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

(14) Reportable Segments

The Company’s operations, which are located in the United States, are organized into two reportable segments: (i) gathering and processing and (ii) water handling.

Gathering and Processing

The gathering and processing segment includes a network of gathering pipelines and compressor stations that collect and process production from Antero Resources’ wells in West Virginia and Ohio. The gathering and processing segment also includes equity in earnings from the Company’s investments in the Joint Venture and Stonewall.

Water Handling

The Company’s water handling segment includes two independent systems that deliver fresh water from sources including the Ohio River, local reservoirs and several regional waterways. The water handling segment also includes the Clearwater Facility that was placed in service in 2018 and idled in September 2019, as well as other fluid handling services, which includes high rate transfer, wastewater transportation, disposal and blending. See Note 6—Property and Equipment.

These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income. Interest expense is primarily managed and evaluated on a consolidated basis.

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

Three Months Ended March 31, 2020

Gathering and

Water

Consolidated

(in thousands)

    

Processing

    

Handling

    

Unallocated (1)

Total

Revenues:

Revenue–Antero Resources

$

163,129

98,184

261,313

Amortization of customer relationships

(9,238)

(8,367)

(17,605)

Total revenues

153,891

89,817

243,708

Operating expenses:

Direct operating

13,391

35,337

48,728

General and administrative (excluding equity-based compensation)

5,044

2,905

2,250

10,199

Equity-based compensation

2,533

555

250

3,338

Facility idling

8,678

8,678

Impairment of goodwill

575,461

575,461

Impairment of property and equipment

89,083

89,083

Depreciation

13,050

14,293

27,343

Accretion of asset retirement obligations

42

42

Total operating expenses

609,479

150,893

2,500

762,872

Operating loss

$

(455,588)

(61,076)

(2,500)

(519,164)

Equity in earnings of unconsolidated affiliates

$

19,077

19,077

Total assets

$

4,347,932

1,184,095

249,332

5,781,359

Additions to property and equipment

$

54,659

13,324

67,983

(1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis.

Three Months Ended March 31, 2021

Gathering and

Water

Consolidated

(in thousands)

    

Processing

    

Handling

    

Unallocated (1)

Total

Revenues:

Revenue–Antero Resources

$

185,161

56,603

241,764

Revenue–third-party

25

25

Amortization of customer relationships

(9,271)

(8,397)

(17,668)

Total revenues

175,890

48,231

224,121

Operating expenses:

Direct operating

17,236

22,078

39,314

General and administrative (excluding equity-based compensation)

5,924

6,620

1,374

13,918

Equity-based compensation

2,725

1,060

227

4,012

Facility idling

1,179

1,179

Impairment of property and equipment

1,218

161

1,379

Depreciation

14,713

12,137

26,850

Accretion of asset retirement obligations

119

119

Loss on asset sale

3,763

3,763

Total operating expenses

45,579

43,354

1,601

90,534

Operating income

$

130,311

4,877

(1,601)

133,587

Equity in earnings of unconsolidated affiliates

$

20,744

20,744

Total assets

$

4,347,966

1,122,312

76,482

5,546,760

Additions to property and equipment, net

$

15,059

13,330

28,389

(1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis.