Annual report pursuant to Section 13 and 15(d)

Transactions with Affiliates

v3.20.4
Transactions with Affiliates
12 Months Ended
Dec. 31, 2020
Transactions with Affiliates  
Transactions with Affiliates

(6)  Transactions with Affiliates

(a)

Revenues

Substantially all revenues earned in the years ended December 31, 2019 and 2020 were earned from Antero Resources, under various agreements for gathering and compression and water handling services. Revenues earned from gathering and processing services consists of lease income. There were no such revenues earned by AMGP for the year ended December 31, 2018.

(b)

Accounts receivable–Antero Resources and Accounts payable–Antero Resources

Accounts receivable—Antero Resources represents amounts due from Antero Resources, primarily related to gathering and compression services and water handling services. Accounts payable—Antero Resources represents amounts due to Antero Resources for general and administrative and other costs.

(c)

Allocation of Costs Charged by Antero Resources

The employees supporting the Company’s operations are concurrently employed by Antero Resources and the Company.  Direct operating expense includes costs charged to the Company of $6 million and $7 million during the years ended December 31, 2019 and 2020, respectively. These costs were for services provided by employees associated with the operation of the Company’s gathering lines, compressor stations and water handling assets.  There were no such charges to AMGP during the year ended December 31, 2018. For the years ended December 31, 2018, 2019 and 2020, general and administrative expenses charged to the Company by Antero Resources were $0.5 million, $33 million and $25 million, respectively. These costs relate to: (i) various business services, including payroll processing, accounts payable processing and facilities management, (ii) various corporate services, including legal, accounting, treasury, information technology and human resources and (iii) compensation, including certain equity-based compensation.  These expenses are charged to the Company based on (i) the nature of the expenses and are apportioned based on a combination of the Company’s proportionate share of gross property and equipment, capital expenditures and labor costs, as applicable, and (ii) an annual management service fee.  The Company reimburses Antero Resources directly for all general and administrative costs charged to it. See Note 12—Equity-Based Compensation.