Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38075 | |
Entity Registrant Name | ANTERO MIDSTREAM CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1748605 | |
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 $0.01 | |
Trading Symbol | AM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 478,484,564 | |
Entity Central Index Key | 0001623925 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Accounts receivable - Antero Resources | $ 77,301 | $ 81,197 |
Accounts receivable - third party | 1,988 | 747 |
Income tax receivable | 940 | 940 |
Other current assets | 556 | 920 |
Total current assets | 80,785 | 83,804 |
Property and equipment, net | 3,508,008 | 3,394,746 |
Investments in unconsolidated affiliates | 659,006 | 696,009 |
Customer relationships | 1,303,771 | 1,356,775 |
Other assets, net | 12,251 | 12,667 |
Total assets | 5,563,821 | 5,544,001 |
Current liabilities: | ||
Accounts payable - Antero Resources | 2,648 | 4,956 |
Accounts payable - third party | 24,125 | 23,592 |
Accrued liabilities | 72,952 | 80,838 |
Other current liabilities | 6,657 | 4,623 |
Total current liabilities | 106,382 | 114,009 |
Long-term liabilities: | ||
Long-term debt | 3,143,169 | 3,122,910 |
Deferred income tax liability | 98,519 | 13,721 |
Other | 3,896 | 6,663 |
Total liabilities | 3,351,966 | 3,257,303 |
Stockholders' Equity: | ||
Preferred stock | ||
Common stock, $0.01 par value; 2,000,000 authorized; 477,495 and 478,462 issued and outstanding as of December 31, 2021 and September 30, 2022, respectively | 4,784 | 4,775 |
Additional paid-in capital | 2,123,057 | 2,414,398 |
Retained earnings (accumulated deficit) | 84,014 | (132,475) |
Total stockholders' equity | 2,211,855 | 2,286,698 |
Total liabilities and stockholders' equity | 5,563,821 | 5,544,001 |
Series A Preferred Stock | ||
Stockholders' Equity: | ||
Preferred stock |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 478,462,000 | 477,495,000 |
Common stock, shares outstanding | 478,462,000 | 477,495,000 |
Series A Preferred Stock | ||
Preferred stock, authorized shares | 12,000 | 12,000 |
Preferred stock, shares issued | 10,000 | 10,000 |
Preferred stock, shares outstanding | 10,000 | 10,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Amortization of customer relationships | $ (17,668) | $ (17,668) | $ (53,004) | $ (53,004) |
Total revenue | 231,034 | 224,804 | 678,432 | 681,712 |
Operating expenses: | ||||
Direct operating | 46,648 | 39,499 | 131,959 | 118,368 |
General and administrative | 13,587 | 14,810 | 47,597 | 46,991 |
Facility idling | 865 | 870 | 3,198 | 3,033 |
Depreciation | 34,206 | 27,487 | 98,181 | 80,956 |
Impairment of property and equipment | 203 | 3,702 | 1,582 | |
Accretion of asset retirement obligations | 50 | 114 | 178 | 347 |
Loss on settlement of asset retirement obligations | 539 | |||
Loss (gain) on asset sale | (2,092) | (2,242) | 3,628 | |
Total operating expenses | 93,264 | 82,983 | 283,112 | 254,905 |
Operating income | 137,770 | 141,821 | 395,320 | 426,807 |
Other income (expense): | ||||
Interest expense, net | (47,835) | (44,544) | (137,540) | (130,915) |
Equity in earnings of unconsolidated affiliates | 24,411 | 24,088 | 70,467 | 66,347 |
Loss on early extinguishment of debt | (20,701) | |||
Total other expense | (23,424) | (20,456) | (67,073) | (85,269) |
Income before income taxes | 114,346 | 121,365 | 328,247 | 341,538 |
Income tax expense | (30,332) | (32,038) | (84,798) | (88,547) |
Net income and comprehensive income | $ 84,014 | $ 89,327 | $ 243,449 | $ 252,991 |
Net income per share-basic (in dollars per share) | $ 0.18 | $ 0.19 | $ 0.51 | $ 0.53 |
Net income per share-diluted (in dollars per share) | $ 0.17 | $ 0.19 | $ 0.51 | $ 0.53 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 478,460 | 477,442 | 478,144 | 477,196 |
Diluted (in shares) | 480,318 | 479,695 | 480,342 | 479,501 |
Natural Gas, Gathering, Transportation, Marketing and Processing - Affiliate | ||||
Revenue: | ||||
Total operating revenues | $ 185,640 | $ 188,716 | $ 552,154 | $ 566,544 |
Natural Gas Water Handling and Treatment - Affiliate | ||||
Revenue: | ||||
Total operating revenues | 61,411 | 53,511 | 176,994 | 167,832 |
Natural Gas Water Handling and Treatment | ||||
Revenue: | ||||
Total operating revenues | $ 1,651 | $ 245 | $ 2,288 | $ 340 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Operations and Comprehensive Income | ||||
Equity-based compensation | $ 5,553 | $ 3,255 | $ 14,026 | $ 10,326 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2020 | $ 4,766 | $ 2,877,612 | $ (464,092) | $ 2,418,286 |
Balance (shares) at Dec. 31, 2020 | 476,639 | |||
Dividends to stockholders | (147,332) | (147,332) | ||
Equity-based compensation | 4,012 | 4,012 | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes | $ 3 | (1,544) | (1,541) | |
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes (in shares) | 268 | |||
Net income and comprehensive income | 83,441 | 83,441 | ||
Balance at Mar. 31, 2021 | $ 4,769 | 2,732,748 | (380,651) | 2,356,866 |
Balance (shares) at Mar. 31, 2021 | 476,907 | |||
Balance at Dec. 31, 2020 | $ 4,766 | 2,877,612 | (464,092) | 2,418,286 |
Balance (shares) at Dec. 31, 2020 | 476,639 | |||
Net income and comprehensive income | 252,991 | |||
Balance at Sep. 30, 2021 | $ 4,775 | 2,518,919 | (211,101) | 2,312,593 |
Balance (shares) at Sep. 30, 2021 | 477,460 | |||
Balance at Mar. 31, 2021 | $ 4,769 | 2,732,748 | (380,651) | 2,356,866 |
Balance (shares) at Mar. 31, 2021 | 476,907 | |||
Dividends to stockholders | (108,936) | (108,936) | ||
Equity-based compensation | 3,059 | 3,059 | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes | $ 5 | (2,781) | (2,776) | |
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes (in shares) | 451 | |||
Net income and comprehensive income | 80,223 | 80,223 | ||
Balance at Jun. 30, 2021 | $ 4,774 | 2,624,090 | (300,428) | 2,328,436 |
Balance (shares) at Jun. 30, 2021 | 477,358 | |||
Dividends to stockholders | (107,857) | (107,857) | ||
Equity-based compensation | 3,255 | 3,255 | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes | $ 1 | (569) | (568) | |
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes (in shares) | 102 | |||
Net income and comprehensive income | 89,327 | 89,327 | ||
Balance at Sep. 30, 2021 | $ 4,775 | 2,518,919 | (211,101) | 2,312,593 |
Balance (shares) at Sep. 30, 2021 | 477,460 | |||
Balance at Dec. 31, 2021 | $ 4,775 | 2,414,398 | (132,475) | $ 2,286,698 |
Balance (shares) at Dec. 31, 2021 | 477,495 | 477,495 | ||
Dividends to stockholders | (108,287) | $ (108,287) | ||
Equity-based compensation | 2,832 | 2,832 | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes | $ 2 | (1,331) | (1,329) | |
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes (in shares) | 188 | |||
Net income and comprehensive income | 80,040 | 80,040 | ||
Balance at Mar. 31, 2022 | $ 4,777 | 2,307,612 | (52,435) | 2,259,954 |
Balance (shares) at Mar. 31, 2022 | 477,683 | |||
Balance at Dec. 31, 2021 | $ 4,775 | 2,414,398 | (132,475) | $ 2,286,698 |
Balance (shares) at Dec. 31, 2021 | 477,495 | 477,495 | ||
Net income and comprehensive income | $ 243,449 | |||
Balance at Sep. 30, 2022 | $ 4,784 | 2,123,057 | 84,014 | $ 2,211,855 |
Balance (shares) at Sep. 30, 2022 | 478,462 | 478,462 | ||
Balance at Mar. 31, 2022 | $ 4,777 | 2,307,612 | (52,435) | $ 2,259,954 |
Balance (shares) at Mar. 31, 2022 | 477,683 | |||
Dividends to stockholders | (109,433) | (109,433) | ||
Equity-based compensation | 5,641 | 5,641 | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes | $ 7 | (5,445) | (5,438) | |
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes (in shares) | 754 | |||
Net income and comprehensive income | 79,395 | 79,395 | ||
Balance at Jun. 30, 2022 | $ 4,784 | 2,198,375 | 26,960 | 2,230,119 |
Balance (shares) at Jun. 30, 2022 | 478,437 | |||
Dividends to stockholders | (80,853) | (26,960) | (107,813) | |
Equity-based compensation | 5,553 | 5,553 | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes | (18) | (18) | ||
Issuance of common stock upon vesting of equity-based compensation awards, net of common stock withheld for income taxes (in shares) | 25 | |||
Net income and comprehensive income | 84,014 | 84,014 | ||
Balance at Sep. 30, 2022 | $ 4,784 | $ 2,123,057 | $ 84,014 | $ 2,211,855 |
Balance (shares) at Sep. 30, 2022 | 478,462 | 478,462 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 243,449 | $ 252,991 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 98,181 | 80,956 |
Accretion of asset retirement obligations | 178 | 347 |
Impairment | 3,702 | 1,582 |
Deferred income tax expense | 84,798 | 88,547 |
Equity-based compensation | 14,026 | 10,326 |
Equity in earnings of unconsolidated affiliates | (70,467) | (66,347) |
Distributions from unconsolidated affiliates | 90,470 | 87,115 |
Amortization of customer relationships | 53,004 | 53,004 |
Amortization of deferred financing costs | 4,268 | 4,152 |
Settlement of asset retirement obligations | (1,395) | (814) |
Loss on settlement of asset retirement obligations | 539 | |
Loss (gain) on asset sale | (2,242) | 3,628 |
Loss on early extinguishment of debt | 20,701 | |
Changes in assets and liabilities: | ||
Accounts receivable-Antero Resources | 5,596 | (11,429) |
Accounts receivable-third party | (822) | 594 |
Income tax receivable | 16,311 | |
Other current assets | 242 | 810 |
Accounts payable-Antero Resources | (2,006) | (705) |
Accounts payable-third party | 12,228 | 11,058 |
Accrued liabilities | (2,773) | (7,337) |
Net cash provided by operating activities | 530,976 | 545,490 |
Cash flows provided by (used in) investing activities: | ||
Investments in unconsolidated affiliates | (2,070) | |
Return of investment in unconsolidated affiliate | 17,000 | |
Cash received in asset sale | 4,026 | 1,653 |
Change in other assets | (24) | |
Change in other liabilities | (804) | |
Net cash used in investing activities | (215,956) | (157,365) |
Cash flows provided by (used in) financing activities: | ||
Dividends to stockholders | (325,120) | (363,712) |
Dividends to preferred stockholders | (413) | (413) |
Issuance of senior notes | 750,000 | |
Redemption of senior notes | (667,472) | |
Payments of deferred financing costs | (302) | (9,449) |
Borrowings (repayments) on bank credit facilities, net | 17,600 | (92,800) |
Employee tax withholding for settlement of equity compensation awards | (6,785) | (4,885) |
Other | (34) | |
Net cash used in financing activities | (315,020) | (388,765) |
Net decrease in cash and cash equivalents | (640) | |
Cash and cash equivalents, beginning of period | 640 | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 130,236 | 132,360 |
Cash received during the period for income taxes | 16,913 | |
Increase in accrued capital expenditures and accounts payable for property and equipment | (17,130) | 22,675 |
Gathering systems and facilities | ||
Cash flows provided by (used in) investing activities: | ||
Additions | (190,407) | (120,727) |
Water handling systems | ||
Cash flows provided by (used in) investing activities: | ||
Additions | $ (45,747) | $ (36,221) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization | |
Organization | (1 ) Organization Antero Midstream Corporation (together with its consolidated subsidiaries, “Antero Midstream,” “AM” or the “Company”) is a growth-oriented midstream company formed to own, operate and develop midstream energy infrastructure primarily to service Antero Resources Corporation (“Antero Resources”) and its production and completion activity in the Appalachian Basin. The Company’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts. The Company’s corporate headquarters is located in Denver, Colorado. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Basis of Presentation These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2021 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position, and accounting policies. The Company’s December 31, 2021 consolidated financial statements were included in the Company’s 2021 Annual Report on Form 10-K, which was filed with the SEC. These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2021 and September 30, 2022, the results of the Company’s operations for the three and nine months ended September 30, 2021 and 2022, and the Company’s cash flows for the nine months ended September 30, 2021 and 2022. The Company has no items of other comprehensive income; therefore, net income is equal to comprehensive income. Certain costs of doing business incurred and charged to the Company by Antero Resources have been reflected in the accompanying unaudited condensed consolidated financial statements. These costs include general and administrative expenses provided to the Company by Antero Resources in exchange for: ● business services, such as payroll, accounts payable and facilities management; ● corporate services, such as finance and accounting, legal, human resources, investor relations and public and regulatory policy; and ● employee compensation, including equity-based compensation. Transactions between the Company and Antero Resources have been identified in the unaudited condensed consolidated financial statements (see Note 4—Transactions with Affiliates). (b) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Midstream Corporation and its consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements. (c) Dividends Preferred and common dividends declared are recorded as a reduction of retained earnings to the extent that retained earnings were available at the close of the quarter prior to the dividend declaration date, with any excess recorded as a reduction of additional paid-in capital. (d) Recently Adopted Accounting Standard In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 consolidated financial statements |
Intangibles
Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
Intangibles | |
Intangibles | (3) Intangibles All customer relationships are subject to amortization and are amortized over a weighted average period of 19 years, which reflects the remaining economic life of the relationships as of September 30, 2022. Customer relationships as of December 31, 2021 $ 1,356,775 Amortization of customer relationships (53,004) Customer relationships as of September 30, 2022 $ 1,303,771 Future amortization expense is as follows (in thousands): Remainder of year ending December 31, 2022 $ 17,668 Year ending December 31, 2023 70,672 Year ending December 31, 2024 70,672 Year ending December 31, 2025 70,672 Year ending December 31, 2026 70,672 Thereafter 1,003,415 Total $ 1,303,771 |
Transactions with Affiliates
Transactions with Affiliates | 9 Months Ended |
Sep. 30, 2022 | |
Transactions with Affiliates | |
Transactions with Affiliates | (4) Transactions with Affiliates (a) Revenues Substantially all revenues earned in the three and nine months ended September 30, 2021 and 2022 were earned from Antero Resources, under various agreements for gathering and compression and water handling services. Revenues earned from gathering and compression services consists of lease income. (b) Accounts receivable—Antero Resources and Accounts payable—Antero Resources Accounts receivable—Antero Resources represents amounts due from Antero Resources, primarily related to gathering and compression services and water handling services. Accounts payable—Antero Resources represents amounts due to Antero Resources for general and administrative and other costs. (c) Allocation of Costs Charged by Antero Resources The employees supporting the Company’s operations are concurrently employed by Antero Resources and the Company. Direct operating expense includes costs charged to the Company of $2 million and $3 million during the three months ended September 30, 2021 and 2022, respectively, and $7 million and $10 million during the nine months ended September 30, 2021 and 2022, respectively. These costs were for services provided by employees associated with the operation of the Company’s gathering lines, compressor stations, and water handling assets. General and administrative expense includes costs charged to the Company by Antero Resources of including certain equity-based compensation. These expenses are charged to the Company based on the nature of the expenses and are apportioned based on a combination of the Company’s proportionate share of gross property and equipment, capital expenditures and labor costs, as applicable. The Company reimburses Antero Resources directly for all general and administrative costs charged to it, except costs attributable to noncash equity-based compensation. For further information on equity-based compensation, see Note 9—Equity-Based Compensation and Cash Awards. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue | |
Revenue | (5) Revenue All of the Company’s gathering and compression revenues are derived from an operating lease agreement, and all of the Company’s water handling revenues are derived from service contracts with customers. The Company currently earns substantially all of its revenues from Antero Resources. (a) Gathering and Compression Pursuant to the gathering and compression agreement with Antero Resources, Antero Resources has dedicated substantially all of its current and future acreage in West Virginia, Ohio and Pennsylvania to the Company for gathering and compression services except for acreage subject to third-party commitments or pre-existing dedications. The Company also has an option to gather and compress natural gas produced by Antero Resources on any additional acreage it acquires In December 2019, the Company and Antero Resources 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 Antero Resources achieves certain quarterly volumetric targets during such time. Antero Resources did 30, 2021 since Antero Resources did not achieve any volumetric targets during the first, second and third quarters of 2021. For the three and nine months ended September 30, 2022, Antero Resources earned rebates of $ million, respectively, from the Company by achieving the first level volumetric target during the first, second and third quarters of 2022. 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 Resources on or before the th Under the gathering and compression agreement, the Company receives a low pressure gathering fee, a high pressure gathering fee and a compression fee, in each case subject to annual Consumer Price Index (“CPI”)-based adjustments, or a cost of service fee, at the Company’s election when such assets are placed in-service. In addition, the agreement stipulates that the Company receives a reimbursement for the actual cost of (i) electricity used at its compressor stations where the compression services are provided based on a compression fee and (ii) operating expenses for all services provided for a cost of service fee. The Company determined that the gathering and compression agreement is an operating lease as Antero Resources obtains substantially all of the economic benefit of the asset and has the right to direct the use of the asset. The gathering system is an identifiable asset within the gathering and compression agreement, and it consists of The gathering system is considered a single lease due to the interrelated network of the assets. When a modification to the gathering and compression agreement occurs, the Company reassesses the classification of this lease. The Company accounts for its lease and non-lease components as a single lease component as the lease component is the predominant component. The non-lease components consist of operating, oversight and maintenance of the gathering system, which are performed on time-elapsed measures. The gathering and compression agreement includes certain fixed fee provisions. If and to the extent Antero Resources requests that the Company construct new low pressure lines, high pressure lines and/or compressor stations, the gathering and compression agreement contains options at the Company’s election for either (i) minimum volume commitments that , which election is made individually for each piece of equipment placed in service. All lease payments under the minimum volume commitments and cost of service fees are considered to be in-substance fixed lease payments under the gathering and compression agreement. The Company recognizes lease income from its minimum volume commitments and cost of service fees under its gathering and compression agreement on a straight-line basis. Additional variable operating lease income is earned when volumes in excess of the minimum commitments are delivered under the contract. The Company recognizes variable lease income when low pressure volumes are delivered to a compressor station, compression volumes are delivered to a high pressure line and high pressure are delivered to a processing plant or transmission pipeline. Minimum volume commitments for high pressure gathering capacity and compression capacity are aggregated such that there is a single minimum volume commitment for the respective service each year. The Company invoices the customer the month after each service is performed, and payment is due in the same month. Minimum future lease cash flows to be received by the Company under the gathering and compression agreement as of September 30, 2022 are as follows (in thousands): Remainder of year ending December 31, 2022 $ 45,492 Year ending December 31, 2023 298,655 Year ending December 31, 2024 299,473 Year ending December 31, 2025 285,175 Year ending December 31, 2026 271,762 Thereafter 562,414 Total $ 1,762,971 (b) Water Handling The Company is party to a water services agreement with Antero Resources, whereby the Company provides certain water handling services to Antero Resources within an area of dedication in defined service areas in West Virginia and Ohio. The initial term of the water services agreement runs to 2035. Upon completion of the initial term in 2035, the water services 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 Resources on or before the th day prior to the anniversary of such effective date. Under the agreement, the Company receives a fixed fee for fresh water deliveries by pipeline directly to the well site, subject to annual CPI-based adjustments. In addition, the Company also provides other fluid handling services. These operations, along with the Company’s fresh water delivery systems, support well completion and production operations for Antero Resources. These services are provided by the Company directly or through third-parties with which the Company contracts. For these other fluid handling services provided by third-parties, Antero Resources reimburses the Company’s third-party out-of-pocket costs plus . For these other fluid handling services provided by the Company, the Company charges Antero Resources a cost of service fee. The Company satisfies its performance obligations and recognizes revenue when (i) the fresh water volumes have been delivered to the hydration unit of a specified well pad or (ii) other fluid handling services have been completed . The Company invoices the customer the month after water services are performed, and payment is due in the same month. For services contracted through third-party providers, the Company’s performance obligation is satisfied when the service to be performed by the third-party provider has been completed. The Company invoices the customer after the third-party provider billing is received, and payment is due in the same month. Transaction Price Allocated to Remaining Performance Obligations The Company’s water service agreement with Antero Resources has a term greater than one year. The Company is not required to disclose 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 service 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. The remainder of the Company’s water service contracts, which relate to contracts with third parties, are short-term in nature with a contract term of one year or less. Accordingly, the Company is exempt from 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 Contract Balances Under the Company’s water service contracts, the Company invoices customers after the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s water service contracts do not give rise to contract assets or liabilities. (c) Disaggregation of Revenue In the following table, revenue is disaggregated by type of service and type of fee and is identified by the reportable segment to which such revenues relate. For more information on reportable segments, see Note 14—Reportable Segments. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2022 2021 2022 Reportable Segment Type of service Gathering—low pressure $ 87,139 92,091 265,206 273,188 Gathering and Processing (1) Gathering—low pressure rebate — (12,000) — (36,000) Gathering and Processing (1) Compression 49,765 52,364 147,273 155,462 Gathering and Processing (1) Gathering—high pressure 51,812 53,185 154,065 159,504 Gathering and Processing (1) Fresh water delivery 33,004 38,445 108,113 111,609 Water Handling Other fluid handling 20,752 24,617 60,059 67,673 Water Handling Amortization of customer relationships (9,271) (9,271) (27,813) (27,814) Gathering and Processing Amortization of customer relationships (8,397) (8,397) (25,191) (25,190) Water Handling Total $ 224,804 231,034 681,712 678,432 Type of contract Per Unit Fixed Fee $ 188,716 197,640 566,544 588,154 Gathering and Processing (1) Gathering—low pressure rebate — (12,000) — (36,000) Gathering and Processing (1) Per Unit Fixed Fee 33,004 38,921 108,113 112,722 Water Handling Cost plus 3% 16,952 19,346 48,727 51,384 Water Handling Cost of service fee 3,800 4,795 11,332 15,176 Water Handling Amortization of customer relationships (9,271) (9,271) (27,813) (27,814) Gathering and Processing Amortization of customer relationships (8,397) (8,397) (25,191) (25,190) Water Handling Total $ 224,804 231,034 681,712 678,432 (1) Revenue related to the gathering and processing segment is classified as lease income related to the gathering system. The Company’s receivables from its contracts with customers and operating leases as of December 31, 2021 and September 30, 2022, were $81 million and $79 million, respectively . |
Lessor, Operating Leases | (5) Revenue All of the Company’s gathering and compression revenues are derived from an operating lease agreement, and all of the Company’s water handling revenues are derived from service contracts with customers. The Company currently earns substantially all of its revenues from Antero Resources. (a) Gathering and Compression Pursuant to the gathering and compression agreement with Antero Resources, Antero Resources has dedicated substantially all of its current and future acreage in West Virginia, Ohio and Pennsylvania to the Company for gathering and compression services except for acreage subject to third-party commitments or pre-existing dedications. The Company also has an option to gather and compress natural gas produced by Antero Resources on any additional acreage it acquires In December 2019, the Company and Antero Resources 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 Antero Resources achieves certain quarterly volumetric targets during such time. Antero Resources did 30, 2021 since Antero Resources did not achieve any volumetric targets during the first, second and third quarters of 2021. For the three and nine months ended September 30, 2022, Antero Resources earned rebates of $ million, respectively, from the Company by achieving the first level volumetric target during the first, second and third quarters of 2022. 