DENVER, Oct. 29, 2019 /PRNewswire/ -- Antero
Midstream Corporation (NYSE: AM) ("Antero Midstream" or
the "Company") today released its third quarter 2019 financial and
operating results. The relevant condensed consolidated
financial statements are included in Antero Midstream's Quarterly
Report on Form 10-Q for the quarter ended September 30, 2019, filed with the Securities and
Exchange Commission.
Third Quarter 2019 Highlights Include:
- Net loss was $289 million, or
$(0.57) per share, driven primarily
by the non-cash impairment charges related to the idling of the
Antero Clearwater Facility
- Adjusted Net Income increased by 156% to $197 million compared to the pro forma prior year
quarter, or $0.39 per share (non-GAAP
measure)
- Adjusted EBITDA increased by 18% to $218 million compared to the pro forma prior year
quarter (non-GAAP measure)
- Distributable Cash Flow increased by 8% to $170 million compared to the pro forma prior year
quarter (non-GAAP measure)
- Net Debt to trailing twelve months pro forma Adjusted EBITDA
ratio was 3.3x at the end of the quarter (non-GAAP
measure)
- Increased lender commitments on credit facility from
$2.0 billion to $2.13 billion in October
- Initiated share repurchase program and repurchased 3.5
million shares for approximately $25
million, leaving $275 million
of remaining share repurchase authorization
- Declared a dividend of $0.3075
per share ($1.23 per share
annualized), representing a 114% increase as compared to Antero
Midstream GP LP's third quarter 2018 distribution
Commenting on Antero Midstream, Paul
Rady, Chairman and CEO said, "Antero Midstream delivered
another strong quarter, generating 25% and 71% year-over-year
growth in low pressure gathering and processing volumes,
respectively. We remain focused on delivering on our organic growth
strategy and implementing blending and produced water
transportation initiatives that support the capital efficient
development program of our producer customer. Antero
Resources has already realized a portion of these reduced costs and
reported a 20% decrease in lease operating expenses per unit and an
8% decrease in drilling and completion cost per thousand feet in
the third quarter of 2019 as compared to the first half of
2019."
Mr. Rady further added, "Antero Resources today announced plans
to target a drilling and completion budget in 2020 of $1.15 to $1.2
billion. Antero Resources has stated that it expects this
development program to generate 8% to 10% year-over-year net
production growth with only a modest outspend of $100 to $150
million assuming current strip pricing. Antero Midstream's
just-in-time capital philosophy and core infrastructure investments
in 2019 allow it to further leverage its asset base and take
advantage of already existing infrastructure in 2020. This results
in a targeted capital budget of $375
to $425 million in 2020, or
approximately a 40% year-over-year reduction in capital investment
compared to the midpoint of the updated 2019 guidance range."
For a discussion of the non-GAAP financial measures including
Adjusted EBITDA, Adjusted Net Income and Distributable Cash Flow
presented on an actual and pro forma basis, as well as Net Debt,
please see "Non-GAAP Financial Measures."
2019 Guidance Updates
Antero Midstream is revising its 2019 capital budget down to a
range of $665 to $685 million from a previous range of
$750 to $800
million. The reduction is driven by the deferral of
just-in-time gathering, processing and fresh water delivery
projects, as well as capital savings initiatives, and removal of
the final Antero Clearwater Facility milestone payments assumed in
the capital budget. Antero Midstream is also revising its GAAP
net income guidance from a range of $305 to $365
million to a net loss range of $55
million to $45 million as a
result of the non-cash impairment of the Antero Clearwater
Facility. In addition, Antero Midstream is revising its 2019
Adjusted EBITDA guidance from a range of $870 to $920
million to a range of $840 to
$850 million and Distributable Cash
Flow guidance from a range of $680 to
$730 to a range of $655 to $665
million. The reduction is driven primarily by the reduced
wastewater volume throughout the year and the idling of the Antero
Clearwater Facility. The revised guidance includes an additional
$10 to $15
million of idling expenses in the fourth quarter of 2019.
The net positive cash flow impact to Antero Midstream as a result
of the revised capital budget and Adjusted EBITDA guidance is
approximately $55 million in 2019
based on the midpoint of the revised guidance ranges.
Preliminary 2020 Outlook
In a separate release, Antero Resources announced that it is
targeting 110 to 120 completions in 2020, with an average lateral
length of 12,100 feet as compared to 115 to 125 completions in 2019
with an average lateral of 10,200 feet. This represents a 14%
increase in total lateral feet completed. As a result of the
well cost reductions achieved to date and expectations for 2020,
Antero Resources announced that its preliminary drilling and
completion capital budget for 2020 is expected to be $1.15 to $1.2
billion.
Antero Midstream is initially targeting a 2020 capital program
of approximately $375 to $425 million, or a 40% decrease as compared to
the midpoint of the revised 2019 capital budget. The preliminary
2020 capital program does not include the $125 million earn-out payment from the water drop
down that Antero Midstream expects to pay in the first quarter of
2020 to Antero Resources. Antero Midstream's 2020 capital budget
will be flexible based on Antero Resources 2020 budget and
completion activity. Antero Midstream's and Antero Resources'
2020 budgets remain subject to respective board approvals and are
both expected to be finalized by the first quarter of 2020.
Return of Capital Program
On August 12, 2019, the Board of
Directors of Antero Midstream authorized a share repurchase program
to opportunistically repurchase up to $300
million of shares of its outstanding common stock through
June 30, 2021. During the third
quarter of 2019, Antero Midstream repurchased approximately 3.5
million shares under this program for approximately $25 million, leaving approximately $275 million of remaining capacity as of
September 30, 2019. In addition,
Antero Midstream declared a third quarter dividend of $0.3075 per share, which was unchanged as
compared to the second quarter of 2019. Importantly, Antero
Midstream's declining capital program in 2020 combined with
anticipated Adjusted EBITDA growth in 2020 positions Antero
Midstream to continue targeting high single digit return of capital
growth in 2020 as compared to 2019 based on the expected Antero
Resources development plan. Based on the attractive rates of
return and cash flow per share accretion from repurchasing shares
at the current share price, Antero Midstream currently expects this
return of capital growth in 2020 to be in the form of share
repurchases. The future allocation of Antero Midstream's return of
capital to shareholders between dividend growth and share
repurchases is subject to Board approval.
Increased Credit Facility Commitments
In October of 2019, Antero Midstream added Royal Bank of
Canada ("RBC") to its lending
group with $132 million of
incremental commitments. Pro forma for the addition of RBC,
Antero Midstream's lender commitments increased to $2.13 billion and the Company's available
liquidity increased to $1.4
billion.
Third Quarter 2019 Financial Results
The previously announced simplification transaction between
Antero Midstream GP LP ("AMGP") and Antero Midstream Partners LP
("Antero Midstream Partners") closed on March 12, 2019. GAAP financial results for
periods prior to the closing of the simplification transaction
reflect the financial results of AMGP. The financial and operating
results and comparisons for periods prior to the closing of the
simplification transaction that are discussed in this release are
based on the pro forma results of Antero Midstream Corporation as
if the transaction had occurred on January
1, 2018. GAAP and pro forma financial statements can be
found in the back of this press release.
Low pressure gathering volumes for the third quarter of 2019
averaged 2,698 MMcf/d, a 25% increase as compared to the prior year
quarter. Compression volumes for the third quarter of 2019
averaged 2,434 MMcf/d, a 39% increase as compared to the third
quarter of 2018. High pressure gathering volumes for the
third quarter of 2019 averaged 2,662 MMcf/d, a 23% increase over
the third quarter of 2018. The year-over-year increase in gathering
and compression volumes was driven by production growth from Antero
Resources in Antero Midstream's area of dedication. Fresh
water delivery volumes averaged 141 MBbl/d during the quarter, a
28% decrease compared to the third quarter of 2018, driven by a
decrease in Antero Resources' completion activity.
Gross processing volumes from the 50/50 processing and
fractionation joint venture with MarkWest (a wholly-owned
subsidiary of MPLX) (the "Joint Venture") averaged 1,036 MMcf/d for
the third quarter of 2019, an increase of 71% compared to the prior
year quarter. The five Sherwood Joint
Venture plants operated at 100% utilization for the
quarter. Gross Joint Venture fractionation volumes averaged
32 MBbl/d, an 88% increase compared to the prior year quarter. The
Joint Venture's fractionation capacity was 80% utilized during the
quarter. The year-over-year increase in processing and
fractionation volumes is primarily driven by the increase in Antero
Resources' rich gas and C3+ NGL production volumes.
|
|
Three Months
Ended September
30
|
|
Average Daily
Volumes:
|
|
2018(1)
|
|
2019
|
|
%
Change
|
Low Pressure Gathering
(MMcf/d)
|
|
2,166
|
|
2,698
|
|
25%
|
Compression
(MMcf/d)
|
|
1,756
|
|
2,434
|
|
39%
|
High Pressure
Gathering (MMcf/d)
|
|
2,173
|
|
2,662
|
|
23%
|
Fresh Water Delivery
(MBbl/d)
|
|
195
|
|
141
|
|
(28)%
|
Gross Joint Venture
Processing (MMcf/d)
|
|
606
|
|
1,036
|
|
71%
|
Gross Joint Venture
Fractionation (MBbl/d)
|
|
17
|
|
32
|
|
88%
|
|
|
1.
|
Represents results
for Antero Midstream Partners.
|
For the three months ended September 30,
2019, revenues were $244
million, comprised of $176
million from the Gathering and Processing segment and
$97 million from the Water Handling
and Treatment segment, net of $(29)
million of amortization of customer relationships. Water
Handling and Treatment segment revenues include $11 million from wastewater treatment at the
Antero Clearwater Facility and $36
million from wastewater handling and high rate water
transfer services. Wastewater handling and high rate transfer
service revenues, which are billed at cost plus 3%, decreased by
10% compared to the second quarter of 2019 driven by water savings
initiatives, improved trucking logistics, and blending operations
during the month of September. These support lower operating and
capital costs for Antero Resources.
Direct operating expenses for the Gathering and Processing and
Water Handling and Treatment segments were $13 million and $49
million, respectively, for a total of $62 million, compared to $81 million in total direct operating expenses in
the prior year quarter. Water Handling and Treatment direct
operating expenses include $11
million from wastewater treatment at the Antero Clearwater
Facility and $35 million from
wastewater handling and high rate water transfer services, which
are billed at cost plus 3%. Antero Midstream incurred
$2 million in costs to idle the
Antero Clearwater Facility during the third quarter. General
and administrative expenses excluding equity-based compensation
were $10 million during the third
quarter of 2019. Total operating expenses were $578 million, including $20 million of equity compensation expense,
$457 million of impairment,
$24 million of depreciation, and
$2 million of accretion and change in
fair value of contingent acquisition consideration and asset
retirement obligations.
During the third quarter of 2019, Antero Midstream idled the
Antero Clearwater wastewater treatment facility. The decision to
idle the facility was driven by its inability to operate at its
intended specifications. As a result of idling the facility,
Antero Midstream incurred a $457
million non-cash impairment during the quarter related to
the property, plant and equipment, as well as the impairment of
goodwill and customer relationship value related to the facility as
a result of the simplification transaction. Antero Midstream will
continue to evaluate strategic options for the future of the Antero
Clearwater Facility.
Net loss was $289 million, or
$(0.57) per share. Adjusted Net
Income was $197 million, or
$0.39 per share, representing a 156%
increase compared to the prior year quarter. Adjusted EBITDA
was $218 million, an 18% increase
compared to the prior year quarter. Adjusted EBITDA for the
quarter included $19 million in
combined distributions from Stonewall Gathering LLC and the
processing and fractionation Joint Venture. Cash interest
paid was $44 million. The decrease in
cash reserved for bond interest during the quarter was $9 million. Maintenance capital expenditures
during the quarter totaled $13
million and Distributable Cash Flow was $170 million, representing an 8% increase over
the prior year quarter. Based on the previously declared dividend
of $0.3075 per share, Antero
Midstream's Distributable Cash Flow coverage ratio was 1.1x.
The following table reconciles net income to Adjusted Net
Income, Adjusted EBITDA and Distributable Cash Flow as used in this
release (in thousands):
|
|
Three Months
Ended September
30,
|
|
|
|
2018
(1)
|
|
|
2019
|
Net
income
|
|
$
|
57,975
|
|
|
(289,477)
|
Amortization of
customer relationships
|
|
|
17,843
|
|
|
28,863
|
Impairment
expense
|
|
|
1,157
|
|
|
457,478
|
Adjusted Net
Income
|
|
|
76,975
|
|
|
196,864
|
Interest
expense
|
|
|
22,493
|
|
|
36,134
|
Provision for income
tax expense (benefit)
|
|
|
22,233
|
|
|
(62,268)
|
Depreciation
expense
|
|
|
42,390
|
|
|
24,460
|
Accretion and change in
fair value of contingent acquisition consideration
|
|
|
4,020
|
|
|
1,977
|
Accretion of asset
retirement obligations
|
|
|
33
|
|
|
54
|
Equity-based
compensation
|
|
|
13,102
|
|
|
20,129
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(9,235)
|
|
|
(18,478)
|
Distributions from
unconsolidated affiliates
|
|
|
11,765
|
|
|
18,710
|
Adjusted
EBITDA
|
|
|
183,776
|
|
|
217,582
|
Interest
paid
|
|
|
(24,958)
|
|
|
(43,925)
|
Decrease in cash
reserved for bond interest (2)
|
|
|
8,734
|
|
|
9,150
|
Maintenance capital
expenditures(3)
|
|
|
(10,964)
|
|
|
(12,915)
|
AMGP general and
administrative expenses
|
|
|
2,229
|
|
|
—
|
Income tax withholding
upon vesting of Antero Midstream Partners LP equity-based
compensation awards
|
|
|
(1,500)
|
|
|
(180)
|
Distributable Cash
Flow
|
|
$
|
157,317
|
|
|
169,712
|
|
|
|
|
|
|
|
Distributions or
Dividends Declared to Antero Midstream Holders
|
|
|
|
|
|
|
Distributions to
Limited Partners
|
|
$
|
82,302
|
|
|
—
|
Distributions to
incentive distribution rights and Series B unitholders
|
|
|
37,815
|
|
|
—
|
Dividends
|
|
|
—
|
|
|
153,023
|
Total Aggregate
Distributions and Dividends
|
|
$
|
120,117
|
|
|
153,023
|
|
|
|
|
|
|
|
Distributable Cash
Flow Coverage Ratio
|
|
|
1.3x
|
|
|
1.1x
|
|
|
1)
|
Three months ended
September 30, 2018 presented on a pro forma basis.
