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Published: 2023-10-25 16:48:05 ET
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EX-99.1 2 tm2329101d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

Antero Midstream Announces Third Quarter 2023 Financial and Operating Results

 

Denver, Colorado, October 25, 2023—Antero Midstream Corporation (NYSE: AM) (“Antero Midstream” or the “Company”) today announced its third quarter 2023 financial and operating results. The relevant unaudited condensed consolidated financial statements are included in Antero Midstream’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.

 

Third Quarter 2023 Highlights:

 

·Gathering and compression volumes increased by 13% and 17%, respectively, compared to the prior year quarter
·Net Income was $98 million, or $0.20 per diluted share, an 18% per share increase compared to the prior year quarter
·Adjusted Net Income was $111 million, or $0.23 per diluted share, a 15% per share increase compared to the prior year quarter (non-GAAP measure)
·Adjusted EBITDA was $251 million, a 12% increase compared to the prior year quarter and 3% sequentially (non-GAAP measure)
·Capital expenditures were $57 million
·Free Cash Flow before dividends was $138 million and Free Cash Flow after dividends was $30 million (non-GAAP measures)
·Leverage declined to 3.4x at September 30, 2023 (non-GAAP measure)

 

Full Year 2023 Guidance Update:

 

·Increasing Adjusted EBITDA by $10 million at the midpoint to a range of $970 to $990 million (non-GAAP measure)
·Increasing Free Cash Flow after dividends by $5 million at the midpoint to a range of $135 to $155 million (non-GAAP measures)

 

Paul Rady, Chairman and CEO said, “During the third quarter, Antero Midstream delivered double-digit year-over-year throughput growth that set company records. The combination of well outperformance, acceleration of wells serviced by the fresh water delivery system, and operational success have resulted in year-to-date results that have exceeded expectations. Our organic growth strategy, supplemented by high-visibility, accretive acquisitions over the last year, has resulted in increased scale at Antero Midstream while maintaining a strong balance sheet and liquidity position.”

 

Brendan Krueger, CFO of Antero Midstream, said “The third quarter marked the fifth consecutive quarter that Antero Midstream has generated Free Cash Flow after dividends. Our disciplined approach utilizing Free Cash Flow after dividends to reduce debt has resulted in over $100 million of absolute debt reduction year-to-date and leverage declining to 3.4x.”

 

Mr. Krueger further added, “Looking ahead to 2024, we expect this Free Cash Flow to continue to increase compared to 2023, resulting in further absolute debt reduction and declining leverage towards our 3.0x target. This positions Antero Midstream to evaluate further return of capital to our shareholders in 2024.”

 

For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Leverage, and Free Cash Flow before and after dividends please see “Non-GAAP Financial Measures.”

 

 

 

 

2023 Guidance Update

 

The following is a summary of Antero Midstream’s updated 2023 guidance ($ in millions):

 

   Twelve Months
Ended December
31, 2023
   Change vs.
Prior
Guidance
   Change vs.
Initial
Guidance
 
   Low   High   (At midpoint)   (At midpoint) 
Net Income   $360   $380   $(5)  $10 
Adjusted Net Income    415    435    (5)   10 
Adjusted EBITDA    970    990    10    30 
Capital Expenditures    180    200        (15)
Interest Expense    210    220    5    5 
Free Cash Flow Before Dividends    565    585    5    40 
Total Dividends    430    430         
Free Cash Flow After Dividends    135    155    5    40 

 

Third Quarter 2023 Financial Results

 

Low pressure gathering volumes for the third quarter of 2023 averaged 3,323 MMcf/d, a 13% increase as compared to the prior year quarter. Low pressure gathering volumes subject to the growth incentive fee were in excess of the threshold target of 2,900 MMcf/d, resulting in a $12 million rebate to Antero Resources. Compression volumes for the third quarter of 2023 averaged 3,271 MMcf/d, a 17% increase compared to the prior year quarter. High pressure gathering volumes averaged 2,935 MMcf/d, a 5% increase compared to the prior year quarter. Fresh water delivery volumes averaged 106 MBbl/d during the quarter, a 3% increase compared to the prior year.