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 Resources on or before the th Under the gathering and compression agreement, the Company receives a low pressure gathering fee, a high pressure gathering fee and a compression fee, in each case subject to annual Consumer Price Index (“CPI”)-based adjustments, or a cost of service fee, at the Company’s election when such assets are placed in-service. In addition, the agreement stipulates that the Company receives a reimbursement for the actual cost of (i) electricity used at its compressor stations where the compression services are provided based on a compression fee and (ii) operating expenses for all services provided for a cost of service fee. The Company determined that the gathering and compression agreement is an operating lease as Antero Resources obtains substantially all of the economic benefit of the asset and has the right to direct the use of the asset. The gathering system is an identifiable asset within the gathering and compression agreement, and it consists of The gathering system is considered a single lease due to the interrelated network of the assets. When a modification to the gathering and compression agreement occurs, the Company reassesses the classification of this lease. The Company accounts for its lease and non-lease components as a single lease component as the lease component is the predominant component. The non-lease components consist of operating, oversight and maintenance of the gathering system, which are performed on time-elapsed measures. The gathering and compression agreement includes certain fixed fee provisions. If and to the extent Antero Resources requests that the Company construct new low pressure lines, high pressure lines and/or compressor stations, the gathering and compression agreement contains options at the Company’s election for either (i) minimum volume commitments that , which election is made individually for each piece of equipment placed in service. All lease payments under the minimum volume commitments and cost of service fees are considered to be in-substance fixed lease payments under the gathering and compression agreement. The Company recognizes lease income from its minimum volume commitments and cost of service fees under its gathering and compression agreement on a straight-line basis. Additional variable operating lease income is earned when volumes in excess of the minimum commitments are delivered under the contract. The Company recognizes variable lease income when low pressure volumes are delivered to a compressor station, compression volumes are delivered to a high pressure line and high pressure are delivered to a processing plant or transmission pipeline. Minimum volume commitments for high pressure gathering capacity and compression capacity are aggregated such that there is a single minimum volume commitment for the respective service each year. The Company invoices the customer the month after each service is performed, and payment is due in the same month. Minimum future lease cash flows to be received by the Company under the gathering and compression agreement as of September 30, 2022 are as follows (in thousands): Remainder of year ending December 31, 2022 $ 45,492 Year ending December 31, 2023 298,655 Year ending December 31, 2024 299,473 Year ending December 31, 2025 285,175 Year ending December 31, 2026 271,762 Thereafter 562,414 Total $ 1,762,971 (b) Water Handling The Company is party to a water services agreement with Antero Resources, whereby the Company provides certain water handling services to Antero Resources within an area of dedication in defined service areas in West Virginia and Ohio. The initial term of the water services agreement runs to 2035. Upon completion of the initial term in 2035, the water services 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 Resources on or before the th day prior to the anniversary of such effective date. Under the agreement, the Company receives a fixed fee for fresh water deliveries by pipeline directly to the well site, subject to annual CPI-based adjustments. In addition, the Company also provides other fluid handling services. These operations, along with the Company’s fresh water delivery systems, support well completion and production operations for Antero Resources. These services are provided by the Company directly or through third-parties with which the Company contracts. For these other fluid handling services provided by third-parties, Antero Resources reimburses the Company’s third-party out-of-pocket costs plus . For these other fluid handling services provided by the Company, the Company charges Antero Resources a cost of service fee. The Company satisfies its performance obligations and recognizes revenue when (i) the fresh water volumes have been delivered to the hydration unit of a specified well pad or (ii) other fluid handling services have been completed . The Company invoices the customer the month after water services are performed, and payment is due in the same month. For services contracted through third-party providers, the Company’s performance obligation is satisfied when the service to be performed by the third-party provider has been completed. The Company invoices the customer after the third-party provider billing is received, and payment is due in the same month. Transaction Price Allocated to Remaining Performance Obligations The Company’s water service agreement with Antero Resources has a term greater than one year. The Company is not required to disclose 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 service 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. The remainder of the Company’s water service contracts, which relate to contracts with third parties, are short-term in nature with a contract term of one year or less. Accordingly, the Company is exempt from 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 Contract Balances Under the Company’s water service contracts, the Company invoices customers after the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s water service contracts do not give rise to contract assets or liabilities. (c) Disaggregation of Revenue In the following table, revenue is disaggregated by type of service and type of fee and is identified by the reportable segment to which such revenues relate. For more information on reportable segments, see Note 14—Reportable Segments. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2022 2021 2022 Reportable Segment Type of service Gathering—low pressure $ 87,139 92,091 265,206 273,188 Gathering and Processing (1) Gathering—low pressure rebate — (12,000) — (36,000) Gathering and Processing (1) Compression 49,765 52,364 147,273 155,462 Gathering and Processing (1) Gathering—high pressure 51,812 53,185 154,065 159,504 Gathering and Processing (1) Fresh water delivery 33,004 38,445 108,113 111,609 Water Handling Other fluid handling 20,752 24,617 60,059 67,673 Water Handling Amortization of customer relationships (9,271) (9,271) (27,813) (27,814) Gathering and Processing Amortization of customer relationships (8,397) (8,397) (25,191) (25,190) Water Handling Total $ 224,804 231,034 681,712 678,432 Type of contract Per Unit Fixed Fee $ 188,716 197,640 566,544 588,154 Gathering and Processing (1) Gathering—low pressure rebate — (12,000) — (36,000) Gathering and Processing (1) Per Unit Fixed Fee 33,004 38,921 108,113 112,722 Water Handling Cost plus 3% 16,952 19,346 48,727 51,384 Water Handling Cost of service fee 3,800 4,795 11,332 15,176 Water Handling Amortization of customer relationships (9,271) (9,271) (27,813) (27,814) Gathering and Processing Amortization of customer relationships (8,397) (8,397) (25,191) (25,190) Water Handling Total $ 224,804 231,034 681,712 678,432 (1) Revenue related to the gathering and processing segment is classified as lease income related to the gathering system. The Company’s receivables from its contracts with customers and operating leases as of December 31, 2021 and September 30, 2022, were $81 million and $79 million, respectively . |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property and Equipment | |
Property and Equipment | (6) Property and Equipment (a) Summary of Property and Equipment Property and equipment, net consisted of the following items: (Unaudited) Estimated December 31, September 30, (in thousands) Useful Lives 2021 2022 Land n/a $ 23,369 26,682 Gathering systems and facilities 40-50 years (1) 2,817,918 3,052,459 Permanent buried pipelines and equipment 7-20 years 582,481 602,343 Surface pipelines and equipment 1-7 years 54,542 67,520 Heavy trucks and equipment 3-5 years 5,157 5,157 Above ground storage tanks 5-10 years 2,946 2,953 Construction-in-progress n/a 174,271 114,582 Total property and equipment 3,660,684 3,871,696 Less accumulated depreciation (265,938) (363,688) Property and equipment, net $ 3,394,746 3,508,008 (1) Gathering systems and facilities are recognized as a single-leased asset with no residual value. (b) Subsequent Event On October 25, 2022, the Company acquired certain Marcellus gas gathering and compression assets from Crestwood Equity Partners LP (NYSE: CEQP) for $205 million in cash, before closing adjustments, which was funded by borrowings under the Company’s Credit Facility (as defined in Note 7─Long-Term Debt). These assets include |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt. | |
Long-Term Debt | (7) Long-Term Debt Long-term debt consisted of the following items: (Unaudited) December 31, September 30, (in thousands) 2021 2022 Credit Facility (a) $ 547,200 564,800 7.875% senior notes due 2026 (c) 550,000 550,000 5.75% senior notes due 2027 (d) 650,000 650,000 5.75% senior notes due 2028 (e) 650,000 650,000 5.375% senior notes due 2029 (f) 750,000 750,000 Total principal 3,147,200 3,164,800 Unamortized debt premiums 2,106 1,801 Unamortized debt issuance costs (26,396) (23,432) Total long-term debt $ 3,122,910 3,143,169 (a) Credit Facility Antero Midstream Partners LP (“Antero Midstream Partners”), an indirect, wholly owned subsidiary of Antero Midstream Corporation, as borrower (the “Borrower”), has a senior secured revolving credit facility with a consortium of banks. On October 26, 2021, the Company entered into an amended and restated senior secured revolving credit facility (the “Credit Facility”). As of December 31, 2021 and September 30, 2022, the Credit Facility had lender commitments of 2026; provided that if on November 17, 2025 any of the 2026 Notes (as defined below) are outstanding, the Credit Facility will mature on such date. As of September 30, 2022, the Credit Facility had an available borrowing capacity of $685 million. The Credit Facility contains certain covenants including restrictions on indebtedness, and requirements with respect to leverage and interest coverage ratios. The Credit Facility permits distributions to the holders of the Borrower’s equity interests in accordance with the cash distribution policy, provided that no event of default exists or would be caused thereby, and only to the extent permitted by the Borrower’s organizational documents. The Borrower was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2021 and September 30, 2022. The senior secured revolving credit facility agreement in effect prior to October 26, 2021 provided for borrowing under either the Base Rate or the Eurodollar Rate (as each term is defined in the agreement), and the Credit Facility provides for borrowing under either Adjusted Term Secured Overnight Financing Rate (“SOFR”) or the Base Rate (as each term is defined in the Credit Facility). Principal amounts borrowed are payable on the maturity date with such borrowings bearing interest that is payable with respect to (i) base rate loans, quarterly and (ii) SOFR Loans at the end of the applicable interest period if three months (or shorter, if applicable), or every three months if the applicable interest period is longer than three months. Interest was payable at a variable rate based on LIBOR or the base rate, determined by election at the time of borrowing, plus an applicable margin rate under the senior secured revolving credit facility agreement in effect prior to October 26, 2021. Interest is payable at a variable rate based on SOFR or the base rate, determined by election at the time of borrowing, plus an applicable margin rate under the Credit Facility. Interest at the time of borrowing is determined with reference to the Borrower’s 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 As of December 31, 2021, the Borrower had outstanding borrowings under the Credit Facility of $547 million with a weighted average interest rate of 1.81 %. As of September 30, 2022, the Borrower had outstanding borrowings under the Credit Facility of million with a weighted average interest rate of %. (b) 5.375% Senior Notes Due 2024 On September 13, 2016, Antero Midstream Partners and its wholly owned subsidiary, Antero Midstream Finance Corporation (“Finance Corp” and together with Antero Midstream Partners, the “Issuers”), issued $650 million in aggregate principal amount of 5.375% senior notes due September 15, 2024 (the “2024 Notes”) at par. The 2024 Notes were recorded at their fair value of million was amortized into interest expense over the life of the 2024 Notes. The Issuers redeemed all (c) 7.875% Senior Notes Due 2026 On November 10, 2020, the Issuers issued $550 million in aggregate principal amount of 7.875% senior notes due May 15, 2026 (the “2026 Notes”) at par. 