UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-38048 Altus Midstream Company (Exact name of registrant as specified in its charter) Delaware 81-4675947 (S ...

Altus Midstream Company (ALTM) Q1 2021 Earnings Conference Call May 6, 2021 2:00 PM ET Company Participants Patrick Cassidy - Director, IR Clay Bretches - CEO & President Ben Rodgers - CFO, Treasurer & Director Conference Call Participants James Carreker - U.S. Capital Advisors Operator Ladies and gentlemen, thank you for standing by, and welcome to the Altus Midstream Company First Quarter 2021 Earnings Call. [Operator Instructions]. I would now like to hand the conference over to your first speaker today, ...

Altus Midstream Co (ALTM) Q4 2020 Earnings Conference Call February 25, 2021 2:00 PM ET Company Participants Patrick Cassidy - Director, IR David Bretches - CEO, President & Director Ben Rodgers - CFO, Treasurer & Director Conference Call Participants Chad Bryant - Crédit Suisse James Carreker - U.S. Capital Advisors Operator Ladies and gentlemen, thank you for standing by, and welcome to the Altus Midstream Fourth Quarter and Full Year 2020 Earnings Results Call. [Operator Instructions]. I would now like t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Altus Midstream Company Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 001-38048 Securities registered pursuant to section 12(g) of the Act: None (Exact name of regis ...

2020 Financial Performance - Altus Midstream's 2020 Adjusted EBITDA was $191.2 million, exceeding the guidance midpoint of $180 million by $11.2 million, a 6% increase[9] - Distributable Cash Flow (DCF) for 2020 reached $121.9 million, slightly above the guidance of $120 million, representing a 2% increase[9] - Growth Capital Investments in 2020 amounted to $361.6 million, surpassing the guidance of $345 million by $16.6 million, a 5% increase[9] - Net income including noncontrolling interests for FY20 was $80.5 million, with cash from operations totaling $164.3 million[8] 2021 Financial Objectives and Guidance - The company anticipates generating meaningful free cash flow in 2021, targeting approximately $140 million, representing a ~16% free cash flow yield[12] - Altus Midstream plans to fund a quarterly fixed dividend of $1.50 per share, resulting in an annualized dividend of $6.00 per share, equating to ~$97 million in annualized dividend payments[12, 13] - Adjusted EBITDA for 2021 is projected to be in the range of $230 million to $270 million, with 75% attributable to JV pipeline projects[13] - Distributable Cash Flow (DCF) for 2021 is expected to be between $160 million and $190 million[13] - Growth Capital Investments for 2021 are projected to be in the range of $30 million to $40 million, primarily attributable to PHP[13] Joint Venture Pipelines - Altus Midstream holds a 16% interest in Gulf Coast Express (GCX), which has a capacity of 2.0 Bcf/d and a total project cost of $1.75 billion[22, 24] - The company has a ~27% interest in Permian Highway Pipeline (PHP), with a capacity of 2.1 Bcf/d and a total project cost of ~$2.2 billion[22, 25] - Altus Midstream owns 33% of Shin Oak NGL Pipeline, which has a project cost of $1.5 billion[22, 26] - The company holds a 15% interest in EPIC Crude Pipeline, which has a project cost of $2.4-$2.5 billion[22, 23]

Financial Data and Key Metrics Changes - Altus reported third quarter net income of $29 million, including a $4 million unrealized embedded derivative loss [16] - Adjusted EBITDA for the third quarter was approximately $53 million, a 21% increase over the previous quarter [16][19] - Year-over-year operating expenses decreased by 33%, marking the fifth consecutive quarter of reduced operating expenses [13] Business Line Data and Key Metrics Changes - Gas volumes in the gathering and processing (G&P) segment increased by 22% from the second quarter, reflecting higher system uptime and returning curtailed volumes [11] - NGL volumes on the Shin Oak pipeline remained flat compared to the prior quarter, with a modest ramp expected in 2021 [10] - The EPIC Crude Oil Pipeline continues to be affected by reduced production in the Permian Basin, with gradual volume increases anticipated as drilling activity picks up [10] Market Data and Key Metrics Changes - The Permian Highway pipeline is over 97% mechanically complete and is expected to be in service in early 2021, designed to transport up to 2.1 billion cubic feet per day of natural gas [10] - The Gulf Coast Express pipeline is performing strongly, delivering results in line with forecasts [10] Company Strategy and Development Direction - The company has shifted its focus from gas gathering and processing to long-haul joint venture pipeline projects, adapting to a changing operating environment [8] - Altus plans to initiate a substantial dividend beginning in 2021, reflecting confidence in cash flows and limited future capital needs [15][22] - The company aims to leverage its competitive position in the Permian Basin and explore growth opportunities in third-party business and M&A [30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the outlook for the fourth quarter