Reportable Segments

12 Months Ended

Dec. 31, 2021

Segment Information

Reportable Segments

(18) Reportable Segments

See Note 2(t)—Summary of Significant Accounting Policies—Reportable Segments and Geographic Information to the consolidated financial statements for a description of the Company’s determination of its reportable segments. Revenues from midstream services were primarily derived from intersegment transactions for services provided to the Company’s exploration and production operations prior to the closing of the Simplification Transactions. Through March 12, 2019, Antero Resources included the results of Antero Midstream Partners in its consolidated financial statements. Effective March 13, 2019, Antero no longer consolidates the results of Antero Midstream in its results; however, the Company’s segment disclosures include the results of the Company’s unconsolidated affiliates due to their significance to the Company’s operations. See Note 3—Deconsolidation of Antero Midstream Partners LP to the consolidated financial statements for further discussion on the Simplification Transactions. Marketing revenues are primarily derived from activities to purchase and sell third-party natural gas and NGLs and to market excess firm transportation capacity to third parties.

Operating segments are evaluated based on their contribution to consolidated results, which is primarily determined by the respective operating income (loss) of each segment. General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures, and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income, income taxes, and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting

policies for each segment are the same as the Company’s accounting policies described in Note 2—Summary of Significant Accounting Policies to the consolidated financial statements.

The operating results and assets of the Company’s reportable segments were as follows (in thousands):

	Year Ended December 31, 2019
					Equity Method		Elimination of
					Investment in		Intersegment
	Exploration				Antero		Transactions and
	and				Midstream		Unconsolidated		Consolidated
	Production		Marketing		Corporation (1)		Affiliates		Total
Sales and revenues:
Third-party	$	4,107,845		292,207		50		—		4,400,102
Intersegment		5,812		—		792,538		(789,762)		8,588
Total revenue		4,113,657		292,207		792,588		(789,762)		4,408,690
Operating expenses:
Lease operating		146,990		—		162,376		(163,646)		145,720
Gathering, compression, processing, and transportation		2,257,099		—		41,013		(151,465)		2,146,647
General and administrative		160,402		—		118,113		(99,819)		178,696
Depletion, depreciation, and amortization		893,161		—		95,526		(73,820)		914,867
Impairment of oil and gas properties		1,300,444		—		—		—		1,300,444
Impairment of midstream assets		—		—		776,832		(762,050)		14,782
Other		143,762		549,814		12,093		(11,090)		694,579
Total operating expenses		4,901,858		549,814		1,205,953		(1,261,890)		5,395,735
Operating loss	$	(788,201)		(257,607)		(413,365)		472,128		(987,045)
Equity in earnings of unconsolidated affiliates	$	—		—		51,315		(194,531)		(143,216)
Investments in unconsolidated affiliates	$	—		—		709,639		345,538		1,055,177
Segment assets	$	14,121,523		20,869		6,282,878		(5,227,701)		15,197,569
Capital expenditures for segment assets	$	1,369,003		—		391,990		(338,838)		1,422,155

(1) Includes the consolidated results of Antero Midstream Partners through March 12, 2019 and results of the Company’s equity method investment in Antero Midstream effective March 13, 2019.

	Year Ended December 31, 2020
					Equity Method		Elimination of
					Investment in		Intersegment
	Exploration				Antero		Transactions and
	and				Midstream		Unconsolidated		Consolidated
	Production		Marketing		Corporation		Affiliates		Total
Sales and revenues:
Third-party	$	3,178,330		310,572		—		—		3,488,902
Intersegment		2,797		—		900,719		(900,719)		2,797
Total revenue		3,181,127		310,572		900,719		(900,719)		3,491,699
Operating expenses:
Lease operating		98,865		—		—		—		98,865
Gathering, compression, processing, and transportation		2,530,838		—		165,386		(165,386)		2,530,838
General and administrative		134,482		—		52,213		(52,213)		134,482
Depletion, depreciation, and amortization		861,870		—		108,790		(108,790)		861,870
Impairment of oil and gas properties		223,770		—		—		—		223,770
Impairment of midstream assets		—		—		673,640		(673,640)		—
Other		125,917		469,404		18,328		(18,328)		595,321
Total operating expenses		3,975,742		469,404		1,018,357		(1,018,357)		4,445,146
Operating loss	$	(794,615)		(158,832)		(117,638)		117,638		(953,447)
Equity in earnings (loss) of unconsolidated affiliates	$	(62,660)		—		86,430		(86,430)		(62,660)
Investments in unconsolidated affiliates	$	255,082		—		—		—		255,082
Segment assets	$	13,150,845		—		5,610,912		(5,610,912)		13,150,845
Capital expenditures for segment assets	$	874,357		—		196,724		(196,724)		874,357

	Year Ended December 31, 2021
					Equity Method		Elimination of
					Investment in		Intersegment
	Exploration				Antero		Transactions and
	and				Midstream		Unconsolidated		Consolidated
	Production		Marketing		Corporation		Affiliates		Total
Sales and revenues:
Third-party	$	3,899,486		718,921		—		—		4,618,407
Intersegment		1,025		—		898,202		(898,202)		1,025
Total revenue		3,900,511		718,921		898,202		(898,202)		4,619,432
Operating expenses:
Lease operating		96,793		—		—		—		96,793
Gathering, compression, processing, and transportation		2,499,174		—		157,120		(157,120)		2,499,174
General and administrative		145,006		—		63,838		(63,838)		145,006
Depletion, depreciation, and amortization		742,009		—		108,790		(108,790)		742,009
Impairment of oil and gas properties		90,523		—		—		—		90,523
Other		210,369		811,698		13,127		(13,127)		1,022,067
Total operating expenses		3,783,874		811,698		342,875		(342,875)		4,595,572
Operating income (loss)	$	116,637		(92,777)		555,327		(555,327)		23,860
Equity in earnings of unconsolidated affiliates	$	77,085		—		90,451		(90,451)		77,085
Investments in unconsolidated affiliates	$	232,399		—		696,009		(696,009)		232,399
Segment assets	$	13,864,402		32,126		5,544,001		(5,544,001)		13,896,528
Capital expenditures for segment assets	$	715,936		—		232,825		(232,825)		715,936