14 unchanged sentences
Our drilling opportunities are focused in the Marcellus Shale and Utica Shale of the Appalachian Basin.
−Removed: As of June 30, 2021, we held approximately 513,000 net acres of rich gas and dry gas properties located in the Appalachian Basin in West Virginia and Ohio.
+Added: As of September 30, 2021, we held approximately 508,000 net acres of rich gas and dry gas properties located in the Appalachian Basin in West Virginia and Ohio.
Our corporate headquarters are in Denver, Colorado.
4 unchanged sentences
The imbalance between the supply of and demand for oil, as well as the uncertainty around the extent and timing of an economic recovery, caused extreme market volatility and a substantial adverse effect on commodity prices in 2020.
−Removed: As vaccines have become widely available, social distancing guidelines, travel restrictions and stay-at-home orders have eased, activity in the global economy has increased and commodity prices have improved.
−Removed: However, new variants of the virus could cause further commodity market volatility and resulting financial market instability, and these are variables beyond our control that may adversely impact our generation of funds from operating cash flows, distributions from unconsolidated affiliate, available borrowings under our senior secured revolving credit facility (the “Credit Facility”) and our ability to access the capital markets.
+Added: As vaccines have become widely available, social distancing guidelines, travel restrictions and stay-at-home orders have eased, activity in the global economy has increased and demand for oil, natural gas and NGLs, and related commodity pricing, has improved .
+Added: However, new variants of the virus could cause further commodity market volatility and resulting financial market instability, and these are variables beyond our control that may adversely impact our generation of funds from operating cash flows, distributions from unconsolidated affiliate, available borrowings under our Credit Facility (defined below in “—Capital Resources and Liquidity—Debt Agreements—Senior Secured Revolving Credit Facility”) and our ability to access the capital markets.
As a producer of natural gas, NGLs and oil, we are recognized as an essential business under various federal, state and local regulations related to the COVID-19 pandemic.
1 unchanged sentence
We have implemented protocols to reduce the risk of an outbreak within our field operations, and these protocols have not reduced production or efficiency in a significant manner.
−Removed: While a substantial portion of our non-field level employees operated in remote work from home arrangements through June 30, 2021, we expect to be transitioning to full-time in-office arrangements during the third quarter of 2021.
+Added: A substantial portion of our non-field level employees operated in remote work from home arrangements through September 30, 2021, and due to the rise of COVID-19 cases as a result of new variants of the virus, our plans to return to in-
+Added: office arrangements during the third quarter of 2021 have been deferred in order to protect the health and safety of our employees and contract workers.
We have been able to maintain a consistent level of effectiveness through these arrangements, including maintaining our day-to-day operations, our financial reporting systems and our internal control over financial reporting.
2 unchanged sentences
Our hedges cover a substantial majority of our expected natural gas production for the remainder of 2021.
−Removed: We also have fixed priced contracts for the sale of 45,650 barrels per day of propane at a weighted average price of $31.30 per barrel and 3,000 barrels per day of oil at a weighted average price of $55.16 per barrel for the remainder of 2021.
+Added: We also have fixed priced contracts for the sale of 3,000 barrels per day of oil at a weighted average price of $55.16 per barrel for the remainder of 2021.
All of our hedges are financial hedges and do not have physical delivery requirements.
6 unchanged sentences
Prior to the COVID-19 pandemic, we had developed a diverse set of buyers and destinations, as well as in-field and off-site storage capacity for our condensate volumes.
−Removed: As a result of the pandemic, we have expanded our customer base and its condensate storage capacity within the Appalachian Basin.
−Removed: In April 2021, the borrowing base supporting our Credit Facility was subject to its semi-annual redetermination and was re-affirmed at $2.85 billion.
−Removed: Lender commitments remained unchanged at $2.64 billion, providing us with a consistent amount of available borrowings.
−Removed: Our next semi-annual borrowing base redetermination is in October 2021, which could impact our available borrowings and liquidity.
−Removed: As of June 30, 2021, we had no borrowings under our Credit Facility and had outstanding letters of credit of $742 million.
+Added: As a result of the pandemic, we have expanded our customer base and our condensate storage capacity within the Appalachian Basin.
+Added: As of September 30, 2021, we had $98 million of borrowings under our Prior Credit Facility (defined below in “—Capital Resources and Liquidity—Debt Agreements—Senior Secured Revolving Credit Facility”) and had outstanding letters of credit of $742 million .
+Added: On October 26, 2021, we amended our Prior Credit Facility with a borrowing base of $3.5 billion and lender commitments of $1.5 billion.
+Added: See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements and “—Capital Resources and Liquidity—Debt Agreements—Senior Secured Revolving Credit Facility.”
In addition, our borrowing capacity is directly impacted by the amount of financial assurance we are required to provide in the form of letters of credit to third parties, primarily pipeline capacity providers.
3 unchanged sentences
Financing and Asset Sales Program Highlights
−Removed: Redemption of Senior Notes
−Removed: We fully redeemed all of our outstanding 5.125% senior notes due December 1, 2022 (the “2022 Notes”) at par, plus accrued and unpaid interest in the first quarter of 2021.
−Removed: During the second quarter of 2021, we fully redeemed all of our outstanding 5.625% senior notes due June 1, 2023 (the “2023 Notes”) at par, plus accrued and unpaid interest.
−Removed: On July 1, 2021, we redeemed $175 million of the principal amount of our 8.375% senior notes due July 15, 2026 (the “2026 Notes”) at a redemption price of 108.375% of the principal amount thereof, plus accrued and unpaid interest, which was funded with borrowings on our Credit Facility.
−Removed: Immediately following the redemption, there were $325 million aggregate principal amount of 2026 Notes outstanding.
−Removed: The $15 million premium to the principal amount redeemed along with the write-off of a proportional amount of unamortized debt issuance costs will be included in our loss on early debt extinguishment during the third quarter of 2021.
−Removed: See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
+Added: Credit Facility
+Added: On October 26, 2021, we entered into an amended and restated senior secured revolving credit facility with a borrowing base of $3.5 billion and lender commitments of $1.5 billion.
+Added: and matures on the earlier of (i) October 26, 2026 and (ii) the day that is 180 days prior to the earliest stated redemption date of any series of our senior notes.
+Added: Lender commitments were reduced by $1.1 billion from the previous commitments of $2.64 billion to better align with our expected future liquidity needs.
+Added: See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements and “—Capital Resources and Liquidity—Debt Agreements—Senior Secured Revolving Credit Facility” for more information.
Issuance of Senior Notes
−Removed: On January 4, 2021, we issued $500 million of our 2026 Notes at par.
+Added: On January 4, 2021, we issued $500 million of our 8.375% senior notes due July 15, 2026 (the “2026 Notes”) at par.
On January 26, 2021, we issued $700 million of 7.625% senior notes due February 1, 2029 (the “2029 Notes”) at par.
2 unchanged sentences
The 2026 Notes, 2029 Notes and 2030 Notes rank pari passu to our other outstanding senior notes.
−Removed: The 2026 Notes, 2029 Notes and 2030 Notes are guaranteed on a full and
−Removed: unconditional and joint and several senior unsecured basis by our existing subsidiaries that guarantee the Credit Facility and certain of our future restricted subsidiaries.
+Added: The 2026 Notes, 2029 Notes and 2030 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by our existing subsidiaries that guarantee the Credit Facility and certain of our future restricted subsidiaries.
See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
+Added: Redemption of Senior Notes
+Added: We fully redeemed all of our outstanding 5.125% senior notes due December 1, 2022 (the “2022 Notes”) at par, plus accrued and unpaid interest in the first quarter of 2021.
+Added: During the second quarter of 2021, we fully redeemed all of our outstanding 5.625% senior notes due June 1, 2023 (the “2023 Notes”) at par, plus accrued and unpaid interest.
+Added: On July 1, 2021, we redeemed $175 million of the principal amount of our 2026 Notes at a redemption price of 108.375% of the principal amount thereof, plus accrued and unpaid interest.
+Added: Immediately following the redemption, there were $325 million aggregate principal amount of 2026 Notes outstanding.
+Added: See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
+Added: On October 18, 2021, we issued a notice of partial redemption with respect to the 2029 Notes.
+Added: On November 2, 2021, we
+Added: will redeem $116 million aggregate principal amount of outstanding 2029 Notes at a redemption price of 107.625% of the principal
+Added: amount thereof, plus accrued and unpaid interest.
+Added: Immediately following the redemption, there will be $584 million aggregate
+Added: principal amount of 2029 Notes outstanding.
+Added: The $9 million premium to the principal amount to be redeemed along with the
+Added: write off of a proportional amount of unamortized debt issuance costs will be included in our loss on early debt extinguishment during
+Added: the fourth quarter of 2021.
Convertible Notes Equitizations
On January 12, 2021, we completed a registered direct offering (the “January Share Offering”) of an aggregate of 31.4 million shares of our common stock at a price of $6.35 per share to certain holders of our 4.25% convertible senior notes due 2026 (the “2026 Convertible Notes”).
−Removed: We used the proceeds from the January Share Offering and approximately $63 million of borrowings under the Credit Facility to repurchase from such holders $150 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions (the “January Convertible Note Repurchase,” and, collectively with the January Share Offering, the “January Equitization Transactions”).
+Added: We used the proceeds from the January Share Offering and approximately $63 million of borrowings under the Prior Credit Facility to repurchase from such holders $150 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions (the “January Convertible Note Repurchase,” and, collectively with the January Share Offering, the “January Equitization Transactions”).
On May 13, 2021, we completed a registered direct offering (the “May Share Offering”) of an aggregate of 11.6 million shares of our common stock at a price of $11.01 per share to certain holders of our 2026 Convertible Notes.
−Removed: We used the proceeds from the May Share Offering and approximately $26 million of borrowings under the Credit Facility to repurchase from such holders $56 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions (the “May Convertible Note Repurchase,” and, collectively with the May Share Offering, the “May Equitization Transactions”).
+Added: We used the proceeds from the May Share Offering and approximately $26 million of borrowings under the Prior Credit Facility to repurchase from such holders $56 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions (the “May Convertible Note Repurchase,” and, collectively with the May Share Offering, the “May Equitization Transactions”).
See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
23 unchanged sentences
The table below excludes derivative instruments attributable to Martica, our consolidated variable interest entity (“VIE”), since all gains or losses from such contracts are fully attributable to the noncontrolling interests in Martica.
−Removed: As of June 30, 2021, our fixed price natural gas, oil and NGL swap positions excluding Martica, our consolidated VIE, were as follows:
+Added: As of September 30, 2021, our fixed price natural gas, oil and NGL swap positions excluding Martica, our consolidated VIE, were as follows:
Commodity / Settlement Period
Contracted Volume
−Removed: July-December 2021
+Added: October-December 2021
January-December 2022
January-December 2023
−Removed: July-October 2021
−Removed: Mont Belvieu Propane-OPIS TET
−Removed: July-December 2021
+Added: October-December 2021
Mont Belvieu Butane-OPIS Non-TET
−Removed: July-December 2021
+Added: October-December 2021
Mont Belvieu Butane-OPIS TET
Natural Gasoline
−Removed: July-December 2021
+Added: October-December 2021
Mont Belvieu Natural Gasoline-OPIS Non-TET
−Removed: July-December 2021
+Added: October-December 2021
Mont Belvieu Isobutane-OPIS Non-TET
−Removed: July-December 2021
+Added: October-December 2021
West Texas Intermediate
In addition, we have a call option agreement, which entitles the holder, if exercised, to enter into a fixed price swap agreement for approximately 156 Bcf at a price of $2.77 per MMBtu in 2024.
−Removed: As of June 30, 2021, our 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:
+Added: As of September 30, 2021, our 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:
Weighted Average
3 unchanged sentences
Hedged Differential
−Removed: July-December 2021
+Added: October-December 2021
January-December 2022
1 unchanged sentence
January-December 2024
−Removed: As of June 30, 2021, we had natural gas and NGL contracts that fix the Mont Belvieu index price for natural gasoline to percentages of WTI as follows:
+Added: As of September 30, 2021, we had natural gas and NGL contracts that fix the Mont Belvieu index price for natural gasoline to percentages of WTI as follows:
Weighted Average
2 unchanged sentences
Contracted Volume
−Removed: July-December 2021
+Added: October-December 2021
Mont Belvieu Natural Gasoline to WTI
−Removed: As of June 30, 2021, we also had an embedded put option tied to NYMEX pricing for the production volumes associated with our retained interest in the VPP (as defined below) properties of 100 Bcf remaining through December 31, 2026 at a weighted average strike price of $2.58 per MMBtu.
+Added: As of September 30, 2021, we also had an embedded put option tied to NYMEX pricing for the production volumes associated with our retained interest in the VPP (as defined below) properties of 95 Bcf remaining through December 31, 2026 at a weighted average strike price of $2.57 per MMBtu.
We believe our hedge position provides some certainty to cash flows supporting our future operations and capital spending plans.
−Removed: As of June 30, 2021, the estimated fair value of our commodity derivative contracts was a net liability of approximately $918 million.
−Removed: Please see Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for more information.
+Added: As of September 30, 2021, the estimated fair value of our commodity derivative contracts was a net liability of approximately $1.7 billion.
+Added: See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for more information.
Results of Operations
7 unchanged sentences
See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements.
−Removed: Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2021
−Removed: The operating results of our reportable segments were as follows for the three months ended June 30, 2021 and 2021 (in thousands):
−Removed: Three Months Ended June 30, 2020
+Added: Three Months Ended September 30, 2020 Compared to Three Months Ended September 30, 2021
+Added: The operating results of our reportable segments were as follows for the three months ended September 30, 2020 and 2021 (in thousands):
+Added: Three Months Ended September 30, 2020
Equity Method
8 unchanged sentences
Gathering, compression, water handling and treatment
+Added: Amortization of deferred revenue, VPP
Other income (loss)
+Added: Total revenue
Operating expenses:
9 unchanged sentences
Contract termination and rig stacking and other expenses
+Added: Total operating expenses
Operating income (loss)
Equity in earnings of unconsolidated affiliates
−Removed: Three Months Ended June 30, 2021
+Added: Three Months Ended September 30, 2021
Equity Method
11 unchanged sentences
Other income (loss)
+Added: Total revenue
Operating expenses:
9 unchanged sentences
Contract termination and rig stacking and other expenses
+Added: Total operating expenses
Operating income (loss)
1 unchanged sentence
Exploration and Production Segment
−Removed: The following table sets forth selected operating data of the exploration and production segment for the three months ended June 30, 2020 compared to the three months ended June 30, 2021:
+Added: The following table sets forth selected operating data of the exploration and production segment for the three months ended September 30, 2020 compared to the three months ended September 30, 2021:
Three Months Ended
+Added: September 30,
Production data (1) :
25 unchanged sentences
(1) Production data excludes volumes related to the volumetric production payment transaction (the “VPP”).
−Removed: Please see Note 3— Transactions to the unaudited condensed consolidated financial statements for more information.
+Added: See Note 3— Transactions to the unaudited condensed consolidated financial statements for more information.
(2) Average sales prices shown in the table reflect both the before and after effects of our settled commodity derivatives.
3 unchanged sentences
Natural gas sales .
−Removed: Revenues from sales of natural gas increased from $367 million for the three months ended June 30, 2020 to $627 million for the three months ended June 30, 2021, an increase of $260 million, or 71%.
−Removed: Lower natural gas production volumes during the three months ended June 30, 2021 accounted for an approximate $11 million decrease in year-over-year natural gas sales revenue (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices (excluding the effects of derivative settlements) accounted for an approximate $271 million increase in year-over-year gas sales revenue (calculated as the change in the year-to-year average price excluding the net proceeds from the litigation times current year production volumes).
−Removed: Revenues from sales of NGLs increased from $212 million for the three months ended June 30, 2020 to $464 million for the three months ended June 30, 2021, an increase of $252 million, or 119% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
−Removed: Lower NGLs production volumes accounted for an approximate $25 million decrease in year-over-year NGL revenues (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices, excluding the effects of derivative settlements, accounted for an approximate $277 million increase in year-over-year revenues (calculated as the change in the year-to-year average price times current year production volumes).
−Removed: Revenues from sales of oil increased from $8 million for the three months ended June 30, 2020 to $52 million for the three months ended June 30, 2021, an increase of $44 million, or 524% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
−Removed: Lower oil production volumes accounted for less than $1 million decrease in year-over-year oil revenues (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices, excluding the effects of derivative settlements, accounted for an approximate $44 million increase in year-over-year revenues (calculated as the change in the year-to-year average price times current year production volumes).
+Added: Revenues from sales of natural gas increased from $436 million for the three months ended September 30, 2020 to $885 million for the three months ended September 30, 2021, an increase of $449 million, or 103%.
+Added: Lower natural gas production volumes during the three months ended September 30, 2021 accounted for an approximate $39 million decrease in year-over-year natural gas sales revenue (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices (excluding the effects of derivative settlements) accounted for an approximate $488 million increase in year-over-year gas sales revenue (calculated as the change in the year-to-year average price excluding the net proceeds from the litigation times current year production volumes).
+Added: Revenues from sales of NGLs increased from $327 million for the three months ended September 30, 2020 to $598 million for the three months ended September 30, 2021, an increase of $271 million, or 83% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
+Added: Lower NGLs production volumes accounted for an approximate $76 million decrease in year-over-year NGL revenues (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices, excluding the effects of derivative settlements, accounted for an approximate $347 million
+Added: increase in year-over-year revenues (calculated as the change in the year-to-year average price times current year production volumes).
+Added: Revenues from sales of oil increased from $34 million for the three months ended September 30, 2020 to $57 million for the three months ended September 30, 2021, an increase of $23 million, or 66% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
+Added: Lower oil production volumes accounted for an approximate $11 million decrease in year-over-year oil revenues (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices, excluding the effects of derivative settlements, accounted for an approximate $34 million increase in year-over-year revenues (calculated as the change in the year-to-year average price times current year production volumes).
Commodity derivative fair value gains (losses) .
2 unchanged sentences
Consequently, all mark-to-market gains or losses, as well as cash receipts or payments on settled derivative instruments, are recognized in our statements of operations.
−Removed: For the three months ended June 30, 2020 and 2021, our commodity hedges resulted in derivative fair value losses of $168 million and $832 million, respectively.
−Removed: For the three months ended June 30, 2020, commodity derivative fair value losses included $314 million of cash proceeds for gains on settled derivatives.