and 2021, citing signs of stability and progress in commodity prices and production activity [6] - The company believes it is well-positioned to capitalize on growth opportunities in the G&P sector, particularly as market conditions improve [32] Other Important Information - Altus has a manageable leverage profile and expects to maintain a debt-to-adjusted EBITDA ratio of 2 to 3x through 2022 [21][23] - The company has ample funding sources and does not anticipate needing to access capital markets for growth financing [21] Q&A Session Summary Question: Why is the dividend set at $1.50 per share? - Management explained that the $1.50 quarterly dividend is manageable based on cash generation from underlying assets, with a coverage ratio of 1.8x for distributable cash flow [29] Question: How will the dividend impact future growth opportunities? - Management indicated that while the dividend will consume a portion of free cash flow, there are still growth opportunities in the G&P business and potential third-party deals [30][32] Question: What is the cash flow stability from joint ventures? - Management confirmed confidence in cash flows from joint ventures, particularly from the Permian Highway pipeline, which is expected to provide significant stability [36][38] Question: How does the political landscape affect operations? - Management stated that the company feels insulated from political changes and believes assets will perform well regardless of the administration [40] Question: What is the status of the preferred equity and refinancing? - Management noted that there are no immediate shifts in timing for preferred equity refinancing, and the current distribution rate is manageable [45]

ALTUS MIDSTREAM COMPANY | --- | --- | |-----------------------|--------------| | | | | | | | | | | Investor Presentation | | | November 2020 | Nasdaq: ALTM | Disclaimer FORWARD LOOKING STATEMENTS The information in this presentation and the oral statements made in connection therewith include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-38048 Altus Midstream Company (Exact name of registrant as specified in its charter) (State or other ju ...

Financial Data and Key Metrics Changes - Altus Midstream reported a second quarter net income of $18 million, which included an unrealized embedded derivative loss of approximately $11 million [20] - Adjusted EBITDA for the second quarter was approximately $44 million, down about 6% from the previous quarter, despite gathering volumes declining nearly 25% [20][21] - Operating costs during the second quarter decreased by approximately 10% from the preceding quarter and 23% compared to Q4 2019 [15] Business Line Data and Key Metrics Changes - Gathering volumes averaged 434 million cubic feet per day in Q2, down 25% compared to Q1, but recovered to approximately 560 million cubic feet per day in July [14] - The Shin Oak natural gas liquids pipeline experienced reduced throughput due to low NGL prices and production curtailments, but volumes rebounded in June and July [9] - Capital investment in midstream infrastructure during the quarter was approximately $74 million, primarily for the Permian Highway pipeline [21] Market Data and Key Metrics Changes - The Permian Basin remains short of takeaway capacity for natural gas, which has led to reduced flaring of associated gas and increased demand for pipeline capacity [12] - The company anticipates gathered volumes to increase in the current quarter as curtailed production at Alpine High comes back online [20] Company Strategy and Development Direction - Altus Midstream is focused on becoming free cash flow positive in early 2021 with the startup of the Permian Highway pipeline [28] - The company is pursuing additional third-party business and reducing costs through operational efficiencies, including the shift to electric-powered compression [16][40] - The company has sold approximately $22 million worth of idle assets over the past 18 months and is looking to generate additional cash flow from underutilized assets [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic but expressed confidence in the company's diversified cash flow streams and healthy balance sheet [18] - The outlook for 2021 includes expected adjusted EBITDA ranging from $220 million to $260 million, representing a 40% increase compared to 2020 [27] - Management emphasized the importance of maintaining manageable leverage levels and the potential for future financing alternatives for preferred shares [31][33] Other Important Information - The company executed two deals with Apache to lease and operate underutilized compression assets, which will generate revenue in the second half of the year [18] - A reverse stock split was approved by shareholders to comply with NASDAQ minimum price listing rules [28] Q&A Session Summary Question: Dividend commencement and debt pay down priorities - Management indicated that the situation is fluid and emphasized the importance of manageable leverage levels before considering dividends [31][33] Question: Fuel switching cost benefits - Management discussed the potential benefits of fuel