Reportable Segments

12 Months Ended

Dec. 31, 2022

Reportable Segments

Reportable Segments

(16)  Reportable Segments

The Company’s operations, which are located in the United States, are organized into two reportable segments: (i) gathering and processing and (ii) water handling. 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. Interest expense is primarily managed and evaluated on a consolidated basis.

Gathering and Processing

The gathering and processing segment includes a network of gathering pipelines and compressor stations that collect and process production from Antero Resources’ wells in West Virginia and Ohio. The gathering and processing segment also includes equity in earnings from the Company’s investments in the Joint Venture and Stonewall.

Water Handling

The Company’s water handling segment includes two independent systems that deliver water from sources including the Ohio River, local reservoirs and several regional waterways. Portions of these water handling systems are also utilized to transport flowback and produced water. The water handling systems consist of permanent buried pipelines, surface pipelines and water storage facilities, as well as pumping stations, blending facilities and impoundments to transport water throughout the systems used to deliver water for Antero Resources’ well completions.

The summarized operating results of the Company’s reportable segments are as follows:

	Year Ended December 31, 2020
	Gathering and		Water				Consolidated
(in thousands)	Processing		Handling		Unallocated (1)		Total
Revenues:
Revenue–Antero Resources	$	711,459		259,932		—		971,391
Amortization of customer relationships		(37,086)		(33,586)		—		(70,672)
Total revenues		674,373		226,346		—		900,719
Operating expenses:
Direct operating		56,508		108,878		—		165,386
General and administrative		29,899		14,184		8,130		52,213
Facility idling		—		15,219		—		15,219
Depreciation		57,300		51,490		—		108,790
Impairment of property and equipment		947		97,232		—		98,179
Impairment of goodwill		575,461		—		—		575,461
Accretion of asset retirement obligations		—		180		—		180
Loss on asset sale		2,689		240		—		2,929
Total operating expenses		722,804		287,423		8,130		1,018,357
Operating loss	$	(48,431)		(61,077)		(8,130)		(117,638)
Equity in earnings of unconsolidated affiliates	$	86,430		—		—		86,430
Additions to property and equipment	$	157,931		38,793		—		196,724

(1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis.

	Year Ended December 31, 2021
	Gathering and		Water				Consolidated
(in thousands)	Processing		Handling		Unallocated (1)		Total
Revenues:
Revenue–Antero Resources	$	749,737		218,621		—		968,358
Revenue–third-party		—		516		—		516
Amortization of customer relationships		(37,086)		(33,586)		—		(70,672)
Total revenues		712,651		185,551		—		898,202
Operating expenses:
Direct operating		65,983		91,137		—		157,120
General and administrative		36,380		22,817		4,641		63,838
Facility idling		—		3,997		—		3,997
Depreciation		59,692		49,098		—		108,790
Impairment of property and equipment		4,608		434		—		5,042
Accretion of asset retirement obligations		—		460		—		460
Loss on asset sale		3,628		—		—		3,628
Total operating expenses		170,291		167,943		4,641		342,875
Operating income	$	542,360		17,608		(4,641)		555,327
Equity in earnings of unconsolidated affiliates	$	90,451		—		—		90,451
Additions to property and equipment	$	186,588		46,237		—		232,825

(1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis.

	Year Ended December 31, 2022
	Gathering and		Water				Consolidated
(in thousands)	Processing		Handling		Unallocated (1)		Total
Revenues:
Revenue–Antero Resources	$	743,265		244,770		—		988,035
Revenue–third-party		—		2,622		—		2,622
Amortization of customer relationships		(37,086)		(33,586)		—		(70,672)
Total revenues		706,179		213,806		—		919,985
Operating expenses:
Direct operating		75,889		104,365		—		180,254
General and administrative		38,972		17,495		5,658		62,125
Facility idling		—		4,166		—		4,166
Depreciation		81,390		50,372		—		131,762
Impairment of property and equipment		1,130		2,572		—		3,702
Accretion of asset retirement obligations		—		222		—		222
Loss on settlement of asset retirement obligations		—		539		—		539
Gain on asset sale		(2,120)		(131)		—		(2,251)
Total operating expenses		195,261		179,600		5,658		380,519
Operating income	$	510,918		34,206		(5,658)		539,466
Equity in earnings of unconsolidated affiliates	$	94,218		—		—		94,218
Additions to property and equipment, net	$	227,561		71,363		—		298,924

(1) Certain expenses that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis.

The summarized total assets of the Company’s reportable segments are as follows:

	December 31,
(in thousands)	2021		2022
Gathering and Processing	$	4,450,939		4,711,069
Water Handling		1,092,122		1,079,297
Unallocated (1)		940		954
Total assets	$	5,544,001		5,791,320

(1) Certain assets that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis.