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Antero Midstream (AM) Q4 Earnings Beat on Compression Volumes
Antero Midstream Antero Midstream (US:AM) Zacks Investment Researchยท2024-02-19 19:36

Core Viewpoint - Antero Midstream Corporation reported strong fourth-quarter 2023 results, with adjusted earnings per share of 24 cents, exceeding estimates and improving from the previous year's 20 cents. Total revenues of $260 million also surpassed expectations and increased from $242 million year-over-year, driven by higher compression and low-pressure gathering volumes [1]. Operational Performance - Average daily compression volumes reached 3,343 million cubic feet (MMcf/d), up from 2,945 MMcf/d in the prior year and exceeding estimates [2]. - High-pressure gathering volumes increased to 3,047 MMcf/d from 2,762 MMcf/d year-over-year, also surpassing estimates [2]. - Low-pressure gathering volumes averaged 3,377 MMcf/d, up from 3,070 MMcf/d in the fourth quarter of 2022, exceeding estimates [2]. - Freshwater delivery volumes were 94 MBbls/d, down approximately 15% from 111 MBbls/d in the prior year, while the average freshwater distribution fee increased to $4.22 from $4.09 [3]. Operating Expenses - Direct operating expenses rose to $50.8 million from $48.3 million year-over-year [4]. - Total operating expenses increased to $104.5 million from $97.4 million in the corresponding period of 2022 [4]. Balance Sheet - As of December 31, the company had cash and cash equivalents of $66,000 and long-term debt of $3,213.2 million [5]. Outlook - For 2024, Antero Midstream expects adjusted EBITDA in the range of $1,020-$1,060 million, indicating a 5% increase from 2023 at the midpoint. Free Cash Flows after dividends are projected to be between $235-$275 million, with a capital budget of $150-$170 million, reflecting a 14% decrease from 2023 at the midpoint [6].