Antero Resources Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Subsidiary Guarantors (Tables)

Subsidiary Guarantors (Tables)

3 Months Ended

Mar. 31, 2017

Subsidiary Guarantors

Schedule of condensed consolidated balance sheets

Condensed Consolidating Balance Sheet

December 31, 2016

(In thousands)


	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	17,568		—		14,042		—		31,610
Accounts receivable, net		28,442		—		1,240		—		29,682
Intercompany receivables		3,193		—		64,139		(67,332)		—
Accrued revenue		261,960		—		—		—		261,960
Derivative instruments		73,022		—		—		—		73,022
Other current assets		5,784		—		529		—		6,313
Total current assets		389,969		—		79,950		(67,332)		402,587
Property and equipment:
Natural gas properties, at cost (successful efforts method):
Unproved properties		2,331,173		—		—		—		2,331,173
Proved properties		9,726,957		—		—		(177,286)		9,549,671
Water handling and treatment systems		—		—		744,682		—		744,682
Gathering systems and facilities		17,929		—		1,705,839		—		1,723,768
Other property and equipment		41,231		—		—		—		41,231
		12,117,290		—		2,450,521		(177,286)		14,390,525
Less accumulated depletion, depreciation, and amortization		(2,109,136)		—		(254,642)		—		(2,363,778)
Property and equipment, net		10,008,154		—		2,195,879		(177,286)		12,026,747
Derivative instruments		1,731,063		—		—		—		1,731,063
Investments in subsidiaries		(420,429)		—		—		420,429		—
Contingent acquisition consideration		194,538		—		—		(194,538)		—
Investments in unconsolidated affiliates		—		—		68,299		—		68,299
Other assets, net		21,087		—		5,767		—		26,854
Total assets	$	11,924,382		—		2,349,895		(18,727)		14,255,550

Liabilities and Equity
Current liabilities:
Accounts payable	$	21,648		—		16,979		—		38,627
Intercompany payable		64,139		—		3,193		(67,332)		—
Accrued liabilities		332,162		—		61,641		—		393,803
Revenue distributions payable		163,989		—		—		—		163,989
Derivative instruments		203,635		—		—		—		203,635
Other current liabilities		17,134		—		200		—		17,334
Total current liabilities		802,707		—		82,013		(67,332)		817,388
Long-term liabilities:
Long-term debt		3,854,059		—		849,914		—		4,703,973
Deferred income tax liability		950,217		—		—		—		950,217
Contingent acquisition consideration		—		—		194,538		(194,538)		—
Derivative instruments		234		—		—		—		234
Other liabilities		54,540		—		620		—		55,160
Total liabilities		5,661,757		—		1,127,085		(261,870)		6,526,972
Equity:
Stockholders' equity:
Partners' capital		—		—		1,222,810		(1,222,810)		—
Common stock		3,149		—		—		—		3,149
Additional paid-in capital		5,299,481		—		—		—		5,299,481
Accumulated earnings		959,995		—		—		—		959,995
Total stockholders' equity		6,262,625		—		1,222,810		(1,222,810)		6,262,625
Noncontrolling interest in consolidated subsidiary		—		—		—		1,465,953		1,465,953
Total equity		6,262,625		—		1,222,810		243,143		7,728,578
Total liabilities and equity	$	11,924,382		—		2,349,895		(18,727)		14,255,550

Condensed Consolidating Balance Sheet

March 31, 2017

(In thousands)


	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		—		—		—		—
Accounts receivable, net		35,674		—		1,200		—		36,874
Intercompany receivables		2,428		—		71,500		(73,928)		—
Accrued revenue		220,059		—		—		—		220,059
Derivative instruments		237,086		—		—		—		237,086
Other current assets		9,181		—		498		—		9,679
Total current assets		504,428		—		73,198		(73,928)		503,698
Property and equipment:
Natural gas properties, at cost (successful efforts method):
Unproved properties		2,330,010		—		—		—		2,330,010
Proved properties		10,163,965		—		—		(221,515)		9,942,450
Water handling and treatment systems		—		—		771,239		—		771,239
Gathering systems and facilities		17,928		—		1,767,741		—		1,785,669
Other property and equipment		42,290		—		—		—		42,290
		12,554,193		—		2,538,980		(221,515)		14,871,658
Less accumulated depletion, depreciation, and amortization		(2,284,181)		—		(282,178)		—		(2,566,359)
Property and equipment, net		10,270,012		—		2,256,802		(221,515)		12,305,299
Derivative instruments		1,811,435		—		—		—		1,811,435
Investments in subsidiaries		632,905		—		—		(632,905)		—
Contingent acquisition consideration		198,064		—		—		(198,064)		—
Investments in unconsolidated affiliates		—		—		230,418		—		230,418
Other assets, net		26,530		—		11,274		—		37,804
Total assets	$	13,443,374		—		2,571,692		(1,126,412)		14,888,654

