6 unchanged sentences
Unregistered Sales of Equity Securities
−Removed: Other Information
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
2 unchanged sentences
Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words.
−Removed: These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.
When considering these forward-looking statements, investors should keep in mind the risk factors and other cautionary statements in this Quarterly Report on Form 10-Q.
−Removed: These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events.
+Added: These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events.
Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include:
4 unchanged sentences
● natural gas, natural gas liquids (“NGLs”), and oil prices;
+Added: ● impacts of world health events, including the coronavirus (“COVID-19”) pandemic;
● timing and amount of future production of natural gas, NGLs, and oil;
16 unchanged sentences
We caution investors that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond our control.
−Removed: These risks include, but are not limited to, commodity price volatility, inflation, availability of drilling, completion, and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes, the uncertainty inherent in estimating natural gas, NGLs, and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of world health events, including the COVID-19 pandemic, potential shut-ins of production due to lack of downstream demand or storage capacity, and the other risks described under the heading “Item 1A.
−Removed: Risk Factors” in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”) on file with the Securities and Exchange Commission (“SEC”).
+Added: These risks include, but are not limited to, commodity price volatility, inflation, availability of drilling, completion, and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes, the uncertainty inherent in estimating natural gas, NGLs, and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of world health events, including the COVID-19 pandemic, potential shut-ins of production due to lack of downstream demand or storage capacity, and the other risks described or referenced under the heading “Risk Factors” herein, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”) and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, each of which is on file with the Securities and Exchange Commission (“SEC”).
Reserve engineering is a process of estimating underground accumulations of natural gas, NGLs, and oil that cannot be measured in an exact manner.
3 unchanged sentences
Accordingly, reserve estimates may differ significantly from the quantities of natural gas, NGLs, and oil that are ultimately recovered.
−Removed: Should one or more of the risks or uncertainties described in this Quarterly Report on Form 10-Q or the 2019 Form 10-K occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.
+Added: Should one or more of the risks or uncertainties described or referenced in this Quarterly Report on Form 10-Q occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.
All forward-looking statements, expressed or implied, included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement.
4 unchanged sentences
Condensed Consolidated Balance Sheets
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
(In thousands)
42 unchanged sentences
authorized - 1,000,000 shares;
−Removed: 295,941 shares and 268,926 shares issued and outstanding at December 31, 2019 and March 31, 2020, respectively
+Added: 295,941 shares and 268,390 shares issued and outstanding at December 31, 2019 and June 30, 2020, respectively
Additional paid-in capital
Accumulated earnings
+Added: Total stockholders' equity
+Added: Noncontrolling interests
Total liabilities and equity
2 unchanged sentences
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
−Removed: Three Months Ended March 31, 2019 and 2020
+Added: Three Months Ended June 30, 2019 and 2020
(In thousands, except per share amounts)
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
Revenue and other:
2 unchanged sentences
Commodity derivative fair value gains (losses)
+Added: Total revenue
+Added: Operating expenses:
+Added: Lease operating
+Added: Gathering, compression, processing, and transportation
+Added: Production and ad valorem taxes
+Added: Impairment of oil and gas properties
+Added: Depletion, depreciation, and amortization
+Added: Loss on sale of assets
+Added: Accretion of asset retirement obligations
+Added: General and administrative (including equity-based compensation expense of $ 6,549 and $ 7,973 in 2019 and 2020, respectively)
+Added: Contract termination and rig stacking
+Added: Total operating expenses
+Added: Operating income (loss)
+Added: Other income (expenses):
+Added: Equity in earnings of unconsolidated affiliates
+Added: Transaction expense
+Added: Interest expense, net
+Added: Gain on early extinguishment of debt
+Added: Total other income (expenses)
+Added: Income (loss) before income taxes
+Added: Provision for income tax (expense) benefit
+Added: Net income (loss) and comprehensive income (loss) including noncontrolling interests
+Added: net income and comprehensive income attributable to noncontrolling interests
+Added: Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation
+Added: Income (loss) per share—basic
+Added: Income (loss) per share—diluted
+Added: Weighted average number of shares outstanding:
+Added: See accompanying notes to unaudited condensed consolidated financial statements
+Added: ANTERO RESOURCES CORPORATION
+Added: Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
+Added: Six Months Ended June 30, 2019 and 2020
+Added: (In thousands, except per share amounts)
+Added: Six Months Ended June 30,
+Added: Revenue and other:
+Added: Natural gas sales
+Added: Natural gas liquids sales
+Added: Commodity derivative fair value gains
Gathering, compression, water handling and treatment
−Removed: Total revenue and other
+Added: Total revenue
Operating expenses:
5 unchanged sentences
Depletion, depreciation, and amortization
+Added: Loss on sale of assets
Accretion of asset retirement obligations
7 unchanged sentences
Gain on deconsolidation of Antero Midstream Partners LP
+Added: Transaction expense
Interest expense, net
2 unchanged sentences
Income (loss) before income taxes
+Added: ( 1,054,267 )
Provision for income tax (expense) benefit
8 unchanged sentences
Condensed Consolidated Statement of Equity
−Removed: Three Months Ended March 31, 2019
+Added: Six Months Ended June 30, 2019
(In thousands)
9 unchanged sentences
Balances, March 31, 2019
+Added: Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes
+Added: Equity-based compensation
+Added: Net income and comprehensive income
+Added: Balances, June 30, 2019
See accompanying notes to unaudited condensed consolidated financial statements.
1 unchanged sentence
Condensed Consolidated Statement of Equity
−Removed: Three Months Ended March 31, 2020
+Added: Six Months Ended June 30, 2020
(In thousands)
+Added: Noncontrolling
Balances, December 31, 2019
4 unchanged sentences
Balances, March 31, 2020
+Added: Issuance of common units in Martica Holdings LLC
+Added: Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes
+Added: Distributions to noncontrolling interest
+Added: Repurchases and retirements of common stock
+Added: Equity-based compensation
+Added: Net loss and comprehensive loss
+Added: Balances, June 30, 2020
See accompanying notes to unaudited condensed consolidated financial statements.
1 unchanged sentence
Condensed Consolidated Statements of Cash Flows
−Removed: Three Months Ended March 31, 2019 and 2020
+Added: Six Months Ended June 30, 2019 and 2020
(In thousands)
−Removed: Three Months Ended March 31,
+Added: Six Months Ended June 30,
Cash flows provided by (used in) operating activities:
4 unchanged sentences
Impairment of midstream assets
−Removed: Commodity derivative fair value (gains) losses
+Added: Commodity derivative fair value gains
Gains on settled commodity derivatives
+Added: Loss on sale of assets
Equity-based compensation expense
24 unchanged sentences
Proceeds from the Antero Midstream Partners LP Transactions
+Added: Proceeds from asset sales
Change in other assets
6 unchanged sentences
Payments of deferred financing costs
+Added: Sale of noncontrolling interest
Distributions to noncontrolling interests in Antero Midstream Partners LP
Employee tax withholding for settlement of equity compensation awards
−Removed: Net cash provided by (used in) financing activities
+Added: Net cash provided by financing activities
Effect of deconsolidation of Antero Midstream Partners LP
4 unchanged sentences
Cash paid during the period for interest
−Removed: Increase (decrease) in accounts payable and accrued liabilities for additions to property and equipment
+Added: Decrease in accounts payable and accrued liabilities for additions to property and equipment
See accompanying notes to unaudited condensed consolidated financial statements.
1 unchanged sentence
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
(1) Organization
7 unchanged sentences
These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements.
−Removed: In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2019 and March 31, 2020, and the results of its operations and its cash flows for the three months ended March 31, 2019 and 2020.
+Added: In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2019 and June 30, 2020, its results of operations for the three and six months ended June 30, 2019 and 2020 and its cash flows for the six months ended June 30, 2019 and 2020.
The Company has no items of other comprehensive income or loss;
therefore, its net income or loss is equal to its comprehensive income or loss.
−Removed: Operating results for the period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs, and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments, the impacts of COVID-19 and other factors.
+Added: Operating results for the period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs, and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments, the impacts of COVID-19 and other factors.
Principles of Consolidation
1 unchanged sentence
Through March 12, 2019, Antero Midstream Partners LP (“Antero Midstream Partners”), a publicly traded limited partnership, was included in the consolidated financial statements of Antero.
−Removed: Prior to the Closing (defined in Note 3 to the unaudited condensed consolidated financial statements), our ownership of Antero Midstream Partners common units represented approximately a 53 % limited partner interest in Antero Midstream Partners, and we consolidated Antero Midstream Partners’ financial position and results of operations into our consolidated financial statements.
−Removed: The Transactions (defined in Note 3 to the unaudited condensed consolidated financial statements) resulted in the exchange of the limited partner interest we owned in Antero Midstream Partners for common stock of Antero Midstream Corporation, par value $ 0.01 per share (the “Antero Midstream Corporation common stock”), representing an approximate 31 % interest in Antero Midstream Corporation.
