| Reportable Segments |
(17) Reportable Segments (a) | Summary of Reportable Segments |
The Company’s operations, which are located in the United States, are organized into three reportable segments: (i) exploration and production; (ii) the Company’s equity method investment in Antero Midstream and (iii) marketing. Substantially all of the Company’s production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. 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, customers 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 (loss). The CODM considered the Company’s actual operating income (loss) as compared to the operating income (loss) 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. General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income (expense), income taxes and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. 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. Exploration and Production The exploration and production segment is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations. Equity Method Investment in Antero Midstream The Company receives midstream services through its equity method investment in Antero Midstream. Antero Midstream is a related party, and the Company’s CODM also serves as the CODM for Antero Midstream. Antero Midstream owns, operates and develops midstream energy infrastructure primarily to service the Company’s production and completion activity in the Appalachian Basin. Antero Midstream’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts. Marketing Where feasible, the Company purchases and sells third-party natural gas and NGLs and markets its excess firm transportation capacity, or engages third parties to conduct these activities on the Company’s behalf, in order to optimize the revenues from these transportation agreements. The Company has entered into long-term firm transportation agreements for a significant portion of its current and expected future production in order to secure guaranteed capacity to favorable markets. (b) | Reportable Segments Financial Information |
The operating results and assets of the Company’s reportable segments were as follows (in thousands): | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2023 | | | | | | | | Equity Method | | | | | | | | Exploration | | | | Investment in | | Elimination of | | | | | | and | | | | Antero | | Unconsolidated | | Consolidated | | | | Production | | Marketing | | Midstream (1) | | Affiliate | | Total | | Sales and revenues: | | | | | | | | | | | | | | | | | Third-party | | $ | 4,473,969 | | | 206,122 | | | 1,414 | | | (1,414) | | | 4,680,091 | | Intersegment | | | 1,881 | | | — | | | 1,040,357 | | | (1,040,357) | | | 1,881 | | Total revenue | | | 4,475,850 | | | 206,122 | | | 1,041,771 | | | (1,041,771) | | | 4,681,972 | | | | | | | | | | | | | | | | | | | Operating expenses: | | | | | | | | | | | | | | | | | Lease operating | | | 118,441 | | | — | | | — | | | — | | | 118,441 | | Gathering and compression | | | 858,462 | | | — | | | 95,507 | | | (95,507) | | | 858,462 | | Processing | | | 1,014,181 | | | — | | | — | | | — | | | 1,014,181 | | Transportation | | | 769,715 | | | — | | | — | | | — | | | 769,715 | | Water handling | | | — | | | — | | | 117,658 | | | (117,658) | | | — | | Production and ad valorem taxes | | | 158,855 | | | — | | | — | | | — | | | 158,855 | | Marketing | | | — | | | 284,965 | | | — | | | — | | | 284,965 | | General and administrative (excluding equity-based compensation) | | | 164,997 | | | — | | | 39,462 | | | (39,462) | | | 164,997 | | Equity-based compensation | | | 59,519 | | | — | | | 31,606 | | | (31,606) | | | 59,519 | | Facility idling | | | — | | | — | | | 2,459 | | | (2,459) | | | — | | Depletion, depreciation and amortization | | | 746,849 | | | — | | | 136,059 | | | (136,059) | | | 746,849 | | Impairment of property and equipment | | | 51,302 | | | — | | | 146 | | | (146) | | | 51,302 | | Other (2) | | | 34,676 | | | 23,763 | | | 7,012 | | | (7,012) | | | 58,439 | | Total operating expenses | | | 3,976,997 | | | 308,728 | | | 429,909 | | | (429,909) | | | 4,285,725 | | Operating income (loss) | | $ | 498,853 | | | (102,606) | | | 611,862 | | | (611,862) | | | 396,247 | | Equity in earnings of unconsolidated affiliates | | $ | 82,952 | | | — | | | 105,456 | | | (105,456) | | | 82,952 | | Capital expenditures for segment assets | | $ | 1,131,863 | | | — | | | 183,733 | | | (183,733) | | | 1,131,863 | |
