations, which are located in the United States, are organized into three reportable segments: (i) the exploration, development and production of natural gas, NGLs and oil; (ii) marketing and utilization of excess firm transportation capacity and (iii) midstream services through the Company’s equity method investment in Antero Midstream. Substantially all of the Company’s 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. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income (loss). 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—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements. Exploration and Production The exploration and production segment is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. 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. Marketing Where feasible, the Company purchases and sells third-party natural gas and NGLs and markets its excess firm transportation capacity, or engages third parties to conduct these activities on the Company’s behalf, in order to optimize the revenues from these transportation agreements. The Company has entered into long-term firm transportation agreements for a significant portion of its current and expected future production in order to secure guaranteed capacity to favorable markets. Equity Method Investment in Antero Midstream The Company receives midstream services through its equity method investment in Antero Midstream. Antero Midstream owns, operates and develops midstream energy infrastructure primarily to service the Company’s production and completion activity in the Appalachian Basin. Antero Midstream’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts. (b) Reportable Segments Financial Information The summarized operating results of the Company’s reportable segments are as follows (in thousands): Three Months Ended September 30, 2021 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 300,668 232,685 245 (245) 533,353 Intersegment 530 — 224,559 (224,559) 530 Total revenue 301,198 232,685 224,804 (224,804) 533,883 Operating expenses: Lease operating 25,363 — — — 25,363 Gathering, compression, processing, transportation and water handling 628,225 — 39,499 (39,499) 628,225 General and administrative 32,442 — 14,810 (14,810) 32,442 Depletion, depreciation and amortization 182,810 — 27,487 (27,487) 182,810 Impairment of oil and gas properties 26,253 — — — 26,253 Other 56,113 266,751 1,187 (1,187) 322,864 Total operating expenses 951,206 266,751 82,983 (82,983) 1,217,957 Operating income (loss) $ (650,008) (34,066) 141,821 (141,821) (684,074) Equity in earnings of unconsolidated affiliates $ 21,450 — 24,088 (24,088) 21,450 Capital expenditures for segment assets $ 387,783 — 82,583 (82,583) 387,783 Three Months Ended September 30, 2022 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 1,904,302 159,985 1,651 (1,651) 2,064,287 Intersegment 337 — 229,383 (229,383) 337 Total revenue 1,904,639 159,985 231,034 (231,034) 2,064,624 Operating expenses: Lease operating 27,453 — — — 27,453 Gathering, compression, processing, transportation and water handling 716,388 — 46,648 (46,648) 716,388 General and administrative 42,903 — 13,587 (13,587) 42,903 Depletion, depreciation and amortization 169,607 — 34,206 (34,206) 169,607 Impairment of oil and gas properties 33,924 — — — 33,924 Other 114,812 185,377 (1,177) 1,177 300,189 Total operating expenses 1,105,087 185,377 93,264 (93,264) 1,290,464 Operating income (loss) $ 799,552 (25,392) 137,770 (137,770) 774,160 Equity in earnings of unconsolidated affiliates $ 14,972 — 24,411 (24,411) 14,972 Capital expenditures for segment assets $ 244,680 — 74,120 (74,120) 244,680 Nine Months Ended September 30, 2021 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 1,661,682 562,928 340 (340) 2,224,610 Intersegment 551 — 681,372 (681,372) 551 Total revenue 1,662,233 562,928 681,712 (681,712) 2,225,161 Operating expenses: Lease operating 71,555 — — — 71,555 Gathering, compression, processing, transportation and water handling 1,874,664 — 118,368 (118,368) 1,874,664 General and administrative 108,693 — 46,991 (46,991) 108,693 Depletion, depreciation and amortization 564,166 — 80,956 (80,956) 564,166 Impairment of oil and gas properties 69,618 — — — 69,618 Other 141,127 627,822 8,590 (8,590) 768,949 Total operating expenses 2,829,823 627,822 254,905 (254,905) 3,457,645 Operating income (loss) $ (1,167,590) (64,894) 426,807 (426,807) (1,232,484) Equity in earnings of unconsolidated affiliates $ 57,621 — 66,347 (66,347) 57,621 Capital expenditures for segment assets $ 510,941 — 156,948 (156,948) 510,941 Nine Months Ended September 30, 2022 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 4,716,827 335,173 2,288 (2,288) 5,052,000 Intersegment 1,149 — 676,144 (676,144) 1,149 Total revenue 4,717,976 335,173 678,432 (678,432) 5,053,149 Operating expenses: Lease operating 70,486 — — — 70,486 Gathering, compression, processing, transportation and water handling 1,962,878 — 131,959 (131,959) 1,962,878 General and administrative 123,033 — 47,597 (47,597) 123,033 Depletion, depreciation and amortization 511,390 — 98,181 (98,181) 511,390 Impairment of oil and gas properties 79,749 — — — 79,749 Other 258,963 415,571 5,375 (5,375) 674,534 Total operating expenses 3,006,499 415,571 283,112 (283,112) 3,422,070 Operating income (loss) $ 1,711,477 (80,398) 395,320 (395,320) 1,631,079 Equity in earnings of unconsolidated affiliates $ 54,863 — 70,467 (70,467) 54,863 Capital expenditures for segment assets $ 721,420 — 236,154 (236,154) 721,420 The summarized assets of the Company’s reportable segments are as follows (in thousands): As of December 31, 2021 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Investments in unconsolidated affiliates $ 232,399 — 696,009 (696,009) 232,399 Total assets 13,864,402 32,126 5,544,001 (5,544,001) 13,896,528 (Unaudited) As of September 30, 2022 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Investments in unconsolidated affiliates $ 222,882 — 659,006 (659,006) 222,882 Total assets 14,350,938 62,440 5,563,821 (5,563,821) 14,413,378 |
Subsidiary Guarantors
Subsidiary Guarantors | 9 Months Ended |
Sep. 30, 2022 | |
Subsidiary Guarantors | |
Subsidiary Guarantors | (17) Subsidiary Guarantors Antero Resources’ senior notes are fully and unconditionally guaranteed by Antero Resources’ existing subsidiaries that guarantee the Credit Facility. 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 tables set forth below present summarized financial information of Antero, as parent, and its guarantor subsidiaries (in thousands). The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company. Balance Sheet (Unaudited) December 31, 2021 September 30, 2022 Accounts receivable, non-guarantor subsidiaries $ — — Accounts receivable, related parties — — Other current assets 633,014 908,074 Total current assets 633,014 908,074 Noncurrent assets 12,480,350 12,753,226 Total assets $ 13,113,364 13,661,300 Accounts payable, non-guarantor subsidiaries $ — — Accounts payable, related parties 76,240 74,584 Other current liabilities 1,961,041 2,421,768 Total current liabilities 2,037,281 2,496,352 Noncurrent liabilities 5,737,999 5,368,027 Total liabilities $ 7,775,280 7,864,379 Statement of Operations Nine Months Ended September 30, 2022 Revenues $ 4,955,613 Operating expenses 3,387,903 Income from operations 1,567,710 Net income and comprehensive income including noncontrolling interests 1,168,475 Net income and comprehensive income attributable to Antero Resources Corporation $ 1,168,475 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021 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, 2021 consolidated financial statements were included in Antero Resources’ 2021 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, 2021 and September 30, 2022, results of operations for the three and nine months ended September 30, 2021 and 2022 and cash flows for the nine months ended September 30, 2021 and 2022. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is equal to its comprehensive income or loss. Operating results for the period ended September 30, 2022 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 and its variable interest entity (“VIE”), Martica Holdings LLC, (“Martica”), for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements. |
Cash and Cash Equivalents | (c) 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 condensed consolidated balance sheets, and classifies the change in accounts payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of December 31, 2021, the book overdrafts included within accounts payable and revenue distributions payable were million, respectively. As of September 30, 2022, the book overdrafts included within accounts payable and revenue distributions payable were |
Earnings (Loss) Per Common Share | (d) 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—diluted for each period is computed after giving consideration to the potential dilution from (i) outstanding equity awards using the treasury stock method and (ii) shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt) using the if-converted method. The Company includes restricted stock unit (“RSU”) awards, performance share unit (“PSU”) awards and stock options 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 effects of all equity awards and the 2026 Convertible Notes are anti-dilutive. The following is a reconciliation of the Company’s earnings (loss) attributable to common stockholders for basic and diluted earnings (loss) per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Net income (loss) attributable to Antero Resources Corporation—common shareholders $ (549,318) 559,759 (1,088,284) 1,168,475 Add: Interest expense for 2026 Convertible Notes — 830 — 2,764 Less: Tax-effect of interest expense for 2026 Convertible Notes — (193) — (642) Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions $ (549,318) 560,396 (1,088,284) 1,170,597 Income (loss) per share—basic $ (1.75) 1.83 (3.55) 3.77 Income (loss) per share—diluted $ (1.75) 1.72 (3.55) 3.51 Weighted average common shares outstanding—basic 313,790 305,343 306,201 309,954 Weighted average common shares outstanding—diluted 313,790 325,997 306,201 333,738 The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Basic weighted average number of shares outstanding 313,790 305,343 306,201 309,954 Add: Dilutive effect of RSUs — 3,041 — 3,444 Add: Dilutive effect of PSUs — 1,486 — 2,462 Add: Dilutive effect of stock options — — — — Add: Dilutive effect of 2026 Convertible Notes — 16,127 — 17,878 Diluted weighted average number of shares outstanding 313,790 325,997 306,201 333,738 Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share (1) RSUs 6,158 — 6,562 — PSUs 2,748 — 2,706 — Stock options 357 349 388 350 2026 Convertible Notes 18,778 — 18,778 — (1) The potential dilutive effects of these awards were excluded from the computation of diluted earnings (loss) per common share because the inclusion of these awards would have been anti-dilutive. |
Income Taxes | (e) Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences resulting from net operating loss carryforwards for income tax purposes and the differences between the financial statement and tax basis of assets and liabilities. The effect of changes in tax laws or tax rates is recognized in income during the period such changes are enacted. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. On July 8, 2022, Pennsylvania enacted new tax laws that are effective January 1, 2023 on a prospective basis that reduce the state’s corporate income tax rate. As a result of this tax law change, the Company’s net deferred income tax liability was reduced by |