+Added: Prior to the Closing (defined in Note 3—Deconsolidation of Antero Midstream Partners LP to the unaudited condensed consolidated financial statements), our ownership of Antero Midstream Partners common units represented approximately a 53 % limited partner interest in Antero Midstream Partners, and we consolidated Antero Midstream Partners’ financial position and results of operations into our consolidated financial statements.
+Added: The Transactions (defined in Note 3—Deconsolidation of Antero Midstream Partners LP to the unaudited condensed consolidated financial statements) resulted in the exchange of the limited partner interest we owned in Antero Midstream Partners for common stock of Antero Midstream Corporation, par value $ 0.01 per share (the “Antero Midstream Corporation common stock”), representing an approximate 31 % interest in Antero Midstream Corporation.
As a result, our controlling interest in Antero Midstream Partners was converted to an interest in Antero Midstream Corporation that provides significant influence, but not control, over Antero Midstream Corporation.
Thus, effective March 13, 2019, Antero no longer consolidates Antero Midstream Partners in its consolidated financial statements and accounts for its interest in Antero Midstream Corporation using the equity method of accounting.
−Removed: See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
−Removed: All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements.
−Removed: The noncontrolling interest in the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2019 represents the interests in Antero Midstream Partners that were owned by the public prior to the Transactions, and the incentive distribution rights in Antero Midstream Partners.
+Added: See Note 3—Deconsolidation of Antero Midstream Partners LP to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
+Added: For the three months and six months ended June 30, 2020, we have determined that Martica Holdings LLC (“Martica”) is a VIE for which Antero is the primary beneficiary.
+Added: Therefore, Martica’s accounts are consolidated in the Company’s consolidated financial statements.
+Added: Antero is the primary beneficiary of Martica based on its power to direct the activities that most significantly
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
+Added: impact Martica’s economic performance, and its obligation to absorb losses of, or right to receive benefits from, Martica that could be significant to Martica.
+Added: In reaching such determination that Antero is the primary beneficiary of Martica, the Company considered the following:
+Added: ● Martica was formed to hold certain overriding royalty interests across the Company’s existing asset base;
+Added: ● substantially all of Martica’s revenues are derived from production from the Company’s natural gas, NGLs, and oil properties in the Appalachian Basin in West Virginia and Ohio;
+Added: ● Antero owns the Class B Units in Martica, which entitle Antero to receive distributions in respect of the Incremental Override (as defined in Note 4—Conveyance of Overriding Royalty Interest);
+Added: ● Antero provides accounting, administrative and other services to Martica under a Management Services Agreement.
+Added: All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements.
+Added: The noncontrolling interest in the Company’s unaudited condensed consolidated financial statements for the six months ended June 30, 2019 represents the interests in Antero Midstream Partners that were owned by the public prior to the Transactions, and the incentive distribution rights in Antero Midstream Partners.
+Added: The noncontrolling interest in the Company’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2020 represents the interest in Martica owned by third parties.
+Added: See Note 4—Conveyance of Overriding Royalty Interest for more information on the sale of this noncontrolling interest.
+Added: Martica is a discrete entity and the assets and credit of Martica are not available to satisfy the debts and obligations of the Company or its other subsidiaries.
Investments in entities for which the Company exercises significant influence, but not control, are accounted for under the equity method.
13 unchanged sentences
Other items in the Company’s unaudited condensed consolidated financial statements that involve the use of significant estimates include derivative assets and liabilities, accrued revenue, deferred and current income taxes, equity-based compensation, asset retirement obligations, depreciation, amortization, and commitments and contingencies.
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
Risks and Uncertainties
8 unchanged sentences
As of December 31, 2019, the book overdraft included within accounts payable and revenue distributions payable were $ 7 million and $ 18 million, respectively.
−Removed: As of March 31, 2020, the book overdraft included within accounts payable and revenue distributions payable were $ 5 million and $ 21 million, respectively.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: As of June 30, 2020, the book overdraft included within revenue distributions payable was $ 5 million and no overdraft was included in accounts payable.
Oil and Gas Properties
5 unchanged sentences
The Company reviews exploration costs related to wells-in- progress at the end of each quarter and makes a determination, based on known results of drilling at that time, whether the costs should continue to be capitalized pending further well testing and results, or charged to expense.
−Removed: The Company incurred no such charges to expense during the three months ended March 31, 2019 and 2020.
+Added: The Company incurred no such charges to expense during the three and six months ended June 30, 2019 and 2020.
The sale of a partial interest in a proved property is accounted for as a cost recovery, and no gain or loss is recognized as long as this treatment does not significantly affect the units-of- production amortization rate.
4 unchanged sentences
Proceeds from sales of partial interests in unproved properties are accounted for as a recovery of cost without recognition of any gain or loss until the cost has been recovered.
−Removed: Impairment of oil and gas properties was $ 81 million and $ 89 million for the three months ended March 31, 2019 and 2020, respectively.
+Added: For the three months ended June 30, 2019 and 2020, impairment of oil and gas properties was $ 131 million and $ 37 million, respectively.
+Added: For the six months ended June 30, 2019 and 2020, impairment of oil and gas properties was $ 212 million and $ 127 million, respectively.
The Company evaluates the carrying amount of its proved natural gas, NGLs, and oil properties for impairment on a geological reservoir basis whenever events or changes in circumstances indicate that a property’s carrying amount may not be recoverable.
2 unchanged sentences
Derivative Financial Instruments
−Removed: In order to manage its exposure to natural gas, NGLs, and oil price volatility, the Company enters into derivative transactions from time to time, which may include commodity swap agreements, basis swap agreements, collar agreements, and other similar agreements related to the price risk associated with the Company’s production.
+Added: In order to manage its exposure to natural gas, NGLs, and oil price volatility, the Company enters into derivative transactions from time to time, which may include commodity swap agreements, basis swap agreements, collar agreements, and other similar
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: agreements related to the price risk associated with the Company’s production.
To the extent legal right of offset exists with a counterparty, the Company reports derivative assets and liabilities on a net basis.
11 unchanged sentences
The liability is accreted at the end of each period through charges to operating expense.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
Natural Gas, NGLs, and Oil Revenues
10 unchanged sentences
NGLs, which are extracted from natural gas through processing, are either sold by us directly or by the processor under processing contracts.
−Removed: For NGLs sold by us directly, our sales contracts provide that we deliver the product to the purchaser at an agreed upon delivery point and that we receive a specific index price adjusted for pricing differentials.
+Added: For NGLs sold by us directly, our sales contracts primarily provide that we deliver the product to the purchaser at an agreed upon delivery point and that we receive a specific index price adjusted for pricing differentials.
We transfer control of the product to the purchaser at the delivery point and recognize revenue based on the contract price.
9 unchanged sentences
Contracts to sell third party gas and NGLs are generally subject to similar terms as contracts to sell our produced natural gas and NGLs.
−Removed: We satisfy performance obligations to the purchaser by transferring control of the product at the delivery point and recognize revenue based on the contract price received from the purchaser.
+Added: We satisfy performance obligations to the purchaser by transferring control of the product at the delivery point and recognize revenue based on the contract
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: price received from the purchaser.
Fees generated from the sale of excess firm transportation marketed to third parties are included in Marketing revenue.
5 unchanged sentences
Effective March 13, 2019, Antero Midstream Partners is no longer consolidated in Antero’s results.
−Removed: See Note 3 to the consolidated financial statements for further discussion on the Transactions and Note 17 to the consolidated financial statements for disclosures on the Company’s reportable segments.
+Added: See Note 3 —Deconsolidation of Antero Midstream Partners LP to the consolidated financial statements for further discussion on the Transactions and Note 18—Segment information to the consolidated financial statements for disclosures on the Company’s reportable segments.
The portion of such fees shown in our consolidated financial statements prior to March 13, 2019 represent amounts charged to interest owners in Antero-operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Antero Midstream Partners or usage of Antero Midstream Partners’ gathering and compression systems.
−Removed: For gathering and compression revenue, Antero Midstream Partners
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: satisfied its performance obligations and recognized revenue when low pressure volumes were delivered to a compressor station, high pressure volumes were delivered to a processing plant or transmission pipeline, and compression volumes were delivered to a high pressure line.
+Added: For gathering and compression revenue, Antero Midstream Partners satisfied its performance obligations and recognized revenue when low pressure volumes were delivered to a compressor station, high pressure volumes were delivered to a processing plant or transmission pipeline, and compression volumes were delivered to a high pressure line.
Revenue was recognized based on the per Mcf gathering or compression fee charged by Antero Midstream Partners in accordance with the gathering and compression agreement.
7 unchanged sentences
and (3) our equity method investment in Antero Midstream Corporation.