| (1) | Amounts reflect those recorded in Antero Midstream Corporation’s consolidated financial statements. |
| (2) | Amounts include charges for exploration expenses, accretion of asset retirement obligations, loss on settlement of asset retirement obligations, contract termination, loss contingency and settlements, loss (gain) on sale of assets, as applicable, which represent segment operating expenses that are not considered significant. |
| | | | | | | | | | | | | | | | | | | Year Ended December 31, 2024 | | | | | | | | Equity Method | | | | | | | | Exploration | | | | Investment in | | Elimination of | | | | | | and | | | | Antero | | Unconsolidated | | Consolidated | | | | Production | | Marketing | | Midstream (1) | | Affiliate | | Total | | Sales and revenues: | | | | | | | | | | | | | | | | | Third-party | | $ | 4,144,229 | | | 179,069 | | | 1,944 | | | (1,944) | | | 4,323,298 | | Intersegment | | | 2,298 | | | — | | | 1,104,249 | | | (1,104,249) | | | 2,298 | | Total revenue | | | 4,146,527 | | | 179,069 | | | 1,106,193 | | | (1,106,193) | | | 4,325,596 | | | | | | | | | | | | | | | | | | | Operating expenses: | | | | | | | | | | | | | | | | | Lease operating | | | 118,693 | | | — | | | — | | | — | | | 118,693 | | Gathering and compression | | | 897,160 | | | — | | | 103,053 | | | (103,053) | | | 897,160 | | Processing | | | 1,069,887 | | | — | | | — | | | — | | | 1,069,887 | | Transportation | | | 735,883 | | | — | | | — | | | — | | | 735,883 | | Water handling | | | — | | | — | | | 114,923 | | | (114,923) | | | — | | Production and ad valorem taxes | | | 207,671 | | | — | | | — | | | — | | | 207,671 | | Marketing | | | — | | | 244,906 | | | — | | | — | | | 244,906 | | General and administrative (excluding equity-based compensation) | | | 162,876 | | | — | | | 41,754 | | | (41,754) | | | 162,876 | | Equity-based compensation | | | 66,462 | | | — | | | 44,332 | | | (44,332) | | | 66,462 | | Facility idling | | | — | | | — | | | 1,721 | | | (1,721) | | | — | | Depletion, depreciation and amortization | | | 762,068 | | | — | | | 140,000 | | | (140,000) | | | 762,068 | | Impairment of property and equipment | | | 47,433 | | | — | | | 332 | | | (332) | | | 47,433 | | Other (2) | | | 12,097 | | | — | | | 912 | | | (912) | | | 12,097 | | Total operating expenses | | | 4,080,230 | | | 244,906 | | | 447,027 | | | (447,027) | | | 4,325,136 | | Operating income (loss) | | $ | 66,297 | | | (65,837) | | | 659,166 | | | (659,166) | | | 460 | | Equity in earnings of unconsolidated affiliates | | $ | 93,787 | | | — | | | 110,573 | | | (110,573) | | | 93,787 | | Capital expenditures for segment assets | | $ | 716,779 | | | — | | | 172,347 | | | (172,347) | | | 716,779 | |
| (1) | Amounts reflect those recorded in Antero Midstream Corporation’s consolidated financial statements. |
| (2) | Amounts include charges for exploration expenses, accretion of asset retirement obligations, loss on settlement of asset retirement obligations, contract termination, loss contingency and settlements, loss (gain) on sale of assets and other operating expenses, as applicable, which represent segment operating expenses that are not considered significant. |
| | | | | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | | | | | | | Equity Method | | | | | | | | Exploration | | | | Investment in | | Elimination of | | | | | | and | | | | Antero | | Unconsolidated | | Consolidated | | | | Production | | Marketing | | Midstream (1) | | Affiliate | | Total | | Sales and revenues: | | | | | | | | | | | | | | | | | Third-party | | $ | 5,147,647 | | | 125,900 | | | 2,415 | | | (2,415) | | | 5,273,547 | | Intersegment | | | 2,276 | | | — | | | 1,186,011 | | | (1,186,011) | | | 2,276 | | Total revenue | | | 5,149,923 | | | 125,900 | | | 1,188,426 | | | (1,188,426) | | | 5,275,823 | | | | | | | | | | | | | | | | | | | Operating expenses: | | | | | | | | | | | | | | | | | Lease operating | | | 135,124 | | | — | | | — | | | — | | | 135,124 | | Gathering and compression | | | 946,900 | | | — | | | 107,846 | | | (107,846) | | | 946,900 | | Processing | | | 1,125,358 | | | — | | | — | | | — | | | 1,125,358 | | Transportation | | | 785,168 | | | — | | | — | | | — | | | 785,168 | | Water handling | | | — | | | — | | | 124,064 | | | (124,064) | | | — | | Production and ad valorem taxes | | | 163,135 | | | — | | | — | | | — | | | 163,135 | | Marketing | | | — | | | 190,206 | | | — | | | — | | | 190,206 | | General and administrative (excluding equity-based compensation) | | | 171,714 | | | — | | | 41,976 | | | (41,976) | | | 171,714 | | Equity-based compensation | | | 60,812 | | | — | | | 45,958 | | | (45,958) | | | 60,812 | | Facility idling | | | — | | | — | | | 1,801 | | | (1,801) | | | — | | Depletion, depreciation and amortization | | | 749,675 | | | — | | | 134,310 | | | (134,310) | | | 749,675 | | Impairment of property and equipment | | | 29,358 | | | — | | | 984 | | | (984) | | | 29,358 | | Loss on long-lived assets | | | — | | | — | | | 86,626 | | | (86,626) | | | — | | Other (2) | | | 34,727 | | | — | | | 192 | | | (192) | | | 34,727 | | Total operating expenses | | | 4,201,971 | | | 190,206 | | | 543,757 | | | (543,757) | | | 4,392,177 | | Operating income (loss) | | $ | 947,952 | | | (64,306) | | | 644,669 | | | (644,669) | | | 883,646 | | Equity in earnings of unconsolidated affiliates | | $ | 98,484 | | | — | | | 116,439 | | | (116,439) | | | 98,484 | | Capital expenditures for segment assets | | $ | 820,122 | | | — | | | 162,255 | | | (162,255) | | | 820,122 | |
| (1) | Amounts reflect those recorded in Antero Midstream Corporation’s consolidated financial statements. |
| (2) | Amounts include charges for exploration expenses, accretion of asset retirement obligations, contract termination, loss contingency and settlements, loss (gain) on sale of assets and other operating expenses, as applicable, which represent segment operating expenses that are not considered significant. |
| | | | | | | | | | | | | | | | | | | As of December 31, 2024 | | | | | | | | Equity Method | | | | | | | | Exploration | | | | Investment in | | Elimination of | | | | | | and | | | | Antero | | Unconsolidated | | Consolidated | | | | Production | | Marketing | | Midstream (1) | | Affiliate | | Total | | Investments in unconsolidated affiliates | | $ | 231,048 | | | — | | | 603,956 | | | (603,956) | | | 231,048 | | Total assets | | | 12,999,930 | | | 10,120 | | | 5,761,748 | | | (5,761,748) | | | 13,010,050 | |
| (1) | Amounts reflect those recorded in Antero Midstream Corporation’s consolidated financial statements. |
| | | | | | | | | | | | | | | | | | | As of December 31, 2025 | | | | | | | | Equity Method | | | | | | | | Exploration | | | | Investment in | | Elimination of | | | | | | and | | | | Antero | | Unconsolidated | | Consolidated | | | | Production | | Marketing | | Midstream (1) | | Affiliate | | Total | | Investments in unconsolidated affiliates | | $ | 245,653 | | | — | | | 585,778 | | | (585,778) | | | 245,653 | | Total assets | | | 13,238,013 | | | 7,394 | | | 5,884,116 | | | (5,884,116) | | | 13,245,407 | |
| (1) | Amounts reflect those recorded in Antero Midstream Corporation’s consolidated financial statements. |
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