Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $0.01 | |
Trading Symbol | AR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 313,929,992 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001433270 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Accounts receivable | $ 34,768 | $ 28,457 |
Accrued revenue | 652,521 | 425,314 |
Derivative instruments | 627 | 105,130 |
Other current assets | 20,937 | 15,238 |
Total current assets | 708,853 | 574,139 |
Oil and gas properties, at cost (successful efforts method): | ||
Unproved properties | 1,052,543 | 1,175,178 |
Proved properties | 12,559,146 | 12,260,713 |
Gathering systems and facilities | 5,802 | 5,802 |
Other property and equipment | 91,621 | 74,361 |
Property and equipment, gross | 13,709,112 | 13,516,054 |
Less accumulated depletion, depreciation, and amortization | (4,176,296) | (3,869,116) |
Property and equipment, net | 9,532,816 | 9,646,938 |
Operating leases right-of-use assets | 2,969,642 | 2,613,603 |
Derivative instruments | 14,834 | 47,293 |
Investment in unconsolidated affiliate | 236,597 | 255,082 |
Other assets | 8,796 | 13,790 |
Total assets | 13,471,538 | 13,150,845 |
Current liabilities: | ||
Accounts payable | 60,409 | 26,728 |
Accounts payable, related parties | 79,595 | 69,860 |
Accrued liabilities | 501,132 | 343,524 |
Revenue distributions payable | 315,936 | 198,117 |
Derivative instruments | 1,436,292 | 31,242 |
Short-term lease liabilities | 353,470 | 266,024 |
Deferred revenue, VPP | 39,528 | 45,257 |
Other current liabilities | 16,320 | 2,302 |
Total current liabilities | 2,802,682 | 983,054 |
Long-term liabilities: | ||
Long-term debt | 2,341,033 | 3,001,593 |
Deferred income tax liability | 55,636 | 412,252 |
Derivative instruments | 331,570 | 99,172 |
Long-term lease liabilities | 2,616,889 | 2,348,785 |
Deferred revenue, VPP | 127,844 | 156,024 |
Other liabilities | 60,642 | 59,694 |
Total liabilities | 8,336,296 | 7,060,574 |
Commitments and contingencies (Notes 13 and 14) | ||
Equity: | ||
Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued | ||
Common stock, $0.01 par value; authorized - 1,000,000 shares; 268,672 shares and 313,866 shares issued and outstanding as of December 31, 2020 and September 30, 2021, respectively | 3,138 | 2,686 |
Additional paid-in capital | 6,365,929 | 6,195,497 |
Accumulated deficit | (1,518,762) | (430,478) |
Total stockholders' equity | 4,850,305 | 5,767,705 |
Noncontrolling interests | 284,937 | 322,566 |
Total equity | 5,135,242 | 6,090,271 |
Total liabilities and equity | $ 13,471,538 | $ 13,150,845 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
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 | 313,866,000 | 268,672,000 |
Common stock, shares outstanding | 313,866,000 | 268,672,000 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue and other: | ||||
Revenue | $ 1,772,415 | $ 889,492 | $ 4,450,839 | $ 2,292,185 |
Commodity derivative fair value losses | (1,250,466) | (514,751) | (2,260,062) | (116,933) |
Amortization of deferred revenue, VPP | 11,404 | 5,175 | 33,833 | 5,175 |
Gain on sale of assets | 539 | 2,827 | ||
Other income | 530 | 675 | 551 | 2,180 |
Total revenue | 534,422 | 380,591 | 2,227,988 | 2,182,607 |
Operating expenses: | ||||
Lease operating | 25,363 | 21,450 | 71,555 | 71,836 |
Production and ad valorem taxes | 52,219 | 25,790 | 130,610 | 71,481 |
Impairment of oil and gas properties | 26,253 | 29,392 | 69,618 | 155,962 |
Depletion, depreciation, and amortization | 182,810 | 238,418 | 564,166 | 652,130 |
Accretion of asset retirement obligations | 828 | 1,115 | 2,947 | 3,330 |
General and administrative | 32,442 | 31,640 | 108,693 | 101,264 |
Contract termination and rig stacking | 3,370 | 1,246 | 4,305 | 12,317 |
Total operating expenses | 1,218,496 | 1,134,700 | 3,460,472 | 3,281,205 |
Operating loss | (684,074) | (754,109) | (1,232,484) | (1,098,598) |
Other income (expense): | ||||
Interest expense, net | (45,414) | (48,043) | (138,120) | (152,956) |
Equity in earnings of unconsolidated affiliate | 21,450 | 24,419 | 57,621 | (83,408) |
Gain (loss) on early extinguishment of debt | (16,567) | 55,633 | (82,836) | 175,365 |
Transaction expense | (626) | (524) | (3,102) | (6,662) |
Loss on convertible note equitization | (50,777) | |||
Impairment of equity method investment | (610,632) | |||
Total other income (expense) | (41,157) | 31,485 | (217,214) | (678,293) |
Loss before income taxes | (725,231) | (722,624) | (1,449,698) | (1,776,891) |
Provision for income tax benefit | 158,656 | 168,778 | 337,568 | 421,167 |
Net loss and comprehensive loss including noncontrolling interests | (566,575) | (553,846) | (1,112,130) | (1,355,724) |
Less: net loss and comprehensive loss attributable to noncontrolling interests | (17,257) | (18,233) | (23,846) | (17,997) |
Net loss and comprehensive loss attributable to Antero Resources Corporation | $ (549,318) | $ (535,613) | $ (1,088,284) | $ (1,337,727) |
Loss per share-basic (in dollars per share) | $ (1.75) | $ (1.99) | $ (3.55) | $ (4.89) |
Loss per share-diluted (in dollars per share) | $ (1.75) | $ (1.99) | $ (3.55) | $ (4.89) |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 313,790 | 268,511 | 306,201 | 273,689 |
Diluted (in shares) | 313,790 | 268,511 | 306,201 | 273,689 |
Natural gas sales | ||||
Revenue and other: | ||||
Revenue | $ 884,669 | $ 436,304 | $ 2,231,558 | $ 1,214,801 |
Natural gas liquids sales | ||||
Revenue and other: | ||||
Revenue | 598,327 | 327,426 | 1,503,027 | 797,296 |
Oil sales | ||||
Revenue and other: | ||||
Revenue | 56,734 | 34,265 | 153,326 | 78,233 |
Gathering, compression, processing, and transportation | ||||
Operating expenses: | ||||
Cost of goods and services sold | 628,225 | 656,615 | 1,874,664 | 1,877,084 |
Marketing | ||||
Revenue and other: | ||||
Revenue | 232,685 | 91,497 | 562,928 | 201,855 |
Operating expenses: | ||||
Cost of goods and services sold | 266,751 | 128,580 | 627,822 | 334,906 |
Exploration | ||||
Operating expenses: | ||||
Cost of goods and services sold | $ 235 | $ 454 | $ 6,092 | $ 895 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||
Equity-based compensation expense | $ 5,298 | $ 5,699 | $ 15,189 | $ 17,001 |
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, 2019 | $ 2,959 | $ 6,130,365 | $ 837,419 | $ 6,970,743 | |
Balances (in shares) at Dec. 31, 2019 | 295,941 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 2 | (34) | (32) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 178 | ||||
Repurchases and retirements of common stock | $ (272) | (42,418) | (42,690) | ||
Repurchases and retirements of common stock (in shares) | (27,193) | ||||
Equity-based compensation | 3,329 | 3,329 | |||
Net income (loss) and comprehensive income (loss) | (338,810) | (338,810) | |||
Balance at Mar. 31, 2020 | $ 2,689 | 6,091,242 | 498,609 | 6,592,540 | |
Balance (in shares) at Mar. 31, 2020 | 268,926 | ||||
Balances at Dec. 31, 2019 | $ 2,959 | 6,130,365 | 837,419 | 6,970,743 | |
Balances (in shares) at Dec. 31, 2019 | 295,941 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) and comprehensive income (loss) | (1,355,724) | ||||
Balance at Sep. 30, 2020 | $ 2,685 | 6,165,750 | (500,308) | $ 315,754 | 5,983,881 |
Balance (in shares) at Sep. 30, 2020 | 268,549 | ||||
Balances at Mar. 31, 2020 | $ 2,689 | 6,091,242 | 498,609 | 6,592,540 | |
Balances (in shares) at Mar. 31, 2020 | 268,926 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common units in Martica Holdings, LLC | 300,000 | 300,000 | |||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 5 | (305) | (300) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 464 | ||||
Distributions to non-controlling interests | (3,413) | (3,413) | |||
Repurchases and retirements of common stock | $ (10) | (743) | (753) | ||
Repurchases and retirements of common stock (in shares) | (1,000) | ||||
Equity-based compensation | 7,973 | 7,973 | |||
Net income (loss) and comprehensive income (loss) | (463,304) | 236 | (463,068) | ||
Balance at Jun. 30, 2020 | $ 2,684 | 6,098,167 | 35,305 | 296,823 | 6,432,979 |
Balance (in shares) at Jun. 30, 2020 | 268,390 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common units in Martica Holdings, LLC | 51,000 | 51,000 | |||
Equity component of 2026 Convertible Notes, net | 61,926 | 61,926 | |||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes | $ 1 | (42) | (41) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares) | 159 | ||||
Distributions to non-controlling interests | (13,836) | (13,836) | |||
Equity-based compensation | 5,699 | 5,699 | |||
Net income (loss) and comprehensive income (loss) | (535,613) | (18,233) | (553,846) | ||
Balance at Sep. 30, 2020 | $ 2,685 | 6,165,750 | (500,308) | 315,754 | 5,983,881 |
Balance (in shares) at Sep. 30, 2020 | 268,549 | ||||
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 | ||||
Distributions to non-controlling interests | (24,699) | (24,699) | |||
Equity-based compensation | 5,642 | 5,642 | |||
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 | ||||
Distributions to non-controlling interests | (21,329) | (21,329) | |||
Equity-based compensation | 4,249 | 4,249 | |||
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 | ||||
Distributions to non-controlling interests | (18,755) | (18,755) | |||
Equity-based compensation | 5,298 | 5,298 | |||
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 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows provided by (used in) operating activities: | ||
Net loss including noncontrolling interests | $ (1,112,130) | $ (1,355,724) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depletion, depreciation, amortization, and accretion | 567,113 | 655,460 |
Impairments | 69,618 | 766,594 |
Commodity derivative fair value losses | 2,260,062 | 116,933 |
Gains (losses) on settled commodity derivatives | (481,083) | 740,805 |
Proceeds from (payments for) derivative monetizations | (4,569) | 18,073 |
Gain on sale of assets | (2,827) | |
Equity-based compensation expense | 15,189 | 17,001 |
Deferred income tax benefit | (337,568) | (426,267) |
Equity in (earnings) loss of unconsolidated affiliate | (57,621) | 83,408 |
Dividends of earnings from unconsolidated affiliate | 105,325 | 128,267 |
Amortization of deferred revenue | (33,833) | (5,175) |
Amortization of debt issuance costs, debt discount, debt premium and other | 10,122 | 7,391 |
(Gain) loss on early extinguishment of debt | 82,836 | (175,365) |
Loss on convertible note equitization | 50,777 | |
Changes in current assets and liabilities: | ||
Accounts receivable | (11,336) | (15,454) |
Accrued revenue | (227,207) | (20,843) |
Other current assets | (5,695) | (1,455) |
Accounts payable including related parties | 39,108 | (2,198) |
Accrued liabilities | 124,382 | 15,522 |
Revenue distributions payable | 117,819 | (54,403) |
Other current liabilities | 16,470 | (60) |
Net cash provided by operating activities | 1,184,952 | 492,510 |
Cash flows provided by (used in) investing activities: | ||
Additions to unproved properties | (48,960) | (31,136) |
Drilling and completion costs | (447,899) | (693,920) |
Additions to other property and equipment | (14,082) | (1,346) |
Settlement of water earnout | 125,000 | |
Proceeds from asset sales | 3,192 | |
Proceeds from VPP sale, net | 215,833 | |
Change in other liabilities | (77) | |
Change in other assets | 2,371 | 1,506 |
Net cash used in investing activities | (505,455) | (384,063) |
Cash flows provided by (used in) financing activities: | ||
Repurchases of common stock | (43,443) | |
Issuance of senior notes | 1,800,000 | |
Issuance of convertible notes | 287,500 | |
Repayment of senior notes | (1,424,354) | (899,971) |
Borrowings (repayments) on bank credit facilities, net | (919,500) | 275,000 |
Payment of debt issuance costs | (22,814) | (8,907) |
Sale of noncontrolling interest | 51,000 | 300,000 |
Distributions to noncontrolling interests in Martica Holdings LLC | (64,783) | (17,249) |
Employee tax withholding for settlement of equity compensation awards | (12,706) | (373) |
Convertible note equitizations | (85,648) | |
Other | (692) | (1,004) |
Net cash used in financing activities | (679,497) | (108,447) |
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 | 130,947 | 135,494 |
Increase (decrease) in accounts payable and accrued liabilities for additions to property and equipment | $ 33,547 | $ (44,302) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 | |
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, 2020 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, 2020 consolidated financial statements were included in Antero Resources’ 2020 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, 2020 and September 30, 2021 and its results of operations for the three and nine months ended September 30, 2020 and 2021 and cash flows for the nine months ended September 30, 2020 and 2021. 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, 2021 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. The noncontrolling interest reflected in the Company’s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2020 and 2021 represents the Company’s interest in Martica owned by third parties. See Note 3—Transactions to the unaudited condensed consolidated financial statements for more information on Martica. (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, 2020, the book overdrafts included within accounts payable and revenue distributions payable were $11 million and $15 million, respectively. As of September 30, 2021, the book overdrafts included within accounts payable and revenue distributions payable were $37 million and $31 million, respectively. (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 outstanding equity awards and shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt). 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. The potential dilutive effect of the 2026 Convertible Notes is calculated using the (i) treasury stock method for the three and nine months ended September 30, 2020 as a result of the Company’s intent to settle the principal amount of such convertible notes in cash upon conversion during the nine months ended September 30, 2020, and (ii) if-converted method for the three and nine months ended September 30, 2021, as a result of the partial equitizations of the 2026 Convertible Notes during the nine months ended September 30, 2021. See Note 7—Long-Term Debt for further discussion on the equitization transactions. 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 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, 2020 2021 2020 2021 Basic weighted average number of shares outstanding 268,511 313,790 273,689 306,201 Add: Dilutive effect of RSUs — — — — Add: Dilutive effect of PSUs — — — — Add: Dilutive effect of outstanding stock options — — — — Add: Dilutive effect of 2026 Convertible Notes — — — — Diluted weighted average number of shares outstanding 268,511 313,790 273,689 306,201 Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share (1) RSUs 10,129 6,158 7,397 6,562 PSUs 1,988 2,748 1,808 2,706 Outstanding stock options 432 357 432 388 2026 Convertible Notes (2) — 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. (2) Under the treasury stock method, only the amount by which the conversion value exceeds the aggregate principal amount of the 2026 Convertible Notes is considered in the diluted earnings per share computation. As of September 30, 2020, the conversion value did not exceed the principal amount of the notes, and accordingly, there was no impact to diluted earnings per share for the three and nine months ended September 30, 2020. Under the if-converted method, the weighted average number of shares outstanding for the three and nine months ended September 30, 2020, would have been 28 million and 10 million, respectively, all of which 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 April 9, 2021, West Virginia enacted new tax laws related to its apportionment and sourcing methodologies. The newly enacted laws are effective January 1, 2022 on a prospective basis and are expected to reduce the Company’s net income or loss that is apportioned to West Virginia. As a result of this tax law change, the Company’s net deferred income tax liability was reduced by $34 million as of September 30, 2021, which includes a $48 million increase in deferred tax assets, partially offset by a $14 million increase in valuation allowance. (f) Recently Issued Accounting Standards Convertible 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 require separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. The new standard becomes effective for the Company on January 1, 2022, and early adoption is permitted. The Company is evaluating the transition method it plans to use for adoption on January 1, 2022. However, the Company has utilized the modified retrospective approach to quantify the expected impact of this standard on its financial statements. Upon adoption of this new standard, the Company expects to reclassify between $15 million and $30 million, net of deferred income taxes and equity issuance costs, to long-term debt and deferred income tax liability, as applicable, from stockholders’ equity, which amount is subject to adjustment for any conversions or other transactions until adoption of this new standard. Additionally, annual interest expense for the 2026 Convertible Notes will be based on an effective interest rate of for the three and nine months ended September 30, 2021. T he Company does not believe that adoption of the standard will impact its operational strategies or development prospects. Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . Income Taxes (“ASC 740”) and also simplifies portions of ASC 740 by clarifying and amending existing guidance. It is effective for interim and annual reporting periods after December 15, 2020. The Company adopted this ASU on January 1, 2021, and it did not have a material impact on the Company's unaudited condensed consolidated financial statements . |
Transactions
Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Transactions | |