−Removed: For the three months ended June 30, 2021, commodity derivative fair value losses included $70 million of cash payments on commodity settled derivatives losses as well as $5 million for payments on derivative monetizations.
+Added: For the three months ended September 30, 2020 and 2021, our commodity hedges resulted in derivative fair value losses of $515 million and $1.3 billion, respectively.
+Added: For the three months ended September 30, 2020, commodity derivative fair value losses included $234 million of cash proceeds for gains on settled derivatives.
+Added: For the three months ended September 30, 2021, commodity derivative fair value losses included $416 million of cash payments on commodity settled derivatives losses.
Commodity derivative fair value gains or losses vary based on future commodity prices and have no cash flow impact until the derivative contracts are settled or monetized prior to settlement.
2 unchanged sentences
Amortization of deferred revenue, VPP.
−Removed: The three months ended June 30, 2021 includes amortization of $11 million of deferred revenues associated with the VPP that closed during the third quarter of 2020, which relate to the production volumes delivered under the terms of the agreement during such period at approximately $1.61 per MMBtu.
+Added: Amortization of deferred revenues associated with the VPP increased from $5 million for the three months ended September 30, 2020 to $11 million for the three months ended September 30, 2021 as a result of the VPP closing in August 2020.
+Added: Under the terms of the agreement, the production volumes are delivered at approximately $1.61 per MMBtu over the contractual term.
See Note 3—Transactions to the unaudited condensed consolidated financial statements for more information on this transaction.
Lease operating expense .
−Removed: Lease operating expense decreased from $25 million for the three months ended June 30, 2020 to $22 million for the three months ended June 30, 2021, a decrease of $3 million or 13%.
−Removed: On a per unit basis, lease operating expenses were $0.08 per Mcfe for the three months ended June 30, 2020 decreased to $0.07 per Mcfe for each of the three months ended June 30, 2021 primarily due to cost savings initiatives.
+Added: Lease operating expense increased from $21 million for the three months ended September 30, 2020 to $25 million for the three months ended September 30, 2021, an increase of $4 million or 18%.
+Added: On a per unit basis, lease operating expenses increased from $0.06 per Mcfe for the three months ended September 30, 2020 to $0.08 per Mcfe for the three months ended September 30, 2021 primarily due to decreased production and higher fixed costs partially offset by lower water disposal costs.
Gathering, compression, processing, and transportation expense.
−Removed: Gathering, compression, processing, and transportation expense increased from $632 million for the three months ended June 30, 2020 to $641 million for the three months ended June 30, 2021, an increase of $9 million or 2%.
−Removed: This increase is primarily a result of higher gathering and compression and transportation costs, partially offset by lower processing costs between periods.
−Removed: Gathering and compression costs increased from $0.63 per Mcfe for the three months ended June 30, 2020 to $0.74 per Mcfe for the three months ended June 30, 2021, primarily due to higher fuel costs as a result of increased natural gas prices and $12 million in incentive fee rebates from Antero Midstream Corporation received during the three months ended June 30, 2020 that were not received during the three months ended June 30, 2021.
−Removed: Processing costs decreased from $0.76 per Mcfe for the three months ended June 30, 2020 to $0.69 per Mcfe for the three months ended June 30, 2021, due to lower terminal fees between periods.
−Removed: Transportation costs increased from $0.58 per Mcfe for the three months ended 2020 to $0.69 per Mcfe for the three months ended June 30, 2021 primarily due to increased usage on the Rockies Express Pipeline.
+Added: Gathering, compression, processing, and transportation expense decreased from $657 million for the three months ended September 30, 2020 to $628 million for the three months ended September 30, 2021, a decrease of $29 million or 4%.
+Added: This decrease is primarily a result of lower production and decreased processing costs, partially offset by higher gathering and compression and transportation costs between periods.
+Added: Gathering and compression costs increased from $0.64 per Mcfe for the three months ended September 30, 2020 to $0.73 per Mcfe for the three months ended September 30, 2021, primarily due to higher fuel costs as a result of increased natural gas prices and $12 million in incentive fee rebates from Antero Midstream Corporation received during the three months ended September 30, 2020 that were not received during the three months ended September 30, 2021.
+Added: Processing costs decreased from $0.71 per Mcfe for the three months ended September 30, 2020 to $0.69 per Mcfe for the three months ended September 30, 2021, due to a decrease in C3+ NGL volumes as compared to total production volumes between periods, partially offset by increased NGL pipeline and terminaling fees from higher NGL volumes taken in-kind between periods.
+Added: Transportation costs increased from $0.55 per Mcfe for the three months ended September 30, 2020 to $0.68 per Mcfe for the three months ended September 30, 2021 primarily due to increased utilization on higher tariff pipelines to the Midwest and Gulf Coast between periods.
Production and ad valorem tax expense.
−Removed: Production and ad valorem taxes increased from $20 million for the three months ended June 30, 2020 to $34 million for the three months ended June 30, 2021, an increase of $14 million, or 69% primarily due to higher commodity prices between periods.
−Removed: Production and ad valorem taxes as a percentage of natural gas revenues was relatively consistent at 5% in each of the three months ended June 30, 2020 and 2021.
+Added: Production and ad valorem taxes increased from $26 million for the three months ended September 30, 2020 to $52 million for the three months ended September 30, 2021, an increase of $26 million, or 100% primarily due to higher commodity prices between periods.
+Added: Production and ad valorem taxes as a percentage of natural gas revenues remained consistent at 6% in each of the three months ended September 30, 2020 and 2021.
Impairment of oil and gas properties .
−Removed: Impairment of oil and gas properties decreased from $37 million for the three months ended June 30, 2020 to $9 million for the three months ended June 30, 2021, a decrease of $28 million, or 75%, primarily related to lower impairments of expiring leases between periods.
+Added: Impairment of oil and gas properties decreased from $ 29 million for the three months ended September 30, 2020 to $ 26 million for the three months ended September 30, 2021 , a decrease of $3 million, or 11%, primarily related to lower impairments of expiring leases between periods.
During both periods, we recognized impairments primarily related to expiring leases and initial costs related to pads we no longer plan to place into service.
Depletion, depreciation, and amortization expense .
−Removed: DD&A expense decreased from $214 million for the three months ended June 30, 2020 to $187 million for the three months ended June 30, 2021, a decrease of $27 million, or 12%, primarily as a result of increased proved reserve volumes due to higher commodity prices as well as lower production volumes between periods.
−Removed: expense decreased from $0.67 per Mcfe for the three months ended June 30, 2020 to $0.62 per Mcfe for the three months ended June 30, 2021, primarily as a result of increased proved reserve volumes between periods.
+Added: Depletion, depreciation and amortization (“DD&A”) expense decreased from $238 million for the three months ended September 30, 2020 to $183 million for the three months ended September 30, 2021, a decrease of $55 million, or 23%, primarily as a result of increased proved reserve volumes due to higher commodity prices as well as lower production volumes between periods.
+Added: DD&A expense decreased from $0.69 per Mcfe for the three months ended September 30, 2020 to $0.61 per Mcfe for the three months ended September 30, 2021, primarily as a result of increased proved reserve volumes between periods.
General and administrative expense .
−Removed: General and administrative expense (excluding equity-based compensation expense) decreased from $30 million for the three months ended June 30, 2020 to $28 million for the three months ended June 30, 2021, a decrease of $2 million, or 8%.
−Removed: The decrease was primarily due to lower employee headcount during 2021.
−Removed: We had 524 and 504 employees as of June 30, 2020 and 2021, respectively.
−Removed: On a per-unit basis, general and administrative expense excluding equity-based compensation was $0.09 per Mcfe for both the three months ended June 30, 2020 and 2021, respectively.
+Added: General and administrative expense (excluding equity-based compensation expense) increased from $26 million for the three months ended September 30, 2020 to $27 million for the three months ended September 30, 2021, an increase of $1 million, or 5%.
+Added: The increase was primarily due to higher salary and wage expense between periods, which includes our annual incentive program that was significantly reduced during 2020, partially offset by lower employee headcount during 2021.
+Added: We had 520 and 506 employees as of September 30, 2020 and 2021, respectively.
+Added: On a per-unit basis, general and administrative expense excluding equity-based compensation increased from $0.07 per Mcfe for the three months ended September 30, 2020 to $0.09 per Mcfe for the three months ended September 30, 2021 primarily due to lower production between periods.
Equity-based compensation expense .
−Removed: Noncash equity-based compensation expense decreased from $8 million for the three months ended June 30, 2020 to $4 million for the three months ended June 30, 2021, primarily due to equity award forfeitures partially offset by new awards granted to employees.
+Added: Noncash equity-based compensation expense decreased from $6 million for the three months ended September 30, 2020 to $5 million for the three months ended September 30, 2021, primarily due to equity award forfeitures, partially offset by new awards granted to employees.
When an equity award is forfeited, expense previously recognized for the award is reversed.
−Removed: Please see Note 9—Equity Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for more information on equity-based compensation awards.
+Added: See Note 9—Equity Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for more information on equity-based compensation awards.
Marketing Segment
−Removed: Where feasible, we purchase and sell third-party natural gas and NGLs and market our excess firm transportation capacity, or engage third parties to conduct these activities on our behalf, to optimize the revenues from these transportation agreements.
+Added: Where feasible, we purchase and sell third-party natural gas and NGLs and market our excess firm transportation capacity, or engage third parties to conduct these activities on our behalf, to optimize the revenues and mitigate costs from these transportation agreements.
