| Reportable Segments |
(17) 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 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, 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. |
| | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | | | Gathering and | | Water | | | | Consolidated | | (in thousands) | | Processing | | Handling | | Unallocated (1) | | Total | | Revenues: | | | | | | | | | | | | | | Revenue–Antero Resources | | $ | 987,284 | | | 269,399 | | | — | | | 1,256,683 | | Revenue–third-party | | | — | | | 2,415 | | | — | | | 2,415 | | Amortization of customer relationships | | | (37,086) | | | (33,586) | | | — | | | (70,672) | | Total revenues | | | 950,198 | | | 238,228 | | | — | | | 1,188,426 | | Operating expenses: | | | | | | | | | | | | | | Direct operating | | | 107,846 | | | 124,064 | | | — | | | 231,910 | | General and administrative (excluding equity-based compensation) | | | 21,394 | | | 14,879 | | | 5,703 | | | 41,976 | | Equity-based compensation | | | 30,025 | | | 14,789 | | | 1,144 | | | 45,958 | | Facility idling | | | — | | | 1,801 | | | — | | | 1,801 | | Depreciation | | | 76,559 | | | 57,751 | | | — | | | 134,310 | | Impairment of property and equipment | | | — | | | 984 | | | — | | | 984 | | Loss on long-lived assets | | | 82,960 | | | 3,666 | | | — | | | 86,626 | | Other (2) | | | — | | | 192 | | | — | | | 192 | | Total operating expenses | | | 318,784 | | | 218,126 | | | 6,847 | | | 543,757 | | Operating income | | $ | 631,414 | | | 20,102 | | | (6,847) | | | 644,669 | | | | | | | | | | | | | | | | Equity in earnings of unconsolidated affiliates | | $ | 116,439 | | | — | | | — | | | 116,439 | | Additions to property and equipment | | $ | 91,533 | | | 70,722 | | | — | | | 162,255 | |
(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, 2024 | | | | Gathering and | | Water | | | | Consolidated | | (in thousands) | | Processing | | Handling | | Unallocated | | Total | | Investments in unconsolidated affiliates | | $ | 603,956 | | | — | | | — | | | 603,956 | | Total assets | | | 4,769,825 | | | 991,923 | | | — | | | 5,761,748 | |
| | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | | | Gathering and | | Water | | | | Consolidated | | (in thousands) | | Processing | | Handling | | Unallocated (1) | | Total | | Investments in unconsolidated affiliates | | $ | 585,778 | | | — | | | — | | | 585,778 | | Total assets | | | 4,651,002 | | | 968,282 | | | 264,832 | | | 5,884,116 | |
(1) | Certain assets that are not directly attributable to gathering and processing and water handling are managed and evaluated on a consolidated basis. |
|