|
2)
|
Cash reserved for
bond interest expense on Antero Midstream's senior notes
outstanding during the period that is paid on a semi-annual
basis.
|
3)
|
Maintenance capital
expenditures represent the portion of our estimated capital
expenditures associated with (i) the connection of new wells to our
gathering and processing systems that we believe will be necessary
to offset the natural production declines Antero Resources will
experience on all of its wells over time, and (ii) water delivery
to new wells necessary to maintain the average throughput volume on
our systems.
|
Gathering and Processing — During the third
quarter of 2019, Antero Midstream connected 33 wells to its
gathering system and Antero Midstream's compression capacity was
approximately 90% utilized throughout the quarter. Antero Midstream
expects to add 120 MMcf/d of additional compression capacity in the
Marcellus Shale during the fourth quarter of 2019 to support the
anticipated growth in Antero Resources' production. Antero
Resources is currently operating four drilling rigs on Antero
Midstream dedicated acreage. The Joint Venture's processing
capacity during the third quarter was 1.0 Bcf/d, which was 100%
utilized. The Joint Venture recently placed the Sherwood 12
processing plant online and expects Sherwood 13 to be placed into
service later in the fourth quarter of 2019, bringing the Joint
Venture's total processing capacity to 1.4 Bcf/d.
Water Handling and Treatment — Antero
Midstream's Marcellus water delivery systems serviced 30 well
completions during the third quarter of 2019, a 21% decrease from
the prior year quarter. During the third quarter, Antero Resources
operated three completion crews. Antero Resources plans to operate
three to four completion crews during the fourth quarter, which is
expected to drive an increase in fresh water delivery volumes
during the fourth quarter of 2019 as compared to the third quarter
of 2019.
Balance Sheet and Liquidity
As of September 30, 2019, Antero
Midstream had approximately $726
million drawn on its $2.13
billion bank credit facility, resulting in approximately
$1.4 billion of liquidity.
Antero Midstream's Net Debt to trailing twelve months pro forma
Adjusted EBITDA was 3.3x as of September 30,
2019.
Commenting on Antero Midstream's growth and balance sheet,
Michael Kennedy, CFO of Antero
Midstream said, "Antero Midstream reported another strong quarter
which generated 18% and 8% year-over-year growth in Adjusted EBITDA
and Distributable Cash Flow, respectively. Importantly, Antero
Midstream's DCF coverage increased to 1.1x during the third quarter
and we expect a continued trend of increasing DCF coverage during
the fourth quarter of 2019. In addition, Antero Midstream's
balance sheet remains very strong with 3.3x net debt to Adjusted
EBITDA and approximately $1.4 billion
of liquidity."
Capital Investments
Total capital expenditures including investments in the Joint
Venture were $135 million during the
third quarter of 2019. Gathering, compression, and water
infrastructure capital investments totaled $121 million and investments in unconsolidated
affiliates for the Joint Venture were $14
million during the quarter. Of the $121 million invested in gathering, compression,
and water infrastructure, $82 million
was invested in gathering and compression assets and $39 million was invested in water handling and
treatment assets.
Conference Call
A conference call for Antero Midstream is scheduled on
Wednesday, October 30, 2019 at
10:00 am MT to discuss the financial
and operational results. A brief Q&A session for security
analysts will immediately follow the discussion of the results for
the quarter. To participate in the call, dial in 877-407-9126
(U.S.), or 201-493-6751 (International) and reference "Antero
Midstream". A telephone replay of the call will be available
until Wednesday, November 6, 2019 at
10:00 am MT at 877-660-6853 (U.S.) or
201-612-7415 (International) using the conference ID: 13693464.
A simultaneous webcast of the call and presentation may be
accessed over the internet at www.anteromidstream.com. The
webcast will be archived for replay on Antero Midstream's website
until Wednesday, November 6, 2019 at
10:00 am MT.
Guidance
Included in this press release are updates to certain 2019
guidance projections. Antero Midstream has not included a
reconciliation of Adjusted EBITDA and Distributable Cash Flow to
the nearest GAAP financial measure for 2019 because it cannot do so
without unreasonable effort and any attempt to do so would be
inherently imprecise. Antero Midstream is able to forecast the
following reconciling items between Adjusted EBITDA and net income
(in thousands):
|
Twelve Months
Ending
December 31, 2019
|
Low
|
|
High
|
Depreciation
expense
|
$
|
125,000
|
|
$
|
135,000
|
Interest
expense
|
|
125,000
|
|
|
135,000
|
Equity based
compensation expense
|
|
70,000
|
|
|
80,000
|
Equity in earnings of
unconsolidated affiliates
|
|
58,000
|
|
|
73,000
|
Distributions from
unconsolidated affiliates
|
|
76,000
|
|
|
81,000
|
Presentation
An updated company presentation will be posted to Antero
Midstream's website. The presentation can be found at
www.anteromidstream.com on the homepage. Information on
Antero Midstream's website does not constitute a portion of, and is
not incorporated by reference into, this press release.