switching, estimating operating cost reductions between 10% to 20% with electric-powered compression, but stated that quantification will occur in future calls [35][37]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Altus Midstream Company's unaudited consolidated financial statements and notes for the periods ended June 30, 2020 and 2019 [Statement of Consolidated Operations](index=6&type=section&id=STATEMENT%20OF%20CONSOLIDATED%20OPERATIONS) Q2 2020 net income was **$17.7 million**, a significant improvement, while the six-month period incurred a **$9.1 million** net loss due to derivative losses Consolidated Operations Highlights (Three Months Ended June 30) | Metric | 2020 (In thousands USD) | 2019 (In thousands USD) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $31,616 | $24,139 | +31.0% | | **Operating Income (Loss)** | $11,711 | $(4,942) | N/A | | **Net Income (Loss) Including Noncontrolling Interests** | $17,662 | $(5,498) | N/A | | **Net Loss Attributable to Class A Common Shareholders** | $(255) | $(2,293) | +88.9% | | **Diluted EPS** | $(0.07) | $(0.61) | +88.5% | Consolidated Operations Highlights (Six Months Ended June 30) | Metric | 2020 (In thousands USD) | 2019 (In thousands USD) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $72,383 | $57,985 | +24.8% | | **Operating Income (Loss)** | $30,352 | $(711) | N/A | | **Net Income (Loss) Including Noncontrolling Interests** | $(9,130) | $230 | N/A | | **Net Loss Attributable to Class A Common Shareholders** | $(10,108) | $(1,193) | -747.3% | | **Diluted EPS** | $(2.84) | $(0.32) | -787.5% | - A significant unrealized derivative instrument loss of **$72.6 million** was recorded in the first six months of 2020, which was the primary driver of the net loss for the period[19](index=19&type=chunk) [Consolidated Balance Sheet](index=9&type=section&id=CONSOLIDATED%20BALANCE%20SHEET) Total assets increased to **$1.64 billion** as of June 30, 2020, while liabilities rose to **$748.6 million** due to debt and derivatives Key Balance Sheet Items | Account | June 30, 2020 (In thousands USD) | Dec 31, 2019 (In thousands USD) | | :--- | :--- | :--- | | **Total Assets** | $1,642,243 | $1,500,854 | | Equity Method Interests | $1,408,479 | $1,258,048 | | **Total Liabilities** | $748,643 | $597,330 | | Long-Term Debt | $493,000 | $396,000 | | Embedded Derivative | $175,498 | $102,929 | | **Total Equity** | $70,344 | $(353,075) | [Statement of Consolidated Cash Flows](index=11&type=section&id=STATEMENT%20OF%20CONSOLIDATED%20CASH%20FLOWS) Operating cash flow significantly increased to **$86.8 million** for the six months ended June 30, 2020, while investing activities decreased to **$175.3 million** Cash Flow Summary (Six Months Ended June 30) | Activity | 2020 (In thousands USD) | 2019 (In thousands USD) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $86,797 | $21,688 | | **Net Cash Used in Investing Activities** | $(175,295) | $(697,698) | | **Net Cash Provided by Financing Activities** | $84,395 | $602,995 | | **Decrease in Cash and Cash Equivalents** | $(4,103) | $(73,015) | - Capital expenditures dropped significantly to **$26.5 million** in the first half of 2020 from **$259.3 million** in the same period of 2019[29](index=29&type=chunk) [Notes to Consolidated Financial Statements](index=15&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These notes detail accounting policies, operations, affiliate transactions, revenue recognition, debt, equity interests, and derivative fair value measurements - The company's operations consist of one reportable segment focused on gas gathering, processing, and transmission assets in the Permian Basin, and equity interests in four Permian Basin pipeline entities[40](index=40&type=chunk) - For the periods presented, the company's only significant customer was its affiliate, Apache Corporation[67](index=67&type=chunk) - On June 30, 2020, the company effected a one-for-twenty reverse stock split of its Class A and Class C Common Stock. All share and per-share amounts have been retroactively restated[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, noting COVID-19 impacts, increased revenue, significant derivative losses, and expected cash flow positivity by early 2021 [Overview](index=30&type=section&id=Overview) Altus Midstream operates Permian Basin gas assets and pipeline equity interests, facing COVID-19 impacts but expecting cash flow positivity by early 2021 - The company's assets include 182 miles of gas gathering pipelines, three cryogenic processing trains with **200 MMcf/d** capacity each, and equity interests in the GCX, EPIC, PHP, and Shin Oak pipelines[137](index=137&type=chunk)[139](index=139&type=chunk) - Management is monitoring the impact of the COVID-19 pandemic on throughput volumes and capacity utilization, noting that the current market has slowed the pace of securing third-party processing opportunities[138](index=138&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q2 2020 revenues rose **31%** to **$31.6 million** with lower costs, yielding **$11.7 million** operating income, though a **$72.6 million** derivative loss impacted the