−Removed: Through March 12, 2019, the results of Antero Midstream Partners were included in the consolidated financial statements of Antero.
+Added: Through March 12, 2019, the results of Antero Midstream Partners were included in the unaudited consolidated financial statements of Antero.
Effective March 13, 2019, the results of Antero Midstream Partners are no longer consolidated in Antero’s results;
however, the Company’s segment disclosures include our equity method investment in Antero Midstream Corporation due to its significance to the Company’s operations.
−Removed: See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions and Note 17 to the unaudited condensed consolidated financial statements for disclosures on the Company’s reportable segments.
+Added: See Note 3—Deconsolidation of Antero Midstream Partners LP to the unaudited condensed consolidated financial statements for further discussion on the Transactions and Note 18—Segment Information to the unaudited condensed consolidated financial statements for disclosures on the Company’s reportable segments.
All of the Company’s assets are located in the United States and substantially all of its 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.
−Removed: (m) Earnings (loss) Per Common Share
+Added: Earnings (loss) Per Common Share
Earnings (loss) per common share—basic for each period is computed by dividing net income (loss) attributable to Antero by the basic weighted average number of shares outstanding during the period.
1 unchanged sentence
The Company includes performance share unit awards in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of the performance period required for the vesting of the awards.
−Removed: During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is anti-dilutive.
+Added: During periods in which the Company incurs a net loss, diluted weighted
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
+Added: average shares outstanding are equal to basic weighted average shares outstanding because the effect of all equity awards is anti-dilutive.
The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands):
−Removed: Three months ended March 31,
+Added: Three months ended June 30,
+Added: Six months ended June 30,
Basic weighted average number of shares outstanding
17 unchanged sentences
The fair value of Antero’s retained equity method investment on March 13, 2019 in Antero Midstream Corporation was $ 2.0 billion based on the market price of the shares received on March 12, 2019.
−Removed: See Note 5 to the unaudited condensed consolidated financial statements for further discussion on equity method investments.
+Added: See Note 6—Equity Method Investments to the unaudited condensed consolidated financial statements for further discussion on equity method investments.
Antero Midstream Partners’ results of operations are no longer consolidated in the Company’s unaudited consolidated statement of operations and comprehensive income (loss) beginning March 13, 2019.
2 unchanged sentences
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
+Added: (4) Conveyance of Overriding Royalty Interest
+Added: On June 15, 2020, the Company announced the consummation of a transaction with an affiliate of Sixth Street Partners, LLC (“Sixth Street”) relating to certain overriding royalty interests across the Company’s existing asset base (the “ORRIs”).
+Added: In connection with the transaction, the Company contributed the ORRIs to Martica and Sixth Street contributed $ 300 million in cash (subject to customary adjustments) and agreed to contribute up to an additional $ 102 million in cash if certain production targets attributable to the ORRIs are achieved.
+Added: All cash contributed by Sixth Street was distributed to the Company.
+Added: The ORRIs include an overriding royalty interest of 1.25 % of the Company’s working interest in all of its proved operated developed properties in West Virginia and Ohio, subject to certain excluded wells (the “Initial PDP Override”), and an overriding royalty interest of 3.75 % of the Company’s working interest in all of its undeveloped properties in West Virginia and Ohio (the “Development Override”).
+Added: Wells turned to sales after April 1, 2020 and prior to the later of (a) the date on which the Company turns to sales 2.2 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override and (b) the earlier of (i) April 1, 2023 and (ii) the date on which the Company turns to sales 3.82 million lateral feet (net to the Company’s interest) of horizontal wells are subject to the Development Override.
+Added: The ORRIs also include an additional overriding royalty interest of 2.00 % of the Company’s working interest in the properties underlying the Initial PDP Override (the “Incremental Override”).
+Added: The Incremental Override (or a portion thereof, as applicable) may be re-conveyed to the Company (at the Company’s election) if certain production targets attributable to the ORRIs are achieved through March 31, 2023.
+Added: Any portion of the Incremental Override that may not be re-conveyed to the Company based on the Company achieving such production volumes through March 31, 2023 will remain with Martica.
+Added: Prior to Sixth Street achieving an internal rate of return of 13 % and 1.5 x cash-on-cash return (the “Hurdle”), Sixth Street will receive all distributions in respect of the Initial PDP Override and the Development Override, and the Company will receive all distributions in respect of the Incremental Override, unless certain production targets are not achieved, in which case Sixth Street will receive some or all of the distributions in respect of the Incremental Override.
+Added: Following Sixth Street achieving the Hurdle, the Company will receive 85 % of the distributions in respect of the ORRIs to which Sixth Street was entitled immediately prior to the Hurdle being achieved.
+Added: The conveyance of the ORRIs from the Company to Martica was accounted for as a transaction between entities under common control.
+Added: As a result, the contributed ORRIs have been recorded by Martica at their historical cost.
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
(a) Disaggregation of Revenue
2 unchanged sentences
For more information on reportable segments, see Note 18—Segment Information.
−Removed: Three months ended March 31,
+Added: Three months ended June 30,
+Added: Six months ended June 30,
Segment to which
14 unchanged sentences
Total revenue from contracts with customers
−Removed: Income (loss) from derivatives and other sources:
+Added: Income from derivatives and other sources
Total revenue and other
(1) Gathering and compression and water handling and treatment revenues were included through March 12, 2019.
−Removed: See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
+Added: See Note 3—Deconsolidation of Antero Midstream Partners to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
(b) Transaction Price Allocated to Remaining Performance Obligations
6 unchanged sentences
Accordingly, our contracts do not give rise to contract assets or liabilities.
−Removed: At December 31, 2019 and March 31, 2020, our receivables from contracts with customers were $ 318 million and $ 201 million, respectively.
+Added: At December 31, 2019 and June 30, 2020, our receivables from contracts with customers were $ 318 million and $ 255 million, respectively.
(6) Equity Method Investments
−Removed: At March 31, 2020, the Company owned approximately 29 % of Antero Midstream Corporation’s common stock, which is reflected in Antero’s consolidated financial statements using the equity method of accounting.
−Removed: See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
+Added: At June 30, 2020, the Company owned approximately 29.2 % of Antero Midstream Corporation’s common stock, which is reflected in Antero’s consolidated financial statements using the equity method of accounting.
+Added: See Note 3—Deconsolidation of Antero Midstream Partners to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: The following table is a reconciliation of investments in unconsolidated affiliates for the three months ended March 31, 2020 (in thousands):
+Added: December 31, 2019 and June 30, 2020
+Added: The following table is a reconciliation of investments in unconsolidated affiliates for the six months ended June 30, 2020 (in thousands):
Antero Midstream
4 unchanged sentences
Elimination of intercompany profit
−Removed: Balance at March 31, 2020
−Removed: (1) Other-than-temporary impairment in Antero Midstream Corporation recorded as of March 31, 2020 to reduce the carrying value to fair value.
+Added: Balance at June 30, 2020
+Added: (1) Other-than-temporary impairment of investment in Antero Midstream Corporation.
Summarized Financial Information of Antero Midstream Corporation
7 unchanged sentences
Stockholders' equity
−Removed: Total liabilities and equity
+Added: Total liabilities and stockholders' equity
Statement of Operations
2 unchanged sentences
(in thousands)
−Removed: March 31, 2019
−Removed: March 31, 2020
+Added: June 30, 2019
+Added: June 30, 2020
Operating expenses
1 unchanged sentence
Net income (loss) attributable to the equity method investment
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
(7) Accrued Liabilities
−Removed: Accrued liabilities as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands):
+Added: Accrued liabilities as of December 31, 2019 and June 30, 2020 consisted of the following items (in thousands):
Capital expenditures
3 unchanged sentences
Total accrued liabilities
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
(8) Long-Term Debt
−Removed: Long-term debt as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands):
+Added: Long-term debt as of December 31, 2019 and June 30, 2020 consisted of the following items (in thousands):
Credit Facility (a)
8 unchanged sentences
Antero Resources has a senior secured revolving credit facility (the “Credit Facility”) with a consortium of bank lenders.
−Removed: On April 29, 2020, Antero Resources entered into a Third Amendment to the Credit Facility, pursuant to which certain terms of the Credit Facility were amended, as further described herein.
Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of Antero Resources’ assets and are subject to regular semi-annual redeterminations.
−Removed: The borrowing base was adjusted to $ 2.85 billion and lender commitments were reaffirmed at $ 2.64 billion in the redetermination in April 2020.
+Added: The borrowing base is $ 2.85 billion and lender commitments are $ 2.64 billion.
The next redetermination of the borrowing base is scheduled to occur in October 2020.
The maturity date of the Credit Facility is the earlier of (i) October 26, 2022 and (ii) the date that is 91 days prior to the earliest stated redemption date of any series of Antero Resources’ senior notes then outstanding.
