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Commitments
12 Months Ended
Dec. 31, 2016
Commitments  
Commitments

(14) Commitments

The following is a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, as well as leases that have remaining lease terms in excess of one year as of December 31, 2016 (in millions).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Firm
transportation

  

Processing,
gathering and
compression

  

Drilling rigs and completion
services

  

Office and equipment

  

 

 

 

 

(a)

 

(b)

 

(c)

 

(d)

 

Total

 

2017

 

$

626

 

 

373

 

 

109

 

 

14

 

 

1,122

 

2018

 

 

935

 

 

289

 

 

105

 

 

13

 

 

1,342

 

2019

 

 

1,086

 

 

243

 

 

64

 

 

10

 

 

1,403

 

2020

 

 

1,105

 

 

241

 

 

 —

 

 

8

 

 

1,354

 

2021

 

 

1,084

 

 

223

 

 

 —

 

 

8

 

 

1,315

 

Thereafter

 

 

10,551

 

 

1,000

 

 

 —

 

 

25

 

 

11,576

 

Total

 

$

15,387

 

 

2,369

 

 

278

 

 

78

 

 

18,112

 

 

(a) Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market.  These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates, or pay for any deficiencies at specified reservation fee rates.  The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(b) Processing, Gathering, and Compression Service Commitments

The Company has entered into various long‑term gas processing agreements for certain of its production that will allow it to realize the value of its NGLs.  The minimum payment obligations under the agreements are presented in the table.

The Company has various gathering and compression service agreements with third parties that provide for payments based on volumes gathered or compressed.  The minimum payment obligations under these agreements are presented in the table.

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.  The values in the table also include Antero Midstream’s commitments for the construction of its advanced waste water treatment complex.  The table does not include intracompany commitments.

(c) Drilling Rig Service Commitments

The Company has obligations under agreements with service providers to procure drilling rigs and completion services.  The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the consolidated financial statements its proportionate share of costs based on its working interest.

(d) Office and Equipment Leases

The Company leases various office space and equipment, as well as field equipment, under capital and operating lease arrangements.  Rental expense under operating leases was $10 million, $9 million, and $9 million for the years ended December 31, 2014,  2015, and 2016, respectively.