onurdongel Antero Midstream recently (NYSE:AM) yet another acquisition that is going to continue the cash flow acceleration at an advanced rate. These small acquisitions have been providing needed equipment that can be used "elsewhere" as needed by operations in addition to the use of most of the actual assets where they are located. The result is a lower capital budget combined with a cost savings that is accelerating free cash flow growth. That free cash flow growth is likely to mean more dividends so ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2024 was $255 million, a 5% increase year-over-year [9] - Free cash flow after dividends was $43 million, a 41% increase compared to Q2 2023 [9] - Leverage remained flat at 3.1 times despite a $70 million acquisition during the quarter [9][10] Business Line Data and Key Metrics Changes - Antero Midstream closed a $70 million acquisition from Summit Midstream, which included two compressor stations and approximately 50 miles of high-pressure pipelines [5][6] - The acquisition is expected to be immediately accretive to free cash flow and supports future development by Antero Resources [6] Market Data and Key Metrics Changes - Antero Resources has a peer-leading free cash flow breakeven gas price of $2.20 per Mcf, attributed to strong well performance and high exposure to liquids prices [7] - Despite NYMEX gas prices averaging $2.07 in the first half of 2024, Antero Resources' unhedged outspend was only $59 million, significantly lower than peers [8] Company Strategy and Development Direction - The company continues to execute a business plan focused on organic growth supplemented by bolt-on acquisitions [12] - Antero Midstream aims to achieve a leverage target of 3.0 times in the second half of the year, positioning itself to return additional capital to shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of maintaining a strong balance sheet and financial flexibility through successful refinancings [10][11] - The company is optimistic about its ability to generate consistent free cash flow and achieve its debt and leverage targets [11] Other Important Information - The company has received an upgrade to investment grade for Antero Resources, reflecting its balance sheet strength and operational performance [8][11] - Antero Midstream has maintained a $500 million buyback authorization, with plans to initiate buybacks once leverage targets are met [21] Q&A Session Summary Question: Was the potential delay in gathering and compressing volumes from the deferred pad at AR reflected in guidance? - Yes, the guidance update includes this potential delay, and no changes are expected as a result [16] Question: Can you provide insights on water results in Q2? - The decline in water volumes was due to the timing of well servicing, with expectations for increased volumes in Q3 [17][18] Question: What is the thought process on buybacks once the leverage target is achieved? - The company plans to start the buyback program in the second half of the year, with a focus on using the $500 million authorization efficiently [21] Question: What are the drivers of base business growth in 2024? - The increase in EBITDA guidance is driven by the recent acquisition and expected flat volumes year-over-year [22][23] Question: How sensitive is the timing of the buyback to the deferral at AR? - The timing of the buyback is not significantly impacted by changes in EBITDA or leverage due to the scale of the debt [30] Question: Any updates on third-party opportunities? - Conversations regarding third-party opportunities continue, particularly in Ohio, but no definitive outcomes have been established yet [32]

Second Quarter 2024 Earnings Presentation August 1, 2024 Antero Midstream (NYSE: AM) Legal Disclaimer Forward-Looking Statements: This presentation includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Antero Midstream Corporation's ("Antero Midstream" or "AM") control. All statements, other than historical facts included in this presentation, are forward-looking statem ...

Core Viewpoint - Antero Midstream Corporation reported strong second-quarter 2024 results, with adjusted earnings per share of 23 cents, surpassing estimates and showing improvement from the previous year [1] - Total revenues for the quarter reached $270 million, exceeding expectations and increasing from $258 million year-over-year [1] Operational Performance - Average daily compression volumes were 3,246 million cubic feet (MMcf/d), slightly down from 3,251 MMcf/d in the previous year but lower than estimates [2] - High-pressure gathering volumes increased to 2,994 MMcf/d from 2,922 MMcf/d year-over-year, also exceeding estimates [2] - Low-pressure gathering volumes averaged 3,258 MMcf/d, down from 3,304 MMcf/d in the prior year, and also lower than estimates [3] - Freshwater delivery volumes decreased by approximately 23% to 81 MBbls/d from 105 MBbls/d year-over-year, with an increase in average distribution fee [3] Operating Expenses - Direct operating expenses rose to $56.4 million from $52.6 million year-over-year [4] - Total operating expenses increased to $117 million from $112.8 million in the same period of 2023 [4] Balance Sheet - As of June 30, 2024, the company reported no cash and cash equivalents, with long-term debt amounting to $3,816.6 million [5] Outlook - For 2024, Antero Midstream projects adjusted EBITDA in the range of $1,020-$1,060 million, indicating a 5% increase from 2023 at the midpoint [6] - Free cash flows after dividends are expected to be between $235-$275 million for 2024, with a capital budget projected at $150-$170 million, reflecting a 14% decrease from 2023 at the midpoint [6] Zacks Rank and Key Picks - Antero Midstream currently holds a Zacks Rank 3 (Hold) [7] - Other better-ranked stocks in the energy sector include SM Energy, VAALCO Energy, and Energy Transfer, with SM Energy rated as a Strong Buy [7][8]

[Executive Summary & Second Quarter 2024 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Second%20Quarter%202024%20Highlights) [Second Quarter 2024 Highlights](index=1&type=section&id=Second%20Quarter%202024%20Highlights) Antero Midstream reported strong Q2 2024 results, with adjusted net income and EBITDA up 5%, free cash flow after dividends surging 41%, a strategic acquisition, and an S&P credit rating upgrade Q2 2024 Financial Highlights (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :--------------------------------- | :------ | :------ | :--------------- | | Net Income | $86 million | $87 million | Flat | | Diluted Net Income per Share | $0.18 | $0.18 | Flat | | Adjusted Net Income | $110 million | $105 million | 5% Increase | | Diluted Adjusted Net Income per Share | $0.23 | $0.22 | 5% Increase | | Adjusted EBITDA | $255 million | $243 million | 5% Increase | | Capital Expenditures | $51 million | $49 million | 4.1% Increase | | Free Cash Flow After Dividends | $43 million | $31 million | 41% Increase | | Leverage Ratio (as of June 30, 2024) | 3.1x | 3.5x (Prior Year) | Decrease | - Acquired Marcellus gathering and compression assets for **$70 million**, increasing throughput from key investment-grade customer Antero Resources[2](index=2&type=chunk) - Leverage ratio maintained at **3.1x** as of June 30, 2024, down from **3.5x** in the prior year, with **$120 million** reduction in net debt over the past year[2](index=2&type=chunk) - S&P Global Ratings upgraded the company and issuer credit ratings to **BB+**[2](index=2&type=chunk) - Extended credit facility maturity to 2029, maintaining **$1.25 billion** in committed capacity[2](index=2&type=chunk) [Second Quarter 2024 Financial and Operating Results](index=2&type=section&id=Second%20Quarter%202024%20Financial%20and%20Operating%20Results) [Operating Volumes and Joint Venture Performance](index=2&type=section&id=Operating%20Volumes%20and%20Joint%20Venture%20Performance) Q2 2024 operating volumes showed slight decreases in low-pressure gathering and total processing, increases in high-pressure gathering and JV fractionation, and a significant decline in freshwater delivery Average Daily Operating Volumes (Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :--------------------------------- | :------ | :------ | :------- | | Low Pressure Gathering (MMcf/d) | 3,258 | 3,304 | (1)% | | Compression (MMcf/d) | 3,246 | 3,251 | — | | High Pressure Gathering (MMcf/d) | 2,994 | 2,922 | 2% | | Freshwater Delivery (MBbl/d) | 81 | 105 | (23)% | | Joint Venture Total Processing (MMcf/d) | 1,588 | 1,600 | (1)% | | Joint Venture Total Fractionation (MBbl/d) | 40 | 39 | 3% | - Freshwater delivery volume decreased due to Antero Resources reducing its completion crews to one in early 2024[4](index=4&type=chunk) - Joint venture processing capacity utilization was **99%**, and fractionation capacity utilization was **100%**[5](index=5&type=chunk) [Revenue and Operating Expenses](index=2&type=section&id=Revenue%20and%20Operating%20Expenses) Q2 2024 total revenue increased to **$270 million**, primarily from gathering and processing, with direct operating expenses totaling **$56 million**, largely for water treatment Q2 2024 Revenue Composition | Business Segment | Revenue (Millions USD) | | :---------------------- | :--------------------- | | Gathering and Processing | $229 | | Water Treatment | $59 | | Customer Relationship Amortization | ($18) | | **Total Revenue** | **$270** | - Water treatment revenue included **$27 million** from wastewater treatment and high-flow water transfer services[6](index=6&type=chunk) Q2 2024 Operating Expenses | Expense Type | Amount (Millions USD) | | :------------------------------------ | :-------------------- | | Direct Operating Expenses | $56 | | General and Administrative Expenses (excluding equity-based compensation) | $10 | | Equity-Based Compensation Expense | $12 | | Depreciation | $38 | - Water treatment operating expenses included **$24 million** for wastewater treatment and high-flow water transfer services[7](index=7&type=chunk) [Net Income and Adjusted Net Income](index=2&type=section&id=Net%20Income%20and%20Adjusted%20Net%20Income) Q2 2024 net income was **$86 million**, flat year-over-year, while