Leases (Tables)

9 Months Ended

Sep. 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,		September 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		1,425,273
Drilling rigs and completion services	Operating lease right-of-use assets		32,187		9,005
Gas gathering lines and compressor stations (1)	Operating lease right-of-use assets		1,283,668		1,189,000
Office space	Operating lease right-of-use assets		37,706		34,537
Office, field and other equipment	Operating lease right-of-use assets		416		473
Total operating lease right-of-use assets		$	2,965,880		2,658,288
Operating lease liabilities:
Short-term operating lease liabilities	Short-term lease liabilities	$	538,954		504,419
Long-term operating lease liabilities	Long-term lease liabilities		2,425,785		2,146,881
Total operating lease liabilities		$	2,964,739		2,651,300
Finance Leases
Finance lease right-of-use assets:
Vehicles	Other property and equipment	$	3,771		2,960
Total finance lease right-of-use assets (2)		$	3,771		2,960
Finance lease liabilities:
Short-term finance lease liabilities	Short-term lease liabilities	$	1,106		1,233
Long-term finance lease liabilities	Long-term lease liabilities		2,665		1,727
Total finance lease liabilities		$	3,771		2,960

(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 September 30, 2024, respectively. See “—Related party lease disclosure” for additional discussion.

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

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 September 30,				Nine Months Ended September 30,
Cost	Classification	Location	2023		2024		2023		2024
Operating lease cost	Statement of operations	Gathering, compression, processing and transportation	$	418,005		435,308		1,206,733		1,283,302
Operating lease cost	Statement of operations	General and administrative		3,105		3,164		9,072		9,233
Operating lease cost	Statement of operations	Contract termination, loss contingency and settlements		297		—		4,227		—
Operating lease cost	Statement of operations	Lease operating		21		28		63		76
Operating lease cost	Balance sheet	Proved properties (1)		40,543		30,864		111,915		92,990
Total operating lease cost			$	461,971		469,364		1,332,010		1,385,601
Finance lease cost:
Amortization of right-of-use assets	Statement of operations	Depletion, depreciation and amortization	$	464		405		1,102		1,253
Interest on lease liabilities	Statement of operations	Interest expense		165		125		441		410
Total finance lease cost			$	629		530		1,543		1,663
Short-term lease payments			$	31,324		26,636		103,732		84,307

(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):

	Nine Months Ended September 30,
	2023		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,023,385		1,098,799
Operating cash flows from finance leases		441		410
Investing cash flows from operating leases		95,480		78,275
Financing cash flows from finance leases		580		811
Noncash activities:
Right-of-use assets obtained in exchange for new operating lease obligations	$	80,969		97,720
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1)	$	12,640		(1,472)

(1) During the nine months ended September 30, 2023, the weighted average discount rate for remeasured operating leases increased from 5.1% as of December 31, 2022 to 5.8% as of September 30, 2023. During the nine months ended September 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 September 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 September 30, 2024 (in thousands):

	Operating Leases		Financing Leases		Total
Remainder of 2024	$	173,056		407		173,463
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		3,152,538		3,452		3,155,990
Less: imputed interest		(501,238)		(492)		(501,730)
Total	$	2,651,300		2,960		2,654,260

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 September 30, 2024 (in thousands):

	Operating Leases		Financing Leases		Total
Remainder of 2024	$	173,056		407		173,463
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		3,152,538		3,452		3,155,990
Less: imputed interest		(501,238)		(492)		(501,730)
Total	$	2,651,300		2,960		2,654,260

Summary of weighted-average remaining lease term and discount rate

	December 31, 2023				September 30, 2024
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term	6.5 years		3.0 years		6.2 years		2.3 years
Weighted average discount rate	5.9	%	8.3	%	5.7	%	8.4	%