Recently Issued Accounting Standards | (f) Recently Issued Accounting Standards Convertible Debt Instruments In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Debt with Conversion and Other Options , that required separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. It is effective for interim and annual reporting periods beginning after December 31, 2021. The Company adopted the standard effective January 1, 2022 Upon adoption of this new standard, the Company reclassified $24 million, net of deferred income taxes and equity issuance costs, from additional paid-in capital and increased long-term debt by $27 million, reduced deferred income tax liability by $6 million and reduced accumulated deficit by $3 million as of January 1, 2022. Additionally, annual interest expense for the 2026 Convertible Notes beginning January 1, 2022 is based on an effective interest rate of Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . Income Taxes |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Reconciliation of earnings (loss) attributable to common stockholders for basic and diluted earnings (loss) per share | The following is a reconciliation of the Company’s earnings (loss) attributable to common stockholders for basic and diluted earnings (loss) per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Net income (loss) attributable to Antero Resources Corporation—common shareholders $ (549,318) 559,759 (1,088,284) 1,168,475 Add: Interest expense for 2026 Convertible Notes — 830 — 2,764 Less: Tax-effect of interest expense for 2026 Convertible Notes — (193) — (642) Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions $ (549,318) 560,396 (1,088,284) 1,170,597 Income (loss) per share—basic $ (1.75) 1.83 (3.55) 3.77 Income (loss) per share—diluted $ (1.75) 1.72 (3.55) 3.51 Weighted average common shares outstanding—basic 313,790 305,343 306,201 309,954 Weighted average common shares outstanding—diluted 313,790 325,997 306,201 333,738 |
Reconciliation of basic weighted average shares outstanding to diluted weighted average shares outstanding | The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Basic weighted average number of shares outstanding 313,790 305,343 306,201 309,954 Add: Dilutive effect of RSUs — 3,041 — 3,444 Add: Dilutive effect of PSUs — 1,486 — 2,462 Add: Dilutive effect of stock options — — — — Add: Dilutive effect of 2026 Convertible Notes — 16,127 — 17,878 Diluted weighted average number of shares outstanding 313,790 325,997 306,201 333,738 Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share (1) RSUs 6,158 — 6,562 — PSUs 2,748 — 2,706 — Stock options 357 349 388 350 2026 Convertible Notes 18,778 — 18,778 — (1) The potential dilutive effects of these awards were excluded from the computation of diluted earnings (loss) per common share because the inclusion of these awards would have been anti-dilutive. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue | |
Schedule of disaggregation of revenue | The table set forth below presents revenue disaggregated by type and reportable segment to which it relates (in thousands). See Note 16—Reportable Segments to the unaudited condensed financial statements for more information on reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 Reportable Segment Revenues from contracts with customers: Natural gas sales $ 884,669 1,736,039 2,231,558 4,290,825 Exploration and production Natural gas liquids sales (ethane) 57,919 117,253 137,446 274,546 Exploration and production Natural gas liquids sales (C3+ NGLs) 540,408 503,563 1,365,581 1,708,963 Exploration and production Oil sales 56,734 67,025 153,326 219,504 Exploration and production Marketing 232,685 159,985 562,928 335,173 Marketing Total revenue from contracts with customers 1,772,415 2,583,865 4,450,839 6,829,011 Loss from derivatives, deferred revenue and other sources, net (1,238,532) (519,241) (2,225,678) (1,775,862) Total revenue $ 533,883 2,064,624 2,225,161 5,053,149 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Antero Midstream Corporation | |
Equity Method Investments | |
Schedule of reconciliation of investments in unconsolidated affiliates and summarized financial information | The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands): Balance as of December 31, 2021 (1) $ 232,399 Equity in earnings of unconsolidated affiliate 54,863 Dividends from unconsolidated affiliate (93,854) Elimination of intercompany profit 29,474 Balance as of September 30, 2022 (1) $ 222,882 (1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2021 and September 30, 2022 was $1.3 billion based on the quoted market share price of Antero Midstream. The tables set forth below present summarized financial information of Antero Midstream (in thousands): Balance Sheet (Unaudited) December 31, September 30, 2021 2022 Current assets $ 83,804 80,785 Noncurrent assets 5,460,197 5,483,036 Total assets $ 5,544,001 5,563,821 Current liabilities $ 114,009 106,382 Noncurrent liabilities 3,143,294 3,245,584 Stockholders' equity 2,286,698 2,211,855 Total liabilities and stockholders' equity $ 5,544,001 5,563,821 Statement of Operations Nine Months Ended September 30, 2021 2022 Revenues $ 681,712 678,432 Operating expenses 254,905 283,112 Income from operations 426,807 395,320 Net income $ 252,991 243,449 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following items (in thousands): (Unaudited) December 31, September 30, 2021 2022 Capital expenditures $ 46,983 50,785 Gathering, compression, processing and transportation expenses 164,900 185,383 Marketing expenses 50,589 79,119 Interest expense, net 65,093 13,819 Production and ad valorem taxes 44,298 40,152 General and administrative expense 27,740 25,693 Derivative settlements payable 35,202 84,062 Other 22,439 18,534 Total accrued liabilities $ 457,244 497,547 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt | |
Schedule of long-term debt | Long-term debt consisted of the following items (in thousands): (Unaudited) December 31, September 30, 2021 2022 Credit Facility (a) $ — 9,000 5.00% senior notes due 2025 (d) 584,635 — 8.375% senior notes due 2026 (e) 325,000 103,892 7.625% senior notes due 2029 (f) 584,000 415,837 5.375% senior notes due 2030 (g) 600,000 600,000 4.25% convertible senior notes due 2026 (h) 81,570 56,932 Total principal 2,175,205 1,185,661 Unamortized discount, net (27,772) — Unamortized debt issuance costs (21,989) (12,833) Long-term debt $ 2,125,444 1,172,828 |
4.25% convertible senior notes due 2026 | |
Long-Term Debt | |
Schedule of long-term debt | The 2026 Convertible Notes consist of the following (in thousands): (Unaudited) December 31, September 30, 2021 2022 Liability component: Principal $ 81,570 56,932 Less: unamortized note discount (1) (27,772) — Less: unamortized debt issuance costs (1,592) (1,231) Net carrying value $ 52,206 55,701 Equity component (1) $ 32,799 — (1) As of December 31, 2021, the equity component attributable to the outstanding 2026 Convertible Notes was recorded in additional paid-in capital net of $1 million of issuance costs and $8 million of deferred taxes. Upon adoption of ASU 2020-06 on January 1, 2022, the equity component was reclassified from additional paid-in capital to long-term debt and fully offset the remaining discount on the 2026 Convertible Notes. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligations | |
Schedule of reconciliation of asset retirement obligations | The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands): Asset retirement obligations—December 31, 2021 $ 53,952 Obligations incurred 2,445 Accretion expense 4,069 Settlement of obligations (946) Obligations on sold properties (42) Revisions to prior estimates (1,467) Asset retirement obligations—September 30, 2022 $ 58,011 |
Equity-Based Compensation and_2
Equity-Based Compensation and Cash Awards (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity-Based Compensation and Cash Awards | |
Schedule of equity-based compensation expense | The Company’s equity-based compensation expense, by type of award, is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2022 2021 2022 RSU awards $ 3,327 4,974 9,957 12,468 PSU awards 1,452 5,070 3,211 9,501 Converted AM RSU Awards (1) 186 8 988 203 Equity awards issued to directors 333 350 1,033 1,050 Total expense $ 5,298 10,402 15,189 23,222 (1) Antero Resources recognized compensation expense for equity awards granted under both the 2013 Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to March 12, 2019 (date of deconsolidation) to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. |
Summary of RSU award activity | Weighted Average Number of Grant Date Shares Fair Value Total awarded and unvested—December 31, 2021 5,930,607 $ 5.15 Granted 992,843 35.02 Vested (2,564,930) 4.80 Forfeited (158,102) 10.63 Total awarded and unvested—September 30, 2022 4,200,418 $ 12.22 |
Schedule of weighted average fair value assumptions used for PSUs granted | Dividend yield — % Volatility 88 % Risk-free interest rate 2.65 % Weighted average fair value of awards granted—Absolute TSR $ 47.53 |
Summary of PSU award activity | Weighted Number of Average Grant Units Date Fair Value Total awarded and unvested—December 31, 2021 1,847,279 $ 8.31 Granted 436,537 29.98 Vested (1,210,712) 9.26 Forfeited — — Cancelled (unearned) — — Total awarded and unvested—September 30, 2022 1,073,104 $ 16.05 |
Schedule of Converted AM RSU Awards | Weighted Average Number of Grant Date Units Fair Value Total awarded and unvested—December 31, 2021 81,707 $ 13.46 Granted — — Vested (78,880) 13.50 Forfeited — — Total awarded and unvested—September 30, 2022 2,827 $ 12.38 |
Summary of stock option activity | Weighted Weighted Average Average Remaining Intrinsic Stock Exercise Contractual Value Options Price Life (in thousands) (1) Outstanding—December 31, 2021 351,794 $ 50.79 3.0 $ — Granted — — Exercised — — Forfeited — — Expired (3,417) 50.00 Outstanding—September 30, 2022 348,377 $ 50.80 2.1 $ — Vested—September 30, 2022 348,377 $ 50.80 2.1 $ — Exercisable—September 30, 2022 348,377 $ 50.80 2.1 $ — (1) Intrinsic values are based on the exercise price of the options and the closing price of Antero Resources’ common stock on the referenced dates. |
Fair value (Tables)
Fair value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value | |
Schedule of fair value and carrying value of the senior notes and 2026 Convertible Notes | (Unaudited) December 31, 2021 September 30, 2022 Fair Carrying Fair Carrying Value (1) Value (2) Value (1) Value (2) 2025 Notes $ 594,866 581,117 — — 2026 Notes 370,013 321,738 108,692 103,028 2029 Notes 654,080 577,149 415,837 411,363 2030 Notes 641,400 593,234 537,780 593,736 2026 Convertible Notes 331,655 52,206 400,454 55,701 Total $ 2,592,014 2,125,444 1,462,763 1,163,828 (1) Fair values are based on Level 2 market data inputs. (2) Carrying values are presented net of unamortized debt issuance costs and debt discounts or premiums. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Schedule of outstanding commodity derivatives for Antero Resources Corporation | Weighted Average Commodity / Settlement Period Index Contracted Volume Price Natural Gas October-December 2022 Henry Hub 1,105,897 MMBtu/day $ 2.48 /MMBtu January-December 2023 Henry Hub 43,000 MMBtu/day 2.37 /MMBtu |
Schedule of call option and embedded put option arrangements | Embedded Call Option Put Option Commodity / Settlement Period Index Contracted Volume Strike Price Strike Price Natural Gas October-December 2022 Henry Hub 59,000 MMBtu/day $ 2.545 /MMBtu $ 2.545 /MMBtu January-December 2023 Henry Hub 55,000 MMBtu/day 2.466 /MMBtu 2.466 /MMBtu January-December 2024 Henry Hub 53,000 MMBtu/day 2.477 /MMBtu 2.527 /MMBtu January-December 2025 Henry Hub 44,000 MMBtu/day 2.564 /MMBtu 2.614 /MMBtu January-December 2026 Henry Hub 32,000 MMBtu/day 2.629 /MMBtu 2.679 /MMBtu |
Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO | Weighted Average Commodity / Settlement Period Index to Basis Differential Contracted Volume Hedged Differential Natural Gas October-December 2022 NYMEX to TCO 60,000 MMBtu/day $ 0.515 /MMBtu January-December 2023 NYMEX to TCO 50,000 MMBtu/day 0.525 /MMBtu January-December 2024 NYMEX to TCO 50,000 MMBtu/day 0.530 /MMBtu |
Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes | (Unaudited) Balance Sheet December 31, September 30, Location 2021 2022 Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments $ — — Embedded derivatives—current Derivative instruments 757 954 Commodity derivatives—noncurrent Derivative instruments — — Embedded derivatives—noncurrent Derivative instruments 14,369 7,327 Total asset derivatives (1) 15,126 8,281 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives—current (2) Derivative instruments 559,851 612,237 Commodity derivatives—noncurrent (2) Derivative instruments 181,806 445,481 Total liability derivatives (1) 741,657 1,057,718 Net derivatives liability (1) $ (726,531) (1,049,437) (1) The fair value of derivative instruments was determined using Level 2 inputs. (2) As of December 31, 2021, approximately $55 million of commodity derivative liabilities, including $31 million of current commodity derivatives and $24 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of September 30, 2022, approximately $84 million of commodity derivative liabilities, including $53 million of current commodity derivatives and $31 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. |
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 sets forth 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 condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands): (Unaudited) December 31, 2021 September 30, 2022 Net Amounts of Net Amounts of Gross Gross Assets Gross Gross Assets Amounts Amounts Offset (Liabilities) on Amounts Amounts Offset (Liabilities) on Recognized Recognized Balance Sheet Recognized Recognized Balance Sheet Commodity derivative assets $ 2,177 (2,177) — 516 (516) — Embedded derivative assets 15,126 — 15,126 8,281 — 8,281 Commodity derivative liabilities (743,834) 2,177 (741,657) (1,058,234) 516 (1,057,718) |
Summary of derivative fair value gains (losses) | The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands): Statement of Operations Three Months Ended September 30, Nine Months Ended September 30, Location 2021 2022 2021 2022 Commodity derivative fair value losses (1) Revenue $ (1,238,384) (500,557) (2,228,076) (1,732,720) Embedded derivative fair value losses (1) Revenue (12,082) (29,966) (31,986) (74,845) (1) The fair value of derivative instruments was determined using Level 2 inputs . |
VIE, Martica | |
Schedule of outstanding commodity derivatives | Weighted Average Commodity / Settlement Period Index Contracted Volume Price Natural Gas October-December 2022 Henry Hub 40,592 MMBtu/day $ 2.39 /MMBtu January-December 2023 Henry Hub 35,616 MMBtu/day 2.35 /MMBtu January-December 2024 Henry Hub 23,885 MMBtu/day 2.33 /MMBtu January-March 2025 Henry Hub 18,021 MMBtu/day 2.53 /MMBtu Propane October-December 2022 Mont Belvieu Propane-OPIS Non-TET 952 Bbl/day 19.32 /Bbl Natural Gasoline October-December 2022 Mont Belvieu Natural Gasoline-OPIS Non-TET 288 Bbl/day 34.86 /Bbl January-December 2023 Mont Belvieu Natural Gasoline-OPIS Non-TET 247 Bbl/day 40.74 /Bbl Oil October-December 2022 West Texas Intermediate 105 Bbl/day 43.50 /Bbl January-December 2023 West Texas Intermediate 99 Bbl/day 44.88 /Bbl January-December 2024 West Texas Intermediate 43 Bbl/day 44.02 /Bbl January-March 2025 West Texas Intermediate 39 Bbl/day 45.06 /Bbl |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Summary of supplemental balance sheet information related to leases | The Company’s lease assets and liabilities consisted of the following items (in thousands): (Unaudited) December 31, September 30, Leases Balance Sheet Classification 2021 2022 Operating Leases Operating lease right-of-use assets: Processing plants Operating lease right-of-use assets $ 1,739,550 1,906,419 Drilling rigs and completion services Operating lease right-of-use assets 9,860 64,022 Gas gathering lines and compressor stations (1) Operating lease right-of-use assets 1,634,928 1,523,233 Office space Operating lease right-of-use assets 33,083 42,760 Vehicles Operating lease right-of-use assets 2,009 1,074 Other office and field equipment Operating lease right-of-use assets 482 4,068 Total operating lease right-of-use assets $ 3,419,912 3,541,576 Short-term operating lease obligation Short-term lease liabilities $ 455,950 535,014 Long-term operating lease obligation Long-term lease liabilities 2,963,962 3,006,562 Total operating lease obligation $ 3,419,912 3,541,576 Finance Leases Finance lease right-of-use assets: Vehicles Other property and equipment $ 550 1,407 Total finance lease right-of-use assets (2) $ 550 1,407 Short-term finance lease obligation Short-term lease liabilities $ 397 333 Long-term finance lease obligation Long-term lease liabilities 153 1,074 Total finance lease obligation $ 550 1,407 (1) Gas gathering lines and compressor station leases includes $1.5 billion related to Antero Midstream as of December 31, 2021 and September 30, 2022. See “—Related party lease disclosure” for additional discussion. (2) Financing lease assets are recorded net of accumulated amortization of $2 million and $1 million as of December 31, 2021 and September 30, 2022, respectively. |
Summary of costs associated with operating leases and finance leases | Costs associated with operating and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Cost Classification Location 2021 2022 2021 2022 Operating lease cost Statement of operations Gathering, compression, processing and transportation $ 386,033 378,246 1,147,985 1,109,422 Operating lease cost Statement of operations General and administrative 2,833 2,855 8,057 8,509 Operating lease cost Statement of operations Contract termination 3,369 12,000 4,213 12,000 Operating lease cost Statement of operations Lease operating 43 44 109 133 Operating lease cost Balance sheet Proved properties (1) 25,558 34,288 82,749 83,146 Total operating lease cost $ 417,836 427,433 1,243,113 1,213,210 Finance lease cost: Amortization of right-of-use assets Statement of operations Depletion, depreciation and amortization $ 132 94 391 319 Interest on lease liabilities Statement of operations Interest expense 286 44 337 78 Total finance lease cost $ 418 138 728 397 Short-term lease payments $ 21,030 38,690 62,328 115,798 (1) Capitalized costs related to drilling and completion activities. |
Summary of supplemental cash flow information related to leases | The following table presents the Company’s supplemental cash flow information related to leases (in thousands): Nine Months Ended September 30, 2021 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,042,684 1,067,786 Investing cash flows from operating leases 66,042 70,654 Financing cash flows from finance leases 692 441 Noncash activities: Right-of-use assets obtained in exchange for new operating lease obligations 232,771 366,194 Increase to existing right-of-use assets and lease obligations from operating lease modifications, net (1) 345,066 119,290 (1) During the nine months ended September 30, 2021, the weighted average discount rate for remeasured operating leases decreased from 14.4% as of December 31, 2020 to 5.5% as of September 30, 2021. During the nine months ended September 30, 2022, the weighted average discount rate for remeasured operating leases decreased from 5.6% as of December 31, 2021 to 5.2% as of September 30, 2022. |
Summary of maturities of operating lease liabilities | The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2022 (in thousands): Operating Leases Financing Leases Total Remainder of 2022 $ 178,967 145 179,112 2023 706,880 510 707,390 2024 645,692 501 646,193 2025 585,209 459 585,668 2026 534,508 210 534,718 2027 442,252 — 442,252 Thereafter 1,203,662 — 1,203,662 Total lease payments 4,297,170 1,825 4,298,995 Less: imputed interest (755,594) (418) (756,012) Total $ 3,541,576 1,407 3,542,983 |
Summary of maturities of financing lease liabilities | The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2022 (in thousands): Operating Leases Financing Leases Total Remainder of 2022 $ 178,967 145 179,112 2023 706,880 510 707,390 2024 645,692 501 646,193 2025 585,209 459 585,668 2026 534,508 210 534,718 2027 442,252 — 442,252 Thereafter 1,203,662 — 1,203,662 Total lease payments 4,297,170 1,825 4,298,995 Less: imputed interest (755,594) (418) (756,012) Total $ 3,541,576 1,407 3,542,983 |
Summary of weighted-average remaining lease term and discount rate | (Unaudited) December 31, 2021 September 30, 2022 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 7.6 years 1.9 years 7.4 years 3.5 years Weighted average discount rate 5.5 % 5.6 % 5.3 % 6.8 % |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments | |
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 | The following table sets forth 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 a lease term in excess of one year as of September 30, 2022 (in thousands): Processing, Gathering, Compression Firm and Water Land Payment Operating and Imputed Interest Transportation Service Obligations Financing Leases for Leases (a) (b) (c) (d) (d) Total Remainder of 2022 $ 282,279 14,932 41 132,838 46,274 476,364 2023 1,157,330 71,650 — 538,749 168,641 1,936,370 2024 1,130,195 62,693 — 505,219 140,974 1,839,081 2025 1,107,995 51,391 — 471,022 114,646 1,745,054 2026 1,102,362 18,214 — 444,514 90,204 1,655,294 2027 1,098,497 16,927 — 374,087 68,165 1,557,676 Thereafter 5,860,221 84,876 — 1,076,554 127,108 7,148,759 Total $ 11,738,879 320,683 41 3,542,983 756,012 16,358,598 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Reportable Segments | |