diluted adjusted net income, a non-GAAP measure, increased **5%** to **$110 million**, reflecting adjustments for debt extinguishment and asset sales Net Income and Adjusted Net Income (Thousands USD, Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | | :---------------------------------------------------------------- | :------------------ | :------------------ | | Net Income | $86,037 | $87,012 | | Customer Relationship Amortization | 17,668 | 17,668 | | Loss on Debt Extinguishment | 13,691 | — | | Loss on Settlement of Asset Retirement Obligations | — | 279 | | Loss on Asset Sales | 1,379 | 5,814 | | Tax Impact of Adjusting Items | (8,430) | (6,109) | | **Adjusted Net Income** | **$110,345** | **$104,664** | - Diluted net income per share remained at **$0.18**, while diluted adjusted net income per share increased **5%** to **$0.23**[8](index=8&type=chunk) [Adjusted EBITDA and Free Cash Flow](index=3&type=section&id=Adjusted%20EBITDA%20and%20Free%20Cash%20Flow) Q2 2024 adjusted EBITDA increased **5%** to **$255 million**, with free cash flow before dividends up **9%** to **$152 million**, and free cash flow after dividends surging **41%** to **$43 million**, driven by lower interest and higher operating cash flow Adjusted EBITDA and Free Cash Flow (Thousands USD, Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :----------------------------- | :------------------ | :------------------ | :------- | | Adjusted EBITDA | $254,992 | $242,525 | 5% | | Net Interest Expense | $52,186 | $55,388 | (6)% | | Capital Expenditures (Accrual Basis) | $51,276 | $48,584 | 5.5% | | Free Cash Flow Before Dividends | $151,530 | $138,553 | 9% | | Dividends Declared (Accrual Basis) | $108,284 | $107,927 | 0.3% | | Free Cash Flow After Dividends | $43,246 | $30,626 | 41% | - Net interest expense decreased **6%**, primarily due to a reduction in average total debt[10](index=10&type=chunk) - Net cash provided by operating activities increased from **$185.6 million** in Q2 2023 to **$215.8 million** in Q2 2024[12](index=12&type=chunk) [Operational Update](index=3&type=section&id=Operational%20Update) In Q2 2024, Antero Midstream connected **11** wells to its gathering system and provided freshwater delivery services to **19** wells - Connected **11** wells to the gathering system[13](index=13&type=chunk) - Provided freshwater delivery services to **19** wells[13](index=13&type=chunk) [Capital Investments](index=4&type=section&id=Capital%20Investments) Q2 2024 total capital expenditures were **$51 million**, primarily allocated to gathering and compression infrastructure - Total capital expenditures: **$51 million**[14](index=14&type=chunk) - Gathering and compression investments: **$41 million**[14](index=14&type=chunk) - Water infrastructure investments: **$10 million**[14](index=14&type=chunk) [2023 ESG Report](index=4&type=section&id=2023%20ESG%20Report) [2023 ESG Report](index=4&type=section&id=2023%20ESG%20Report) Antero Midstream released its 2023 ESG Report, marking its seventh consecutive year of reporting, highlighting progress in emissions reduction, local economic impact, increased water recycling, and operational safety - Released the 2023 ESG Report on July 31, 2024, marking the **seventh consecutive year** of ESG reporting[15](index=15&type=chunk) - Report highlights include progress in emissions reduction, significant local economic impact, increased water recycling rates, and a continued commitment to operational safety[15](index=15&type=chunk) [Investor Information](index=4&type=section&id=Investor%20Information) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) A conference call for Q2 2024 results is scheduled for August 1, 2024, with a replay available until August 8, 2024 - Conference call: Thursday, August 1, 2024, at **10:00 AM MT**[16](index=16&type=chunk) - Conference call replay available until Thursday, August 8, 2024, at **10:00 AM MT**[16](index=16&type=chunk) [Presentation Availability](index=4&type=section&id=Presentation%20Availability) An updated presentation for the earnings conference call will be posted on the company's website prior to the call - Updated presentation will be posted on www.anteromidstream.com prior to the conference call[17](index=17&type=chunk) [Non-GAAP Financial Measures and Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Definitions) [Adjusted Net Income Definition and Reconciliation](index=4&type=section&id=Adjusted%20Net%20Income%20Definition%20and%20Reconciliation) Adjusted Net Income is defined as net income plus specific non-recurring or non-cash items, used to assess assets' operational performance - Adjusted Net Income is defined as net income plus customer relationship amortization, loss on debt extinguishment, loss on settlement of asset retirement obligations, and loss on asset sales, less the tax impact of adjusting items[18](index=18&type=chunk) - Used to assess the operational performance of assets[18](index=18&type=chunk) [Adjusted EBITDA Definition and Reconciliation](index=4&type=section&id=Adjusted%20EBITDA%20Definition%20and%20Reconciliation) Adjusted EBITDA, a non-GAAP measure, evaluates financial performance, operational efficiency, and project feasibility, defined as net income adjusted for various non-cash and financing-related items - Adjusted EBITDA is defined as net income plus net interest expense, income tax expense, depreciation expense, customer relationship amortization, loss on debt extinguishment, loss on asset sales, accretion of asset retirement obligations, impairment of property and equipment, loss on settlement of asset retirement obligations, and equity-based compensation expense, excluding equity in earnings of unconsolidated affiliates, plus distributions from unconsolidated affiliates[18](index=18&type=chunk) - Used to evaluate financial performance, operational performance compared to publicly traded peers, and the feasibility of acquisitions and other capital expenditure projects[19](index=19&type=chunk) Adjusted EBITDA (Trailing Twelve Months Ended June 30, 2024) | Metric | Amount (Thousands USD) | | :---------------------------------------------------------------- | :--------------------- | | Net Income | $388,230 | | Net Interest Expense | 212,727 | | Income Tax Expense | 132,446 | | Depreciation Expense | 140,301 | | Customer Relationship Amortization | 70,672 | | Equity-Based Compensation Expense | 37,706 | | Equity in Earnings of Unconsolidated Affiliates | (110,155) | | Distributions from Unconsolidated Affiliates | 137,195 | | Loss on Debt Extinguishment | 13,750 | | **Adjusted EBITDA** | **$1,025,223** | [Free Cash Flow Definition and Reconciliation](index=4&type=section&id=Free%20Cash%20Flow%20Definition%20and%20Reconciliation) Free cash flow before dividends is adjusted EBITDA less net interest and accrual-basis capital expenditures; free cash flow after dividends further subtracts accrual-basis dividends, used to compare cash generation performance across periods - Free Cash Flow Before Dividends = Adjusted EBITDA - Net Interest Expense - Capital Expenditures (Accrual Basis)[20](index=20&type=chunk) - Free Cash Flow After Dividends = Free Cash Flow Before Dividends - Dividends Declared (Accrual Basis)[20](index=20&type=chunk) - Used as a performance measure to compare cash generation performance across periods[20](index=20&type=chunk) Capital Expenditures Reconciliation (Thousands USD, Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | | :------------------------------------------------- | :------------------ | :------------------ | | Capital Expenditures (Cash Basis) | $43,399 | $42,044 | | Change in Accrued Capital Costs | 7,877 | 6,540 | | **Capital Expenditures (Accrual Basis)** | **$51,276** | **$48,584** | [Net Debt and Leverage Definition and Reconciliation](index=5&type=section&id=Net%20Debt%20and%20Leverage%20Definition%20and%20Reconciliation) Net debt is consolidated total debt (excluding unamortized debt premiums and issuance costs) less cash, with the leverage ratio calculated as net debt divided by trailing twelve months adjusted EBITDA, serving as a key financial leverage indicator - Net Debt = Consolidated Total Debt (excluding unamortized debt premiums and debt issuance costs) - Cash and Cash Equivalents[23](index=23&type=chunk) - Leverage Ratio = Net Debt / Trailing Twelve Months Adjusted EBITDA[23](index=23&type=chunk) Consolidated Net Debt (as of June 30, 2024) | Debt Type | Amount (Thousands USD) | | :-------------------------- | :--------------------- | | Bank Credit Facility | $555,700 | | 5.75% Senior Notes due 2027 | 650,000 | | 5.75% Senior Notes due 2028 | 650,000 | | 5.375% Senior Notes due 2029 | 750,000 | | 6.625% Senior Notes due 2032 | 600,000 | | **Consolidated Total Debt** | **$3,205,700** | | Less: Cash and Cash Equivalents | — | | **Consolidated Net Debt** | **$3,205,700** | [Company Information](index=6&type=section&id=Company%20Information) [About Antero Midstream Corporation](index=6&type=section&id=About%20Antero%20Midstream%20Corporation) Antero Midstream Corporation owns, operates, and develops midstream gathering, compression, processing, and fractionation assets in the Appalachian Basin, along with integrated water assets primarily serving Antero Resources Corporation - Antero Midstream operates midstream gathering, compression, processing, and fractionation assets in the Appalachian Basin[27](index=27&type=chunk) - Also owns integrated water assets primarily serving Antero Resources Corporation[27](index=27&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks and uncertainties, including commodity price fluctuations, regulatory changes, and operational risks, cautioning that actual results may differ materially - Statements regarding future activities, events, or developments are forward-looking and subject to risks and uncertainties[28](index=28&type=chunk) - Risks include commodity price fluctuations, inflation, supply chain disruptions, environmental risks, regulatory changes, and cybersecurity risks[29](index=29&type=chunk) - Antero Midstream expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements, except as required by law[28](index=28&type=chunk) [Contact