Annual report pursuant to Section 13 and 15(d)

Reporting Segments

v3.3.1.900
Reporting Segments
12 Months Ended
Dec. 31, 2015
Reporting Segments  
Reporting Segments

(9) Reporting Segments

 

The Partnership’s operations are located in the United States and are organized into two reporting segments: (1) gathering and compression and (2) water handling and treatment.

 

Gathering and Compression

 

The gathering and compression segment includes a network of gathering pipelines and compressor stations that collect natural gas, NGLs and oil from Antero’s wells in the Marcellus Shale in West Virginia and the Utica Shale in Ohio.

 

Water Handling and Treatment

 

The Partnership’s water handling and treatment segment includes two independent fresh water distribution systems that source and deliver fresh water from the Ohio River, several regional waterways, and waste water services for well completion operations in Antero’s operating areas. These fresh water systems consist of permanent buried pipelines, surface pipelines and fresh water storage facilitates, as well as pumping stations and impoundments to transport the fresh water throughout the pipelines. The waste water services consist of waste water transportation, disposal, and treatment, including a water treatment facility, currently under construction.

 

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. We evaluate the performance of the Partnership’s business segments based on operating income. Interest expense is primarily managed and evaluated on a consolidated basis.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Water

 

 

 

 

  

Gathering and

  

Handling and

  

Consolidated

 

    

Compression

    

Treatment

    

Total

Year ended December 31, 2013

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenue - Antero

 

$

22,363

 

$

35,871

 

$

58,234

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

 

2,079

 

 

5,792

 

 

7,871

General and administrative (before equity-based compensation)

 

 

7,193

 

 

2,523

 

 

9,716

Equity-based compensation

 

 

15,931

 

 

8,418

 

 

24,349

Depreciation

 

 

11,346

 

 

2,773

 

 

14,119

Total expenses

 

 

36,549

 

 

19,506

 

 

56,055

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

(14,186)

 

$

16,365

 

$

2,179

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

578,089

 

$

230,248

 

$

808,337

Capital expenditures for segment assets

 

$

389,340

 

$

200,256

 

$

589,596

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2014

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenue - Antero

 

$

95,746

 

$

162,283

 

$

258,029

Revenue - third-party

 

 

 -

 

 

8,245

 

 

8,245

Total revenues

 

 

95,746

 

 

170,528

 

 

266,274

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

 

15,470

 

 

33,351

 

 

48,821

General and administrative (before equity-based compensation)

 

 

13,416

 

 

5,332

 

 

18,748

Equity-based compensation

 

 

8,619

 

 

2,999

 

 

11,618

Depreciation

 

 

36,789

 

 

16,240

 

 

53,029

Total expenses

 

 

74,294

 

 

57,922

 

 

132,216

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

21,452

 

$

112,606

 

$

134,058

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

1,395,121

 

$

421,489

 

$

1,816,610

Capital expenditures for segment assets

 

$

553,582

 

$

200,116

 

$

753,698

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2015

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenue - Antero

 

$

230,210

 

$

155,954

 

$

386,164

Revenue - third-party

 

 

382

 

 

778

 

 

1,160

Total revenues

 

 

230,592

 

 

156,732

 

 

387,324

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

 

25,783

 

 

53,069

 

 

78,852

General and administrative (before equity-based compensation)

 

 

22,608

 

 

6,128

 

 

28,736

Equity-based compensation

 

 

17,840

 

 

4,630

 

 

22,470

Depreciation

 

 

60,838

 

 

25,832

 

 

86,670

Contingent acquisition consideration accretion

 

 

 -

 

 

3,333

 

 

3,333

Total expenses

 

 

127,069

 

 

92,992

 

 

220,061

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

103,523

 

$

63,740

 

$

167,263

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

1,428,796

 

$

551,236

 

$

1,980,032

Capital expenditures for segment assets

 

$

320,002

 

$

132,633

 

$

452,635