 

Gross processing volumes from the processing and fractionation joint venture with MLPX, LP (“Joint Venture”) averaged 1,616 MMcf/d for the third quarter of 2023, a 10% increase compared to the prior year quarter. Joint Venture processing capacity was approximately 100% utilized during the quarter based on nameplate processing capacity of 1.6 Bcf/d. Gross Joint Venture fractionation volumes averaged 40 MBbl/d, an 11% increase compared to the prior year quarter. Joint Venture fractionation capacity was also 100% utilized during the quarter based on nameplate fractionation capacity of 40 MBbl/d.

 

  

Three Months Ended

September 30,

     
Average Daily Volumes:  2022   2023   % Change 
Low Pressure Gathering (MMcf/d)    2,952    3,323    13%
Compression (MMcf/d)    2,794    3,271    17%
High Pressure Gathering (MMcf/d)    2,802    2,935    5%
Fresh Water Delivery (MBbl/d)    103    106    3%
Gross Joint Venture Processing (MMcf/d)    1,474    1,616    10%
Gross Joint Venture Fractionation (MBbl/d)    36    40    11%

 

For the three months ended September 30, 2023, revenues were $264 million, comprised of $206 million from the Gathering and Processing segment and $58 million from the Water Handling segment, net of $18 million of amortization of customer relationships. Water Handling revenues include $26 million from wastewater handling and high rate water transfer services.

 

Direct operating expenses for the Gathering and Processing and Water Handling segments were $24 million and $28 million, respectively. Water Handling operating expenses include $23 million from wastewater handling and high rate water transfer services. General and administrative expenses excluding equity-based compensation were $9 million during the third quarter of 2023. Total operating expenses during the third quarter of 2023 included $31 million of depreciation and $8 million of equity-based compensation expense.

 

Net Income was $98 million, or $0.20 per diluted share, an 18% per share increase compared to the prior year quarter. Net Income adjusted for amortization of customer relationships and loss (gain) on asset sale, net of tax effects of reconciling items, or Adjusted Net Income, was $111 million. Adjusted Net Income was $0.23 per share, a 15% per share increase compared to the prior year quarter.

 

 

 

 

The following table reconciles Net Income to Adjusted Net Income (in thousands):

 

  

Three Months Ended

September 30,

 
   2022   2023 
Net Income   $84,014    97,820 
Amortization of customer relationships    17,668    17,668 
Loss (gain) on asset sale    (2,092)   467 
Tax effect of reconciling items(1)    (4,012)   (4,663)
Adjusted Net Income   $95,578    111,292 

 

(1)The statutory tax rates for the three months ended September 30, 2022 and 2023 were 25.8% and 25.7%, respectively.

 

Adjusted EBITDA was $251 million, a 12% increase compared to the prior year quarter. Interest expense was $55 million, a 15% increase compared to the prior year quarter. Capital expenditures were $57 million, a 54% increase compared to the prior year quarter. Free Cash Flow before dividends was $138 million, in line with the prior year quarter. Free Cash Flow after dividends was $30 million, in line with the prior year quarter.

 

The following table reconciles Net Income to Adjusted EBITDA and Free Cash Flow before and after dividends (in thousands):

 

  

Three Months Ended

September 30,

 
   2022   2023 
Net Income   $84,014    97,820 
Interest expense, net    47,835    55,233 
Income tax expense    30,332    36,657 
Depreciation expense    34,206    30,745 
Amortization of customer relationships    17,668    17,668 
Loss (gain) on asset sale    (2,092)   467 
Accretion of asset retirement obligations    50    45 
Equity-based compensation    5,553    8,349 
Equity in earnings of unconsolidated affiliates    (24,411)   (27,397)
Distributions from unconsolidated affiliates    29,965    31,330 
Adjusted EBITDA   $223,120    250,917 
Interest expense, net    (47,835)   (55,233)
Capital expenditures (accrual-based)    (37,168)   (57,271)
Free Cash Flow before dividends   $138,117    138,413 
Dividends declared (accrual-based)    (107,659)   (107,936)
Free Cash Flow after dividends   $30,458    30,477 

 

The following table reconciles net cash provided by operating activities to Free Cash Flow before and after dividends (in thousands):

 

  

Three Months Ended

September 30,

 
   2022   2023 
Net cash provided by operating activities   $176,795    202,437 
Amortization of deferred financing costs    (1,440)   (1,506)
Settlement of asset retirement obligations    479    174 
Changes in working capital    (549)   (5,421)
Capital expenditures (accrual-based)    (37,168)   (57,271)
Free Cash Flow before dividends   $138,117    138,413 
Dividends declared (accrual-based)    (107,659)   (107,936)
Free Cash Flow after dividends   $30,458    30,477 

 

 

 

 

Third Quarter 2023 Operating Update

 

Gathering and Processing During the third quarter of 2023, Antero Midstream connected 20 wells to its gathering system.