Information](index=6&type=section&id=Contact%20Information) Investor relations contact information is provided for further inquiries - Contact: Justin Agnew, VP Finance and Investor Relations, Antero Midstream, Phone: (303) 357-7269, Email: jagnew@anteroresources.com[30](index=30&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets were **$5.775 billion**, a slight increase from December 31, 2023, with long-term debt as the primary liability Condensed Consolidated Balance Sheets (Thousands USD) | Metric | December 31, 2023 | June 30, 2024 | | :--------------------------------- | :---------------- | :---------------- | | Total Current Assets | $91,128 | $103,598 | | Property and Equipment, Net | $3,793,523 | $3,868,885 | | Investments in Unconsolidated Affiliates | $626,650 | $612,847 | | Customer Relationships | $1,215,431 | $1,180,095 | | **Total Assets** | **$5,737,618** | **$5,774,967** | | Total Current Liabilities | $96,417 | $115,969 | | Long-Term Debt | $3,213,216 | $3,186,577 | | Deferred Income Tax Liabilities, Net | $265,879 | $330,802 | | **Total Liabilities** | **$3,585,887** | **$3,647,879** | | Total Stockholders' Equity | $2,151,731 | $2,127,088 | | **Total Liabilities and Stockholders' Equity** | **$5,737,618** | **$5,774,967** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) In Q2 2024, total revenue increased to **$269.8 million**, primarily from gathering and compression, with operating income rising to **$152.8 million**, but net income slightly decreased to **$86 million** due to higher other expenses Condensed Consolidated Statements of Operations (Thousands USD, Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | | :---------------------------------------------------------------- | :---------- | :---------- | | Total Revenue | $269,795 | $258,287 | | Total Operating Expenses | $117,042 | $112,764 | | Operating Income | $152,753 | $145,523 | | Net Interest Expense | ($52,186) | ($55,388) | | Equity in Earnings of Unconsolidated Affiliates | $27,597 | $25,972 | | Loss on Debt Extinguishment | ($13,691) | — | | Total Other Expenses | ($38,280) | ($29,416) | | Income Before Income Taxes | $114,473 | $116,107 | | Income Tax Expense | ($28,436) | ($29,095) | | **Net Income and Comprehensive Income** | **$86,037** | **$87,012** | | Diluted Net Income per Share | $0.18 | $0.18 | [Selected Operating Data](index=9&type=section&id=Selected%20Operating%20Data) Q2 2024 operating data showed slight decreases in low-pressure gathering and compression, a **2%** increase in high-pressure gathering, a **23%** decrease in freshwater delivery, and generally slight increases in average realized fees Operating Data (Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :--------------------------------- | :------ | :------ | :------- | | Low Pressure Gathering (MMcf) | 296,489 | 300,706 | (1)% | | Compression (MMcf) | 295,400 | 295,801 | * | | High Pressure Gathering (MMcf) | 272,447 | 265,890 | 2% | | Freshwater Delivery (MBbl) | 7,362 | 9,585 | (23)% | | Wells Served with Freshwater Delivery | 19 | 23 | (17)% | | Joint Venture Processing (MMcf) | 144,520 | 145,645 | (1)% | | Joint Venture Fractionation (MBbl) | 3,640 | 3,553 | 2% | Average Realized Fees (Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :------------------------------------ | :------ | :------ | :------- | | Average Low Pressure Gathering Fee ($/Mcf) | $0.36 | $0.35 | 3% | | Average Compression Fee ($/Mcf) | $0.21 | $0.21 | * | | Average High Pressure Gathering Fee ($/Mcf) | $0.22 | $0.21 | 5% | | Average Freshwater Delivery Fee ($/Bbl) | $4.31 | $4.21 | 2% | - Average realized fees for Q2 2024 included an approximate **1.6%** annual CPI adjustment[36](index=36&type=chunk) [Condensed Consolidated Results of Segment Operations](index=10&type=section&id=Condensed%20Consolidated%20Results%20of%20Segment%20Operations) In Q2 2024, the Gathering and Processing segment generated **$219.7 million** in total revenue and **$153.6 million** in operating income, significantly outperforming the Water Treatment segment's **$50.1 million** revenue and **$1.1 million** operating income Segment Revenue and Operating Income (Thousands USD, Q2 2024) | Segment | Total Revenue | Operating Income | | :-------------------------- | :------------- | :--------------- | | Gathering and Processing | $219,721 | $153,561 | | Water Treatment | $50,074 | $1,059 | | Unallocated | — | ($1,867) | | **Consolidated Total** | **$269,795** | **$152,753** | - Equity in earnings of unconsolidated affiliates contributed **$27.6 million** to the Gathering and Processing segment[38](index=38&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash from operating activities increased to **$426.4 million**, net cash used in investing activities rose to **$148.4 million** due to acquisitions, and net cash used in financing activities remained **$278 million** Condensed Consolidated Statements of Cash Flows (Thousands USD, Six Months Ended June 30, 2024 vs. 2023) | Activity | 2024 | 2023 | | :------------------------------------------ | :--------- | :--------- | | Net Cash Provided by Operating Activities | $426,367 | $368,305 | | Net Cash Used in Investing Activities | ($148,422) | ($84,211) | | Net Cash Used in Financing Activities | ($278,011) | ($284,094) | | Net Decrease in Cash and Cash Equivalents | ($66) | — | | Cash and Cash Equivalents at End of Period | — | — | - Acquisitions of gathering systems and facilities accounted for **$70.6 million** in 2024 investing activities[40](index=40&type=chunk) - Financing activities included the issuance of **$600 million** in senior notes and the redemption of **$560.9 million** in senior notes[40](index=40&type=chunk)

[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](index=3&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements subject to material risks and uncertainties that could cause actual results to differ - The report contains forward-looking statements regarding strategy, future operations, financial position, estimated revenues, and costs[5](index=5&type=chunk) - Factors that could cause actual results to differ include **Antero Resources' production plans**, commodity prices, geopolitical events, and regulatory changes[5](index=5&type=chunk) - Investors are cautioned that these statements are subject to risks including **commodity price volatility**, inflation, and supply chain disruptions[8](index=8&type=chunk) [PART I—FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and operations [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This item provides the company's unaudited condensed consolidated financial statements for the reported periods [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show the company's assets, liabilities, and stockholders' equity as of June 30, 2024, and December 31, 2023 | Metric (in thousands) | Dec 31, 2023 | Jun 30, 2024 | Change | | :-------------------- | :----------- | :----------- | :----- | | Total current assets | $91,128 | $103,598 | +$12,470 | | Property and equipment, net | $3,793,523 | $3,868,885 | +$75,362 | | Investments in unconsolidated affiliates | $626,650 | $612,847 | -$13,803 | | Customer relationships | $1,215,431 | $1,180,095 | -$35,336 | | Total assets | $5,737,618 | $5,774,967 | +$37,349 | | Total current liabilities | $96,417 | $115,969 | +$19,552 | | Long-term debt | $3,213,216 | $3,186,577 | -$26,639 | | Total liabilities | $3,585,887 | $3,647,879 | +$61,992 | | Total stockholders' equity | $2,151,731 | $2,127,088 | -$24,643 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Three Months)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Unaudited)%20(Three%20Months)) For the three months ended June 30, 2024, total revenue and operating income increased while net income slightly decreased year-over-year | Metric (in thousands) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jun 30, 2024 | YoY Change | YoY % Change | | :-------------------- | :-------------------------- | :-------------------------- | :--------- | :----------- | | Total revenue | $258,287 | $269,795 | +$11,508 | +4.5% | | Total operating expenses | $112,764 | $117,042 | +$4,278 | +3.8% | | Operating income | $145,523 | $152,753 | +$7,230 | +5.0% | | Interest expense, net | $(55,388) | $(52,186) | +$3,202 | -5.8% | | Equity in earnings of unconsolidated affiliates | $25,972 | $27,597 | +$1,625 | +6.3% | | Loss on early extinguishment of debt | $— | $(13,691) | $(13,691) | N/A | | Income before income taxes | $116,107 | $114,473 | $(1,634) | -1.4% | | Income tax expense | $(29,095) | $(28,436) | +$659 | -2.3% | | Net income | $87,012 | $86,037 | $(975) | -1.1% | | Net income per common share–basic | $0.18 | $0.18 | $0.00 | 0.0% | [Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Six Months)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Unaudited)%20(Six%20Months)) For the six months ended June 30, 2024, total revenue increased by 6% and net income increased by 9.5% year-over-year | Metric (in thousands) | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | YoY Change | YoY % Change | | :-------------------- | :-------------------------- | :-------------------------- | :--------- | :----------- | | Total revenue | $517,762 | $548,846 | +$31,084 | +6.0% | | Total operating expenses | $223,894 | $229,842 | +$5,948 | +2.7% | | Operating income | $293,868 | $319,004 | +$25,136 | +8.6% | | Interest expense, net | $(110,012) | $(105,494) | +$4,518 | -4.1% | | Equity in earnings of unconsolidated affiliates | $50,428 | $55,127 | +$4,699 | +9.3% | | Loss on early extinguishment of debt | $— | $(13,750) | $(13,750) | N/A | | Income before income taxes | $234,284 | $254,887 | +$20,603 | +8.8% | | Income tax expense | $(60,765) | $(64,924) | $(4,159) | +6.8% | | Net income | $173,519 | $189,963 | +$16,444 | +9.5% | | Net income per common share–basic | $0.36 | $0.39 | +$0.03 | +8.3% | [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) These statements detail changes in stockholders' equity, reflecting the impact of dividends, equity-based compensation, and net income | Metric (in thousands) | Dec 31, 2022 | Jun 30, 2023 | Dec 31, 2023 | Jun 30, 2024 | | :-------------------- | :----------- | :----------- | :----------- | :----------- | | Common