Why Is Antero Midstream (AM) Up 9.6% Since Last Earnings Report?

Core Viewpoint - Antero Midstream Corporation reported weaker-than-expected earnings for Q3 2024, with adjusted earnings per share of 23 cents, missing the consensus estimate of 24 cents, while total revenues of $270 million met expectations but showed a year-over-year increase from $264 million [2][3]. Financial Performance - The company's Q3 2024 adjusted earnings per share were flat year-over-year at 23 cents, missing the Zacks Consensus Estimate [2]. - Total quarterly revenues were $270 million, consistent with the Zacks Consensus Estimate, and increased from $264 million in the same quarter last year [2]. - Direct operating expenses decreased slightly to $51.7 million from $51.9 million a year ago, but total operating expenses rose to $107.4 million from $101.5 million [8]. Operational Metrics - Average daily compression volumes were 3,269 million cubic feet (MMcf/d), slightly down from 3,271 MMcf/d year-over-year and below the estimate of 3,388 MMcf/d [4]. - High-pressure gathering volumes increased to 3,046 MMcf/d from 2,935 MMcf/d year-over-year, exceeding the estimate of 2,953 MMcf/d [5]. - Low-pressure gathering volumes averaged 3,277 MMcf/d, down from 3,323 MMcf/d a year ago, and also below the estimate of 3,366 MMcf/d [6]. - Freshwater delivery volumes decreased by approximately 33% to 71 MBbls/d from 106 MBbls/d year-over-year, with an average distribution fee of $4.31 per barrel, up from $4.20 [7]. Balance Sheet - As of September 30, 2024, Antero Midstream had no cash and cash equivalents and reported long-term debt of $3,171.7 million [9]. Guidance and Outlook - The company revised its 2024 guidance, lowering projections for net income and adjusted net income by $25 million and $15 million, respectively, due to increased interest expenses [10]. - The capital budget for 2024 is expected to be in the range of $150-$170 million, indicating a 14% decrease from the 2023 level at the midpoint [10]. - Estimates for the stock have trended downward, with a consensus estimate shift of -11.11% [11][12].