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Investments in Unconsolidated Affiliates

12 Months Ended

Dec. 31, 2023

Investments in Unconsolidated Affiliates

Investments in Unconsolidated Affiliates

(14)  Investments in Unconsolidated Affiliates

(a)Summary of Investments in Unconsolidated Affiliates

The Company has a 50% equity interest in the Joint Venture to develop processing and fractionation assets with MarkWest, a wholly owned subsidiary of MPLX, LP. The Joint Venture was formed to develop processing and fractionation assets in Appalachia. MarkWest operates the Joint Venture assets, which consist of processing plants in West Virginia and a one-third interest in two MarkWest fractionators in Ohio.

The Company also has a 15% equity interest in a gathering system of Stonewall, which operates a 67-mile pipeline on which Antero Resources is an anchor shipper.

The Company’s net income includes its proportionate share of the net income of the Joint Venture and Stonewall. When the Company records its proportionate share of net income, it increases equity income in the consolidated statements of operations and comprehensive income and the carrying value of that investment on its balance sheet. When distributions on the Company’s proportionate share of net income are received, they are recorded as reductions to the carrying value of the investment on the balance sheet and are classified as cash inflows from operating activities in accordance with the nature of the distribution approach under FASB ASC Topic 230, Statement of Cash Flows. The Company uses the equity method of accounting to account for its investments in the Joint Venture and Stonewall because it exercises significant influence, but not control, over the entities. The Company’s judgment regarding the level of influence over its equity investments includes considering key factors such as its ownership interest, representation on the applicable Board of Directors and participation in policy-making decisions of the Joint Venture and Stonewall.

The following table is a reconciliation of the Company’s investments in these unconsolidated affiliates:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	​		​	​	​	​	Total Investment		​
​	​	​	​	​	​	​	​	in Unconsolidated		​
(in thousands)		Joint Venture			Stonewall			Affiliates		​
Balance as of December 31, 2021	​	$	565,437	​	​	130,572	​	​	696,009	​
Equity in earnings of unconsolidated affiliates (1)	​	​	86,660	​	​	7,558	​	​	94,218	​
Distributions from unconsolidated affiliates	​	​	(108,445)	​	​	(12,015)	​	​	(120,460)	​
Return of investment in unconsolidated affiliate	​	​	(17,000)	​	​	—	​	​	(17,000)	​
Balance as of December 31, 2022	​	​	526,652	​	​	126,115	​	​	652,767	​
Additional investments	​	​	—	​	​	262	​	​	262	​
Equity in earnings of unconsolidated affiliates (1)	​	​	98,194	​	​	7,262	​	​	105,456	​
Distributions from unconsolidated affiliates	​	​	(116,025)	​	​	(15,810)	​	​	(131,835)	​
Balance as of December 31, 2023	​	$	508,821	​	​	117,829	​	​	626,650	​

(1) As adjusted for the amortization of the difference between the cost of the equity investments in Stonewall and the Joint Venture and the amount of the underlying equity in the net assets of Stonewall and the Joint Venture as of March 12, 2019.

(b)Summarized Financial Information of Unconsolidated Affiliates

The following tables present summarized financial information for the Company’s investments in unconsolidated affiliates:

Combined Balance Sheets

​	​	​	​	​	​	​	​
​	​	December 31,					​
(in thousands)		2022		​	2023		​
Current assets	​	$	74,852	​	​	68,894	​
Noncurrent assets	​	​	1,517,349	​	​	1,460,004	​
Total assets	​	$	1,592,201	​	​	1,528,898	​
​	​	​	​	​	​	​	​
Current liabilities	​	$	5,453	​	​	7,711	​
Noncurrent liabilities	​	​	4,427	​	​	4,028	​
Noncontrolling interest	​	​	154,100	​	​	146,094	​
Partners' capital	​	​	1,428,221	​	​	1,371,065	​
Total liabilities and partners' capital	​	$	1,592,201	​	​	1,528,898	​

​

Statements of Combined Operations

​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,								​
(in thousands)		2021			2022			2023		​
Revenues	​	$	333,565	​	​	357,730	​	​	388,717	​
Operating expenses	​	​	130,080	​	​	153,383	​	​	156,678	​
Income from operations	​	​	203,485	​	​	204,347	​	​	232,039	​
Net income attributable to unconsolidated affiliates, including noncontrolling interest	​	​	236,444	​	​	248,458	​	​	269,471	​
Net income attributable to unconsolidated affiliates	​	​	245,256	​	​	257,458	​	​	278,545	​

​

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- Definition

The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 6
-Subparagraph (SX 210.12-14(Column E)(Footnote 6)(b))
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