We have entered into long-term firm transportation agreements for a significant portion of our current and expected future production to secure guaranteed capacity to favorable markets.
−Removed: Net marketing expenses decreased from $49 million, or $0.15 per Mcfe, for the three months ended June 30, 2020 to $34 million, or $0.11 per Mcfe, for the three months ended June 30, 2021.
+Added: Net marketing expenses decreased from $37 million, or $0.11 per Mcfe, for the three months ended September 30, 2020 to $34 million, or $0.11 per Mcfe, for the three months ended September 30, 2021.
The decrease in net marketing expense was driven by higher marketing volumes and margins that mitigated some of our excess firm transportation expense.
−Removed: Marketing revenues increased from $64 million for the three months ended June 30, 2020 to $165 million for the three months ended June 30, 2021, an increase of $101 million.
−Removed: Marketing expenses increased from $113 million for the three months ended June 30, 2020 to $199 million for the three months ended June 30, 2021, an increase of $86 million, or 76%.
+Added: Marketing revenues increased from $91 million for the three months ended September 30, 2020 to $233 million for the three months ended September 30, 2021, an increase of $142 million due to increased marketing volumes.
+Added: Marketing expenses increased from $129 million for the three months ended September 30, 2020 to $267 million for the three months ended September 30, 2021, an increase of $138 million, or 107%.
Marketing expenses include firm transportation costs related to current excess firm capacity as well as the cost of third-party purchased gas and NGLs.
−Removed: Firm transportation costs included in the expenses above were $41 million and $19 million for the three months ended June 30, 2020 and 2021, respectively.
+Added: Firm transportation costs included in the expenses above were $32 million and $28 million for the three months ended September 30, 2020 and 2021, respectively.
Equity Method Investment in Antero Midstream Corporation
Antero Midstream Corporation.
−Removed: Revenue from the Antero Midstream Corporation segment increased from $220 million for the three months ended June 30, 2020 to $233 million for the three months ended June 30, 2021, an increase of $13 million, or 6%, primarily due to higher gathering and compression revenues as a result of increased throughput between periods, partially offset by lower water handling revenue as a result of operational efficiencies.
−Removed: Total operating expenses related to the segment decreased from $85 million for the three months ended June 30, 2020 to $81 million for the three months ended June 30, 2021, primarily due to lower water handling operating expenses as a result of operational efficiencies, partially offset by increased gathering and compression expenses due to higher throughput volumes.
+Added: Revenue from the Antero Midstream Corporation segment decreased from $233 million for the three months ended September 30, 2020 to $225 million for the three months ended September 30, 2021, a decrease of $8 million, or 4%, primarily due to lower water handling revenue due to decreased well completions period-over-period and lower gathering and compression revenues as a result of reduced throughput between periods.
+Added: Total operating expenses related to the segment remained relatively consistent between periods at $82 million and $83 million for the three months ended September 30, 2020 and 2021, respectively.
Items Not Allocated to Segments
Interest expense.
−Removed: Our interest expense decreased from $52 million for the three months ended June 30, 2020 to $50 million for the three months ended June 30, 2021, a decrease of $2 million or 4%, primarily due to the reduction in debt as a result of the repurchase of certain our unsecured senior notes and increased interest income between periods, partially offset by interest that accrued on the 2026 Convertible Notes, 2026 Notes, 2029 Notes and 2030 Notes, each of which was issued after June 30, 2020.
+Added: Our interest expense decreased from $48 million for the three months ended September 30, 2020 to $45 million for the three months ended September 30, 2021, a decrease of $3 million or 5%, primarily due to the reduction in debt as a result of the repurchase of certain our unsecured senior notes, paydown of our Prior Credit Facility and increased interest income between periods, partially offset by interest that accrued on the 2026 Notes, 2029 Notes and 2030 Notes, each of which was issued after September 30, 2020.
Gain (loss) on early extinguishment of debt.
−Removed: During the three months ended June 30, 2020, we recognized a gain on early extinguishment of debt of $39 million related to $236 million principal amount of debt that we repurchased at a weighted average discount of 17%.
−Removed: During the three months ended June 30, 2021, we equitized $56 million aggregate principal amount of our 2026 Convertible Notes in the May Equitization Transactions and as a result, we recognized a loss of $21 million which represents the difference between the fair value of the liability component of the 2026 Convertible Notes and the carrying value of such notes.
−Removed: Additionally, during the three months ended June 30, 2021, we redeemed the remaining balance of $574 million of our 2023 Notes at
−Removed: par, plus accrued and unpaid interest and recognized a $2 million loss on early extinguishment of debt.
−Removed: See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
−Removed: Loss on convertible note equitization.
−Removed: During the three months ended June 30, 2021, we recognized a loss of $12 million for the May Equitization Transactions, which represents the consideration paid in excess of the original terms of the 2026 Convertible Notes.
+Added: During the three months ended September 30, 2020 , we recognized a gain on early extinguishment of debt of $56 million related to $1.1 billion principal amount of debt that we repurchased at a weighted average discount of 13%.
+Added: During the three months ended September 30, 2021 , we redeemed $175 million of our 2026 Notes at a redemption price of 108.375% of par, plus accrued and unpaid interest, which resulted in a loss on early debt extinguishment of $17 million.
See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
Transaction expense.
−Removed: We incurred transaction expense of $6 million for the three months ended June 30, 2020, which expenses included legal and transaction fees associated with the sale of our overriding royalty interest and the creation of Martica.
−Removed: See Note 3—Transactions to the unaudited condensed consolidated financial statements for more information on this transaction.
+Added: Transaction expense remained consistent between periods at less than $1 million for both the three months ended September 31, 2020 and 2021.
Income tax benefit .
−Removed: Income tax benefit increased from $142 million, with an effective tax rate of 24%, for the three months ended June 30, 2020 to $176 million, with an effective tax rate of 25%, for the three months ended June 30, 2021, an increase of $34 million.
−Removed: The increase was primarily due to a higher loss before income taxes between periods.
−Removed: Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2021
−Removed: The operating results of our reportable segments were as follows for the six months ended June 30, 2020 and 2021 (in thousands):
−Removed: Six Months Ended June 30, 2020
+Added: Income tax benefit decreased from $169 million, with an effective tax rate of 23%, for the three months ended September 30, 2020 to $159 million, with an effective tax rate of 22%, for the three months ended September 30, 2021, a decrease of $10 million.
+Added: The decrease was primarily due to unfavorable adjustments related to the West Virginia law change effecting apportionment and sourcing methodologies resulting in lower income tax benefit for the period ending September 30, 2021.
+Added: Nine Months Ended September 30, 2020 Compared to Nine Months Ended September 30, 2021
+Added: The operating results of our reportable segments were as follows for the nine months ended September 30, 2020 and 2021 (in thousands):
+Added: Nine Months Ended September 30, 2020
Equity Method
6 unchanged sentences
Natural gas liquids sales
−Removed: Commodity derivative fair value gains
+Added: Commodity derivative fair value losses
Gathering, compression, water handling and treatment
+Added: Amortization of deferred revenue, VPP
Other income (loss)
+Added: Total revenue
Operating expenses:
10 unchanged sentences
Contract termination and rig stacking and other expenses
+Added: Total operating expenses
Operating loss
Equity in earnings (loss) of unconsolidated affiliates
−Removed: Six Months Ended June 30, 2021
+Added: Nine Months Ended September 30, 2021
Equity Method
6 unchanged sentences
Natural gas liquids sales
−Removed: Commodity derivative fair value gains
+Added: Commodity derivative fair value losses
Gathering, compression, water handling and treatment
1 unchanged sentence
Gain on sale of assets
+Added: Other income (loss)
+Added: Total revenue
Operating expenses:
4 unchanged sentences
Impairment of oil and gas properties
−Removed: Impairment of midstream assets
Depletion, depreciation, and amortization
3 unchanged sentences
Contract termination and rig stacking and other expenses
+Added: Total operating expenses
Operating income (loss)
1 unchanged sentence
Exploration and Production Segment
−Removed: The following table sets forth selected operating data of the exploration and production segment for the six months ended June 30, 2020 compared to the six months ended June 30, 2021:
−Removed: Six Months Ended June 30,
+Added: The following table sets forth selected operating data of the exploration and production segment for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2021:
+Added: Nine Months Ended September 30,
Production data (1) (2) :
24 unchanged sentences
General and administrative (excluding equity-based compensation)
−Removed: (1) Production data excludes volumes related to the volumetric production payment transaction (the “VPP”).
−Removed: Please see Note 3— Transactions to the unaudited condensed consolidated financial statements for more information.
+Added: (1) Production data excludes volumes related to the VPP.
+Added: See Note 3— Transactions to the unaudited condensed consolidated financial statements for more information.
(2) Average sales prices shown in the table reflect both the before and after effects of our settled commodity derivatives.
2 unchanged sentences
This ratio is an estimate of the equivalent energy content of the products and does not necessarily reflect their relative economic value.
−Removed: (3) The average realized price for the six months ended June 30, 2021 includes $85 million of net litigation proceeds related to a favorable litigation judgment.
+Added: (3) The average realized price for the nine months ended September 30, 2021 includes $85 million of net litigation proceeds related to a favorable litigation judgment.
See Note 14—Contingencies to the unaudited condensed consolidated financial statements for further discussion on the litigation proceeds.
