Quarterly report pursuant to Section 13 or 15(d)

Commitments

v3.19.1
Commitments
3 Months Ended
Mar. 31, 2019
Commitments  
Commitments

 

(13) Commitments

The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have remaining lease terms in excess of one year as of March 31, 2019 (in millions).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Firm
transportation

  

Processing,
gathering and
compression

  

Land payment obligations

  

Leases, including imputed interest

  

 

 

(in millions)

 

(a)

 

(b)

 

(c)

 

(d)

 

Total

 

Remainder of 2019

 

$

824

 

 

41

 

 

 9

 

 

309

 

 

1,183

 

2020

 

 

1,113

 

 

55

 

 

 6

 

 

398

 

 

1,572

 

2021

 

 

1,090

 

 

54

 

 

 3

 

 

351

 

 

1,498

 

2022

 

 

1,037

 

 

54

 

 

 —

 

 

361

 

 

1,452

 

2023

 

 

1,025

 

 

48

 

 

 —

 

 

378

 

 

1,451

 

2024

 

 

984

 

 

48

 

 

 —

 

 

392

 

 

1,424

 

Thereafter

 

 

7,775

 

 

66

 

 

 —

 

 

1,249

 

 

9,090

 

Total

 

$

13,848

 

 

366

 

 

18

 

 

3,438

 

 

17,670

 

(a) Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market.  These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates, or pay for any deficiencies at specified reservation fee rates.  The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.  None of these agreements were determined to be leases.

(b) Processing, Gathering, and Compression Service Commitments

The Company has entered into various long‑term gas processing, gathering and compression service agreements.  Certain of these agreements were determined to be leases.  The minimum payment obligations under the agreements that are not leases are presented in this column. 

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.  The values in the table also include minimum processing fees to be paid to the Joint Venture owned by Antero Midstream Partners and MarkWest.    

(c) Land Payment Obligations

The Company has entered into various land acquisition agreements.  Certain of these agreements contain minimum payment obligations over various terms.  The values in the table represent the minimum payments due under these arrangements.  None of these agreements were determined to be leases.

(d)  Leases, including imputed interest

The Company has obligations under contracts for services provided by drilling rigs and completion fleets, processing, gathering, and compression services agreements, and office and equipment leases.  The values in the table represent the gross amounts that we are committed to pay; however, we will record in our financial statements our proportionate share of costs based on our working interests.  Refer to Note 12 to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases.