Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases

Summary of supplemental balance sheet information related to leases

The Company’s lease assets and liabilities consisted of the following items (in thousands):

				(Unaudited)
		December 31,		June 30,
Leases	Balance Sheet Classification	2023		2024
Operating Leases
Operating lease right-of-use assets:
Processing plants	Operating lease right-of-use assets	$	1,611,903		1,488,336
Drilling rigs and completion services	Operating lease right-of-use assets		32,187		16,841
Gas gathering lines and compressor stations (1)	Operating lease right-of-use assets		1,283,668		1,255,989
Office space	Operating lease right-of-use assets		37,706		35,711
Office, field and other equipment	Operating lease right-of-use assets		416		570
Total operating lease right-of-use assets		$	2,965,880		2,797,447
Operating lease liabilities:
Short-term operating lease liabilities	Short-term lease liabilities	$	538,954		524,439
Long-term operating lease liabilities	Long-term lease liabilities		2,425,785		2,265,986
Total operating lease liabilities		$	2,964,739		2,790,425
Finance Leases
Finance lease right-of-use assets:
Vehicles	Other property and equipment	$	3,771		3,242
Total finance lease right-of-use assets (2)		$	3,771		3,242
Finance lease liabilities:
Short-term finance lease liabilities	Short-term lease liabilities	$	1,106		1,197
Long-term finance lease liabilities	Long-term lease liabilities		2,665		2,045
Total finance lease liabilities		$	3,771		3,242

(1) Gas gathering lines and compressor stations includes $1.3 billion and $1.2 billion related to Antero Midstream as of December 31, 2023 and June 30, 2024, respectively. See “—Related party lease disclosure” for additional discussion.

(2) Financing lease assets are recorded net of accumulated amortization of $1 million as of December 31, 2023 and June 30, 2024.

Summary of costs associated with operating leases and finance leases

Costs associated with operating and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive income (in thousands):

			Three Months Ended June 30,				Six Months Ended June 30,
Cost	Classification	Location	2023		2024		2023		2024
Operating lease cost	Statement of operations	Gathering, compression, processing and transportation	$	407,445		425,926		788,728		847,994
Operating lease cost	Statement of operations	General and administrative		3,030		2,986		5,967		6,069
Operating lease cost	Statement of operations	Contract termination		2,808		—		3,930		—
Operating lease cost	Statement of operations	Lease operating		21		27		42		48
Operating lease cost	Balance sheet	Proved properties (1)		31,602		28,714		71,372		62,126
Total operating lease cost			$	444,906		457,653		870,039		916,237
Finance lease cost:
Amortization of right-of-use assets	Statement of operations	Depletion, depreciation and amortization	$	546		418		638		848
Interest on lease liabilities	Statement of operations	Interest expense		162		137		276		285
Total finance lease cost			$	708		555		914		1,133
Short-term lease payments			$	34,707		28,228		72,408		57,671

(1) Capitalized costs related to drilling and completion activities.

Summary of supplemental cash flow information related to leases

The following table presents the Company’s supplemental cash flow information related to leases (in thousands):

	Six Months Ended June 30,
	2023		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	654,938		709,807
Operating cash flows from finance leases		276		285
Investing cash flows from operating leases		61,092		55,704
Financing cash flows from finance leases		343		529
Noncash activities:
Right-of-use assets obtained in exchange for new operating lease obligations	$	51,737		97,720
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1)	$	40,176		(1,472)

(1) During the six months ended June 30, 2023, the weighted average discount rate for remeasured operating leases increased from 5.2% as of December 31, 2022 to 5.8% as of June 30, 2023. During the six months ended June 30, 2024, the weighted average discount rate for remeasured operating leases decreased from 6.5% as of December 31, 2023 to 6.0% as of June 30, 2024.

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, 2024 (in thousands):

	Operating Leases		Financing Leases		Total
Remainder of 2024	$	351,430		814		352,244
2025		617,297		1,585		618,882
2026		564,792		1,230		566,022
2027		465,588		197		465,785
2028		388,734		23		388,757
Thereafter		943,071		10		943,081
Total lease payments		3,330,912		3,859		3,334,771
Less: imputed interest		(540,487)		(617)		(541,104)
Total	$	2,790,425		3,242		2,793,667

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, 2024 (in thousands):

	Operating Leases		Financing Leases		Total
Remainder of 2024	$	351,430		814		352,244
2025		617,297		1,585		618,882
2026		564,792		1,230		566,022
2027		465,588		197		465,785
2028		388,734		23		388,757
Thereafter		943,071		10		943,081
Total lease payments		3,330,912		3,859		3,334,771
Less: imputed interest		(540,487)		(617)		(541,104)
Total	$	2,790,425		3,242		2,793,667

Summary of weighted-average remaining lease term and discount rate

	December 31, 2023				June 30, 2024
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term	6.5 years		3.0 years		6.3 years		2.5 years
Weighted average discount rate	5.9	%	8.3	%	5.7	%	8.3	%