Reportable Segments

12 Months Ended

Dec. 31, 2024

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 (including the expertise required for these operations), production processes and distribution methods. The Company’s Chairman of the Board, Director, Chief Executive Officer and President was determined to be the Company’s chief operating decision maker (“CODM”). The CODM evaluates the performance of the Company’s business segments based on operating income. The CODM considered the Company’s actual operating income as compared to the operating income for (i) the relevant prior period actual results, (ii) budget and (iii) guidance on a monthly basis for purposes of evaluating performance of each segment and making decisions about allocating capital and other resources to each segment. Interest expense is primarily managed and evaluated on a consolidated basis. 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.

(a)Summary of Reportable Segments

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 well completions.

(b)Reportable Segments Financial Information

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

	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 (excluding equity-based compensation)		24,578		13,080		4,813		42,471
Equity-based compensation		14,394		4,415		845		19,654
Facility idling		—		4,166		—		4,166
Depreciation		81,390		50,372		—		131,762
Impairment of property and equipment		1,130		2,572		—		3,702
Other (2)		(2,120)		630		—		(1,490)
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	$	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.

(2) Amounts include charges for accretion of asset retirement obligations, loss on settlement of asset retirement obligations and loss (gain) on sale of assets, as applicable, which represent segment operating expenses that are not considered significant.

	Year Ended December 31, 2023
	Gathering and		Water				Consolidated
(in thousands)	Processing		Handling		Unallocated (1)		Total
Revenues:
Revenue–Antero Resources	$	842,362		268,667		—		1,111,029
Revenue–third-party		—		1,414		—		1,414
Amortization of customer relationships		(37,086)		(33,586)		—		(70,672)
Total revenues		805,276		236,495		—		1,041,771
Operating expenses:
Direct operating		95,507		117,658		—		213,165
General and administrative (excluding equity-based compensation)		22,532		12,497		4,433		39,462
Equity-based compensation		23,313		7,362		931		31,606
Facility idling		—		2,459		—		2,459
Depreciation		83,409		52,650		—		136,059
Impairment of property and equipment		133		13		—		146
Other (2)		6,039		973		—		7,012
Total operating expenses		230,933		193,612		5,364		429,909
Operating income	$	574,343		42,883		(5,364)		611,862
Equity in earnings of unconsolidated affiliates	$	105,456		—		—		105,456
Additions to property and equipment	$	130,305		53,428		—		183,733

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

(2) Amounts include charges for accretion of asset retirement obligations, loss on settlement of asset retirement obligations and loss (gain) on sale of assets, as applicable, which represent segment operating expenses that are not considered significant.

	Year Ended December 31, 2024
	Gathering and		Water				Consolidated
(in thousands)	Processing		Handling		Unallocated (1)		Total
Revenues:
Revenue–Antero Resources	$	926,063		248,858		—		1,174,921
Revenue–third-party		—		1,944		—		1,944
Amortization of customer relationships		(37,086)		(33,586)		—		(70,672)
Total revenues		888,977		217,216		—		1,106,193
Operating expenses:
Direct operating		103,053		114,923		—		217,976
General and administrative (excluding equity-based compensation)		28,814		8,279		4,661		41,754
Equity-based compensation		35,535		7,800		997		44,332
Facility idling		—		1,721		—		1,721
Depreciation		84,398		55,602		—		140,000
Impairment of property and equipment		332		—		—		332
Other (2)		—		912		—		912
Total operating expenses		252,132		189,237		5,658		447,027
Operating income	$	636,845		27,979		(5,658)		659,166
Equity in earnings of unconsolidated affiliates	$	110,573		—		—		110,573
Additions to property and equipment	$	141,832		30,515		—		172,347

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

(2) Amounts include charges for accretion of asset retirement obligations, loss on settlement of asset retirement obligations and loss (gain) on sale of assets, as applicable, which represent segment operating expenses that are not considered significant.

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

	Year Ended December 31, 2023
	Gathering and		Water				Consolidated
(in thousands)	Processing		Handling		Unallocated (1)		Total
Investments in unconsolidated affiliates	$	626,650		—		—		626,650
Total assets		4,691,827		1,045,725		66		5,737,618

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

	Year Ended December 31, 2024
	Gathering and		Water				Consolidated
(in thousands)	Processing		Handling		Unallocated (1)		Total
Investments in unconsolidated affiliates	$	603,956		—		—		603,956
Total assets		4,769,825		991,923		—		5,761,748

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