Reportable Segments

12 Months Ended

Dec. 31, 2023

Reportable Segments

Reportable Segments

(17) Reportable Segments

(a) Summary of Reportable Segments

The Company’s operations, which are located in the United States, are organized into three reportable segments: (i) the exploration, development and production of natural gas, NGLs and oil; (ii) marketing and utilization of excess firm transportation capacity and (iii) midstream services through the Company’s equity method investment in Antero Midstream. Substantially all of the Company’s production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income (loss). 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.

Exploration and Production

The exploration and production segment is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations.

Marketing

Where feasible, the Company purchases and sells third-party natural gas and NGLs and markets its excess firm transportation capacity, or engages third parties to conduct these activities on the Company’s behalf, in order to optimize the revenues from these transportation agreements. The Company has entered into long-term firm transportation agreements for a significant portion of its current and expected future production in order to secure guaranteed capacity to favorable markets.

Equity Method Investment in Antero Midstream

The Company receives midstream services through its equity method investment in Antero Midstream. Antero Midstream owns, operates and develops midstream energy infrastructure primarily to service the Company’s production and completion activity in the Appalachian Basin. Antero Midstream’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts.

(b) Reportable Segments Financial Information

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

	Year Ended December 31, 2021
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	3,899,486		718,921		516		(516)		4,618,407
Intersegment		1,025		—		897,686		(897,686)		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, transportation and water handling		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 property and equipment		90,523		—		5,042		(5,042)		90,523
Other		210,369		811,698		8,085		(8,085)		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
Capital expenditures for segment assets	$	715,936		—		232,825		(232,825)		715,936

	Year Ended December 31, 2022
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	6,720,212		416,758		2,622		(2,622)		7,136,970
Intersegment		1,466		—		917,363		(917,363)		1,466
Total revenue		6,721,678		416,758		919,985		(919,985)		7,138,436
Operating expenses:
Lease operating		99,595		—		—		—		99,595
Gathering, compression, processing, transportation and water handling		2,605,380		—		180,254		(180,254)		2,605,380
General and administrative		172,909		—		62,125		(62,125)		172,909
Depletion, depreciation and amortization		680,600		—		131,762		(131,762)		680,600
Impairment of property and equipment		149,731		—		3,702		(3,702)		149,731
Other		325,012		531,304		2,676		(2,676)		856,316
Total operating expenses		4,033,227		531,304		380,519		(380,519)		4,564,531
Operating income (loss)	$	2,688,451		(114,546)		539,466		(539,466)		2,573,905
Equity in earnings of unconsolidated affiliates	$	72,327		—		94,218		(94,218)		72,327
Capital expenditures for segment assets	$	943,971		—		298,924		(298,924)		943,971

	Year Ended December 31, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	4,473,969		206,122		1,414		(1,414)		4,680,091
Intersegment		1,881		—		1,040,357		(1,040,357)		1,881
Total revenue		4,475,850		206,122		1,041,771		(1,041,771)		4,681,972
Operating expenses:
Lease operating		118,441		—		—		—		118,441
Gathering, compression, processing, transportation and water handling		2,642,358		—		213,165		(213,165)		2,642,358
General and administrative		224,516		—		71,068		(71,068)		224,516
Depletion, depreciation and amortization		689,966		—		136,059		(136,059)		689,966
Impairment of property and equipment		51,302		—		146		(146)		51,302
Other		193,531		308,728		9,471		(9,471)		502,259
Total operating expenses		3,920,114		308,728		429,909		(429,909)		4,228,842
Operating income (loss)	$	555,736		(102,606)		611,862		(611,862)		453,130
Equity in earnings of unconsolidated affiliates	$	82,952		—		105,456		(105,456)		82,952
Capital expenditures for segment assets	$	1,131,863		—		183,733		(183,733)		1,131,863

	As of December 31, 2022
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	220,429		—		652,767		(652,767)		220,429
Total assets		14,081,077		36,962		5,791,320		(5,791,320)		14,118,039

	As of December 31, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	222,255		—		626,650		(626,650)		222,255
Total assets		13,602,297		17,117		5,737,618		(5,737,618)		13,619,414