−Removed: Under the Credit Facility, “Investment Grade Period” is a period that, as long as no event of default has occurred, commences when Antero Resources elects to give notice to the Administrative Agent that Antero Resources has received at least one of (i) a BBB- or better rating from S&P Global Ratings (“S&P”) and (ii) a Baa3 or better rating from Moody’s (an “Investment Grade Rating”).
−Removed: An Investment Grade Period can end at Antero Resources’ election.
−Removed: During any period that is not an Investment Grade Period, the Credit Facility is ratably secured by mortgages on substantially all of Antero Resources’ properties, Antero Resources’ and Antero Subsidiary Holdings LLC’s ownership interests in Antero Midstream Corporation, Antero Resources’ ownership interest in Antero Subsidiary Holdings LLC and Monroe Pipeline LLC, and guarantees from Antero Resources’ restricted subsidiaries, as applicable.
−Removed: During an Investment Grade Period, the liens securing the obligations under the Credit Facility shall be automatically released (subject to the provisions of the Credit Facility).
−Removed: The Credit Facility contains certain covenants, including restrictions on indebtedness and dividends, and requirements with respect to working capital and interest coverage ratios.
−Removed: During any period that is not an Investment Grade Period, interest is payable at a variable rate based on (i) LIBOR or (ii) the Alternate Base Rate, in each case, determined by Antero Resources’ election at the time of borrowing, plus an applicable margin based on Antero Resources’ borrowing base utilization which ranges from 75 basis points to 275 basis points.
−Removed: Alternate Base Rate is defined as the greatest of (a) the prime rate, (b) the NYFRB rate plus ½ of 1% , and (c) LIBOR plus 1 %.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: During an Investment Grade Period, interest is payable at a variable rate based on LIBOR or the Alternate Base Rate determined by Antero Resources’ election at the time of borrowing, plus an applicable margin based on Antero Resources’ credit rating which ranges from 62.5 basis points to 225 basis points.
−Removed: In each case, the credit facility further provides a 1 % floor for LIBOR and a 2 % floor for the Alternate Base Rate.
−Removed: Antero Resources was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2019 and March 31, 2020.
−Removed: As of March 31, 2020, Antero Resources had an outstanding balance under the Credit Facility of $ 882 million, with a weighted average interest rate of 2.57 %, and outstanding letters of credit of $ 730 million.
+Added: As of June 30, 2020, Antero Resources had an outstanding balance under the Credit Facility of $ 926 million, with a weighted average interest rate of 3.32 %, and outstanding letters of credit of $ 730 million.
As of December 31, 2019, Antero Resources had an outstanding balance under the Credit Facility of $ 552 million, with a weighted average interest rate of 3.28 %, and outstanding letters of credit of $ 623 million.
−Removed: Commitment fees on the unused portion of the Credit Facility are due quarterly at rates ranging from (i) 0.300 % to 0.375 % (during any period that is not an Investment Grade Period) of the unused portion based on utilization and (ii) 0.150 % to 0.300 % (during an Investment Grade Period) of the unused portion based on Antero Resources’ credit rating.
+Added: Commitment fees on the unused portion of the Credit Facility are due quarterly at rates ranging from 0.300 % to 0.375 % (subject to certain exceptions) of the unused portion based on utilization.
(b) 5.375 % Senior Notes Due 2021
13 unchanged sentences
Interest on the 2022 notes is payable on June 1 and December 1 of each year.
−Removed: Antero Resources may redeem all or part of the 2022 notes at any time at redemption prices ranging from 101.281 % currently to 100.00 % on or after June 1, 2020.
+Added: Antero Resources may redeem all or part of the 2022 notes at any time at a redemption price of 100.00 %.
If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2022 notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101 % of the principal amount of the 2022 notes, plus accrued and unpaid interest.
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
(d) 5.625 % Senior Notes Due 2023
8 unchanged sentences
On December 21, 2016, Antero Resources issued $ 600 million of 5.00 % senior notes due March 1, 2025 (the “2025 notes”) at par .
−Removed: The 2025 notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: securing the Credit Facility.
+Added: The 2025 notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility.
The 2025 notes rank pari passu to Antero Resources’ other outstanding senior notes.
3 unchanged sentences
If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2025 notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101 % of the principal amount of the 2025 notes, plus accrued and unpaid interest.
−Removed: (f) Treasury Management Facility
−Removed: Antero Resources has a revolving note with a lender that is also part of the Credit Facility lending consortium that provides for up to $ 25 million of cash management obligations in order to facilitate Antero Resources’ daily treasury management.
−Removed: Borrowings under the revolving note are secured by the collateral for the Credit Facility.
−Removed: Borrowings under the revolving note bear interest at the lender’s prime rate plus 1.0 %.
−Removed: The note matures on June 1, 2020.
−Removed: There were no outstanding borrowings under the revolving note at December 31, 2019 and March 31, 2020, respectively.
−Removed: (g) Debt Repurchase Program
−Removed: During the first quarter of 2020, Antero Resources repurchased $ 383 million principal amount of debt at a 21 % weighted average discount, including a portion of the 2021 notes and the 2022 notes.
−Removed: The Company recognized a gain of approximately $ 81 million on the early extinguishment of the debt repurchased.
+Added: (f) Debt Repurchase Program
+Added: During the three and six months ended June 30, 2020, Antero Resources repurchased $ 236 million and $ 619 million, respectively, principal amount of debt at a weighted average discount of 17 % and 19 % , respectively, which purchases included a portion of the 2021 notes, the 2022 notes, the 2023 notes and the 2025 notes.
+Added: The Company recognized a gain of approximately $ 39 million and $ 120 million for the three and six months ended June 30, 2020, respectively, on the early extinguishment of the debt repurchased.
(9) Asset Retirement Obligations
−Removed: The following is a reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2020 (in thousands):
+Added: The following is a reconciliation of the Company’s asset retirement obligations for the six months ended June 30, 2020 (in thousands):
Asset retirement obligations—December 31, 2019
1 unchanged sentence
Accretion expense
−Removed: Asset retirement obligations—March 31, 2020
+Added: Settlement of obligations
+Added: Asset retirement obligations—June 30, 2020
Asset retirement obligations are included in other liabilities on the Company’s unaudited condensed consolidated balance sheets.
(10) Equity-Based Compensation
−Removed: Antero Resources is authorized to grant up to 16,906,500 shares of common stock to employees and directors of the Company under the Antero Resources Corporation Long-Term Incentive Plan (the “Plan”).
−Removed: The Plan allows equity-based compensation awards to be granted in a variety of forms, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, dividend equivalent awards, and other types of awards.
+Added: On June 17, 2020, Antero Resources’ stockholders approved the Antero Resources Corporation 2020 Long-Term Incentive Plan (the “2020 Plan”), which replaced the Antero Resources Corporation Long-Term Incentive Plan (the “2013 Plan”), and the 2020 Plan became effective as of such date.
+Added: The 2020 Plan provides for grants of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, restricted stock unit awards, vested stock awards, dividend equivalent awards, and other stock-based and cash awards.
The terms and conditions of the awards granted are established by the Compensation Committee of Antero Resources’ Board of Directors.
−Removed: A total of 1,742,720 shares were available for future grant under the Plan as of March 31, 2020.
+Added: Employees, officers, non-employee directors and other service providers of the Company and
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: its affiliates are eligible to receive awards under the 2020 Plan.
+Added: No further awards will be granted under the 2013 Plan on or after June 17, 2020.
+Added: The 2020 Plan provides for the reservation of 10,050,000 shares of the Company’s common stock, plus the number of certain shares that become available again for delivery from the 2013 Plan in accordance with the share recycling provisions described below.
+Added: The share recycling provisions allow for all or any portion of an award (including an award granted under the 2013 Plan that was outstanding as of June 17, 2020) that expires or is cancelled, forfeited, exchanged, settled for cash, or otherwise terminated without actual delivery of the shares to be considered not delivered and thus available for new awards under the 2020 Plan.
+Added: Further, any shares withheld or surrendered in payment of any taxes relating to awards that were outstanding under either the 2013 Plan as of June 17, 2020 or are granted under the 2020 Plan (other than stock options and stock appreciation rights) will again be available for new awards under the 2020 Plan.
+Added: A total of 10,050,833 shares were available for future grant under the 2020 Plan as of June 30, 2020.
Antero Midstream Partners’ general partner was authorized to grant up to 10,000,000 common units representing limited partner interests in Antero Midstream Partners under the Antero Midstream Partners LP Long-Term Incentive Plan (the “AMP Plan”) to non-employee directors of its general partner and certain officers, employees, and consultants of Antero Midstream Partners and its affiliates (which includes Antero Resources).
