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

(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 and nine months ended September 30, 2020 and 2021:

Three Months Ended September 30, 2020

Gathering and

Water

Consolidated

(in thousands)

  

Processing

  

Handling

  

Unallocated (1)

  

Total

Revenues:

Revenue–Antero Resources

$

190,214

61,001

251,215

Amortization of customer relationships

(9,342)

(8,458)

(17,800)

Total revenues

180,872

52,543

233,415

Operating expenses:

Direct operating

16,078

21,974

38,052

General and administrative

8,137

3,100

1,995

13,232

Facility idling

2,527

2,527

Impairment of property and equipment

947

947

Depreciation

14,900

11,901

26,801

Accretion of asset retirement obligations

39

39

Total operating expenses

40,062

39,541

1,995

81,598

Operating income

$

140,810

13,002

(1,995)

151,817

Equity in earnings of unconsolidated affiliates

$

23,173

23,173

Total assets

$

4,383,313

1,146,687

143,504

5,673,504

Additions to property and equipment

$

34,041

7,810

41,851

(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 September 30, 2021

Gathering and

Water

Consolidated

(in thousands)

   

Processing

   

Handling

   

Unallocated (1)

  

Total

Revenues:

Revenue–Antero Resources

$

188,716

53,511

242,227

Revenue–third-party

245

245

Amortization of customer relationships

(9,271)

(8,397)

(17,668)

Total revenues

179,445

45,359

224,804

Operating expenses:

Direct operating

16,161

23,338

39,499

General and administrative

9,076

4,554

1,180

14,810

Facility idling

870

870

Impairment of property and equipment

203

203

Depreciation

15,151

12,336

27,487

Accretion of asset retirement obligations

114

114

Total operating expenses

40,388

41,415

1,180

82,983

Operating income

$

139,057

3,944

(1,180)

141,821

Equity in earnings of unconsolidated affiliates

$

24,088

24,088

Total assets

$

4,416,828

1,100,884

15,921

5,533,633

Additions to property and equipment, net

$

69,069

13,514

82,583

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

Nine Months Ended September 30, 2020

Gathering and

Water

Consolidated

(in thousands)

    

Processing

    

Handling

    

Unallocated (1)

Total

Revenues:

Revenue–Antero Resources

$

527,334

222,536

749,870

Amortization of customer relationships

(27,819)

(25,192)

(53,011)

Total revenues

499,515

197,344

696,859

Operating expenses:

Direct operating

43,528

85,319

128,847

General and administrative

23,420

9,685

6,086

39,191

Facility idling

13,680

13,680

Impairment of goodwill

575,461

575,461

Impairment of property and equipment

947

89,083

90,030

Depreciation

42,356

39,533

81,889

Accretion of asset retirement obligations

142

142

Loss on asset sale

240

240

Total operating expenses

685,712

237,682

6,086

929,480

Operating loss

$

(186,197)

(40,338)

(6,086)

(232,621)

Equity in earnings of unconsolidated affiliates

$

63,197

63,197

Total assets

$

4,383,313

1,146,687

143,504

5,673,504

Additions to property and equipment

$

137,978

27,287

165,265

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

Nine Months Ended September 30, 2021

Gathering and

Water

Consolidated

(in thousands)

    

Processing

    

Handling

    

Unallocated (1)

Total

Revenues:

Revenue–Antero Resources

$

566,544

167,832

734,376

Revenue–third-party

340

340

Amortization of customer relationships

(27,813)

(25,191)

(53,004)

Total revenues

538,731

142,981

681,712

Operating expenses:

Direct operating

50,409

67,959

118,368

General and administrative

26,459

17,107

3,425

46,991

Facility idling

3,033

3,033

Impairment of property and equipment

1,218

364

1,582

Depreciation

44,268

36,688

80,956

Accretion of asset retirement obligations

347

347

Loss on asset sale

3,628

3,628

Total operating expenses

125,982

125,498

3,425

254,905

Operating income

$

412,749

17,483

(3,425)

426,807

Equity in earnings of unconsolidated affiliates

$

66,347

66,347

Total assets

$

4,416,828

1,100,884

15,921

5,533,633

Additions to property and equipment, net

$

120,727

36,221

156,948

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