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 are fully and unconditionally guaranteed on a joint and several senior unsecured basis by Antero Midstream Corporation, Antero Midstream Partners’ wholly owned subsidiaries (other than Finance Corp) and certain of its future restricted subsidiaries. Interest on the 2026 Notes is payable on May 15 and November 15 of each year. Antero Midstream Partners may redeem all or part of the 2026 Notes at any time on or after May 15, 2023 at redemption prices ranging from on or after May 15, 2025. In addition, prior to May 15, 2023, Antero Midstream Partners may redeem up to of the principal amount of the 2026 Notes, plus accrued and unpaid interest. At any time prior to May 15, 2023, Antero Midstream Partners 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 Midstream Partners undergoes a change of control followed by a rating decline, the holders of the 2026 Notes will have the right to require Antero Midstream Partners to repurchase all or a portion of the 2026 Notes at a price equal to (d) 5.75% Senior Notes Due 2027 On February 25, 2019, the Issuers issued $650 million in aggregate principal amount of 5.75% senior notes due March 1, 2027 (the “2027 Notes”) at par. The 2027 Notes were recorded at their fair value of $653.3 million as of March 12, 2019, and the related premium of $3.3 million will be amortized into interest expense over the life of the 2027 Notes. The 2027 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2027 Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by Antero Midstream Corporation, Antero Midstream Partners’ wholly owned subsidiaries (other than Finance Corp) and certain of its future restricted subsidiaries. Interest on the 2027 Notes is payable on March 1 and September 1 of each year. Antero Midstream Partners may redeem all or part of the 2027 Notes at any time on or after March 1, 2022 at redemption prices ranging from 102.875% currently to 100.00% on or after March 1, 2025. If Antero Midstream Partners undergoes a change of control followed by a rating decline, the holders of the 2027 Notes will have the right to require Antero Midstream Partners to repurchase all or a portion of the 2027 Notes at a price equal to 101% of the principal amount of the 2027 Notes, plus accrued and unpaid interest. (e) 5.75% Senior Notes Due 2028 On June 28, 2019, the Issuers issued $650 million in aggregate principal amount of 5.75% senior notes due January 15, 2028 (the “2028 Notes”) at par. The 2028 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2028 Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by Antero Midstream Corporation, Antero Midstream Partners’ wholly owned subsidiaries (other than Finance Corp) and certain of its future restricted subsidiaries. Interest on the 2028 Notes is payable on January 15 and July 15 of each year. Antero Midstream Partners may redeem all or part of the 2028 Notes at any time on or after January 15, 2023 at redemption prices ranging from 102.875% on or after January 15, 2023 to 100.00% on or after January 15, 2026. In addition, prior to January 15, 2023, Antero Midstream Partners may redeem up to 35% of the aggregate principal amount of the 2028 Notes with an amount of cash not greater than the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 105.75% of the principal amount of the 2028 Notes, plus accrued and unpaid interest. At any time prior to January 15, 2023, Antero Midstream Partners may also redeem the 2028 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2028 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Midstream Partners undergoes a change of control followed by a rating decline, the holders of the 2028 Notes will have the right to require Antero Midstream Partners to repurchase all or a portion of the 2028 Notes at a price equal to 101% of the principal amount of the 2028 Notes, plus accrued and unpaid interest. (f) 5.375% Senior Notes Due 2029 On June 8, 2021, the Issuers issued $750 million in aggregate principal amount of 5.375% senior notes due June 15, 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 are fully and unconditionally guaranteed on a joint and several senior unsecured basis by Antero Midstream Corporation, Antero Midstream Partners’ wholly owned subsidiaries (other than Finance Corp) and certain of its future restricted subsidiaries. Interest on the 2029 Notes is payable on June 15 and December 15 of each year. Antero Midstream Partners may redeem all or part of the 2029 Notes at any time on or after June 15, 2024 at redemption prices ranging from on or after June 15, 2026. In addition, prior to June 15, 2024, Antero Midstream Partners may redeem up to of the principal amount of the 2029 Notes, plus accrued and unpaid interest. At any time prior to June 15, 2024, Antero Midstream Partners 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 Midstream Partners undergoes a change of control followed by a rating decline, the holders of the 2029 Notes will have the right to require Antero Midstream Partners to repurchase all or a portion of the 2029 Notes at a price equal to (g) Senior Notes Guarantors The Company and each of the Company’s wholly owned subsidiaries (except for the Issuers) has fully and unconditionally guaranteed the 2024 Notes, 2026 Notes, 2027 Notes, 2028 Notes and 2029 Notes (collectively the “Senior Notes”). In the event a 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 Restricted Subsidiary (as defined in the applicable indenture governing the series of Senior Notes) of the Issuer or the sale of all or substantially all of its assets) and whether or not the guarantor is the surviving entity in such transaction to a person that is not an Issuer or a Restricted Subsidiary of an Issuer, such guarantor will be released from its obligations under its guarantee if the sale or other disposition does not violate the covenants set forth in the indentures governing the applicable Senior Notes. In addition, a guarantor will be released from its obligations under the applicable indenture and its guarantee, upon the release or discharge of the guarantee of other indebtedness under a credit facility that resulted in the creation of such guarantee, except a release or discharge by or as a result of payment under such guarantee; if the Issuers designate such subsidiary as an unrestricted subsidiary and such designation complies with the other applicable provisions of the indenture governing the applicable Senior Notes or in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the applicable Senior Notes. During the three and nine months ended September 30, 2021 and 2022, all of the Company’s assets and operations are attributable to the Issuers and its guarantors. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities | |
Accrued Liabilities | (8) Accrued Liabilities Accrued liabilities consisted of the following items: (Unaudited) December 31, September 30, (in thousands) 2021 2022 Capital expenditures $ 24,900 19,465 Operating expenses 10,417 8,716 Interest expense 36,794 39,831 Ad valorem taxes 5,400 2,265 Other 3,327 2,675 Total accrued liabilities $ 80,838 72,952 |
Equity-Based Compensation and C
Equity-Based Compensation and Cash Awards | 9 Months Ended |
Sep. 30, 2022 | |
Equity-Based Compensation and Cash Awards | |
Equity-Based Compensation and Cash Awards | (9) Equity-Based Compensation and Cash Awards (a) Summary of Equity-Based Compensation The Company’s equity-based compensation includes (i) costs allocated to Antero Midstream by Antero Resources for grants made prior to March 12, 2019 pursuant to the Antero Resources Corporation Long-Term Incentive Plan (the “AR LTIP”) and (ii) costs related to the Antero Midstream Corporation Long-Term Incentive Plan (the “AM LTIP”). Antero Midstream’s equity-based compensation expense is included in general and administrative expenses, and recorded as a credit to the applicable classes of equity. AR LTIP Equity-based compensation expense allocated to Antero Midstream from Antero Resources was $0.3 million and $0.1 million for the three months ended September 30, 2021 and 2022, respectively, and $1.8 million and $0.4 million for the nine months ended September 30, 2021 and 2022, respectively, which includes expense related to the Converted AM RSU Awards (as defined below). For grants made prior to March 12, 2019, Antero Resources has total unamortized expense related to its various equity-based compensation plans that can be allocated to the Company of less than 30, 2022, which includes the Converted AM RSU Awards (as defined below). A portion of this unamortized cost will be allocated to Antero Midstream as it is amortized over the remaining service period of the related awards. The Company does not reimburse Antero Resources for noncash equity compensation allocated to it for awards issued under the AR LTIP. AM LTIP The Company is authorized to grant up to 15,398,901 shares of AM common stock to employees and directors under the AM LTIP. The AM LTIP provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), dividend equivalents, other stock-based awards, cash awards and substitute awards. The terms and conditions of the awards granted are established by the compensation committee of the Board of Directors (the “Board”). As of September 30, 2022, a total of The Company’s equity-based compensation expense, by type of award, is as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2022 2021 2022 Restricted stock units (1) $ 2,905 4,525 8,608 11,438 Performance share units (1) 123 833 1,036 1,938 Equity awards issued to directors 227 195 682 650 Total expense $ 3,255 5,553 10,326 14,026 (1) Amounts include equity-based compensation expense allocated to the Company by Antero Resources. (b) Restricted Stock Unit Awards As of March 19, 2019, each of the unvested outstanding phantom units granted under the Antero Midstream Partners Long Term Incentive Plan was assumed by the Company and converted into 1.8926 RSUs under the AM LTIP representing a right to receive shares of the Company’s common stock for each converted phantom unit (all such RSUs, the “Converted AM RSU Awards”). The Converted AM RSU Awards are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Therefore, the expense related to the Converted AM RSU Awards is subject to allocation by Antero Resources. A summary of the RSU awards activity, which includes the Converted AM RSU Awards, is as follows: Weighted Average Number Grant Date of Units Fair Value Total AM LTIP RSUs awarded and unvested—December 31, 2021 3,573,377 $ 8.11 Granted 2,750,896 11.28 Vested (1,243,878) 8.40 Forfeited (159,119) 9.37 Total AM LTIP RSUs awarded and unvested—September 30, 2022 4,921,276 $ 9.77 As of September 30, 2022, unamortized expense of $39.2 million related to the unvested RSUs, which includes less than $0.1 million related to the Converted AM RSU Awards, is expected to be recognized over a weighted average period of approximately 2.4 years. The Company’s proportionate share of the Converted AM RSU Awards will be allocated to it as it is recognized. (c) Performance Share Unit Awards 2019 Performance Share Unit Awards In 2019, the Company granted performance share units (“PSUs”) to certain of its employees and executive officers that vest based on the Company’s actual return on invested capital (“ROIC”) (as defined in the award agreement) over a three-year period as compared to a targeted ROIC (“2019 ROIC PSUs”). The number of shares of the Company’s common stock that could be earned with respect to the 2019 ROIC PSUs ranged from of the target number of 2019 ROIC PSUs originally granted. During the second quarter of 2022, the performance condition for the 2019 ROIC PSUs was met at shares of the Company’s common stock. As of September 30, 2022, there were 2022 Performance Share Unit Awards In April 2022, the Company granted PSUs to certain of its executive officers that vest based on the Company’s actual ROIC (as defined in the award agreement) over a three-year period concluding on December 31, 2024 as compared to a targeted ROIC (“2022 ROIC PSUs”). The number of shares of the Company’s common stock that can be earned with respect to the 2022 ROIC PSUs ranges from of the target number of 2022 ROIC PSUs originally granted. The grant date fair value of these awards was based on the closing price of the Company’s common stock on the date of the grant, assuming target achievement of the performance condition. Expense related to the 2022 ROIC PSUs is recognized based on the number of shares of the Company’s common stock that are expected to be issued at the end of the measurement period, and such expense is reversed if the likelihood of achieving the performance condition decreases. The likelihood of achieving the performance conditions related to 2022 ROIC PSU awards was probable as of September 30, 2022. Summary Information for Performance Share Unit Awards A summary of the PSU awards activity is as follows: Weighted Average Number Grant Date of Units Fair Value Total AM LTIP PSUs awarded and unvested—December 31, 2021 116,526 $ 6.32 Granted 461,121 11.05 Vested (1) (137,712) 6.32 Forfeited — — Total AM LTIP PSUs awarded and unvested—September 30, 2022 439,935 $ 11.28 (1) The performance condition for these vested PSUs was met at 200% of target and as such, they converted into 275,424 shares of the Company’s common stock during the second quarter of 2022. As of September 30, 2022, unamortized expense of $8.4 million related to unvested PSUs is expected to be recognized over a weighted average period of approximately 2.5 years. (d) Cash Awards In January 2020, the Company granted cash awards of $2.2 million to certain executives under the AM LTIP that vest ratably over a period of up to three years . In July 2020, the Company granted additional cash awards of . The compensation expense for these awards is recognized ratably over the applicable vesting period. As of December 31, 2021 and September 30, 2022, the Company has recorded |
Cash Dividends
Cash Dividends | 9 Months Ended |
Sep. 30, 2022 | |
Cash Dividends | |
Cash Dividends | (10) Cash Dividends The Company paid cash dividends for the quarter indicated as follows (in thousands, except per share data): Dividends Period Record Date Dividend Date Dividends per Share Q4 2020 February 3, 2021 February 11, 2021 $ 147,194 $ 0.3075 * February 16, 2021 February 16, 2021 138 * Q1 2021 April 28, 2021 May 12, 2021 108,799 0.2250 * May 17, 2021 May 17, 2021 137 * Q2 2021 July 28, 2021 August 11, 2021 107,719 0.2250 * August 16, 2021 August 16, 2021 138 * Q3 2021 October 27, 2021 November 10, 2021 107,459 0.2250 * November 15, 2021 November 15, 2021 137 * Total 2021 $ 471,721 Q4 2021 January 26, 2022 February 9, 2022 $ 108,149 $ 0.2250 * February 14, 2022 February 14, 2022 138 * Q1 2022 April 27, 2022 May 11, 2022 109,296 0.2250 * May 16, 2022 May 16, 2022 137 * Q2 2022 July 27, 2022 August 10, 2022 107,675 0.2250 * August 15, 2022 August 15, 2022 138 * Total 2022 $ 325,533 * Dividends are paid in accordance with the terms of the Series A Preferred Stock (as defined below) as discussed in Note 11—Equity and Earnings Per Common Share . On October 12, 2022, the Board announced the declaration of a cash dividend on the shares of AM common stock of $0.2250 per share for the quarter ended September 30, 2022. The dividend will be payable on November 9, 2022 to stockholders of record as of October 26, 2022. The Board also declared a cash dividend of $138 thousand on the shares of Series A Preferred Stock of Antero Midstream to be paid on November 14, 2022 in accordance with the terms of the Series A Preferred Stock, which are discussed in Note 11—Equity and Earnings Per Common Share. As of September 30, 2022, there were dividends in the amount of $ thousand accumulated in arrears on the Company’s Series A Preferred Stock. |
Equity and Earnings Per Common
Equity and Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Equity and Earnings Per Common Share | |
Equity and Earnings Per Common Share | (11) Equity and Earnings Per Common Share (a) Preferred Stock The Board authorized 100,000,000 shares of preferred stock on March 12, 2019, and issued 10,000 shares of preferred stock designated as "5.5% Series A Non-Voting Perpetual Preferred Stock" (the "Series A Preferred Stock"), to The Antero Foundation on that date. Dividends on the Series A Preferred Stock are cumulative from the date of original issue and payable in cash on the th on (i) the liquidation preference per share of Series A Preferred Stock (as described below) and (ii) the amount of accrued and unpaid dividends for any prior dividend period on such share of Series A Preferred Stock, if any . At any time following the date of issue, in the event of a change of control, or at any time on or after March 12, 2029, the Company may redeem the Series A Preferred Stock at a price equal to per share, plus any accrued but unpaid dividends, and (ii) the fair market value of the Series A Preferred Stock. On or after March 12, 2029, the holder of each share of Series A Preferred Stock (other than The Antero Foundation) may convert such shares, at any time and from time to time, at the option of the holder into a number of shares of AM common stock equal to the conversion ratio in effect on the applicable conversion date, subject to certain limitations. The Series A Preferred Stock ranks senior to the AM common stock as to dividend rights, as well as with respect to rights upon liquidation, winding-up or dissolution of the Company. Holders of the Series A Preferred Stock do not have any voting rights in the Company, except as required by law, or any preemptive rights. (b) Weighted Average Shares Outstanding The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2022 2021 2022 Basic weighted average number of shares outstanding 477,442 478,460 477,196 478,144 Add: Dilutive effect of RSUs 1,093 769 1,113 1,003 Add: Dilutive effect of PSUs 200 — 232 106 Add: Dilutive effect of Series A Preferred Stock 960 1,089 960 1,089 Diluted weighted average number of shares outstanding 479,695 480,318 479,501 480,342 Weighted average number of outstanding equity awards excluded from calculation of diluted earnings per common share (1): RSUs 235 2,685 283 1,662 PSUs — 880 — 545 (1) The potential dilutive effects of these awards were excluded from the computation of earnings (loss) per common shares—assuming dilution because the inclusion of these awards would have been anti-dilutive. (c) Earnings Per Common Share Earnings per common share—basic for each period is computed by dividing the net income or loss attributable to the Company by the basic weighted average number of shares outstanding during the period. Earnings per common share—assuming dilution for each period is computed after giving consideration to the potential dilution from outstanding equity awards, calculated using the treasury stock method. During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is anti-dilutive. Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share amounts) 2021 2022 2021 2022 Net income $ 89,327 84,014 252,991 243,449 Less preferred stock dividends (138) (138) (413) (413) Net income available to common shareholders $ 89,189 83,876 252,578 243,036 Net income per share–basic $ 0.19 0.18 0.53 0.51 Net income per share–diluted $ 0.19 0.17 0.53 0.51 Weighted average common shares outstanding–basic 477,442 478,460 477,196 478,144 Weighted average common shares outstanding–diluted 479,695 480,318 479,501 480,342 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurement | |
Fair Value Measurement | (12) Fair Value Measurement (a) Senior Unsecured Notes The fair value and carrying value of the Company’s Senior Notes is as follows: (Unaudited) December 31, 2021 September 30, 2022 (in thousands) Fair Value (1) Carrying Value (2) Fair Value (1) Carrying Value (2) 2026 Notes $ 604,450 544,294 551,430 545,128 2027 Notes 672,750 645,970 601,120 646,444 2028 Notes 680,225 643,902 591,500 644,554 2029 Notes 783,750 741,544 657,375 742,243 Total $ 2,741,175 2,575,710 2,401,425 2,578,369 (1) Fair values are based on Level 2 market data inputs. (2) Carrying values are presented net of unamortized debt issuance costs and debt premiums. (b) Other Assets and Liabilities The carrying values of accounts receivable and accounts payable as of December 31, 2021 and September 30, 2022 approximated fair value because of their short-term nature. The carrying value of the amounts under the Credit Facility as of December 31, 2021 and September 30, 2022 approximated fair value because the variable interest rates are reflective of current market conditions. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2022 | |
Investments in Unconsolidated Affiliates | |
Investments in Unconsolidated Affiliates | (13) Investments in Unconsolidated Affiliates The Company has a 15% equity interest in a gathering system of Stonewall Gas Gathering LLC (“Stonewall”), which operates a 67-mile pipeline on which Antero Resources is an anchor shipper. The Company has a 50% equity interest in the joint venture to develop processing and fractionation assets with MarkWest Energy Partners, L.P. (“MarkWest”), a wholly owned subsidiary of MPLX, LP (the “Joint Venture”). The Joint Venture was formed to develop processing and fractionation assets in Appalachia. MarkWest operates the Joint Venture assets, which consist of processing plants in West Virginia and a one The Company’s net income includes its proportionate share of the net income of the Joint Venture and Stonewall. When the Company records its proportionate share of net income, it increases equity income in the unaudited condensed consolidated statements of operations and comprehensive income and the carrying value of that investment on its balance sheet. When distributions on the Company’s proportionate share of net income are received, they are recorded as reductions to the carrying value of the investment on the condensed consolidated balance sheet and are classified as cash inflows from operating activities in accordance with the nature of the distribution approach under FASB ASC Topic 230, Statement of Cash Flows . The Company uses the equity method of accounting to account for its investments in Stonewall and the Joint Venture because it exercises significant influence, but not control, over the entities. The Company’s judgment regarding the level of influence over its equity investments includes considering key factors such as its ownership interest, representation on the applicable Board of Directors and participation in policy-making decisions of Stonewall and the Joint Venture. The following table is a reconciliation of the Company’s investments in these unconsolidated affiliates: Total Investment MarkWest in Unconsolidated (in thousands) Stonewall Joint Venture Affiliates Balance as of December 31, 2021 $ 130,572 565,437 696,009 Equity in earnings of unconsolidated affiliates (1) 5,367 65,100 70,467 Distributions from unconsolidated affiliates (9,000) (81,470) (90,470) Return of investment in unconsolidated affiliate — (17,000) (17,000) Balance as of September 30, 2022 $ 126,939 532,067 659,006 (1) As adjusted for the amortization of the difference between the cost of the equity investments in Stonewall and the Joint Venture and the amount of the underlying equity in the net assets of Stonewall and the Joint Venture as of March 12, 2019. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2022 | |
Reportable Segments | |
Reportable Segments | (14) Reportable Segments (a) Summary of Reportable Segments The Company’s operations, which are located in the United States, are organized into two reportable segments: (i) gathering and processing and (ii) water handling. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income. Interest expense is primarily managed and evaluated on a consolidated basis. Gathering and Processing The gathering and processing segment includes a network of gathering pipelines and compressor stations that collect and process production from Antero Resources’ wells in West Virginia and Ohio. The gathering and processing segment also includes equity in earnings from the Company’s investments in the Joint Venture and Stonewall. Water Handling The Company’s water handling segment includes two independent systems that deliver water from sources including the Ohio River, local reservoirs and several regional waterways. Portions of these water handling systems are also utilized to transport flowback and produced water. The water handling systems consist of permanent buried pipelines, surface pipelines and water storage facilities, as well as pumping stations, blending facilities and impoundments to transport water throughout the systems used to deliver water for Antero Resources’ well completions. (b) Reportable Segments Financial Information The summarized operating results of the Company’s reportable segments are as follows: Three Months Ended September 30, 2021 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 188,716 53,511 — 242,227 Revenue–third-party — 245 — 245 Amortization of customer relationships (9,271) (8,397) — (17,668) Total revenues 179,445 45,359 — 224,804 Operating expenses: Direct operating 16,161 23,338 — 39,499 General and administrative 9,076 4,554 1,180 14,810 Facility idling — 870 — 870 Depreciation 15,151 12,336 — 27,487 Impairment of property and equipment — 203 — 203 Accretion of asset retirement obligations — 114 — 114 Total operating expenses 40,388 41,415 1,180 82,983 Operating income $ 139,057 3,944 (1,180) 141,821 Equity in earnings of unconsolidated affiliates $ 24,088 — — 24,088 Additions to property and equipment $ 69,069 13,514 — 82,583 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. Three Months Ended September 30, 2022 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 185,640 61,411 — 247,051 Revenue–third-party — 1,651 — 1,651 Amortization of customer relationships (9,271) (8,397) — (17,668) Total revenues 176,369 54,665 — 231,034 Operating expenses: Direct operating 19,813 26,835 — 46,648 General and administrative 9,890 2,425 1,272 13,587 Facility idling — 865 — 865 Depreciation 21,177 13,029 — 34,206 Accretion of asset retirement obligations — 50 — 50 Gain on asset sale (2,056) (36) — (2,092) Total operating expenses 48,824 43,168 1,272 93,264 Operating income $ 127,545 11,497 (1,272) 137,770 Equity in earnings of unconsolidated affiliates $ 24,411 — — 24,411 Additions to property and equipment, net $ 58,742 15,378 — 74,120 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. Nine Months Ended September 30, 2021 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 566,544 167,832 — 734,376 Revenue–third-party — 340 — 340 Amortization of customer relationships (27,813) (25,191) — (53,004) Total revenues 538,731 142,981 — 681,712 Operating expenses: Direct operating 50,409 67,959 — 118,368 General and administrative 26,459 17,107 3,425 46,991 Facility idling — 3,033 — 3,033 Depreciation 44,268 36,688 — 80,956 Impairment of property and equipment 1,218 364 — 1,582 Accretion of asset retirement obligations — 347 — 347 Loss on asset sale 3,628 — — 3,628 Total operating expenses 125,982 125,498 3,425 254,905 Operating income $ 412,749 17,483 (3,425) 426,807 Equity in earnings of unconsolidated affiliates $ 66,347 — — 66,347 Additions to property and equipment $ 120,727 36,221 — 156,948 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. Nine Months Ended September 30, 2022 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 552,154 176,994 — 729,148 Revenue–third-party — 2,288 — 2,288 Amortization of customer relationships (27,814) (25,190) — (53,004) Total revenues 524,340 154,092 — 678,432 Operating expenses: Direct operating 56,338 75,621 — 131,959 General and administrative 30,081 13,015 4,501 47,597 Facility idling — 3,198 — 3,198 Depreciation 59,838 38,343 — 98,181 Impairment of property and equipment 1,130 2,572 — 3,702 Accretion of asset retirement obligations — 178 — 178 Loss on settlement of asset retirement obligations — 539 — 539 Gain on asset sale (2,119) (123) — (2,242) Total operating expenses 145,268 133,343 4,501 283,112 Operating income $ 379,072 20,749 (4,501) 395,320 Equity in earnings of unconsolidated affiliates $ 70,467 — — 70,467 Additions to property and equipment, net $ 190,407 45,747 — 236,154 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. The summarized total assets of the Company’s reportable segments are as follows: (Unaudited) December 31, September 30, (in thousands) 2021 2022 Gathering and Processing $ 4,450,939 4,489,750 Water Handling 1,092,122 1,073,000 Unallocated (1) 940 1,071 Total assets $ 5,544,001 5,563,821 (1) Certain assets that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | (a) Basis of Presentation These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2021 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position, and accounting policies. The Company’s December 31, 2021 consolidated financial statements were included in the Company’s 2021 Annual Report on Form 10-K, which was filed with the SEC. These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2021 and September 30, 2022, the results of the Company’s operations for the three and nine months ended September 30, 2021 and 2022, and the Company’s cash flows for the nine months ended September 30, 2021 and 2022. The Company has no items of other comprehensive income; therefore, net income is equal to comprehensive income. Certain costs of doing business incurred and charged to the Company by Antero Resources have been reflected in the accompanying unaudited condensed consolidated financial statements. These costs include general and administrative expenses provided to the Company by Antero Resources in exchange for: ● business services, such as payroll, accounts payable and facilities management; ● corporate services, such as finance and accounting, legal, human resources, investor relations and public and regulatory policy; and ● employee compensation, including equity-based compensation. Transactions between the Company and Antero Resources have been identified in the unaudited condensed consolidated financial statements (see Note 4—Transactions with Affiliates). |
Principles of Consolidation | (b) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Midstream Corporation and its consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements. |
Dividends | (c) Dividends Preferred and common dividends declared are recorded as a reduction of retained earnings to the extent that retained earnings were available at the close of the quarter prior to the dividend declaration date, with any excess recorded as a reduction of additional paid-in capital. |
Recently Adopted Accounting Standard | (d) Recently Adopted Accounting Standard In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 consolidated financial statements |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Intangibles | |