Stock Amount | $4,785 | $4,797 | $4,797 | $4,812 | | Additional Paid-In Capital | $2,104,740 | $2,061,230 | $2,046,487 | $2,036,239 | | Retained Earnings | $82,793 | $87,012 | $100,447 | $86,037 | | Total Equity | $2,192,318 | $2,153,039 | $2,151,731 | $2,127,088 | - Dividends to stockholders for the six months ended June 30, 2024, totaled **$(108,989) thousand** (Q1 2024) and **$(112,080) thousand** (Q2 2024)[27](index=27&type=chunk) - Equity-based compensation for the six months ended June 30, 2024, was **$9,327 thousand** (Q1 2024) and **$11,599 thousand** (Q2 2024)[27](index=27&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the six months ended June 30, 2024, operating cash flow increased while investing cash outflow grew due to an asset acquisition | Metric (in thousands) | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | YoY Change | YoY % Change | | :-------------------- | :-------------------------- | :-------------------------- | :--------- | :----------- | | Net cash provided by operating activities | $368,305 | $426,367 | +$58,062 | +15.8% | | Net cash used in investing activities | $(84,211) | $(148,422) | $(64,211) | +76.2% | | Net cash used in financing activities | $(284,094) | $(278,011) | +$6,083 | -2.1% | | Net decrease in cash and cash equivalents | $— | $(66) | $(66) | N/A | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations supporting the condensed consolidated financial statements [(1) Organization](index=13&type=section&id=(1)%20Organization) Antero Midstream is a midstream energy company serving Antero Resources' activities in the Appalachian Basin under long-term contracts - Antero Midstream is a growth-oriented midstream energy company focused on servicing **Antero Resources' production** and completion activity in the Appalachian Basin[32](index=32&type=chunk) - The company's assets include gathering pipelines, compressor stations, interests in processing and fractionation plants, and water handling assets[32](index=32&type=chunk) - Midstream services are provided to Antero Resources under **long-term contracts**[32](index=32&type=chunk) [(2) Summary of Significant Accounting Policies](index=13&type=section&id=(2)%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the basis of presentation for the financial statements and details recently issued accounting standards [(a) Basis of Presentation](index=13&type=section&id=(a)%20Basis%20of%20Presentation) The unaudited condensed consolidated financial statements are prepared in accordance with SEC rules and GAAP for interim reporting - Financial statements are prepared in accordance with **SEC rules and GAAP** for interim financial information[33](index=33&type=chunk)[34](index=34&type=chunk) - **Net income is equal to comprehensive income** as there are no other comprehensive income or loss items[34](index=34&type=chunk) - Costs charged to the Company by Antero Resources for business, corporate services, and employee compensation are reflected in the financial statements[35](index=35&type=chunk) [(b) Principles of Consolidation](index=13&type=section&id=(b)%20Principles%20of%20Consolidation) The financial statements include Antero Midstream Corporation and its wholly-owned subsidiaries, with intercompany transactions eliminated - The financial statements consolidate Antero Midstream Corporation and its **wholly-owned subsidiaries**[36](index=36&type=chunk) - All significant **intercompany accounts and transactions are eliminated**[36](index=36&type=chunk) [(c) Recently Issued Accounting Standards](index=14&type=section&id=(c)%20Recently%20Issued%20Accounting%20Standards) The company is evaluating the impact of new FASB ASUs related to segment and income tax disclosures - The company is evaluating **ASU No. 2023-07**, 'Improvements to Reportable Segment Disclosures,' effective for annual periods beginning after December 15, 2023[38](index=38&type=chunk) - The company is evaluating **ASU No. 2023-09**, 'Improvements to Income Tax Disclosures,' effective for annual periods beginning after December 15, 2024[39](index=39&type=chunk) [(3) Intangibles](index=14&type=section&id=(3)%20Intangibles) Customer relationships are amortized over a weighted average period of 18 years, with a net carrying value of $1.18 billion as of June 30, 2024 - All customer relationships are amortized over a weighted average period of **18 years**[40](index=40&type=chunk) | Metric (in thousands) | Dec 31, 2023 | Jun 30, 2024 | | :-------------------- | :----------- | :----------- | | Gross carrying value of customer relationships | $1,555,000 | $1,555,000 | | Accumulated amortization of customer relationships | $(339,569) | $(374,905) | | Customer relationships | $1,215,431 | $1,180,095 | | Future Amortization Expense (in thousands) | Amount | | :----------------------------------------- | :----- | | Remainder of year ending December 31, 2024 | $35,336 | | Year ending December 31, 2025 | $70,672 | | Year ending December 31, 2026 | $70,672 | | Year ending December 31, 2027 | $70,672 | | Year ending December 31, 2028 | $70,672 | | Thereafter | $862,071 | | Total | $1,180,095 | [(4) Transactions with Affiliates](index=14&type=section&id=(4)%20Transactions%20with%20Affiliates) Substantially all revenues are derived from Antero Resources, which also allocates certain operating and administrative costs to the company [(a) Revenues](index=14&type=section&id=(a)%20Revenues) Substantially all revenues are earned from Antero Resources for gathering, compression, and water handling services - Substantially all revenues are earned from **Antero Resources** for gathering, compression, and water handling services[43](index=43&type=chunk) - Revenues from gathering and compression services consist of **lease income**[43](index=43&type=chunk) [(b) Accounts receivable—Antero Resources and Accounts payable—Antero Resources](index=15&type=section&id=(b)%20Accounts%20receivable%E2%80%94Antero%20Resources%20and%20Accounts%20payable%E2%80%94Antero%20Resources) Intercompany accounts relate to services provided to Antero Resources and costs charged by Antero Resources - Accounts receivable from Antero Resources are primarily for gathering, compression, and water handling services[45](index=45&type=chunk) - Accounts payable to Antero Resources are for general and administrative and other costs[45](index=45&type=chunk) [(c) Allocation of Costs Charged by Antero Resources](index=15&type=section&id=(c)%20Allocation%20of%20Costs%20Charged%20by%20Antero%20Resources) Antero Resources charges the company for direct operating and general and administrative expenses based on specific allocation metrics - Direct operating expenses charged by Antero Resources were **$5 million for Q2 2024** and **$10 million for H1 2024**[46](index=46&type=chunk) - General and administrative expenses charged by Antero Resources were **$8 million for Q2 2024** and **$16 million for H1 2024**[46](index=46&type=chunk) - Costs are apportioned based on the nature of expenses and a combination of gross property and equipment, capital expenditures, and labor costs[46](index=46&type=chunk) [(5) Revenue](index=15&type=section&id=(5)%20Revenue) Revenue is primarily generated from long-term operating lease and service contracts with Antero Resources for midstream services [(a) Gathering and Compression](index=15&type=section&id=(a)%20Gathering%20and%20Compression) Gathering and compression revenues are derived from long-term operating lease agreements with Antero Resources featuring fixed fees - Gathering and compression agreements with Antero Resources are classified as **operating leases**[51](index=51&type=chunk) - Antero Resources has dedicated substantially all of its current and future acreage in West Virginia, Ohio, and Pennsylvania for gathering and compression services[48](index=48&type=chunk) - The 2019 gathering and compression agreement has an initial term through **2038**[48](index=48&type=chunk) - The growth incentive fee rebate program, which reduced low pressure gathering fees, **expired on December 31, 2023**[49](index=49&type=chunk) | Minimum Future Lease Cash Flows (in thousands) | Amount | | :--------------------------------------------- | :----- | | Remainder of year ending December 31, 2024 | $154,093 | | Year ending December 31, 2025 | $320,323 | | Year ending December 31, 2026 | $301,108 | | Year ending December 31, 2027 | $236,768 | | Year ending December 31, 2028 | $168,465 | | Thereafter | $276,219 | | Total | $1,456,976 | [(b) Water Handling](index=19&type=section&id=(b)%20Water%20Handling) Water handling services are provided to Antero Resources under a long-term agreement with fixed and cost-plus fee structures - The water services agreement with Antero Resources has an initial term through **2035**[57](index=57&type=chunk) - Services include **fixed fees** for fresh water deliveries and **cost-plus-3%** or cost-of-service fees for other fluid handling services[57](index=57&type=chunk) - Revenue is recognized when service obligations are completed[58](index=58&type=chunk) [(c) Disaggregation of Revenue](index=20&type=section&id=(c)%20Disaggregation%20of%20Revenue) Revenue is disaggregated by service and fee type, showing the impact of the expired low pressure gathering fee rebate in 2024 | Revenue by Type of Service (in thousands) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | | :---------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Gathering—low pressure | $105,042 | $105,580 | $204,679 | $212,316 | | Gathering—low pressure fee rebate | $(12,000) | $— | $(24,000) | $— | | Compression | $61,565 | $62,648 | $119,955 | $125,232 | | Gathering—high pressure | $56,461 | $60,765 | $110,010 | $119,038 | | Fresh water delivery | $40,399 | $31,700 | $87,225 | $75,846 | | Other fluid handling | $24,488 | $26,770 | $55,229 | $51,750 | | Amortization of customer relationships | $(17,668) | $(17,668) | $(35,336) | $(35,336) | | Total Revenue | $258,287 | $269,795 | $517,762 | $548,846 | | Revenue by Type of Contract (in thousands) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | | :----------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Per unit fixed fee (Gathering & Processing) | $223,068 | $228,993 | $434,644 | $456,586 | | Gathering—low pressure fee rebate | $(12,000) | $— | $(24,000) | $— | | Per unit fixed fee (Water Handling) | $40,673 | $32,113 | $87,772 | $76,930 | | Cost plus 3% (Water Handling) | $18,797 | $19,128 | $43,242 | $36,538 | | Cost of service fee (Water Handling) | $5,417 | $7,229 | $11,440 | $14,128 | | Amortization of customer relationships | $(17,668) | $(17,668) | $(35,336) | $(35,336) | | Total Revenue | $258,287 | $269,795 | $517,762 | $548,846 | [(6) Property and Equipment](index=21&type=section&id=(6)%20Property%20and%20Equipment) Net property and equipment increased to $3.87 billion, partly due to a $70 million asset acquisition in May 2024 [(a) Summary of Property and Equipment](index=21&type=section&id=(a)%20Summary%20of%20Property%20and%20Equipment) Net property and equipment increased primarily due to additions in gathering systems and facilities | Metric (in thousands) | Dec 31, 2023 | Jun 30, 2024 | | :-------------------- | :----------- | :----------- | | Land | $31,668 | $31,237 | | Gathering systems and facilities | $3,345,845 | $3,514,707 | | Permanent buried pipelines and equipment | $646,469 | $653,814 | | Construction-in-progress | $192,852 | $154,590 | | Total property and equipment | $4,326,102 | $4,474,836 | | Less accumulated depreciation | $(532,579) | $(605,951) | | Property and equipment, net | $3,793,523 | $3,868,885 | [(b) Asset Acquisition](index=21&type=section&id=(b)%20Asset%20Acquisition) The company acquired interconnected Marcellus gas gathering and compression assets from Summit for $70 million in cash - On May 1, 2024, Antero Midstream acquired Marcellus gas gathering and compression assets from Summit for **$70 million in cash**[68](index=68&type=chunk) - The acquired assets include **48 miles of high-pressure gathering pipelines** and two compressor stations with **100 MMcf/d of compression capacity**[68](index=68&type=chunk) - These assets were already interconnected to the company's existing systems and service Antero Resources' production[68](index=68&type=chunk) [(7) Long-Term Debt](index=21&type=section&id=(7)%20Long-Term%20Debt) This section details the company's Credit Facility and Senior Notes, highlighting recent amendments, issuances, and redemptions [(a) Credit Facility](index=22&type=section&id=(a)%20Credit%20Facility) The company amended its senior secured revolving credit facility, maintaining commitments at $1.25 billion and extending the maturity to 2029 - On July 30, 2024, the senior secured revolving credit facility was **amended and restated**[72](index=72&type=chunk) - Lender commitments remain at **$1.25 billion**, with the new maturity date extended to **July 30, 2029**[73](index=73&type=chunk) - The facility includes covenants on indebtedness, leverage, and interest coverage ratios[74](index=74&type=chunk) - Borrowings bear interest at a variable rate based on Adjusted Term SOFR or Base Rate, plus an applicable interest margin[75](index=75&type=chunk) - As of June 30, 2024, outstanding borrowings were **$556 million** with a weighted average interest rate of **7.06%**[76](index=76&type=chunk) [(b) 7.875% Senior Notes Due 2026](index=22&type=section&id=(b)%207.875%25%20Senior%20Notes%20Due%202026) The $550 million of 7.875% senior notes due 2026 were fully redeemed, resulting in a $14 million loss on early debt extinguishment - The **$550 million** aggregate principal amount of 7.875% senior notes due 2026 were **fully repurchased or redeemed** during Q1 and Q2 2024[77](index=77&type=chunk) - A loss on early debt extinguishment of **$14 million** was recognized[79](index=79&type=chunk) [(c) 5.75% Senior Notes Due 2027](index=24&type=section&id=(c)%205.75%25%20Senior%20Notes%20Due%202027) The $650 million of 5.75% senior notes due 2027 are unsecured and effectively subordinated to the Credit Facility - **$650 million** of 5.75% senior notes due March 1, 2027, were issued[82](index=82&type=chunk) - These notes are **unsecured**, effectively subordinated to the Credit Facility, and guaranteed by Antero Midstream Corporation and its subsidiaries[82](index=82&type=chunk) - Redeemable by the company at various prices, and holders can require repurchase upon a change of control and rating decline[82](index=82&type=chunk) [(d) 5.75% Senior Notes Due 2028](index=24&type=section&id=(d)%205.75%25%20Senior%20Notes%20Due%202028) The $650 million of 5.75% senior notes due 2028 are unsecured and effectively subordinated to the Credit Facility - **$650 million** of 5.75% senior notes due January 15, 2028, were issued[83](index=83&type=chunk) - These notes are **unsecured**, effectively subordinated to the Credit Facility, and guaranteed by Antero Midstream Corporation and its subsidiaries[83](index=83&type=chunk) - Redeemable by the company at various prices, and holders can require repurchase upon a change of control and rating decline[83](index=83&type=chunk) [(e) 5.375% Senior Notes Due 2029](index=24&type=section&id=(e)%205.375%25%20Senior%20Notes%20Due%202029) The $750 million of 5.375% senior notes due 2029 are unsecured and effectively subordinated to the Credit Facility - **$750 million** of 5.375% senior notes due June 15, 2029, were issued[84](index=84&type=chunk) - These notes are **unsecured**, effectively subordinated to the Credit Facility, and guaranteed by Antero Midstream Corporation and its subsidiaries[84](index=84&type=chunk) - Redeemable by the company at various prices, and holders can require repurchase upon a change of control and rating decline[84](index=84&type=chunk) [(f) 6.625% Senior Notes Due 2032](index=24&type=section&id=(f)%206.625%25%20Senior%20Notes%20Due%202032) In January 2024, the company issued $600 million of 6.625% senior notes due 2032, which are unsecured and redeemable - On January 16, 2024, **$600 million** of 6.625% senior notes due February 1, 2032, were issued[85](index=85&type=chunk) - These notes are **unsecured**, effectively subordinated to the Credit Facility, and guaranteed by Antero Midstream Corporation and its subsidiaries[85](index=85&type=chunk) - Redeemable by the company on or after February 1, 2027, or earlier with a **'make-whole' premium**[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [(g) Senior Notes Guarantors](index=26&type=section&id=(g)%20Senior%20Notes%20Guarantors) Antero Midstream Corporation and its wholly-owned subsidiaries fully and unconditionally guarantee the Senior Notes - Antero Midstream Corporation and its wholly-owned subsidiaries fully and unconditionally guarantee the 2027, 2028, 2029, and 2032 Senior Notes[88](index=88&type=chunk) - Guarantors can be released from obligations under specific conditions, including sale/disposition or release of other credit facility guarantees[88](index=88&type=chunk)[89](index=89&type=chunk) [(8) Accrued Liabilities](index=26&type=section&id=(8)%20Accrued%20Liabilities) Accrued liabilities increased to $96.2 million, primarily driven by higher accrued interest expense and capital expenditures | Accrued Liabilities (in thousands) | Dec 31, 2023 | Jun 30, 2024 | | :--------------------------------- | :----------- | :----------- | | Capital expenditures | $22,195 | $23,889 | | Operating expenses | $12,060 | $11,248 | | Interest expense | $37,565 | $51,356 | | Ad valorem taxes | $6,521 | $7,265 | | Other | $2,289 | $2,444 | | Total accrued liabilities | $80,630 | $96,202 | [(9) Equity-Based Compensation](index=26&type=section&id=(9)%20Equity-Based%20Compensation) This section details the company's long-term incentive plan, which was amended to increase available shares and extend its term [(a) Summary of Equity-Based Compensation](index=26&type=section&id=(a)%20Summary%20of%20Equity-Based%20Compensation) The amended AM LTIP increased reserved shares to 28.7 million and extended the plan term to 2034 - The Amended and Restated Antero Midstream Corporation Long Term Incentive Plan (AM LTIP) was approved on **June 5, 2024**[93](index=93&type=chunk) - The AM LTIP increased reserved shares from 15,398,901 to **28,735,901** and extended the plan term to **June 5, 2034**[93](index=93&type=chunk) - As of June 30, 2024, **16,252,332 shares** were available for future grant under the AM LTIP[93](index=93&type=chunk) | Equity-Based Compensation Expense (in thousands) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | | :----------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Restricted stock units | $6,549 | $8,795 | $11,610 | $15,922 | | Performance share units | $1,723 | $2,554 | $2,784 | $4,505 | | Equity awards issued to directors | $227 | $250 | $432 | $499 | | Total expense | $8,499 | $11,599 | $14,826 | $20,926 | [(b) Restricted Stock Unit Awards](index=28&type=section&id=(b)%20Restricted%20Stock%20Unit%20Awards) As of June 30, 2024, 5.8 million unvested RSU units remained, with $58 million in unamortized compensation expense | RSU Activity (in thousands) | Number of Units | Weighted Average Grant Date Fair Value | | :-------------------------- | :-------------- | :------------------------------------- | | Balance at Dec 31, 2023 | 5,877,170 | $10.28 | | Granted | 2,459,643 | $13.44 | | Vested | (2,558,221) | $9.98 | | Forfeited | (5,529) | $11.07 | | Balance at Jun 30, 2024 | 5,773,063 | $11.75 | - As of June 30, 2024, unamortized equity-based compensation expense of **$58 million** related to unvested RSUs is expected to be recognized over a weighted average period of **2.0 years**[98](index=98&type=chunk) [(c) Performance Share Unit Awards](index=28&type=section&id=(c)%20Performance%20Share%20Unit%20Awards) PSUs granted in March 2024 vest based on the company's ROIC over a three-year period ending December 31, 2026 - In March 2024, PSUs were granted to executive officers, vesting based on the company's actual **return on invested capital (ROIC)** over a three-year period[99](index=99&type=chunk) - The likelihood of achieving the performance conditions for 2024 ROIC PSU awards was **probable** as of June 30, 2024[99](index=99&type=chunk) | PSU Activity (in thousands) | Number of Units | Weighted Average Grant Date Fair Value | | :-------------------------- | :-------------- | :------------------------------------- | | Balance