Quarterly report pursuant to Section 13 or 15(d)

Reporting Segments

v3.19.2
Reporting Segments
6 Months Ended
Jun. 30, 2019
Reporting Segments  
Reporting Segments

(16) Reporting Segments

Prior to the closing of the Transactions, AMGP had no reporting segment results. Following the completion of the Transactions, the Company’s operations, which are located in the United States, are organized into two reporting segments: (1) gathering and processing and (2) water handling and treatment.

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 and Treatment

The Company’s water handling and treatment segment includes two independent systems that deliver fresh water from sources including the Ohio River, local reservoirs as well as several regional waterways. The water handling and treatment segment also includes a wastewater treatment facility that was placed in service in 2018, as well as other fluid handling services, which includes high rate transfer, wastewater transportation, disposal and treatment. 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.

Summarized financial information concerning the Company’s segments for the periods indicated is shown in the following table (in thousands):

Water

Gathering and

Handling and

Consolidated

    

Processing

    

Treatment

    

Unallocated (1)

    

Total

Three months ended June 30, 2019

Revenues:

Revenue–Antero Resources

$

168,925

95,181

264,106

Revenue–third-party

46

46

Amortization of customer contracts

(2,402)

(6,132)

(8,534)

Total revenues

166,523

89,095

255,618

Operating expenses:

Direct operating

12,377

51,621

63,998

General and administrative (excluding equity-based compensation)

7,335

3,958

1,786

13,079

Equity-based compensation

2,286

926

18,331

21,543

Impairment of property and equipment

592

2

594

Depreciation

12,721

23,726

36,447

Accretion and change in fair value of contingent acquisition consideration

2,297

2,297

Accretion of asset retirement obligations

69

69

Total expenses

35,311

82,599

20,117

138,027

Operating income

$

131,212

6,496

(20,117)

117,591

Equity in earnings of unconsolidated affiliates

$

13,623

13,623

Total assets

$

4,916,854

1,844,385

7,770

6,769,009

Additions to property and equipment

$

81,529

43,656

125,185

(1)

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

Water

Gathering and

Handling and

Consolidated

    

Processing

    

Treatment

    

Unallocated (1)

    

Total

Six months ended June 30, 2019

Revenues:

Revenue–Antero Resources

$

202,459

117,532

319,991

Revenue–third-party

50

50

Amortization of customer contracts

(2,903)

(7,412)

(10,315)

Total revenues

199,556

110,170

309,726

Operating expenses:

Direct operating

15,312

63,668

78,980

General and administrative (excluding equity-based compensation)

8,355

4,532

8,578

21,465

Equity-based compensation

2,663

1,139

29,164

32,966

Impairment of property and equipment

592

2

594

Depreciation

15,281

28,816

44,097

Accretion and change in fair value of contingent acquisition consideration

3,346

3,346

Accretion of asset retirement obligations

79

79

Total expenses

42,203

101,582

37,742

181,527

Operating income

$

157,353

8,588

(37,742)

128,199

Equity in earnings of unconsolidated affiliates

$

16,503

16,503

Total assets

$

4,916,854

1,844,385

7,770

6,769,009

Additions to property and equipment

$

89,206

51,984

141,190

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