Antero Midstream (US:AM)2025-10-29 20:16Revenue Performance - Total revenues for the three months ended September 30, 2025, increased to $294.8 million, up from $269.9 million in the same period of 2024, representing a 9.2% increase[131] - Revenue from Antero Resources for the three months ended September 30, 2025, was $311.96 million, compared to $287.14 million in 2024, reflecting an 8.6% increase[133] - Total revenues increased by 9%, from $270 million for the three months ended September 30, 2024 to $295 million for the three months ended September 30, 2025[137] - Gathering and processing revenues increased by 7%, from $226 million to $241 million during the same period[137] - Water handling revenues increased by 23%, from $44 million to $54 million for the three months ended September 30, 2025[137] - Total revenues for the nine months ended September 30, 2025 increased by 9%, from $819 million to $891 million[154] - Water handling revenues for the nine months ended September 30, 2025 increased by 18%, from $155 million to $182 million[154] Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $180.49 million, compared to $162.43 million in the same period of 2024, marking an 11.1% increase[133] - Direct operating expenses increased by 12%, from $52 million to $58 million for the three months ended September 30, 2025[140] - Direct operating expenses increased by 10%, from $162 million for the nine months ended September 30, 2024 to $178 million for the nine months ended September 30, 2025[158] Cash Flow and Investments - Net cash provided by operating activities was $611 million and $677 million for the nine months ended September 30, 2024 and 2025, respectively, reflecting an increase due to higher gathering and processing revenues[171] - Net cash used in investing activities decreased from $203 million in 2024 to $119 million in 2025, primarily due to lower capital spending related to gathering systems[172] - Capital expenditures for the nine months ended September 30, 2025 totaled $133.5 million, a slight decrease from $137.3 million in 2024[177] Shareholder Returns and Capital Resources - The company repurchased approximately 5 million shares of common stock for a total cost of $87 million during the nine months ended September 30, 2025[124] - The company declared a cash dividend of $0.2250 per share for the quarter ended September 30, 2025, payable on November 5, 2025[169] - The company expects its capital resources to be adequate to meet working capital requirements and capital expenditures for at least the next 12 months[168] Interest and Tax Expenses - Interest expense decreased by 9%, from $52 million to $47 million primarily due to lower average daily Credit Facility borrowings[143] - Interest expense decreased by 9%, from $157 million for the nine months ended September 30, 2024 to $144 million for the same period in 2025, mainly due to lower interest rates on the Credit Facility[162] - Income tax expense increased by 20%, from $38 million to $46 million, reflecting effective tax rates of 27.7% and 28.3% respectively[146] - Income tax expense increased by 22%, from $103 million for the nine months ended September 30, 2024 to $126 million for the same period in 2025, reflecting effective tax rates of 26.3% and 25.8% respectively[165] Other Key Metrics - Fresh water delivery volumes increased by 30%, from 6,514 MBbl in Q3 2024 to 8,472 MBbl in Q3 2025[135] - The average realized compression fee rose by 5% from $0.21/Mcf in Q3 2024 to $0.22/Mcf in Q3 2025[135] - Gathering—low pressure volumes increased by 5% from 301,468 MMcf in Q3 2024 to 315,719 MMcf in Q3 2025[135] - Equity in earnings of unconsolidated affiliates increased by 7%, from $28 million to $30 million for the three months ended September 30, 2025[144] - Equity in earnings of unconsolidated affiliates increased by 6%, from $83 million for the nine months ended September 30, 2024 to $88 million for the same period in 2025, driven by increased processing volumes[163] - The company expects commodity prices to remain volatile but does not anticipate significant variability in throughput volumes due to Antero Resources' improved liquidity and leverage position[126] - The Federal Reserve increased the federal funds interest rate by 5.25% between 2022 and 2023 to manage inflation, which has begun to subside[127]