 

Water HandlingAntero Midstream’s water delivery systems serviced 15 well completions during the third quarter of 2023.

 

Capital Investments

 

Accrued capital expenditures were $57 million during the third quarter of 2023. The company invested $42 million in gathering and compression and $15 million in water infrastructure primarily in the liquids-rich midstream corridor of the Marcellus Shale.

 

Conference Call

 

A conference call is scheduled on Thursday, October 26, 2023 at 10:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow the discussion of the results. To participate in the call, dial in at 877-407-9126 (U.S.), or 201-493-6751 (International) and reference “Antero Midstream”. A telephone replay of the call will be available until Thursday, November 2, 2023 at 10:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13740754. To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com. The webcast will be archived for replay until Thursday, November 2, 2023 at 10:00 am MT.

 

Presentation

 

An updated presentation will be posted to the Company's website before the conference call. The presentation can be found at www.anteromidstream.com on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference into this press release.

 

Non-GAAP Financial Measures and Definitions

 

Antero Midstream uses certain non-GAAP financial measures. Antero Midstream defines Adjusted Net Income as Net Income plus amortization of customer relationships and loss (gain) on asset sale, net of tax effect of reconciling items. Antero Midstream uses Adjusted Net Income to assess the operating performance of its assets. Antero Midstream defines Adjusted EBITDA as Net Income plus interest expense, net, income tax expense, depreciation expense, amortization of customer relationships, loss (gain) on asset sale, loss on settlement of asset retirement obligations, accretion of asset retirement obligations, and equity-based compensation expense, excluding equity in earnings of unconsolidated affiliates, plus distributions from unconsolidated affiliates.

 

Antero Midstream uses Adjusted EBITDA to assess:

 

*the financial performance of Antero Midstream’s assets, without regard to financing methods, capital structure or historical cost basis;
*its operating performance and return on capital as compared to other publicly traded companies in the midstream energy sector, without regard to financing or capital structure; and
*the viability of acquisitions and other capital expenditure projects.

 

Antero Midstream defines Free Cash Flow before dividends as Adjusted EBITDA less interest expense, net and accrual-based capital expenditures. Capital expenditures include additions to gathering systems and facilities, additions to water handling systems, and investments in unconsolidated affiliates. Capital expenditures exclude acquisitions. Free Cash Flow after dividends is defined as Free Cash Flow before dividends less accrual-based dividends declared for the quarter. Antero Midstream uses Free Cash Flow before and after dividends as a performance metric to compare the cash generating performance of Antero Midstream from period to period.

 

Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow before and after dividends are non-GAAP financial measures. The GAAP measure most directly comparable to these measures is Net Income. Such non-GAAP financial measures should not be considered as alternatives to the GAAP measures of Net Income and cash flows provided by (used in) operating activities. The presentations of such measures are not made in accordance with GAAP and have important limitations as analytical tools because they include some, but not all, items that affect Net Income and cash flows provided by (used in) operating activities. You should not consider any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP. Antero Midstream’s definitions of such measures may not be comparable to similarly titled measures of other companies.

 

 

 

 

The following table reconciles cash paid for capital expenditures and accrued capital expenditures during the period (in thousands):

 

  

Three Months Ended

September 30,

 
   2022   2023 
Capital expenditures (as reported on a cash basis)   $57,120    45,286 
Change in accrued capital costs    (19,952)   11,985 
Capital expenditures (accrual basis)   $37,168    57,271 

 

Antero Midstream defines Net Debt as consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash and cash equivalents. Antero Midstream views Net Debt as an important indicator in evaluating Antero Midstream’s financial leverage. Antero Midstream defines leverage as Net Debt divided by Adjusted EBITDA for the last twelve months. The GAAP measure most directly comparable to Net Debt is total debt, excluding unamortized debt premiums and debt issuance costs.