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 first quarter of 2021 as of September 31, 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. The ORRIs include an overriding royalty interest of 1.25% of the Company’s working interest in all of its proved operated developed properties in West Virginia and Ohio, subject to certain excluded wells (the “Initial PDP Override”), and an overriding royalty interest of 3.75% of the Company’s working interest in all of its undeveloped properties in West Virginia and Ohio (the “Development Override”). Wells turned to sales after April 1, 2020 and prior to the later of (a) the date on which the Company turns to sales 2.2 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override and (b) the earlier of (i) April 1, 2023 and (ii) the date on which the Company turns to sales 3.82 million lateral feet (net to the Company’s interest) of horizontal wells are subject to the Development Override. The ORRIs also include an additional overriding royalty interest of 2.00% of the Company’s working interest in the properties underlying the Initial PDP Override (the “Incremental Override”). The Incremental Override (or a portion thereof, as applicable) may be re-conveyed to the Company (at the Company’s election) if certain production targets attributable to the ORRIs are achieved through March 31, 2023. Any portion of the Incremental Override that may not be re-conveyed to the Company based on the Company failing to achieve such production volumes through March 31, 2023 will remain with Martica. Prior to Sixth Street achieving an internal rate of return of 13% and 1.5 x cash-on-cash return (the “Hurdle”), Sixth Street will receive all distributions in respect of the Initial PDP Override and the Development Override, and the Company will receive all distributions in respect of the Incremental Override, unless certain production targets are not achieved, in which case Sixth Street will receive some or all of the distributions in respect of the Incremental Override. Following Sixth Street achieving the Hurdle, the Company will receive 85% of the distributions in respect of the ORRIs to which Sixth Street was entitled immediately prior to the Hurdle being achieved. The conveyance of the ORRIs from the Company to Martica was accounted for as a transaction between entities under common control. As a result, the contributed ORRIs have been recorded by Martica at their historical cost. (b) Volumetric Production Payment Transaction On August 10, 2020, the Company completed a volumetric production payment transaction and received net proceeds of approximately $216 million (the "VPP"). In connection with the VPP, the Company entered into a purchase and sale agreement, together with a conveyance agreement and production and marketing agreement, with J.P. Morgan Ventures Energy Corporation ("JPM-VEC") to convey, effective July 1, 2020, an overriding royalty interest in dry gas producing properties in West Virginia (the "VPP Properties") equal to 136,589,000 MMBtu over the expected seven-year term of the VPP. The Company has accounted for the VPP as a conveyance under ASC 932, Extractive Activities—Oil and Gas (“ASC 932”), and the net proceeds were recorded as deferred revenue in the condensed consolidated balance sheet as of the transaction closing. Deferred revenue is recognized as volumes are delivered using the units-of-production method over the term of the VPP. Under the production and marketing agreement, Antero and its affiliates provide certain marketing services as JPM-VEC’s agent, and any income or expenses related to these services will be recorded as marketing revenue or marketing expenses as appropriate. Contemporaneously with the VPP, the Company executed a call option related to the production volumes associated with its retained interest in the VPP properties, which is collateralized by a mortgage on the VPP properties. Additionally, the production and marketing agreement contains an embedded put option related to the production volumes for the Company’s retained interest in the VPP properties, which has been bifurcated from the production and marketing arrangement and accounted for as a derivative instrument recorded at fair value. See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for more information on the Company’s derivative instruments. (c) 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, Antero Resources and QL agreed to a capital budget for such annual tranche, and for each subsequent year through 2024, Antero Resources will propose a capital budget and estimated internal rate of return (“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 an assignment, bill of sale and conveyance pursuant to which QL will be conveyed a proportionate working interest percentage in each well spud in that year, which conveyance will not be subject to any reversion. Under the terms of the arrangement, QL will fund 20% of development capital for wells spud in 2021 and is expected to fund between 15% and 20% of development capital for wells spud from 2022 through 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 December 31 following the end of each tranche year. 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 and such conveyances are recorded in the unaudited condensed consolidated financial statements as QL obtains its proportionate working interest in each well. No gain or loss was recognized for the interests conveyed during the three and nine months ended September 30, 2021. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Revenue | (4) Revenue (a) Disaggregation of Revenue The table set forth below presents revenue disaggregated by type and the reportable segment to which it relates (in thousands). See Note 16—Reportable Segments for more information on reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 Reportable Segment Revenues from contracts with customers: Natural gas sales $ 436,304 884,669 1,214,801 2,231,558 Exploration and production Natural gas liquids sales (ethane) 32,444 57,919 85,884 137,446 Exploration and production Natural gas liquids sales (C3+ NGLs) 294,982 540,408 711,412 1,365,581 Exploration and production Oil sales 34,265 56,734 78,233 153,326 Exploration and production Marketing 91,497 232,685 201,855 562,928 Marketing Total revenue from contracts with customers 889,492 1,772,415 2,292,185 4,450,839 Loss from derivatives, deferred revenue and other sources, net (508,901) (1,237,993) (109,578) (2,222,851) Total revenue $ 380,591 534,422 2,182,607 2,227,988 (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 one year or less. (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, 2020 and September 30, 2021, the Company’s receivables from contracts with customers were $425 million and $653 million, respectively. |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments. | |
Equity Method Investments | (5) Equity Method Investment (a) Summary of Equity Method Investment As of September 30, 2021, Antero owned approximately 29.1% of Antero Midstream Corporation’s 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 for the nine months ended September 30, 2021 (in thousands): Balance as of December 31, 2020 (1) $ 255,082 Equity in earnings of unconsolidated affiliate 57,621 Dividends from unconsolidated affiliate (105,325) Elimination of intercompany profit 29,219 Balance as of September 30, 2021 (1) $ 236,597 (1) The Company’s investment in Antero Midstream Corporation as of December 31, 2020 and September 30, 2021 was $1.1 billion and $1.4 billion, respectively, based on the quoted market share price of Antero Midstream Corporation. (b) Summarized Financial Information of Antero Midstream Corporation The tables set forth below present summarized financial information of Antero Midstream Corporation (in thousands). Balance Sheet December 31, September 30, 2020 2021 Current assets $ 93,931 87,490 Noncurrent assets 5,516,981 5,446,143 Total assets $ 5,610,912 5,533,633 Current liabilities $ 94,005 118,690 Noncurrent liabilities 3,098,621 3,102,350 Stockholders' equity 2,418,286 2,312,593 Total liabilities and stockholders' equity $ 5,610,912 5,533,633 Statement of Operations Nine Months Ended September 30, 2020 2021 Revenues $ 696,859 681,712 Operating expenses 929,480 254,905 Income (loss) from operations (232,621) 426,807 Net income (loss) $ (198,985) 252,991 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities | |
Accrued Liabilities | (6) Accrued Liabilities Accrued liabilities as of December 31, 2020 and September 30, 2021 consisted of the following items (in thousands): December 31, September 30, 2020 2021 Capital expenditures $ 32,372 52,958 Gathering, compression, processing, and transportation expenses 152,724 158,443 Marketing expenses 68,193 115,317 Interest expense, net 25,645 34,693 Accrued production and ad valorem taxes 37,371 30,488 Derivative settlements payable 3,425 72,354 Other 23,794 36,879 Total accrued liabilities $ 343,524 501,132 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Long-Term Debt. | |
Long-Term Debt | (7) Long-Term Debt Long-term debt as of December 31, 2020 and September 30, 2021 consisted of the following items (in thousands): December 31, September 30, 2020 2021 Credit Facility (a) $ 1,017,000 97,500 5.125% senior notes due 2022 (b) 660,516 — 5.625% senior notes due 2023 (c) 574,182 — 5.00% senior notes due 2025 (d) 590,000 590,000 8.375% senior notes due 2026 (e) — 325,000 7.625% senior notes due 2029 (f) — 700,000 5.375% senior notes due 2030 (g) — 600,000 4.25% convertible senior notes due 2026 (h) 287,500 81,570 Total principal 3,129,198 2,394,070 Unamortized premium (discount), net (111,886) (28,780) Unamortized debt issuance costs (15,719) (24,257) Long-term debt $ 3,001,593 2,341,033 (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. References in the notes to the condensed consolidated financial statements to the (i) “Prior Credit Facility” refers to the senior secured revolving credit facility in effect for periods before October 26, 2021, (ii) “New Credit Facility” refers to the senior secured revolving credit facility in effect on or after October 26, 2021 and (iii) “Credit Facility” refers to Prior Credit Facility and New Credit Facility, collectively. Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of Antero Resources’ assets and are subject to regular semi-annual redeterminations. As of billion. As of October 26, 2021, the New Credit Facility had a borrowing base of $3.5 billion and lender commitments were $1.5 billion. The next redetermination of the borrowing base is scheduled to occur in April 2022. The maturity date of the Credit Facility is the earlier of (i) October 26, 2026 and (ii) the date that is 180 days prior to the earliest stated redemption date of any series of the Company’s senior notes. 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 Prior Credit Facility as of December 31, 2020 and September 30, 2021. The Prior Credit Facility provides for borrowing under either an Alternate Base Rate or as a Eurodollar Loan (as each term is defined in the Prior Credit Facility), and the New Credit Facility provides for borrowing under either an Adjusted Term Secured Overnight Financing Rate (“SOFR”), an Adjusted Daily Simple SOFR or an Alternate Base Rate (each as defined in the New Credit Facility). The Credit Facility provides for interest only payments until maturity at which time all outstanding borrowings are due. Interest is payable at a variable rate based on (i) LIBOR or the prime rate, determined by Antero Resources’ election at the time of borrowing, plus an applicable margin rate under the Prior Credit Facility and (ii) SOFR or prime rate, determined by Antero Resources’ election at the time of borrowing, plus an applicable margin rate under the New 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 (i) with respect to the New Credit Facility, determined with reference to borrowing base utilization, both rates subject to certain exceptions based on the leverage ratio then in effect. The New 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 New Credit Facility). As of September 30, 2021, Antero Resources had an outstanding balance under the Credit Facility of $98 million, with a weighted average interest rate of 3.40%, and had outstanding letters of credit of $742 million. As of December 31, 2020, Antero Resources had an outstanding balance under the Credit Facility of $1.0 billion, with a weighted average interest rate of 3.26%, and outstanding letters of credit of $730 million. (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 $500 million of the 2022 Notes at 100.5 % of par. The Company repurchased or otherwise redeemed all of the 2022 Notes between 2019 and the first quarter of 2021. The 2022 Notes were unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2022 Notes ranked pari passu to Antero Resources’ other outstanding senior notes. The 2022 Notes were 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 2022 Notes was payable on June 1 and December 1 of each year. See “—Debt Repurchase Program” below for further details on 2022 Notes repurchases. (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 . The Company repurchased or otherwise fully redeemed all of the 2023 Notes between 2020 and the second quarter of 2021. The 2023 Notes were unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2023 Notes ranked pari passu to Antero Resources’ other outstanding senior notes. The 2023 Notes were 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 2023 Notes was payable on June 1 and December 1 of each year. See “—Debt Repurchase Program” below for further details on 2023 Notes repurchases and redemption. (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 $10 million of the 2025 Notes from time to time during 2020, and as of September 30, 2021, $590 million principal amount of the 2025 Notes remained outstanding. The 2025 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2025 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2025 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2025 Notes is payable on March 1 and September 1 of each year. Antero Resources may redeem all or part of the 2025 Notes at any time at redemption prices ranging from 102.5% currently to 100.00 % on or after March 1, 2023. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2025 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2025 Notes, plus accrued and unpaid interest. (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 $175 million of the 2026 Notes on July 1, 2021, and as of September 30, 2021, $325 million principal amount of the 2026 Notes remained outstanding. See “—Debt Repurchase Program” below for further details on the 2026 Notes redemption. 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 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. See “—Subsequent Event” below for further details on the 2029 Notes redemption. 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 2026 (the “ 2026 Convertible Notes”). On September 2, 2020, Antero Resources issued an additional million of the 2026 Convertible Notes. During the nine months ended September 30, 2021, the Company completed the equitization transactions described below under “—Partial Equitizations of 2026 Convertible Notes,” that extinguished $206 million principal amount of the 2026 Convertible Notes, and as of September 30, 2021, $82 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 million. The 2026 Convertible Notes will mature on September 1, 2026, unless earlier repurchased, redeemed or converted. Before May 1, 2026, note holders 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 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 will be 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 and will not be remeasured as long as it continues to meet the conditions for equity classification. 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 are 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. 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 $63 million of borrowings under the Credit Facility to repurchase from such holders $150 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions (the “January Convertible Note Repurchase,” and, collectively with the January Share Offering, the “January Equitization Transactions”). The 2026 Convertible Notes have an initial conversion rate of 230.2026 shares of the Company’s common stock per $1,000 principal amount, and the January Equitization Transactions had the effect of increasing this conversion rate to 275.3525 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 $39 million loss on convertible note equitization in the unaudited condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 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 $41 million in the unaudited condensed consolidated statement of operations and comprehensive loss for the nine months ended September 30, 2021. 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 $26 million of borrowings under the Credit Facility to repurchase from such holders $56 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions (the “May Convertible Note Repurchase,” and, collectively with the May Share Offering, the “May Equitization Transactions”). The 2026 Convertible Notes have an initial conversion rate of 230.2026 shares of the Company’s common stock per $1,000 principal amount, and the May Equitization Transactions had the effect of increasing this conversion rate to 245.2802 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 $12 million loss on convertible note equitization in the unaudited condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 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 $21 million in the unaudited condensed consolidated statement of operations and comprehensive loss for the nine months ended September 30, 2021. The 2026 Convertible Notes consist of the following (in thousands): December 31, September 30, 2020 2021 Liability component: Principal $ 287,500 81,570 Less: unamortized note discount (112,265) (28,780) Less: unamortized debt issuance costs (5,852) (1,665) Net carrying value $ 169,383 51,125 Equity component (1) $ 115,601 32,799 (1) As of December 31, 2020, the equity component attributable to the outstanding 2026 Convertible Notes was recorded in additional paid-in capital, net of $3 million of issuance costs and $28 million of deferred taxes. As of September 30, 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. Interest expense recognized on the 2026 Convertible Notes related to the stated interest rate, amortization of the debt discount and debt issuance costs totaled $2.3 million and $1.5 million for the three months ended September 30, 2020 and 2021, respectively, and $2.3 million and $8.7 million for the nine months ended September 30, 2020 and 2021, respectively. (i) Debt Repurchase Program During the three and nine months ended September 30, 2020, Antero Resources repurchased $461 million and $1.1 billion, respectively, principal amount of debt at a weighted average discount of 13% and 17%, respectively . The Company recognized a gain of During the first quarter of 2021, the Company redeemed the remaining $661 million of the 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 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 (j) Subsequent Event On October 18, 2021, Antero Resources issued a notice of partial redemption with respect to the 2029 Notes. On November 2, 2021, the Company will redeemd of the principal amount thereof, plus accrued and unpaid interest. Immediately following the redemption, there will be million aggregate principal amount of 2029 Notes outstanding. The $9 million premium to the principal amount redeemed along with the write-off of a proportional amount of unamortized debt issuance costs will be included in the Company’s loss on early debt extinguishment during the fourth quarter of 2021. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | (8) Asset Retirement Obligations The following table sets forth a reconciliation of the Company’s asset retirement obligations for the nine months ended September 30, 2021 (in thousands): Asset retirement obligations—December 31, 2020 $ 54,452 Obligations incurred 2,359 Accretion expense 2,947 Settlement of obligations (50) Revisions to prior estimates (549) Asset retirement obligations—September 30, 2021 $ 59,159 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, 2021 | |
