| Schedule of reconciliation of investments in unconsolidated affiliates |
The following table is a reconciliation of investments in unconsolidated affiliates for the years ending December 31, 2018 and 2019 in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MarkWest |
|
Antero Midstream |
|
|
|
|
|
Stonewall (1) |
|
Joint Venture |
|
Corporation (2) |
|
Total |
|
Balance at December 31, 2017 |
|
$ |
67,128 |
|
|
236,174 |
|
|
— |
|
|
303,302 |
|
Investments (3) |
|
|
— |
|
|
136,475 |
|
|
— |
|
|
136,475 |
|
Equity in net income of unconsolidated affiliates |
|
|
10,740 |
|
|
29,540 |
|
|
— |
|
|
40,280 |
|
Distributions from unconsolidated affiliates |
|
|
(9,765) |
|
|
(36,650) |
|
|
— |
|
|
(46,415) |
|
Balance at December 31, 2018 |
|
$ |
68,103 |
|
|
365,539 |
|
|
— |
|
|
433,642 |
|
Investments (3) |
|
|
— |
|
|
25,020 |
|
|
— |
|
|
25,020 |
|
Equity in net income (loss) of unconsolidated affiliates |
|
|
1,894 |
|
|
10,370 |
|
|
(155,480) |
|
|
(143,216) |
|
Distributions/dividends from unconsolidated affiliates |
|
|
(3,000) |
|
|
(9,605) |
|
|
(145,351) |
|
|
(157,956) |
|
Return of investment (4) |
|
|
— |
|
|
— |
|
|
(208,745) |
|
|
(208,745) |
|
Impairment (5) |
|
|
— |
|
|
— |
|
|
(467,590) |
|
|
(467,590) |
|
Elimination of intercompany profit |
|
|
— |
|
|
— |
|
|
44,548 |
|
|
44,548 |
|
Effects of deconsolidation (6) |
|
|
(66,997) |
|
|
(391,324) |
|
|
1,987,795 |
|
|
1,529,474 |
|
Balance at December 31, 2019 |
|
$ |
— |
|
|
— |
|
|
1,055,177 |
|
|
1,055,177 |
|
| (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 Corporation and the amount of underlying equity in the net assets of Antero Midstream Partners as of the date of deconsolidation and as adjusted for the return of investment. |
| (3) |
Investments in the Joint Venture during the year ended December 31, 2019 relate to capital contributions for construction of additional processing facilities.
|
| (4) |
In December 2019, Antero Midstream Corporation repurchased $100 million of its shares of common stock from the Company resulting in a return of investment. The Company recorded an $109 million loss on investment due to the carrying value exceeding the fair value of the stock repurchased.
|
| (5) |
Other-than-temporary impairment in Antero Midstream Corporation recorded as of December 31, 2019 to reduce the carrying value to fair value. |
| (6) |
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. |
|
| Schedule of summarized financial information of Antero Midstream Corporation |
Balance Sheet
|
|
|
|
|
|
|
December 31, |
|
(in thousands) |
|
2019 |
|
Current assets |
|
$ |
108,558 |
|
Noncurrent assets |
|
|
6,174,320 |
|
Total assets |
|
$ |
6,282,878 |
|
|
|
|
|
|
Current liabilities |
|
$ |
242,084 |
|
Noncurrent liabilities |
|
|
2,897,380 |
|
Stockholders' equity |
|
|
3,143,414 |
|
Total liabilities and equity |
|
$ |
6,282,878 |
|
Statement of Operations
|
|
|
|
|
|
|
For the period |
|
|
|
March 13, 2019 |
|
|
|
through |
|
(in thousands) |
|
December 31, 2019 |
|
Revenues |
|
$ |
792,588 |
|
Operating expenses |
|
|
1,177,610 |
|
Loss from operations |
|
$ |
(385,022) |
|
Net loss attributable to the equity method investments |
|
$ |
(341,565) |
|
|