1 unchanged sentence
Each restricted stock unit award under the AMC Plan represents a right to receive one share of Antero Midstream Corporation common stock.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: The Company’s equity-based compensation expense, by type of award, was as follows for the three months ended March 31, 2019 and 2020 (in thousands):
−Removed: Three months ended March 31,
+Added: The Company’s equity-based compensation expense, by type of award, was as follows for the three and six months ended June 30, 2019 and 2020 (in thousands):
+Added: Three months ended June 30,
+Added: Six months ended June 30,
Restricted stock unit awards
8 unchanged sentences
and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Midstream Partners is no longer reflected in Antero Resources consolidated financial statements.
−Removed: See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
+Added: See Note 3—Deconsolidation of Antero Midstream Partners LP to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
Restricted Stock Unit Awards
−Removed: A summary of restricted stock unit award activity for the three months ended March 31, 2020 is as follows:
+Added: A summary of restricted stock unit award activity for the six months ended June 30, 2020 is as follows:
intrinsic value
1 unchanged sentence
Total awarded and unvested—December 31, 2019
−Removed: Total awarded and unvested—March 31, 2020
−Removed: Intrinsic values are based on the closing price of Antero Resources’ common stock on the referenced dates.
−Removed: As of March 31, 2020, there was $ 27 million of unamortized equity-based compensation expense related to unvested restricted stock units.
−Removed: That expense is expected to be recognized over a weighted average period of approximately 2.3 years.
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
+Added: Total awarded and unvested—June 30, 2020
+Added: Intrinsic values are based on the closing price of Antero Resources’ common stock on the referenced dates.
+Added: As of June 30, 2020, there was approximately $ 24 million of unamortized equity-based compensation expense related to unvested restricted stock units.
+Added: That expense is expected to be recognized over a weighted average period of approximately 2.1 years.
Stock Options
−Removed: A summary of stock option activity for the three months ended March 31, 2020 is as follows:
+Added: A summary of stock option activity for the six months ended June 30, 2020 is as follows:
(in thousands)
Outstanding at December 31, 2019
−Removed: Outstanding at March 31, 2020
−Removed: Vested or expected to vest as of March 31, 2020
−Removed: Exercisable at March 31, 2020
+Added: Outstanding at June 30, 2020
+Added: Vested or expected to vest as of June 30, 2020
+Added: Exercisable at June 30, 2020
Intrinsic values are based on the exercise price of the options and the closing price of Antero Resources’ common stock on the referenced dates.
−Removed: As of March 31, 2020, all stock options were fully vested resulting in no unamortized equity-based compensation expense.
+Added: As of June 30, 2020, all stock options were fully vested resulting in no unamortized equity-based compensation expense.
Performance Share Unit Awards
−Removed: The Company did not have any activities with regards to its performance share units (“PSUs”) during the three months ended March 31, 2020, and the number of PSUs outstanding at March 31, 2020 remained 2,537,283 at a weighted average grant date fair value of $ 16.74 .
−Removed: As of March 31, 2020, there was $ 14 million of unamortized equity-based compensation expense related to unvested PSUs.
+Added: The Company had 458,485 performance share units (“PSUs”) forfeited in the six months ended June 30, 2020, and the target number of PSUs outstanding at June 30, 2020 was 2,078,798 at a weighted average grant date fair value of $ 14.85 .
+Added: As of June 30, 2020, there was approximately $ 11 million of unamortized equity-based compensation expense related to unvested PSUs.
That expense is expected to be recognized over a weighted average period of approximately 1.4 years.
−Removed: During the three months ended March 31, 2020, the Company granted cash awards of approximately $ 3.3 million to certain executives under the Plan.
+Added: In January 2020, the Company granted cash awards of approximately $ 3.3 million to certain executives under the 2013 Plan.
Compensation expense for these awards is recognized ratably over the vesting period for each of three tranches through January 20, 2023.
−Removed: As of March 31, 2020, the Company has accrued approximately $ 0.6 million in Other liabilities in the unaudited condensed consolidated balance sheet related to such cash awards.
+Added: As of June 30, 2020, the Company has accrued approximately $ 1.2 million in Other liabilities in the unaudited condensed consolidated balance sheet related to such cash awards.
Antero Midstream Partners Phantom Unit Awards and Antero Midstream Corporation Restricted Stock Unit Awards
−Removed: A summary of Antero Midstream Corporation restricted stock unit awards for the three months ended March 31, 2020 is as follows:
+Added: A summary of Antero Midstream Corporation restricted stock unit awards for the six months ended June 30, 2020 is as follows:
intrinsic value
1 unchanged sentence
Total awarded and unvested—December 31, 2019
−Removed: Total awarded and unvested—March 31, 2020
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
+Added: Total awarded and unvested—June 30, 2020
Intrinsic values are based on the closing price of shares of Antero Midstream Corporation common stock.
−Removed: As of March 31, 2020, there was $ 5 million of unamortized equity-based compensation expense related to unvested phantom unit awards.
+Added: As of June 30, 2020, there was approximately $ 4 million of unamortized equity-based compensation expense related to unvested phantom unit awards.
That expense is expected to be recognized over a weighted average period of approximately 1.3 years.
(11) Financial Instruments
−Removed: The carrying values of accounts receivable and accounts payable at December 31, 2019 and March 31, 2020 approximated market values because of their short-term nature.
−Removed: The carrying values of the amounts outstanding under the Credit Facility at December 31, 2019 and March 31, 2020 approximated fair value because the variable interest rates are reflective of current market conditions.
−Removed: Based on Level 2 market data inputs, the fair value of senior notes was approximately $ 2.8 billion and $ 1.5 billion at December 31, 2019 and March 31, 2020, respectively.
−Removed: See Note 11 to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments.
+Added: The carrying values of accounts receivable and accounts payable at December 31, 2019 and June 30, 2020 approximated market values because of their short-term nature.
+Added: The carrying values of the amounts outstanding under the Credit Facility at December 31, 2019 and June 30, 2020 approximated fair value because the variable interest rates are reflective of current market conditions.
+Added: Based on Level 2 market data inputs, the fair value of senior notes was approximately $ 2.8 billion and $ 1.8 billion at December 31, 2019 and June 30, 2020, respectively.
+Added: See Note 12—Derivative Instruments to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments.
(12) Derivative Instruments
4 unchanged sentences
This market risk exposure is generally offset by the change in market prices of natural gas, NGLs, and oil recognized upon the ultimate sale of the Company’s production.
−Removed: The Company was party to various fixed price commodity swap contracts that settled during the three months ended March 31, 2019 and 2020.
+Added: The Company was party to various fixed price commodity swap contracts that settled during the six months ended June 30, 2019 and 2020.
The Company enters into these swap contracts when management believes that favorable future sales prices for the Company’s production can be secured.
10 unchanged sentences
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: As of March 31, 2020, the Company’s fixed price natural gas, oil and NGL swap positions from April 1, 2020 through December 31, 2023 were as follows (abbreviations in the table refer to the index to which the swap position is tied, as follows:
+Added: December 31, 2019 and June 30, 2020
+Added: As of June 30, 2020, the Company’s fixed price natural gas, oil and NGL swap positions from July 1, 2020 through December 31, 2023 were as follows (abbreviations in the table refer to the index to which the swap position is tied, as follows:
NYMEX=Henry Hub;
1 unchanged sentence
ARA Propane =European Propane CIF ARA;
+Added: OPIS Ethane Mt Belv=Mont Belvieu Purity Ethane-OPIS):
average index
−Removed: Nine months ending December 31, 2020:
+Added: Six months ending December 31, 2020:
NYMEX ($/MMBtu)
ARA Propane ($/Gal)
+Added: OPIS Ethane Mt Belv ($/Gal)
NYMEX-WTI ($/Bbl)
+Added: Three months ending March 31, 2021
+Added: OPIS Ethane Mt Belv ($/Gal)
Year ending December 31, 2021:
7 unchanged sentences
In addition, we have a call option agreement, which entitles the holder the right, but not the obligation, to enter into a fixed price swap agreement on December 21, 2023 to purchase 427,500 MMBtu per day at a price of $ 2.77 per MMBtu for the year ending December 31, 2024.
−Removed: As of March 31, 2020, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price, and NGL basis swap positions, which settle on the pricing index to basis differential of Mont Belvieu Butane to the European Butane CIF ARA natural gas liquids price, were as follows:
+Added: As of June 30, 2020, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price were as follows:
average hedged
−Removed: Three months ending June 30, 2020:
−Removed: ARA to Mont Belvieu Non-TET ($/Gal)
−Removed: Nine months ending December 31, 2020:
+Added: Six months ending December 31, 2020:
NYMEX to TCO ($/MMBtu)
9 unchanged sentences
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: As of March 31, 2020, the Company had NGL contracts for April 1, 2020 through December 31, 2021 that fix the Mont Belvieu index price for natural gasoline to percentages of WTI as follows:
−Removed: Nine months ending December 31, 2020:
+Added: December 31, 2019 and June 30, 2020
+Added: As of June 30, 2020, the Company had NGL contracts for July 1, 2020 through December 31, 2021 that fix the Mont Belvieu index price for natural gasoline to percentages of WTI as follows:
+Added: Six months ending December 31, 2020:
Mont Belvieu Natural Gasoline to NYMEX-WTI
2 unchanged sentences
A portion of the Mont Belvieu Natural Gasoline to NYMEX-WTI combined with the NYMEX-WTI ($/Bbl) in 2020 are intended to fix the price of Natural Gasoline.
