Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.19.3.a.u2
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Information  
Segment Information

(18) Segment Information

See Note 2(t) to the consolidated financial statements for a description of the Company’s determination of its reportable segments. Revenues from gathering and processing and water handling and treatment operations were primarily derived from intersegment transactions for services provided to the Company’s exploration and production operations prior to the closing of the Transactions. Through March 12, 2019, the results of Antero Midstream Partners were included in the consolidated financial statements of Antero Resources. Effective March 13, 2019, the results of Antero Midstream Partners are no longer consolidated in Antero Resources’ result; however, the Company’s segment disclosures include the results of our unconsolidated affiliates due to their significance to the Company’s operations. See Note 3 to the consolidated financial statements for further discussion on the Transactions. Marketing revenues are primarily derived from activities to purchase and sell third-party natural gas and NGLs and to market excess firm transportation capacity to third parties.

Operating segments are evaluated based on their contribution to consolidated results, which is primarily determined by the respective operating income (loss) of each segment. General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures, and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income, income taxes, and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2 to the consolidated financial statements.

The operating results and assets of the Company’s reportable segments were as follows for the years ended December 31, 2017, 2018 and 2019 (in thousands):

    

Exploration

Elimination of

 

and

intersegment

Consolidated

    

production

Marketing

Midstream

transactions

total

 

Year ended December 31, 2017:

Sales and revenues:

Third-party

$

3,406,203

236,651

12,720

 

3,655,574

Intersegment

 

17,358

759,777

(777,135)

 

Total

$

3,423,561

 

236,651

 

772,497

 

(777,135)

 

3,655,574

Operating expenses:

Lease operating

$

93,758

189,702

(194,403)

89,057

Gathering, compression, processing, and transportation

1,441,129

39,147

(384,637)

 

1,095,639

Impairment of oil and gas properties

159,598

159,598

Impairment of midstream assets

23,431

23,431

Depletion, depreciation, and amortization

704,152

120,458

 

824,610

General and administrative

195,153

58,812

(2,769)

251,196

Other

101,980

366,281

17,165

(13,476)

471,950

Total

2,695,770

366,281

448,715

(595,285)

2,915,481

Operating income (loss)

$

727,791

 

(129,630)

 

323,782

 

(181,850)

740,093

Equity in earnings of unconsolidated affiliates

$

20,194

20,194

Segment assets

$

13,074,027

36,701

3,057,459

(906,697)

15,261,490

Capital expenditures for segment assets

$

1,859,481

540,719

(183,447)

2,216,753

    

Exploration

Elimination of

and

intersegment

Consolidated

    

production

Marketing

Midstream

transactions

total

Year ended December 31, 2018:

Sales and revenues:

Third-party

$

3,565,300

552,982

21,344

 

4,139,626

Intersegment

 

(87,472)

1,007,178

(919,706)

 

Total

$

3,477,828

 

552,982

 

1,028,522

 

(919,706)

 

4,139,626

Operating expenses:

Lease operating

$

142,234

262,704

(268,785)

136,153

Gathering, compression, processing, and transportation

1,792,898

49,550

(503,090)

 

1,339,358

Impairment of oil and gas properties

549,437

549,437

Impairment of midstream assets

9,658

9,658

Depletion, depreciation, and amortization

841,645

130,820

 

972,465

General and administrative

181,305

61,629

(2,590)

240,344

Other

129,947

686,055

(88,715)

93,019

820,306

Total

3,637,466

686,055

425,646

(681,446)

4,067,721

Operating income (loss)

$

(159,638)

 

(133,073)

 

602,876

 

(238,260)

71,905

Equity in earnings of unconsolidated affiliates

$

40,280

40,280

Segment assets

$

12,986,945

34,499

3,542,862

(1,044,842)

15,519,464

Capital expenditures for segment assets

$

1,923,488

542,112

(255,014)

2,210,586

Equity Method

Elimination of

Investment in

intersegment

Antero

transactions and

Exploration

Midstream

unconsolidated

Consolidated

and production

Marketing

Corporation

affiliates

total

Year ended December 31, 2019:

Sales and revenues:

Third-party

$

4,107,845

292,207

50

 

4,400,102

Intersegment

 

5,812

792,538

(789,762)

 

8,588

Total

$

4,113,657

 

292,207

 

792,588

 

(789,762)

 

4,408,690

Operating expenses:

Lease operating

$

146,990

162,376

(163,646)

145,720

Gathering, compression, processing, and transportation

2,257,099

41,013

(151,465)

 

2,146,647

Impairment of oil and gas properties

1,300,444

1,300,444

Impairment of midstream assets

776,832

(762,050)

14,782

Depletion, depreciation, and amortization

893,161

95,526

(73,820)

 

914,867

General and administrative

160,402

118,113

(99,819)

178,696

Other

143,762

549,814

12,093

(11,090)

694,579

Total

4,901,858

549,814

1,205,953

(1,261,890)

5,395,735

Operating income (loss)

$

(788,201)

 

(257,607)

 

(413,365)

 

472,128

(987,045)

Equity in earnings (loss) of unconsolidated affiliates

$

51,315

(194,531)

(143,216)

Investments in unconsolidated affiliates

$

709,639

345,538

1,055,177

Segment assets

$

14,121,523

20,869

6,282,878

(5,227,701)

15,197,569

Capital expenditures for segment assets

$

1,369,003

391,990

(338,838)

1,422,155