Pro Forma Information
The pro forma information presented herein is for illustrative
purposes only. If this simplification transaction had occurred in
the past, operating results might have been materially different
from those presented in the pro forma financial information. The
pro forma financial information should not be relied upon as an
indication of operating results that Antero Midstream would have
achieved if the simplification transaction had taken place on
January 1, 2018. In addition, future
results may vary significantly from the pro forma results reflected
in this release and should not be relied upon as an indication of
Antero Midstream's future results. For more information, please see
Antero Midstream's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2019.
Non-GAAP Financial Measures and Definitions
Antero Midstream uses non-GAAP financial measures that are
presented on an actual and pro forma basis. The definitions, uses,
reconciliations to the nearest GAAP financial measure, and
disclosures discussed in this release apply to both an actual and
pro forma basis. Antero Midstream uses Adjusted EBITDA as an
important indicator of Antero Midstream's performance. Antero
Midstream defines Adjusted EBITDA as net income before amortization
of customer relationships, impairment expense, interest expense,
provision for income taxes (benefit), depreciation expense,
accretion, equity-based compensation expense, excluding equity in
earnings of unconsolidated affiliates, and including cash
distributions from unconsolidated affiliates.
Antero Midstream uses Adjusted EBITDA to assess:
- the financial performance of Antero Midstream's assets, without
regard to financing methods, capital structure or historical cost
basis;
- its operating performance and return on capital as compared to
other publicly traded companies in the midstream energy
sector, without regard to financing or capital structure; and
- the viability of acquisitions and other capital expenditure
projects.
Antero Midstream's defines Distributable Cash Flow as Adjusted
EBITDA less interest paid, decrease in cash reserved for bond
interest, income tax withholding upon vesting of Antero Midstream
Partners LP equity-based compensation awards, ongoing maintenance
capital expenditures paid, and AMGP general and administrative
expenses. Antero Midstream uses Distributable Cash Flow as a
performance metric to compare the cash generating performance of
Antero Midstream from period to period and to compare the cash
generating performance for specific periods to the cash dividends
(if any) that are expected to be paid to shareholders.
Distributable Cash Flow does not reflect changes in working capital
balances.
Adjusted EBITDA and Distributable Cash Flow are non-GAAP
financial measures. The GAAP measure most directly comparable
to Adjusted EBITDA and Distributable Cash Flow is Net Income.
The non-GAAP financial measures of Adjusted EBITDA and
Distributable Cash Flow should not be considered as alternatives to
the GAAP measure of Net Income. Adjusted EBITDA and
Distributable Cash Flow are not presentations made in accordance
with GAAP and have important limitations as an analytical tool
because they include some, but not all, items that affect Net
Income and Adjusted EBITDA. You should not consider Adjusted
EBITDA and Distributable Cash Flow in isolation or as a substitute
for analyses of results as reported under GAAP. Antero
Midstream's definition of Adjusted EBITDA and Distributable Cash
Flow may not be comparable to similarly titled measures of other
companies.
Antero Midstream defines consolidated net debt as consolidated
total debt less cash and cash equivalents. Antero Midstream
views consolidated net debt as an important indicator in evaluating
Antero Midstream's financial leverage.
The following table reconciles consolidated total debt to
consolidated net debt ("Net Debt") as used in this release (in
thousands):
|
|
September 30,
2019
|
Bank credit
facility
|
|
$725,500
|
5.375% senior notes
due 2024
|
|
652,600
|
5.75% senior notes
due 2027
|
|
653,250
|
5.75% senior notes
due 2028
|
|
650,000
|
Net unamortized debt
issuance costs
|
|
(23,600)
|
Consolidated total
debt
|
|
$2,657,750
|
Cash and cash
equivalents
|
|
—
|
Consolidated net
debt
|
|
$2,657,750
|
Antero Midstream defines Adjusted Net Income as net income plus
amortization of customer contracts and impairment. Antero Midstream
believes Adjusted Net Income is useful to investors in evaluating
operational trends and its performance relative to other midstream
companies. Adjusted Net Income is not a measure of financial
performance under GAAP and should not be considered in isolation or
as a substitute for net income as an indicator of financial
performance.
The following table reconciles pro forma net income to pro forma
Adjusted EBITDA for the twelve months ended September 30, 2019 as used in this release (in
thousands):
|
|
|
Twelve Months
Ended September 30,
2019
|
Pro forma net
income
|
|
$
|
13,294
|
Amortization of
customer relationships
|
|
|
70,792
|
Impairment
expense
|
|
|
465,054
|
Pro forma Adjusted
Net Income
|
|
|
549,140
|
Interest
expense
|
|
|
118,471
|
Income tax
expense
|
|
|
43,336
|
Depreciation
expense
|
|
|
120,017
|
Accretion of contingent
acquisition consideration
|
|
|
(97,609)
|
Accretion of asset
retirement obligations
|
|
|
230
|
Equity-based
compensation
|
|
|
68,831
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(57,072)
|
Distributions from
unconsolidated affiliates
|
|
|
71,930
|
Pro forma Adjusted
EBITDA
|
|
$
|
817,274
|
Antero Midstream Corporation is a Delaware corporation that owns, operates and
develops midstream gathering, compression, processing and
fractionation assets located in West
Virginia and Ohio, as well
as integrated water assets that primarily service Antero Resources
Corporation's properties. The Company's website is located at
www.anteromidstream.com.
This release includes "forward-looking statements."
Such forward-looking statements are subject to a number of risks
and uncertainties, many of which are not under Antero Midstream's
control. All statements, except for statements of historical
fact, made in this release regarding activities, events or
developments Antero Midstream expects, believes or anticipates will
or may occur in the future, such as Antero Midstream's ability to
execute its business plan and return capital to its shareholders,
information regarding potential incremental flowback and produced
water services, information regarding long-term financial and
operating outlooks for Antero Midstream and Antero Resources and
information regarding Antero Resources' expected future growth and
its ability to meet its drilling and development plan are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. All forward-looking statements speak only as of
the date of this release. Although Antero Midstream believes
that the plans, intentions and expectations reflected in or
suggested by the forward-looking statements are reasonable, there
is no assurance that these plans, intentions or expectations will
be achieved. Therefore, actual outcomes and results could
materially differ from what is expressed, implied or forecast in
such statements. Except as required by law, Antero Midstream
expressly disclaims any obligation to and does not intend to
publicly update or revise any forward-looking statements.
Antero Midstream cautions you that these forward-looking
statements are subject to all of the risks and uncertainties
incident to the exploration for and development, production,
gathering and sale of natural gas, NGLs and oil, most of which are
difficult to predict and many of which are beyond Antero
Midstream's control. These risks include, but are not limited
to, Antero Resources' expected future growth, Antero Resources'
ability to meet its drilling and development plan, commodity price
volatility, Antero Midstream's ability to execute its business
strategy, competition and governmental regulations, actions taken
by third party producers, operators, processors and transporters,
inflation, lack of availability of drilling and production
equipment and services, environmental risks, drilling and other
operating risks, regulatory changes, the uncertainty inherent in
estimating natural gas and oil reserves and in projecting future
rates of production, cash flow and access to capital, the timing of
development expenditures, and the other risks described under the
heading "Item 1A. Risk Factors" in Antero Midstream's Annual Report
on Form 10-K for the year ended December 31,
2018 and Quarterly Report on Form 10-Q for the quarter ended
September 30, 2019.
For more information, contact Michael
Kennedy – CFO of Antero Midstream at (303) 357-6782 or
mkennedy@anteroresources.com.
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
December 31, 2018 and September 30,
2019
|
(In
thousands)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
2018
|
|
2019
|
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,822
|
|
|
—
|
|
Accounts
receivable–Antero Resources
|
|
|
—
|
|
|
105,182
|
|
Accounts
receivable–third party
|
|
|
—
|
|
|
940
|
