Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases

Summary of supplemental balance sheet information related to leases

The Company’s lease assets as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands):

	December 31, 2019				March 31, 2020
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Right-of-use Assets:
Processing plants	$	1,460,770		—	$	1,440,110		—
Drilling rigs and completion services		71,662		—		56,353		—
Gas gathering lines and compressor stations (1)		1,308,428		—		1,273,200		—
Office space		40,491		—		39,631		—
Vehicles		4,983		2,328		4,232		2,058
Other office and field equipment		166		170		1,013		—
Total right-of-use assets	$	2,886,500		2,498	$	2,814,539		2,058	(2)

(1) Gas gathering lines and compressor stations leases includes $1.1 billion related to Antero Midstream Corporation as of December 31, 2019 and March 31, 2020. See “—Related party lease disclosure” for additional discussion.

(2) Financing lease assets are recorded net of accumulated amortization of $9 million and $3 million as of December 31, 2019 and March 31, 2020, respectively.

The Company’s lease liabilities as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands):

	December 31, 2019				March 31, 2020
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Location on the balance sheet:
Short-term lease liabilities	$	304,397		923	$	294,535		1,123
Long-term lease liabilities		2,582,103		1,575		2,520,004		935
Total lease liabilities	$	2,886,500		2,498	$	2,814,539		2,058

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 months ended March 31, 2019 and 2020 (in thousands):

	Three months ended
Statement of Operations Location	March 31, 2019		March 31, 2020
Gathering, compression, processing, and transportation	$	187,847		352,643
General and administrative		2,726		2,881
Contract termination and rig stacking		8,019		—
Total lease expense	$	198,592		355,524

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 months ended March 31, 2019 and March 31, 2020 (in thousands):

	Three months ended March 31, 2019				Three months ended March 31, 2020
	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	$	150,320		—	$	358,039		—
Investing cash out flows related to operating leases		52,366		—		27,534		—
Financing cash out flows related to financing leases		—		791		—		439
	$	202,686		791	$	385,573		439
Noncash activities:
Right of use assets obtained in exchange for operating lease liabilities	$	3,345,549		—	$	9,382		—
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 March 31, 2020 (in thousands):

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2020	$	464,093		978		465,071
2021		558,241		844		559,085
2022		543,326		321		543,647
2023		538,771		7		538,778
2024		530,003		—		530,003
2025		457,326		—		457,326
Thereafter		1,394,412		—		1,394,412
Total lease payments		4,486,172		2,150		4,488,322
Less: imputed interest		(1,671,633)		(92)		(1,671,725)
Total	$	2,814,539		2,058		2,816,597

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 March 31, 2020 (in thousands):

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2020	$	464,093		978		465,071
2021		558,241		844		559,085
2022		543,326		321		543,647
2023		538,771		7		538,778
2024		530,003		—		530,003
2025		457,326		—		457,326
Thereafter		1,394,412		—		1,394,412
Total lease payments		4,486,172		2,150		4,488,322
Less: imputed interest		(1,671,633)		(92)		(1,671,725)
Total	$	2,814,539		2,058		2,816,597

Summary of weighted-average remaining lease term and discount rate

	Operating Leases			Finance Leases
Weighted-average remaining lease term:		8.5 years			2.0 years
Weighted-average discount rate:		11.6	%		6.1	%