Schedule of changes in carrying amount of customer relationships | The changes in the carrying amount of customer relationships were as follows (in thousands): Customer relationships as of December 31, 2021 $ 1,356,775 Amortization of customer relationships (53,004) Customer relationships as of September 30, 2022 $ 1,303,771 |
Schedule of future amortization expense | Future amortization expense is as follows (in thousands): Remainder of year ending December 31, 2022 $ 17,668 Year ending December 31, 2023 70,672 Year ending December 31, 2024 70,672 Year ending December 31, 2025 70,672 Year ending December 31, 2026 70,672 Thereafter 1,003,415 Total $ 1,303,771 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue | |
Schedule of minimum future lease cash flows to be received by the Company under the gathering and compression agreement | Minimum future lease cash flows to be received by the Company under the gathering and compression agreement as of September 30, 2022 are as follows (in thousands): Remainder of year ending December 31, 2022 $ 45,492 Year ending December 31, 2023 298,655 Year ending December 31, 2024 299,473 Year ending December 31, 2025 285,175 Year ending December 31, 2026 271,762 Thereafter 562,414 Total $ 1,762,971 |
Schedule of disaggregation of revenue | Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2022 2021 2022 Reportable Segment Type of service Gathering—low pressure $ 87,139 92,091 265,206 273,188 Gathering and Processing (1) Gathering—low pressure rebate — (12,000) — (36,000) Gathering and Processing (1) Compression 49,765 52,364 147,273 155,462 Gathering and Processing (1) Gathering—high pressure 51,812 53,185 154,065 159,504 Gathering and Processing (1) Fresh water delivery 33,004 38,445 108,113 111,609 Water Handling Other fluid handling 20,752 24,617 60,059 67,673 Water Handling Amortization of customer relationships (9,271) (9,271) (27,813) (27,814) Gathering and Processing Amortization of customer relationships (8,397) (8,397) (25,191) (25,190) Water Handling Total $ 224,804 231,034 681,712 678,432 Type of contract Per Unit Fixed Fee $ 188,716 197,640 566,544 588,154 Gathering and Processing (1) Gathering—low pressure rebate — (12,000) — (36,000) Gathering and Processing (1) Per Unit Fixed Fee 33,004 38,921 108,113 112,722 Water Handling Cost plus 3% 16,952 19,346 48,727 51,384 Water Handling Cost of service fee 3,800 4,795 11,332 15,176 Water Handling Amortization of customer relationships (9,271) (9,271) (27,813) (27,814) Gathering and Processing Amortization of customer relationships (8,397) (8,397) (25,191) (25,190) Water Handling Total $ 224,804 231,034 681,712 678,432 (1) Revenue related to the gathering and processing segment is classified as lease income related to the gathering system. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property and Equipment | |
Schedule of property and equipment, net | (Unaudited) Estimated December 31, September 30, (in thousands) Useful Lives 2021 2022 Land n/a $ 23,369 26,682 Gathering systems and facilities 40-50 years (1) 2,817,918 3,052,459 Permanent buried pipelines and equipment 7-20 years 582,481 602,343 Surface pipelines and equipment 1-7 years 54,542 67,520 Heavy trucks and equipment 3-5 years 5,157 5,157 Above ground storage tanks 5-10 years 2,946 2,953 Construction-in-progress n/a 174,271 114,582 Total property and equipment 3,660,684 3,871,696 Less accumulated depreciation (265,938) (363,688) Property and equipment, net $ 3,394,746 3,508,008 (1) Gathering systems and facilities are recognized as a single-leased asset with no residual value. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt. | |
Schedule of long-term debt | (Unaudited) December 31, September 30, (in thousands) 2021 2022 Credit Facility (a) $ 547,200 564,800 7.875% senior notes due 2026 (c) 550,000 550,000 5.75% senior notes due 2027 (d) 650,000 650,000 5.75% senior notes due 2028 (e) 650,000 650,000 5.375% senior notes due 2029 (f) 750,000 750,000 Total principal 3,147,200 3,164,800 Unamortized debt premiums 2,106 1,801 Unamortized debt issuance costs (26,396) (23,432) Total long-term debt $ 3,122,910 3,143,169 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following items: (Unaudited) December 31, September 30, (in thousands) 2021 2022 Capital expenditures $ 24,900 19,465 Operating expenses 10,417 8,716 Interest expense 36,794 39,831 Ad valorem taxes 5,400 2,265 Other 3,327 2,675 Total accrued liabilities $ 80,838 72,952 |
Equity-Based Compensation and_2
Equity-Based Compensation and Cash Awards (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Schedule of equity based compensation by type of award | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2022 2021 2022 Restricted stock units (1) $ 2,905 4,525 8,608 11,438 Performance share units (1) 123 833 1,036 1,938 Equity awards issued to directors 227 195 682 650 Total expense $ 3,255 5,553 10,326 14,026 (1) Amounts include equity-based compensation expense allocated to the Company by Antero Resources. |
Summary of RSU awards activity | Weighted Average Number Grant Date of Units Fair Value Total AM LTIP RSUs awarded and unvested—December 31, 2021 3,573,377 $ 8.11 Granted 2,750,896 11.28 Vested (1,243,878) 8.40 Forfeited (159,119) 9.37 Total AM LTIP RSUs awarded and unvested—September 30, 2022 4,921,276 $ 9.77 |
ROIC PSUs | |
Summary of PSU awards activity | Weighted Average Number Grant Date of Units Fair Value Total AM LTIP PSUs awarded and unvested—December 31, 2021 116,526 $ 6.32 Granted 461,121 11.05 Vested (1) (137,712) 6.32 Forfeited — — Total AM LTIP PSUs awarded and unvested—September 30, 2022 439,935 $ 11.28 (1) The performance condition for these vested PSUs was met at 200% of target and as such, they converted into 275,424 shares of the Company’s common stock during the second quarter of 2022. |
Cash Dividends (Tables)
Cash Dividends (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash Dividends | |
Schedule of quarterly distributions and dividends paid | The Company paid cash dividends for the quarter indicated as follows (in thousands, except per share data): Dividends Period Record Date Dividend Date Dividends per Share Q4 2020 February 3, 2021 February 11, 2021 $ 147,194 $ 0.3075 * February 16, 2021 February 16, 2021 138 * Q1 2021 April 28, 2021 May 12, 2021 108,799 0.2250 * May 17, 2021 May 17, 2021 137 * Q2 2021 July 28, 2021 August 11, 2021 107,719 0.2250 * August 16, 2021 August 16, 2021 138 * Q3 2021 October 27, 2021 November 10, 2021 107,459 0.2250 * November 15, 2021 November 15, 2021 137 * Total 2021 $ 471,721 Q4 2021 January 26, 2022 February 9, 2022 $ 108,149 $ 0.2250 * February 14, 2022 February 14, 2022 138 * Q1 2022 April 27, 2022 May 11, 2022 109,296 0.2250 * May 16, 2022 May 16, 2022 137 * Q2 2022 July 27, 2022 August 10, 2022 107,675 0.2250 * August 15, 2022 August 15, 2022 138 * Total 2022 $ 325,533 * Dividends are paid in accordance with the terms of the Series A Preferred Stock (as defined below) as discussed in Note 11—Equity and Earnings Per Common Share . |
Equity and Earnings Per Commo_2
Equity and Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity and Earnings Per Common Share | |
Schedule of weighted average shares outstanding | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2021 2022 2021 2022 Basic weighted average number of shares outstanding 477,442 478,460 477,196 478,144 Add: Dilutive effect of RSUs 1,093 769 1,113 1,003 Add: Dilutive effect of PSUs 200 — 232 106 Add: Dilutive effect of Series A Preferred Stock 960 1,089 960 1,089 Diluted weighted average number of shares outstanding 479,695 480,318 479,501 480,342 Weighted average number of outstanding equity awards excluded from calculation of diluted earnings per common share (1): RSUs 235 2,685 283 1,662 PSUs — 880 — 545 (1) The potential dilutive effects of these awards were excluded from the computation of earnings (loss) per common shares—assuming dilution because the inclusion of these awards would have been anti-dilutive. |
Schedule of earnings per common share | Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share amounts) 2021 2022 2021 2022 Net income $ 89,327 84,014 252,991 243,449 Less preferred stock dividends (138) (138) (413) (413) Net income available to common shareholders $ 89,189 83,876 252,578 243,036 Net income per share–basic $ 0.19 0.18 0.53 0.51 Net income per share–diluted $ 0.19 0.17 0.53 0.51 Weighted average common shares outstanding–basic 477,442 478,460 477,196 478,144 Weighted average common shares outstanding–diluted 479,695 480,318 479,501 480,342 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurement | |
Schedule of fair value and carrying value of Senior Notes | (Unaudited) December 31, 2021 September 30, 2022 (in thousands) Fair Value (1) Carrying Value (2) Fair Value (1) Carrying Value (2) 2026 Notes $ 604,450 544,294 551,430 545,128 2027 Notes 672,750 645,970 601,120 646,444 2028 Notes 680,225 643,902 591,500 644,554 2029 Notes 783,750 741,544 657,375 742,243 Total $ 2,741,175 2,575,710 2,401,425 2,578,369 (1) Fair values are based on Level 2 market data inputs. (2) Carrying values are presented net of unamortized debt issuance costs and debt premiums. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments in Unconsolidated Affiliates | |
Schedule of reconciliation of investments in unconsolidated affiliates | Total Investment MarkWest in Unconsolidated (in thousands) Stonewall Joint Venture Affiliates Balance as of December 31, 2021 $ 130,572 565,437 696,009 Equity in earnings of unconsolidated affiliates (1) 5,367 65,100 70,467 Distributions from unconsolidated affiliates (9,000) (81,470) (90,470) Return of investment in unconsolidated affiliate — (17,000) (17,000) Balance as of September 30, 2022 $ 126,939 532,067 659,006 (1) As adjusted for the amortization of the difference between the cost of the equity investments in Stonewall and the Joint Venture and the amount of the underlying equity in the net assets of Stonewall and the Joint Venture as of March 12, 2019. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Reportable Segments | |
Schedule of operating results and assets of the Company's reportable segments | The summarized operating results of the Company’s reportable segments are as follows: Three Months Ended September 30, 2021 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 188,716 53,511 — 242,227 Revenue–third-party — 245 — 245 Amortization of customer relationships (9,271) (8,397) — (17,668) Total revenues 179,445 45,359 — 224,804 Operating expenses: Direct operating 16,161 23,338 — 39,499 General and administrative 9,076 4,554 1,180 14,810 Facility idling — 870 — 870 Depreciation 15,151 12,336 — 27,487 Impairment of property and equipment — 203 — 203 Accretion of asset retirement obligations — 114 — 114 Total operating expenses 40,388 41,415 1,180 82,983 Operating income $ 139,057 3,944 (1,180) 141,821 Equity in earnings of unconsolidated affiliates $ 24,088 — — 24,088 Additions to property and equipment $ 69,069 13,514 — 82,583 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. Three Months Ended September 30, 2022 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 185,640 61,411 — 247,051 Revenue–third-party — 1,651 — 1,651 Amortization of customer relationships (9,271) (8,397) — (17,668) Total revenues 176,369 54,665 — 231,034 Operating expenses: Direct operating 19,813 26,835 — 46,648 General and administrative 9,890 2,425 1,272 13,587 Facility idling — 865 — 865 Depreciation 21,177 13,029 — 34,206 Accretion of asset retirement obligations — 50 — 50 Gain on asset sale (2,056) (36) — (2,092) Total operating expenses 48,824 43,168 1,272 93,264 Operating income $ 127,545 11,497 (1,272) 137,770 Equity in earnings of unconsolidated affiliates $ 24,411 — — 24,411 Additions to property and equipment, net $ 58,742 15,378 — 74,120 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. Nine Months Ended September 30, 2021 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 566,544 167,832 — 734,376 Revenue–third-party — 340 — 340 Amortization of customer relationships (27,813) (25,191) — (53,004) Total revenues 538,731 142,981 — 681,712 Operating expenses: Direct operating 50,409 67,959 — 118,368 General and administrative 26,459 17,107 3,425 46,991 Facility idling — 3,033 — 3,033 Depreciation 44,268 36,688 — 80,956 Impairment of property and equipment 1,218 364 — 1,582 Accretion of asset retirement obligations — 347 — 347 Loss on asset sale 3,628 — — 3,628 Total operating expenses 125,982 125,498 3,425 254,905 Operating income $ 412,749 17,483 (3,425) 426,807 Equity in earnings of unconsolidated affiliates $ 66,347 — — 66,347 Additions to property and equipment $ 120,727 36,221 — 156,948 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. Nine Months Ended September 30, 2022 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 552,154 176,994 — 729,148 Revenue–third-party — 2,288 — 2,288 Amortization of customer relationships (27,814) (25,190) — (53,004) Total revenues 524,340 154,092 — 678,432 Operating expenses: Direct operating 56,338 75,621 — 131,959 General and administrative 30,081 13,015 4,501 47,597 Facility idling — 3,198 — 3,198 Depreciation 59,838 38,343 — 98,181 Impairment of property and equipment 1,130 2,572 — 3,702 Accretion of asset retirement obligations — 178 — 178 Loss on settlement of asset retirement obligations — 539 — 539 Gain on asset sale (2,119) (123) — (2,242) Total operating expenses 145,268 133,343 4,501 283,112 Operating income $ 379,072 20,749 (4,501) 395,320 Equity in earnings of unconsolidated affiliates $ 70,467 — — 70,467 Additions to property and equipment, net $ 190,407 45,747 — 236,154 (1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. The summarized total assets of the Company’s reportable segments are as follows: (Unaudited) December 31, September 30, (in thousands) 2021 2022 Gathering and Processing $ 4,450,939 4,489,750 Water Handling 1,092,122 1,073,000 Unallocated (1) 940 1,071 Total assets $ 5,544,001 5,563,821 (1) Certain assets that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis . |
Intangibles - Customer Relation
Intangibles - Customer Relationships (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite lived intangible assets rollforward | ||||
Balance - beginning of period | $ 1,356,775 | |||
Amortization of customer relationships | $ (17,668) | $ (17,668) | (53,004) | $ (53,004) |
