Leases (Tables)

3 Months Ended

Mar. 31, 2025

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,			March 31,
Leases		Balance Sheet Classification		2024			2025
Operating Leases
Operating lease right-of-use assets:
Processing plants		Operating lease right-of-use assets		$	1,365,582			1,305,589
Drilling rigs and completion services		Operating lease right-of-use assets			—			31,350
Gas gathering lines and compressor stations ⁽¹⁾		Operating lease right-of-use assets			1,149,981			1,155,397
Office space		Operating lease right-of-use assets			33,345			32,133
Office, field and other equipment		Operating lease right-of-use assets			490			1,836
Total operating lease right-of-use assets				$	2,549,398			2,526,305
Operating lease liabilities:
Short-term operating lease liabilities		Short-term lease liabilities		$	492,624			514,441
Long-term operating lease liabilities		Long-term lease liabilities			2,048,942			2,004,172
Total operating lease liabilities				$	2,541,566			2,518,613

Finance Leases
Finance lease right-of-use assets:
Vehicles		Other property and equipment		$	2,665			3,096
Total finance lease right-of-use assets ⁽²⁾				$	2,665			3,096
Finance lease liabilities:
Short-term finance lease liabilities		Short-term lease liabilities		$	1,270			1,439
Long-term finance lease liabilities		Long-term lease liabilities			1,395			1,657
Total finance lease liabilities				$	2,665			3,096

(1)	Gas gathering lines and compressor stations includes $1.1 billion and $1.2 billion related to Antero Midstream as of December 31, 2024 and March 31, 2025, respectively. See “—Related party lease disclosure” for additional discussion.

(2)	Financing lease assets are recorded net of accumulated amortization of $3 million as of December 31, 2024 and March 31, 2025.

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 March 31,
Cost		Classification		Location		2024			2025
Operating lease cost		Statement of operations		Gathering, compression, processing and transportation		$	422,068			395,121
Operating lease cost		Statement of operations		General and administrative			3,083			3,141
Operating lease cost		Statement of operations		Lease operating			21			225
Operating lease cost		Balance sheet		Proved properties ⁽¹⁾			33,412			7,399
Total operating lease cost						$	458,584			405,886

Finance lease cost:
Amortization of right-of-use assets		Statement of operations		Depletion, depreciation and amortization		$	430			409
Interest on lease liabilities		Statement of operations		Interest expense			148			118
Total finance lease cost						$	578			527

Short-term lease payments						$	29,443			42,906

(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):


		Three Months Ended March 31,
		2024			2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	350,925			390,822
Operating cash flows from finance leases			148			118
Investing cash flows from operating leases			27,976			4,510
Financing cash flows from finance leases			259			337

Noncash activities:
Right-of-use assets obtained in exchange for new operating lease obligations		$	97,137			126,280
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net ⁽¹⁾		$	4,511			(14,517)

(1)

During the three months ended March 31, 2024, the weighted average discount rate for remeasured operating leases decreased from 6.5% as of December 31, 2023 to 5.9% as of March 31, 2024. During the three months ended March 31, 2025, the weighted average discount rate for remeasured operating leases increased from 5.5% as of December 31, 2024 to 5.8% as of March 31, 2025.

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 March 31, 2025 (in thousands):


		Operating Leases			Financing Leases			Total
Remainder of 2025		$	487,591			1,356			488,947
2026			601,880			1,480			603,360
2027			486,784			459			487,243
2028			406,113			285			406,398
2029			322,110			35			322,145
Thereafter			657,786			—			657,786
Total lease payments			2,962,264			3,615			2,965,879
Less: imputed interest			(443,651)			(519)			(444,170)
Total		$	2,518,613			3,096			2,521,709

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 March 31, 2025 (in thousands):


		Operating Leases			Financing Leases			Total
Remainder of 2025		$	487,591			1,356			488,947
2026			601,880			1,480			603,360
2027			486,784			459			487,243
2028			406,113			285			406,398
2029			322,110			35			322,145
Thereafter			657,786			—			657,786
Total lease payments			2,962,264			3,615			2,965,879
Less: imputed interest			(443,651)			(519)			(444,170)
Total		$	2,518,613			3,096			2,521,709

Summary of weighted-average remaining lease term and discount rate


		December 31, 2024				March 31, 2025
		Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term		6.0 years		2.1 years		6.0 years		2.4 years
Weighted average discount rate		5.5	%	8.4	%	5.6	%	8.6	%