Schedule of operating results and assets of reportable segments | The summarized operating results of the Company’s reportable segments are as follows (in thousands): Three Months Ended September 30, 2021 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 300,668 232,685 245 (245) 533,353 Intersegment 530 — 224,559 (224,559) 530 Total revenue 301,198 232,685 224,804 (224,804) 533,883 Operating expenses: Lease operating 25,363 — — — 25,363 Gathering, compression, processing, transportation and water handling 628,225 — 39,499 (39,499) 628,225 General and administrative 32,442 — 14,810 (14,810) 32,442 Depletion, depreciation and amortization 182,810 — 27,487 (27,487) 182,810 Impairment of oil and gas properties 26,253 — — — 26,253 Other 56,113 266,751 1,187 (1,187) 322,864 Total operating expenses 951,206 266,751 82,983 (82,983) 1,217,957 Operating income (loss) $ (650,008) (34,066) 141,821 (141,821) (684,074) Equity in earnings of unconsolidated affiliates $ 21,450 — 24,088 (24,088) 21,450 Capital expenditures for segment assets $ 387,783 — 82,583 (82,583) 387,783 Three Months Ended September 30, 2022 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 1,904,302 159,985 1,651 (1,651) 2,064,287 Intersegment 337 — 229,383 (229,383) 337 Total revenue 1,904,639 159,985 231,034 (231,034) 2,064,624 Operating expenses: Lease operating 27,453 — — — 27,453 Gathering, compression, processing, transportation and water handling 716,388 — 46,648 (46,648) 716,388 General and administrative 42,903 — 13,587 (13,587) 42,903 Depletion, depreciation and amortization 169,607 — 34,206 (34,206) 169,607 Impairment of oil and gas properties 33,924 — — — 33,924 Other 114,812 185,377 (1,177) 1,177 300,189 Total operating expenses 1,105,087 185,377 93,264 (93,264) 1,290,464 Operating income (loss) $ 799,552 (25,392) 137,770 (137,770) 774,160 Equity in earnings of unconsolidated affiliates $ 14,972 — 24,411 (24,411) 14,972 Capital expenditures for segment assets $ 244,680 — 74,120 (74,120) 244,680 Nine Months Ended September 30, 2021 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 1,661,682 562,928 340 (340) 2,224,610 Intersegment 551 — 681,372 (681,372) 551 Total revenue 1,662,233 562,928 681,712 (681,712) 2,225,161 Operating expenses: Lease operating 71,555 — — — 71,555 Gathering, compression, processing, transportation and water handling 1,874,664 — 118,368 (118,368) 1,874,664 General and administrative 108,693 — 46,991 (46,991) 108,693 Depletion, depreciation and amortization 564,166 — 80,956 (80,956) 564,166 Impairment of oil and gas properties 69,618 — — — 69,618 Other 141,127 627,822 8,590 (8,590) 768,949 Total operating expenses 2,829,823 627,822 254,905 (254,905) 3,457,645 Operating income (loss) $ (1,167,590) (64,894) 426,807 (426,807) (1,232,484) Equity in earnings of unconsolidated affiliates $ 57,621 — 66,347 (66,347) 57,621 Capital expenditures for segment assets $ 510,941 — 156,948 (156,948) 510,941 Nine Months Ended September 30, 2022 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Sales and revenues: Third-party $ 4,716,827 335,173 2,288 (2,288) 5,052,000 Intersegment 1,149 — 676,144 (676,144) 1,149 Total revenue 4,717,976 335,173 678,432 (678,432) 5,053,149 Operating expenses: Lease operating 70,486 — — — 70,486 Gathering, compression, processing, transportation and water handling 1,962,878 — 131,959 (131,959) 1,962,878 General and administrative 123,033 — 47,597 (47,597) 123,033 Depletion, depreciation and amortization 511,390 — 98,181 (98,181) 511,390 Impairment of oil and gas properties 79,749 — — — 79,749 Other 258,963 415,571 5,375 (5,375) 674,534 Total operating expenses 3,006,499 415,571 283,112 (283,112) 3,422,070 Operating income (loss) $ 1,711,477 (80,398) 395,320 (395,320) 1,631,079 Equity in earnings of unconsolidated affiliates $ 54,863 — 70,467 (70,467) 54,863 Capital expenditures for segment assets $ 721,420 — 236,154 (236,154) 721,420 The summarized assets of the Company’s reportable segments are as follows (in thousands): As of December 31, 2021 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Investments in unconsolidated affiliates $ 232,399 — 696,009 (696,009) 232,399 Total assets 13,864,402 32,126 5,544,001 (5,544,001) 13,896,528 (Unaudited) As of September 30, 2022 Equity Method Exploration Investment in Elimination of and Antero Unconsolidated Consolidated Production Marketing Midstream Affiliates Total Investments in unconsolidated affiliates $ 222,882 — 659,006 (659,006) 222,882 Total assets 14,350,938 62,440 5,563,821 (5,563,821) 14,413,378 |
Subsidiary Guarantors (Tables)
Subsidiary Guarantors (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Subsidiary Guarantors | |
Schedule of summarized financial information of Antero and its guarantor subsidiaries | The tables set forth below present summarized financial information of Antero, as parent, and its guarantor subsidiaries (in thousands). The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company. Balance Sheet (Unaudited) December 31, 2021 September 30, 2022 Accounts receivable, non-guarantor subsidiaries $ — — Accounts receivable, related parties — — Other current assets 633,014 908,074 Total current assets 633,014 908,074 Noncurrent assets 12,480,350 12,753,226 Total assets $ 13,113,364 13,661,300 Accounts payable, non-guarantor subsidiaries $ — — Accounts payable, related parties 76,240 74,584 Other current liabilities 1,961,041 2,421,768 Total current liabilities 2,037,281 2,496,352 Noncurrent liabilities 5,737,999 5,368,027 Total liabilities $ 7,775,280 7,864,379 Statement of Operations Nine Months Ended September 30, 2022 Revenues $ 4,955,613 Operating expenses 3,387,903 Income from operations 1,567,710 Net income and comprehensive income including noncontrolling interests 1,168,475 Net income and comprehensive income attributable to Antero Resources Corporation $ 1,168,475 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Payable | ||
Basis of Presentation | ||
Book overdrafts | $ 61 | $ 5 |
Revenue distributions payable | ||
Basis of Presentation | ||
Book overdrafts | $ 159 | $ 52 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Summary of Significant Accounting Policies | ||||
Net income (loss) attributable to Antero Resources Corporation-common shareholders | $ 559,759 | $ (549,318) | $ 1,168,475 | $ (1,088,284) |
Add: Interest expense for 2026 Convertible Notes | 830 | 2,764 | ||
Less: Tax-effect of interest expense for 2026 Convertible Notes | (193) | (642) | ||
Net income (loss) attributable to Antero Resources Corporation-common shareholders and assumed conversions | $ 560,396 | $ (549,318) | $ 1,170,597 | $ (1,088,284) |
Income (loss) per share-basic (in dollars per share) | $ 1.83 | $ (1.75) | $ 3.77 | $ (3.55) |
Income (loss) per share-diluted (in dollars per share) | $ 1.72 | $ (1.75) | $ 3.51 | $ (3.55) |
Weighted average common shares outstanding-basic (in shares) | 305,343 | 313,790 | 309,954 | 306,201 |
Weighted average common shares outstanding-diluted (in shares) | 325,997 | 313,790 | 333,738 | 306,201 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reconciliation of Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings per share and New Accounting Principle | ||||
Basic weighted average number of shares outstanding | 305,343 | 313,790 | 309,954 | 306,201 |
Diluted weighted average number of shares outstanding | 325,997 | 313,790 | 333,738 | 306,201 |
RSUs | ||||
Earnings per share and New Accounting Principle | ||||
Add: Dilutive effect | 3,041 | 3,444 | ||
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share | 6,158 | 6,562 | ||
PSUs | ||||
Earnings per share and New Accounting Principle | ||||
Add: Dilutive effect | 1,486 | 2,462 | ||
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share | 2,748 | 2,706 | ||
Stock options | ||||
Earnings per share and New Accounting Principle | ||||
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share | 349 | 357 | 350 | 388 |
4.25% convertible senior notes due 2026 | ||||
Earnings per share and New Accounting Principle | ||||
Add: Dilutive effect | 16,127 | 17,878 | ||
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share | 18,778 | 18,778 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Income Taxes (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Summary of Significant Accounting Policies | |
Reduction of net deferred income tax liability | $ 21 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Aug. 21, 2020 |
Recently Issued Accounting Standards | |||||
Additional paid-in capital | $ 5,941,977 | $ 6,371,398 | |||
Long-term debt | 1,172,828 | 2,125,444 | |||
Deferred income tax liability, net | 619,342 | 318,126 | |||
Retained earnings (accumulated deficit) | 266,468 | (617,377) | |||
4.25% convertible senior notes due 2026 | |||||
Recently Issued Accounting Standards | |||||
Long-term debt | $ 55,701 | $ 52,206 | |||
Effective interest rate (as a percent) | 15.10% | 15.10% | |||
Accounting Standards Update 2020-06 | Adjustment Effect | |||||
Recently Issued Accounting Standards | |||||
Additional paid-in capital | $ (24,000) | ||||
Long-term debt | 27,000 | ||||
Deferred income tax liability, net | (6,000) | ||||
Retained earnings (accumulated deficit) | $ 3,000 | ||||
Accounting Standards Update 2020-06 | Adjustment Effect | 4.25% convertible senior notes due 2026 | |||||
Recently Issued Accounting Standards | |||||
Effective interest rate (as a percent) | 4.90% |
Transactions (Details)
Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 15, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 17, 2021 | |
Transactions | ||||||||
Cash contribution | $ 51,000 | |||||||
ORRI | Sixth Street | ||||||||
Transactions | ||||||||
Cash contribution | $ 300,000 | |||||||
Additional contribution upon achievement of production target | $ 102,000 | |||||||
Cash distributions received | $ 51,000 | $ 51,000 | ||||||
Drilling Partnership | QL | ||||||||
Transactions | ||||||||
Percent of total development capital spending in current year funded by drilling partner | 20% | |||||||
Percent of total development capital spending in the next year to be funded by drilling partner | 15% | |||||||
Gain (loss) on interests conveyed | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Drilling Partnership | QL | Minimum | ||||||||
Transactions | ||||||||
Percent of total development capital spending in years 2-3 to be funded by drilling partner | 15% | |||||||
Drilling Partnership | QL | Maximum | ||||||||
Transactions | ||||||||
Percent of total development capital spending in years 2-3 to be funded by drilling partner | 20% |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue | ||||
Revenue | $ 2,583,865 | $ 1,772,415 | $ 6,829,011 | $ 4,450,839 |
Income (loss) from derivatives, deferred revenue and other sources | (519,241) | (1,238,532) | (1,775,862) | (2,225,678) |
Total revenue | 2,064,624 | 533,883 | 5,053,149 | 2,225,161 |
Natural gas sales | ||||
Disaggregation of Revenue | ||||
Revenue | 1,736,039 | 884,669 | 4,290,825 | 2,231,558 |
Oil sales | ||||
Disaggregation of Revenue | ||||
Revenue | 67,025 | 56,734 | 219,504 | 153,326 |
Marketing | ||||
Disaggregation of Revenue | ||||
Revenue | 159,985 | 232,685 | 335,173 | 562,928 |
Exploration and production | Natural gas sales | ||||
Disaggregation of Revenue | ||||
Revenue | 1,736,039 | 884,669 | 4,290,825 | 2,231,558 |
Exploration and production | Natural gas liquids sales (ethane) | ||||
Disaggregation of Revenue | ||||
Revenue | 117,253 | 57,919 | 274,546 | 137,446 |
Exploration and production | Natural gas liquids sales (C3+ NGLs) | ||||
Disaggregation of Revenue | ||||
Revenue | 503,563 | 540,408 | 1,708,963 | 1,365,581 |
Exploration and production | Oil sales | ||||
Disaggregation of Revenue | ||||
Revenue | 67,025 | 56,734 | 219,504 | 153,326 |
Marketing | Marketing | ||||
Disaggregation of Revenue | ||||
Revenue | $ 159,985 | $ 232,685 | $ 335,173 | $ 562,928 |
Revenue - Transaction Price All
Revenue - Transaction Price Allocation and Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Revenue | ||
Original expected duration | true | |
Receivables from contracts with customers | $ 924,343 | $ 591,442 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in unconsolidated affiliates | ||||||||||
Equity in earnings of unconsolidated affiliates | $ 14,972 | $ 21,450 | $ 54,863 | $ 57,621 | ||||||
Dividends from unconsolidated affiliate | (93,854) | (105,325) | ||||||||
Summarized Financial Information | ||||||||||
Current assets | 977,654 | 977,654 | $ 686,119 | |||||||
Total assets | 14,413,378 | 14,413,378 | 13,896,528 | |||||||
Current liabilities | 2,544,022 | 2,544,022 | 2,068,117 | |||||||
Total equity | 6,470,262 | $ 6,273,863 | $ 5,728,684 | 5,135,242 | $ 5,718,414 | $ 6,227,949 | 6,470,262 | 5,135,242 | 6,066,092 | $ 6,090,271 |
Total liabilities and equity | 14,413,378 | 14,413,378 | 13,896,528 | |||||||