1 unchanged sentence
Natural gas sales .
−Removed: Revenues from sales of natural gas increased from $778 million for the six months ended June 30, 2020 to $1.3 billion, which included litigation proceeds of $85 million, for the six months ended June 30, 2021, an increase of $568 million, or 73%.
−Removed: Please see Note 14— Contingencies to the unaudited condensed consolidated financial statements for more information on the litigation proceeds.
−Removed: Excluding net litigation proceeds, lower natural gas production volumes during the six months ended June 30, 2021 accounted for an approximate $14 million decrease in year-over-year natural gas sales revenue (calculated as the change in year-to-year volumes times the prior year average price excluding the net proceeds from the litigation), and increases in commodity prices (excluding the effects of derivative settlements) accounted for an approximate $497 million increase in year-over-year gas sales revenue (calculated as the change in the year-to-year average price excluding the net proceeds from the litigation times current year production volumes).
−Removed: Revenues from sales of NGLs increased from $470 million for the six months ended June 30, 2020 to $905 million for the six months ended June 30, 2021, an increase of $435 million, or 93% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
+Added: Revenues from sales of natural gas increased from $1.2 billion for the nine months ended September 30, 2020 to $2.2 billion, which included litigation proceeds of $85 million, for the nine months ended September 30, 2021, an increase of $1.0 billion, or 84%.
+Added: See Note 14— Contingencies to the unaudited condensed consolidated financial statements for more information on the litigation proceeds.
+Added: Excluding net litigation proceeds, lower natural gas production volumes during the nine months ended September 30, 2021 accounted for an approximate $53 million decrease in year-over-year natural gas sales revenue (calculated as the change in year-to-year volumes times the prior year average price excluding the net proceeds from the litigation), and increases in commodity prices (excluding the effects of derivative settlements) accounted for an approximate $984 million increase in year-over-year gas sales revenue (calculated as the change in the year-to-year average price excluding the net proceeds from the litigation times current year production volumes).
+Added: Revenues from sales of NGLs increased from $797 million for the nine months ended September 30, 2020 to $1.5 billion for the nine months ended September 30, 2021, an increase of $706 million, or 89% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
Lower NGLs production volumes accounted for an approximate $118 million decrease in year-over-year NGL revenues (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices, excluding the effects of derivative settlements, accounted for an approximate $824 million increase in year-over-year revenues (calculated as the change in the year-to-year average price times current year production volumes).
−Removed: Revenues from sales of oil increased from $44 million for the six months ended June 30, 2020 to $97 million for the six months ended June 30, 2021, an increase of $53 million, or 120% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
+Added: Revenues from sales of oil increased from $78 million for the nine months ended September 30, 2020 to $153 million for the nine months ended September 30, 2021, an increase of $75 million, or 96% (calculated as the change in year-over-year volumes times the change in year-to-year average price).
Lower oil production volumes accounted for a $11 million decrease in year-over-year oil revenues (calculated as the change in year-to-year volumes times the prior year average price), and increases in commodity prices, excluding the effects of derivative settlements, accounted for an approximate $86 million increase in year-over-year revenues (calculated as the change in the year-to-year average price times current year production volumes).
3 unchanged sentences
Consequently, all mark-to-market gains or losses, as well as cash receipts or payments on settled derivative instruments, are recognized in our statements of operations.
−Removed: For the six months ended June 30, 2020, our commodity hedges resulted in derivative fair value gains of $398 million.
−Removed: For the six months ended June 30, 2021, our commodity hedges resulted in derivative fair value loss of $1.0 billion.
−Removed: Commodity derivative fair value losses included $525 million of cash proceeds for gains on settled derivatives for the six months ended June 30, 2020.
−Removed: For the six months ended June 30, 2021, commodity derivative fair value losses included $65 million of cash payments on commodity derivative losses as well as $5 million for payments on derivative monetizations.
+Added: For the nine months ended September 30, 2020, our commodity hedges resulted in derivative fair value losses of $117 million.
+Added: For the nine months ended September 30, 2021, our commodity hedges resulted in derivative fair value loss of $2.3 billion.
+Added: Commodity derivative fair value losses included $759 million of cash proceeds for gains on settled derivatives for the nine months ended September 30, 2020.
+Added: For the nine months ended September 30, 2021, commodity derivative fair value losses included $481 million of cash payments on commodity derivative losses as well as $5 million for payments on derivative monetizations.
Commodity derivative fair value gains or losses vary based on future commodity prices and have no cash flow impact until the derivative contracts are settled or monetized prior to settlement.
2 unchanged sentences
Amortization of deferred revenue, VPP.
−Removed: The six months ended June 30, 2021 includes amortization of $22 million of deferred revenues associated with the VPP that closed during the third quarter of 2020, which relate to the production volumes delivered under the terms of the agreement during such period at approximately $1.61 per MMBtu.
+Added: Amortization of deferred revenues associated with the VPP increased from $5 million for the nine months ended September 30, 2020 to $34 million for the nine months ended September 30, 2021 as a result of the VPP closing in August 2020.
+Added: Under the terms of the agreement, the production volumes are delivered at approximately $1.61 per MMBtu over the contractual term.
See Note 3—Transactions to the unaudited condensed consolidated financial statements for more information on this transaction.
Lease operating expense .
−Removed: Lease operating expense decreased from $50 million for the six months ended June 30, 2020 to $46 million for the six months ended June 30, 2021, a decrease of $4 million or 8% primarily due to cost savings initiatives.
−Removed: On a per unit basis, lease operating expenses were $0.08 per Mcfe for each of the six months ended June 30, 2020 and 2021.
+Added: Lease operating expense was $72 million for each of the nine months ended September 30, 2020 and 2021.
+Added: On a per unit basis, lease operating expenses increased from $0.07 per Mcfe for the nine months ended September 30, 2020 to $0.08 per Mcfe for the three months ended September 30, 2021 primarily due to lower production volumes.
Gathering, compression, processing, and transportation expense.
−Removed: Gathering, compression, processing, and transportation expense remained relatively flat at $1.2 billion for both the six months ended June 30, 2020 and 2021.
−Removed: Gathering and compression costs increased from $0.63 per Mcfe for the six months ended June 30, 2020 to $0.74 per Mcfe for the six months ended June 30, 2021, primarily due to higher fuel costs as a result of increased natural gas prices and $24 million in incentive fee rebates from Antero Midstream Corporation received during the six months ended June 30, 2020 that were not received during the six months ended June 30, 2021.
−Removed: Processing costs decreased from $0.72 per Mcfe for the six months ended June 30, 2020 to $0.65 per Mcfe for the six months ended June 30, 2021, due to lower terminal fees between periods.
−Removed: Transportation costs increased from $0.59 per Mcfe for the six months ended June 30, 2020 to $0.68 per Mcfe for the six months ended June 30, 2021 primarily due to increased usage on the Rockies Express Pipeline.
+Added: Gathering, compression, processing, and transportation expense remained relatively flat at $1.9 billion for both the nine months ended September 30, 2020 and 2021.
+Added: Gathering and compression costs increased from $0.63 per Mcfe for the nine months ended September 30, 2020 to $0.74 per Mcfe for the nine months ended September 30, 2021, primarily due to higher fuel costs as a result of increased natural gas prices and $36 million in incentive fee rebates from Antero Midstream Corporation received during the nine months ended September 30, 2020 that were not received during the nine months ended September 30, 2021.
+Added: Processing costs decreased from $0.72 per Mcfe for the nine months ended September 30, 2020 to $0.67 per Mcfe for the nine months ended September 30, 2021, due to a decrease in C3+ NGL volumes as compared to total production volumes between periods, partially offset by increased NGL pipeline and terminaling fees from higher NGL volumes taken in-kind between periods.
+Added: Transportation costs increased from $0.58 per Mcfe for the nine months ended September 30, 2020 to $0.68 per Mcfe for the nine months ended September 30, 2021 primarily due to increased utilization on higher tariff pipelines to the Midwest and Gulf Coast between periods.
Production and ad valorem tax expense.
−Removed: Production and ad valorem taxes increased from $46 million for the six months ended June 30, 2020 to $78 million for the six months ended June 30, 2021, an increase of $32 million, or 72% primarily due to higher commodity prices between periods and $5 million for the litigation judgment.
−Removed: Production and ad valorem taxes as a percentage of natural gas revenues was relatively consistent at 6% in each of the six months ended June 30, 2020 and 2021.
+Added: Production and ad valorem taxes increased from $71 million for the nine months ended September 30, 2020 to $131 million for the nine months ended September 30, 2021, an increase of $60 million, or 83% primarily due to higher commodity prices between periods and $5 million for the litigation judgment.
+Added: Production and ad valorem
+Added: taxes as a percentage of natural gas revenues remained consistent at 6% in each of the nine months ended September 30, 2020 and 2021.
Impairment of oil and gas properties .
−Removed: Impairment of oil and gas properties decreased from $127 million for the six months ended June 30, 2020 to $43 million for the six months ended June 30, 2021, a decrease of $84 million, or 66%, primarily related to
−Removed: lower impairments of expiring leases between periods.
+Added: Impairment of oil and gas properties decreased from $ 156 million for the nine months ended September 30, 2020 to $ 70 million for the nine months ended September 30, 2021 , a decrease of $86 million, or 55%, primarily related to lower impairments of expiring leases between periods.
