Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases

Summary of supplemental balance sheet information related to leases

The Company’s lease assets as of September 30, 2019 consisted of the following items (in thousands):

	September 30, 2019
	Operating Leases		Finance Leases
Right-of-use Assets:
Processing plants	$	1,554,601		—
Drilling rigs and completion services		93,846		—
Gas gathering lines and compressor stations (1)		1,535,146		—
Office space		41,285		—
Vehicles		4,971		2,591
Other office and field equipment		299		448
Total right-of-use assets	$	3,230,148		3,039	(2)

(1) Gas gathering lines and compressor stations leases includes $1.3 billion related to Antero Midstream Corporation.

(2) Financing lease assets are recorded net of accumulated amortization of $9 million as of September 30, 2019.

The Company’s lease liabilities as of September 30, 2019 consisted of the following items (in thousands):

	September 30, 2019
	Operating Leases		Finance Leases
Location on the balance sheet:
Short-term lease liabilities	$	408,814		1,176
Long-term lease liabilities		2,821,334		1,863
Total lease liabilities	$	3,230,148		3,039

Summary of costs associated with operating leases

Costs associated with operating leases were included in the statement of operations and comprehensive income (loss) for the three and nine months ended September 30, 2019 (in thousands):

Statement of Operations Location	Three months ended September 30, 2019		Nine months ended September 30, 2019
Gathering, compression, processing, and transportation	$	237,618	$	644,007
General and administrative		2,859		8,395
Contract termination and rig stacking		—		10,692
Total Lease Expense	$	240,477	$	663,094

Summary of supplemental cash flow information related to leases

The following is the Company’s supplemental cash flow information related to leases for the three and nine months ended September 30, 2019 (in thousands):

	Three months ended September 30, 2019				Nine months ended September 30, 2019
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash out flows related to operating leases	$	234,399		—	$	591,963		—
Investing cash out flows related to operating leases		47,417		—		146,315		—
Financing cash out flows related to financing leases		—		303		—		1,967
		281,816		303		738,278		1,967
Noncash activities:
Right of use assets obtained in exchange for operating lease liabilities		—		—		3,345,549		—
Right of use assets obtained in exchange for financing lease liabilities		—		—		—		—

Summary of maturities of operating lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2019 (in thousands):

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2019	$	151,345		21		151,366
2020		578,615		523		579,138
2021		506,402		1,152		507,554
2022		495,694		1,298		496,992
2023		491,513		45		491,558
2024		482,745		—		482,745
Thereafter		1,447,537		—		1,447,537
Total lease payments		4,153,851		3,039		4,156,890
Less: imputed interest		(923,703)		—		(923,703)
Total	$	3,230,148		3,039		3,233,187

As of December 31, 2018, the following future minimum payments were required for office and equipment leases:

(in thousands)	Office Leases		Equipment Leases		Total
2019	$	8,630		6,042		14,672
2020		8,471		4,517		12,988
2021		8,450		2,410		10,860
2022		8,427		274		8,701
2023		7,495		—		7,495
Thereafter		49,367		—		49,367
Total	$	90,840		13,243		104,083

Summary of maturities of financing lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2019 (in thousands):

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2019	$	151,345		21		151,366
2020		578,615		523		579,138
2021		506,402		1,152		507,554
2022		495,694		1,298		496,992
2023		491,513		45		491,558
2024		482,745		—		482,745
Thereafter		1,447,537		—		1,447,537
Total lease payments		4,153,851		3,039		4,156,890
Less: imputed interest		(923,703)		—		(923,703)
Total	$	3,230,148		3,039		3,233,187

As of December 31, 2018, the following future minimum payments were required for office and equipment leases:

(in thousands)	Office Leases		Equipment Leases		Total
2019	$	8,630		6,042		14,672
2020		8,471		4,517		12,988
2021		8,450		2,410		10,860
2022		8,427		274		8,701
2023		7,495		—		7,495
Thereafter		49,367		—		49,367
Total	$	90,840		13,243		104,083

Summary of weighted-average remaining lease term and discount rate

	September 30, 2019
	Operating Leases			Finance Leases
Weighted-average remaining lease term:		8.4 years			2.1 years
Weighted-average discount rate:		6.1	%		5.7	%