 

The following table reconciles consolidated total debt to consolidated net debt, excluding debt premiums and issuance costs, (“Net Debt”) as used in this release (in thousands):

 

   September 30, 2023 
Bank credit facility   $676,400 
7.875% senior notes due 2026    550,000 
5.75% senior notes due 2027    650,000 
5.75% senior notes due 2028    650,000 
5.375% senior notes due 2029    750,000 
Consolidated total debt   $3,276,400 
Cash and cash equivalents     
Consolidated net debt   $3,276,400 

 

The following table reconciles Net Income to Adjusted EBITDA for the last twelve months as used in this release (in thousands):

 

  

Twelve Months Ended

September 30, 2023

 
Net Income   $354,132 
Interest expense, net    217,653 
Income tax expense    130,118 
Depreciation expense    134,755 
Amortization of customer relationships    70,672 
Accretion of asset retirement obligation    177 
Equity-based compensation    28,803 
Equity in earnings of unconsolidated affiliates    (101,576)
Distributions from unconsolidated affiliates    124,890 
Loss on settlement of asset retirement obligation    620 
Loss on asset sale    6,027 
Adjusted EBITDA   $966,271 

 

 

 

 

Antero Midstream has not included a reconciliation of Adjusted Net Income, Adjusted EBITDA and Free Cash Flow before and after dividends to the nearest GAAP financial measures because it cannot do so without unreasonable effort and any attempt to do so would be inherently imprecise. Antero Midstream is able to forecast the following reconciling items between such measures and Net Income (in millions):

 

   Twelve Months Ended
December 31, 2023
 
   Low   High 
Depreciation expense   $135   $145 
Equity based compensation expense    25    35 
Amortization of customer relationships    70    75 
Distributions from unconsolidated affiliates    125    135 

 

Antero Midstream Corporation is a Delaware corporation that owns, operates and develops midstream gathering, compression, processing and fractionation assets located in the Appalachian Basin, as well as integrated water assets that primarily service Antero Resources Corporation’s properties.

 

This release includes "forward-looking statements.” Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Midstream’s control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Midstream expects, believes or anticipates will or may occur in the future, such as statements regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management, Antero Midstream’s ability to realize the benefits of the Marcellus bolt-on acquisition, including the anticipated capital avoidance and synergies, Antero Midstream’s ability to execute its business plan and return capital to its stockholders, information regarding Antero Midstream’s return of capital policy, information regarding long-term financial and operating outlooks for Antero Midstream and Antero Resources, information regarding Antero Resources’ expected future growth and its ability to meet its drilling and development plan and the participation level of Antero Resources’ drilling partner, the impact on demand for Antero Midstream’s services as a result of incremental production by Antero Resources, and expectations regarding the amount and timing of litigation awards are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All forward-looking statements speak only as of the date of this release. Although Antero Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Midstream expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

 

Antero Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties incident to our business, most of which are difficult to predict and many of which are beyond Antero Midstream’s control. These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruptions, environmental risks, Antero Resources’ drilling and completion and other operating risks, regulatory changes or changes in law, the uncertainty inherent in projecting Antero Resources’ future rates of production, cash flows and access to capital, the timing of development expenditures, impacts of world health events, cybersecurity risks, the state of markets for and availability of verified quality carbon offsets and the other risks described under the heading "Item 1A. Risk Factors" in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.

 

For more information, contact Justin Agnew, Director – Finance and Investor Relations of Antero Midstream, at (303) 357-7269 or jagnew@anteroresources.com.

