Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.21.1
Leases (Tables)
3 Months Ended
Mar. 31, 2021
Leases  
Summary of supplemental balance sheet information related to leases

The Company’s lease assets and liabilities as of December 31, 2020 and March 31, 2021 consisted of the following items (in thousands):

December 31,

March 31,

Leases

 

Balance Sheet Classification

 

2020

 

2021

Operating Leases

Operating lease right-of-use assets:

Processing plants

Operating lease right-of-use assets

$

1,302,290

1,279,755

Drilling rigs and completion services

Operating lease right-of-use assets

29,894

22,632

Gas gathering lines and compressor stations (1)

Operating lease right-of-use assets

1,241,090

1,208,252

Office space

Operating lease right-of-use assets

36,879

35,959

Vehicles

Operating lease right-of-use assets

2,704

2,024

Other office and field equipment

Operating lease right-of-use assets

746

675

Total operating lease right-of-use assets

$

2,613,603

2,549,297

Short-term operating lease obligation

Short-term lease liabilities

$

265,178

264,858

Long-term operating lease obligation

Long-term lease liabilities

2,348,425

2,284,439

Total operating lease obligation

$

2,613,603

2,549,297

Finance Leases

Finance lease right-of-use assets:

Vehicles

Other property and equipment

$

1,206

934

Total finance lease right-of-use assets (2)

$

1,206

934

Short-term finance lease obligation

Short-term lease liabilities

$

845

693

Long-term finance lease obligation

Long-term lease liabilities

361

241

Total finance lease obligation

$

1,206

934

(1) Gas gathering lines and compressor stations leases includes $1.1 billion related to Antero Midstream Corporation as of December 31, 2020 and March 31, 2021. See “—Related party lease disclosure” for additional discussion.
(2) Financing lease assets are recorded net of accumulated amortization of $3 million as of both December 31, 2020 and March 31, 2021.
Summary of costs associated with operating leases

Costs associated with operating leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2020 and 2021 (in thousands):

Three Months Ended

March 31,

Cost

 

Classification

 

Location

 

2020

 

2021

Operating lease cost

Statement of operations

Gathering, compression, processing, and transportation

$

352,643

376,930

Operating lease cost

Statement of operations

General and administrative

2,881

2,488

Operating lease cost

Statement of operations

Lease operating

22

Operating lease cost

Balance sheet

Proved properties (1)

32,994

28,759

Total operating lease cost

$

388,518

408,199

Finance lease cost:

Amortization of right-of-use assets

Statement of operations

Depletion, depreciation, and amortization

$

145

127

Interest on lease liabilities

Statement of operations

Interest expense

36

28

Total finance lease cost

$

181

155

Short-term lease payments

$

62,717

16,842

(1) Capitalized costs related to drilling and completion activities.
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, 2020 and 2021 (in thousands):

Three Months Ended March 31,

 

2020

 

2021

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$

358,039

388,983

Investing cash flows from operating leases

27,534

24,027

Financing cash flows from finance leases

439

265

Noncash activities:

Right-of-use assets obtained in exchange for new operating lease obligations

$

9,382

28

Summary of maturities of operating lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2021 (in thousands):

Operating Leases

Financing Leases

Total

Remainder of 2021

$

457,065

612

457,677

2022

579,086

366

579,452

2023

575,235

9

575,244

2024

566,467

566,467

2025

493,790

493,790

2026

442,971

442,971

Thereafter

1,115,499

1,115,499

Total lease payments

4,230,113

987

4,231,100

Less: imputed interest

(1,680,816)

(53)

(1,680,869)

Total

$

2,549,297

934

2,550,231

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, 2021 (in thousands):

Operating Leases

Financing Leases

Total

Remainder of 2021

$

457,065

612

457,677

2022

579,086

366

579,452

2023

575,235

9

575,244

2024

566,467

566,467

2025

493,790

493,790

2026

442,971

442,971

Thereafter

1,115,499

1,115,499

Total lease payments

4,230,113

987

4,231,100

Less: imputed interest

(1,680,816)

(53)

(1,680,869)

Total

$

2,549,297

934

2,550,231

Summary of weighted-average remaining lease term and discount rate

December 31, 2020

March 31, 2021

Operating Leases

Finance Leases

Operating Leases

Finance Leases

Weighted-average remaining lease term

8.0 years

1.5 years

7.7 years

1.3 years

Weighted-average discount rate

13.7

%

6.2

%

13.8

%

6.2

%