Equity Method Investments

9 Months Ended

Sep. 30, 2019

Equity Method Investments.

Equity Method Investments

(5) Equity Method Investments

At September 30, 2019, Antero owned approximately 31.5% of Antero Midstream Corporation’s common stock, which is reflected in Antero’s consolidated financial statements using the equity method of accounting. See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions.

Prior to March 13, 2019, our consolidated results included two equity method investments held by Antero Midstream Partners: a 15% equity interest in Stonewall Gas Gathering LLC (“Stonewall”), which operates a regional gathering pipeline on which Antero is an anchor shipper, and a 50% interest in the joint venture entered into on February 6, 2017 between Antero Midstream Partners and MarkWest Energy Partners, L.P. (“MarkWest”), a wholly owned subsidiary of MPLX, LP, to develop processing and fractionation assets in Appalachia (the “Joint Venture”). Effective March 13, 2019, the equity in earnings of these investments are accounted for in the equity in earnings of Antero Midstream Corporation.

The following table is a reconciliation of investments in unconsolidated affiliates for the nine months ended September 30, 2019 (in thousands):

	Stonewall (1)		MarkWest Joint Venture		Antero Midstream Corporation (2)		Total
Balance at December 31, 2018	$	68,103		365,539		—		433,642
Investments (3)		—		25,020		—		25,020
Equity in net income of unconsolidated affiliates		1,894		10,370		(102,457)		(90,193)
Distributions/dividends from unconsolidated affiliates		(3,000)		(9,605)		(96,636)		(109,241)
Elimination of intercompany profit		—		—		30,621		30,621
Effects of deconsolidation (4)		(66,997)		(391,324)		1,987,795		1,529,474
Balance at September 30, 2019	$	—		—		1,819,323		1,819,323

(1) Distributions are net of operating and capital requirements retained by Stonewall.

(2) As adjusted for the amortization of the difference between the cost of the equity investment in Antero Midstream Corporation and the amount of underlying equity in the net assets of Antero Midstream Partners as of the date of deconsolidation.

(3) Investments in the Joint Venture during the nine months ended September 30, 2019 relate to capital contributions for construction of additional processing facilities.

(4) Effective March 13, 2019, the equity in earnings of Stonewall and the Joint Venture are accounted for in the equity in earnings of Antero Midstream Corporation.

Summarized Financial Information of Antero Midstream Corporation

The following tables present summarized financial information of Antero Midstream Corporation. Summarized financial information is presented from March 13, 2019.

Balance Sheet

(in thousands)	September 30, 2019
Current assets	$	109,224
Noncurrent assets		6,336,280
Total assets	$	6,445,504
Current liabilities	$	259,628
Noncurrent liabilities		2,662,846
Stockholders' equity		3,523,030
Total liabilities and equity	$	6,445,504

Statement of Operations

	For the period
		March 13, 2019 through
(in thousands)	September 30, 2019
Revenues	$	553,521
Operating expenses		745,940
Loss from operations	$	(192,419)
Net loss attributable to the equity method investments	$	(197,006)