Antero Resources Finance Corp

CIK:0001483714|SEC Filings

Condensed Consolidated Statements of Operations (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenue:
Natural gas sales	$ 95,969	$ 48,030	$ 243,522	$ 140,538
Natural gas liquids sales	8,504	1,840	22,065	6,171
Oil sales	4,875	1,684	10,291	6,101
Realized and unrealized gain on commodity derivative instruments (including unrealized gains of $217,399 and $160,744 for nine months ended September 30, 2010 and 2011 and $108,439 and $140,195 for three months ended September 30, 2010 and 2011, respectively)	165,424	125,875	234,531	263,282
Gas gathering and processing revenue		5,973		18,462
Total revenue	274,772	183,402	510,409	434,554
Operating expenses:
Lease operating expenses	7,572	6,070	22,556	16,945
Gathering, compression and transportation	22,515	11,210	59,472	32,108
Production taxes	5,350	2,187	12,587	6,789
Exploration expenses	1,105	3,644	6,538	7,043
Impairment of unproved properties	4,834	11,043	7,934	31,590
Depletion, depreciation and amortization	44,617	35,886	117,265	101,147
Accretion of asset retirement obligations	111	79	316	227
General and administrative	7,404	5,296	21,972	14,464
Loss on sale of compressor station			8,700
Total operating expenses	93,508	75,415	257,340	210,313
Operating income	181,264	107,987	253,069	224,241
Other income expense:
Interest expense	(20,608)	(14,526)	(51,268)	(41,783)
Realized and unrealized losses on interest derivative instruments, net (including unrealized gains of $4,776 and $4,212 for nine months ended September 30, 2010 and 2011 and $1,302 for three months ended September 30, 2010, respectively)		(755)	(94)	(2,580)
Total other expense	(20,608)	(15,281)	(51,362)	(44,363)
Income before income taxes	160,656	92,706	201,707	179,878
Income tax expense	(49,578)	(25,107)	(74,941)	(39,287)
Net income	111,078	67,599	126,766	140,591
Noncontrolling interest in net income of consolidated subsidiary		181		(1,612)
Net income attributable to Antero equity owners	$ 111,078	$ 67,780	$ 126,766	$ 138,979

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net income	$ 126,766	$ 140,591
Adjustment to reconcile net income to net cash provided by operating activities:
Depletion, depreciation and amortization	117,265	101,147
Impairment of unproved properties	7,934	31,590
Unrealized gains on derivative instruments, net	(164,956)	(222,175)
Deferred taxes	74,941	39,287
Loss on sale of assets	8,700
Other	6,089	6,016
Changes in current assets and liabilities:
Accounts receivable	3,736	951
Accrued revenue	(11,840)	(850)
Other current assets	957	(10,579)
Accounts payable	(4,505)	3,305
Accrued liabilities	21,292	14,145
Revenue distributions payable	10,420	2,636
Advances from joint interest owners	1,647	447
Net cash provided by operating activities	198,446	106,511
Cash flows from investing activities:
Additions to proved properties	(105,405)
Additions to unproved properties	(145,200)	(27,997)
Drilling costs	(383,958)	(239,257)
Additions to gathering systems and facilities	(63,110)	(8,825)
Additions to other property and equipment	(2,083)	(2,391)
Proceeds from asset sales	15,379
Increase in other assets	(3,105)	(317)
Net cash used in investing activities	(687,482)	(278,787)
Cash flows from financing activities:
Issuance of senior notes	400,000	156,000
Borrowings on bank credit facility, net	120,000	13,914
Payments of deferred financing costs	(6,800)	(3,788)
Distribution to members	(28,858)
Other	(114)	(2,213)
Net cash provided by financing activities	484,228	163,913
Net decrease in cash and cash equivalents	(4,808)	(8,363)
Cash classified as assets held for sale		(2,306)
Cash and cash equivalents, beginning of period	8,988	10,669
Cash and cash equivalents, end of period	4,180	0
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	(39,930)	(26,939)
Supplemental disclosure of noncash investing activities:
Changes in accounts payable for additions to properties, gathering systems and facilities	$ 6,235	$ 23,819

Condensed Consolidated Balance Sheets (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 4,180	$ 8,988
Accounts receivable - trade, net of allowance for doubtful accounts of $272 and $182 in 2010 and 2011, respectively	27,234	30,971
Accrued revenue	36,708	24,868
Derivative instruments	151,849	82,960
Other	8,161	9,118
Total current assets	228,132	156,905
Natural gas properties, at cost (successful efforts method):
Unproved properties	849,973	737,358
Producing properties	2,271,995	1,762,206
Gathering systems and facilities	132,513	85,404
Other property and equipment	8,058	5,975
Property and equipment, gross	3,262,539	2,590,943
Less accumulated depletion, depreciation, and amortization	(548,446)	(431,181)
Property and equipment, net	2,714,093	2,159,762
Derivative instruments	239,273	147,417
Other assets, net	29,062	22,203
Total assets	3,210,560	2,486,287
Current liabilities:
Accounts payable	84,166	82,436
Accrued liabilities	41,723	21,746
Revenue distributions payable	40,337	29,917
Advances from joint interest owners	2,044	1,478
Derivative instruments		4,212
Deferred income tax liability	34,090	12,694
Total current liabilities	202,360	152,483
Long-term liabilities:
Long-term debt	1,172,406	652,632
Deferred income tax liability	131,034	77,489
Other long-term liabilities	11,866	8,696
Total liabilities	1,517,666	891,300
Equity:
Members' equity	1,460,947	1,489,806
Accumulated earnings	231,947	105,181
Total equity	1,692,894	1,594,987
Total liabilities and equity	$ 3,210,560	$ 2,486,287