Revenues | 2,064,624 | 533,883 | 5,053,149 | 2,225,161 | ||||||
Operating expenses | 1,290,464 | 1,217,957 | 3,422,070 | 3,457,645 | ||||||
Income from operations | 774,160 | (684,074) | 1,631,079 | (1,232,484) | ||||||
Net income | $ 594,507 | $ 812,033 | (174,696) | $ (566,575) | $ (534,451) | $ (11,104) | $ 1,231,844 | (1,112,130) | ||
Antero Midstream Corporation | ||||||||||
Equity Method Investments | ||||||||||
Ownership percentage | 29.10% | 29.10% | ||||||||
Investments in unconsolidated affiliates | ||||||||||
Balance at beginning of period | $ 232,399 | $ 232,399 | ||||||||
Equity in earnings of unconsolidated affiliates | 54,863 | |||||||||
Dividends from unconsolidated affiliate | (93,854) | |||||||||
Elimination of intercompany profit | 29,474 | |||||||||
Balance at end of period | $ 222,882 | 222,882 | ||||||||
Fair value of investment | 1,300,000 | 1,300,000 | 1,300,000 | |||||||
Antero Midstream Corporation | ||||||||||
Summarized Financial Information | ||||||||||
Current assets | 80,785 | 80,785 | 83,804 | |||||||
Noncurrent assets | 5,483,036 | 5,483,036 | 5,460,197 | |||||||
Total assets | 5,563,821 | 5,563,821 | 5,544,001 | |||||||
Current liabilities | 106,382 | 106,382 | 114,009 | |||||||
Noncurrent liabilities | 3,245,584 | 3,245,584 | 3,143,294 | |||||||
Total equity | 2,211,855 | 2,211,855 | 2,286,698 | |||||||
Total liabilities and equity | $ 5,563,821 | 5,563,821 | $ 5,544,001 | |||||||
Revenues | 678,432 | 681,712 | ||||||||
Operating expenses | 283,112 | 254,905 | ||||||||
Income from operations | 395,320 | 426,807 | ||||||||
Net income | $ 243,449 | $ 252,991 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities | ||
Capital expenditures | $ 50,785 | $ 46,983 |
Gathering, compression, processing, and transportation expenses | 185,383 | 164,900 |
Marketing expenses | 79,119 | 50,589 |
Interest expense, net | 13,819 | 65,093 |
Production and ad valorem taxes | 40,152 | 44,298 |
General and administrative expense | 25,693 | 27,740 |
Derivative settlements payable | 84,062 | 35,202 |
Other | 18,534 | 22,439 |
Total accrued liabilities | $ 497,547 | $ 457,244 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jul. 01, 2022 shares | Jun. 01, 2021 USD ($) | May 13, 2021 USD ($) $ / shares shares | Jan. 26, 2021 USD ($) | Jan. 12, 2021 USD ($) $ / shares shares | Jan. 04, 2021 USD ($) | Aug. 21, 2020 USD ($) D | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Oct. 18, 2021 USD ($) | Jul. 01, 2021 USD ($) | Sep. 02, 2020 USD ($) | Dec. 21, 2016 USD ($) | Mar. 17, 2015 USD ($) | Sep. 18, 2014 USD ($) | May 06, 2014 USD ($) | |
Long-Term Debt | |||||||||||||||||||||||
Total principal | $ 1,185,661 | $ 1,185,661 | $ 2,175,205 | ||||||||||||||||||||
Unamortized discount, net | (27,772) | ||||||||||||||||||||||
Unamortized debt issuance costs | (12,833) | (12,833) | (21,989) | ||||||||||||||||||||
Long-term debt | 1,172,828 | 1,172,828 | 2,125,444 | ||||||||||||||||||||
Payments of deferred financing costs | 814 | $ 22,814 | |||||||||||||||||||||
Loss on convertible note equitizations | 169 | 169 | 50,777 | ||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | (30,307) | $ (16,567) | (45,375) | (82,836) | |||||||||||||||||||
Credit Facility | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Credit facility | 9,000 | 9,000 | 0 | ||||||||||||||||||||
Current borrowing base | 3,500,000 | 3,500,000 | 3,500,000 | ||||||||||||||||||||
Lender commitments | 1,500,000 | $ 1,500,000 | 1,500,000 | ||||||||||||||||||||
Debt maturity threshold date | 180 days | ||||||||||||||||||||||
Available borrowing capacity | 986,000 | $ 986,000 | |||||||||||||||||||||
Outstanding letters of credit | $ 505,000 | $ 505,000 | 531,000 | ||||||||||||||||||||
Weighted average interest rate (as a percent) | 5.20% | 5.20% | |||||||||||||||||||||
Credit Facility | Minimum | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Commitment fees on the unused portion during any period that is not an Investment Grade Period (as a percent) | 0.375% | ||||||||||||||||||||||
Credit Facility | Maximum | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Commitment fees on the unused portion during any period that is not an Investment Grade Period (as a percent) | 0.50% | ||||||||||||||||||||||
5.125 senior notes due 2022 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Total principal | $ 500,000 | $ 600,000 | |||||||||||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | |||||||||||||||||||||
Issue price as percentage of par value | 100.50% | 100% | |||||||||||||||||||||
5.125 senior notes due 2022 | Debt Repurchase Program | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Amount of debt repurchased | $ 661,000 | ||||||||||||||||||||||
5.625% senior notes due 2023 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Total principal | $ 750,000 | ||||||||||||||||||||||
Interest rate (as a percent) | 5.625% | ||||||||||||||||||||||
Issue price as percentage of par value | 100% | ||||||||||||||||||||||
Amount of debt repurchased | $ 574,000 | ||||||||||||||||||||||
5.00% senior notes due 2025 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 584,635 | $ 600,000 | |||||||||||||||||||||
Interest rate (as a percent) | 5% | 5% | |||||||||||||||||||||
Issue price as percentage of par value | 100% | ||||||||||||||||||||||
5.00% senior notes due 2025 | Debt Repurchase Program | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Amount of debt repurchased | $ 585,000 | ||||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | $ (11,000) | ||||||||||||||||||||||
Percentage of redeemed amount | 101.25% | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 and 7.625% Senior Notes Due 2029 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | $ (30,000) | $ (4,000) | $ 45,000 | ||||||||||||||||||||
Weighted average percentage premium on repurchases of debt | 106% | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 500,000 | $ 103,892 | $ 103,892 | $ 325,000 | |||||||||||||||||||
Interest rate (as a percent) | 8.375% | 8.375% | 8.375% | 8.375% | |||||||||||||||||||
Issue price as percentage of par value | 100% | ||||||||||||||||||||||
Redemption price | 109% | ||||||||||||||||||||||
Redemption price of the debt instrument in the event of change of control (as a percent) | 101% | ||||||||||||||||||||||
Amount of debt repurchased | $ 221,000 | $ 13,000 | $ 221,000 | ||||||||||||||||||||
Carrying value of debt repurchased | 208,000 | 208,000 | |||||||||||||||||||||
8.375% Senior Notes Due 2026 | Debt Repurchase Program | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption amount | $ 175,000 | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 | On or after January 15, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 104.188% | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 | On or after January 15, 2026 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100% | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 | Prior to January 15, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 700,000 | $ 415,837 | $ 415,837 | $ 584,000 | |||||||||||||||||||
Interest rate (as a percent) | 7.625% | 7.625% | 7.625% | 7.625% | |||||||||||||||||||
Issue price as percentage of par value | 100% | ||||||||||||||||||||||
Redemption amount | $ 116,000 | ||||||||||||||||||||||
Redemption price | 107% | ||||||||||||||||||||||
Redemption price of the debt instrument in the event of change of control (as a percent) | 101% | ||||||||||||||||||||||
Amount of debt repurchased | $ 168,000 | $ 50,000 | $ 168,000 | $ 116,000 | |||||||||||||||||||
Carrying value of debt repurchased | 118,000 | 118,000 | |||||||||||||||||||||
7.625% Senior Notes Due 2029 | On or after February 1, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 103.813% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | On or after February 1, 2027 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | On or before February 1, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price of the debt instrument if redeemed with the proceeds of certain equity offerings (as a percent) | 107.625% | ||||||||||||||||||||||
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings | 35% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | Prior to February 1, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100% | ||||||||||||||||||||||
5.375% senior notes due 2030 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 600,000 | $ 600,000 | $ 600,000 | $ 600,000 | |||||||||||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | 5.375% | 5.375% | |||||||||||||||||||
Issue price as percentage of par value | 100% | ||||||||||||||||||||||
Redemption price of the debt instrument in the event of change of control (as a percent) | 101% | ||||||||||||||||||||||
5.375% senior notes due 2030 | On or after March 1, 2025 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 102.688% | ||||||||||||||||||||||
5.375% senior notes due 2030 | On or after March 1, 2028 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100% | ||||||||||||||||||||||
5.375% senior notes due 2030 | On or Before March 1, 2025 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price of the debt instrument if redeemed with the proceeds of certain equity offerings (as a percent) | 105.375% | ||||||||||||||||||||||
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings | 35% | ||||||||||||||||||||||
5.375% senior notes due 2030 | Prior to March 1, 2025 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100% | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Convertible senior notes | $ 250,000 | $ 56,932 | $ 56,932 | $ 81,570 | $ 37,500 | ||||||||||||||||||
Unamortized discount, net | $ (116,000) | (27,772) | |||||||||||||||||||||
Unamortized debt issuance costs | (1,231) | (1,231) | (1,592) | ||||||||||||||||||||
Long-term debt | $ 55,701 | $ 55,701 | 52,206 | ||||||||||||||||||||
Equity component | $ 32,799 | ||||||||||||||||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||||||||
Redemption price | 108.375% | ||||||||||||||||||||||
Amount of debt repurchased | $ 175,000 | $ 175,000 | |||||||||||||||||||||
Amount of debt converted | $ 5,000 | $ 20,000 | $ 206,000 | ||||||||||||||||||||
Shares issued on conversion | shares | 6 | ||||||||||||||||||||||
Issuance of convertible notes | $ 278,500 | ||||||||||||||||||||||
Payments of deferred financing costs | $ 9,000 | ||||||||||||||||||||||
Conversion rate | 230.2026 | ||||||||||||||||||||||
If-converted value | 400,000 | 400,000 | |||||||||||||||||||||
If-converted value above principal amount | 343,000 | 343,000 | |||||||||||||||||||||
Cash paid on settlement of debt | 200 | ||||||||||||||||||||||
Effective interest rate (as a percent) | 15.10% | 15.10% | 15.10% | ||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | $ (17,000) | ||||||||||||||||||||||
Debt issuance cost | 1,000 | ||||||||||||||||||||||
Deferred taxes | $ 8,000 | ||||||||||||||||||||||
Interest expense | $ 1,000 | $ 2,000 | $ 3,000 | $ 9,000 | |||||||||||||||||||
4.25% convertible senior notes due 2026 | January Share Offering | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Amount of debt converted | $ 150,000 | ||||||||||||||||||||||
Conversion rate | 275.3525 | ||||||||||||||||||||||
Number of shares of common stock issued (in shares) | shares | 31.4 | ||||||||||||||||||||||
Share price | $ / shares | $ 6.35 | ||||||||||||||||||||||
Line of credit proceeds used to repurchase convertible notes | $ 63,000 | ||||||||||||||||||||||