Balance - end of period | 1,303,771 | 1,303,771 | ||
Customer relationships | ||||
Finite lived intangible assets rollforward | ||||
Balance - beginning of period | 1,356,775 | |||
Amortization of customer relationships | (53,004) | |||
Balance - end of period | $ 1,303,771 | $ 1,303,771 | ||
Customer relationships | Weighted Average | ||||
Finite lived intangible assets | ||||
Amortization period | 19 years |
Intangibles - Future amortizati
Intangibles - Future amortization expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Future amortization expense | ||
Total | $ 1,303,771 | $ 1,356,775 |
Customer relationships | ||
Future amortization expense | ||
Remainder of year ending December 31, 2022 | 17,668 | |
Year ending December 31, 2023 | 70,672 | |
Year ending December 31, 2024 | 70,672 | |
Year ending December 31, 2025 | 70,672 | |
Year ending December 31, 2026 | 70,672 | |
Thereafter | 1,003,415 | |
Total | $ 1,303,771 | $ 1,356,775 |
Transactions with Affiliates (D
Transactions with Affiliates (Details) - Antero - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allocation of costs | ||||
Direct labor expenses | $ 3 | $ 2 | $ 10 | $ 7 |
General and administrative expense | $ 6 | $ 8 | $ 22 | $ 24 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Gathering And Compression Agreement | ||||
Agreements | ||||
Notice period | 180 days | |||
Rebate issued | $ 12 | $ 0 | $ 36 | $ 0 |
Water Handling Agreement | ||||
Agreements | ||||
Notice period | 180 days | |||
Third party out of pocket costs reimbursement markup (as a percent) | 3% |
Revenue - Minimum Volume Commit
Revenue - Minimum Volume Commitments (Details) - Gathering And Compression Agreement $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Lessor, Operating Leases | |
Minimum volume commitment that require Antero to pay for high pressure lines | 75% |
Minimum volume commitment that require Antero to pay for compressor stations | 70% |
Term of new construction | 10 years |
Rate of return on new construction from service fee | 13% |
Time period to earn targeted rate of return from service fee | 7 years |
Minimum future lease cash flows to be received by the Company | |
Remainder of year ending December 31, 2022 | $ 45,492 |
Year ending December 31, 2023 | 298,655 |
Year ending December 31, 2024 | 299,473 |
Year ending December 31, 2025 | 285,175 |
Year ending December 31, 2026 | 271,762 |
Thereafter | 562,414 |
Total | $ 1,762,971 |
Revenue - Transaction Price All
Revenue - Transaction Price Allocation and Contract Balances (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Revenue | ||
Original expected duration | true | |
Receivables from contracts with customers and operating leases | $ 79 | $ 81 |
Revenue - Disaggregation (Detai
Revenue - Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue | ||||
Amortization of customer relationships | $ (17,668) | $ (17,668) | $ (53,004) | $ (53,004) |
Total revenue | 231,034 | 224,804 | 678,432 | 681,712 |
Gathering And Processing. | ||||
Disaggregation of Revenue | ||||
Amortization of customer relationships | (9,271) | (9,271) | (27,814) | (27,813) |
Water Handling. | ||||
Disaggregation of Revenue | ||||
Amortization of customer relationships | (8,397) | (8,397) | (25,190) | (25,191) |
Fixed Fee | Gathering And Processing. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 197,640 | 188,716 | 588,154 | 566,544 |
Fixed Fee | Water Handling. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 38,921 | 33,004 | 112,722 | 108,113 |
Cost plus 3% | Water Handling. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 19,346 | 16,952 | 51,384 | 48,727 |
Cost of service fee | Water Handling. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 4,795 | 3,800 | 15,176 | 11,332 |
Gathering-low pressure | Gathering And Processing. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 92,091 | 87,139 | 273,188 | 265,206 |
Gathering-low pressure rebate | Gathering And Processing. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | (12,000) | (36,000) | ||
Gathering-high pressure | Gathering And Processing. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 53,185 | 51,812 | 159,504 | 154,065 |
Compression | Gathering And Processing. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 52,364 | 49,765 | 155,462 | 147,273 |
Fresh water delivery | Water Handling. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | 38,445 | 33,004 | 111,609 | 108,113 |
Other fluid handling | Water Handling. | ||||
Disaggregation of Revenue | ||||
Total operating revenues | $ 24,617 | $ 20,752 | $ 67,673 | $ 60,059 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Property and Equipment | ||
Total property and equipment | $ 3,871,696 | $ 3,660,684 |
Less accumulated depreciation | (363,688) | (265,938) |
Property and equipment, net | 3,508,008 | 3,394,746 |
Land | ||
Property and Equipment | ||
Total property and equipment | 26,682 | 23,369 |
Gathering systems and facilities | ||
Property and Equipment | ||
Total property and equipment | 3,052,459 | 2,817,918 |
Residual value | $ 0 | $ 0 |
Gathering systems and facilities | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 40 years | 40 years |
Gathering systems and facilities | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 50 years | 50 years |
Permanent buried pipelines and equipment | ||
Property and Equipment | ||
Total property and equipment | $ 602,343 | $ 582,481 |
Permanent buried pipelines and equipment | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 7 years | 7 years |
Permanent buried pipelines and equipment | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 20 years | 20 years |
Surface pipelines and equipment | ||
Property and Equipment | ||
Total property and equipment | $ 67,520 | $ 54,542 |
Surface pipelines and equipment | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 1 year | 1 year |
Surface pipelines and equipment | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 7 years | 7 years |
Heavy trucks and equipment | ||
Property and Equipment | ||
Total property and equipment | $ 5,157 | $ 5,157 |
Heavy trucks and equipment | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 3 years | 3 years |
Heavy trucks and equipment | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 5 years | 5 years |
Above ground storage tanks | ||
Property and Equipment | ||
Total property and equipment | $ 2,953 | $ 2,946 |
Above ground storage tanks | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 5 years | 5 years |
Above ground storage tanks | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 10 years | 10 years |
Construction-in-progress | ||
Property and Equipment | ||
Total property and equipment | $ 114,582 | $ 174,271 |
Property and Equipment - Subseq
Property and Equipment - Subsequent Event (Details) - Subsequent event - Crestwood Equity Partners LP - Marcellus gas gathering and compression acquisition $ in Thousands | Oct. 25, 2022 USD ($) MMcf / d item |
Property and Equipment | |
Cash | $ | $ 205 |
Number of miles pipeline acquired | 72 |
Number of compressor stations acquired | 9 |
Daily production of gas | MMcf / d | 700 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 08, 2021 | Nov. 10, 2020 | Jun. 28, 2019 | Feb. 25, 2019 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Mar. 12, 2019 | Sep. 13, 2016 | |
Long-term debt | ||||||||||
Total principal | $ 3,164,800 | $ 3,147,200 | ||||||||
Unamortized debt premiums | 1,801 | 2,106 | ||||||||
Unamortized debt issuance costs | (23,432) | (26,396) | ||||||||
Total long-term debt | $ 3,143,169 | 3,122,910 | ||||||||
Loss on early extinguishment of debt | $ (20,701) | |||||||||
Credit Facilities | Minimum | Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Commitment fees on the unused portion (as a percent) | 0.25% | |||||||||
Credit Facilities | Maximum | Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Commitment fees on the unused portion (as a percent) | 0.375% | |||||||||
Credit Facility | Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Total principal | $ 564,800 | 547,200 | ||||||||
Outstanding letters of credit | $ 0 | $ 0 | ||||||||
Weighted average interest rate (as a percent) | 4.81% | 1.81% | ||||||||
Current borrowing capacity | $ 1,250,000 | $ 1,250,000 | ||||||||
Available borrowing capacity | $ 685,000 | |||||||||
5.375% Senior Notes Due 2024 | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Unamortized debt premiums | $ 2,600 | |||||||||
Interest rate (as a percent) | 7.875% | 7.875% | 5.375% | |||||||
Face amount | $ 650,000 | |||||||||
Debt instrument fair value | 652,600 | |||||||||
Amount of debt redeemed | $ 650,000 | |||||||||
Loss on early extinguishment of debt | $ 21,000 | |||||||||
Debt instrument redemption percentage | 102.688% | |||||||||
7.875% Senior Notes Due 2026 | ||||||||||
Long-term debt | ||||||||||
Total long-term debt | $ 545,128 | $ 544,294 | ||||||||
7.875% Senior Notes Due 2026 | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Total principal | $ 550,000 | $ 550,000 | ||||||||
Interest rate (as a percent) | 7.875% | 5.75% | 5.75% | |||||||
Face amount | $ 550,000 | |||||||||
Debt instrument redemption percentage upon change of control | 101% | |||||||||
7.875% Senior Notes Due 2026 | Redemption period one | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 103.938% | |||||||||
7.875% Senior Notes Due 2026 | Redemption period two | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 100% | |||||||||
7.875% Senior Notes Due 2026 | Redemption period three | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 107.875% | |||||||||
Debt instrument redemption percentage with payment of premium and interest | 100% | |||||||||
7.875% Senior Notes Due 2026 | Redemption period three | Maximum | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Percent of aggregate principal amount that can be redeemed | 35% | |||||||||
5.75% Senior Notes Due 2027 | ||||||||||
Long-term debt | ||||||||||
Total long-term debt | $ 646,444 | $ 645,970 | ||||||||
5.75% Senior Notes Due 2027 | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Total principal | $ 650,000 | $ 650,000 | ||||||||
Unamortized debt premiums | 3,300 | |||||||||
Interest rate (as a percent) | 5.75% | 5.75% | 5.75% | |||||||
Face amount | $ 650,000 | |||||||||
Debt instrument fair value | $ 653,300 | |||||||||
Debt instrument redemption percentage upon change of control | 101% | |||||||||
5.75% Senior Notes Due 2027 | Redemption period one | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 102.875% | |||||||||
5.75% Senior Notes Due 2027 | Redemption period two | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 100% | |||||||||
5.75% Senior Notes Due 2028 | ||||||||||
Long-term debt | ||||||||||
Total long-term debt | $ 644,554 | $ 643,902 | ||||||||
5.75% Senior Notes Due 2028 | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Total principal | $ 650,000 | $ 650,000 | ||||||||
Interest rate (as a percent) | 5.75% | 5.375% | 5.375% | |||||||
Face amount | $ 650,000 | |||||||||
Debt instrument redemption percentage upon change of control | 101% | |||||||||
5.75% Senior Notes Due 2028 | Redemption period one | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 102.875% | |||||||||
5.75% Senior Notes Due 2028 | Redemption period two | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 100% | |||||||||
5.75% Senior Notes Due 2028 | Redemption period three | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 105.75% | |||||||||
Debt instrument redemption percentage with payment of premium and interest | 100% | |||||||||
5.75% Senior Notes Due 2028 | Redemption period three | Maximum | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Percent of aggregate principal amount that can be redeemed | 35% | |||||||||
5.375% Senior Notes Due 2029 | ||||||||||
Long-term debt | ||||||||||
Total long-term debt | $ 742,243 | $ 741,544 | ||||||||
5.375% Senior Notes Due 2029 | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Total principal | $ 750,000 | $ 750,000 | $ 750,000 | |||||||
Interest rate (as a percent) | 5.375% | |||||||||
Debt instrument redemption percentage upon change of control | 101% | |||||||||
5.375% Senior Notes Due 2029 | Redemption period one | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 102.688% | |||||||||
5.375% Senior Notes Due 2029 | Redemption period two | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 100% | |||||||||
5.375% Senior Notes Due 2029 | Redemption period three | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Debt instrument redemption percentage | 105.375% | |||||||||
Debt instrument redemption percentage with payment of premium and interest | 100% | |||||||||
5.375% Senior Notes Due 2029 | Redemption period three | Maximum | Finance Corp and together with Antero Midstream Partners | ||||||||||
Long-term debt | ||||||||||
Percent of aggregate principal amount that can be redeemed | 35% |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities | ||
Capital expenditures | $ 19,465 | $ 24,900 |
Operating expenses | 8,716 | 10,417 |
Interest expense | 39,831 | 36,794 |
Ad valorem taxes | 2,265 | 5,400 |
Other | 2,675 | 3,327 |
Total accrued liabilities | $ 72,952 | $ 80,838 |
Equity Based Compensation and C
Equity Based Compensation and Cash Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Mar. 19, 2019 | Apr. 30, 2022 | Jul. 31, 2020 | Jan. 31, 2020 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2021 | Mar. 12, 2019 | |
Common Stock | |||||||||||||||
Number of units | |||||||||||||||
Issuance of common stock upon conversion of performance share units (in shares) | 25,000 | 754,000 | 188,000 | 102,000 | 451,000 | 268,000 | |||||||||
AR LTIP | |||||||||||||||
Additional disclosures | |||||||||||||||
Equity based compensation expense allocated from Antero Resources | $ 0.1 | $ 0.3 | $ 0.4 | $ 1.8 | |||||||||||
Unamortized expense allocated from Antero Resources | $ 0.1 | $ 0.1 | |||||||||||||
AM LTIP | |||||||||||||||
Additional disclosures | |||||||||||||||
Number of stock-based compensation awards authorized | 15,398,901 | ||||||||||||||
Number of shares available for future grant under the Plan | 7,410,734 | 7,410,734 | |||||||||||||
Cash awards granted | $ 0.7 | $ 2.2 | |||||||||||||
Vesting period for cash awards | 4 years | 3 years | |||||||||||||
Cash awards accrued in other liabilities | $ 0.5 | $ 0.5 | $ 1.1 | ||||||||||||
AM LTIP RSUs | |||||||||||||||
