Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investments

v3.19.1
Equity Method Investments
3 Months Ended
Mar. 31, 2019
Equity Method Investments.  
Equity Method Investments

(5)Equity Method Investments

At March 13, 2019 and at March 31, 2019, Antero owned approximately 31.3% of Antero Midstream Corporation’s common stock, which is reflected in Antero’s consolidated financial statements using the equity method of accounting.  See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions.

Prior to March 13, 2019, our consolidated results included two equity method investments held by Antero Midstream Partners: a 15% equity interest in Stonewall Gas Gathering LLC (“Stonewall”), which operates a regional gathering pipeline on which Antero is an anchor shipper, and a 50% interest in the joint venture entered into on February 6, 2017 between Antero Midstream Partners and MarkWest Energy Partners, L.P. (“MarkWest”), a wholly owned subsidiary of MPLX, LP, to develop processing and fractionation assets in Appalachia (the “Joint Venture”).  Effective March 13, 2019, the equity in earnings of these investments are accounted for in the equity in earnings of Antero Midstream Corporation. 

The following table is a reconciliation of investments in unconsolidated affiliates for the three months ended March 31, 2019 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stonewall (1)

 

MarkWest
Joint Venture

 

Antero Midstream Corporation  (2)

 

Total

 

Balance at December 31, 2018

 

$

68,103

 

 

365,539

 

 

 —

 

 

433,642

 

Investments (3)

 

 

 —

 

 

25,020

 

 

 —

 

 

25,020

 

Equity in net income of unconsolidated affiliates

 

 

1,894

 

 

10,370

 

 

1,817

 

 

14,081

 

Distributions from unconsolidated affiliates

 

 

(3,000)

 

 

(9,605)

 

 

 —

 

 

(12,605)

 

Effects of deconsolidation (4)

 

 

(66,997)

 

 

(391,324)

 

 

1,987,795

 

 

1,529,474

 

Balance at March 31, 2019

 

$

 —

 

 

 —

 

 

1,989,612

 

 

1,989,612

 


(1)

Distributions are net of operating and capital requirements retained by Stonewall.

(2)

As adjusted for the amortization of the difference between the cost of the equity investment in Antero Midstream Partners and the amount of underlying equity in the net assets of Antero Midstream Partners as of the date of deconsolidation.

(3)

Investments in the Joint Venture during the three months ended March 31, 2019 relate to capital contributions for construction of additional processing facilities.

(4)

Effective March 13, 2019, the equity in earnings of Stonewall and the Joint Venture are accounted for in the equity in earnings of Antero Midstream Corporation.

 

Summarized Financial Information of Antero Midstream Corporation

 

The following tables present summarized financial information of Antero Midstream Corporation.  Summarized financial information is presented from March 13, 2019. 

 

Balance Sheet

 

 

 

 

 

 

(in thousands)

 

March 31, 2019

 

Current assets

 

$

116,719

 

Noncurrent assets

 

 

6,551,708

 

Total assets

 

$

6,668,427

 

 

 

 

 

 

Current liabilities

 

$

118,062

 

Noncurrent liabilities

 

 

2,514,815

 

Stockholders' equity

 

 

4,035,550

 

Total liabilities and equity

 

$

6,668,427

 

 

Statement of Operations

 

 

 

 

 

 

 

 

For the period

 

 

 

 

March 13, 2019 through

 

(in thousands)

 

March 31, 2019

 

Revenues

 

$

54,108

 

Operating expenses

 

 

30,029

 

Income from operations

 

 

24,079

 

Net income attributable to the equity method investments

 

 

23,197