−Removed: The following table presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the consolidated balance sheets as of December 31, 2019 and March 31, 2020.
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: As of June 30, 2020, the Company’s consolidated subsidiary Martica’s fixed price natural gas, oil and NGL swap positions from July 1, 2020 through March 31, 2025 were as follows (abbreviations in the table refer to the index to which the swap position is tied, as follows:
+Added: NYMEX=Henry Hub;
+Added: NYMEX-WTI=West Texas Intermediate;
+Added: OPIS Propane Mt Belv Non-TET = Mont Belvieu Propane-OPIS;
+Added: OPIS Ethane Mt Belv=Mont Belvieu Purity Ethane-OPIS;
+Added: OPIS Natural Gasoline Mt Belv Non-TET = Mont Belvieu Natural Gasoline-OPIS):
+Added: average index
+Added: Six months ending December 31, 2020:
+Added: NYMEX ($/MMBtu)
+Added: OPIS Propane Mt Belv Non-TET
+Added: OPIS Natural Gasoline Mt Belv Non-TET
+Added: OPIS Ethane Mt Belv ($/Gal)
+Added: NYMEX-WTI ($/Bbl)
+Added: Year ending December 31, 2021:
+Added: NYMEX ($/MMBtu)
+Added: OPIS Propane Mt Belv Non-TET
+Added: OPIS Natural Gasoline Mt Belv Non-TET
+Added: OPIS Ethane Mt Belv ($/Gal)
+Added: NYMEX-WTI ($/Bbl)
+Added: Three months ending March 31, 2022
+Added: OPIS Propane Mt Belv Non-TET
+Added: OPIS Natural Gasoline Mt Belv Non-TET
+Added: OPIS Ethane Mt Belv ($/Gal)
+Added: Year ending December 31, 2022:
+Added: NYMEX ($/MMBtu)
+Added: NYMEX-WTI ($/Bbl)
+Added: Year ending December 31, 2023:
+Added: NYMEX ($/MMBtu)
+Added: NYMEX-WTI ($/Bbl)
+Added: Year ending December 31, 2024:
+Added: NYMEX ($/MMBtu)
+Added: NYMEX-WTI ($/Bbl)
+Added: Three months ending March 31, 2025:
+Added: NYMEX ($/MMBtu)
+Added: NYMEX-WTI ($/Bbl)
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: The following table presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the consolidated balance sheets as of December 31, 2019 and June 30, 2020.
None of the Company’s derivative instruments are designated as hedges for accounting purposes and the fair value of derivative instruments was determined using Level 2 inputs.
December 31, 2019
−Removed: March 31, 2020
+Added: June 30, 2020
Balance sheet
19 unchanged sentences
Net derivatives
+Added: (1) Approximately $ 2 million of commodity derivative liabilities are attributable to our consolidated VIE, Martica.
The following table presents the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands):
December 31, 2019
−Removed: March 31, 2020
+Added: June 30, 2020
Gross amounts
12 unchanged sentences
Commodity derivative liabilities
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: The following is a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations for the three months ended March 31, 2019 and 2020 (in thousands):
−Removed: Three months ended March 31,
+Added: The following is a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2020 (in thousands):
+Added: Three months ended June 30,
+Added: Six months ended June 30,
Commodity derivative fair value gains (losses)
+Added: In July 2020, the Company monetized certain natural gas derivatives, prior to their contractual settlement dates, for proceeds of approximately $ 29 million.
+Added: The monetization reduced the fixed volumes hedged on certain natural gas swap contracts maturing in 2021.
The Company leases certain office space, processing plants, drilling rigs and completion services, gas gathering lines, compressor stations, and other office and field equipment.
−Removed: Leases with an initial term of 12 months or less are considered short-term and are not recorded on the balance sheet.
+Added: Leases with an initial term of 12 months or less are considered short-term
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: and are not recorded on the balance sheet.
Instead, the short-term leases are recognized in expense on a straight-line basis over the lease term.
12 unchanged sentences
Currently, the Company is only applying this expedient to certain office space agreements.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
Supplemental Balance Sheet Information Related to Leases
−Removed: The Company’s lease assets as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands):
+Added: The Company’s lease assets as of December 31, 2019 and June 30, 2020 consisted of the following items (in thousands):
December 31, 2019
−Removed: March 31, 2020
+Added: June 30, 2020
Operating Leases
8 unchanged sentences
Total right-of-use assets
−Removed: (1) Gas gathering lines and compressor stations leases includes $ 1.1 billion related to Antero Midstream Corporation as of December 31, 2019 and March 31, 2020.
+Added: (1) Gas gathering lines and compressor stations leases includes $ 0.9 billion related to Antero Midstream Corporation as of December 31, 2019 and June 30, 2020.
See “—Related party lease disclosure” for additional discussion.
−Removed: (2) Financing lease assets are recorded net of accumulated amortization of $ 9 million and $ 3 million as of December 31, 2019 and March 31, 2020, respectively.
−Removed: The Company’s lease liabilities as of December 31, 2019 and March 31, 2020 consisted of the following items (in thousands):
+Added: (2) Financing lease assets are recorded net of accumulated amortization of $ 9 million and $ 3 million as of December 31, 2019 and June 30, 2020, respectively.
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: The Company’s lease liabilities as of December 31, 2019 and June 30, 2020 consisted of the following items (in thousands):
December 31, 2019
−Removed: March 31, 2020
+Added: June 30, 2020
Operating Leases
8 unchanged sentences
Supplemental Information Related to Leases
−Removed: Costs associated with operating leases were included in the statement of operations and comprehensive income (loss) for the three months ended March 31, 2019 and 2020 (in thousands):
−Removed: Three months ended
+Added: Costs associated with operating leases were included in the statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2019 and 2020 (in thousands):
+Added: Three months ended June 30,
+Added: Six months ended June 30,
Statement of Operations Location
−Removed: March 31, 2019
−Removed: March 31, 2020
Gathering, compression, processing, and transportation
2 unchanged sentences
Total lease expense
−Removed: Costs associated with finance leases of less than $ 1 million for each of the three months ended March 31, 2019 and 2020 were included in interest expense.
−Removed: We capitalized $ 55 million and $ 33 million, respectively, of costs related to operating leases and less than $ 1 million of costs related to finance leases during each of the three months ended March 31, 2019 and 2020.
+Added: Costs associated with finance leases of less than $ 1 million for each of the three months and six months ended June 30, 2019 and 2020 were included in interest expense.
+Added: For the three months ended June 30, 2019 and 2020, we capitalized $ 53 million and $ 26 million, respectively, of costs related to operating leases and less than $ 1 million of costs related to finance leases.
+Added: For the six months ended June 30, 2019, and 2020, we capitalized $ 108 million and $ 59 million, respectively, of costs related to operating leases and less than $ 1 million of costs related to finance leases.
+Added: Short-term lease costs that are more than one month but less than 12 months are excluded from the above amounts and total $ 39 million and $ 29 million, respectively, for the three months ended June 30, 2019 and 2020 and $ 74 million and $ 92 million, respectively, for the six months ended June 30, 2019 and 2020.
+Added: Supplemental Cash Flow Information Related to Leases
+Added: The following is the Company’s supplemental cash flow information related to leases for the three and six months ended June 30, 2019 (in thousands):
+Added: Three months ended June 30, 2019
+Added: Six months ended June 30, 2019
+Added: Operating Leases
+Added: Finance Leases
+Added: Operating Leases
+Added: Finance Leases
+Added: Cash paid for amounts included in the measurement of lease liabilities:
+Added: Operating cash out flows related to operating leases
+Added: Investing cash out flows related to operating leases
+Added: Financing cash out flows related to financing leases
+Added: Noncash activities:
+Added: Right of use assets obtained in exchange for operating lease liabilities
+Added: Right of use assets obtained in exchange for financing lease liabilities
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: Short-term lease costs that are more than one month but less than 12 months are excluded from the above amounts and total $ 35 million and $ 63 million, respectively, for the three months ended March 31, 2019 and 2020.
