Equity Method Investments

12 Months Ended

Dec. 31, 2021

Equity Method Investments.

Equity Method Investments

(6) Equity Method Investment

(a) Summary of Equity Method Investment

As of December 31, 2021, Antero owned approximately 29.1% of Antero Midstream’s common stock, which is reflected in Antero’s consolidated financial statements using the equity method of accounting.

The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands):

Balances as of December 31, 2019	$	1,055,177
Equity in loss of unconsolidated affiliate		(62,660)
Dividends from unconsolidated affiliate		(171,022)
Impairment (1)		(610,632)
Elimination of intercompany profit		44,219
Balance as of December 31, 2020 (2)		255,082
Equity in earnings of unconsolidated affiliate		77,085
Dividends from unconsolidated affiliate		(136,609)
Elimination of intercompany profit		36,841
Balance as of December 31, 2021 (2)	$	232,399

(1) Other-than-temporary impairment of the Company’s investment in Antero Midstream to reduce the carrying value of such investment to fair value, which was based on the quoted market share price of Antero Midstream as of March 31, 2020 (Level 1).

(2) The fair value of the Company’s investment in Antero Midstream as of December 31, 2020 and 2021 was $1.1 billion and $1.3 billion, respectively, based on the quoted market share price of Antero Midstream.

(b) Summarized Financial Information of Antero Midstream

The tables set forth below present summarized financial information of Antero Midstream (in thousands).

Balance Sheet

	December 31,
	2020		2021
Current assets	$	93,931		83,804
Noncurrent assets		5,516,981		5,460,197
Total assets	$	5,610,912		5,544,001
Current liabilities	$	94,005		114,009
Noncurrent liabilities		3,098,621		3,143,294
Stockholders' equity		2,418,286		2,286,698
Total liabilities and stockholders' equity	$	5,610,912		5,544,001

Statement of Operations

	Year Ended December 31,
	2020		2021
Revenues	$	900,719		898,202
Operating expenses		1,018,357		342,875
Income (loss) from operations		(117,638)		555,327
Net income (loss)	$	(122,527)		331,617