During both periods, we recognized impairments primarily related to expiring leases as well as design and initial costs related to pads we no longer plan to place into service.
Depletion, depreciation, and amortization expense .
−Removed: DD&A expense decreased from $414 million for the six months ended June 30, 2020 to $381 million for the six months ended June 30, 2021, a decrease of $33 million, or 8%, primarily as a result of increased proved reserve volumes between periods due to higher commodity prices as well as lower production volumes between periods.
−Removed: DD&A per Mcfe remained relatively consistent at $0.66 per Mcfe and $0.64 per Mcfe during the six months ended June 30, 2020 and 2021, respectively.
+Added: DD&A expense decreased from $652 million for the nine months ended September 30, 2020 to $564 million for the nine months ended September 30, 2021, a decrease of $88 million, or 13%, primarily as a result of increased proved reserve volumes between periods due to higher commodity prices as well as lower production volumes between periods.
+Added: DD&A per Mcfe remained relatively consistent at $0.67 per Mcfe and $0.63 per Mcfe during the nine months ended September 30, 2020 and 2021, respectively.
General and administrative expense .
−Removed: General and administrative expense (excluding equity-based compensation expense) increased from $58 million for the six months ended June 30, 2020 to $66 million for the six months ended June 30, 2021, an increase of $8 million, or 14%.
+Added: General and administrative expense (excluding equity-based compensation expense) increased from $84 million for the nine months ended September 30, 2020 to $94 million for the nine months ended September 30, 2021, an increase of $10 million, or 11%.
The increase was primarily due to higher salary and wage expense between periods, which includes our annual incentive program that was significantly reduced during 2020.
−Removed: We had 524 and 504 employees as of June 30, 2020 and 2021, respectively.
−Removed: On a per-unit basis, general and administrative expense excluding equity-based compensation increased by $0.02 per Mcfe, from $0.09 per Mcfe during the six months ended June 30, 2020 to $0.11 per Mcfe during the six months ended June 30, 2021 as a result of lower production volumes and higher overall costs between periods.
+Added: We had 520 and 506 employees as of September 30, 2020 and 2021, respectively.
+Added: On a per-unit basis, general and administrative expense excluding equity-based compensation increased from $0.09 per Mcfe during the nine months ended September 30, 2020 to $0.10 per Mcfe during the nine months ended September 30, 2021 as a result of lower production volumes and higher overall costs between periods.
Equity-based compensation expense .
−Removed: Noncash equity-based compensation expense decreased from $11 million for the six months ended June 30, 2020 to $10 million for the six months ended June 30, 2021, primarily due to equity award forfeitures partially offset by new awards granted to employees.
+Added: Noncash equity-based compensation expense decreased from $17 million for the nine months ended September 30, 2020 to $15 million for the nine months ended September 30, 2021, primarily due to equity award forfeitures, partially offset by new awards granted to employees.
When an equity award is forfeited, expense previously recognized for the award is reversed.
−Removed: Please see Note 9—Equity Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for more information on equity-based compensation awards.
+Added: See Note 9—Equity Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for more information on equity-based compensation awards.
Marketing Segment
−Removed: Where feasible, we purchase and sell third-party natural gas and NGLs and market our excess firm transportation capacity, or engage third parties to conduct these activities on our behalf, to optimize the revenues from these transportation agreements.
+Added: Where feasible, we purchase and sell third-party natural gas and NGLs and market our excess firm transportation capacity, or engage third parties to conduct these activities on our behalf, to optimize the revenues and mitigate costs from these transportation agreements.
We have entered into long-term firm transportation agreements for a significant portion of our current and expected future production to secure guaranteed capacity to favorable markets.
−Removed: Net marketing expenses decreased from $96 million, or $0.15 per Mcfe, for the six months ended June 30, 2020 to $31 million, or $0.05 per Mcfe, for the six months ended June 30, 2021.
+Added: Net marketing expenses decreased from $133 million, or $0.14 per Mcfe, for the nine months ended September 30, 2020 to $65 million, or $0.07 per Mcfe, for the nine months ended September 30, 2021.
The decrease was driven by higher marketing volumes and margins that mitigated some of our excess firm transportation expense.
−Removed: Marketing revenues increased from $110 million for the six months ended June 30, 2020 to $330 million for the six months ended June 30, 2021, an increase of $220 million.
−Removed: Marketing expenses increased from $206 million for the six months ended June 30, 2020 to $361 million for the six months ended June 30, 2021, an increase of $155 million, or 75%.
+Added: Marketing revenues increased from $202 million for the nine months ended September 30, 2020 to $563 million for the nine months ended September 30, 2021, an increase of $361 million due to increased marketing volumes.
+Added: Marketing expenses increased from $335 million for the nine months ended September 30, 2020 to $628 million for the nine months ended September 30, 2021, an increase of $293 million, or 87%.
Marketing expenses include firm transportation costs related to current excess firm capacity as well as the cost of third-party purchased gas and NGLs.
−Removed: Firm transportation costs included in the expenses above were $88 million and $53 million for the six months ended June 30, 2020 and 2021, respectively.
+Added: Firm transportation costs included in the expenses above were $122 million and $81 million for the nine months ended September 30, 2020 and 2021, respectively.
Equity Method Investment in Antero Midstream Corporation
Antero Midstream Corporation.
−Removed: Revenue from the Antero Midstream Corporation segment decreased from $463 million for the six months ended June 30, 2020 to $457 million for the six months ended June 30, 2021, a decrease of $6 million, or 1%, primarily due to lower fresh water delivery revenue as a result of decreased well completions period-over-period, partially offset by higher gathering and compression revenues as a result of increased throughput between periods.
−Removed: Total operating expenses related to the segment decreased from $848 million for the six months ended June 30, 2020 to $172 million for the six months ended June 30, 2021, was primarily due to impairments by Antero Midstream Corporation during the six months ended June 30, 2020 of $89 million on its freshwater pipelines and equipment and impairment of goodwill of $575 million.
−Removed: Antero Midstream Corporation’s impairment expense was $1 million for the six months ended June 30, 2021 due to a lower of cost of market adjustment for pipe inventory.
+Added: Revenue from the Antero Midstream Corporation segment decreased from $697 million for the nine months ended September 30, 2020 to $682 million for the nine months ended September 30, 2021, a decrease of $15 million, or 2%, primarily due to lower fresh water delivery revenue as a result of decreased well completions period-over-period and lower gathering volumes, partially offset by higher compression revenues as a result of increased throughput between periods.
+Added: Total operating expenses related to the segment decreased from $929 million for the nine months ended September 30, 2020 to $255 million for the nine months ended September 30, 2021, primarily due to impairments by Antero Midstream Corporation during the nine months ended September 30, 2020 of $89 million on its freshwater pipelines and equipment and impairment of goodwill of $575 million.
+Added: Antero Midstream Corporation’s impairment expense was $2 million for the nine months ended September 30, 2021 due to a lower of cost or market adjustment for pipe inventory.
Items Not Allocated to Segments
Interest expense.
−Removed: Our interest expense decreased from $105 million for the six months ended June 30, 2020 to $93 million for the six months ended June 30, 2021 primarily due to the reduction in debt as a result of our debt repurchases of our unsecured
−Removed: senior notes and increased interest income between periods, partially offset by interest that accrued on the 2026 Convertible Notes, 2026 Notes, 2029 Notes and 2030 Notes, each of which was issued after June 30, 2020.
+Added: Our interest expense decreased from $153 million for the nine months ended September 30, 2020 to $138 million for the nine months ended September 30, 2021 primarily due to the reduction in debt as a result of our debt repurchases of our unsecured senior notes, paydown of our Prior Credit Facility and increased interest income between periods, partially offset by interest that accrued on the (i) 2026 Convertible Notes, which were issued in August 2020 and (ii) 2026 Notes, 2029 Notes and 2030 Notes, each of which was issued after September 30, 2020.
Impairment of equity investment .
1 unchanged sentence
The fair value of the equity method investment in Antero Midstream Corporation was based on the quoted market share price of Antero Midstream Corporation as of March 31, 2020.
−Removed: There was no such impairment for the six months ended June 30, 2021.
+Added: There was no such impairment for the nine months ended September 30, 2021.
Gain (loss) on early extinguishment of debt.
−Removed: During the six months ended June 30, 2020, we recognized a gain on early extinguishment of debt of $120 million related to $619 million principal amount of debt that we repurchased at a weighted average discount of 19%.
−Removed: During the six months ended June 30, 2021, we equitized $206 million aggregate principal amount of our 2026 Convertible Notes in privately negotiated exchange transactions and as a result, we recognized a loss of $61 million which represents the difference between the fair value of the liability component of the 2026 Convertible Notes and the carrying value of such notes.
−Removed: Additionally, during the six months ended June 30, 2021, we redeemed the remaining balance of $661 million of our 2022 Notes at par, plus accrued and unpaid interest and the remaining balance of $574 million of our 2023 Notes at par, plus accrued and unpaid interest and recognized a $5 million loss on early extinguishment of debt.
+Added: During the nine months ended September 30, 2020 , we recognized a gain on early extinguishment of debt of $175 million related to $1.1 billion principal amount of debt that we repurchased at a weighted average discount of 17%.
+Added: During the nine months ended September 30, 2021 , we equitized $206 million aggregate principal amount of our 2026 Convertible Notes in privately negotiated exchange transactions and as a result, we recognized a loss of $61 million which represents the difference between the fair value of the liability component of the 2026 Convertible Notes and the carrying value of such notes.