Loss on convertible note equitizations | 39,000 | ||||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | $ (41,000) | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | May Share Offering | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Amount of debt converted | $ 56,000 | ||||||||||||||||||||||
Conversion rate | 245.2802 | ||||||||||||||||||||||
Number of shares of common stock issued (in shares) | shares | 11.6 | ||||||||||||||||||||||
Share price | $ / shares | $ 11.01 | ||||||||||||||||||||||
Line of credit proceeds used to repurchase convertible notes | $ 26,000 | ||||||||||||||||||||||
Loss on convertible note equitizations | 12,000 | ||||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | $ (21,000) | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | Convertible debt threshold minimum percentage | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Stock price trigger | 98% | ||||||||||||||||||||||
Trading days | D | 5 | ||||||||||||||||||||||
Consecutive trading days | D | 10 | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | Convertible debt threshold maximum percentage | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Stock price trigger | 130% | ||||||||||||||||||||||
Trading days | D | 20 | ||||||||||||||||||||||
Consecutive trading days | D | 30 | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | Fair value | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Fair value | $ 172,000 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Asset Retirement Obligations | |
Asset retirement obligations - beginning of period | $ 53,952 |
Obligations incurred | 2,445 |
Accretion expense | 4,069 |
Settlement of obligations | (946) |
Obligations on sold properties | (42) |
Revisions to prior estimates | (1,467) |
Asset retirement obligations - end of period | $ 58,011 |
Equity-Based Compensation and_3
Equity-Based Compensation and Cash Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Mar. 12, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 17, 2020 | Mar. 11, 2019 | |
Stock-based compensation expense | |||||||
Equity based compensation expense recognized | $ 10,402 | $ 5,298 | $ 23,222 | $ 15,189 | |||
2020 Plan | |||||||
Stock-based compensation expense | |||||||
Number of stock-based compensation awards authorized | 10,050,000 | ||||||
Number of shares available for future grant under the Plan | 8,406,240 | 8,406,240 | |||||
AMP Plan | |||||||
Stock-based compensation expense | |||||||
Number of stock-based compensation awards authorized | 10,000,000 | ||||||
AMC Plan | Common Stock | |||||||
Stock-based compensation expense | |||||||
Conversion rate | 1 | ||||||
AMC Plan RSUs | |||||||
Stock-based compensation expense | |||||||
Conversion rate | 1.8926 | ||||||
RSUs | |||||||
Stock-based compensation expense | |||||||
Equity based compensation expense recognized | $ 4,974 | 3,327 | $ 12,468 | 9,957 | |||
PSUs | |||||||
Stock-based compensation expense | |||||||
Equity based compensation expense recognized | 5,070 | 1,452 | 9,501 | 3,211 | |||
Converted AM RSU Awards | |||||||
Stock-based compensation expense | |||||||
Equity based compensation expense recognized | 8 | 186 | 203 | 988 | |||
Equity awards issued to directors | |||||||
Stock-based compensation expense | |||||||
Equity based compensation expense recognized | $ 350 | $ 333 | $ 1,050 | $ 1,033 |
Equity-Based Compensation and_4
Equity-Based Compensation and Cash Awards - Restricted Stock and RSU Awards (Details) - RSUs $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Number of shares | |
Total awarded and unvested at the beginning of the period (in shares) | shares | 5,930,607 |
Granted (in shares) | shares | 992,843 |
Vested (in shares) | shares | (2,564,930) |
Forfeited (in shares) | shares | (158,102) |
Total awarded and unvested at the end of the period (in shares) | shares | 4,200,418 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 5.15 |
Granted (in dollars per share) | $ / shares | 35.02 |
Vested (in dollars per share) | $ / shares | 4.80 |
Forfeited (in dollars per share) | $ / shares | 10.63 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 12.22 |
Unamortized equity-based compensation expense | $ | $ 41 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 4 months 24 days |
Equity-Based Compensation and_5
Equity-Based Compensation and Cash Awards - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Stock options | ||
Outstanding at the beginning of the period (in shares) | 351,794 | |
Options expired (in shares) | (3,417) | |
Outstanding at the end of the period (in shares) | 348,377 | 351,794 |
Vested (in shares) | 348,377 | |
Exercisable (in shares) | 348,377 | |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 50.79 | |
Options expired (in dollars per share) | 50 | |
Outstanding at the end of the period (in dollars per share) | 50.80 | $ 50.79 |
Vested (in dollars per share) | 50.80 | |
Exercisable (in dollars per share) | $ 50.80 | |
Weighted average remaining contractual life | ||
Outstanding | 2 years 1 month 6 days | 3 years |
Vested | 2 years 1 month 6 days | |
Exercisable | 2 years 1 month 6 days | |
Additional disclosures | ||
Unamortized equity based compensation expense | $ 0 |
Equity-Based Compensation and_6
Equity-Based Compensation and Cash Awards - PSU awards (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2022 period | Jul. 31, 2020 USD ($) | Jan. 31, 2020 USD ($) tranche | Jun. 30, 2022 | Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2019 | Dec. 31, 2021 USD ($) | |
Cash Awards | |||||||
Unvested cash awards recorded in other liabilities | $ | $ 1 | $ 2 | |||||
2013 Plan | |||||||
Cash Awards | |||||||
Cash awards granted | $ | $ 3 | ||||||
Number of tranches related to cash awards | tranche | 3 | ||||||
2020 Plan | |||||||
Cash Awards | |||||||
Cash awards granted | $ | $ 3 | ||||||
Vesting period for cash awards | 4 years | ||||||
PSUs | |||||||
Number of units | |||||||
Total awarded and unvested at the beginning of the period (in shares) | shares | 1,847,279 | ||||||
Granted (in shares) | shares | 436,537 | ||||||
Vested (in shares) | shares | (1,210,712) | ||||||
Total awarded and unvested at the end of the period (in shares) | shares | 1,073,104 | ||||||
Weighted average grant date fair value | |||||||
Total awarded and unvested at the beginning of the period (in dollars per share) | $ 8.31 | ||||||
Granted (in dollars per share) | 29.98 | ||||||
Vested (in dollars per share) | 9.26 | ||||||
Total awarded and unvested at the end of the period (in dollars per share) | $ 16.05 | ||||||
Additional disclosures | |||||||
Unamortized equity-based compensation expense | $ | $ 15 | ||||||
Weighted average period for recognizing unrecognized stock-based compensation expense | 1 year 7 months 6 days | ||||||
PSU Awards Based on Absolute TSR | One Year Period | |||||||
Stock-based compensation | |||||||
Service period | 1 year | ||||||
Number of performance periods | period | 3 | ||||||
PSU Awards Based on Absolute TSR | Three Year Period | |||||||
Stock-based compensation | |||||||
Service period | 3 years | 3 years | |||||
Vesting percentage achieved | 200% | ||||||
Number of cumulative performance periods | period | 1 | ||||||
PSU Awards Based on Absolute TSR | Three Year Period | Minimum | |||||||
Stock-based compensation | |||||||
Number of PSUs that may vest, as a percent | 0% | 0% | |||||
PSU Awards Based on Absolute TSR | Three Year Period | Maximum | |||||||
Stock-based compensation | |||||||
Number of PSUs that may vest, as a percent | 200% | 200% | |||||
2022 PSU Awards Based on Absolute TSR | |||||||
Weighted-average assumptions used to calculate fair value of performance share units granted | |||||||
Volatility (as a percent) | 88% | ||||||
Risk-free interest rate (as a percent) | 2.65% | ||||||
Weighted average fair value of awards granted - Absolute TSR | $ 47.53 | ||||||
PSU Awards Based On Leverage Ratio | |||||||
Stock-based compensation | |||||||
Service period | 1 year | ||||||
Number of performance periods | period | 3 | ||||||
PSU Awards Based On Leverage Ratio | Minimum | |||||||
Stock-based compensation | |||||||
Number of PSUs that may vest, as a percent | 0% | ||||||
PSU Awards Based On Leverage Ratio | Maximum | |||||||
Stock-based compensation | |||||||
Number of PSUs that may vest, as a percent | 200% |
Equity-Based Compensation and_7
Equity-Based Compensation and Cash Awards - Converted AM RSU Awards (Details) - Converted AM RSU Awards $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Number of units | |
Total awarded and unvested at the beginning of the period (in shares) | shares | 81,707 |
Vested (in shares) | shares | (78,880) |
Total awarded and unvested at the end of the period (in shares) | shares | 2,827 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 13.46 |
Vested (in dollars per share) | $ / shares | 13.50 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 12.38 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 3 months 18 days |
Maximum | |
Weighted average grant date fair value | |
Unamortized equity-based compensation expense | $ | $ 0.1 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair value | Level 2 market data | ||
Financial Instruments | ||
Value | $ 1,462,763 | $ 2,592,014 |
Fair value | Level 2 market data | 5.00% senior notes due 2025 | ||
Financial Instruments | ||
Value | 594,866 | |
Fair value | Level 2 market data | 8.375% Senior Notes Due 2026 | ||
Financial Instruments | ||
Value | 108,692 | 370,013 |
Fair value | Level 2 market data | 7.625% Senior Notes Due 2029 | ||
Financial Instruments | ||
Value | 415,837 | 654,080 |
Fair value | Level 2 market data | 5.375% senior notes due 2030 | ||
Financial Instruments | ||
Value | 537,780 | 641,400 |
Fair value | Level 2 market data | 4.25% convertible senior notes due 2026 | ||
Financial Instruments | ||
Value | 400,454 | 331,655 |
Carrying value | ||
Financial Instruments | ||
Value | 1,163,828 | 2,125,444 |
Carrying value | 5.00% senior notes due 2025 | ||
Financial Instruments | ||
Value | 581,117 | |
Carrying value | 8.375% Senior Notes Due 2026 | ||
Financial Instruments | ||
Value | 103,028 | 321,738 |
Carrying value | 7.625% Senior Notes Due 2029 | ||
Financial Instruments | ||
Value | 411,363 | 577,149 |
Carrying value | 5.375% senior notes due 2030 | ||
Financial Instruments | ||
Value | 593,736 | 593,234 |
Carrying value | 4.25% convertible senior notes due 2026 | ||
Financial Instruments | ||
Value | $ 55,701 | $ 52,206 |
Derivative Instruments - Commod
Derivative Instruments - Commodity derivatives (Details) | Sep. 30, 2022 MMBTU / d bbl / d $ / MMBTU $ / bbl |
Swaption Agreement | |
Derivative Instruments | |
Notional amount | MMBTU / d | 427,500 |
Strike price | 2.77 |
Swaps | Natural gas. | Henry Hub | October-December 2022 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 1,105,897 |
Weighted average index price | 2.48 |
Swaps | Natural gas. | Henry Hub | January-December 2023 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 43,000 |
Weighted average index price | 2.37 |
Swaps | Natural gas. | Henry Hub | January-December 2023 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 35,616 |
Weighted average index price | 2.35 |
Swaps | Natural gas. | Henry Hub | January-December 2024 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 23,885 |
Weighted average index price | 2.33 |
Swaps | Natural gas. | NYMEX to TCO | October-December 2022 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 60,000 |
Weighted average hedged differential | 0.515 |
Swaps | Natural gas. | NYMEX to TCO | January-December 2023 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 50,000 |
