Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.21.1
Reportable Segments
3 Months Ended
Mar. 31, 2021
Reportable Segments  
Reportable Segments

(16) Reportable Segments

Management evaluated how the Company is organized and managed and identified the following segments: (i) the exploration, development, and production of natural gas, NGLs, and oil; (ii) marketing and utilization of excess firm transportation capacity and (iii) midstream services through the Company’s equity method investment in Antero Midstream Corporation. All of the Company’s assets are located in the United States and substantially all of its production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption.

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—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements.

The operating results and assets of the Company’s reportable segments were as follows for the three months ended March 31, 2020 and 2021 (in thousands):

Three Months Ended March 31, 2020

Equity Method

Elimination of

Investment in

Intersegment

Exploration

Antero

Transactions and

and

Midstream

Unconsolidated

Consolidated

 

Production

 

Marketing

 

Corporation

 

Affiliates

 

Total

Sales and revenues:

Third-party

$

1,270,234

46,073

1,316,307

Intersegment

 

798

243,708

(243,708)

798

Total

$

1,271,032

46,073

243,708

(243,708)

1,317,105

Operating expenses:

Lease operating

$

25,644

25,644

Gathering, compression, processing, and transportation

588,624

55,908

(55,908)

588,624

Impairment of oil and gas properties

89,220

89,220

Impairment of midstream assets

664,544

(664,544)

Depletion, depreciation, and amortization

199,677

27,343

(27,343)

199,677

General and administrative

31,221

13,537

(13,537)

31,221

Other

27,013

93,273

4,836

(4,836)

120,286

Total

961,399

93,273

766,168

(766,168)

1,054,672

Operating income (loss)

$

309,633

(47,200)

(522,460)

522,460

262,433

Equity in earnings (loss) of unconsolidated affiliates

$

(128,055)

19,077

(19,077)

(128,055)

Investments in unconsolidated affiliates

$

291,989

716,778

(716,778)

291,989

Segment assets

$

14,516,150

9,639

5,781,359

(5,781,359)

14,525,789

Capital expenditures for segment assets

$

311,611

67,983

(67,983)

311,611

Three Months Ended March 31, 2021

Equity Method

Elimination of

Investment in

Intersegment

Exploration

Antero

Transactions and

and

Midstream

Unconsolidated

Consolidated

 

Production

 

Marketing

 

Corporation

 

Affiliates

 

Total

Sales and revenues:

Third-party

$

1,038,768

164,790

1,203,558

Intersegment

 

640

224,121

(224,121)

640

Total

$

1,039,408

164,790

224,121

(224,121)

1,204,198

Operating expenses:

Lease operating

$

24,547

24,547

Gathering, compression, processing, and transportation

605,077

39,314

(39,314)

605,077

Impairment of oil and gas properties

34,062

34,062

Impairment of midstream assets

1,379

(1,379)

Depletion, depreciation, and amortization

194,026

26,850

(26,850)

194,026

General and administrative

44,074

17,930

(17,930)

44,074

Other

45,795

162,077

5,061

(5,061)

207,872

Total

947,581

162,077

90,534

(90,534)

1,109,658

Operating income

$

91,827

2,713

133,587

(133,587)

94,540

Equity in earnings of unconsolidated affiliates

$

18,694

20,744

(20,744)

18,694

Investments in unconsolidated affiliates

$

241,158

712,069

(712,069)

241,158

Segment assets

$

13,000,382

5,546,760

(5,546,760)

13,000,382

Capital expenditures for segment assets

$

123,158

28,389

(28,389)

123,158