XML 37 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments
12 Months Ended
Dec. 31, 2018
Commitments  
Commitments

(13) Commitments

The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have remaining lease terms in excess of one year as of December 31, 2018 (in millions).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Firm
transportation

  

Processing,
gathering and
compression

  

Drilling rigs and completion
services

  

Office and equipment

  

 

 

(in millions)

 

(a)

 

(b)

 

(c)

 

(d)

 

Total

 

2019

 

$

1,075

 

 

389

 

 

133

 

 

15

 

 

1,612

 

2020

 

 

1,112

 

 

399

 

 

64

 

 

13

 

 

1,588

 

2021

 

 

1,089

 

 

390

 

 

 7

 

 

11

 

 

1,497

 

2022

 

 

1,037

 

 

387

 

 

 —

 

 

 9

 

 

1,433

 

2023

 

 

1,024

 

 

379

 

 

 —

 

 

 7

 

 

1,410

 

Thereafter

 

 

8,752

 

 

1,722

 

 

 —

 

 

49

 

 

10,523

 

Total

 

$

14,089

 

 

3,666

 

 

204

 

 

104

 

 

18,063

 

 

(a)      Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market.  These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates, or pay for any deficiencies at specified reservation fee rates.  The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(b)      Processing, Gathering, and Compression Service Commitments

The Company has entered into various long‑term gas processing agreements for certain of its production that will allow it to realize the value of its NGLs.  The minimum payment obligations under the agreements are presented in the table. Certain of these obligations are accounted for as operating leases.

The Company has various gathering and compression service agreements with third parties that provide for payments based on volumes gathered or compressed.  The minimum payment obligations under these agreements are presented in the table.

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.  The values in the table also include minimum processing fees to be paid to the Joint Venture owned by Antero Midstream and MarkWest. 

The table does not include intracompany commitments.  Future capital contributions to unconsolidated affiliates are excluded from the table as neither the amounts nor the timing of the obligations can be determined in advance.

(c)      Drilling Rigs and Completion Services Commitments

The Company has obligations under agreements with service providers to procure drilling rigs and completion services.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.  Certain of these obligations are accounted for as operating leases.

(d)     Office and Equipment Leases

The Company leases various office space and equipment under capital and operating lease arrangements.  Rental expense under operating leases was $9 million, $7 million, and $9 million for the years ended December 31, 2016,  2017, and 2018, respectively.