Antero Resources Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Summary of supplemental balance sheet information related to leases

The Company’s lease assets as of March 31, 2019 consisted of the following items (in thousands):


	March 31, 2019
	Operating Leases		Finance Leases
Right-of-use Assets:
Processing plants	$	1,619,608		—
Drilling rigs and completion services		139,492		—
Gas gathering lines and compressor stations (1)		1,624,500		—
Office space		43,083		—
Vehicles		6,273		3,089
Other office and field equipment		559		1,081
Total right-of-use assets	$	3,433,515		4,170	(2)

⁽¹⁾

Gas gathering lines and compressor stations leases includes $1.4 billion related to Antero Midstream Corporation.

⁽²⁾

Financing lease assets are recorded net of accumulated amortization of $9 million as of March 31, 2019.

The Company’s lease liabilities as of March 31, 2019 consisted of the following items (in thousands):


	March 31, 2019
	Operating Leases		Finance Leases
Location on the balance sheet:
Short-term lease liabilities	$	411,310		1,793
Long-term lease liabilities		3,022,205		2,377
Total lease liabilities	$	3,433,515		4,170

Summary of costs associated with operating leases

Costs associated with operating leases were included in the statement of operations and comprehensive income for the three months ended March 31, 2019 (in thousands):



Statement of Operations Location		Three months ended March 31, 2019
Gathering, compression, processing, and transportation	$	187,847
General and administrative		2,726
Contract termination and rig stacking		8,019
Total Lease Expense	$	198,592

Summary of supplemental cash flow information related to leases

The following is the Company’s supplemental cash flow information related to leases for the three months ended March 31, 2019 (in thousands):


	Three months ended March 31, 2019
	Operating Leases		Finance Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	150,320		—
Investing cash flows from operating leases		52,366		—
Financing cash flows from financing leases		—		791
		202,686		791

Noncash activities:
Right of use assets obtained in exchange for operating lease liabilities		3,345,549		—
Right of use assets obtained in exchange for financing lease liabilities		—		—

Summary of maturities of operating lease liabilities


(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2019	$	309,040		191		309,231
2020		396,473		1,073		397,546
2021		349,212		1,430		350,642
2022		359,759		1,476		361,235
2023		377,790		—		377,790
2024		392,323		—		392,323
Thereafter		1,248,918		—		1,248,918
Total lease payments		3,433,515		4,170		3,437,685
Less: imputed interest		—		—		—
Total		3,433,515		4,170		3,437,685

Summary of maturities of financing lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2019 (in thousands):


(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2019	$	309,040		191		309,231
2020		396,473		1,073		397,546
2021		349,212		1,430		350,642
2022		359,759		1,476		361,235
2023		377,790		—		377,790
2024		392,323		—		392,323
Thereafter		1,248,918		—		1,248,918
Total lease payments		3,433,515		4,170		3,437,685
Less: imputed interest		—		—		—
Total		3,433,515		4,170		3,437,685

Summary of weighted-average remaining lease term and discount rate


	March 31, 2019
	Operating Leases			Finance Leases
Weighted-average remaining lease term:		8.7 years			1.6 years
Weighted-average discount rate:		6.0	%		5.4	%