Liabilities and Equity
Current liabilities:
Accounts payable	$	24,194		—		13,512		—		37,706
Intercompany payable		71,500		—		2,428		(73,928)		—
Accrued liabilities		369,505		—		47,083		—		416,588
Revenue distributions payable		198,775		—		—		—		198,775
Derivative instruments		54,277		—		—		—		54,277
Other current liabilities		15,904		—		186		—		16,090
Total current liabilities		734,155		—		63,209		(73,928)		723,436
Long-term liabilities:
Long-term debt		3,935,123		—		840,179		—		4,775,302
Deferred income tax liability		1,081,563		—		—		—		1,081,563
Contingent acquisition consideration		—		—		198,064		(198,064)		—
Derivative instruments		102		—		—		—		102
Other liabilities		53,732		—		567		—		54,299
Total liabilities		5,804,675		—		1,102,019		(271,992)		6,634,702
Equity:
Stockholders' equity:
Partners' capital		—		—		1,469,673		(1,469,673)		—
Common stock		3,150		—		—		—		3,150
Additional paid-in capital		6,407,158		—		—		—		6,407,158
Accumulated earnings		1,228,391		—		—		—		1,228,391
Total stockholders' equity		7,638,699		—		1,469,673		(1,469,673)		7,638,699
Noncontrolling interest in consolidated subsidiary		—		—		—		615,253		615,253
Total equity		7,638,699		—		1,469,673		(854,420)		8,253,952
Total liabilities and equity	$	13,443,374		—		2,571,692		(1,126,412)		14,888,654

Schedule of condensed consolidated statement of operations and comprehensive income (loss)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Three Months Ended March 31, 2016

(In thousands)


	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue and other:
Natural gas sales	$	254,776		—		—		—		254,776
Natural gas liquids sales		73,065		—		—		—		73,065
Oil sales		10,179		—		—		—		10,179
Gathering, compression, and water handling and treatment		—		—		136,073		(132,229)		3,844
Marketing		99,216		—		—		—		99,216
Commodity derivative fair value gains		279,924		—		—		—		279,924
Other income		3,825		—		—		(3,825)		—
Total revenue and other		720,985		—		136,073		(136,054)		721,004
Operating expenses:
Lease operating		11,332		—		40,714		(40,753)		11,293
Gathering, compression, processing, and transportation		267,445		—		7,170		(65,877)		208,738
Production and ad valorem taxes		18,027		—		1,257		—		19,284
Marketing		137,933		—		—		—		137,933
Exploration		1,014		—		—		—		1,014
Impairment of unproved properties		15,526		—		—		—		15,526
Depletion, depreciation, and amortization		167,759		—		23,823		—		191,582
Accretion of asset retirement obligations		598		—		—		—		598
General and administrative		43,552		—		13,091		(356)		56,287
Accretion of contingent acquisition consideration		—		—		3,396		(3,396)		—
Total operating expenses		663,186		—		89,451		(110,382)		642,255
Operating income		57,799		—		46,622		(25,672)		78,749
Other income (expenses):
Interest		(59,823)		—		(3,704)		243		(63,284)
Equity in net income of subsidiaries		1,784		—		—		(1,784)		—
Total other expenses		(58,039)		—		(3,704)		(1,541)		(63,284)
Income (loss) before income taxes		(240)		—		42,918		(27,213)		15,465
Provision for income tax expense		(4,815)		—		—		—		(4,815)
Net income (loss) and comprehensive income (loss) including noncontrolling interest		(5,055)		—		42,918		(27,213)		10,650
Net income and comprehensive income attributable to noncontrolling interest		—		—		—		15,705		15,705
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation	$	(5,055)		—		42,918		(42,918)		(5,055)

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended March 31, 2017

(In thousands)


	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue and other:
Natural gas sales	$	466,664		—		—		—		466,664
Natural gas liquids sales		194,652		—		—		—		194,652
Oil sales		26,960		—		—		—		26,960
Gathering, compression, and water handling and treatment		—		—		174,769		(172,165)		2,604
Marketing		65,924		—		—		—		65,924
Commodity derivative fair value losses		438,775		—		—		—		438,775
Other income		4,440		—		—		(4,440)		—
Total revenue and other		1,197,415		—		174,769		(176,605)		1,195,579
Operating expenses:
Lease operating		15,742		—		38,622		(38,813)		15,551
Gathering, compression, processing, and transportation		347,768		—		8,114		(89,053)		266,829
Production and ad valorem taxes		23,975		—		818		—		24,793
Marketing		89,993		—		—		—		89,993
Exploration		2,107		—		—		—		2,107
Impairment of unproved properties		26,899		—		—		—		26,899
Depletion, depreciation, and amortization		175,193		—		27,536		—		202,729
Accretion of asset retirement obligations		637		—		—		—		637
General and administrative		51,056		—		14,457		(815)		64,698
Accretion of contingent acquisition consideration		—		—		3,526		(3,526)		—
Total operating expenses		733,370		—		93,073		(132,207)		694,236
Operating income		464,045		—		81,696		(44,398)		501,343
Other income (expenses):
Equity in earnings of unconsolidated affiliates		—		—		2,231		—		2,231
Interest		(58,003)		—		(8,836)		169		(66,670)
Equity in net income of subsidiaries		(6,300)		—		—		6,300		—
Total other expenses		(64,303)		—		(6,605)		6,469		(64,439)
Income before income taxes		399,742		—		75,091		(37,929)		436,904
Provision for income tax expense		(131,346)		—		—		—		(131,346)
Net income and comprehensive income including noncontrolling interest		268,396		—		75,091		(37,929)		305,558
Net income and comprehensive income attributable to noncontrolling interest		—		—		—		37,162		37,162
Net income and comprehensive income attributable to Antero Resources Corporation	$	268,396		—		75,091		(75,091)		268,396

Schedule of condensed consolidated statement of cash flows

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2016

(In thousands)

Parent

Guarantor
Subsidiaries