 

 

 

 

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

 

       (Unaudited) 
   December 31,   September 30, 
   2022   2023 
Assets                
Current assets:          
Accounts receivable–Antero Resources  $86,152    93,019 
Accounts receivable–third party   575    764 
Income tax receivable   940    940 
Other current assets   1,326    811 
Total current assets   88,993    95,534 
           
Property and equipment, net   3,751,431    3,782,554 
Investments in unconsolidated affiliates   652,767    635,954 
Customer relationships   1,286,103    1,233,099 
Other assets, net   12,026    11,570 
Total assets  $5,791,320    5,758,711 
           
Liabilities and Stockholders' Equity          
Current liabilities:          
Accounts payable–Antero Resources  $5,436    3,669 
Accounts payable–third party   22,865    24,683 
Accrued liabilities   72,715    81,628 
Other current liabilities   1,061    669 
Total current liabilities   102,077    110,649 
Long-term liabilities:          
Long-term debt   3,361,282    3,258,537 
Deferred income tax liability   131,215    228,636 
Other   4,428    9,749 
Total liabilities   3,599,002    3,607,571 
           
Stockholders' equity:          
Preferred stock, $0.01 par value: 100,000 authorized as of December 31, 2022 and September 30, 2023 Series A non-voting perpetual preferred stock; 12 designated and 10 issued and outstanding as of December 31, 2022 and September 30, 2023        
Common stock, $0.01 par value; 2,000,000 authorized; 478,497 and 479,678 issued and outstanding as of December 31, 2022 and September 30, 2023, respectively   4,785    4,797 
Additional paid-in capital   2,104,740    2,048,523 
Retained earnings   82,793    97,820 
Total stockholders' equity   2,192,318    2,151,140 
Total liabilities and stockholders' equity  $5,791,320    5,758,711 

 

 

 

 

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In thousands, except per share amounts)

 

   Three Months Ended September 30, 
   2022   2023 
Revenue:        
Gathering and compression–Antero Resources  $185,640    214,992 
Water handling–Antero Resources   61,411    66,132 
Water handling–third party   1,651    383 
Amortization of customer relationships   (17,668)   (17,668)
Total revenue   231,034    263,839 
Operating expenses:          
Direct operating   46,648    51,914 
General and administrative (including $5,553 and $8,349 of equity-based compensation in 2022 and 2023, respectively)   13,587    17,633 
Facility idling   865    722 
Depreciation   34,206    30,745 
Accretion of asset retirement obligations   50    45 
Loss (gain) on asset sale   (2,092)   467 
Total operating expenses   93,264    101,526 
Operating income   137,770    162,313 
Other income (expense):          
Interest expense, net   (47,835)   (55,233)
Equity in earnings of unconsolidated affiliates   24,411    27,397 
Total other expense   (23,424)   (27,836)
Income before income taxes   114,346    134,477 
Income tax expense   (30,332)   (36,657)
Net income and comprehensive income  $84,014    97,820 
           
Net income per share–basic  $0.18    0.20 
Net income per share–diluted  $0.17    0.20 
           
Weighted average common shares outstanding:          
Basic   478,460    479,676 
Diluted   480,318    482,840 

 

 

 

 

ANTERO MIDSTREAM CORPORATION

Selected Operating Data (Unaudited)

 

   Three Months Ended   Amount of     
   September 30,   Increase   Percentage 
   2022   2023   or Decrease   Change 
Operating Data:                    
Gathering—low pressure (MMcf)   271,569    305,676    34,107    13%
Compression (MMcf)   257,025    300,967    43,942    17%
Gathering—high pressure (MMcf)   257,757    269,986    12,229    5%
Fresh water delivery (MBbl)   9,515    9,750    235    2%
Other fluid handling (MBbl)   5,280    4,961    (319)   (6)%
Wells serviced by fresh water delivery   18    15    (3)   (17)%
Gathering—low pressure (MMcf/d)   2,952    3,323    371    13%
Compression (MMcf/d)   2,794    3,271    477    17%
Gathering—high pressure (MMcf/d)   2,802    2,935    133    5%
Fresh water delivery (MBbl/d)   103    106    3    3%
Other fluid handling (MBbl/d)   57    54    (3)   (5)%
Average Realized Fees:                    
Average gathering—low pressure fee ($/Mcf)  $0.34    0.35    0.01    3%
Average compression fee ($/Mcf)  $0.21    0.21        * 
Average gathering—high pressure fee ($/Mcf)  $0.21    0.21        * 
Average fresh water delivery fee ($/Bbl)  $4.04    4.20    0.16    4%
Joint Venture Operating Data:                    
Processing—Joint Venture (MMcf)   135,611    148,672    13,061    10%
Fractionation—Joint Venture (MBbl)   3,287    3,680    393    12%
Processing—Joint Venture (MMcf/d)   1,474    1,616    142    10%
Fractionation—Joint Venture (MBbl/d)   36    40    4    11%

 

 

* Not meaningful or applicable.