Number of units | |||||||||||||||
Total awarded and unvested at the beginning of the period (in shares) | 3,573,377 | 3,573,377 | |||||||||||||
Granted (in shares) | 2,750,896 | ||||||||||||||
Vested (in shares) | (1,243,878) | ||||||||||||||
Forfeited (in shares) | (159,119) | ||||||||||||||
Total awarded and unvested at the end of the period (in shares) | 4,921,276 | 4,921,276 | |||||||||||||
Weighted average grant date fair value | |||||||||||||||
Total awarded and unvested at the beginning of the period (in dollars per unit) | $ 8.11 | $ 8.11 | |||||||||||||
Granted (in dollars per unit) | 11.28 | ||||||||||||||
Vested (in dollars per unit) | 8.40 | ||||||||||||||
Forfeited (in dollars per unit) | 9.37 | ||||||||||||||
Total awarded and unvested at the end of the period (in dollars per unit) | $ 9.77 | $ 9.77 | |||||||||||||
Additional disclosures | |||||||||||||||
Unamortized expense | $ 39.2 | $ 39.2 | |||||||||||||
Shares exchange ratio | 1.8926 | ||||||||||||||
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 4 months 24 days | ||||||||||||||
Converted AM RSU Awards | Maximum | |||||||||||||||
Additional disclosures | |||||||||||||||
Unamortized expense | $ 0.1 | $ 0.1 | |||||||||||||
ROIC PSUs | |||||||||||||||
Number of units | |||||||||||||||
Total awarded and unvested at the beginning of the period (in shares) | 116,526 | 116,526 | |||||||||||||
Granted (in shares) | 461,121 | ||||||||||||||
Vested (in shares) | (137,712) | ||||||||||||||
Total awarded and unvested at the end of the period (in shares) | 439,935 | 439,935 | |||||||||||||
Weighted average grant date fair value | |||||||||||||||
Total awarded and unvested at the beginning of the period (in dollars per unit) | $ 6.32 | $ 6.32 | |||||||||||||
Granted (in dollars per unit) | 11.05 | ||||||||||||||
Vested (in dollars per unit) | 6.32 | ||||||||||||||
Total awarded and unvested at the end of the period (in dollars per unit) | $ 11.28 | $ 11.28 | |||||||||||||
Additional disclosures | |||||||||||||||
Unamortized expense | $ 8.4 | $ 8.4 | |||||||||||||
Weighted average period for recognizing unrecognized stock-based compensation expense | 2 years 6 months | ||||||||||||||
2019 ROIC PSUs | |||||||||||||||
Number of units | |||||||||||||||
Vested (in shares) | (137,712) | ||||||||||||||
Total awarded and unvested at the end of the period (in shares) | 0 | 0 | |||||||||||||
Additional disclosures | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Percentage of target number of ROIC PSUs originally granted that may ultimately be earned | 200% | ||||||||||||||
2019 ROIC PSUs | Minimum | |||||||||||||||
Additional disclosures | |||||||||||||||
Percentage of target number of ROIC PSUs originally granted that may ultimately be earned | 0% | ||||||||||||||
2019 ROIC PSUs | Maximum | |||||||||||||||
Additional disclosures | |||||||||||||||
Percentage of target number of ROIC PSUs originally granted that may ultimately be earned | 200% | ||||||||||||||
2019 ROIC PSUs | Common Stock | |||||||||||||||
Number of units | |||||||||||||||
Issuance of common stock upon conversion of performance share units (in shares) | 275,424 | ||||||||||||||
2022 ROIC PSUs | |||||||||||||||
Additional disclosures | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
2022 ROIC PSUs | Minimum | |||||||||||||||
Additional disclosures | |||||||||||||||
Percentage of target number of ROIC PSUs originally granted that may ultimately be earned | 0% | ||||||||||||||
2022 ROIC PSUs | Maximum | |||||||||||||||
Additional disclosures | |||||||||||||||
Percentage of target number of ROIC PSUs originally granted that may ultimately be earned | 200% |
Equity Based Compensation and_2
Equity Based Compensation and Cash Awards - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity based compensation | ||||
Equity based compensation expense | $ 5,553 | $ 3,255 | $ 14,026 | $ 10,326 |
AM LTIP RSUs | ||||
Equity based compensation | ||||
Equity based compensation expense | 4,525 | 2,905 | 11,438 | 8,608 |
ROIC PSUs | ||||
Equity based compensation | ||||
Equity based compensation expense | 833 | 123 | 1,938 | 1,036 |
Equity awards issued to directors | ||||
Equity based compensation | ||||
Equity based compensation expense | $ 195 | $ 227 | $ 650 | $ 682 |
Cash Dividends (Details)
Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |||||||||||||||
Aug. 15, 2022 | Aug. 10, 2022 | May 16, 2022 | Apr. 13, 2022 | Feb. 14, 2022 | Feb. 09, 2022 | Nov. 15, 2021 | Nov. 10, 2021 | Aug. 16, 2021 | Aug. 11, 2021 | May 17, 2021 | May 12, 2021 | Feb. 16, 2021 | Feb. 11, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash dividends | |||||||||||||||||
Common stock dividends paid | $ 107,675 | $ 109,296 | $ 108,149 | $ 107,459 | $ 107,719 | $ 108,799 | $ 147,194 | $ 325,120 | $ 363,712 | ||||||||
Preferred stock dividends paid | 413 | $ 413 | |||||||||||||||
Dividends paid | 325,533 | $ 471,721 | |||||||||||||||
Common stock dividends (in dollars per share) | $ 0.2250 | $ 0.2250 | $ 0.2250 | $ 0.2250 | $ 0.2250 | $ 0.2250 | $ 0.3075 | ||||||||||
Cash dividends declared per common share | $ 0.2250 | ||||||||||||||||
Series A Preferred Stock | |||||||||||||||||
Cash dividends | |||||||||||||||||
Preferred stock dividends paid | $ 138 | $ 137 | $ 138 | $ 137 | $ 138 | $ 137 | $ 138 | ||||||||||
Cash dividend declared | $ 138 | ||||||||||||||||
Dividends in arrears | $ 69 |
Equity and Earnings Per Commo_3
Equity and Earnings Per Common Share (Details) - $ / shares | Mar. 12, 2019 | Sep. 30, 2022 | Dec. 31, 2021 |
Equity and Earnings Per Common Share | |||
Number of shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Series A Preferred Stock. | |||
Equity and Earnings Per Common Share | |||
Preferred stock, shares issued | 10,000 | ||
Preferred stock dividend rate | 5.50% | ||
Dividend payment term | 45 days | ||
Redemption price per share | $ 1,000 |
Equity and Earnings Per Commo_4
Equity and Earnings Per Common Share - Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Weighted Average Shares Outstanding | ||||
Basic weighted average common shares outstanding | 478,460 | 477,442 | 478,144 | 477,196 |
Add: Dilutive effect of Series A preferred stock | 1,089 | 960 | 1,089 | 960 |
Diluted weighted average number of shares outstanding | 480,318 | 479,695 | 480,342 | 479,501 |
RSUs | ||||
Weighted Average Shares Outstanding | ||||
Add: Dilutive effect | 769 | 1,093 | 1,003 | 1,113 |
Antidilutive securities excluded from computation of earnings per share | 2,685 | 235 | 1,662 | 283 |
ROIC PSUs | ||||
Weighted Average Shares Outstanding | ||||
Add: Dilutive effect | 200 | 106 | 232 | |
Antidilutive securities excluded from computation of earnings per share | 880 | 545 |
Equity and Earnings Per Commo_5
Equity and Earnings Per Common Share - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity and Earnings Per Common Share | ||||||||
Net income | $ 84,014 | $ 79,395 | $ 80,040 | $ 89,327 | $ 80,223 | $ 83,441 | $ 243,449 | $ 252,991 |
Less preferred stock dividends | (138) | (138) | (413) | (413) | ||||
Net income (loss) available to common shareholders | $ 83,876 | $ 89,189 | $ 243,036 | $ 252,578 | ||||
Net income per share-basic (in dollars per share) | $ 0.18 | $ 0.19 | $ 0.51 | $ 0.53 | ||||
Net income per share-diluted (in dollars per share) | $ 0.17 | $ 0.19 | $ 0.51 | $ 0.53 | ||||
Basic weighted average common shares outstanding | 478,460 | 477,442 | 478,144 | 477,196 | ||||
Weighted average common shares outstanding-diluted | 480,318 | 479,695 | 480,342 | 479,501 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair value measurement | ||
Carrying Value | $ 3,143,169 | $ 3,122,910 |
Senior Notes | ||
Fair value measurement | ||
Carrying Value | 2,578,369 | 2,575,710 |
Senior Notes | Level 2 | ||
Fair value measurement | ||
Fair Value | 2,401,425 | 2,741,175 |
7.875% Senior Notes Due 2026 | ||
Fair value measurement | ||
Carrying Value | 545,128 | 544,294 |
7.875% Senior Notes Due 2026 | Level 2 | ||
Fair value measurement | ||
Fair Value | 551,430 | 604,450 |
5.75% Senior Notes Due 2027 | ||
Fair value measurement | ||
Carrying Value | 646,444 | 645,970 |
5.75% Senior Notes Due 2027 | Level 2 | ||
Fair value measurement | ||
Fair Value | 601,120 | 672,750 |
5.75% Senior Notes Due 2028 | ||
Fair value measurement | ||
Carrying Value | 644,554 | 643,902 |
5.75% Senior Notes Due 2028 | Level 2 | ||
Fair value measurement | ||
Fair Value | 591,500 | 680,225 |
5.375% Senior Notes Due 2029 | ||
Fair value measurement | ||
Carrying Value | 742,243 | 741,544 |
5.375% Senior Notes Due 2029 | Level 2 | ||
Fair value measurement | ||
Fair Value | $ 657,375 | $ 783,750 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) item mi | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) item mi | Sep. 30, 2021 USD ($) | |
Investments in unconsolidated affiliates | ||||
Balance at beginning of period | $ 696,009 | |||
Equity in earnings of unconsolidated affiliates | $ 24,411 | $ 24,088 | 70,467 | $ 66,347 |
Distributions from unconsolidated affiliates | (90,470) | $ (87,115) | ||
Return of investment in unconsolidated affiliate | (17,000) | |||
Balance at end of period | $ 659,006 | $ 659,006 | ||
Stonewall | ||||
Equity Method Investments | ||||
Ownership percentage | 15% | 15% | ||
Number of miles of pipeline | mi | 67 | 67 | ||
Investments in unconsolidated affiliates | ||||
Balance at beginning of period | $ 130,572 | |||
Equity in earnings of unconsolidated affiliates | 5,367 | |||
Distributions from unconsolidated affiliates | (9,000) | |||
Balance at end of period | $ 126,939 | $ 126,939 | ||
MarkWest Joint Venture | ||||
Equity Method Investments | ||||
Ownership percentage | 50% | 50% | ||
Percentage of interest held by joint venture in third party fractionator in Ohio | 33.33% | |||
Number of fractionators | item | 2 | 2 | ||
Investments in unconsolidated affiliates | ||||
Balance at beginning of period | $ 565,437 | |||
Equity in earnings of unconsolidated affiliates | 65,100 | |||
Distributions from unconsolidated affiliates | (81,470) | |||
Return of investment in unconsolidated affiliate | (17,000) | |||
Balance at end of period | $ 532,067 | $ 532,067 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment item | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Reporting Segments | |||||
Number of reportable segments | segment | 2 | ||||
Revenues: | |||||
Amortization of customer relationships | $ (17,668) | $ (17,668) | $ (53,004) | $ (53,004) | |
Total revenue | 231,034 | 224,804 | 678,432 | 681,712 | |
Operating expenses: | |||||
Direct operating | 46,648 | 39,499 | 131,959 | 118,368 | |
General and administrative | 13,587 | 14,810 | 47,597 | 46,991 | |
Facility idling | 865 | 870 | 3,198 | 3,033 | |
Impairment of property and equipment | 203 | 3,702 | 1,582 | ||
Depreciation | 34,206 | 27,487 | 98,181 | 80,956 | |
Accretion of asset retirement obligations | 50 | 114 | 178 | 347 | |
Loss on settlement of asset retirement obligations | 539 | ||||
Loss (gain) on asset sale | (2,092) | (2,242) | 3,628 | ||
Total operating expenses | 93,264 | 82,983 | 283,112 | 254,905 | |
Operating income | 137,770 | 141,821 | 395,320 | 426,807 | |
Equity in earnings of unconsolidated affiliates | 24,411 | 24,088 | 70,467 | 66,347 | |
Total assets | 5,563,821 | 5,563,821 | $ 5,544,001 | ||
Additions to property and equipment | 74,120 | 82,583 | 236,154 | 156,948 | |
Antero | |||||
Revenues: | |||||
Total operating revenues | 247,051 | 242,227 | 729,148 | 734,376 | |
Third party | |||||
Revenues: | |||||
Total operating revenues | 1,651 | 245 | 2,288 | 340 | |
Gathering And Processing. | |||||
Revenues: | |||||
Amortization of customer relationships | (9,271) | (9,271) | $ (27,814) | (27,813) | |
Water Handling | |||||
Reporting Segments | |||||
Number of independent fresh water systems | item | 2 | ||||
Revenues: | |||||
Amortization of customer relationships | (8,397) | (8,397) | $ (25,190) | (25,191) | |
Operating Segments | Gathering And Processing. | |||||
Revenues: | |||||
Amortization of customer relationships | (9,271) | (9,271) | (27,814) | (27,813) | |
Total revenue | 176,369 | 179,445 | 524,340 | 538,731 | |
Operating expenses: | |||||
Direct operating | 19,813 | 16,161 | 56,338 | 50,409 | |
General and administrative | 9,890 | 9,076 | 30,081 | 26,459 | |
Impairment of property and equipment | 1,130 | 1,218 | |||
Depreciation | 21,177 | 15,151 | 59,838 | 44,268 | |
Loss (gain) on asset sale | (2,056) | (2,119) | 3,628 | ||
Total operating expenses | 48,824 | 40,388 | 145,268 | 125,982 | |
Operating income | 127,545 | 139,057 | 379,072 | 412,749 | |
Equity in earnings of unconsolidated affiliates | 24,411 | 24,088 | 70,467 | 66,347 | |
Total assets | 4,489,750 | 4,489,750 | 4,450,939 | ||
Additions to property and equipment | 58,742 | 69,069 | 190,407 | 120,727 | |
Operating Segments | Gathering And Processing. | Antero | |||||
Revenues: | |||||
Total operating revenues | 185,640 | 188,716 | 552,154 | 566,544 | |
Operating Segments | Water Handling | |||||
Revenues: | |||||
Amortization of customer relationships | (8,397) | (8,397) | (25,190) | (25,191) | |
Total revenue | 54,665 | 45,359 | 154,092 | 142,981 | |
Operating expenses: | |||||
Direct operating | 26,835 | 23,338 | 75,621 | 67,959 | |
General and administrative | 2,425 | 4,554 | 13,015 | 17,107 | |
Facility idling | 865 | 870 | 3,198 | 3,033 | |
Impairment of property and equipment | 203 | 2,572 | 364 | ||
Depreciation | 13,029 | 12,336 | 38,343 | 36,688 | |
Accretion of asset retirement obligations | 50 | 114 | 178 | 347 | |
Loss on settlement of asset retirement obligations | 539 | ||||
Loss (gain) on asset sale | (36) | (123) | |||
Total operating expenses | 43,168 | 41,415 | 133,343 | 125,498 | |
Operating income | 11,497 | 3,944 | 20,749 | 17,483 | |
Total assets | 1,073,000 | 1,073,000 | 1,092,122 | ||
Additions to property and equipment | 15,378 | 13,514 | 45,747 | 36,221 | |
Operating Segments | Water Handling | Antero | |||||
Revenues: | |||||
Total operating revenues | 61,411 | 53,511 | 176,994 | 167,832 | |
Operating Segments | Water Handling | Third party | |||||
Revenues: | |||||
Total operating revenues | 1,651 | 245 | 2,288 | 340 | |
Unallocated | |||||
Operating expenses: | |||||
General and administrative | 1,272 | 1,180 | 4,501 | 3,425 | |
Total operating expenses | 1,272 | 1,180 | 4,501 | 3,425 | |
Operating income | (1,272) | $ (1,180) | (4,501) | $ (3,425) | |
Total assets | $ 1,071 | $ 1,071 | $ 940 |