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 7,888,490 shares were available for future grant under the 2020 Plan as of September 30, 2021. 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 include 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 Corporation and converted into 1.8926 RSUs (all such RSUs, the “Converted AM RSU Awards”) under the Antero Midstream Corporation Long Term Incentive Plan (the “AMC Plan”). Each RSU award under the AMC Plan represents a right to receive one share of Antero Midstream Corporation common stock. The Company’s equity-based compensation expense, by type of award, was as follows for the three and nine months ended September 30, 2020 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 RSU awards $ 3,063 3,327 $ 9,021 9,957 PSU awards 1,827 1,452 5,380 3,211 Converted AM RSU Awards (1) 459 186 1,881 988 Equity awards issued to directors 350 333 719 1,033 Total expense $ 5,699 5,298 $ 17,001 15,189 (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 the deconsolidation of Antero Midstream Partners on March 12, 2019 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 for the nine months ended September 30, 2021 is as follows: Weighted Average Number of Grant Date Shares Fair Value Total awarded and unvested—December 31, 2020 8,432,397 $ 4.06 Granted 1,431,993 9.52 Vested (3,546,654) 4.36 Forfeited (293,338) 5.18 Total awarded and unvested—September 30, 2021 6,024,398 $ 5.12 As of September 30, 2021, there was approximately $24 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 2.6 years. (b) Performance Share Unit Awards PSU Awards Based on Absolute Total Shareholder Return (“TSR”) In April 2021, the Company granted PSU awards to certain of its executive officers that vest based on Antero Resources’ absolute TSR determined as of the last day of each of three one-year performance periods ending on April 15, 2022, April 15, 2023, and April 15, 2024, and one cumulative three-year performance period ending on April 15, 2024, in each case, subject to the executive officer’s continued employment through April 15, 2024. 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 TSR PSUs ranges from zero to 200% of the target number of 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. PSU Awards Based on Leverage Ratio In April 2021, the Company granted PSUs to certain of its executive officers that vest based on the Company’s total debt less cash and cash equivalents divided by the Company’s Adjusted EBITDAX (as defined and described in Item 2 below under “Non-GAAP Financial Measures”) determined as of the last day of each of three one-year performance periods ending on December 31, 2021, December 31, 2022, and December 31, 2023, in each case, subject to the executive officer’s continued employment through December 31, 2023 (“Leverage Ratio PSUs”). The number of shares of common stock that may ultimately be earned 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 based on 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, 2021, the likelihood of achieving the performance conditions related to the Leverage Ratio PSUs was probable. A summary of PSU award activity for the nine months ended September 30, 2021 is as follows: Weighted Number of Average Grant Units Date Fair Value Total awarded and unvested—December 31, 2020 2,547,798 $ 12.66 Granted 479,120 9.71 Forfeited (67,000) 2.97 Cancelled (unearned) (1,112,639) 19.19 Total awarded and unvested—September 30, 2021 1,847,279 $ 8.31 The following table presents information regarding the weighted average fair values for market-based PSUs granted during the nine months ended September 30, 2021, and the assumptions used to determine the fair values: Dividend yield — % Volatility 85 % Risk-free interest rate 0.32 % Weighted average fair value of awards granted—Absolute TSR $ 11.99 As of September 30, 2021, there was approximately $8 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 2.0 years. (c) Stock Options A summary of stock option activity for the nine months ended September 30, 2021 is as follows: Weighted Weighted Average Average Remaining Intrinsic Stock Exercise Contractual Value Options Price Life (in thousands) Outstanding—December 31, 2020 432,461 $ 50.64 4.1 $ — Granted — — Exercised — — Forfeited — — Expired (76,167) 50.00 Outstanding—September 30, 2021 356,294 $ 50.78 3.2 $ — Vested—September 30, 2021 356,294 $ 50.78 3.2 $ — Exercisable—September 30, 2021 356,294 $ 50.78 3.2 $ — 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, 2021, all stock options were fully vested resulting in no unamortized equity-based compensation expense. (d) Converted AM RSU Awards A summary of the Converted AM RSU Awards for the nine months ended September 30, 2021 is as follows: Weighted Average Number of Grant Date Units Fair Value Total awarded and unvested—December 31, 2020 296,390 $ 15.06 Granted — — Vested (209,964) 15.73 Forfeited (3,444) 13.25 Total awarded and unvested—September 30, 2021 82,982 $ 13.46 As of September 30, 2021, there was less than $1.0 million of unamortized equity-based compensation expense related to unvested Converted AM RSU Awards. Such expense is expected to be recognized over a weighted average period of 0.6 years, and the Company’s proportionate share will be allocated to it as it is recognized. (e) Cash Awards In January 2020, the Company granted cash awards of approximately $3.3 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 $2.6 million to certain non-executive employees under the 2020 Plan that vest ratably over four years . As of December 31, 2020 and September 30, 2021, the Company has recorded approximately $3.2 million and $2.0 million, respectively, in Other liabilities in the condensed consolidated balance sheets related to unvested cash awards. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value | |
Fair Value | (10) Fair Value The carrying values of accounts receivable and accounts payable as of December 31, 2020 and September 30, 2021 approximated market values because of their short-term nature. The carrying values of the amounts outstanding under the Prior Credit Facility as of December 31, 2020 and September 30, 2021 approximated fair value because the variable interest rates are reflective of current market conditions. The fair value and carrying value of the senior notes and 2026 Convertible Notes as of December 31, 2020 and September 30, 2021 as follows (in thousands): December 31, 2020 September 30, 2021 Fair Carrying Fair Carrying Value (1) Value (2) Value (1) Value (2) 2022 Notes $ 658,468 658,400 — — 2023 Notes 562,698 571,370 — — 2025 Notes 560,500 585,440 601,800 586,191 2026 Notes — — 368,128 321,570 2029 Notes — — 782,600 691,575 2030 Notes — — 631,860 593,072 2026 Convertible Notes 430,963 169,383 356,689 51,125 Total $ 2,212,629 1,984,593 2,741,077 2,243,533 (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 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, 2021 | |
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, 2020 and 2021. The Company enters into these swap contracts when management believes that favorable future sales prices for the Company’s production can be secured. Under these swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company pays the difference to the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company receives the difference from the counterparty. In addition, the Company has entered into basis swap contracts in order to hedge the difference between the New York Mercantile Exchange (“NYMEX”) index price and a local index price. The Company’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, 2021, the Company’s fixed price natural gas, oil and NGL 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 2021 Henry Hub 2,160,000 MMBtu/day $ 2.78 /MMBtu January-December 2022 Henry Hub 1,155,486 MMBtu/day 2.50 /MMBtu January-December 2023 Henry Hub 43,000 MMBtu/day 2.37 /MMBtu Butane October-December 2021 Mont Belvieu Butane-OPIS Non-TET 2,600 Bbl/day $ 33.77 /Bbl October-December 2021 Mont Belvieu Butane-OPIS TET 1,500 Bbl/day $ 32.24 /Bbl Natural Gasoline October-December 2021 Mont Belvieu Natural Gasoline-OPIS Non-TET 8,300 Bbl/day $ 49.70 /Bbl Isobutane October-December 2021 Mont Belvieu Isobutane-OPIS Non-TET 2,800 Bbl/day $ 35.75 /Bbl Oil October-December 2021 West Texas Intermediate 3,000 Bbl/day $ 55.16 /Bbl In addition, the Company has a call option agreement, which entitles the holder the right, but not the obligation, to enter into a fixed price swap agreement on December 21, 2023 to purchase 427,500 MMBtu per day at a price of $2.77 per MMBtu for the year ending December 31, 2024. As of September 30, 2021, 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 2021 NYMEX to TCO 40,000 MMBtu/day $ 0.414 /MMBtu January-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 The Company also entered into NGL derivative contracts, which establish a contractual price for the settlement month as a fixed percentage of the West Texas Intermediate Crude Oil index (“WTI”) price for the settlement month. When the percentage of the contractual price is above the contracted percentage, the Company pays the difference to the counterparty. When it is below the contracted percentage, the Company receives the difference from the counterparty. As of September 30, 2021, the Company had natural gas and NGL contracts that fix the Mont Belvieu index price for natural gasoline to percentages of WTI as follows: Weighted Average Commodity / Settlement Period Index to Basis Differential Contracted Volume Payout Ratio Gas Liquids October-December 2021 Mont Belvieu Natural Gasoline to WTI 9,325 Bbl/day 77 % As of September 30, 2021, the Company’s fixed price natural gas, oil and NGL 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 2021 Henry Hub 46,384 MMBtu/day $ 2.77 /MMBtu January-December 2022 Henry Hub 38,356 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 Ethane October-December 2021 Mont Belvieu Purity Ethane-OPIS 990 Bbl/day $ 7.01 /Bbl January-March 2022 Mont Belvieu Purity Ethane-OPIS 521 Bbl/day 6.68 /Bbl Propane October-December 2021 Mont Belvieu Propane-OPIS Non-TET 1,069 Bbl/day $ 19.88 /Bbl January-December 2022 Mont Belvieu Propane-OPIS Non-TET 934 Bbl/day 19.20 /Bbl Natural Gasoline October-December 2021 Mont Belvieu Natural Gasoline-OPIS Non-TET 339 Bbl/day $ 35.24 /Bbl January-December 2022 Mont Belvieu Natural Gasoline-OPIS Non-TET 282 Bbl/day 34.37 /Bbl January-December 2023 Mont Belvieu Natural Gasoline-OPIS Non-TET 247 Bbl/day 40.74 /Bbl Oil October-December 2021 West Texas Intermediate 111 Bbl/day $ 43.48 /Bbl January-December 2022 West Texas Intermediate 112 Bbl/day 44.25 /Bbl January-December 2023 West Texas Intermediate 99 Bbl/day 45.03 /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) Embedded Derivatives The VPP includes an embedded put option tied to NYMEX pricing for the production volumes associated with the Company’s retained interest in the VPP properties of 94,544,000 MMBtu remaining through December 31, 2026 at a weighted average strike price of $2.57 per MMBtu. The embedded put option is not clearly and closely related to the host contract, and therefore, the Company bifurcated this derivative instrument and reflected it at fair value in the unaudited condensed consolidated financial statements. (c) 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 as of December 31, 2020 and September 30, 2021 (in thousands). None of the Company’s derivative instruments are designated as hedges for accounting purposes. Balance Sheet December 31, September 30, Location 2020 2021 Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments $ 97,144 — Embedded derivatives—current Derivative instruments 7,986 627 Commodity derivatives—noncurrent Derivative instruments 14,689 — Embedded derivatives—noncurrent Derivative instruments 32,604 14,834 Total asset derivatives 152,423 15,461 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives—current (1) Derivative instruments 31,242 1,436,292 Commodity derivatives—noncurrent (1) Derivative instruments 99,172 331,570 Total liability derivatives 130,414 1,767,862 Net derivatives assets (liabilities) $ 22,009 (1,752,401) (1) As of September 30, 2021, approximately $87 million of commodity derivative liabilities, including $53 million of current commodity derivatives and $34 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of December 31, 2020, approximately $14 million of commodity derivative liabilities, including $7 million of current commodity derivatives and $7 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. The following table presents the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands): December 31, 2020 September 30, 2021 Net Amounts of Net Amounts of Gross Gross Amounts Assets Gross Gross Amounts Assets Amounts on Offset on (Liabilities) on Amounts on Offset on (Liabilities) on Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Commodity derivative assets $ 181,375 (69,542) 111,833 $ 18,246 (18,246) — Embedded derivative assets $ 40,590 — 40,590 $ 15,461 — 15,461 Commodity derivative liabilities $ (199,956) 69,542 (130,414) $ (1,786,108) 18,246 (1,767,862) The following is a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2021 (in thousands): Statement of Operations Three Months Ended September 30, Nine Months Ended September 30, Location 2020 2021 2020 2021 Commodity derivative fair value losses (1) Revenue $ (558,979) (1,238,384) $ (161,161) (2,228,076) Embedded derivative fair value gains (losses) (1) Revenue $ 44,228 (12,082) $ 44,228 (31,986) (1) The fair value of derivative instruments was determined using Level 2 inputs . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
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 as of December 31, 2020 and September 30, 2021 consisted of the following items (in thousands): December 31, September 30, Leases Balance Sheet Classification 2020 2021 Operating Leases Operating lease right-of-use assets: Processing plants Operating lease right-of-use assets $ 1,302,290 1,786,321 Drilling rigs and completion services Operating lease right-of-use assets 29,894 10,812 Gas gathering lines and compressor stations (1) Operating lease right-of-use assets 1,241,090 1,136,859 Office space Operating lease right-of-use assets 36,879 34,032 Vehicles Operating lease right-of-use assets 2,704 1,023 Other office and field equipment Operating lease right-of-use assets 746 595 Total operating lease right-of-use assets $ 2,613,603 2,969,642 Short-term operating lease obligation Short-term lease liabilities $ 265,178 352,939 Long-term operating lease obligation Long-term lease liabilities 2,348,425 2,616,703 Total operating lease obligation $ 2,613,603 2,969,642 Finance Leases Finance lease right-of-use assets: Vehicles Other property and equipment $ 1,206 717 Total finance lease right-of-use assets (2) $ 1,206 717 Short-term finance lease obligation Short-term lease liabilities $ 845 531 Long-term finance lease obligation Long-term lease liabilities 361 186 Total finance lease obligation $ 1,206 717 (1) Gas gathering lines and compressor stations leases includes $1.1 billion and $1.0 billion related to Antero Midstream Corporation as of December 31, 2020 and September 30, 2021 . See “—Related party lease disclosure” for additional discussion. (2) Financing lease assets are recorded net of accumulated amortization of $3 million and $2 million as of December 31, 2020 and September 30, 2021 , respectively. The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842, Leases , because Antero is the sole customer of the assets and because Antero makes the decisions that most impact the economic performance of the assets. (b) Supplemental Information Related to Leases Costs associated with operating leases and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss for the three and nine months ended September 30, 2020 and 2021 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Cost Classification Location 2020 2021 2020 2021 Operating lease cost Statement of operations Gathering, compression, processing, and transportation $ 350,853 386,033 $ 1,112,502 1,147,985 Operating lease cost Statement of operations General and administrative 2,789 2,833 8,639 8,057 Operating lease cost Statement of operations Contract termination and rig stacking 5,841 3,369 6,387 4,213 Operating lease cost Statement of operations Lease operating — 43 — 109 Operating lease cost Balance sheet Proved properties (1) 31,822 25,558 91,081 82,749 Total operating lease cost $ 391,305 417,836 $ 1,218,609 1,243,113 Finance lease cost: Amortization of right-of-use assets Statement of operations Depletion, depreciation, and amortization $ 168 132 $ 727 391 Total finance lease cost $ 168 132 $ 727 391 Short-term lease payments $ 15,871 21,030 $ 108,029 62,328 (1) Capitalized costs related to drilling and completion activities. (c) Supplemental Cash Flow Information Related to Leases The following is the Company’s supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2021 (in thousands): Nine Months Ended September 30, 2020 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,147,489 1,042,684 Investing cash flows from operating leases 88,229 66,042 Financing cash flows from finance leases 1,004 692 Noncash activities: Right-of-use assets obtained in exchange for new operating lease obligations $ 178,348 232,771 Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1) $ (174,880) 345,066 (1) During the nine months ended September 30, 2020, the weighted average discount rate for remeasured operating leases increased from 10.0% as of December 31, 2019 to 14.4% as of September 30, 2020. 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. (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, 2021 (in thousands): Operating Leases Financing Leases Total Remainder of 2021 $ 158,056 174 158,230 2022 601,512 424 601,936 2023 595,852 76 595,928 2024 587,016 67 587,083 2025 514,963 22 514,985 2026 464,262 — 464,262 Thereafter 1,260,244 — 1,260,244 Total lease payments 4,181,905 763 4,182,668 Less: imputed interest (1,212,263) (46) (1,212,309) Total $ 2,969,642 717 2,970,359 (e) Lease Term and Discount Rate The following table sets forth the Company’s weighted average remaining lease term and discount rate as of December 31, 2020 and September 30, 2021: December 31, 2020 September 30, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 8.0 years 1.5 years 7.8 years 1.9 years Weighted average discount rate 13.7 % 6.2 % 9.1 % 5.7 % (f) Related Party Lease Disclosure The Company has a gathering and compression agreement with Antero Midstream Corporation, whereby Antero Midstream Corporation receives a low-pressure gathering fee per Mcf, a high-pressure gathering fee per Mcf and a compression fee per Mcf, in each case subject to annual adjustments based on the consumer price index. If and to the extent the Company requests that Antero Midstream Corporation construct new high pressure lines and compressor stations, the gathering and compression agreement contains minimum volume commitments that require Antero Resources to utilize or pay for . In December 2019, the Company and Antero Midstream Corporation agreed to extend the initial term of the gathering and compression agreement to 2038 and established a growth incentive fee program whereby low pressure gathering fees will be reduced from 2020 through 2023 to the extent the Company achieves certain volumetric targets at certain points during such time. Upon completion of the initial contract term, the gathering and compression agreement will continue in effect from year to year until such time as the agreement is terminated, effective upon an anniversary of the effective date of the agreement, by either the Company or Antero Midstream Corporation on or before the 180 th day prior to the anniversary of such effective date. The Company achieved the volumetric targets during each of the first, second and third quarters of 2020, and Antero Midstream Corporation provided a rebate of $12 million and $36 million for the three and nine months ended September 30, 2020, respectively. The Company did not achieve the volumetric target during either the first, second or third quarters of 2021. For the three and nine months ended September 30, 2020, gathering and compression fees paid by Antero related to this agreement were $181 million and $503 million, respectively. For the three and million, respectively. As of |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2021 | |