|
Other current
assets
|
|
|
87
|
|
|
3,102
|
|
Total current
assets
|
|
|
2,909
|
|
|
109,224
|
|
Property and
equipment, net
|
|
|
—
|
|
|
3,215,978
|
|
Investments in
unconsolidated affiliates
|
|
|
43,492
|
|
|
672,310
|
|
Deferred tax
asset
|
|
|
1,304
|
|
|
35,530
|
|
Customer
relationships
|
|
|
—
|
|
|
1,496,951
|
|
Goodwill
|
|
|
—
|
|
|
902,777
|
|
Other assets,
net
|
|
|
—
|
|
|
12,734
|
|
Total
assets
|
|
$
|
47,705
|
|
|
6,445,504
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable–Antero Resources
|
|
$
|
731
|
|
|
4,745
|
|
Accounts payable–third
party
|
|
|
28
|
|
|
32,569
|
|
Accrued
liabilities
|
|
|
407
|
|
|
96,944
|
|
Contingent acquisition
consideration
|
|
|
—
|
|
|
122,247
|
|
Asset retirement
obligations
|
|
|
—
|
|
|
2,630
|
|
Taxes
payable
|
|
|
15,678
|
|
|
—
|
|
Other current
liabilities
|
|
|
—
|
|
|
493
|
|
Total current
liabilities
|
|
|
16,844
|
|
|
259,628
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
—
|
|
|
2,657,750
|
|
Asset retirement
obligations
|
|
|
—
|
|
|
3,441
|
|
Other
|
|
|
—
|
|
|
1,655
|
|
Total
liabilities
|
|
|
16,844
|
|
|
2,922,474
|
|
|
|
|
|
|
|
|
|
Partners' Capital and
Stockholders' Equity:
|
|
|
|
|
|
|
|
Common
shareholders—186,219 shares issued and outstanding at December 31,
2018; none issued and outstanding at September 30, 2019
|
|
|
(41,969)
|
|
|
—
|
|
IDR LLC Series B units
(66 units vested at December 31, 2018; none issued and outstanding
at September 30, 2019)
|
|
|
72,830
|
|
|
—
|
|
Preferred stock, $0.01
par value: none authorized or issued at December 31, 2018; 100,000
authorized at September 30, 2019
|
|
|
|
|
|
|
|
Series A non-voting
perpetual preferred stock; none designated, issued or outstanding
at December 31, 2018; 12 designated and 10 issued and outstanding
at September 30, 2019
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; none authorized, issued or outstanding at December 31,
2018; 2,000,000 authorized and 503,378 issued and outstanding at
September 30, 2019
|
|
|
—
|
|
|
5,034
|
|
Additional paid-in
capital
|
|
|
—
|
|
|
3,715,002
|
|
Accumulated earnings
(loss)
|
|
|
—
|
|
|
(197,006)
|
|
Total partners'
capital and stockholders' equity
|
|
|
30,861
|
|
|
3,523,030
|
|
Total liabilities and
partners' capital and stockholders' equity
|
|
$
|
47,705
|
|
|
6,445,504
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Statements of Operations and Comprehensive
Income
|
Three Months Ended
September 30, 2018 and 2019
|
(Unaudited)
|
(In thousands, except
per share amounts)
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
2018
|
|
2019
|
|
Revenue:
|
|
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
|
$
|
—
|
|
|
175,719
|
|
Water handling and
treatment–Antero Resources
|
|
|
—
|
|
|
96,939
|
|
Amortization of
customer relationships
|
|
|
—
|
|
|
(28,863)
|
|
Total
revenue
|
|
|
—
|
|
|
243,795
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
—
|
|
|
61,808
|
|
General and
administrative (including $8,574 and $20,129 of equity-based
compensation in 2018 and 2019, respectively)
|
|
|
10,803
|
|
|
30,595
|
|
Facility
idling
|
|
|
—
|
|
|
1,512
|
|
Impairment of property
and equipment
|
|
|
—
|
|
|
407,848
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
43,759
|
|
Impairment of customer
relationships
|
|
|
—
|
|
|
5,871
|
|
Depreciation
|
|
|
—
|
|
|
24,460
|
|
Accretion and change
in fair value of contingent acquisition consideration
|
|
|
—
|
|
|
1,977
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
54
|
|
Total operating
expenses
|
|
|
10,803
|
|
|
577,884
|
|
Operating
loss
|
|
|
(10,803)
|
|
|
(334,089)
|
|
Interest expense,
net
|
|
|
(68)
|
|
|
(36,134)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
37,816
|
|
|
18,478
|
|
Income (loss) before
income taxes
|
|
|
26,945
|
|
|
(351,745)
|
|
Provision for income
tax benefit (expense)
|
|
|
(8,917)
|
|
|
62,268
|
|
Net income (loss) and
comprehensive income (loss)
|
|
$
|
18,028
|
|
|
(289,477)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share–basic and diluted
|
|
$
|
0.09
|
|
|
(0.57)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
186,208
|
|
|
506,419
|
|
Diluted
|
|
|
186,208
|
|
|
506,419
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Statements of Cash Flows
|
Nine Months Ended
September 30, 2018 and 2019
|
(Unaudited)
|
(In
thousands)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2018
|
|
2019
|
|