−Removed: Supplemental Cash Flow Information Related to Leases
−Removed: The following is the Company’s supplemental cash flow information related to leases for the three months ended March 31, 2019 and March 31, 2020 (in thousands):
−Removed: Three months ended March 31, 2019
−Removed: Three months ended March 31, 2020
+Added: December 31, 2019 and June 30, 2020
+Added: The following is the Company’s supplemental cash flow information related to leases for the three and six months ended June 30, 2020 (in thousands):
+Added: Three months ended June 30, 2020
+Added: Six months ended June 30, 2020
Operating Leases
10 unchanged sentences
Maturities of Lease Liabilities
−Removed: The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2020 (in thousands):
+Added: The table below is a schedule of future minimum payments for operating and financing lease liabilities as of June 30, 2020 (in thousands):
(in thousands)
7 unchanged sentences
Lease Term and Discount Rate
−Removed: The table below is the Company’s weighted-average remaining lease term and discount rate as of March 31, 2020:
+Added: The table below is the Company’s weighted-average remaining lease term and discount rate as of June 30, 2020:
+Added: June 30, 2020
Operating Leases
2 unchanged sentences
Weighted-average discount rate:
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
Related party lease disclosure
2 unchanged sentences
In December 2019, the Company and Antero Midstream Corporation agreed to extend the initial term of the gathering and compression agreement to 2038 and established a growth incentive fee program whereby low pressure gathering fees will be reduced from 2020 through 2023 to the extent the Company achieves certain volumetric targets at certain points during such time.
−Removed: Upon completion of the initial contract term, the gathering and compression agreement will continue in effect from year to year until such time as the agreement is terminated, effective upon an anniversary of the effective date of the agreement, by either the Company or Antero Midstream Corporation on or before the 180 th day prior to the anniversary of such effective date.
−Removed: The Company achieved the volumetric targets for the three months ended March 31, 2020, and Antero Midstream Corporation provided a rebate of $ 12 million.
−Removed: For the three months ended March 31, 2019 and 2020, gathering and compression fees paid by Antero related to this agreement were $ 152 million and $ 156 million, respectively.
−Removed: As of March 31, 2020, $ 60 million was included within Accounts payable, related parties on the Condensed Consolidated Balance Sheet as due to Antero Midstream Corporation related to this agreement.
+Added: Upon completion of the initial contract term, the gathering and compression agreement will continue in effect from year to
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: year until such time as the agreement is terminated, effective upon an anniversary of the effective date of the agreement, by either the Company or Antero Midstream Corporation on or before the 180 th day prior to the anniversary of such effective date.
+Added: The Company achieved the volumetric targets for the three months ended March 31, 2020 and June 30, 2020, and Antero Midstream Corporation provided a rebate of $ 12 million in each period.
+Added: For the three and six months ended June 30, 2019, gathering and compression fees paid by Antero related to this agreement were $ 163 million and $ 315 million, respectively.
+Added: For the three and six months ended June 30, 2020, gathering and compression fees paid by Antero related to this agreement were $ 166 million and $ 321 million, respectively.
+Added: As of December 31, 2019 and June 30, 2020, $ 57 million and $ 53 million was included within Accounts payable, related parties, respectively, on the Condensed Consolidated Balance Sheet as due to Antero Midstream Corporation related to this agreement.
(14) Commitments
−Removed: The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have remaining lease terms in excess of one year as of March 31, 2020 (in thousands).
+Added: The table below is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have remaining lease terms in excess of one year as of June 30, 2020 (in thousands).
gathering and
10 unchanged sentences
however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
Processing, Gathering, and Compression Service Commitments
9 unchanged sentences
None of these agreements were determined to be leases.
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
(d) Leases, including imputed interest
2 unchanged sentences
however, we will record in our financial statements our proportionate share of costs based on our working interests.
−Removed: Refer to Note 12 to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases.
+Added: Refer to Note 13—Leases to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases.
(15) Contingencies
17 unchanged sentences
The arbitration panel’s award was confirmed by the Colorado district court on April 14, 2017.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
In March of 2017, WGL filed a second legal proceeding against the Company in Colorado district court alleging breach of contract and seeking damages of more than $ 30 million.
7 unchanged sentences
The Company is also actively engaged in pursuing cover damages against WGL based on WGL’s failure to take receipt of all of the agreed quantities of gas required under the Contracts.
−Removed: WGL’s failure to take the gas volumes specified in the Contracts is directly related to WGL’s lack of primary firm transportation rights at the Delivery Point.
+Added: WGL’s failure to take the gas volumes specified in the Contracts is
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: directly related to WGL’s lack of primary firm transportation rights at the Delivery Point.
The failures by WGL to take the full contracted volumes of gas began in April 2017 and continued each month through December 2017 in varying quantities.
17 unchanged sentences
(16) Contract Termination and Rig Stacking
−Removed: The Company incurred costs associated with the delay or cancellation of drilling and completion contracts with third-party contractors of approximately $ 8 million for the three months ended March 31, 2019.
−Removed: No such costs were incurred during the three months ended March 31, 2020.
−Removed: ANTERO RESOURCES CORPORATION
−Removed: Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: The Company incurs costs associated with the delay or cancellation of drilling and completion contracts with third-party contractors.
+Added: These costs are recorded in Contract termination and rig stacking and included in the statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2019 and 2020 (in thousands):
+Added: Three months ended June 30,
+Added: Six months ended June 30,
+Added: Contract termination and rig stacking
(17) Related Parties
1 unchanged sentence
Effective March 13, 2019, Antero Resources accounts for Antero Midstream Corporation as an equity method investment.
−Removed: See Note 3 to the unaudited condensed consolidated financial statements for more discussion on the Transactions.
+Added: See Note 3—Deconsolidation of Antero Midstream Partners LP to the unaudited condensed consolidated financial statements for more discussion on the Transactions.
Substantially all of the revenues for gathering and processing and water handling and treatment were derived from transactions with Antero Resources.
−Removed: See Note 17 to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments.
+Added: See Note 18—Segment Information to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments.
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
(18) Segment Information
−Removed: See Note 2(l) to the unaudited condensed consolidated financial statements for a description of the Company’s determination of its reportable segments.
+Added: See Note 2(l)—Summary of Significant Accounting Policies, Industry Segments and Geographic Information, to the unaudited condensed consolidated financial statements for a description of the Company’s determination of its reportable segments.
Revenues from gathering and processing and water handling and treatment operations were primarily derived from intersegment transactions for services provided to the Company’s exploration and production operations prior to the closing of the Transactions.
2 unchanged sentences
however, the Company’s segment disclosures include the results of our unconsolidated affiliates due to their significance to the Company’s operations.
−Removed: See Note 3 to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
+Added: See Note 3—Deconsolidation of Antero Midstream Partners LP to the unaudited condensed consolidated financial statements for further discussion on the Transactions.
Marketing revenues are primarily derived from activities to purchase and sell third-party natural gas and NGLs and to market excess firm transportation capacity to third parties.
4 unchanged sentences
Intersegment sales were transacted at prices which approximate market.
−Removed: Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2 to the unaudited condensed consolidated financial statements.
+Added: 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 unaudited condensed consolidated financial statements.
+Added: The operating results and assets of the Company’s reportable segments were as follows for the three months ended June 30, 2019 and 2020 (in thousands):
+Added: Equity Method
+Added: Elimination of
+Added: Investment in
+Added: transactions and
+Added: unconsolidated
+Added: Three months ended June 30, 2019:
+Added: Sales and revenues:
+Added: Operating expenses:
+Added: Lease operating
+Added: Gathering, compression, processing, and transportation
+Added: Impairment of oil and gas properties
+Added: Impairment of midstream assets
+Added: Depletion, depreciation, and amortization
+Added: General and administrative
+Added: Operating income (loss)
+Added: Equity in earnings of unconsolidated affiliates
+Added: Investments in unconsolidated affiliates
+Added: ( 1,186,161 )
+Added: Segment assets
+Added: ( 6,769,009 )
+Added: Capital expenditures for segment assets
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
−Removed: The operating results and assets of the Company’s reportable segments were as follows for the three months ended March 31, 2019 and 2020 (in thousands):
+Added: December 31, 2019 and June 30, 2020
Equity Method
3 unchanged sentences
unconsolidated
−Removed: Three months ended March 31, 2019:
+Added: Three months ended June 30, 2020:
Sales and revenues:
3 unchanged sentences
Impairment of oil and gas properties
+Added: Depletion, depreciation, and amortization
+Added: General and administrative
+Added: Operating income (loss)
+Added: Equity in earnings of unconsolidated affiliates
+Added: Investments in unconsolidated affiliates
+Added: Segment assets
+Added: ( 5,715,055 )
+Added: Capital expenditures for segment assets
+Added: The operating results and assets of the Company’s reportable segments were as follows for the six months ended June 30, 2019 and 2020 (in thousands):
+Added: Equity Method
+Added: Elimination of
+Added: Investment in
+Added: transactions and
+Added: unconsolidated
+Added: Six months ended June 30, 2019:
+Added: Sales and revenues:
+Added: Operating expenses:
+Added: Lease operating
+Added: Gathering, compression, processing, and transportation
+Added: Impairment of oil and gas properties
Impairment of midstream assets
10 unchanged sentences
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
Equity Method
3 unchanged sentences
unconsolidated
−Removed: Three months ended March 31, 2020:
+Added: Six months ended June 30, 2020:
Sales and revenues:
6 unchanged sentences
General and administrative
−Removed: Operating income (loss)
+Added: Operating loss
Equity in earnings (loss) of unconsolidated affiliates
8 unchanged sentences
if Antero designates such subsidiary as an unrestricted subsidiary and such designation complies with the other applicable provisions of the indentures governing the notes or in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the notes.