at Dec 31, 2023 | 952,101 | $10.90 | | Granted | 350,237 | $13.44 | | Balance at Jun 30, 2024 | 1,302,338 | $11.59 | - As of June 30, 2024, unamortized equity-based compensation expense of **$17 million** related to unvested PSUs is expected to be recognized over a weighted average period of **1.9 years**[101](index=101&type=chunk) [(10) Cash Dividends](index=30&type=section&id=(10)%20Cash%20Dividends) The Board declared a cash dividend of $0.2250 per common share for Q2 2024, with $68,750 in preferred dividends in arrears | Period | Dividends (in thousands) | Dividends per Share | | :----- | :----------------------- | :------------------ | | Q4 2023 | $107,918 | $0.2250 | | Q1 2024 | $112,818 | $0.2250 | | Total 2024 YTD | $221,011 | | - On July 10, 2024, the Board declared a cash dividend of **$0.2250 per common share** for the quarter ended June 30, 2024[105](index=105&type=chunk) - A cash dividend of **$137,500** was declared on Series A Preferred Stock[105](index=105&type=chunk) - As of June 30, 2024, **$68,750** in dividends had accumulated in arrears on the Series A Preferred Stock[105](index=105&type=chunk) [(11) Equity and Net Income Per Common Share](index=30&type=section&id=(11)%20Equity%20and%20Net%20Income%20Per%20Common%20Share) This section details the company's preferred stock and the calculation of basic and diluted net income per common share [(a) Preferred Stock](index=30&type=section&id=(a)%20Preferred%20Stock) The company has 10,000 shares of 5.5% Series A Non-Voting Perpetual Preferred Stock outstanding, which rank senior to common stock - **10,000 shares** of 5.5% Series A Non-Voting Perpetual Preferred Stock are outstanding[106](index=106&type=chunk) - Preferred stock ranks **senior to common stock** for dividend and liquidation rights[106](index=106&type=chunk) - Dividends are cumulative and payable quarterly at **5.5% per annum**[106](index=106&type=chunk) - Redeemable by the company under certain conditions and convertible into common stock by holders after March 12, 2029[106](index=106&type=chunk) [(b) Weighted Average Common Shares Outstanding](index=32&type=section&id=(b)%20Weighted%20Average%20Common%20Shares%20Outstanding) Diluted weighted average common shares outstanding for the six months ended June 30, 2024, were 484.5 million | Metric (in thousands) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Basic weighted average number of common shares outstanding | 479,502 | 481,103 | 479,059 | 480,500 | | Add: Dilutive effect of RSUs | 797 | 1,670 | 1,225 | 2,176 | | Add: Dilutive effect of PSUs | 351 | 1,326 | 274 | 1,179 | | Add: Dilutive effect of Series A Preferred Stock | 862 | 679 | 862 | 679 | | Diluted weighted average number of common shares outstanding | 481,512 | 484,778 | 481,420 | 484,534 | [(c) Net Income Per Common Share](index=32&type=section&id=(c)%20Net%20Income%20Per%20Common%20Share) Diluted net income per common share for the six months ended June 30, 2024, increased to $0.39 from $0.36 in the prior year | Metric (in thousands, except per share amounts) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | | :---------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $87,012 | $86,037 | $173,519 | $189,963 | | Less preferred stock dividends | $(137) | $(137) | $(275) | $(275) | | Net income available to common shareholders | $86,875 | $85,900 | $173,244 | $189,688 | | Net income per common share–basic | $0.18 | $0.18 | $0.36 | $0.39 | | Net income per common share–diluted | $0.18 | $0.18 | $0.36 | $0.39 | [(12) Fair Value Measurement](index=32&type=section&id=(12)%20Fair%20Value%20Measurement) This section provides the fair and carrying values of the company's Senior Notes and other financial instruments [(a) Senior Unsecured Notes](index=32&type=section&id=(a)%20Senior%20Unsecured%20Notes) The fair value of the Senior Notes was $2.61 billion as of June 30, 2024, compared to a carrying value of $2.63 billion | Senior Unsecured Notes (in thousands) | Dec 31, 2023 Fair Value | Dec 31, 2023 Carrying Value | Jun 30, 2024 Fair Value | Jun 30, 2024 Carrying Value | | :------------------------------------ | :---------------------- | :-------------------------- | :---------------------- | :-------------------------- | | 2026 Notes | $565,785 | $546,631 | $— | $— | | 2027 Notes | $642,655 | $647,313 | $645,255 | $647,690 | | 2028 Notes | $641,030 | $645,702 | $636,220 | $646,186 | | 2029 Notes | $720,000 | $743,470 | $724,650 | $743,985 | | 2032 Notes | $— | $— | $604,500 | $593,016 | | Total | $2,569,470 | $2,583,116 | $2,610,625 | $2,630,877 | - Fair values are based on **Level 2 market data inputs**[115](index=115&type=chunk) - Carrying values are presented net of unamortized debt issuance costs and debt premium[115](index=115&type=chunk) [(b) Other Assets and Liabilities](index=34&type=section&id=(b)%20Other%20Assets%20and%20Liabilities) The carrying values of short-term assets, liabilities, and the Credit Facility approximated their fair values - Carrying values of accounts receivable and accounts payable approximated fair value due to their **short-term nature**[118](index=118&type=chunk) - The carrying value of the Credit Facility approximated fair value due to **variable interest rates** reflecting current market conditions[118](index=118&type=chunk) [(13) Investments in Unconsolidated Affiliates](index=34&type=section&id=(13)%20Investments%20in%20Unconsolidated%20Affiliates) The company holds equity interests in a joint venture with MarkWest and in Stonewall Gas Gathering, accounted for using the equity method - The company holds a **50% equity interest** in a joint venture with MarkWest Energy Partners, L.P. for processing and fractionation assets[119](index=119&type=chunk) - The company also holds a **15% equity interest** in Stonewall Gas Gathering LLC[119](index=119&type=chunk) - Investments are accounted for using the **equity method**[120](index=120&type=chunk) | Investment (in thousands) | Dec 31, 2023 | Jun 30, 2024 | | :------------------------ | :----------- | :----------- | | Joint Venture | $508,821 | $498,249 | | Stonewall | $117,829 | $114,598 | | Total Investment in Unconsolidated Affiliates | $626,650 | $612,847 | - Equity in earnings of unconsolidated affiliates for the six months ended June 30, 2024, was **$55,127 thousand**, with distributions of **$(68,930) thousand**[122](index=122&type=chunk) [(14) Contingencies](index=34&type=section&id=(14)%20Contingencies) The company is involved in a lawsuit with Veolia Water Technologies, where a court awarded the company $280 million, which Veolia has appealed - Antero Treatment LLC filed suit against Veolia Water Technologies, Inc. for **fraud and breach of contract** related to the Clearwater Facility[123](index=123&type=chunk)[124](index=124&type=chunk) - In January 2023, the Court found in favor of Antero Treatment, awarding **$280 million** in damages including pre-judgment interest[126](index=126&type=chunk)[127](index=127&type=chunk) - Veolia filed a notice of appeal, and Antero Treatment filed a cross-appeal in May and June 2023, respectively[127](index=127&type=chunk) [(15) Reportable Segments](index=36&type=section&id=(15)%20Reportable%20Segments) The company operates in two reportable segments, gathering and processing and water handling, with performance evaluated based on operating income [(a) Summary of Reportable Segments](index=36&type=section&id=(a)%20Summary%20of%20Reportable%20Segments) The company's two reportable segments are Gathering and Processing and Water Handling - The company has two reportable segments: **Gathering and Processing**, and **Water Handling**[128](index=128&type=chunk) - The Gathering and Processing segment includes gathering pipelines, compressor stations, and equity in earnings from the Joint Venture and Stonewall[129](index=129&type=chunk) - The Water Handling segment includes two independent systems for delivering water and transporting flowback/produced water[130](index=130&type=chunk) [(b) Reportable Segments Financial Information](index=37&type=section&id=(b)%20Reportable%20Segments%20Financial%20Information) The gathering and processing segment consistently generated higher revenues and operating income compared to the water handling segment | Metric (in thousands) | Gathering and Processing (Q2 2023) | Water Handling (Q2 2023) | Gathering and Processing (Q2 2024) | Water Handling (Q2 2024) | | :-------------------- | :--------------------------------- | :----------------------- | :--------------------------------- | :----------------------- | | Total revenues | $201,796 | $56,491 | $219,721 | $50,074 | | Operating income | $137,262 | $10,192 | $153,561 | $1,059 | | Equity in earnings of unconsolidated affiliates | $25,972 | $— | $27,597 | $— | | Additions to property and equipment | $29,959 | $11,823 | $34,607 | $8,792 | | Metric (in thousands) | Gathering and Processing (H1 2023) | Water Handling (H1 2023) | Gathering and Processing (H1 2024) | Water Handling (H1 2024) | | :-------------------- | :--------------------------------- | :----------------------- | :--------------------------------- | :----------------------- | | Total revenues | $392,101 | $125,661 | $438,043 | $110,803 | | Operating income | $271,448 | $25,310 | $307,586 | $14,547 | | Equity in earnings of unconsolidated affiliates | $50,428 | $— | $55,127 | $— | | Additions to property and equipment | $59,156 | $25,583 | $62,330 | $16,142 | | Total Assets (in thousands) | Dec 31, 2023 | Jun 30, 2024 | | :-------------------------- | :----------- | :----------- | | Gathering and Processing | $4,691,827 | $4,760,039 | | Water Handling | $1,045,725 | $1,014,678 | | Unallocated | $66 | $250 | | Total assets | $5,737,618 | $5,774,967 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and operational results [Overview](index=41&type=section&id=Overview) Antero Midstream is a growth-oriented midstream energy company that owns, operates, and develops assets to service Antero Resources - Antero Midstream is a growth-oriented midstream energy company primarily servicing **Antero Resources' production** and completion activity in the Appalachian Basin[143](index=143&type=chunk) - Assets