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 remaining lease terms in excess of one year as of September 30, 2021 (in thousands). Processing, Firm Gathering and Land Payment Operating and Imputed Interest Transportation Compression Obligations Financing Leases for Leases (a) (b) (c) (d) (d) Total Remainder of 2021 $ 264,307 13,597 1,905 91,149 67,081 438,039 2022 1,042,280 52,265 400 352,249 249,687 1,696,881 2023 1,072,523 59,140 — 377,308 218,620 1,727,591 2024 1,045,442 59,262 — 402,702 184,381 1,691,787 2025 1,024,783 47,960 — 366,353 148,632 1,587,728 2026 1,018,812 14,783 — 350,438 113,824 1,497,857 Thereafter 6,033,138 98,596 — 1,030,160 230,084 7,391,978 Total $ 11,501,285 345,603 2,305 2,970,359 1,212,309 16,031,861 (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, and Compression Service Commitments The Company has entered into various long- term gas processing, gathering and compression service agreements. Certain of these agreements were determined to be leases. The minimum payment obligations under the agreements that are not leases are presented in this column. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the 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. Refer to Note 12—Leases to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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 the 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 two lawsuits were consolidated and tried in June 2019. On June 20, 2019, the Company was awarded a jury verdict of approximately $96 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 $107 million from WGL, which was in full satisfaction and discharge of the June 2019 judgment entered in favor of the Company. Other The Company is party to various other legal proceedings and claims in the ordinary course of its business, including, but not limited to, royalty claims. 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. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
Related Parties | |
Related Parties | (15) Related Parties Substantially all of Antero Midstream Corporation’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, 2021 | |
Reportable Segments | |
Reportable Segments | (16) Reportable Segments Management evaluated how the Company is organized and managed and identified the following 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 Corporation. All of the Company’s assets are located in the United States and substantially all of its production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. Operating segments are evaluated based on their contribution to consolidated results, which is primarily determined by the respective operating income (loss) of each segment. General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures, and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income, income taxes, and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements. The operating results and assets of the Company’s reportable segments were as follows for the three months ended September 30, 2020 and 2021 (in thousands): Three Months Ended September 30, 2020 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 288,419 91,497 — — 379,916 Intersegment 675 — 233,415 (233,415) 675 Total revenue $ 289,094 91,497 233,415 (233,415) 380,591 Operating expenses: Lease operating $ 21,450 — — — 21,450 Gathering, compression, processing, and transportation 656,615 — 38,052 (38,052) 656,615 Impairment of oil and gas properties 29,392 — — — 29,392 Depletion, depreciation, and amortization 238,418 — 26,801 (26,801) 238,418 General and administrative 31,640 — 13,232 (13,232) 31,640 Other 28,605 128,580 3,513 (3,513) 157,185 Total operating expenses 1,006,120 128,580 81,598 (81,598) 1,134,700 Operating income (loss) $ (717,026) (37,083) 151,817 (151,817) (754,109) Equity in earnings of unconsolidated affiliates $ 24,419 — 23,173 (23,173) 24,419 Investments in unconsolidated affiliates $ 272,926 — — — 272,926 Segment assets $ 13,349,739 — 5,673,504 (5,673,504) 13,349,739 Capital expenditures for segment assets $ 151,269 — 41,851 (41,851) 151,269 Three Months Ended September 30, 2021 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 301,207 232,685 242,472 (242,472) 533,892 Intersegment 530 — (17,668) 17,668 530 Total revenue $ 301,737 232,685 224,804 (224,804) 534,422 Operating expenses: Lease operating $ 25,363 — — — 25,363 Gathering, compression, processing, and transportation 628,225 — 39,499 (39,499) 628,225 Impairment of oil and gas properties 26,253 — — — 26,253 Depletion, depreciation, and amortization 182,810 — 27,487 (27,487) 182,810 General and administrative 32,442 — 14,810 (14,810) 32,442 Other 56,652 266,751 1,187 (1,187) 323,403 Total operating expenses 951,745 266,751 82,983 (82,983) 1,218,496 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 Investments in unconsolidated affiliates $ 236,597 — 703,780 (703,780) 236,597 Segment assets $ 13,375,515 96,023 5,533,633 (5,533,633) 13,471,538 Capital expenditures for segment assets $ 387,783 — 82,583 (82,583) 387,783 The operating results and assets of the Company’s reportable segments were as follows for the nine months ended September 30, 2020 and 2021 (in thousands): Nine Months Ended September 30, 2020 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 1,978,572 201,855 — — 2,180,427 Intersegment 2,180 — 696,859 (696,859) 2,180 Total revenue $ 1,980,752 201,855 696,859 (696,859) 2,182,607 Operating expenses: Lease operating $ 71,836 — — — 71,836 Gathering, compression, processing, and transportation 1,877,084 — 128,847 (128,847) 1,877,084 Impairment of oil and gas properties 155,962 — — — 155,962 Impairment of midstream assets — — 665,491 (665,491) — Depletion, depreciation, and amortization 652,130 — 81,889 (81,889) 652,130 General and administrative 101,264 — 39,191 (39,191) 101,264 Other 88,023 334,906 14,062 (14,062) 422,929 Total operating expenses 2,946,299 334,906 929,480 (929,480) 3,281,205 Operating loss $ (965,547) (133,051) (232,621) 232,621 (1,098,598) Equity in earnings (loss) of unconsolidated affiliates $ (83,408) — 63,197 (63,197) (83,408) Investments in unconsolidated affiliates $ 272,926 — — — 272,926 Segment assets $ 13,349,739 — 5,673,504 (5,673,504) 13,349,739 Capital expenditures for segment assets $ 726,402 — 165,265 (165,265) 726,402 Nine Months Ended September 30, 2021 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 1,664,509 562,928 — — 2,227,437 Intersegment 551 — 681,712 (681,712) 551 Total revenue $ 1,665,060 562,928 681,712 (681,712) 2,227,988 Operating expenses: Lease operating $ 71,555 — — — 71,555 Gathering, compression, processing, and transportation 1,874,664 — 118,368 (118,368) 1,874,664 Impairment of oil and gas properties 69,618 — — — 69,618 Depletion, depreciation, and amortization 564,166 — 80,956 (80,956) 564,166 General and administrative 108,693 — 46,991 (46,991) 108,693 Other 143,954 627,822 8,590 (8,590) 771,776 Total operating expenses 2,832,650 627,822 254,905 (254,905) 3,460,472 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 Investments in unconsolidated affiliates $ 236,597 — 703,780 (703,780) 236,597 Segment assets $ 13,375,515 96,023 5,533,633 (5,533,633) 13,471,538 Capital expenditures for segment assets $ 510,941 — 156,948 (156,948) 510,941 |
Subsidiary Guarantors
Subsidiary Guarantors | 9 Months Ended |
Sep. 30, 2021 | |
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 following tables present summarized financial information of Antero and its guarantor subsidiaries (in thousands). The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company. Balance Sheet December 31, 2020 September 30, 2021 Parent (Antero) Parent (Antero) and Guarantor Subsidiaries and Guarantor Subsidiaries Accounts receivable, non-guarantor subsidiaries $ — — Accounts receivable, related parties — — Other current assets 543,841 665,111 Total current assets 543,841 665,111 Noncurrent assets 11,783,502 12,016,722 Total assets $ 12,327,343 12,681,833 Accounts payable, non-guarantor subsidiaries $ — — Accounts payable, related parties 69,860 79,595 Other current liabilities 906,348 2,674,603 Total current liabilities 976,208 2,754,198 Noncurrent liabilities 6,070,388 5,499,255 Total liabilities $ 7,046,596 8,253,453 Statement of Operations Nine Months Ended September 30, 2021 Parent (Antero) and Guarantor Subsidiaries Revenues $ 2,220,306 Operating expenses 3,428,943 Loss from operations (1,208,637) Net loss and comprehensive loss including noncontrolling interests (1,088,283) Net loss and comprehensive loss attributable to Antero Resources Corporation $ (1,088,283) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 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, 2020 consolidated financial statements were included in Antero Resources’ 2020 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, 2020 and September 30, 2021 and its results of operations for the three and nine months ended September 30, 2020 and 2021 and cash flows for the nine months ended September 30, 2020 and 2021. 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, 2021 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. The noncontrolling interest reflected in the Company’s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2020 and 2021 represents the Company’s interest in Martica owned by third parties. See Note 3—Transactions to the unaudited condensed consolidated financial statements for more information on Martica. |
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, 2020, the book overdrafts included within accounts payable and revenue distributions payable were $11 million and $15 million, respectively. As of September 30, 2021, the book overdrafts included within accounts payable and revenue distributions payable were $37 million and $31 million, respectively. |
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 outstanding equity awards and shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt). 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. The potential dilutive effect of the 2026 Convertible Notes is calculated using the (i) treasury stock method for the three and nine months ended September 30, 2020 as a result of the Company’s intent to settle the principal amount of such convertible notes in cash upon conversion during the nine months ended September 30, 2020, and (ii) if-converted method for the three and nine months ended September 30, 2021, as a result of the partial equitizations of the 2026 Convertible Notes during the nine months ended September 30, 2021. See Note 7—Long-Term Debt for further discussion on the equitization transactions. 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 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, 2020 2021 2020 2021 Basic weighted average number of shares outstanding 268,511 313,790 273,689 306,201 Add: Dilutive effect of RSUs — — — — Add: Dilutive effect of PSUs — — — — Add: Dilutive effect of outstanding stock options — — — — Add: Dilutive effect of 2026 Convertible Notes — — — — Diluted weighted average number of shares outstanding 268,511 313,790 273,689 306,201 Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share (1) RSUs 10,129 6,158 7,397 6,562 PSUs 1,988 2,748 1,808 2,706 Outstanding stock options 432 357 432 388 2026 Convertible Notes (2) — 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. (2) Under the treasury stock method, only the amount by which the conversion value exceeds the aggregate principal amount of the 2026 Convertible Notes is considered in the diluted earnings per share computation. As of September 30, 2020, the conversion value did not exceed the principal amount of the notes, and accordingly, there was no impact to diluted earnings per share for the three and nine months ended September 30, 2020. Under the if-converted method, the weighted average number of shares outstanding for the three and nine months ended September 30, 2020, would have been 28 million and 10 million, respectively, all of which 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 April 9, 2021, West Virginia enacted new tax laws related to its apportionment and sourcing methodologies. The newly enacted laws are effective January 1, 2022 on a prospective basis and are expected to reduce the Company’s net income or loss that is apportioned to West Virginia. As a result of this tax law change, the Company’s net deferred income tax liability was reduced by $34 million as of September 30, 2021, which includes a $48 million increase in deferred tax assets, partially offset by a $14 million increase in valuation allowance. |
Recently Issued Accounting Standards | (f) Recently Issued Accounting Standards Convertible 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 require separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. The new standard becomes effective for the Company on January 1, 2022, and early adoption is permitted. The Company is evaluating the transition method it plans to use for adoption on January 1, 2022. However, the Company has utilized the modified retrospective approach to quantify the expected impact of this standard on its financial statements. Upon adoption of this new standard, the Company expects to reclassify between $15 million and $30 million, net of deferred income taxes and equity issuance costs, to long-term debt and deferred income tax liability, as applicable, from stockholders’ equity, which amount is subject to adjustment for any conversions or other transactions until adoption of this new standard. Additionally, annual interest expense for the 2026 Convertible Notes will be based on an effective interest rate of for the three and nine months ended September 30, 2021. T he Company does not believe that adoption of the standard will impact its operational strategies or development prospects. Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . Income Taxes (“ASC 740”) and also simplifies portions of ASC 740 by clarifying and amending existing guidance. It is effective for interim and annual reporting periods after December 15, 2020. The Company adopted this ASU on January 1, 2021, and it did not have a material impact on the Company's unaudited condensed consolidated financial statements . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Reconciliation of basic weighted average shares outstanding to diluted weighted average shares outstanding | The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 Basic weighted average number of shares outstanding 268,511 313,790 273,689 306,201 Add: Dilutive effect of RSUs — — — — Add: Dilutive effect of PSUs — — — — Add: Dilutive effect of outstanding stock options — — — — Add: Dilutive effect of 2026 Convertible Notes — — — — Diluted weighted average number of shares outstanding 268,511 313,790 273,689 306,201 Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share (1) RSUs 10,129 6,158 7,397 6,562 PSUs 1,988 2,748 1,808 2,706 Outstanding stock options 432 357 432 388 2026 Convertible Notes (2) — 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. (2) Under the treasury stock method, only the amount by which the conversion value exceeds the aggregate principal amount of the 2026 Convertible Notes is considered in the diluted earnings per share computation. As of September 30, 2020, the conversion value did not exceed the principal amount of the notes, and accordingly, there was no impact to diluted earnings per share for the three and nine months ended September 30, 2020. Under the if-converted method, the weighted average number of shares outstanding for the three and nine months ended September 30, 2020, would have been 28 million and 10 million, respectively, all of which would have been anti-dilutive. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue | |
Schedule of disaggregation of revenue | The table set forth below presents revenue disaggregated by type and the reportable segment to which it relates (in thousands). See Note 16—Reportable Segments for more information on reportable segments. Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 Reportable Segment Revenues from contracts with customers: Natural gas sales $ 436,304 884,669 1,214,801 2,231,558 Exploration and production Natural gas liquids sales (ethane) 32,444 57,919 85,884 137,446 Exploration and production Natural gas liquids sales (C3+ NGLs) 294,982 540,408 711,412 1,365,581 Exploration and production Oil sales 34,265 56,734 78,233 153,326 Exploration and production Marketing 91,497 232,685 201,855 562,928 Marketing Total revenue from contracts with customers 889,492 1,772,415 2,292,185 4,450,839 Loss from derivatives, deferred revenue and other sources, net (508,901) (1,237,993) (109,578) (2,222,851) Total revenue $ 380,591 534,422 2,182,607 2,227,988 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 for the nine months ended September 30, 2021 (in thousands): Balance as of December 31, 2020 (1) $ 255,082 Equity in earnings of unconsolidated affiliate 57,621 Dividends from unconsolidated affiliate (105,325) Elimination of intercompany profit 29,219 Balance as of September 30, 2021 (1) $ 236,597 (1) The Company’s investment in Antero Midstream Corporation as of December 31, 2020 and September 30, 2021 was $1.1 billion and $1.4 billion, respectively, based on the quoted market share price of Antero Midstream Corporation. The tables set forth below present summarized financial information of Antero Midstream Corporation (in thousands). Balance Sheet December 31, September 30, 2020 2021 Current assets $ 93,931 87,490 Noncurrent assets 5,516,981 5,446,143 Total assets $ 5,610,912 5,533,633 Current liabilities $ 94,005 118,690 Noncurrent liabilities 3,098,621 3,102,350 Stockholders' equity 2,418,286 2,312,593 Total liabilities and stockholders' equity $ 5,610,912 5,533,633 Statement of Operations Nine Months Ended September 30, 2020 2021 Revenues $ 696,859 681,712 Operating expenses 929,480 254,905 Income (loss) from operations (232,621) 426,807 Net income (loss) $ (198,985) 252,991 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities as of December 31, 2020 and September 30, 2021 consisted of the following items (in thousands): December 31, September 30, 2020 2021 Capital expenditures $ 32,372 52,958 Gathering, compression, processing, and transportation expenses 152,724 158,443 Marketing expenses 68,193 115,317 Interest expense, net 25,645 34,693 Accrued production and ad valorem taxes 37,371 30,488 Derivative settlements payable 3,425 72,354 Other 23,794 36,879 Total accrued liabilities $ 343,524 501,132 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Long-Term Debt | |
Schedule of long-term debt | Long-term debt as of December 31, 2020 and September 30, 2021 consisted of the following items (in thousands): December 31, September 30, 2020 2021 Credit Facility (a) $ 1,017,000 97,500 5.125% senior notes due 2022 (b) 660,516 — 5.625% senior notes due 2023 (c) 574,182 — 5.00% senior notes due 2025 (d) 590,000 590,000 8.375% senior notes due 2026 (e) — 325,000 7.625% senior notes due 2029 (f) — 700,000 5.375% senior notes due 2030 (g) — 600,000 4.25% convertible senior notes due 2026 (h) 287,500 81,570 Total principal 3,129,198 2,394,070 Unamortized premium (discount), net (111,886) (28,780) Unamortized debt issuance costs (15,719) (24,257) Long-term debt $ 3,001,593 2,341,033 |
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): December 31, September 30, 2020 2021 Liability component: Principal $ 287,500 81,570 Less: unamortized note discount (112,265) (28,780) Less: unamortized debt issuance costs (5,852) (1,665) Net carrying value $ 169,383 51,125 Equity component (1) $ 115,601 32,799 (1) As of December 31, 2020, the equity component attributable to the outstanding 2026 Convertible Notes was recorded in additional paid-in capital, net of $3 million of issuance costs and $28 million of deferred taxes. As of September 30, 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. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligations | |
Schedule of reconciliation of asset retirement obligations | The following table sets forth a reconciliation of the Company’s asset retirement obligations for the nine months ended September 30, 2021 (in thousands): Asset retirement obligations—December 31, 2020 $ 54,452 Obligations incurred 2,359 Accretion expense 2,947 Settlement of obligations (50) Revisions to prior estimates (549) Asset retirement obligations—September 30, 2021 $ 59,159 |
Equity-Based Compensation and_2
Equity-Based Compensation and Cash Awards (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity-Based Compensation and Cash Awards | |
Schedule of equity-based compensation expense | The Company’s equity-based compensation expense, by type of award, was as follows for the three and nine months ended September 30, 2020 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 RSU awards $ 3,063 3,327 $ 9,021 9,957 PSU awards 1,827 1,452 5,380 3,211 Converted AM RSU Awards (1) 459 186 1,881 988 Equity awards issued to directors 350 333 719 1,033 Total expense $ 5,699 5,298 $ 17,001 15,189 (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 the deconsolidation of Antero Midstream Partners on March 12, 2019 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, 2020 8,432,397 $ 4.06 Granted 1,431,993 9.52 Vested (3,546,654) 4.36 Forfeited (293,338) 5.18 Total awarded and unvested—September 30, 2021 6,024,398 $ 5.12 |
Summary of PSU award activity | Weighted Number of Average Grant Units Date Fair Value Total awarded and unvested—December 31, 2020 2,547,798 $ 12.66 Granted 479,120 9.71 Forfeited (67,000) 2.97 Cancelled (unearned) (1,112,639) 19.19 Total awarded and unvested—September 30, 2021 1,847,279 $ 8.31 |
Schedule of weighted average fair value assumptions used for PSUs granted | The following table presents information regarding the weighted average fair values for market-based PSUs granted during the nine months ended September 30, 2021, and the assumptions used to determine the fair values: Dividend yield — % Volatility 85 % Risk-free interest rate 0.32 % Weighted average fair value of awards granted—Absolute TSR $ 11.99 |
Summary of stock option activity | Weighted Weighted Average Average Remaining Intrinsic Stock Exercise Contractual Value Options Price Life (in thousands) Outstanding—December 31, 2020 432,461 $ 50.64 4.1 $ — Granted — — Exercised — — Forfeited — — Expired (76,167) 50.00 Outstanding—September 30, 2021 356,294 $ 50.78 3.2 $ — Vested—September 30, 2021 356,294 $ 50.78 3.2 $ — Exercisable—September 30, 2021 356,294 $ 50.78 3.2 $ — |
Schedule of Converted AM RSU Awards | Weighted Average Number of Grant Date Units Fair Value Total awarded and unvested—December 31, 2020 296,390 $ 15.06 Granted — — Vested (209,964) 15.73 Forfeited (3,444) 13.25 Total awarded and unvested—September 30, 2021 82,982 $ 13.46 |
Fair value (Tables)
Fair value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value | |
Schedule of fair value and carrying value of the senior notes and 2026 Convertible Notes | December 31, 2020 September 30, 2021 Fair Carrying Fair Carrying Value (1) Value (2) Value (1) Value (2) 2022 Notes $ 658,468 658,400 — — 2023 Notes 562,698 571,370 — — 2025 Notes 560,500 585,440 601,800 586,191 2026 Notes — — 368,128 321,570 2029 Notes — — 782,600 691,575 2030 Notes — — 631,860 593,072 2026 Convertible Notes 430,963 169,383 356,689 51,125 Total $ 2,212,629 1,984,593 2,741,077 2,243,533 (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, 2021 | |
Schedule of outstanding commodity derivatives | Weighted Average Commodity / Settlement Period Index Contracted Volume Price Natural Gas October-December 2021 Henry Hub 2,160,000 MMBtu/day $ 2.78 /MMBtu January-December 2022 Henry Hub 1,155,486 MMBtu/day 2.50 /MMBtu January-December 2023 Henry Hub 43,000 MMBtu/day 2.37 /MMBtu Butane October-December 2021 Mont Belvieu Butane-OPIS Non-TET 2,600 Bbl/day $ 33.77 /Bbl October-December 2021 Mont Belvieu Butane-OPIS TET 1,500 Bbl/day $ 32.24 /Bbl Natural Gasoline October-December 2021 Mont Belvieu Natural Gasoline-OPIS Non-TET 8,300 Bbl/day $ 49.70 /Bbl Isobutane October-December 2021 Mont Belvieu Isobutane-OPIS Non-TET 2,800 Bbl/day $ 35.75 /Bbl Oil October-December 2021 West Texas Intermediate 3,000 Bbl/day $ 55.16 /Bbl |
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 2021 NYMEX to TCO 40,000 MMBtu/day $ 0.414 /MMBtu January-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 |
natural gas and NGL contracts that fix the Mont Belvieu index price for natural gasoline to percentages of WTI | Weighted Average Commodity / Settlement Period Index to Basis Differential Contracted Volume Payout Ratio Gas Liquids October-December 2021 Mont Belvieu Natural Gasoline to WTI 9,325 Bbl/day 77 % |
Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes | Balance Sheet December 31, September 30, Location 2020 2021 Asset derivatives not designated as hedges for accounting purposes: Commodity derivatives—current Derivative instruments $ 97,144 — Embedded derivatives—current Derivative instruments 7,986 627 Commodity derivatives—noncurrent Derivative instruments 14,689 — Embedded derivatives—noncurrent Derivative instruments 32,604 14,834 Total asset derivatives 152,423 15,461 Liability derivatives not designated as hedges for accounting purposes: Commodity derivatives—current (1) Derivative instruments 31,242 1,436,292 Commodity derivatives—noncurrent (1) Derivative instruments 99,172 331,570 Total liability derivatives 130,414 1,767,862 Net derivatives assets (liabilities) $ 22,009 (1,752,401) (1) As of September 30, 2021, approximately $87 million of commodity derivative liabilities, including $53 million of current commodity derivatives and $34 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of December 31, 2020, approximately $14 million of commodity derivative liabilities, including $7 million of current commodity derivatives and $7 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 presents the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands): December 31, 2020 September 30, 2021 Net Amounts of Net Amounts of Gross Gross Amounts Assets Gross Gross Amounts Assets Amounts on Offset on (Liabilities) on Amounts on Offset on (Liabilities) on Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Commodity derivative assets $ 181,375 (69,542) 111,833 $ 18,246 (18,246) — Embedded derivative assets $ 40,590 — 40,590 $ 15,461 — 15,461 Commodity derivative liabilities $ (199,956) 69,542 (130,414) $ (1,786,108) 18,246 (1,767,862) |
Summary of derivative fair value gains (losses) | The following is a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2021 (in thousands): Statement of Operations Three Months Ended September 30, Nine Months Ended September 30, Location 2020 2021 2020 2021 Commodity derivative fair value losses (1) Revenue $ (558,979) (1,238,384) $ (161,161) (2,228,076) Embedded derivative fair value gains (losses) (1) Revenue $ 44,228 (12,082) $ 44,228 (31,986) (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 2021 Henry Hub 46,384 MMBtu/day $ 2.77 /MMBtu January-December 2022 Henry Hub 38,356 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 Ethane October-December 2021 Mont Belvieu Purity Ethane-OPIS 990 Bbl/day $ 7.01 /Bbl January-March 2022 Mont Belvieu Purity Ethane-OPIS 521 Bbl/day 6.68 /Bbl Propane October-December 2021 Mont Belvieu Propane-OPIS Non-TET 1,069 Bbl/day $ 19.88 /Bbl January-December 2022 Mont Belvieu Propane-OPIS Non-TET 934 Bbl/day 19.20 /Bbl Natural Gasoline October-December 2021 Mont Belvieu Natural Gasoline-OPIS Non-TET 339 Bbl/day $ 35.24 /Bbl January-December 2022 Mont Belvieu Natural Gasoline-OPIS Non-TET 282 Bbl/day 34.37 /Bbl January-December 2023 Mont Belvieu Natural Gasoline-OPIS Non-TET 247 Bbl/day 40.74 /Bbl Oil October-December 2021 West Texas Intermediate 111 Bbl/day $ 43.48 /Bbl January-December 2022 West Texas Intermediate 112 Bbl/day 44.25 /Bbl January-December 2023 West Texas Intermediate 99 Bbl/day 45.03 /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, 2021 | |
Leases | |
Summary of supplemental balance sheet information related to leases | The Company’s lease assets and liabilities as of December 31, 2020 and September 30, 2021 consisted of the following items (in thousands): December 31, September 30, Leases Balance Sheet Classification 2020 2021 Operating Leases Operating lease right-of-use assets: Processing plants Operating lease right-of-use assets $ 1,302,290 1,786,321 Drilling rigs and completion services Operating lease right-of-use assets 29,894 10,812 Gas gathering lines and compressor stations (1) Operating lease right-of-use assets 1,241,090 1,136,859 Office space Operating lease right-of-use assets 36,879 34,032 Vehicles Operating lease right-of-use assets 2,704 1,023 Other office and field equipment Operating lease right-of-use assets 746 595 Total operating lease right-of-use assets $ 2,613,603 2,969,642 Short-term operating lease obligation Short-term lease liabilities $ 265,178 352,939 Long-term operating lease obligation Long-term lease liabilities 2,348,425 2,616,703 Total operating lease obligation $ 2,613,603 2,969,642 Finance Leases Finance lease right-of-use assets: Vehicles Other property and equipment $ 1,206 717 Total finance lease right-of-use assets (2) $ 1,206 717 Short-term finance lease obligation Short-term lease liabilities $ 845 531 Long-term finance lease obligation Long-term lease liabilities 361 186 Total finance lease obligation $ 1,206 717 (1) Gas gathering lines and compressor stations leases includes $1.1 billion and $1.0 billion related to Antero Midstream Corporation as of December 31, 2020 and September 30, 2021 . See “—Related party lease disclosure” for additional discussion. (2) Financing lease assets are recorded net of accumulated amortization of $3 million and $2 million as of December 31, 2020 and September 30, 2021 , respectively. The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842, Leases , because Antero is the sole customer of the assets and because Antero makes the decisions that most impact the economic performance of the assets. |
Summary of costs associated with operating leases and finance leases | Costs associated with operating leases and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss for the three and nine months ended September 30, 2020 and 2021 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Cost Classification Location 2020 2021 2020 2021 Operating lease cost Statement of operations Gathering, compression, processing, and transportation $ 350,853 386,033 $ 1,112,502 1,147,985 Operating lease cost Statement of operations General and administrative 2,789 2,833 8,639 8,057 Operating lease cost Statement of operations Contract termination and rig stacking 5,841 3,369 6,387 4,213 Operating lease cost Statement of operations Lease operating — 43 — 109 Operating lease cost Balance sheet Proved properties (1) 31,822 25,558 91,081 82,749 Total operating lease cost $ 391,305 417,836 $ 1,218,609 1,243,113 Finance lease cost: Amortization of right-of-use assets Statement of operations Depletion, depreciation, and amortization $ 168 132 $ 727 391 Total finance lease cost $ 168 132 $ 727 391 Short-term lease payments $ 15,871 21,030 $ 108,029 62,328 (1) Capitalized costs related to drilling and completion activities. |
Summary of supplemental cash flow information related to leases | The following is the Company’s supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2021 (in thousands): Nine Months Ended September 30, 2020 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,147,489 1,042,684 Investing cash flows from operating leases 88,229 66,042 Financing cash flows from finance leases 1,004 692 Noncash activities: Right-of-use assets obtained in exchange for new operating lease obligations $ 178,348 232,771 Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1) $ (174,880) 345,066 (1) During the nine months ended September 30, 2020, the weighted average discount rate for remeasured operating leases increased from 10.0% as of December 31, 2019 to 14.4% as of September 30, 2020. 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. |
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, 2021 (in thousands): Operating Leases Financing Leases Total Remainder of 2021 $ 158,056 174 158,230 2022 601,512 424 601,936 2023 595,852 76 595,928 2024 587,016 67 587,083 2025 514,963 22 514,985 2026 464,262 — 464,262 Thereafter 1,260,244 — 1,260,244 Total lease payments 4,181,905 763 4,182,668 Less: imputed interest (1,212,263) (46) (1,212,309) Total $ 2,969,642 717 2,970,359 |
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, 2021 (in thousands): Operating Leases Financing Leases Total Remainder of 2021 $ 158,056 174 158,230 2022 601,512 424 601,936 2023 595,852 76 595,928 2024 587,016 67 587,083 2025 514,963 22 514,985 2026 464,262 — 464,262 Thereafter 1,260,244 — 1,260,244 Total lease payments 4,181,905 763 4,182,668 Less: imputed interest (1,212,263) (46) (1,212,309) Total $ 2,969,642 717 2,970,359 |
Summary of weighted-average remaining lease term and discount rate | December 31, 2020 September 30, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted average remaining lease term 8.0 years 1.5 years 7.8 years 1.9 years Weighted average discount rate 13.7 % 6.2 % 9.1 % 5.7 % |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 remaining lease terms in excess of one year as of September 30, 2021 (in thousands). Processing, Firm Gathering and Land Payment Operating and Imputed Interest Transportation Compression Obligations Financing Leases for Leases (a) (b) (c) (d) (d) Total Remainder of 2021 $ 264,307 13,597 1,905 91,149 67,081 438,039 2022 1,042,280 52,265 400 352,249 249,687 1,696,881 2023 1,072,523 59,140 — 377,308 218,620 1,727,591 2024 1,045,442 59,262 — 402,702 184,381 1,691,787 2025 1,024,783 47,960 — 366,353 148,632 1,587,728 2026 1,018,812 14,783 — 350,438 113,824 1,497,857 Thereafter 6,033,138 98,596 — 1,030,160 230,084 7,391,978 Total $ 11,501,285 345,603 2,305 2,970,359 1,212,309 16,031,861 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reportable Segments | |