−Removed: The following Condensed Consolidating Balance Sheets at December 31, 2019 and March 31, 2020, and the related Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2019 and 2020, and Condensed Consolidating Statements of Cash Flows for the three months ended March 31, 2019 and 2020 present financial information for Antero Resources on a stand-alone basis (carrying its investment in subsidiaries using the equity method), financial information for the subsidiary guarantors, financial information for the non-guarantor subsidiaries, and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis.
+Added: The following Condensed Consolidating Balance Sheets at December 31, 2019 and June 30, 2020, and the related Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2019 and 2020, and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2019 and 2020 present financial information for Antero Resources on a stand-alone basis (carrying its investment in subsidiaries using the equity method), financial information for the subsidiary guarantors, financial information for the non-guarantor subsidiaries, and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis.
+Added: The non-guarantor subsidiaries as of and for the three months ended June 30, 2020 represent Martica.
The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company.
1 unchanged sentence
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
Condensed Consolidating Balance Sheet
21 unchanged sentences
Derivative instruments
−Removed: Investments in unconsolidated affiliates
−Removed: Investments in consolidated affiliates
+Added: Investments in unconsolidated affiliate
+Added: Investments in consolidated affiliate
( 1,111,579 )
18 unchanged sentences
Additional paid-in capital
−Removed: Accumulated earnings
+Added: Accumulated earnings (loss)
Total stockholders' equity
3 unchanged sentences
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
Condensed Consolidating Balance Sheet
−Removed: March 31, 2020
+Added: June 30, 2020
(In thousands)
19 unchanged sentences
Derivative instruments
−Removed: Investments in unconsolidated affiliates
+Added: Investment in unconsolidated affiliate
Investments in consolidated affiliates
+Added: ( 1,173,743 )
Liabilities and Equity
4 unchanged sentences
Revenue distributions payable
+Added: Derivative instruments
Short-term lease liabilities
10 unchanged sentences
Additional paid-in capital
−Removed: Accumulated earnings
+Added: Accumulated earnings (loss)
Total stockholders' equity
+Added: ( 1,092,788 )
+Added: Noncontrolling interest
Total liabilities and equity
+Added: ( 1,173,743 )
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
Condensed Consolidating Statement of Operations and Comprehensive Income
−Removed: Three Months Ended March 31, 2019
+Added: Three Months Ended June 30, 2019
(In thousands)
3 unchanged sentences
Natural gas liquids sales
+Added: Commodity derivative fair value gains
+Added: Total revenue and other
+Added: Operating expenses:
+Added: Lease operating
+Added: Gathering, compression, processing, and transportation
+Added: Production and ad valorem taxes
+Added: Impairment of oil and gas properties
+Added: Depletion, depreciation, and amortization
+Added: Loss on sale of assets
+Added: Accretion of asset retirement obligations
+Added: General and administrative
+Added: Contract termination and rig stacking
+Added: Total operating expenses
+Added: Operating income (loss)
+Added: Other income (expenses):
+Added: Equity in earnings of unconsolidated affiliates
+Added: Interest expense, net
+Added: Total other income (expenses)
+Added: Income before income taxes
+Added: Provision for income tax expense
+Added: Net income and comprehensive income attributable to Antero Resources Corporation
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
+Added: Three Months Ended June 30, 2020
+Added: (In thousands)
+Added: Non-Guarantor
+Added: Revenue and other:
+Added: Natural gas sales
+Added: Natural gas liquids sales
Commodity derivative fair value losses
+Added: Total revenue and other
+Added: Operating expenses:
+Added: Lease operating
+Added: Gathering, compression, processing, and transportation
+Added: Production and ad valorem taxes
+Added: Impairment of oil and gas properties
+Added: Depletion, depreciation, and amortization
+Added: Accretion of asset retirement obligations
+Added: General and administrative
+Added: Contract termination and rig stacking
+Added: Total operating expenses
+Added: Operating income (loss)
+Added: Other income (expenses):
+Added: Equity in earnings of unconsolidated affiliates
+Added: Transaction expense
+Added: Interest expense, net
+Added: Gain on early extinguishment of debt
+Added: Total other income (expenses)
+Added: Income (loss) before income taxes
+Added: Provision for income tax benefit
+Added: Net income (loss) and comprehensive income (loss) including noncontrolling interests
+Added: Net income and comprehensive income attributable to noncontrolling interests
+Added: Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation
+Added: ANTERO RESOURCES CORPORATION
+Added: Notes to Unaudited Condensed Consolidated Financial Statements
+Added: December 31, 2019 and June 30, 2020
+Added: Condensed Consolidating Statement of Operations and Comprehensive Income
+Added: Six Months Ended June 30, 2019
+Added: (In thousands)
+Added: Non-Guarantor
+Added: Revenue and other:
+Added: Natural gas sales
+Added: Natural gas liquids sales
+Added: Commodity derivative fair value gains
Gathering, compression, water handling and treatment
7 unchanged sentences
Depletion, depreciation, and amortization
+Added: Loss on sale of asset
Accretion of asset retirement obligations
6 unchanged sentences
Equity in earnings of unconsolidated affiliates
−Removed: Equity in earnings of affiliates
Interest expense, net
+Added: Equity in earnings of affiliates
Gain on deconsolidation of Antero Midstream Partners LP
7 unchanged sentences
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
−Removed: Three Months Ended March 31, 2020
+Added: Six Months Ended June 30, 2020
(In thousands)
3 unchanged sentences
Natural gas liquids sales
−Removed: Commodity derivative fair value gains
+Added: Commodity derivative fair value gains (losses)
Total revenue and other
7 unchanged sentences
General and administrative
+Added: Contract termination and rig stacking
Total operating expenses
−Removed: Operating income
+Added: Operating income (loss)
Other income (expenses):
−Removed: Equity in earnings of unconsolidated affiliate
+Added: Equity in loss of unconsolidated affiliates
Impairment of equity investment
+Added: Transaction expense
Interest expense, net
2 unchanged sentences
Income (loss) before income taxes
+Added: ( 1,054,267 )
Provision for income tax benefit
−Removed: Net income (loss) and comprehensive income (loss)
+Added: Net income (loss) and comprehensive income (loss) including noncontrolling interests
+Added: Net income and comprehensive income attributable to noncontrolling interests
+Added: Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation
ANTERO RESOURCES CORPORATION
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
Condensed Consolidating Statement of Cash Flows
−Removed: Three Months Ended March 31, 2019
+Added: Six Months Ended June 30, 2019
(In thousands)
4 unchanged sentences
Depletion, depreciation, amortization, and accretion
−Removed: Commodity derivative fair value losses
+Added: Commodity derivative fair value gains
Gains on settled commodity derivatives
Deferred income tax expense
+Added: Loss on sale of assets
Equity-based compensation expense
−Removed: Equity in earnings of consolidated subsidiaries
+Added: Equity in earnings of affiliates
Equity in earnings of unconsolidated affiliates
−Removed: Distributions of earnings from unconsolidated affiliates
+Added: Distributions/dividends of earnings from unconsolidated affiliates
Gain on deconsolidation of Antero Midstream Partners LP
13 unchanged sentences
Change in other assets
+Added: Proceeds from sale of assets
Net cash used in investing activities
12 unchanged sentences
Notes to Unaudited Condensed Consolidated Financial Statements
−Removed: December 31, 2019 and March 31, 2020
+Added: December 31, 2019 and June 30, 2020
Condensed Consolidating Statement of Cash Flows
−Removed: Three Months Ended March 31, 2020
+Added: Six Months Ended June 30, 2020
(In thousands)
5 unchanged sentences
Impairment of oil and gas properties
−Removed: Commodity derivative fair value gains
+Added: Commodity derivative fair value (gains) losses
Gains on settled commodity derivatives
18 unchanged sentences
Borrowings on bank credit facility, net
+Added: Sale (purchase) noncontrolling interests
+Added: (Distributions) proceeds to interest holders
Employee tax withholding for settlement of equity compensation awards
−Removed: Net cash used in financing activities
+Added: Net cash provided by financing activities
Net increase in cash and cash equivalents
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.