include gathering pipelines, compressor stations, interests in processing and fractionation plants, and two independent water handling systems[143](index=143&type=chunk) [Asset Acquisition](index=41&type=section&id=Asset%20Acquisition) On May 1, 2024, the company acquired interconnected Marcellus gas gathering and compression assets from Summit for $70 million in cash - On May 1, 2024, the company acquired Marcellus gas gathering and compression assets from Summit for **$70 million in cash**, funded by operating cash flow[144](index=144&type=chunk) - The acquired assets include **48 miles of high-pressure gathering pipelines** and two compressor stations with **100 MMcf/d of compression capacity**[144](index=144&type=chunk) - **No significant capital investments** are expected for the acquired assets[144](index=144&type=chunk) [Financing Highlights](index=41&type=section&id=Financing%20Highlights) Key financing activities include amending the Credit Facility, issuing new 2032 Senior Notes, and redeeming the 2026 Senior Notes [Credit Facility](index=41&type=section&id=Credit%20Facility) The company amended its credit facility, maintaining $1.25 billion in commitments and extending the maturity to July 2029 - On July 30, 2024, the senior secured revolving credit facility was **amended and restated**[145](index=145&type=chunk) - Lender commitments remain at **$1.25 billion**, with a new maturity date of **July 30, 2029**[145](index=145&type=chunk) [Issuance of Senior Notes](index=41&type=section&id=Issuance%20of%20Senior%20Notes) In January 2024, the company issued $600 million of 6.625% senior notes due 2032 to repay borrowings on its Credit Facility - On January 16, 2024, **$600 million** of 6.625% senior notes due February 1, 2032, were issued[146](index=146&type=chunk) - Net proceeds were used to repay outstanding borrowings on the Credit Facility[146](index=146&type=chunk) [Repurchase of Senior Notes](index=43&type=section&id=Repurchase%20of%20Senior%20Notes) The company fully repurchased or redeemed its $550 million of 2026 Notes, which were retired as of May 16, 2024 - During the six months ended June 30, 2024, the company fully repurchased or redeemed **$550 million** aggregate principal amount of its 2026 Notes[147](index=147&type=chunk) - The 2026 Notes were retired as of **May 16, 2024**[147](index=147&type=chunk) [Share Repurchase Program](index=43&type=section&id=Share%20Repurchase%20Program) The Board authorized a $500 million share repurchase program, though no shares were repurchased during the second quarter of 2024 - On February 13, 2024, the Board authorized a share repurchase program for up to **$500 million** of common stock[148](index=148&type=chunk) - **No shares were repurchased** under this program during the three and six months ended June 30, 2024[148](index=148&type=chunk) - The **1% U.S. federal excise tax** on stock repurchases applies to this program[148](index=148&type=chunk) [Market Conditions and Business Trends](index=43&type=section&id=Market%20Conditions%20and%20Business%20Trends) Commodity price volatility affects Antero Resources' development plans, while inflation and interest rates impact the broader economy [Commodity Markets](index=43&type=section&id=Commodity%20Markets) Commodity price changes indirectly impact the company by influencing Antero Resources' drilling plans and throughput volumes - Natural gas prices decreased significantly, while NGLs and oil prices increased during the first half of 2024 compared to 2023[149](index=149&type=chunk) - Substantially all revenues are based on **fixed-fee contracts**, limiting direct impact from commodity price changes[149](index=149&type=chunk) - Commodity price changes **indirectly impact** the company through Antero Resources' drilling and development plans[149](index=149&type=chunk) [Economic Indicators](index=43&type=section&id=Economic%20Indicators) Elevated inflation and interest rates continue to impact the economy, though CPI-based contract adjustments mitigate some pressures - CPI increased **3%** from June 2023 to June 2024, exceeding the Federal Reserve's 2% target[150](index=150&type=chunk) - The Federal Reserve increased the federal funds interest rate by **5.25%** between March 2022 and June 2024[150](index=150&type=chunk) - **CPI-based adjustments** in contracts mitigate some impacts from inflationary pressures and supply chain disruptions[151](index=151&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) This section provides a comparative analysis of financial performance for the gathering and processing and water handling segments [Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2024](index=45&type=section&id=Three%20Months%20Ended%20June%2030%2C%202023%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) Total revenues increased by 4.5%, but net income slightly declined due to a $14 million loss on early debt extinguishment | Metric (in thousands) | Q2 2023 | Q2 2024 | YoY Change | YoY % Change | | :-------------------- | :------ | :------ | :--------- | :----------- | | Total revenues | $258,287 | $269,795 | +$11,508 | +4.5% | | Gathering and processing revenues | $201,796 | $219,721 | +$17,925 | +8.9% | | Water handling revenues | $56,491 | $50,074 | $(6,417) | -11.4% | | Operating income | $145,523 | $152,753 | +$7,230 | +5.0% | | Net income | $87,012 | $86,037 | $(975) | -1.1% | | Operating Data (Q2) | 2023 | 2024 | Change | % Change | | :------------------ | :-------- | :-------- | :-------- | :------- | | Low pressure gathering (MMcf) | 300,706 | 296,489 | (4,217) | (1)% | | Compression (MMcf) | 295,801 | 295,400 | (401) | * | | High pressure gathering (MMcf) | 265,890 | 272,447 | 6,557 | 2% | | Fresh water delivery (MBbl) | 9,585 | 7,362 | (2,223) | (23)% | | Other fluid handling (MBbl) | 4,953 | 5,144 | 191 | 4% | | Wells serviced by fresh water delivery | 23 | 19 | (4) | (17)% | - Low pressure gathering revenue increased **$13 million** due to lower growth incentive fee rebates and CPI-based rate adjustments[160](index=160&type=chunk) - Fresh water delivery revenue decreased **$8 million** due to a **23% decrease in volumes**[162](index=162&type=chunk) - Loss on early debt extinguishment of **$14 million** was recognized in Q2 2024 due to the repurchase/redemption of 2026 Notes[167](index=167&type=chunk) [Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2024](index=50&type=section&id=Six%20Months%20Ended%20June%2030%2C%202023%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) Total revenues increased by 6% and net income increased by 9.5%, driven by higher gathering and processing revenues | Metric (in thousands) | H1 2023 | H1 2024 | YoY Change | YoY % Change | | :-------------------- | :------ | :------ | :--------- | :----------- | | Total revenues | $517,762 | $548,846 | +$31,084 | +6.0% | | Gathering and processing revenues | $392,101 | $438,043 | +$45,942 | +11.7% | | Water handling revenues | $125,661 | $110,803 | $(14,858) | -11.8% | | Operating income | $293,868 | $319,004 | +$25,136 | +8.6% | | Net income | $173,519 | $189,963 | +$16,444 | +9.5% | | Operating Data (H1) | 2023 | 2024 | Change | % Change | | :------------------ | :-------- | :-------- | :-------- | :------- | | Low pressure gathering (MMcf) | 586,129 | 596,918 | 10,789 | 2% | | Compression (MMcf) | 578,163 | 592,063 | 13,900 | 2% | | High pressure gathering (MMcf) | 518,019 | 542,369 | 24,350 | 5% | | Fresh water delivery (MBbl) | 20,695 | 17,636 | (3,059) | (15)% | | Other fluid handling (MBbl) | 9,918 | 10,205 | 287 | 3% | | Wells serviced by fresh water delivery | 46 | 36 | (10) | (22)% | - Low pressure gathering revenue increased **$32 million** due to lower growth incentive fee rebates, a **2% increase in volumes**, and CPI-based rate adjustments[178](index=178&type=chunk) - Fresh water delivery revenue decreased **$11 million** due to a **15% decrease in volumes**[180](index=180&type=chunk) - Loss on early debt extinguishment of **$14 million** was recognized in H1 2024 due to the full repurchase/redemption of 2026 Notes[185](index=185&type=chunk) [Capital Resources and Liquidity](index=56&type=section&id=Capital%20Resources%20and%20Liquidity) Liquidity is primarily supported by operating cash flows and the Credit Facility, which are expected to be sufficient for near-term needs [Sources and Uses of Cash](index=56&type=section&id=Sources%20and%20Uses%20of%20Cash) Capital resources are derived from operating cash flows and available borrowings, expected to be adequate for the next 12 months - Capital resources and liquidity are provided by **operating cash flows** and available borrowings under the **Credit Facility**[187](index=187&type=chunk) - These resources are expected to be adequate for working capital, capital expenditures, and expected quarterly cash dividends for at least the next 12 months[187](index=187&type=chunk) - Future cash requirements are expected to be funded from internally generated cash flows or Credit Facility borrowings[188](index=188&type=chunk) [Operating activities](index=56&type=section&id=Operating%20activities) Net cash from operating activities increased by 15.7% due to higher revenues and increased distributions from equity method investments - Net cash provided by operating activities increased from **$368 million** in H1 2023 to **$426 million** in H1 2024, a **15.7% increase**[189](index=189&type=chunk) - The increase was primarily due to higher gathering and processing revenues, changes in working capital, and higher distributions from equity method investments[189](index=189&type=chunk) [Investing activities](index=56&type=section&id=Investing%20activities) Net cash used in investing activities increased by 76.2% due to a $70 million acquisition of gathering and compression assets - Net cash used in investing activities increased from **$84 million** in H1 2023 to **$148 million** in H1 2024, a **76.2% increase**[190](index=190&type=chunk) - The increase was primarily due to the **$70 million acquisition** of gathering and compression assets in Q2 2024[190](index=190&type=chunk) - This was partially offset by a **$9 million decrease** in capital spending for water handling