six-month net loss Revenue Comparison (Three Months Ended June 30) | Metric | 2020 (In thousands USD) | 2019 (In thousands USD) | Change | | :--- | :--- | :--- | :--- | | **Midstream services revenue — affiliate** | $31,616 | $24,139 | +$7.5M | Costs and Expenses Comparison (Three Months Ended June 30) | Expense Category | 2020 (In thousands USD) | 2019 (In thousands USD) | Change | | :--- | :--- | :--- | :--- | | **Operations and maintenance** | $9,508 | $14,005 | -$4.5M | | **Depreciation and accretion** | $4,062 | $9,107 | -$5.0M | | **Total costs and expenses** | $19,905 | $29,081 | -$9.2M | - The decrease in operations and maintenance expense was primarily due to increased operational efficiency from transitioning to the centralized Diamond cryogenic complex from mechanical refrigeration units[158](index=158&type=chunk) - Income from equity method interests increased significantly by **$18.2 million** for the quarter and **$34.2 million** for the six months, driven by the GCX and Shin Oak pipelines coming into service[169](index=169&type=chunk) [Capital Resources and Liquidity](index=38&type=section&id=Capital%20Resources%20and%20Liquidity) Capital spending significantly decreased to **$26.5 million** in H1 2020, with **$493.0 million** total debt and **$307.0 million** available borrowing capacity as of June 30, 2020 - The company believes cash from operations, a reduced capital program, and distributions from equity method interests will generate operating cash flows in excess of capital expenditures by **Q1 2021**[178](index=178&type=chunk) Liquidity Summary | Metric | June 30, 2020 (In thousands USD) | Dec 31, 2019 (In thousands USD) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,880 | $5,983 | | **Total debt** | $493,000 | $405,767 | | **Available committed borrowing capacity** | $307,000 | $404,000 | - The company's revolving credit facility matures in **November 2023** and has an aggregate commitment of **$800.0 million**, which can be increased to **$1.5 billion**[187](index=187&type=chunk) - The company was in compliance with its debt covenants as of June 30, 2020, with a Leverage Ratio of less than **4.00:1.00**[191](index=191&type=chunk)[193](index=193&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces indirect commodity price, interest rate, and credit risks, particularly from variable-rate debt and concentration with its primary customer - The company is indirectly exposed to commodity price risk, as adverse price changes can affect Apache's and other customers' decisions to develop and produce oil and gas[198](index=198&type=chunk) - As of June 30, 2020, the company had **$493.0 million** of variable-rate loans outstanding. A hypothetical **1.0%** increase in interest rates would have increased quarterly interest expense by approximately **$1.2 million**[200](index=200&type=chunk) - Credit risk is concentrated with its primary customer, Apache Corporation, and any potential future third-party customers[201](index=201&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[203](index=203&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2020, that have materially affected, or are reasonably likely to materially affect, these controls[205](index=205&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company has no direct legal proceedings, but its minority interest in Permian Highway Pipeline LLC is involved in a lawsuit regarding environmental permits - The company is not aware of any direct pending or threatened legal proceedings against it[207](index=207&type=chunk) - Permian Highway Pipeline LLC, in which the company holds a minority equity interest, has intervened in a lawsuit filed by the Sierra Club to defend verifications issued by the Army Corps of Engineers[208](index=208&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic has amplified existing risks, including commodity prices, economic conditions, and credit risk, with uncertain future impacts on the company - The COVID-19 pandemic has amplified previously identified risks, including those related to demand for oil and gas, economic conditions, availability of capital, and customer credit risk[210](index=210&type=chunk) - Management states that due to the uncertainty of the pandemic, there can be no assurance it will not materially and adversely affect the company's future business, financial condition, and results of operations[210](index=210&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) An amendment to the lease agreement with Apache Corporation allows for termination if the property is sold, facilitating Altus Midstream LP's vacating plans - Effective **July 27, 2020**, Altus Midstream LP and Apache Corporation entered into a First Amendment to their Lease Agreement for property in Reeves County, Texas[212](index=212&type=chunk) - The amendment facilitates Altus's desire to vacate the premises by allowing for lease termination if Apache sells the property, with a pro rata rent reduction for a partial sale[213](index=213&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate agreements, the amended lease, officer certifications, and XBRL financial statements