 

 

 

 

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Results of Segment Operations (Unaudited)

(In thousands)

 

   Three Months Ended September 30, 2023 
   Gathering and   Water       Consolidated 
   Processing   Handling   Unallocated   Total 
Revenues:                
Revenue–Antero Resources  $226,992    66,132        293,124 
Revenue–third-party       383        383 
Gathering—low pressure fee rebate   (12,000)           (12,000)
Amortization of customer relationships   (9,271)   (8,397)       (17,668)
Total revenues   205,721    58,118        263,839 
Operating expenses:                    
Direct operating   23,547    28,367        51,914 
General and administrative (excluding equity-based compensation)   5,797    2,383    1,104    9,284 
Equity-based compensation   6,443    1,656    250    8,349 
Facility idling       722        722 
Depreciation   17,710    13,035        30,745 
Accretion of asset retirement obligations       45        45 
Loss on asset sale   467            467 
Total operating expenses   53,964    46,208    1,354    101,526 
Operating income   151,757    11,910    (1,354)   162,313 
Other income (expense):                    
Interest expense, net           (55,233)   (55,233)
Equity in earnings of unconsolidated affiliates   27,397            27,397 
Total other income (expense)   27,397        (55,233)   (27,836)
Income before income taxes   179,154    11,910    (56,587)   134,477 
Income tax expense           (36,657)   (36,657)
Net income and comprehensive income  $179,154    11,910    (93,244)   97,820 
                     
Adjusted EBITDA                 $250,917 

 

 

 

 

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

   Nine Months Ended September 30, 
   2022   2023 
Cash flows provided by (used in) operating activities:          
Net income  $243,449    271,339 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation   98,181    101,174 
Accretion of asset retirement obligations   178    133 
Impairment of property and equipment   3,702     
Deferred income tax expense   84,798    97,422 
Equity-based compensation   14,026    23,175 
Equity in earnings of unconsolidated affiliates   (70,467)   (77,825)
Distributions from unconsolidated affiliates   90,470    94,900 
Amortization of customer relationships   53,004    53,004 
Amortization of deferred financing costs   4,268    4,463 
Settlement of asset retirement obligations   (1,395)   (869)
Loss on settlement of asset retirement obligations   539    620 
Loss (gain) on asset sale   (2,242)   6,036 
Changes in assets and liabilities:          
Accounts receivable–Antero Resources   5,596    (6,867)
Accounts receivable–third party   (822)   436 
Other current assets   242    (1,307)
Accounts payable–Antero Resources   (2,006)   (1,766)
Accounts payable–third party   12,228    1,214 
Accrued liabilities   (2,773)   5,460 
Net cash provided by operating activities   530,976    570,742 
Cash flows provided by (used in) investing activities:          
Additions to gathering systems and facilities   (190,407)   (90,175)
Additions to water handling systems   (45,747)   (39,850)
Investments in unconsolidated affiliates       (262)
Return of investment in unconsolidated affiliate   17,000     
Acquisition of gathering systems and facilities       (266)
Cash received in asset sales   4,026    1,071 
Change in other assets   (24)   (26)
Change in other liabilities   (804)    
Net cash used in investing activities   (215,956)   (129,508)
Cash flows provided by (used in) financing activities:          
Dividends to common stockholders   (325,120)   (326,871)
Dividends to preferred stockholders   (413)   (413)
Payments of deferred financing costs   (302)    
Borrowings (repayments) on bank credit facilities, net   17,600    (105,600)
Employee tax withholding for settlement of equity compensation awards   (6,785)   (8,350)
Net cash used in financing activities   (315,020)   (441,234)
Net increase in cash and cash equivalents        
Cash and cash equivalents, beginning of period        
Cash and cash equivalents, end of period  $     
           
Supplemental disclosure of cash flow information:          
Cash paid during the period for interest  $130,236    159,019 
Increase (decrease) in accrued capital expenditures and accounts payable for property and equipment  $(17,130)   9,171