Schedule of operating results and assets of reportable segments | The operating results and assets of the Company’s reportable segments were as follows for the three months ended September 30, 2020 and 2021 (in thousands): Three Months Ended September 30, 2020 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 288,419 91,497 — — 379,916 Intersegment 675 — 233,415 (233,415) 675 Total revenue $ 289,094 91,497 233,415 (233,415) 380,591 Operating expenses: Lease operating $ 21,450 — — — 21,450 Gathering, compression, processing, and transportation 656,615 — 38,052 (38,052) 656,615 Impairment of oil and gas properties 29,392 — — — 29,392 Depletion, depreciation, and amortization 238,418 — 26,801 (26,801) 238,418 General and administrative 31,640 — 13,232 (13,232) 31,640 Other 28,605 128,580 3,513 (3,513) 157,185 Total operating expenses 1,006,120 128,580 81,598 (81,598) 1,134,700 Operating income (loss) $ (717,026) (37,083) 151,817 (151,817) (754,109) Equity in earnings of unconsolidated affiliates $ 24,419 — 23,173 (23,173) 24,419 Investments in unconsolidated affiliates $ 272,926 — — — 272,926 Segment assets $ 13,349,739 — 5,673,504 (5,673,504) 13,349,739 Capital expenditures for segment assets $ 151,269 — 41,851 (41,851) 151,269 Three Months Ended September 30, 2021 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 301,207 232,685 242,472 (242,472) 533,892 Intersegment 530 — (17,668) 17,668 530 Total revenue $ 301,737 232,685 224,804 (224,804) 534,422 Operating expenses: Lease operating $ 25,363 — — — 25,363 Gathering, compression, processing, and transportation 628,225 — 39,499 (39,499) 628,225 Impairment of oil and gas properties 26,253 — — — 26,253 Depletion, depreciation, and amortization 182,810 — 27,487 (27,487) 182,810 General and administrative 32,442 — 14,810 (14,810) 32,442 Other 56,652 266,751 1,187 (1,187) 323,403 Total operating expenses 951,745 266,751 82,983 (82,983) 1,218,496 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 Investments in unconsolidated affiliates $ 236,597 — 703,780 (703,780) 236,597 Segment assets $ 13,375,515 96,023 5,533,633 (5,533,633) 13,471,538 Capital expenditures for segment assets $ 387,783 — 82,583 (82,583) 387,783 The operating results and assets of the Company’s reportable segments were as follows for the nine months ended September 30, 2020 and 2021 (in thousands): Nine Months Ended September 30, 2020 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 1,978,572 201,855 — — 2,180,427 Intersegment 2,180 — 696,859 (696,859) 2,180 Total revenue $ 1,980,752 201,855 696,859 (696,859) 2,182,607 Operating expenses: Lease operating $ 71,836 — — — 71,836 Gathering, compression, processing, and transportation 1,877,084 — 128,847 (128,847) 1,877,084 Impairment of oil and gas properties 155,962 — — — 155,962 Impairment of midstream assets — — 665,491 (665,491) — Depletion, depreciation, and amortization 652,130 — 81,889 (81,889) 652,130 General and administrative 101,264 — 39,191 (39,191) 101,264 Other 88,023 334,906 14,062 (14,062) 422,929 Total operating expenses 2,946,299 334,906 929,480 (929,480) 3,281,205 Operating loss $ (965,547) (133,051) (232,621) 232,621 (1,098,598) Equity in earnings (loss) of unconsolidated affiliates $ (83,408) — 63,197 (63,197) (83,408) Investments in unconsolidated affiliates $ 272,926 — — — 272,926 Segment assets $ 13,349,739 — 5,673,504 (5,673,504) 13,349,739 Capital expenditures for segment assets $ 726,402 — 165,265 (165,265) 726,402 Nine Months Ended September 30, 2021 Equity Method Elimination of Investment in Intersegment Exploration Antero Transactions and and Midstream Unconsolidated Consolidated Production Marketing Corporation Affiliates Total Sales and revenues: Third-party $ 1,664,509 562,928 — — 2,227,437 Intersegment 551 — 681,712 (681,712) 551 Total revenue $ 1,665,060 562,928 681,712 (681,712) 2,227,988 Operating expenses: Lease operating $ 71,555 — — — 71,555 Gathering, compression, processing, and transportation 1,874,664 — 118,368 (118,368) 1,874,664 Impairment of oil and gas properties 69,618 — — — 69,618 Depletion, depreciation, and amortization 564,166 — 80,956 (80,956) 564,166 General and administrative 108,693 — 46,991 (46,991) 108,693 Other 143,954 627,822 8,590 (8,590) 771,776 Total operating expenses 2,832,650 627,822 254,905 (254,905) 3,460,472 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 Investments in unconsolidated affiliates $ 236,597 — 703,780 (703,780) 236,597 Segment assets $ 13,375,515 96,023 5,533,633 (5,533,633) 13,471,538 Capital expenditures for segment assets $ 510,941 — 156,948 (156,948) 510,941 |
Subsidiary Guarantors (Tables)
Subsidiary Guarantors (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Subsidiary Guarantors | |
Schedule of summarized financial information of Antero and its guarantor subsidiaries | The following tables present summarized financial information of Antero and its guarantor subsidiaries (in thousands). The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company. Balance Sheet December 31, 2020 September 30, 2021 Parent (Antero) Parent (Antero) and Guarantor Subsidiaries and Guarantor Subsidiaries Accounts receivable, non-guarantor subsidiaries $ — — Accounts receivable, related parties — — Other current assets 543,841 665,111 Total current assets 543,841 665,111 Noncurrent assets 11,783,502 12,016,722 Total assets $ 12,327,343 12,681,833 Accounts payable, non-guarantor subsidiaries $ — — Accounts payable, related parties 69,860 79,595 Other current liabilities 906,348 2,674,603 Total current liabilities 976,208 2,754,198 Noncurrent liabilities 6,070,388 5,499,255 Total liabilities $ 7,046,596 8,253,453 Statement of Operations Nine Months Ended September 30, 2021 Parent (Antero) and Guarantor Subsidiaries Revenues $ 2,220,306 Operating expenses 3,428,943 Loss from operations (1,208,637) Net loss and comprehensive loss including noncontrolling interests (1,088,283) Net loss and comprehensive loss attributable to Antero Resources Corporation $ (1,088,283) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Payable | ||
Basis of Presentation | ||
Book overdrafts | $ 37 | $ 11 |
Revenue distributions payable | ||
Basis of Presentation | ||
Book overdrafts | $ 31 | $ 15 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - EPS and New Accounting Principle (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jan. 01, 2022 | Aug. 21, 2020 | |
Earnings per share and New Accounting Principle | ||||||
Basic weighted average number of shares outstanding | 313,790 | 268,511 | 306,201 | 273,689 | ||
Diluted weighted average number of shares outstanding | 313,790 | 268,511 | 306,201 | 273,689 | ||
Weighted average anti-dilutive awards under the if-converted method | 28,000 | 10,000 | ||||
Accounting Standards Update 2020-06 | Adjustment Effect | Forecast | Minimum | ||||||
Earnings per share and New Accounting Principle | ||||||
Amount expected to be reclassified from stockholders' equity to long-term debt and deferred income tax liability | $ 15 | |||||
Accounting Standards Update 2020-06 | Adjustment Effect | Forecast | Maximum | ||||||
Earnings per share and New Accounting Principle | ||||||
Amount expected to be reclassified from stockholders' equity to long-term debt and deferred income tax liability | $ 30 | |||||
4.25% convertible senior notes due 2026 | ||||||
Earnings per share and New Accounting Principle | ||||||
Effective interest rate (as a percent) | 15.10% | 15.10% | 15.10% | |||
4.25% convertible senior notes due 2026 | Accounting Standards Update 2020-06 | Adjustment Effect | Forecast | ||||||
Earnings per share and New Accounting Principle | ||||||
Effective interest rate (as a percent) | 4.80% | |||||
RSUs | ||||||
Earnings per share and New Accounting Principle | ||||||
Weighted average anti-dilutive awards | 6,158 | 10,129 | 6,562 | 7,397 | ||
PSUs | ||||||
Earnings per share and New Accounting Principle | ||||||
Weighted average anti-dilutive awards | 2,748 | 1,988 | 2,706 | 1,808 | ||
Stock options | ||||||
Earnings per share and New Accounting Principle | ||||||
Weighted average anti-dilutive awards | 357 | 432 | 388 | 432 | ||
4.25% convertible senior notes due 2026 | ||||||
Earnings per share and New Accounting Principle | ||||||
Weighted average anti-dilutive awards | 18,778 | 18,778 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Income tax (Details) - Adjustment Effect - West Virginia $ in Millions | Sep. 30, 2021USD ($) |
Income taxes | |
Deferred tax liabilities | $ (34) |
Deferred tax assets | 48 |
Valuation allowance | $ 14 |
Transactions (Details)
Transactions (Details) ft in Thousands, $ in Thousands | Aug. 10, 2020USD ($) | Jul. 01, 2020MMBTU | Jun. 15, 2020USD ($)ft | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Feb. 17, 2021 |
Transactions | |||||||||
Cash contribution | $ 51,000 | $ 300,000 | |||||||
Net proceeds from VPP transaction | $ 215,833 | ||||||||
ORRI | |||||||||
Transactions | |||||||||
Initial PDP Override (as a percent) | 1.25% | ||||||||
Development Override (as a percent) | 3.75% | ||||||||
Horizontal wells turned to sales, threshold one (in lateral feet) | ft | 2,200 | ||||||||
Horizontal wells turned to sales, threshold two (in lateral feet) | ft | 3,820 | ||||||||
Incremental override (percentage) | 2.00% | ||||||||
Percentage of distributions received | 85.00% | ||||||||
ORRI | Sixth Street | |||||||||
Transactions | |||||||||
Cash contribution | $ 300,000 | ||||||||
Additional contribution upon achievement of production target | $ 102,000 | ||||||||
Cash distributions received | $ 51,000 | $ 51,000 | |||||||
Internal rate of return threshold | 13.00% | ||||||||
Cash on cash return threshold | 150.00% | ||||||||
VPP | |||||||||
Transactions | |||||||||
Net proceeds from VPP transaction | $ 216,000 | ||||||||
VPP | JPM -VEC | |||||||||
Transactions | |||||||||
Overriding royalty interest conveyed in proved developed producing oil and gas properties | MMBTU | 136,589,000 | ||||||||
VPP agreement term for overriding royalty interest (in years) | 7 years | ||||||||
Drilling Partnership | QL | |||||||||
Transactions | |||||||||
Percent of total development capital spending in current year to be funded by drilling partner | 20.00% | ||||||||
Gain (loss) on interests conveyed | $ 0 | $ 0 | |||||||
Drilling Partnership | QL | Minimum | |||||||||
Transactions | |||||||||
Percent of total development capital spending in years 2-4 to be funded by drilling partner | 15.00% | ||||||||
Drilling Partnership | QL | Maximum | |||||||||
Transactions | |||||||||
Percent of total development capital spending in years 2-4 to be funded by drilling partner | 20.00% |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue | ||||
Revenue | $ 1,772,415 | $ 889,492 | $ 4,450,839 | $ 2,292,185 |
Income (loss) from derivatives, deferred revenue and other sources | (1,237,993) | (508,901) | (2,222,851) | (109,578) |
Total revenue | 534,422 | 380,591 | 2,227,988 | 2,182,607 |
Natural gas sales | ||||
Disaggregation of Revenue | ||||
Revenue | 884,669 | 436,304 | 2,231,558 | 1,214,801 |
Oil sales | ||||
Disaggregation of Revenue | ||||
Revenue | 56,734 | 34,265 | 153,326 | 78,233 |
Marketing | ||||
Disaggregation of Revenue | ||||
Revenue | 232,685 | 91,497 | 562,928 | 201,855 |
Exploration and production | Natural gas sales | ||||
Disaggregation of Revenue | ||||
Revenue | 884,669 | 436,304 | 2,231,558 | 1,214,801 |
Exploration and production | Natural gas liquids sales (ethane) | ||||
Disaggregation of Revenue | ||||
Revenue | 57,919 | 32,444 | 137,446 | 85,884 |
Exploration and production | Natural gas liquids sales (C3+ NGLs) | ||||
Disaggregation of Revenue | ||||
Revenue | 540,408 | 294,982 | 1,365,581 | 711,412 |
Exploration and production | Oil sales | ||||
Disaggregation of Revenue | ||||
Revenue | 56,734 | 34,265 | 153,326 | 78,233 |
Marketing | Marketing | ||||
Disaggregation of Revenue | ||||
Revenue | $ 232,685 | $ 91,497 | $ 562,928 | $ 201,855 |
Revenue - Transaction Price All
Revenue - Transaction Price Allocation and Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Revenue | ||
Original expected duration | true | |
Receivables from contracts with customers | $ 652,521 | $ 425,314 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in unconsolidated affiliates | ||||||||||
Equity in earnings of unconsolidated affiliate | $ 21,450 | $ 24,419 | $ 57,621 | $ (83,408) | ||||||
Dividends from unconsolidated affiliates | (105,325) | (128,267) | ||||||||
Impairment | (610,632) | |||||||||
Balance Sheet | ||||||||||
Current assets | 708,853 | 708,853 | $ 574,139 | |||||||
Total assets | 13,471,538 | 13,349,739 | 13,471,538 | 13,349,739 | 13,150,845 | |||||
Current liabilities | 2,802,682 | 2,802,682 | 983,054 | |||||||
Total equity | 5,135,242 | $ 5,718,414 | $ 6,227,949 | 5,983,881 | $ 6,432,979 | $ 6,592,540 | 5,135,242 | 5,983,881 | 6,090,271 | $ 6,970,743 |
Total liabilities and equity | 13,471,538 | 13,471,538 | 13,150,845 | |||||||
Revenues | 534,422 | 380,591 | 2,227,988 | 2,182,607 | ||||||
Operating expenses | 1,218,496 | 1,134,700 | 3,460,472 | 3,281,205 | ||||||
Income (loss) from operations | (684,074) | (754,109) | (1,232,484) | (1,098,598) | ||||||
Net loss including noncontrolling interests | $ (566,575) | $ (534,451) | (11,104) | $ (553,846) | $ (463,068) | $ (338,810) | $ (1,112,130) | (1,355,724) | ||
Antero Midstream Corporation | ||||||||||
Equity Method Investments | ||||||||||
Ownership percentage | 29.10% | 29.10% | ||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Antero Midstream Corporation | ||||||||||
Investments in unconsolidated affiliates | ||||||||||
Balance at beginning of period | $ 255,082 | $ 255,082 | ||||||||
Equity in earnings of unconsolidated affiliate | 57,621 | |||||||||
Dividends from unconsolidated affiliates | (105,325) | |||||||||
Elimination of intercompany profit | 29,219 | |||||||||
Balance at end of period | $ 236,597 | 236,597 | ||||||||
Fair value of investment | 1,400,000 | 1,400,000 | 1,100,000 | |||||||
Balance Sheet | ||||||||||
Current assets | 87,490 | 87,490 | 93,931 | |||||||
Noncurrent assets | 5,446,143 | 5,446,143 | 5,516,981 | |||||||
Total assets | 5,533,633 | 5,533,633 | 5,610,912 | |||||||
Current liabilities | 118,690 | 118,690 | 94,005 | |||||||
Noncurrent liabilities | 3,102,350 | 3,102,350 | 3,098,621 | |||||||
Total equity | 2,312,593 | 2,312,593 | 2,418,286 | |||||||
Total liabilities and equity | $ 5,533,633 | 5,533,633 | $ 5,610,912 | |||||||
Revenues | 681,712 | 696,859 | ||||||||
Operating expenses | 254,905 | 929,480 | ||||||||
Income (loss) from operations | 426,807 | (232,621) | ||||||||
Net loss including noncontrolling interests | $ 252,991 | $ (198,985) |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities | ||
Capital expenditures | $ 52,958 | $ 32,372 |
Gathering, compression, processing, and transportation expenses | 158,443 | 152,724 |
Marketing expenses | 115,317 | 68,193 |
Interest expense, net | 34,693 | 25,645 |
Accrued production and ad valorem taxes | 30,488 | 37,371 |
Derivative settlements payable | 72,354 | 3,425 |
Other | 36,879 | 23,794 |
Total accrued liabilities | $ 501,132 | $ 343,524 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ / shares in Units, $ in Thousands | Nov. 02, 2021USD ($) | Oct. 26, 2021USD ($) | Jun. 01, 2021USD ($) | May 13, 2021USD ($)$ / sharesshares | Jan. 26, 2021USD ($) | Jan. 12, 2021USD ($)$ / sharesshares | Jan. 04, 2021USD ($) | Aug. 21, 2020USD ($)Dshares | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Oct. 18, 2021USD ($) | Jul. 01, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 02, 2020USD ($) | Dec. 21, 2016USD ($) | Mar. 17, 2015USD ($) | Sep. 18, 2014USD ($) | May 06, 2014USD ($) |
Long-Term Debt | |||||||||||||||||||||||
Total principal | $ 2,394,070 | $ 2,394,070 | $ 3,129,198 | ||||||||||||||||||||
Unamortized premium (discount), net | (28,780) | (28,780) | (111,886) | ||||||||||||||||||||
Unamortized debt issuance costs | (24,257) | (24,257) | (15,719) | ||||||||||||||||||||
Long-term debt | 2,341,033 | 2,341,033 | 3,001,593 | ||||||||||||||||||||
Issuance of convertible notes | $ 287,500 | ||||||||||||||||||||||
Payments of deferred financing costs | 22,814 | 8,907 | |||||||||||||||||||||
Loss on convertible note equitization | 50,777 | ||||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | (16,567) | $ 55,633 | (82,836) | $ 175,365 | |||||||||||||||||||
Debt Repurchase Program | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Weighted average percentage discount on repurchases of debt | 13.00% | 17.00% | |||||||||||||||||||||
Principal amount of debt repurchased | $ 461,000 | $ 1,100,000 | |||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | 56,000 | 175,000 | |||||||||||||||||||||
Prior Credit Facility | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Credit facility | 97,500 | 97,500 | $ 1,017,000 | ||||||||||||||||||||
Current borrowing base | 2,850,000 | 2,850,000 | |||||||||||||||||||||
Lender commitments | $ 2,640,000 | $ 2,640,000 | |||||||||||||||||||||
Weighted average interest rate (as a percent) | 3.40% | 3.40% | 3.26% | ||||||||||||||||||||
Outstanding letters of credit | $ 742,000 | $ 742,000 | $ 730,000 | ||||||||||||||||||||
Prior 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) | 0.30% | ||||||||||||||||||||||
Prior 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) | 0.375% | ||||||||||||||||||||||
New Credit Facility | Subsequent event | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Current borrowing base | $ 3,500,000 | ||||||||||||||||||||||
Lender commitments | $ 1,500,000 | ||||||||||||||||||||||
New Credit Facility | Subsequent event | 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% | ||||||||||||||||||||||
New Credit Facility | Subsequent event | 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 | |||||||||||||||||||||||
Senior notes | $ 660,516 | $ 500,000 | $ 600,000 | ||||||||||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | |||||||||||||||||||||
Issue price as percentage of par value | 100.50% | 100.00% | |||||||||||||||||||||
5.125 senior notes due 2022 | Debt Repurchase Program | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Notional amount debt repurchased | $ 661,000 | ||||||||||||||||||||||
5.625% senior notes due 2023 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 574,182 | $ 750,000 | |||||||||||||||||||||
Interest rate (as a percent) | 5.625% | 5.625% | |||||||||||||||||||||
Issue price as percentage of par value | 100.00% | ||||||||||||||||||||||
5.625% senior notes due 2023 | Debt Repurchase Program | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Notional amount debt repurchased | $ 574,000 | ||||||||||||||||||||||
5.00% senior notes due 2025 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 590,000 | $ 590,000 | $ 590,000 | $ 600,000 | |||||||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||||||||||||
Issue price as percentage of par value | 100.00% | ||||||||||||||||||||||
Redemption price | 102.50% | ||||||||||||||||||||||
Redemption price at which notes may be required to be repurchased in event of change of control | 101.00% | ||||||||||||||||||||||
Notional amount debt repurchased | $ 10,000 | ||||||||||||||||||||||
5.00% senior notes due 2025 | On or after March 1, 2023 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 500,000 | $ 325,000 | $ 325,000 | ||||||||||||||||||||
Interest rate (as a percent) | 8.375% | 8.375% | 8.375% | ||||||||||||||||||||
Issue price as percentage of par value | 100.00% | ||||||||||||||||||||||
Redemption price of the debt instrument in the event of change of control (as a percent) | 101.00% | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 | Debt Repurchase Program | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Notional amount debt repurchased | $ 175,000 | $ 175,000 | $ 175,000 | ||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | $ (17,000) | ||||||||||||||||||||||
Percentage of redeemed amount | 108.375% | ||||||||||||||||||||||
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 | 100.00% | ||||||||||||||||||||||
8.375% Senior Notes Due 2026 | Prior to January 15, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 700,000 | $ 700,000 | $ 700,000 | ||||||||||||||||||||
Interest rate (as a percent) | 7.625% | 7.625% | 7.625% | ||||||||||||||||||||
Issue price as percentage of par value | 100.00% | ||||||||||||||||||||||
Redemption price of the debt instrument in the event of change of control (as a percent) | 101.00% | ||||||||||||||||||||||
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 | 100.00% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | On or before February 1, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings | 35.00% | ||||||||||||||||||||||
Redemption price of the debt instrument if redeemed with the proceeds of certain equity offerings (as a percent) | 107.625% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | Prior to February 1, 2024 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | Subsequent event | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Notional amount debt repurchased | $ 116,000 | ||||||||||||||||||||||
