Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.21.2
Reportable Segments
9 Months Ended
Sep. 30, 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 September 30, 2020 and 2021 (in thousands):

Three Months Ended September 30, 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

$

288,419

91,497

379,916

Intersegment

 

675

233,415

(233,415)

675

Total revenue

$

289,094

91,497

233,415

(233,415)

380,591

Operating expenses:

Lease operating

$

21,450

21,450

Gathering, compression, processing, and transportation

656,615

38,052

(38,052)

656,615

Impairment of oil and gas properties

29,392

29,392

Depletion, depreciation, and amortization

238,418

26,801

(26,801)

238,418

General and administrative

31,640

13,232

(13,232)

31,640

Other

28,605

128,580

3,513

(3,513)

157,185

Total operating expenses

1,006,120

128,580

81,598

(81,598)

1,134,700

Operating income (loss)

$

(717,026)

(37,083)

151,817

(151,817)

(754,109)

Equity in earnings of unconsolidated affiliates

$

24,419

23,173

(23,173)

24,419

Investments in unconsolidated affiliates

$

272,926

272,926

Segment assets

$

13,349,739

5,673,504

(5,673,504)

13,349,739

Capital expenditures for segment assets

$

151,269

41,851

(41,851)

151,269

Three Months Ended September 30, 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

$

301,207

232,685

242,472

(242,472)

533,892

Intersegment

 

530

(17,668)

17,668

530

Total revenue

$

301,737

232,685

224,804

(224,804)

534,422

Operating expenses:

Lease operating

$

25,363

25,363

Gathering, compression, processing, and transportation

628,225

39,499

(39,499)

628,225

Impairment of oil and gas properties

26,253

26,253

Depletion, depreciation, and amortization

182,810

27,487

(27,487)

182,810

General and administrative

32,442

14,810

(14,810)

32,442

Other

56,652

266,751

1,187

(1,187)

323,403

Total operating expenses

951,745

266,751

82,983

(82,983)

1,218,496

Operating income (loss)

$

(650,008)

(34,066)

141,821

(141,821)

(684,074)

Equity in earnings of unconsolidated affiliates

$

21,450

24,088

(24,088)

21,450

Investments in unconsolidated affiliates

$

236,597

703,780

(703,780)

236,597

Segment assets

$

13,375,515

96,023

5,533,633

(5,533,633)

13,471,538

Capital expenditures for segment assets

$

387,783

82,583

(82,583)

387,783

The operating results and assets of the Company’s reportable segments were as follows for the nine months ended September 30, 2020 and 2021 (in thousands):

Nine Months Ended September 30, 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

$

1,978,572

201,855

2,180,427

Intersegment

 

2,180

696,859

(696,859)

2,180

Total revenue

$

1,980,752

201,855

696,859

(696,859)

2,182,607

Operating expenses:

Lease operating

$

71,836

71,836

Gathering, compression, processing, and transportation

1,877,084

128,847

(128,847)

1,877,084

Impairment of oil and gas properties

155,962

155,962

Impairment of midstream assets

665,491

(665,491)

Depletion, depreciation, and amortization

652,130

81,889

(81,889)

652,130

General and administrative

101,264

39,191

(39,191)

101,264

Other

88,023

334,906

14,062

(14,062)

422,929

Total operating expenses

2,946,299

334,906

929,480

(929,480)

3,281,205

Operating loss

$

(965,547)

(133,051)

(232,621)

232,621

(1,098,598)

Equity in earnings (loss) of unconsolidated affiliates

$

(83,408)

63,197

(63,197)

(83,408)

Investments in unconsolidated affiliates

$

272,926

272,926

Segment assets

$

13,349,739

5,673,504

(5,673,504)

13,349,739

Capital expenditures for segment assets

$

726,402

165,265

(165,265)

726,402

Nine Months Ended September 30, 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

$

1,664,509

562,928

2,227,437

Intersegment

 

551

681,712

(681,712)

551

Total revenue

$

1,665,060

562,928

681,712

(681,712)

2,227,988

Operating expenses:

Lease operating

$

71,555

71,555

Gathering, compression, processing, and transportation

1,874,664

118,368

(118,368)

1,874,664

Impairment of oil and gas properties

69,618

69,618

Depletion, depreciation, and amortization

564,166

80,956

(80,956)

564,166

General and administrative

108,693

46,991

(46,991)

108,693

Other

143,954

627,822

8,590

(8,590)

771,776

Total operating expenses

2,832,650

627,822

254,905

(254,905)

3,460,472

Operating income (loss)

$

(1,167,590)

(64,894)

426,807

(426,807)

(1,232,484)

Equity in earnings of unconsolidated affiliates

$

57,621

66,347

(66,347)

57,621

Investments in unconsolidated affiliates

$

236,597

703,780

(703,780)

236,597

Segment assets

$

13,375,515

96,023

5,533,633

(5,533,633)

13,471,538

Capital expenditures for segment assets

$

510,941

156,948

(156,948)

510,941