Annual report pursuant to Section 13 and 15(d)

Transactions with Affiliates

Transactions with Affiliates
12 Months Ended
Dec. 31, 2018
Transactions with Affiliates  
Transactions with Affiliates

(3)  Transactions with Affiliates


All revenues earned in the years ended December 31, 2016,  2017 and 2018, except revenues earned from third parties, were earned from Antero Resources, under various agreements for gathering and compression and water handling and treatment services. 

(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 and treatment services.  Accounts payable–Antero Resources represents amounts due to Antero Resources for general and administrative and other costs.

(c)Allocation of Costs

The employees supporting the Partnership’s operations are employees of Antero Resources.  Direct operating expense includes allocated costs of $4 million, $6 million and $7 mllion during the years ended December 31, 2016,  2017, and 2018, respectively, related to labor charges for Antero Resources employees associated with the operation of our assets.  General and administrative expense includes allocated costs of $50 million, $54 million and $52 million during the years ended December 31, 2016,  2017, and 2018, 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 equity-based compensation (see Note 9—Equity-Based Compensation for more information).  These expenses are charged or allocated to the Partnership based on the nature of the expenses and are allocated based on a combination of its proportionate share of gross property and equipment, capital expenditures and labor costs, as applicable.  The Partnership reimburses Antero Resources directly for all general and administrative costs allocated to it, with the exception of noncash equity compensation allocated to the Partnership for awards issued under the Antero Resources long-term incentive plan or the Midstream LTIP.