v3.7.0.1
Reporting Segments
 3 Months Ended
Mar. 31, 2017
Reporting Segments  
Reporting Segments

(12)    Reporting Segments

The Partnership’s operations are located in the United States and are organized into two reporting segments: (1) gathering and processing and (2) water handling and treatment.

Gathering and Processing

The gathering and processing segment includes a network of gathering pipelines, compressor stations, and interests in processing and fractionation plants that collect and process natural gas, NGLs and oil from Antero Resources’ wells in West Virginia and Ohio.

Water Handling and Treatment

The Partnership’s water handling and treatment segment includes two independent systems that deliver fresh water from sources including the Ohio River, local reservoirs as well as several regional waterways. The water handling and treatment segment also includes other fluid handling services which includes high rate transfer, wastewater transportation, disposal and treatment.

These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. We evaluate the performance of the Partnership’s business segments based on operating income. Interest expense is primarily managed and evaluated on a consolidated basis.

Summarized financial information concerning the Partnership’s segments for the periods indicated is shown in the following table (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Water

 

 

 

 

  

Gathering and

  

Handling and

  

Consolidated

 

    

Processing

    

Treatment

    

Total

Three months ended March 31, 2016

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenue - Antero Resources

 

$

69,359

 

 

66,439

 

 

135,798

Revenue - third-party

 

 

275

 

 

 —

 

 

275

Total revenues

 

 

69,634

 

 

66,439

 

 

136,073

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

 

7,619

 

 

41,522

 

 

49,141

General and administrative (before equity-based compensation)

 

 

4,949

 

 

2,170

 

 

7,119

Equity-based compensation

 

 

4,386

 

 

1,586

 

 

5,972

Depreciation

 

 

16,861

 

 

6,962

 

 

23,823

Accretion of contingent acquisition consideration

 

 

 —

 

 

3,396

 

 

3,396

Total expenses

 

 

33,815

 

 

55,636

 

 

89,451

Operating income

 

$

35,819

 

 

10,803

 

 

46,622

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

 

$

 -

 

 

 -

 

 

 -

Total assets

 

$

1,503,098

 

 

524,348

 

 

2,027,446

Additions to property and equipment

 

$

48,686

 

 

37,036

 

 

85,722

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2017

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Revenue - Antero Resources

 

$

91,524

 

 

83,110

 

 

174,634

Revenue - third-party

 

 

135

 

 

 —

 

 

135

Total revenues

 

 

91,659

 

 

83,110

 

 

174,769

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Direct operating

 

 

8,114

 

 

39,440

 

 

47,554

General and administrative (before equity-based compensation)

 

 

5,549

 

 

2,622

 

 

8,171

Equity-based compensation

 

 

4,589

 

 

1,697

 

 

6,286

Depreciation

 

 

19,700

 

 

7,836

 

 

27,536

Accretion of contingent acquisition consideration

 

 

 —

 

 

3,526

 

 

3,526

Total expenses

 

 

37,952

 

 

55,121

 

 

93,073

Operating income

 

$

53,707

 

 

27,989

 

 

81,696

 

 

 

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

 

$

2,231

 

 

 -

 

 

2,231

Total assets

 

$

1,925,752

 

 

645,941

 

 

2,571,693

Additions to property and equipment

 

$

66,559

 

 

36,954

 

 

103,513