Antero Midstream (US:AM) ZACKSยท2024-08-01 14:15Core 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]