Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases

Summary of supplemental balance sheet information related to leases

The Company’s lease assets as of December 31, 2019 and June 30, 2020 consisted of the following items (in thousands):

	December 31, 2019				June 30, 2020
	Operating Leases		Finance Leases(2)		Operating Leases		Finance Leases(2)
Right-of-use Assets:
Processing plants	$	1,460,770		—	$	1,418,728		—
Drilling rigs and completion services		71,662		—		31,055		—
Gas gathering lines and compressor stations (1)		1,308,428		—		1,070,090		—
Office space		40,491		—		38,715		—
Vehicles		4,983		2,328		3,459		1,781
Other office and field equipment		166		170		898		—
Total right-of-use assets	$	2,886,500		2,498	$	2,562,945		1,781

(1) Gas gathering lines and compressor stations leases includes $0.9 billion related to Antero Midstream Corporation as of December 31, 2019 and June 30, 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 June 30, 2020, respectively.

The Company’s lease liabilities as of December 31, 2019 and June 30, 2020 consisted of the following items (in thousands):

	December 31, 2019				June 30, 2020
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Location on the balance sheet:
Short-term lease liabilities	$	304,397		923	$	229,415		1,084
Long-term lease liabilities		2,582,103		1,575		2,333,530		697
Total lease liabilities	$	2,886,500		2,498	$	2,562,945		1,781

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 six months ended June 30, 2019 and 2020 (in thousands):

	Three months ended June 30,				Six months ended June 30,
Statement of Operations Location	2019		2020		2019		2020
Gathering, compression, processing, and transportation	$	218,542		350,853	$	406,389		703,496
General and administrative		2,810		2,789		5,536		5,670
Contract termination and rig stacking		2,673		5,841		10,692		5,841
Total lease expense	$	224,025		359,483	$	422,617		715,007

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 six months ended June 30, 2019 (in thousands):

	Three months ended June 30, 2019				Six months ended June 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	$	207,244		—	$	357,564		—
Investing cash out flows related to operating leases		46,532		—		98,898		—
Financing cash out flows related to financing leases		—		873		—		1,664
	$	253,776		873	$	456,462		1,664
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	$	—		—	$	—		—

The following is the Company’s supplemental cash flow information related to leases for the three and six months ended June 30, 2020 (in thousands):

	Three months ended June 30, 2020				Six months ended June 30, 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	$	303,758		—	$	661,797		—
Investing cash out flows related to operating leases		35,745		—		63,279		—
Financing cash out flows related to financing leases		—		278		—		717
	$	339,503		278	$	725,076		717
Noncash activities:
Right of use assets obtained in exchange for operating lease liabilities	$	104,380		—	$	113,762		—
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 June 30, 2020 (in thousands):

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2020	$	311,128		647		311,775
2021		582,546		844		583,390
2022		567,631		321		567,952
2023		563,076		7		563,083
2024		554,308		—		554,308
2025		481,630		—		481,630
Thereafter		1,501,759		—		1,501,759
Total lease payments		4,562,078		1,819		4,563,897
Less: imputed interest		(1,999,133)		(38)		(1,999,171)
Total	$	2,562,945		1,781		2,564,726

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 June 30, 2020 (in thousands):

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2020	$	311,128		647		311,775
2021		582,546		844		583,390
2022		567,631		321		567,952
2023		563,076		7		563,083
2024		554,308		—		554,308
2025		481,630		—		481,630
Thereafter		1,501,759		—		1,501,759
Total lease payments		4,562,078		1,819		4,563,897
Less: imputed interest		(1,999,133)		(38)		(1,999,171)
Total	$	2,562,945		1,781		2,564,726

Summary of weighted-average remaining lease term and discount rate

	June 30, 2020
	Operating Leases		Finance Leases
Weighted-average remaining lease term:	8.5 years		1.8 years
Weighted-average discount rate:	15.1	%	6.1	%