7.625% Senior Notes Due 2029 | Subsequent event | Forecast | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Total principal | $ 584,000 | ||||||||||||||||||||||
Notional amount debt repurchased | $ 116,000 | ||||||||||||||||||||||
Percentage of redeemed amount | 107.625% | ||||||||||||||||||||||
Premium on amount received | $ 9,000 | ||||||||||||||||||||||
5.375% senior notes due 2030 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Senior notes | $ 600,000 | $ 600,000 | $ 600,000 | ||||||||||||||||||||
Interest rate (as a percent) | 5.375% | 5.375% | 5.375% | ||||||||||||||||||||
Issue price as percentage of par value | 100.00% | ||||||||||||||||||||||
Redemption price of the debt instrument in the event of change of control (as a percent) | 101.00% | ||||||||||||||||||||||
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 | 100.00% | ||||||||||||||||||||||
5.375% senior notes due 2030 | On or Before March 1, 2025 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings | 35.00% | ||||||||||||||||||||||
Redemption price of the debt instrument if redeemed with the proceeds of certain equity offerings (as a percent) | 105.375% | ||||||||||||||||||||||
5.375% senior notes due 2030 | Prior to March 1, 2025 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Redemption price | 100.00% | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Convertible senior notes | $ 250,000 | $ 81,570 | $ 81,570 | 287,500 | $ 37,500 | ||||||||||||||||||
Unamortized premium (discount), net | $ (116,000) | (28,780) | (28,780) | (112,265) | |||||||||||||||||||
Unamortized debt issuance costs | (1,665) | (1,665) | (5,852) | ||||||||||||||||||||
Long-term debt | $ 51,125 | $ 51,125 | $ 169,383 | ||||||||||||||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||||||||
Issuance of convertible notes | $ 278,500 | ||||||||||||||||||||||
Payments of deferred financing costs | $ 9,000 | ||||||||||||||||||||||
Equity component | $ 32,799 | $ 32,799 | $ 115,601 | ||||||||||||||||||||
Conversion rate in shares of Antero Resources' common stock per $1,000 principal amount | shares | 230.2026 | ||||||||||||||||||||||
If-converted value | 353,000 | 353,000 | |||||||||||||||||||||
If-converted value above principal amount | $ 272,000 | $ 272,000 | |||||||||||||||||||||
Effective interest rate (as a percent) | 15.10% | 15.10% | 15.10% | ||||||||||||||||||||
Deferred taxes | $ 8,000 | $ 8,000 | 28,000 | ||||||||||||||||||||
Debt issuance cost | 1,000 | 1,000 | $ 3,000 | ||||||||||||||||||||
Interest expenses | $ 1,500 | $ 2,300 | 8,700 | $ 2,300 | |||||||||||||||||||
Amount of debt converted | 206,000 | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | January Share Offering | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Conversion rate in shares of Antero Resources' common stock per $1,000 principal amount | shares | 275.3525 | ||||||||||||||||||||||
Amount of debt converted | $ 150,000 | ||||||||||||||||||||||
Loss on convertible note equitization | 39,000 | ||||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | (41,000) | ||||||||||||||||||||||
Line of credit proceeds used to repurchase convertible notes | $ 63,000 | ||||||||||||||||||||||
Number of shares of common stock issued (in shares) | shares | 31,400,000 | ||||||||||||||||||||||
Share price | $ / shares | $ 6.35 | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | May Share Offering | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Conversion rate in shares of Antero Resources' common stock per $1,000 principal amount | shares | 245.2802 | ||||||||||||||||||||||
Amount of debt converted | $ 56,000 | ||||||||||||||||||||||
Loss on convertible note equitization | 12,000 | ||||||||||||||||||||||
Gain (loss) on extinguishment of debt repurchased | $ (21,000) | ||||||||||||||||||||||
Line of credit proceeds used to repurchase convertible notes | $ 26,000 | ||||||||||||||||||||||
Number of shares of common stock issued (in shares) | shares | 11,600,000 | ||||||||||||||||||||||
Share price | $ / shares | $ 11.01 | ||||||||||||||||||||||
4.25% convertible senior notes due 2026 | Convertible debt threshold minimum percentage | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Stock price trigger | 98.00% | ||||||||||||||||||||||
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 | 130.00% | ||||||||||||||||||||||
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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Asset Retirement Obligations | ||||
Asset retirement obligations - beginning of period | $ 54,452 | |||
Obligations incurred | 2,359 | |||
Accretion expense | $ 828 | $ 1,115 | 2,947 | $ 3,330 |
Settlement of obligations | (50) | |||
Revisions to prior estimates | (549) | |||
Asset retirement obligations - end of period | $ 59,159 | $ 59,159 |
Equity-Based Compensation and_3
Equity-Based Compensation and Cash Awards (Details) - USD ($) $ in Thousands | Mar. 12, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 17, 2020 | Mar. 11, 2019 |
Stock-based compensation expense | ||||||||
Equity based compensation expense recognized | $ 5,298 | $ 5,699 | $ 15,189 | $ 17,001 | ||||
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 | 7,888,490 | |||||||
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 | 3,327 | 3,063 | 9,957 | 9,021 | ||||
PSUs | ||||||||
Stock-based compensation expense | ||||||||
Equity based compensation expense recognized | 1,452 | 1,827 | 3,211 | 5,380 | ||||
Converted AM RSU Awards | ||||||||
Stock-based compensation expense | ||||||||
Equity based compensation expense recognized | 186 | 459 | 988 | 1,881 | ||||
Equity awards issued to directors | ||||||||
Stock-based compensation expense | ||||||||
Equity based compensation expense recognized | $ 333 | $ 350 | $ 1,033 | $ 719 |
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, 2021USD ($)$ / sharesshares | |
Number of shares | |
Total awarded and unvested at the beginning of the period (in shares) | shares | 8,432,397 |
Granted (in shares) | shares | 1,431,993 |
Vested (in shares) | shares | (3,546,654) |
Forfeited (in shares) | shares | (293,338) |
Total awarded and unvested at the end of the period (in shares) | shares | 6,024,398 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 4.06 |
Granted (in dollars per share) | $ / shares | 9.52 |
Vested (in dollars per share) | $ / shares | 4.36 |
Forfeited (in dollars per share) | $ / shares | 5.18 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 5.12 |
Unamortized equity-based compensation expense | $ | $ 24 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 7 months 6 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, 2021 | Dec. 31, 2020 | |
Stock options | ||
Outstanding at the beginning of the period (in shares) | 432,461 | |
Options expired (in shares) | (76,167) | |
Outstanding at the end of the period (in shares) | 356,294 | 432,461 |
Vested (in shares) | 356,294 | |
Exercisable (in shares) | 356,294 | |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 50.64 | |
Options expired (in dollars per share) | 50 | |
Outstanding at the end of the period (in dollars per share) | 50.78 | $ 50.64 |
Vested (in dollars per share) | 50.78 | |
Exercisable (in dollars per share) | $ 50.78 | |
Weighted average remaining contractual life | ||
Outstanding | 3 years 2 months 12 days | 4 years 1 month 6 days |
Vested | 3 years 2 months 12 days | |
Exercisable | 3 years 2 months 12 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 | 9 Months Ended | |||
Apr. 30, 2021item | Jul. 31, 2020USD ($) | Jan. 31, 2020USD ($)tranche | Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | |
Cash Awards | |||||
Unvested cash awards recorded in other liabilities | $ | $ 2 | $ 3.2 | |||
2013 Plan | |||||
Cash Awards | |||||
Cash awards granted | $ | $ 3.3 | ||||
Number of tranches related to cash awards | tranche | 3 | ||||
2020 Plan | |||||
Cash Awards | |||||
Cash awards granted | $ | $ 2.6 | ||||
Vesting period for cash awards | 4 years | ||||
PSUs | |||||
Number of units | |||||
Total awarded and unvested at the beginning of the period (in shares) | shares | 2,547,798 | ||||
Granted (in shares) | shares | 479,120 | ||||
Forfeited (in shares) | shares | (67,000) | ||||
Cancelled (unearned) | shares | (1,112,639) | ||||
Total awarded and unvested at the end of the period (in shares) | shares | 1,847,279 | ||||
Weighted average grant date fair value | |||||
Total awarded and unvested at the beginning of the period (in dollars per share) | $ 12.66 | ||||
Granted (in dollars per share) | 9.71 | ||||
Forfeited (in dollars per share) | 2.97 | ||||
Cancelled (unearned) (in dollars per share) | 19.19 | ||||
Total awarded and unvested at the end of the period (in dollars per share) | $ 8.31 | ||||
Additional disclosures | |||||
Unamortized equity-based compensation expense | $ | $ 8 | ||||
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years | ||||
Weighted-average assumptions used to calculate fair value of performance share units granted | |||||
Volatility (as a percent) | 85.00% | ||||
Risk-free interest rate (as a percent) | 0.32% | ||||
Weighted average fair value of awards granted-Absolute TSR | $ 11.99 | ||||
PSU Awards Based on TSR | |||||
Stock-based compensation | |||||
Service period | 3 years | ||||
PSU Awards Based on TSR | Minimum | |||||
Stock-based compensation | |||||
Number of PSUs that may vest, as a percent | 0.00% | ||||
PSU Awards Based on TSR | Maximum | |||||
Stock-based compensation | |||||
Number of PSUs that may vest, as a percent | 200.00% | ||||
PSU Awards Based on TSR | One Year Period | |||||
Stock-based compensation | |||||
Number of performance periods | item | 3 | ||||
Service period | 1 year | ||||
PSU Awards Based on TSR | Three Year Period | |||||
Stock-based compensation | |||||
Number of cumulative performance periods | item | 1 | ||||
Service period | 3 years | ||||
PSU Awards Based On Leverage Ratio | |||||
Stock-based compensation | |||||
Number of performance periods | item | 3 | ||||
Service period | 1 year | ||||
PSU Awards Based On Leverage Ratio | Minimum | |||||
Stock-based compensation | |||||
Number of PSUs that may vest, as a percent | 0.00% | ||||
PSU Awards Based On Leverage Ratio | Maximum | |||||
Stock-based compensation | |||||
Number of PSUs that may vest, as a percent | 200.00% |
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, 2021USD ($)$ / sharesshares | |
Number of units | |
Total awarded and unvested at the beginning of the period (in shares) | shares | 296,390 |
Vested (in shares) | shares | (209,964) |
Forfeited (in shares) | shares | (3,444) |
Total awarded and unvested at the end of the period (in shares) | shares | 82,982 |
Weighted average grant date fair value | |
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares | $ 15.06 |
Vested (in dollars per share) | $ / shares | 15.73 |
Forfeited (in dollars per share) | $ / shares | 13.25 |
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares | $ 13.46 |
Weighted average period for recognizing unrecognized stock-based compensation expense | 7 months 6 days |
Maximum | |
Weighted average grant date fair value | |
Unamortized equity-based compensation expense | $ | $ 1 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 01, 2021 | Jan. 26, 2021 | Jan. 04, 2021 | Dec. 31, 2020 | Aug. 21, 2020 | Dec. 21, 2016 | Mar. 17, 2015 | May 06, 2014 |
5.125 senior notes due 2022 | |||||||||
Financial Instruments | |||||||||
Interest rate (as a percent) | 5.125% | 5.125% | |||||||
5.625% senior notes due 2023 | |||||||||
Financial Instruments | |||||||||
Interest rate (as a percent) | 5.625% | 5.625% | |||||||
5.00% senior notes due 2025 | |||||||||
Financial Instruments | |||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | ||||||
8.375% Senior Notes Due 2026 | |||||||||
Financial Instruments | |||||||||
Interest rate (as a percent) | 8.375% | 8.375% | |||||||
7.625% Senior Notes Due 2029 | |||||||||
Financial Instruments | |||||||||
Interest rate (as a percent) | 7.625% | 7.625% | |||||||
5.375% senior notes due 2030 | |||||||||
Financial Instruments | |||||||||
Interest rate (as a percent) | 5.375% | 5.375% | |||||||
4.25% convertible senior notes due 2026 | |||||||||
Financial Instruments | |||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | ||||||
Fair value | Level 2 market data | |||||||||
Financial Instruments | |||||||||
Value | $ 2,741,077 | $ 2,212,629 | |||||||
Fair value | Level 2 market data | 5.125 senior notes due 2022 | |||||||||
Financial Instruments | |||||||||
Value | 658,468 | ||||||||
Fair value | Level 2 market data | 5.625% senior notes due 2023 | |||||||||
Financial Instruments | |||||||||
Value | 562,698 | ||||||||
Fair value | Level 2 market data | 5.00% senior notes due 2025 | |||||||||
Financial Instruments | |||||||||
Value | 601,800 | 560,500 | |||||||
Fair value | Level 2 market data | 8.375% Senior Notes Due 2026 | |||||||||
Financial Instruments | |||||||||
Value | 368,128 | ||||||||
Fair value | Level 2 market data | 7.625% Senior Notes Due 2029 | |||||||||
Financial Instruments | |||||||||
Value | 782,600 | ||||||||
Fair value | Level 2 market data | 5.375% senior notes due 2030 | |||||||||
Financial Instruments | |||||||||
Value | 631,860 | ||||||||
Fair value | Level 2 market data | 4.25% convertible senior notes due 2026 | |||||||||
Financial Instruments | |||||||||
Value | 356,689 | 430,963 | |||||||
Carrying value | |||||||||
Financial Instruments | |||||||||
Value | 2,243,533 | 1,984,593 | |||||||
Carrying value | 5.125 senior notes due 2022 | |||||||||
Financial Instruments | |||||||||
Value | 658,400 | ||||||||
Carrying value | 5.625% senior notes due 2023 | |||||||||
Financial Instruments | |||||||||
Value | 571,370 | ||||||||
Carrying value | 5.00% senior notes due 2025 | |||||||||
Financial Instruments | |||||||||
Value | 586,191 | 585,440 | |||||||
Carrying value | 8.375% Senior Notes Due 2026 | |||||||||
Financial Instruments | |||||||||
Value | 321,570 | ||||||||
Carrying value | 7.625% Senior Notes Due 2029 | |||||||||
Financial Instruments | |||||||||
Value | 691,575 | ||||||||
Carrying value | 5.375% senior notes due 2030 | |||||||||
Financial Instruments | |||||||||
Value | 593,072 | ||||||||
Carrying value | 4.25% convertible senior notes due 2026 | |||||||||
Financial Instruments | |||||||||
Value | $ 51,125 | $ 169,383 |
Derivative Instruments - Commod
Derivative Instruments - Commodity derivatives (Details) | Sep. 30, 2021bbl / dMMBTU / dMMBTU$ / bbl$ / MMBTU |
Put option | Year ending December 31, 2026 | |
Derivative Instruments | |
Notional amount | MMBTU | 94,544,000 |
Weighted average strike price | $ / MMBTU | 2.57 |
Call Option | |
Derivative Instruments | |
Notional amount | MMBTU / d | 427,500 |
Fixed price ($/MMBtu) | $ / MMBTU | 2.77 |
Swaps | Natural gas | Henry Hub | October-December 2021 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 2,160,000 |
Weighted average index price | $ / MMBTU | 2.78 |
Swaps | Natural gas | Henry Hub | October-December 2021 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 46,384 |
Weighted average index price | $ / MMBTU | 2.77 |
Swaps | Natural gas | Henry Hub | January-December 2022 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 1,155,486 |
Weighted average index price | $ / MMBTU | 2.50 |
Swaps | Natural gas | Henry Hub | January-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 38,356 |
Weighted average index price | $ / MMBTU | 2.39 |
Swaps | Natural gas | Henry Hub | January-December 2023 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 43,000 |
Weighted average index price | $ / MMBTU | 2.37 |
Swaps | Natural gas | Henry Hub | January-December 2023 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 35,616 |
Weighted average index price | $ / MMBTU | 2.35 |
Swaps | Natural gas | Henry Hub | January-December 2024 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 23,885 |
Weighted average index price | $ / MMBTU | 2.33 |
Swaps | Natural gas | Henry Hub | January-March 2025 | VIE, Martica | |
Derivative Instruments | |
Notional amount | MMBTU / d | 18,021 |
Weighted average index price | $ / MMBTU | 2.53 |
Swaps | Natural gas | NYMEX to TCO | October-December 2021 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 40,000 |
Weighted average hedged differential | $ / MMBTU | 0.414 |
Swaps | Natural gas | NYMEX to TCO | January-December 2022 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 60,000 |
Weighted average hedged differential | $ / MMBTU | 0.515 |
Swaps | Natural gas | NYMEX to TCO | January-December 2023 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 50,000 |
Weighted average hedged differential | $ / MMBTU | 0.525 |
Swaps | Natural gas | NYMEX to TCO | January-December 2024 | |
Derivative Instruments | |
Notional amount | MMBTU / d | 50,000 |
Weighted average hedged differential | $ / MMBTU | 0.530 |
Swaps | Natural gas | Mont Belvieu Natural Gasoline-OPIS Non-TET | October-December 2021 | |
Derivative Instruments | |
Notional amount | 8,300 |
Weighted average index price | $ / bbl | 49.70 |
Swaps | Natural gas | Mont Belvieu Natural Gasoline-OPIS Non-TET | October-December 2021 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 339 |
Weighted average index price | $ / bbl | 35.24 |
Swaps | Natural gas | Mont Belvieu Natural Gasoline-OPIS Non-TET | January-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 282 |
Weighted average index price | $ / bbl | 34.37 |
Swaps | Natural gas | Mont Belvieu Natural Gasoline-OPIS Non-TET | January-December 2023 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 247 |
Weighted average index price | $ / bbl | 40.74 |
Swaps | Natural gas liquids | Mont Belvieu Natural Gasoline to WTI | October-December 2021 | |
Derivative Instruments | |
Notional amount | 9,325 |
Weighted average payout ratio | 77 |
Swaps | Ethane | Mont Belvieu Purity Ethane-OPIS | October-December 2021 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 990 |
Weighted average index price | $ / bbl | 7.01 |
Swaps | Ethane | Mont Belvieu Purity Ethane-OPIS | January-March 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 521 |
Weighted average index price | $ / bbl | 6.68 |
Swaps | Propane | Mont Belvieu Propane OPIS Non TET | October-December 2021 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 1,069 |
Weighted average index price | $ / bbl | 19.88 |
Swaps | Propane | Mont Belvieu Propane OPIS Non TET | January-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 934 |
Weighted average index price | $ / bbl | 19.20 |
Swaps | Butane | Mont Belvieu Butane OPIS Non TET | October-December 2021 | |
Derivative Instruments | |
Notional amount | 2,600 |
Weighted average index price | $ / bbl | 33.77 |
Swaps | Butane | Mont Belvieu Butane OPIS TET | October-December 2021 | |
Derivative Instruments | |
Notional amount | 1,500 |
Weighted average index price | $ / bbl | 32.24 |
Swaps | Isobutane | Mont Belvieu Isobutane-OPIS Non-TET | October-December 2021 | |
Derivative Instruments | |
Notional amount | 2,800 |
Weighted average index price | $ / bbl | 35.75 |
Swaps | Oil | West Texas Intermediate | October-December 2021 | |
