Annual report pursuant to Section 13 and 15(d)

Reporting Segments

v3.8.0.1
Reporting Segments
12 Months Ended
Dec. 31, 2017
Reporting Segments  
Reporting Segments

(12) Reporting Segments

 

The Partnership’s operations are located in the United States and 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 income from processing and fractionation plants through our equity in the Joint Venture with MarkWest.

 

Water Handling and Treatment

 

The Partnership’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 segment also includes a wastewater treatment facility that is currently undergoing testing and commissioning. The water handling and treatment segment also includes other fluid handling services which includes, high rate transfer, wastewater transportation, disposal and treatment. See Note 2 – Summary of Significant Accounting Policies, 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. 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Water

 

 

 

 

 

  

Gathering and

  

Handling and

  

Consolidated

 

 

    

Processing

    

Treatment

    

Total

 

Year ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Revenue - Antero Resources

 

$

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

 

Accretion of contingent acquisition consideration

 

 

 —

 

 

3,333

 

 

3,333

 

Total expenses

 

 

127,069

 

 

92,992

 

 

220,061

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

103,523

 

 

63,740

 

 

167,263

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,428,796

 

 

551,236

 

 

1,980,032

 

Additions to property and equipment

 

$

320,002

 

 

132,633

 

 

452,635

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2016

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Revenue - Antero Resources

 

$

303,250

 

 

282,267

 

 

585,517

 

Revenue - third-party

 

 

835

 

 

 —

 

 

835

 

Gain on sale of assets

 

 

3,859

 

 

 —

 

 

3,859

 

Total revenues

 

 

307,944

 

 

282,267

 

 

590,211

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Direct operating

 

 

27,289

 

 

134,298

 

 

161,587

 

General and administrative (before equity-based compensation)

 

 

20,118

 

 

7,996

 

 

28,114

 

Equity-based compensation

 

 

19,714

 

 

6,335

 

 

26,049

 

Depreciation

 

 

69,962

 

 

29,899

 

 

99,861

 

Accretion of contingent acquisition consideration

 

 

 —

 

 

16,489

 

 

16,489

 

Total expenses

 

 

137,083

 

 

195,017

 

 

332,100

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

170,861

 

 

87,250

 

 

258,111

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

 

$

485

 

 

 —

 

 

485

 

Total assets

 

$

1,734,208

 

 

615,687

 

 

2,349,895

 

Additions to property and equipment

 

$

228,100

 

 

188,220

 

 

416,320

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Revenue - Antero Resources

 

$

396,202

 

 

376,031

 

 

772,233

 

Revenue - third-party

 

 

264

 

 

 —

 

 

264

 

Total revenues

 

 

396,466

 

 

376,031

 

 

772,497

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Direct operating

 

 

39,251

 

 

193,287

 

 

232,538

 

General and administrative (before equity-based compensation)

 

 

20,607

 

 

10,922

 

 

31,529

 

Equity-based compensation

 

 

19,730

 

 

7,553

 

 

27,283

 

Impairment of property and equipment

 

 

23,431

 

 

 —

 

 

23,431

 

Depreciation

 

 

86,372

 

 

33,190

 

 

119,562

 

Accretion of contingent acquisition consideration

 

 

 —

 

 

13,476

 

 

13,476

 

Total expenses

 

 

189,391

 

 

258,428

 

 

447,819

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

207,075

 

 

117,603

 

 

324,678

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

 

$

20,194

 

 

 —

 

 

20,194

 

Total assets

 

$

2,237,913

 

 

804,296

 

 

3,042,209

 

Additions to property and equipment

 

$

346,217

 

 

195,162

 

 

541,379