Weighted average hedged differential | 0.525 |
Swaps | Natural gas. | NYMEX to TCO | January-December 2024 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 50,000 |
Weighted average hedged differential | 0.530 |
Swaps | Propane | Mont Belvieu Propane OPIS Non TET | October-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | bbl / d | 952 |
Weighted average index price | $ / bbl | 19.32 |
Swaps | Natural Gasoline | Henry Hub | October-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 40,592 |
Weighted average index price | 2.39 |
Swaps | Natural Gasoline | Mont Belvieu Natural Gasoline-OPIS Non-TET | October-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | bbl / d | 288 |
Weighted average index price | $ / bbl | 34.86 |
Swaps | Natural Gasoline | Mont Belvieu Natural Gasoline-OPIS Non-TET | January-December 2023 | VIE, Martica | |
Derivative Instruments | |
Notional amount | bbl / d | 247 |
Weighted average index price | $ / bbl | 40.74 |
Swaps | Oil | Henry Hub | January-March 2025 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 18,021 |
Weighted average index price | 2.53 |
Swaps | Oil | West Texas Intermediate | October-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | bbl / d | 105 |
Weighted average index price | $ / bbl | 43.50 |
Swaps | Oil | West Texas Intermediate | January-December 2023 | VIE, Martica | |
Derivative Instruments | |
Notional amount | bbl / d | 99 |
Weighted average index price | $ / bbl | 44.88 |
Swaps | Oil | West Texas Intermediate | January-December 2024 | VIE, Martica | |
Derivative Instruments | |
Notional amount | bbl / d | 43 |
Weighted average index price | $ / bbl | 44.02 |
Swaps | Oil | West Texas Intermediate | January-March 2025 | VIE, Martica | |
Derivative Instruments | |
Notional amount | bbl / d | 39 |
Weighted average index price | $ / bbl | 45.06 |
Call option and embedded put option | Natural gas. | Henry Hub | October-December 2022 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 59,000 |
Call option and embedded put option | Natural gas. | Henry Hub | January-December 2023 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 55,000 |
Call option and embedded put option | Natural gas. | Henry Hub | January-December 2024 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 53,000 |
Call option and embedded put option | Natural gas. | Henry Hub | January-December 2025 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 44,000 |
Call option and embedded put option | Natural gas. | Henry Hub | January-December 2026 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 32,000 |
Call option and embedded put option | Natural gas. | Put option | Henry Hub | October-December 2022 | |
Derivative Instruments | |
Strike price | 2.545 |
Call option and embedded put option | Natural gas. | Put option | Henry Hub | January-December 2023 | |
Derivative Instruments | |
Strike price | 2.466 |
Call option and embedded put option | Natural gas. | Put option | Henry Hub | January-December 2024 | |
Derivative Instruments | |
Strike price | 2.527 |
Call option and embedded put option | Natural gas. | Put option | Henry Hub | January-December 2025 | |
Derivative Instruments | |
Strike price | 2.614 |
Call option and embedded put option | Natural gas. | Put option | Henry Hub | January-December 2026 | |
Derivative Instruments | |
Strike price | 2.679 |
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | October-December 2022 | |
Derivative Instruments | |
Strike price | 2.545 |
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | January-December 2023 | |
Derivative Instruments | |
Strike price | 2.466 |
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | January-December 2024 | |
Derivative Instruments | |
Strike price | 2.477 |
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | January-December 2025 | |
Derivative Instruments | |
Strike price | 2.564 |
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | January-December 2026 | |
Derivative Instruments | |
Strike price | 2.629 |
Derivative Instruments - Fair v
Derivative Instruments - Fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | $ 954 | $ 757 |
Noncurrent portion of fair value of derivative assets | 7,327 | 14,369 |
Current portion of fair value of derivative liabilities | 612,237 | 559,851 |
Noncurrent portion of fair value of derivative liabilities | 445,481 | 181,806 |
Derivatives not designated as hedges for accounting purposes | ||
Fair value of derivative instruments | ||
Total asset derivatives | 8,281 | 15,126 |
Total liability derivatives | 1,057,718 | 741,657 |
Net derivatives assets (liabilities) | (1,049,437) | (726,531) |
Derivatives not designated as hedges for accounting purposes | Commodity derivatives | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative liabilities | 612,237 | 559,851 |
Noncurrent portion of fair value of derivative liabilities | 445,481 | 181,806 |
Derivatives not designated as hedges for accounting purposes | Commodity derivatives | VIE, Martica | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative liabilities | 53,000 | 31,000 |
Noncurrent portion of fair value of derivative liabilities | 31,000 | 24,000 |
Total liability derivatives | 84,000 | 55,000 |
Derivatives not designated as hedges for accounting purposes | Embedded derivatives | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | 954 | 757 |
Noncurrent portion of fair value of derivative assets | $ 7,327 | $ 14,369 |
Derivative Instruments - Assets
Derivative Instruments - Assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Commodity derivatives | ||
Commodity derivative assets | ||
Gross amounts on balance sheet | $ 516 | $ 2,177 |
Gross amounts offset on balance sheet | (516) | (2,177) |
Commodity derivative liabilities | ||
Gross amounts on balance sheet | (1,058,234) | (743,834) |
Gross amounts offset on balance sheet | 516 | 2,177 |
Total liability derivatives | (1,057,718) | (741,657) |
Embedded derivatives | ||
Commodity derivative assets | ||
Gross amounts on balance sheet | 8,281 | 15,126 |
Total asset derivatives | $ 8,281 | $ 15,126 |
Derivative Instruments - Fair_2
Derivative Instruments - Fair value gains (losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Derivative fair value gains (losses) | $ (530,523) | $ (1,250,466) | $ (1,807,565) | $ (2,260,062) |
Commodity derivatives | Revenue. | ||||
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Derivative fair value gains (losses) | (500,557) | (1,238,384) | (1,732,720) | (2,228,076) |
Embedded derivatives | Revenue. | ||||
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Derivative fair value gains (losses) | $ (29,966) | $ (12,082) | $ (74,845) | $ (31,986) |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Options to renew - Operating lease | true |
Minimum | |
Leases | |
Renewal terms - Operating lease | 1 year |
Maximum | |
Leases | |
Renewal terms - Operating lease | 20 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Lease Assets | ||
Operating leases right-of-use assets | $ 3,541,576 | $ 3,419,912 |
Short-term operating lease obligation | $ 535,014 | $ 455,950 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Operating And Finance Lease Liability Current | Operating And Finance Lease Liability Current |
Long-term operating lease obligation | $ 3,006,562 | $ 2,963,962 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating And Finance Lease Liability Noncurrent | Operating And Finance Lease Liability Noncurrent |
Total operating lease obligation | $ 3,541,576 | $ 3,419,912 |
Finance leases, right of use assets | 1,407 | 550 |
Short-term finance lease obligation | $ 333 | $ 397 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Operating And Finance Lease Liability Current | Operating And Finance Lease Liability Current |
Long-term finance lease obligation | $ 1,074 | $ 153 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating And Finance Lease Liability Noncurrent | Operating And Finance Lease Liability Noncurrent |
Total finance lease obligation | $ 1,407 | $ 550 |
Finance leases, accumulated amortization | 1,000 | 2,000 |
Vehicles | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 1,074 | $ 2,009 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating leases right-of-use assets | Operating leases right-of-use assets |
Finance leases, right of use assets | $ 1,407 | $ 550 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Other, Gross | Property, Plant and Equipment, Other, Gross |
Other office and field equipment | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 4,068 | $ 482 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating leases right-of-use assets | Operating leases right-of-use assets |
Processing plants | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 1,906,419 | $ 1,739,550 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating leases right-of-use assets | Operating leases right-of-use assets |
Drilling rigs and completion services | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 64,022 | $ 9,860 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating leases right-of-use assets | Operating leases right-of-use assets |
Gas gathering lines and compressor stations | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 1,523,233 | $ 1,634,928 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating leases right-of-use assets | Operating leases right-of-use assets |
Gas gathering lines and compressor stations | Antero Midstream Corporation | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 1,500,000 | $ 1,500,000 |
Office space | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 42,760 | $ 33,083 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating leases right-of-use assets | Operating leases right-of-use assets |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||||||
Total operating lease cost | $ 427,433 | $ 417,836 | $ 1,213,210 | $ 1,243,113 | ||
Total finance lease cost | 138 | 418 | 397 | 728 | ||
Short-term lease payments | $ 38,690 | $ 21,030 | 115,798 | 62,328 | ||
Operating cash flows from operating leases | 1,067,786 | 1,042,684 | ||||
Investing cash flows from operating leases | 70,654 | 66,042 | ||||
Financing cash flows from finance leases | 441 | 692 | ||||
Right-of-use assets obtained in exchange for new operating lease obligations | 366,194 | 232,771 | ||||
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net | $ 119,290 | $ 345,066 | ||||
Weighted average discount rate for remeasured operating leases (as a percent) | 5.20% | 5.50% | 5.20% | 5.50% | 5.60% | 14.40% |
Proved properties | ||||||
Leases | ||||||
Total operating lease cost | $ 34,288 | $ 25,558 | $ 83,146 | $ 82,749 | ||
Gathering, compression, water handling and treatment, processing, and transportation | ||||||
Leases | ||||||
Total operating lease cost | 378,246 | 386,033 | 1,109,422 | 1,147,985 | ||
General and administrative. | ||||||
Leases | ||||||
Total operating lease cost | 2,855 | 2,833 | 8,509 | 8,057 | ||
Contract termination | ||||||
Leases | ||||||
Total operating lease cost | 12,000 | 3,369 | 12,000 | 4,213 | ||
Lease operating. | ||||||
Leases | ||||||
Total operating lease cost | 44 | 43 | 133 | 109 | ||
Depletion, depreciation and amortization | ||||||
Leases | ||||||
Amortization of right-of-use assets | 94 | 132 | 319 | 391 | ||
Interest expense | ||||||
Leases | ||||||
Interest on lease liabilities | $ 44 | $ 286 | $ 78 | $ 337 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Future minimum payments for operating lease liabilities | ||
Remainder of 2022 | $ 178,967 | |
2023 | 706,880 | |
2024 | 645,692 | |