+Added: Additionally, during the nine months ended September 30, 2021, we redeemed (i) the remaining balance of $661 million of our 2022 Notes at par, plus accrued and unpaid interest, (ii) the remaining balance of $574 million of our 2023 Notes at par, plus accrued and unpaid interest and (iii) $175 million of our 2026 Notes at a redemption price of 108.375% of par, plus accrued and unpaid interest and recognized a $22 million loss on early extinguishment of debt for such redemptions.
See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
Loss on convertible note equitization.
−Removed: During the six months ended June 30, 2021, we recognized a loss of $51 million for the January Equitization Transactions and the May Equitization Transactions, which represents the consideration paid in excess of the original terms of the 2026 Convertible Notes.
+Added: During the nine months ended September 30, 2021, we recognized a loss of $51 million for the January Equitization Transactions and the May Equitization Transactions, which represents the consideration paid in excess of the original terms of the 2026 Convertible Notes.
See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
Transaction expense.
−Removed: Transaction expense decreased from $6 million for the six months ended June 30, 2020 to $2 million for the six months ended June 30, 2021, a decreased of $4 million or 66%.
−Removed: Transaction expenses for the six months ended June 30, 2020 included legal and transaction fees associated with the sale of our overriding royalty interest and the creation of Martica.
−Removed: For the six months ended June 30, 2021, transaction expense included legal and transaction fees associated with the drilling partnership.
−Removed: See Note 3—Transactions to the unaudited condensed consolidated financial statements for more information on this transaction.
+Added: Transaction expense decreased from $7 million for the nine months ended September 30, 2020 to $3 million for the nine months ended September 30, 2021, a decreased of $4 million or 53%.
+Added: Transaction expense for the nine months ended September 30, 2020 included legal and transaction fees associated with the sale of our overriding royalty interest and the creation of Martica, as well as the VPP transaction.
+Added: For the nine months ended September 30, 2021, transaction expense included legal and transaction fees associated with the drilling partnership.
+Added: See Note 3—Transactions to the unaudited condensed consolidated financial statements for more information on these transactions.
Income tax benefit .
−Removed: Income tax benefit decreased from $252 million, with an effective tax rate of 24%, for the six months ended June 30, 2020 to $179 million, with an effective tax rate of 25%, for the six months ended June 30, 2021, a decrease of $73 million.
+Added: Income tax benefit decreased from $421 million, with an effective tax rate of 24%, for the nine months ended September 30, 2020 to $338 million, with an effective tax rate of 23%, for the nine months ended September 30, 2021, a decrease of $83 million.
The decrease was primarily due to lower loss before income taxes between periods.
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Sources and Uses of Cash
−Removed: Our primary sources of liquidity have been through net cash provided by operating activities including proceeds from derivatives, as well as borrowings under the Credit Facility, issuances of debt and equity securities, and additional contributions from our asset sales program, including our drilling partnership .
+Added: Our primary sources of liquidity have been through net cash provided by operating activities including borrowings under the Prior Credit Facility, issuances of debt and equity securities, and additional contributions from our asset sales program, including our drilling partnership .
Our primary use of cash has been for the exploration, development, and acquisition of oil and natural gas properties.
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For information about the impacts of COVID-19 on our capital resources and liquidity, see “—COVID-19 Pandemic.”
−Removed: Based on strip prices as of June 30, 2021, we believe that net cash provided by operating activities, distributions from unconsolidated affiliate, available borrowings under the Credit Facility, capital market transactions and the effects of the drilling partnership will be sufficient to meet our cash requirements, including normal operating needs, debt service obligations, capital expenditures, and commitments and contingencies for at least the next 12 months.
+Added: Based on strip prices as of September 30, 2021, we believe that net cash provided by operating activities, distributions from unconsolidated affiliate, available borrowings under the Credit Facility, capital market transactions and the effects of the drilling partnership will be sufficient to meet our cash requirements, including normal operating needs, debt service obligations, capital expenditures, and commitments and contingencies for at least the next 12 months.
2021 Capital Budget and Capital Spending
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We do not include acquisitions in our capital budget.
−Removed: We periodically review our capital expenditures and adjust our budget and its allocation based on commodity prices, takeaway constraints, operating cash flow and liquidity, and on July 28, 2021, we announced a $22.5 million increase for our leasehold expenditures to $65
−Removed: million for 2021 to reflect accelerated leasing activity focused on organically expanding our core liquids rich inventory.
+Added: We periodically review our capital expenditures and adjust our budget and its allocation based on commodity prices, takeaway constraints, operating cash flow and liquidity, and on July 28, 2021, we announced a $22.5 million increase for our leasehold expenditures for 2021 to reflect accelerated leasing activity focused on organically expanding our core liquids rich inventory.
As a result, our total net capital budget for 2021 was revised to $657.5 million .
−Removed: For the six months ended June 30, 2021, our total consolidated capital expenditures, which excludes QL’s working interest share of such costs, were approximately $341 million, including drilling and completion costs of $307 million, leasehold acquisitions of $31 million, and other capital expenditures of $3 million.
−Removed: The following table summarizes our cash flows for the six months ended June 30, 2020 and 2021:
−Removed: Six Months Ended June 30,
+Added: For the nine months ended September 30, 2021, our total consolidated capital expenditures, which excludes QL’s working interest share of such costs, were approximately $542 million, including drilling and completion costs of $475 million, leasehold acquisitions of $48 million, and other capital expenditures of $19 million.
+Added: The following table summarizes our cash flows for the nine months ended September 30, 2020 and 2021:
+Added: Nine Months Ended September 30,
Net cash provided by operating activities
Net cash used in investing activities
−Removed: Net cash provided by (used in) financing activities
+Added: Net cash used in financing activities
Net increase in cash and cash equivalents
Operating Activities.
−Removed: Net cash provided by operating activities was $317 million and $872 million for the six months ended June 30, 2020 and 2021, respectively.
+Added: Net cash provided by operating activities was $493 million and $1.2 billion for the nine months ended September 30, 2020 and 2021, respectively.
Net cash provided by operating activities increased primarily due to increases in commodity prices both before and after the effects of settled commodity derivatives, decreased net marketing expense as well as decreased cash utilized for working capital, partially offset by increases in gathering, compression and transportation costs and production and ad valorem taxes between periods.
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Investing Activities.
−Removed: Cash flows used in investing activities decreased from $450 million for the six months ended June 30, 2020 to $303 million for the six months ended June 30, 2021, primarily due to a decrease in capital expenditures of $269 million during the six months ended June 30, 2020 as compared to the same period in 2021, which was partially offset by $125 million in settlement of the water earnout impacting the six months ended June 30, 2020.
+Added: Cash flows used in investing activities increased from $384 million for the nine months ended September 30, 2020 to $505 million for the nine months ended September 30, 2021 , primarily due to $216 million in proceeds from the VPP and $125 million in settlement of the water earnout impacting the nine months ended September 30, 2020, partially offset by a decrease in capital expenditures of $215 million during the nine months ended September 30, 2021 as compared to the same period in 2020.
Financing Activities .
−Removed: Net cash flows provided by (used in) financing activities changed from $133 million net cash flows provided by financing activities for the six months ended June 30, 2020 to $565 million net cash used in financing activities for the six months ended June 30, 2021.
−Removed: During the six months ended June 30, 2021, we issued $500 million aggregate principal amount of 2026 Notes, $700 million aggregate principal amount of 2029 Notes and $600 million aggregate principal amount of 2030 Notes (net of $22 million of aggregate debt issuance costs), of which proceeds were used to (i) redeem $661 million aggregate principal amount of our 2022 Notes, which were fully retired, (ii) redeem $574 million of our 2023 Notes, which were fully retired and (iii) partially repay borrowings on our Credit Facility.
−Removed: Also, during the six months ended June 30, 2021, we completed the January Share Offering and the May Share Offering and used the proceeds and approximately $89 million of borrowings under the Credit Facility to repurchase $206 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions.
−Removed: Additionally, during the six months ended June 30, 2021, we received a $51 million payment from Martica and distributed $46 million to the noncontrolling interest in Martica.
−Removed: Further, we repaid the remaining outstanding balance on our Credit Facility with net cash provided by operating activities.
−Removed: During the six months ended June 30, 2020, we repurchased (i) $619 million principal amount of debt at a weighted average discount of 19% for $497 million of cash and (ii) $43 million of our common stock at weighted average price of $1.54 per share.
+Added: Net cash flows used in financing activities increased from $108 million for the nine months ended September 30, 2020 to $679 million for the nine months ended September 30, 2021.
+Added: During the nine months ended September 30, 2021, we issued $500 million aggregate principal amount of 2026 Notes, $700 million aggregate principal amount of 2029 Notes and $600 million aggregate principal amount of 2030 Notes (net of $23 million of aggregate debt issuance costs), of which proceeds were used to (i) redeem $661 million of our 2022 Notes, which were fully retired, (ii) redeem $574 million of our 2023 Notes, which were fully retired (ii) redeem $175 million of our 2026 Notes and (iv) partially repay borrowings on our Prior Credit Facility.
+Added: Also, during the nine months ended September 30, 2021, we completed the January Share Offering and the May Share Offering and used the proceeds and approximately $89 million of borrowings under the Prior Credit Facility to repurchase $206 million aggregate principal amount of the 2026 Convertible Notes in privately negotiated transactions.
