Quarterly report pursuant to Section 13 or 15(d)

Commitments

v3.10.0.1
Commitments
6 Months Ended
Jun. 30, 2018
Commitments  
Commitments

(12)Commitments

The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, as well as leases that have remaining lease terms in excess of one year as of June 30, 2018 (in millions).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Firm
transportation

  

Processing,
gathering and
compression

  

Drilling rigs and completion
services

  

Office and equipment

  

 

 

(in millions)

 

(a)

 

(b)

 

(c)

 

(d)

 

Total

 

Remainder of 2018

 

$

440

 

 

241

 

 

37

 

 

 7

 

 

725

 

2019

 

 

1,087

 

 

360

 

 

45

 

 

11

 

 

1,503

 

2020

 

 

1,107

 

 

378

 

 

 1

 

 

10

 

 

1,496

 

2021

 

 

1,087

 

 

363

 

 

 —

 

 

 9

 

 

1,459

 

2022

 

 

1,034

 

 

359

 

 

 —

 

 

 8

 

 

1,401

 

2023

 

 

1,022

 

 

351

 

 

 —

 

 

 7

 

 

1,380

 

Thereafter

 

 

8,611

 

 

1,521

 

 

 —

 

 

49

 

 

10,181

 

Total

 

$

14,388

 

 

3,573

 

 

83

 

 

101

 

 

18,145

 

 

(a) Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market.  These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates, or pay for any deficiencies at specified reservation fee rates.  The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(b) Processing, Gathering, and Compression Service Commitments

The Company has entered into various long‑term gas processing agreements for certain of its production that will allow it to realize the value of its NGLs.  The minimum payment obligations under the agreements are presented in the table.

The Company has various gathering and compression service agreements with third parties that provide for payments based on volumes gathered or compressed.  The minimum payment obligations under these agreements are presented in the table.

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.  The values in the table also include minimum processing fees to be paid to the Joint Venture owned by Antero Midstream and MarkWest, and Antero Midstream’s commitments for the construction of its advanced wastewater treatment facility, which was placed in service in May 2018.  The wastewater treatment facility was temporarily taken offline in June 2018 for maintenance and to install additional pretreatment facilities to improve operations.  The facility was placed back into commercial service at the end of July 2018.  The table does not include intracompany commitments.  Future capital contributions to unconsolidated affiliates are excluded from the table as neither the amounts nor the timing of the obligations can be determined in advance.

(c) Drilling Rigs and Completion Services Commitments

The Company has obligations under agreements with service providers to procure drilling rigs and completion services.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(d) Office and Equipment Leases

The Company leases various office space and equipment under capital and operating lease arrangements.