Derivative Instruments | |
Notional amount | 3,000 |
Weighted average index price | $ / bbl | 55.16 |
Swaps | Oil | West Texas Intermediate | October-December 2021 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 111 |
Weighted average index price | $ / bbl | 43.48 |
Swaps | Oil | West Texas Intermediate | January-December 2022 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 112 |
Weighted average index price | $ / bbl | 44.25 |
Swaps | Oil | West Texas Intermediate | January-December 2023 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 99 |
Weighted average index price | $ / bbl | 45.03 |
Swaps | Oil | West Texas Intermediate | January-December 2024 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 43 |
Weighted average index price | $ / bbl | 44.02 |
Swaps | Oil | West Texas Intermediate | January-March 2025 | VIE, Martica | |
Derivative Instruments | |
Notional amount | 39 |
Weighted average index price | $ / bbl | 45.06 |
Derivative Instruments - Fair v
Derivative Instruments - Fair value (Details) $ in Thousands | Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | $ 627 | $ 105,130 |
Noncurrent portion of fair value of derivative assets | 14,834 | 47,293 |
Current portion of fair value of derivative liabilities | 1,436,292 | 31,242 |
Noncurrent portion of fair value of derivative liabilities | 331,570 | 99,172 |
Commodity derivative | ||
Fair value of derivative instruments | ||
Total asset derivatives | 111,833 | |
Total liability derivatives | 1,767,862 | 130,414 |
Embedded derivatives | ||
Fair value of derivative instruments | ||
Total asset derivatives | 15,461 | 40,590 |
Derivatives not designated as hedges for accounting purposes | ||
Fair value of derivative instruments | ||
Total asset derivatives | 15,461 | 152,423 |
Total liability derivatives | 1,767,862 | 130,414 |
Net derivatives assets (liabilities) | (1,752,401) | 22,009 |
Derivatives not designated as hedges for accounting purposes | Commodity derivative | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | 97,144 | |
Noncurrent portion of fair value of derivative assets | 14,689 | |
Current portion of fair value of derivative liabilities | 1,436,292 | 31,242 |
Noncurrent portion of fair value of derivative liabilities | 331,570 | 99,172 |
Derivatives not designated as hedges for accounting purposes | Commodity derivative | VIE, Martica | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative liabilities | 53,000 | 7,000 |
Noncurrent portion of fair value of derivative liabilities | 34,000 | 7,000 |
Total liability derivatives | 87,000 | 14,000 |
Derivatives not designated as hedges for accounting purposes | Embedded derivatives | ||
Fair value of derivative instruments | ||
Current portion of fair value of derivative assets | 627 | 7,986 |
Noncurrent portion of fair value of derivative assets | $ 14,834 | $ 32,604 |
Derivatives designated as hedges for accounting purposes | ||
Fair value of derivative instruments | ||
Number of derivative instruments held designated as hedges | item | 0 | 0 |
Derivative Instruments - Assets
Derivative Instruments - Assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commodity derivative | ||
Commodity derivative assets | ||
Gross amounts on balance sheet | $ 18,246 | $ 181,375 |
Gross amounts offset on balance sheet | (18,246) | (69,542) |
Total asset derivatives | 111,833 | |
Commodity derivative liabilities | ||
Gross amounts on balance sheet | (1,786,108) | (199,956) |
Gross amounts offset on balance sheet | 18,246 | 69,542 |
Total liability derivatives | (1,767,862) | (130,414) |
Embedded derivatives | ||
Commodity derivative assets | ||
Gross amounts on balance sheet | 15,461 | 40,590 |
Total asset derivatives | $ 15,461 | $ 40,590 |
Derivative Instruments - Fair_2
Derivative Instruments - Fair value gains (losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Derivative fair value gains (losses) | $ (1,250,466) | $ (514,751) | $ (2,260,062) | $ (116,933) |
Commodity derivative | Revenue | ||||
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Derivative fair value gains (losses) | (1,238,384) | (558,979) | (2,228,076) | (161,161) |
Embedded derivatives | Revenue | ||||
Summary of realized and unrealized gains (losses) on derivative instruments | ||||
Derivative fair value gains (losses) | $ (12,082) | $ 44,228 | $ (31,986) | $ 44,228 |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 | Dec. 31, 2020 |
Lease Assets | ||
Operating leases right-of-use assets | $ 2,969,642 | $ 2,613,603 |
Short-term operating lease obligation | $ 352,939 | $ 265,178 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OperatingAndFinanceLeaseLiabilityCurrent | us-gaap:OperatingAndFinanceLeaseLiabilityCurrent |
Long-term operating lease obligation | $ 2,616,703 | $ 2,348,425 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OperatingAndFinanceLeaseLiabilityNoncurrent | us-gaap:OperatingAndFinanceLeaseLiabilityNoncurrent |
Total operating lease obligation | $ 2,969,642 | $ 2,613,603 |
Finance leases, right of use assets | 717 | 1,206 |
Short-term lease liabilities, finance leases | $ 531 | $ 845 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OperatingAndFinanceLeaseLiabilityCurrent | us-gaap:OperatingAndFinanceLeaseLiabilityCurrent |
Long-term lease liabilities, finance leases | $ 186 | $ 361 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OperatingAndFinanceLeaseLiabilityNoncurrent | us-gaap:OperatingAndFinanceLeaseLiabilityNoncurrent |
Total | $ 717 | $ 1,206 |
Finance leases, accumulated amortization | 2,000 | 3,000 |
Vehicles | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 1,023 | $ 2,704 |
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 | $ 717 | $ 1,206 |
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 | $ 595 | $ 746 |
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 | $ 1,786,321 | $ 1,302,290 |
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 and completion rigs | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 10,812 | $ 29,894 |
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 | $ 1,136,859 | $ 1,241,090 |
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 | $ 1,000,000 | $ 1,100,000 |
Office space | ||
Lease Assets | ||
Operating leases right-of-use assets | $ 34,032 | $ 36,879 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||||||
Total lease expense | $ 417,836 | $ 391,305 | $ 1,243,113 | $ 1,218,609 | ||
Amortization of right-of-use assets | 132 | 168 | 391 | 727 | ||
Short-term lease payments | $ 21,030 | $ 15,871 | 62,328 | 108,029 | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | 1,042,684 | 1,147,489 | ||||
Cash paid for amounts included in the measurement of lease liabilities: Investing cash flows from operating leases | 66,042 | 88,229 | ||||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from financing leases | 692 | 1,004 | ||||
ROU assets obtained in exchange for new operating lease obligations | 232,771 | 178,348 | ||||
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net | $ 345,066 | $ (174,880) | ||||
Weighted average discount rate for remeasured operating leases (as a percent) | 5.50% | 14.40% | 5.50% | 14.40% | 14.40% | 10.00% |
Proved properties | ||||||
Leases | ||||||
Total lease expense | $ 25,558 | $ 31,822 | $ 82,749 | $ 91,081 | ||
Gathering, compression, processing, and transportation | ||||||
Leases | ||||||
Total lease expense | 386,033 | 350,853 | 1,147,985 | 1,112,502 | ||
General and administrative | ||||||
Leases | ||||||
Total lease expense | 2,833 | 2,789 | 8,057 | 8,639 | ||
Contract termination and rig stacking | ||||||
Leases | ||||||
Total lease expense | 3,369 | 5,841 | 4,213 | 6,387 | ||
Lease operating | ||||||
Leases | ||||||
Total lease expense | 43 | 109 | ||||
Depletion, Depreciation, And Amortization | ||||||
Leases | ||||||
Amortization of right-of-use assets | $ 132 | $ 168 | $ 391 | $ 727 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Future minimum payments for operating lease liabilities | ||
Remainder of 2021 | $ 158,056 | |
2022 | 601,512 | |
2023 | 595,852 | |
2024 | 587,016 | |
2025 | 514,963 | |
2026 | 464,262 | |
Thereafter | 1,260,244 | |
Total lease payments | 4,181,905 | |
Less: imputed interest | (1,212,263) | |
Total operating lease obligation | 2,969,642 | $ 2,613,603 |
Future minimum payments for financing lease liabilities | ||
Remainder of 2021 | 174 | |
2022 | 424 | |
2023 | 76 | |
2024 | 67 | |
2025 | 22 | |
Total lease payments | 763 | |
Less: imputed interest | (46) | |
Total | 717 | $ 1,206 |
Future minimum payments for total lease liabilities | ||
Remainder of 2021 | 158,230 | |
2022 | 601,936 | |
2023 | 595,928 | |
2024 | 587,083 | |
2025 | 514,985 | |
2026 | 464,262 | |
Thereafter | 1,260,244 | |
Total lease payments | 4,182,668 | |
Less: imputed interest | (1,212,309) | |
Total | $ 2,970,359 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Weighted-average remaining lease term: Operating lease | 7 years 9 months 18 days | 8 years |
Weighted-average discount rate: Operating lease | 9.10% | 13.70% |
Weighted-average remaining lease term: Finance lease | 1 year 10 months 24 days | 1 year 6 months |
Weighted-average discount rate: Finance lease | 5.70% | 6.20% |
Leases - Related party disclosu
Leases - Related party disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Leases | |||||||
Accounts payable, related parties | $ 79,595 | $ 79,595 | $ 69,860 | ||||
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) | 75.00% | ||||||
Minimum volume commitments that require Antero to utilize or pay certain percentage of the capacity of new construction of compressor stations (as a percent) | 70.00% | ||||||
Term of lease | 10 years | 10 years | |||||
Notice period | 180 days | ||||||
Rebate received | $ 0 | $ 0 | $ 0 | $ 12,000 | $ 36,000 | ||
Gathering and compression fees paid | 178,000 | $ 181,000 | $ 539,000 | $ 503,000 | |||
Accounts payable, related parties | $ 62,000 | $ 62,000 | $ 55,000 |
Commitments (Details)
Commitments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Future minimum payments | |
Remainder of 2021 | $ 438,039 |
2022 | 1,696,881 |
2023 | 1,727,591 |
2024 | 1,691,787 |
2025 | 1,587,728 |
2026 | 1,497,857 |
Thereafter | 7,391,978 |
Total | 16,031,861 |
Firm transportation | |
Future minimum payments | |
Remainder of 2021 | 264,307 |
2022 | 1,042,280 |
2023 | 1,072,523 |
2024 | 1,045,442 |
2025 | 1,024,783 |
2026 | 1,018,812 |
Thereafter | 6,033,138 |
Total | 11,501,285 |
Gas processing, gathering and compression | |
Future minimum payments | |
Remainder of 2021 | 13,597 |
2022 | 52,265 |
2023 | 59,140 |
2024 | 59,262 |
2025 | 47,960 |
2026 | 14,783 |
Thereafter | 98,596 |
Total | 345,603 |
Land payment obligations | |
Future minimum payments | |
Remainder of 2021 | 1,905 |
2022 | 400 |
Total | 2,305 |
Operating and Financing Leases | |
Future minimum payments | |
Remainder of 2021 | 91,149 |
2022 | 352,249 |
2023 | 377,308 |
2024 | 402,702 |
2025 | 366,353 |
2026 | 350,438 |
Thereafter | 1,030,160 |
Total | 2,970,359 |
Imputed Interest for Leases | |
Future minimum payments | |
Remainder of 2021 | 67,081 |
2022 | 249,687 |
2023 | 218,620 |
2024 | 184,381 |
2025 | 148,632 |
2026 | 113,824 |
Thereafter | 230,084 |
Total | $ 1,212,309 |
Contingencies (Details)
Contingencies (Details) - WGL $ in Millions | Jun. 20, 2019USD ($) | Feb. 28, 2021USD ($) | Jun. 30, 2019lawsuit | Mar. 31, 2017USD ($) |
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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Sales and revenues: | |||||
Sales and revenues - Third-party | $ 533,892 | $ 379,916 | $ 2,227,437 | $ 2,180,427 | |
Sales and revenues - Intersegment | 530 | 675 | 551 | 2,180 | |
Revenues | 534,422 | 380,591 | 2,227,988 | 2,182,607 | |
Operating expenses: | |||||
Lease operating | 25,363 | 21,450 | 71,555 | 71,836 | |
Impairment of oil and gas properties | 26,253 | 29,392 | 69,618 | 155,962 | |
Depletion, depreciation, and amortization | 182,810 | 238,418 | 564,166 | 652,130 | |
General and administrative | 32,442 | 31,640 | 108,693 | 101,264 | |
Other | 323,403 | 157,185 | 771,776 | 422,929 | |
Total operating expenses | 1,218,496 | 1,134,700 | 3,460,472 | 3,281,205 | |
Operating income (loss) | (684,074) | (754,109) | (1,232,484) | (1,098,598) | |
Equity in earnings of unconsolidated affiliate | 21,450 | 24,419 | 57,621 | (83,408) | |
Investment in unconsolidated affiliate | 236,597 | 272,926 | 236,597 | 272,926 | $ 255,082 |
Segment assets | 13,471,538 | 13,349,739 | 13,471,538 | 13,349,739 | $ 13,150,845 |
Capital expenditures for segment assets | 387,783 | 151,269 | 510,941 | 726,402 | |
Gathering, compression, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 628,225 | 656,615 | 1,874,664 | 1,877,084 | |
Operating segments | Exploration and production | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | 301,207 | 288,419 | 1,664,509 | 1,978,572 | |
Sales and revenues - Intersegment | 530 | 675 | 551 | 2,180 | |
Revenues | 301,737 | 289,094 | 1,665,060 | 1,980,752 | |
Operating expenses: | |||||
Lease operating | 25,363 | 21,450 | 71,555 | 71,836 | |
Impairment of oil and gas properties | 26,253 | 29,392 | 69,618 | 155,962 | |
Depletion, depreciation, and amortization | 182,810 | 238,418 | 564,166 | 652,130 | |
General and administrative | 32,442 | 31,640 | 108,693 | 101,264 | |
Other | 56,652 | 28,605 | 143,954 | 88,023 | |
Total operating expenses | 951,745 | 1,006,120 | 2,832,650 | 2,946,299 | |
Operating income (loss) | (650,008) | (717,026) | (1,167,590) | (965,547) | |
Equity in earnings of unconsolidated affiliate | 21,450 | 24,419 | 57,621 | (83,408) | |
Investment in unconsolidated affiliate | 236,597 | 272,926 | 236,597 | 272,926 | |
Segment assets | 13,375,515 | 13,349,739 | 13,375,515 | 13,349,739 | |
Capital expenditures for segment assets | 387,783 | 151,269 | 510,941 | 726,402 | |
Operating segments | Exploration and production | Gathering, compression, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 628,225 | 656,615 | 1,874,664 | 1,877,084 | |
Operating segments | Marketing | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | 232,685 | 91,497 | 562,928 | 201,855 | |
Revenues | 232,685 | 91,497 | 562,928 | 201,855 | |
Operating expenses: | |||||
Other | 266,751 | 128,580 | 627,822 | 334,906 | |
Total operating expenses | 266,751 | 128,580 | 627,822 | 334,906 | |
Operating income (loss) | (34,066) | (37,083) | (64,894) | (133,051) | |
Segment assets | 96,023 | 96,023 | |||
Operating segments | Antero Midstream Corporation | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | 242,472 | ||||
Sales and revenues - Intersegment | (17,668) | 233,415 | 681,712 | 696,859 | |
Revenues | 224,804 | 233,415 | 681,712 | 696,859 | |
Operating expenses: | |||||
Impairment of midstream assets | 665,491 | ||||
Depletion, depreciation, and amortization | 27,487 | 26,801 | 80,956 | 81,889 | |
General and administrative | 14,810 | 13,232 | 46,991 | 39,191 | |
Other | 1,187 | 3,513 | 8,590 | 14,062 | |
Total operating expenses | 82,983 | 81,598 | 254,905 | 929,480 | |
Operating income (loss) | 141,821 | 151,817 | 426,807 | (232,621) | |
Equity in earnings of unconsolidated affiliate | 24,088 | 23,173 | 66,347 | 63,197 | |
Investment in unconsolidated affiliate | 703,780 | 703,780 | |||
Segment assets | 5,533,633 | 5,673,504 | 5,533,633 | 5,673,504 | |
Capital expenditures for segment assets | 82,583 | 41,851 | 156,948 | 165,265 | |
Operating segments | Antero Midstream Corporation | Gathering, compression, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | 39,499 | 38,052 | 118,368 | 128,847 | |
Elimination of intersegment transaction | |||||
Sales and revenues: | |||||
Sales and revenues - Third-party | (242,472) | ||||
Sales and revenues - Intersegment | 17,668 | (233,415) | (681,712) | (696,859) | |
Revenues | (224,804) | (233,415) | (681,712) | (696,859) | |
Operating expenses: | |||||
Impairment of midstream assets | (665,491) | ||||
Depletion, depreciation, and amortization | (27,487) | (26,801) | (80,956) | (81,889) | |
General and administrative | (14,810) | (13,232) | (46,991) | (39,191) | |
Other | (1,187) | (3,513) | (8,590) | (14,062) | |
Total operating expenses | (82,983) | (81,598) | (254,905) | (929,480) | |
Operating income (loss) | (141,821) | (151,817) | (426,807) | 232,621 | |
Equity in earnings of unconsolidated affiliate | (24,088) | (23,173) | (66,347) | (63,197) | |
Investment in unconsolidated affiliate | (703,780) | (703,780) | |||
Segment assets | (5,533,633) | (5,673,504) | (5,533,633) | (5,673,504) | |
Capital expenditures for segment assets | (82,583) | (41,851) | (156,948) | (165,265) | |
Elimination of intersegment transaction | Gathering, compression, processing, and transportation | |||||
Operating expenses: | |||||
Cost of goods and services sold | $ (39,499) | $ (38,052) | $ (118,368) | $ (128,847) |
Subsidiary Guarantors - Balance
Subsidiary Guarantors - Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | |||
Other current assets | $ 20,937 | $ 15,238 | |
Total current assets | 708,853 | 574,139 | |
Total assets | 13,471,538 | 13,150,845 | $ 13,349,739 |
Liabilities and Stockholders' Equity | |||
Accounts payable, related parties | 79,595 | 69,860 | |
Other current liabilities | 16,320 | 2,302 | |
Total current liabilities | 2,802,682 | 983,054 | |
Total liabilities | 8,336,296 | 7,060,574 | |
Parent (Antero) And Guarantor Subsidiaries | |||
Current assets: | |||
Other current assets | 665,111 | 543,841 | |
Total current assets | 665,111 | 543,841 | |
Noncurrent assets | 12,016,722 | 11,783,502 | |
Total assets | 12,681,833 | 12,327,343 | |
Liabilities and Stockholders' Equity | |||
Accounts payable, related parties | 79,595 | 69,860 | |
Other current liabilities | 2,674,603 | 906,348 | |
Total current liabilities | 2,754,198 | 976,208 | |
Noncurrent liabilities | 5,499,255 | 6,070,388 | |
Total liabilities | $ 8,253,453 | $ 7,046,596 |
Subsidiary Guarantors - Stateme
Subsidiary Guarantors - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed consolidated statement of operations and comprehensive income (loss) | ||||||||
Revenue | $ 1,772,415 | $ 889,492 | $ 4,450,839 | $ 2,292,185 | ||||
Operating expenses | 1,218,496 | 1,134,700 | 3,460,472 | 3,281,205 | ||||
Income (loss) from operations | (684,074) | (754,109) | (1,232,484) | (1,098,598) | ||||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (566,575) | $ (534,451) | $ (11,104) | (553,846) | $ (463,068) | $ (338,810) | (1,112,130) | (1,355,724) |
Net income (loss) attributable to Antero Resources Corporation | $ (549,318) | $ (535,613) | (1,088,284) | $ (1,337,727) | ||||
Parent (Antero) And Guarantor Subsidiaries | ||||||||
Condensed consolidated statement of operations and comprehensive income (loss) | ||||||||
Revenue | 2,220,306 | |||||||
Operating expenses | 3,428,943 | |||||||
Income (loss) from operations | (1,208,637) | |||||||
Net income (loss) and comprehensive income (loss) including noncontrolling interests | (1,088,283) | |||||||
Net income (loss) attributable to Antero Resources Corporation | $ (1,088,283) |