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Leases (Tables)

12 Months Ended

Dec. 31, 2023

Summary of supplemental balance sheet information related to leases

The Company’s lease assets and liabilities consisted of the following items (in thousands):


				December 31,
Leases		Balance Sheet Classification		2022			2023
Operating Leases
Operating lease right-of-use assets:
Processing plants		Operating lease right-of-use assets		$	1,849,116			1,611,903
Drilling rigs and completion services		Operating lease right-of-use assets			85,405			32,187
Gas gathering lines and compressor stations ⁽¹⁾		Operating lease right-of-use assets			1,463,756			1,283,668
Office space		Operating lease right-of-use assets			41,822			37,706
Vehicles		Operating lease right-of-use assets			756			—
Other office and field equipment		Operating lease right-of-use assets			3,476			416
Total operating lease right-of-use assets				$	3,444,331			2,965,880
Operating lease liabilities:
Short-term operating lease liabilities		Short-term lease liabilities		$	556,137			538,954
Long-term operating lease liabilities		Long-term lease liabilities			2,888,194			2,425,785
Total operating lease liabilities				$	3,444,331			2,964,739

Finance Leases
Finance lease right-of-use assets:
Vehicles		Other property and equipment		$	2,159			3,771
Total finance lease right-of-use assets ⁽²⁾				$	2,159			3,771
Finance lease liabilities:
Short-term finance lease liabilities		Short-term lease liabilities		$	499			1,106
Long-term finance lease liabilities		Long-term lease liabilities			1,660			2,665
Total finance lease liabilities				$	2,159			3,771

(1)	Gas gathering lines and compressor stations includes $1.4 billion and $1.3 billion related to Antero Midstream as of December 31, 2022 and 2023, respectively. See “—Related party lease disclosure” for additional discussion.

(2)	Financing lease assets are recorded net of accumulated amortization of $1 million as of December 31, 2022 and 2023.

Summary of costs associated with operating leases and finance leases

Costs associated with operating and finance leases were included in the consolidated financial statements as follows (in thousands):


						Year Ended December 31,
Cost		Classification		Location		2021			2022			2023
Operating lease cost		Statement of operations		Gathering, compression, processing and transportation		$	1,518,305			1,481,022			1,623,268
Operating lease cost		Statement of operations		General and administrative			10,901			11,472			12,121
Operating lease cost		Statement of operations		Contract termination			4,213			12,000			4,227
Operating lease cost		Statement of operations		Lease operating			142			177			84
Operating lease cost		Balance sheet		Proved properties ⁽¹⁾			103,741			123,756			160,638
Total operating lease cost						$	1,637,302			1,628,427			1,800,338

Finance lease cost:
Amortization of right-of-use assets		Statement of operations		Depletion, depreciation and amortization		$	522			351			1,530
Interest on lease liabilities		Statement of operations		Interest expense			352			193			597
Total finance lease cost						$	874			544			2,127

Short-term lease payments						$	86,039			141,470			137,781

(1)	Capitalized costs related to drilling and completion activities.

Summary of supplemental cash flow information related to leases

The following table presents the Company’s supplemental cash flow information related to leases (in thousands):


	Year Ended December 31,
	2021			2022			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,352,941			1,380,968			1,366,677
Operating cash flows from finance leases		352			193			597
Investing cash flows from operating leases		88,910			103,244			126,483
Financing cash flows from finance leases		859			575			830

Noncash activities:
Right-of-use assets obtained in exchange for new operating lease obligations	$	437,045			366,194			76,797
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net ⁽¹⁾	$	702,512			154,101			(15,858)

(1)

During the year ended December 31, 2021, the weighted average discount rate for remeasured operating leases decreased from 14.4% as of December 31, 2020 to 5.0% as of December 31, 2021. During the year ended December 31, 2022, the weighted average discount rate for remeasured operating leases decreased from 5.6% as of December 31, 2021 to 5.2% as of December 31, 2022. During the year ended December 31, 2023, the weighted average discount rate for remeasured operating leases increased from 5.1% as of December 31, 2022 to 6.5% as of December 31, 2023.

Summary of maturities of operating lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of December 31, 2022 (in thousands):


		Operating Leases			Financing Leases			Total
2024		$	699,335			1,628			700,963
2025			608,160			1,585			609,745
2026			555,915			1,230			557,145
2027			457,782			197			457,979
2028			379,922			23			379,945
Thereafter			872,055			9			872,064
Total lease payments			3,573,169			4,672			3,577,841
Less: imputed interest			(608,430)			(901)			(609,331)
Total		$	2,964,739			3,771			2,968,510

Summary of maturities of financing lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of December 31, 2022 (in thousands):


		Operating Leases			Financing Leases			Total
2024		$	699,335			1,628			700,963
2025			608,160			1,585			609,745
2026			555,915			1,230			557,145
2027			457,782			197			457,979
2028			379,922			23			379,945
Thereafter			872,055			9			872,064
Total lease payments			3,573,169			4,672			3,577,841
Less: imputed interest			(608,430)			(901)			(609,331)
Total		$	2,964,739			3,771			2,968,510

Summary of weighted-average remaining lease term and discount rate


		December 31, 2022				December 31, 2023
		Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term		7.2 years		3.5 years		6.5 years		3.0 years
Weighted average discount rate		5.3	%	7.4	%	5.9	%	8.3	%