systems[190](index=190&type=chunk) [Financing activities](index=56&type=section&id=Financing%20activities) Net cash used in financing activities remained stable, reflecting the issuance of 2032 Notes offset by the redemption of 2026 Notes - Net cash used in financing activities was **$284 million** in H1 2023 and **$278 million** in H1 2024[191](index=191&type=chunk) - Key activities included the issuance of **$600 million** in 2032 Notes, redemption of **$561 million** in 2026 Notes, and higher net repayments on the Credit Facility[191](index=191&type=chunk) [Cash Flows](index=56&type=section&id=Cash%20Flows) This table summarizes net cash flows, showing a net decrease in cash and cash equivalents of $66 thousand in 2024 | Cash Flows (in thousands) | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | | :------------------------ | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $368,305 | $426,367 | | Net cash used in investing activities | $(84,211) | $(148,422) | | Net cash used in financing activities | $(284,094) | $(278,011) | | Net decrease in cash and cash equivalents | $— | $(66) | [2024 Capital Investment](index=57&type=section&id=2024%20Capital%20Investment) The 2024 capital budget is $150 million to $170 million, with $81 million expended in the first six months - The 2024 capital budget is set at **$150 million to $170 million**[193](index=193&type=chunk) | Capital Expenditures (in thousands) | 3 Months Ended Jun 30, 2023 | 3 Months Ended Jun 30, 2024 | 6 Months Ended Jun 30, 2023 | 6 Months Ended Jun 30, 2024 | | :---------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Gathering systems and facilities | $34,475 | $41,352 | $55,724 | $65,914 | | Water handling systems | $13,847 | $9,924 | $26,201 | $15,134 | | Investments in unconsolidated affiliates | $262 | $— | $262 | $— | | Total capital expenditures | $48,584 | $51,276 | $82,187 | $81,048 | [Debt Agreements](index=57&type=section&id=Debt%20Agreements) This section refers to Note 7 for information on the company's debt agreements - Refer to Note 7—Long-Term Debt for information on debt agreements[195](index=195&type=chunk) [Critical Accounting Estimates](index=57&type=section&id=Critical%20Accounting%20Estimates) The company's financial statements are based on GAAP and require estimates and assumptions that affect reported amounts - Financial statements are prepared in accordance with GAAP and require estimates and assumptions[196](index=196&type=chunk) - Critical accounting estimates involve reasonable likelihood of materially different reported amounts under different conditions or assumptions[196](index=196&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item discusses the company's exposure to commodity price, interest rate, and credit risks [Commodity Price Risk](index=57&type=section&id=Commodity%20Price%20Risk) Fixed-fee contracts mitigate direct commodity price exposure, but prices indirectly impact the business through Antero Resources' operations - **Fixed-fee and cost-of-service contracts** aim to avoid direct commodity price exposure[198](index=198&type=chunk) - Commodity price risks **indirectly impact** the company by affecting Antero Resources' development program and production volumes[198](index=198&type=chunk) [Interest Rate Risk](index=59&type=section&id=Interest%20Rate%20Risk) The company's primary interest rate risk stems from floating-rate borrowings under its Credit Facility - Primary exposure to interest rate risk is from **floating-rate borrowings** under the Credit Facility[200](index=200&type=chunk) - A **1.0% increase** in the Credit Facility interest rate would have increased interest expense by an estimated **$1 million** for the six months ended June 30, 2024[200](index=200&type=chunk) - As of June 30, 2024, **$556 million** of borrowings or letters of credit were outstanding under the Prior Credit Facility[200](index=200&type=chunk) [Credit Risk](index=59&type=section&id=Credit%20Risk) The company faces significant credit risk due to its dependence on Antero Resources as its primary customer - The company is dependent on **Antero Resources** as its primary customer, expecting substantially all revenues from them[201](index=201&type=chunk) - Any adverse event affecting Antero Resources could **negatively impact** the company's revenues and operating results[201](index=201&type=chunk)[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) This item confirms the effectiveness of disclosure controls and procedures and notes no material changes in internal control [Evaluation of Disclosure Controls and Procedures](index=59&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024 - Management concluded that disclosure controls and procedures were **effective** as of June 30, 2024, at a reasonable assurance level[203](index=203&type=chunk) [Changes in Internal Control Over Financial Reporting](index=59&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the three months ended June 30, 2024 - **No material changes** in internal control over financial reporting occurred during the three months ended June 30, 2024[204](index=204&type=chunk) [PART II—OTHER INFORMATION](index=60&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This part provides additional information on legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings, with further details available in Note 14—Contingencies - The company's operations are subject to various legal proceedings and litigation[206](index=206&type=chunk) - Refer to **Note 14—Contingencies** for additional information[206](index=206&type=chunk) [Item 1A. Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the 2023 Form 10-K for a discussion of business risks, stating no material changes have occurred - For a discussion of business risks, refer to 'Item 1A. Risk Factors' in the **2023 Form 10-K**[207](index=207&type=chunk) - **No material changes** to the risks described in the 2023 Form 10-K have occurred[207](index=207&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Share purchase activity primarily involved shares transferred to satisfy tax withholding obligations, with no repurchases under the authorized program | Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan (2) | | :----- | :----------------------------------- | :--------------------------- | :------------------------------------------------------------------------------ | | April 1, 2024 – April 30, 2024 | 647,730 | $13.66 | $500,000,000 | | May 1, 2024 – May 31, 2024 | 968 | $14.15 | $500,000,000 | | June 1, 2024 – June 30, 2024 | — | — | $500,000,000 | | Total | 648,698 | $13.66 | | - Shares purchased represent common stock transferred to satisfy **tax withholding obligations** for equity-based awards[209](index=209&type=chunk) - **No repurchases** were made under the **$500 million** share repurchase program during the three months ended June 30, 2024[209](index=209&type=chunk) [Item 5. Other Information](index=60&type=section&id=Item%205.%20Other%20Information) This item incorporates the description of the Third Amended and Restated Credit Agreement as detailed in Note 7 - The Third Amended and Restated Credit Agreement, dated July 30, 2024, is incorporated by reference from **Note 7—Long-Term Debt**[210](index=210&type=chunk) [Item 6. Exhibits](index=61&type=section&id=Item%206.%20Exhibits) This item lists all exhibits filed with the Form 10-Q, including organizational documents, indentures, and certifications - The exhibits include organizational documents, debt indentures, the Amended and Restated Long Term Incentive Plan, the Third Amended and Restated Credit Agreement, CEO/CFO certifications, and iXBRL financial information[211](index=211&type=chunk) [SIGNATURES](index=62&type=secti

DENVER, July 31, 2024 /PRNewswire/ -- Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today announced its second quarter 2024 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 three months ended June 30, 2024.Second Quarter 2024 Highlights:Net Income was $86 million, or $0.18 per diluted share, in line with the prior year quarter on a per share basisAdjust ...

Core Points - Antero Midstream Corporation declared a cash dividend of $0.225 per share for Q2 2024, which annualizes to $0.90 per share [2] - This marks the 39th consecutive quarterly dividend since the company's initial public offering in November 2014 [2] - The dividend will be payable on August 7, 2024, to stockholders of record as of July 24, 2024 [2] - Antero Midstream did not repurchase any common shares during Q2 2024 [2] Earnings Release and Conference Call - Antero Midstream plans to release its Q2 2024 earnings on July 31, 2024, after the close of trading [3] - A conference call to discuss the financial and operational results is scheduled for August 1, 2024, at 10:00 am MT [3] - Participants can join the call by dialing specific numbers for U.S. and international callers, with a replay available until August 8, 2024 [3] Company Overview - Antero Midstream Corporation is a Delaware corporation that owns, operates, and develops midstream gathering, compression, processing, and fractionation assets in the Appalachian Basin [4] - The company also has integrated water assets primarily servicing Antero Resources Corporation's properties [4]

The stock market has been stellar so far in 2024. The S&P 500 and Nasdaq have hit fresh all-time highs, but volatility could creep back in as rate cuts take effect. This may seem counter-intuitive. But historically speaking, recessions and downturns have aligned with the Federal Reserve initiating rate cuts.Yet, despite the near-term uncertainty, I remain optimistic about the market’s prospects over the mid-to-long term. Why? History has shown repeatedly that a well-diversified portfolio of high-quality com ...

stocknshares Introduction I have the privilege to discuss investment ideas with my readers on Seeking Alpha almost on a daily basis - 365 days a year. As it says in my Seeking Alpha bio: [...] Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. While we discuss countless topics, like uranium miners and trucking companies, my main goal is always to achieve (at least) three things: I want to discuss important "big picture" ...