2025 | 585,209 | |
2026 | 534,508 | |
2027 | 442,252 | |
Thereafter | 1,203,662 | |
Total lease payments | 4,297,170 | |
Less: imputed interest | (755,594) | |
Total operating lease obligation | 3,541,576 | $ 3,419,912 |
Future minimum payments for financing lease liabilities | ||
Remainder of 2022 | 145 | |
2023 | 510 | |
2024 | 501 | |
2025 | 459 | |
2026 | 210 | |
Total lease payments | 1,825 | |
Less: imputed interest | (418) | |
Total finance lease obligation | 1,407 | $ 550 |
Future minimum payments for total lease liabilities | ||
Remainder of 2022 | 179,112 | |
2023 | 707,390 | |
2024 | 646,193 | |
2025 | 585,668 | |
2026 | 534,718 | |
2027 | 442,252 | |
Thereafter | 1,203,662 | |
Total lease payments | 4,298,995 | |
Less: imputed interest | (756,012) | |
Total | $ 3,542,983 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Leases | ||
Weighted-average remaining lease term: Operating lease | 7 years 4 months 24 days | 7 years 7 months 6 days |
Weighted-average discount rate: Operating lease | 5.30% | 5.50% |
Weighted-average remaining lease term: Finance lease | 3 years 6 months | 1 year 10 months 24 days |
Weighted-average discount rate: Finance lease | 6.80% | 5.60% |
Leases - Related Party Lease Di
Leases - Related Party Lease Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Leases | |||||||
Accounts payable, related parties | $ 74,584 | $ 74,584 | $ 76,240 | ||||
Antero Midstream Corporation | |||||||
Leases | |||||||
Minimum volume commitments that require Antero to utilize or pay certain percentage of the capacity of new construction for high pressure lines (as a percent) | 75% | ||||||
Minimum volume commitments that require Antero to utilize or pay certain percentage of the capacity of new construction of compressor stations (as a percent) | 70% | ||||||
Term of lease | 10 years | 10 years | |||||
Notice period | 180 days | ||||||
Rebate received | $ 12,000 | $ 0 | $ 0 | $ 36,000 | |||
Gathering and compression fees paid | 164,000 | $ 178,000 | 492,000 | $ 539,000 | |||
Accounts payable, related parties | $ 53,000 | $ 53,000 | $ 54,000 | ||||
Percentage of rate of return | 13% | 13% | |||||
Term for rate of return on constructions | 7 years |
Commitments (Details)
Commitments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Future minimum payments | |
Remainder of 2022 | $ 476,364 |
2023 | 1,936,370 |
2024 | 1,839,081 |
2025 | 1,745,054 |
2026 | 1,655,294 |
2027 | 1,557,676 |
Thereafter | 7,148,759 |
Total | 16,358,598 |
Firm transportation | |
Future minimum payments | |
Remainder of 2022 | 282,279 |
2023 | 1,157,330 |
2024 | 1,130,195 |
2025 | 1,107,995 |
2026 | 1,102,362 |
2027 | 1,098,497 |
Thereafter | 5,860,221 |
Total | 11,738,879 |
Processing, Gathering, Compression and Water Service | |
Future minimum payments | |
Remainder of 2022 | 14,932 |
2023 | 71,650 |
2024 | 62,693 |
2025 | 51,391 |
2026 | 18,214 |
2027 | 16,927 |
Thereafter | 84,876 |
Total | 320,683 |
Land payment obligations | |
Future minimum payments | |
Remainder of 2022 | 41 |
Total | 41 |
Operating and Financing Leases | |
Future minimum payments | |
Remainder of 2022 | 132,838 |
2023 | 538,749 |
2024 | 505,219 |
2025 | 471,022 |
2026 | 444,514 |
2027 | 374,087 |
Thereafter | 1,076,554 |
Total | 3,542,983 |
Imputed Interest for Leases | |
Future minimum payments | |
Remainder of 2022 | 46,274 |
2023 | 168,641 |
2024 | 140,974 |
2025 | 114,646 |
2026 | 90,204 |
2027 | 68,165 |
Thereafter | 127,108 |
Total | $ 756,012 |
Contingencies (Details)
Contingencies (Details) - WGL $ in Millions | 1 Months Ended | |||
Jun. 20, 2019 USD ($) | Feb. 28, 2021 USD ($) | Jun. 30, 2019 lawsuit | Mar. 31, 2017 USD ($) | |
Settled Litigation | ||||
Contingencies | ||||
Damages awarded | $ 96 | |||
Settlement amount received | $ 107 | |||
Pending Litigation | ||||
Contingencies | ||||
Number of lawsuits | lawsuit | 2 | |||
Pending Litigation | Minimum | ||||
Contingencies | ||||
Damages sought | $ 40 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Operating results and assets of reportable segments | |||||
Number of reportable segments | segment | 3 | ||||
Sales and revenues: | |||||
Sales and revenues - Third-party | $ 2,064,287 | $ 533,353 | $ 5,052,000 | $ 2,224,610 | |
Sales and revenues - Intersegment | 337 | 530 | 1,149 | 551 | |
Revenues | 2,064,624 | 533,883 | 5,053,149 | 2,225,161 | |
Operating expenses: | |||||
Lease operating | 27,453 | 25,363 | 70,486 | 71,555 | |
General and administrative | 42,903 | 32,442 | 123,033 | 108,693 | |
Depletion, depreciation, and amortization | 169,607 | 182,810 | 511,390 | 564,166 | |
Impairment of oil and gas properties | 33,924 | 26,253 | 79,749 | 69,618 | |
Other | 300,189 | 322,864 | 674,534 | 768,949 | |
Total operating expenses | 1,290,464 | 1,217,957 | 3,422,070 | 3,457,645 | |
Operating income (loss) | 774,160 | (684,074) | 1,631,079 | (1,232,484) | |
Equity in earnings of unconsolidated affiliates | 14,972 | 21,450 | 54,863 | 57,621 | |
Capital expenditures for segment assets | 244,680 | 387,783 | 721,420 | 510,941 | |
Investments in unconsolidated affiliates | 222,882 | 222,882 | $ 232,399 | ||
Total assets | 14,413,378 | 14,413,378 | 13,896,528 | ||
Gathering, compression, water handling and treatment, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 716,388 | 628,225 | 1,962,878 | 1,874,664 | |
Operating segments | Exploration and production | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | 1,904,302 | 300,668 | 4,716,827 | 1,661,682 | |
Sales and revenues - Intersegment | 337 | 530 | 1,149 | 551 | |
Revenues | 1,904,639 | 301,198 | 4,717,976 | 1,662,233 | |
Operating expenses: | |||||
Lease operating | 27,453 | 25,363 | 70,486 | 71,555 | |
General and administrative | 42,903 | 32,442 | 123,033 | 108,693 | |
Depletion, depreciation, and amortization | 169,607 | 182,810 | 511,390 | 564,166 | |
Impairment of oil and gas properties | 33,924 | 26,253 | 79,749 | 69,618 | |
Other | 114,812 | 56,113 | 258,963 | 141,127 | |
Total operating expenses | 1,105,087 | 951,206 | 3,006,499 | 2,829,823 | |
Operating income (loss) | 799,552 | (650,008) | 1,711,477 | (1,167,590) | |
Equity in earnings of unconsolidated affiliates | 14,972 | 21,450 | 54,863 | 57,621 | |
Capital expenditures for segment assets | 244,680 | 387,783 | 721,420 | 510,941 | |
Investments in unconsolidated affiliates | 222,882 | 222,882 | 232,399 | ||
Total assets | 14,350,938 | 14,350,938 | 13,864,402 | ||
Operating segments | Exploration and production | Gathering, compression, water handling and treatment, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 716,388 | 628,225 | 1,962,878 | 1,874,664 | |
Operating segments | Marketing | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | 159,985 | 232,685 | 335,173 | 562,928 | |
Revenues | 159,985 | 232,685 | 335,173 | 562,928 | |
Operating expenses: | |||||
Other | 185,377 | 266,751 | 415,571 | 627,822 | |
Total operating expenses | 185,377 | 266,751 | 415,571 | 627,822 | |
Operating income (loss) | (25,392) | (34,066) | (80,398) | (64,894) | |
Total assets | 62,440 | 62,440 | 32,126 | ||
Operating segments | Antero Midstream Corporation | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | 1,651 | 245 | 2,288 | 340 | |
Sales and revenues - Intersegment | 229,383 | 224,559 | 676,144 | 681,372 | |
Revenues | 231,034 | 224,804 | 678,432 | 681,712 | |
Operating expenses: | |||||
General and administrative | 13,587 | 14,810 | 47,597 | 46,991 | |
Depletion, depreciation, and amortization | 34,206 | 27,487 | 98,181 | 80,956 | |
Other | (1,177) | 1,187 | 5,375 | 8,590 | |
Total operating expenses | 93,264 | 82,983 | 283,112 | 254,905 | |
Operating income (loss) | 137,770 | 141,821 | 395,320 | 426,807 | |
Equity in earnings of unconsolidated affiliates | 24,411 | 24,088 | 70,467 | 66,347 | |
Capital expenditures for segment assets | 74,120 | 82,583 | 236,154 | 156,948 | |
Investments in unconsolidated affiliates | 659,006 | 659,006 | 696,009 | ||
Total assets | 5,563,821 | 5,563,821 | 5,544,001 | ||
Operating segments | Antero Midstream Corporation | Gathering, compression, water handling and treatment, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 46,648 | 39,499 | 131,959 | 118,368 | |
Elimination of intersegment transaction | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | (1,651) | (245) | (2,288) | (340) | |
Sales and revenues - Intersegment | (229,383) | (224,559) | (676,144) | (681,372) | |
Revenues | (231,034) | (224,804) | (678,432) | (681,712) | |
Operating expenses: | |||||
General and administrative | (13,587) | (14,810) | (47,597) | (46,991) | |
Depletion, depreciation, and amortization | (34,206) | (27,487) | (98,181) | (80,956) | |
Other | 1,177 | (1,187) | (5,375) | (8,590) | |
Total operating expenses | (93,264) | (82,983) | (283,112) | (254,905) | |
Operating income (loss) | (137,770) | (141,821) | (395,320) | (426,807) | |
Equity in earnings of unconsolidated affiliates | (24,411) | (24,088) | (70,467) | (66,347) | |
Capital expenditures for segment assets | (74,120) | (82,583) | (236,154) | (156,948) | |
Investments in unconsolidated affiliates | (659,006) | (659,006) | (696,009) | ||
Total assets | (5,563,821) | (5,563,821) | $ (5,544,001) | ||
Elimination of intersegment transaction | Gathering, compression, water handling and treatment, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | $ (46,648) | $ (39,499) | $ (131,959) | $ (118,368) |
Subsidiary Guarantors - Balance
Subsidiary Guarantors - Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Other current assets | $ 28,587 | $ 14,922 |
Total current assets | 977,654 | 686,119 |
Total assets | 14,413,378 | 13,896,528 |
Liabilities and Stockholders' Equity | ||
Accounts payable, non-guarantor subsidiaries | 74,584 | 76,240 |
Other current liabilities | 6,010 | 11,140 |
Total current liabilities | 2,544,022 | 2,068,117 |
Total liabilities | 7,943,116 | 7,830,436 |
Parent (Antero) And Guarantor Subsidiaries | ||
Current assets: | ||
Other current assets | 908,074 | 633,014 |
Total current assets | 908,074 | 633,014 |
Noncurrent assets | 12,753,226 | 12,480,350 |
Total assets | 13,661,300 | 13,113,364 |
Liabilities and Stockholders' Equity | ||
Accounts payable, related parties | 74,584 | 76,240 |
Other current liabilities | 2,421,768 | 1,961,041 |
Total current liabilities | 2,496,352 | 2,037,281 |
Noncurrent liabilities | 5,368,027 | 5,737,999 |
Total liabilities | $ 7,864,379 | $ 7,775,280 |
Subsidiary Guarantors - Stateme
Subsidiary Guarantors - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed consolidated statement of operations and comprehensive income (loss) | ||||||||
Revenues | $ 2,583,865 | $ 1,772,415 | $ 6,829,011 | $ 4,450,839 | ||||
Operating expenses | 1,290,464 | 1,217,957 | 3,422,070 | 3,457,645 | ||||
Income from operations | 774,160 | (684,074) | 1,631,079 | (1,232,484) | ||||
Net income and comprehensive income including noncontrolling interests | 594,507 | $ 812,033 | $ (174,696) | (566,575) | $ (534,451) | $ (11,104) | 1,231,844 | (1,112,130) |
Net income and comprehensive income attributable to Antero Resources Corporation | $ 559,759 | $ (549,318) | 1,168,475 | $ (1,088,284) | ||||
Parent (Antero) And Guarantor Subsidiaries | ||||||||
Condensed consolidated statement of operations and comprehensive income (loss) | ||||||||
Revenues | 4,955,613 | |||||||
Operating expenses | 3,387,903 | |||||||
Income from operations | 1,567,710 | |||||||
Net income and comprehensive income including noncontrolling interests | 1,168,475 | |||||||
Net income and comprehensive income attributable to Antero Resources Corporation | $ 1,168,475 |