+Added: Additionally, during the nine months ended September 30, 2021, we received a $51 million payment from Martica and distributed $65 million to the noncontrolling interest in Martica.
+Added: During the nine months ended September 30, 2020, we repurchased (i) $1.1 billion principal amount of debt at a weighted average discount of 17% for $900 million of cash and (ii) $43 million of our common stock at weighted average price of $1.54 per share.
Debt Agreements
Senior Secured Revolving Credit Facility
−Removed: Our Credit Facility is with a consortium of bank lenders.
−Removed: Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of our assets and are subject to regular redeterminations.
−Removed: The borrowing base was re-affirmed
−Removed: at $2.85 billion in the semi-annual redetermination in April 2021.
−Removed: The next redetermination of the borrowing base is scheduled to occur in October 2021.
−Removed: The Credit Facility is scheduled to mature on October 26, 2022.
−Removed: As of June 30, 2021, we had no borrowings and had $742 million of letters of credit outstanding under the Credit Facility.
−Removed: We were in compliance with the applicable covenants and ratios as of December 31, 2020 and June 30, 2021.
−Removed: As of June 30, 2021, our current ratio was 3.0 to 1.0 and our interest coverage ratio was 13.8 to 1.0.
−Removed: For more information on the terms, conditions, and restrictions under the Credit Facility, please refer to the 2020 Form 10-K.
+Added: Antero Resources has a senior secured revolving credit facility with a consortium of bank lenders.
+Added: On October 26, 2021, Antero Resources entered into an amended and restated senior secured revolving credit facility.
+Added: References to the (i) “Prior Credit Facility” refers to the senior secured revolving credit facility in effect for periods before October 26, 2021, (ii) “New Credit Facility” refers to the senior secured revolving credit facility in effect on or after October 26, 2021 and (ii) “Credit Facility” refers to Prior Credit Facility and New Credit Facility collectively.
+Added: Borrowings under the New Credit Facility are subject to borrowing base limitations based on the collateral value of our assets and are subject to regular semi-annual redeterminations.
+Added: As of October 26, 2021, the borrowing base was $3.5 billion and lender commitments were $1.5 billion.
+Added: The next redetermination of the borrowing base is scheduled to occur in April 2022.
+Added: The maturity date of the New Credit Facility is the earlier of (i) October 26, 2026 and (ii) the date that is 180 days prior to the earliest stated redemption date of any series of Antero’s senior notes.
+Added: As of September 30, 2021, we had $98 million borrowings and had $742 million of letters of credit outstanding under the Prior Credit Facility.
+Added: The New Credit Facility provides for borrowing under either an Adjusted Term Secured Overnight Financing Rate (“SOFR”), an Adjusted Daily Simple SOFR or an Alternate Base Rate (each as defined in the New Credit Facility).
+Added: The New Credit Facility contains restrictive covenants that may limit our ability to, among other things:
+Added: ● incur additional indebtedness;
+Added: ● sell assets;
+Added: ● make loans to others;
+Added: ● make investments;
+Added: ● enter into mergers;
+Added: ● pay dividends;
+Added: ● hedge future production;
+Added: ● incur liens;
+Added: ● engage in certain other transactions without the prior consent of the lenders.
+Added: The New Credit Facility also requires us to maintain the following financial ratios (subject to certain exceptions):
+Added: The current ratio and the leverage ratio shall be tested quarterly commencing with the quarter ending December 31, 2021.
+Added: ● a minimum consolidated current ratio of 1.0 to 1.0 at the end of each fiscal quarter;
+Added: ● a maximum leverage ratio of total debt to EBITDAX for the trailing four quarter period of 4.00 to 1.00 at the end of each fiscal quarter.
+Added: We were in compliance with the applicable covenants and ratios as of December 31, 2020 and September 30, 2021 under the Prior Credit Facility.
+Added: As of September 30, 2021, our current ratio was 2.7 to 1.0 and our interest coverage ratio was 15.0 to 1.0.
+Added: See Note 7—Long Term Debt to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for more information on our Credit Facility.
Senior Notes and Convertible Senior Notes
−Removed: Please refer to Note 7—Long Term Debt to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and to “Item 7.
+Added: See Note 7—Long Term Debt to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and to “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2020 Form 10-K for information on our senior notes.
Non-GAAP Financial Measures
−Removed: Adjusted EBITDAX is a non-GAAP financial measure that we define as net income (loss), including noncontrolling interests, before interest expense, interest income, gains or losses from commodity derivatives, amortization of deferred revenue, gain on sale of assets but including net cash receipts or payments on derivative instruments included in derivative gains or losses other than payments from derivative monetizations, income taxes, impairments, depletion, depreciation, amortization, and accretion, exploration expense, equity-based compensation, gain (loss) on early extinguishment of debt, contract termination and rig stacking costs, equity in earnings (loss) of unconsolidated affiliate, transaction fees and loss on convertible note equitization.
+Added: Adjusted EBITDAX is a non-GAAP financial measure that we define as net income (loss), including noncontrolling interests, before interest expense, interest income, gains or losses from commodity derivatives, amortization of deferred revenue, gain on sale of assets but including net cash receipts or payments on derivative instruments included in derivative gains or losses other than proceeds from and payments for derivative monetizations, income taxes, impairments, depletion, depreciation, amortization, and accretion, exploration expense, equity-based compensation, gain (loss) on early extinguishment of debt, contract termination and rig stacking costs, equity in earnings (loss) of unconsolidated affiliate, transaction fees and loss on convertible note equitization.
Adjusted EBITDAX as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP.
8 unchanged sentences
There are significant limitations to using Adjusted EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different methods of calculating Adjusted EBITDAX reported by different companies.
−Removed: The following table represents a reconciliation of our net income (loss), including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of our Adjusted EBITDAX to net cash provided by operating activities per our unaudited condensed consolidated statements of cash flows, in each case, for the three and six months ended June 30, 2020 and 2021 (in thousands).
+Added: The following table represents a reconciliation of our net income (loss), including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of our Adjusted EBITDAX to net cash provided by operating activities per our unaudited condensed consolidated statements of cash flows, in each case, for the three and nine months ended September 30, 2020 and 2021 (in thousands).
Adjusted EBITDAX also excludes the noncontrolling interests in Martica and these adjustments are disclosed in the table below as Martica related adjustments.
−Removed: Three Months Ended June 30,
−Removed: Six Months Ended June 30,
+Added: Three Months Ended September 30,
+Added: Nine Months Ended September 30,
Reconciliation of net loss to Adjusted EBITDAX:
Net loss and comprehensive loss attributable to Antero Resources Corporation
−Removed: Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests
+Added: Net loss and comprehensive loss attributable to noncontrolling interests
Unrealized commodity derivative losses
−Removed: Payments for derivative monetizations
+Added: Payments for (proceeds from) derivative monetizations
Amortization of deferred revenue, VPP
−Removed: Gain on sale of assets
+Added: Loss on sale of assets
Interest expense, net
20 unchanged sentences
Transaction expense
−Removed: Payments for derivative monetizations
+Added: Proceeds from (payments for) derivative monetizations
Net cash provided by operating activities
14 unchanged sentences
Under GAAP for successful efforts accounting, if the carrying amount exceeds the estimated undiscounted future net cash flows (measured using future prices), we estimate the fair value of our proved properties and record an impairment charge for any excess of the carrying amount of the properties over the estimated fair value of the properties.
−Removed: Based on future prices as of June 30, 2021, the estimated undiscounted future net cash flows exceeded the carrying amount and no further evaluation was required.
−Removed: We have not recorded any impairment expenses associated with our proved properties during the three and six months ended June 30, 2020 and 2021.
+Added: Based on future prices as of September 30, 2021, the estimated undiscounted future net cash flows exceeded the carrying amount and no further evaluation was required.
+Added: We have not recorded any impairment expenses associated with our proved properties during the three and nine months ended September 30, 2020 and 2021.
Estimated undiscounted future net cash flows are very sensitive to commodity price swings at current commodity price levels and a relatively small decline in prices could result in the carrying amount exceeding the estimated undiscounted future net cash flows at the end of a future reporting period, which would require us to further evaluate if an impairment charge would be necessary.
−Removed: If future prices decline from June 30, 2021, the fair value of our properties may be below their carrying amounts and an impairment charge may be necessary.
+Added: If future prices decline from September 30, 2021, the fair value of our properties may be below their carrying amounts and an impairment charge may be necessary.
We are unable, however, to predict future commodity prices with any reasonable certainty.
New Accounting Pronouncements
−Removed: Please refer to Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements for information on new accounting pronouncements.
+Added: See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements for information on new accounting pronouncements.
Off-Balance Sheet Arrangements
−Removed: As of June 30, 2021, we did not have any off balance sheet arrangements other than contractual commitments for firm transportation, gas processing and fractionation, gathering, and compression services and land payment obligations.
−Removed: Please refer to Note 13—Commitments to the unaudited condensed consolidated financial statements for further information on off balance sheet arrangements.
+Added: As of September 30, 2021, we did not have any off balance sheet arrangements other than contractual commitments for firm transportation, gas processing and fractionation, gathering, and compression services and land payment obligations.
+Added: See Note 13—Commitments to the unaudited condensed consolidated financial statements for further information on off balance sheet arrangements.
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.