Cash flows provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
45,220
|
|
|
(210,555)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Distributions received
from Antero Midstream Partners LP, prior to the
Transactions
|
|
|
85,371
|
|
|
43,492
|
|
Depreciation
|
|
|
—
|
|
|
68,557
|
|
Accretion and change
in fair value of contingent acquisition consideration
|
|
|
—
|
|
|
5,323
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
133
|
|
Impairment of property
and equipment
|
|
|
—
|
|
|
408,442
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
43,759
|
|
Impairment of customer
relationships
|
|
|
—
|
|
|
5,871
|
|
Deferred income
benefit
|
|
|
—
|
|
|
(34,226)
|
|
Equity-based
compensation
|
|
|
26,319
|
|
|
53,095
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(99,414)
|
|
|
(34,981)
|
|
Distributions from
unconsolidated affiliates
|
|
|
—
|
|
|
42,570
|
|
Amortization of
customer relationships
|
|
|
—
|
|
|
39,178
|
|
Amortization of
deferred financing costs
|
|
|
90
|
|
|
2,123
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
|
—
|
|
|
38,331
|
|
Accounts
receivable–third party
|
|
|
—
|
|
|
12
|
|
Other current
assets
|
|
|
(56)
|
|
|
(1,788)
|
|
Accounts
payable–Antero Resources
|
|
|
—
|
|
|
(503)
|
|
Accounts payable–third
party
|
|
|
—
|
|
|
(3,635)
|
|
Accrued
liabilities
|
|
|
646
|
|
|
(19,648)
|
|
Income taxes
payable
|
|
|
(636)
|
|
|
(15,678)
|
|
Net cash provided by
operating activities
|
|
|
57,540
|
|
|
429,872
|
|
Cash flows provided
by (used in) investing activities:
|
|
|
|
|
|
|
|
Additions to gathering
systems and facilities
|
|
|
—
|
|
|
(170,921)
|
|
Additions to water
handling and treatment systems
|
|
|
—
|
|
|
(91,144)
|
|
Investments in
unconsolidated affiliates
|
|
|
—
|
|
|
(117,339)
|
|
Cash received on
acquisition of Antero Midstream Partners LP
|
|
|
—
|
|
|
619,532
|
|
Cash consideration
paid to Antero Midstream Partners LP unitholders
|
|
|
—
|
|
|
(598,709)
|
|
Change in other
assets
|
|
|
—
|
|
|
3,338
|
|
Change in other
liabilities
|
|
|
—
|
|
|
(1,050)
|
|
Net cash used in
investing activities
|
|
|
—
|
|
|
(356,293)
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
|
|
|
|
Distributions to
shareholders
|
|
|
(57,349)
|
|
|
(336,772)
|
|
Distributions to
Series B unitholders
|
|
|
(1,702)
|
|
|
(3,720)
|
|
Distributions to
preferred shareholders
|
|
|
—
|
|
|
(235)
|
|
Repurchases of common
stock
|
|
|
—
|
|
|
(25,519)
|
|
Issuance of senior
notes
|
|
|
—
|
|
|
650,000
|
|
Payments of deferred
financing costs
|
|
|
(230)
|
|
|
(8,523)
|
|
Payments on bank
credit facilities, net
|
|
|
—
|
|
|
(349,500)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
—
|
|
|
(2,008)
|
|
Other
|
|
|
—
|
|
|
(124)
|
|
Net cash used in
financing activities
|
|
|
(59,281)
|
|
|
(76,401)
|
|
Net decrease in cash
and cash equivalents
|
|
|
(1,741)
|
|
|
(2,822)
|
|
Cash and cash
equivalents, beginning of period
|
|
|
5,987
|
|
|
2,822
|
|
Cash and cash
equivalents, end of period
|
|
$
|
4,246
|
|
|
—
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
—
|
|
|
75,071
|
|
Cash paid during the
period for income taxes
|
|
$
|
22,871
|
|
|
16,001
|
|
Increase in accrued
capital expenditures and accounts payable for property and
equipment
|
|
$
|
—
|
|
|
34,667
|
|
PRO
FORMA ANTERO MIDSTREAM CORPORATION
|
Selected Operating
Data
|
Three Months Ended
September 30, 2018 and 2019
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Amount
of
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Increase
|
|
Percentage
|
|
|
2018
|
|
2019
|
|
or
Decrease
|
|
Change
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
199,226
|
|
|
248,208
|
|
|
48,982
|
|
|
25
|
%
|
Gathering—high
pressure (MMcf)
|
|
|
199,897
|
|
|
244,937
|
|
|
45,040
|
|
|
23
|
%
|
Compression
(MMcf)
|
|
|
161,549
|
|
|
223,904
|
|
|
62,355
|
|
|
39
|
%
|
Fresh water delivery
(MBbl)
|
|
|
17,984
|
|
|
12,945
|
|
|
(5,039)
|
|
|
(28)
|
%
|
Treated water
(MBbl)
|
|
|
1,062
|
|
|
2,332
|
|
|
1,270
|
|
|
120
|
%
|
Other fluid handling
(MBbl)
|
|
|
5,080
|
|
|
5,114
|
|
|
34
|
|
|
1
|
%
|
Wells serviced by
fresh water delivery
|
|
|
38
|
|
|
30
|
|
|
(8)
|
|
|
(21)
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
2,166
|
|
|
2,698
|
|
|
532
|
|
|
25
|
%
|
Gathering—high
pressure (MMcf/d)
|
|
|
2,173
|
|
|
2,662
|
|
|
489
|
|
|
23
|
%
|
Compression
(MMcf/d)
|
|
|
1,756
|
|
|
2,434
|
|
|
678
|
|
|
39
|
%
|
Fresh water delivery
(MBbl/d)
|
|
|
195
|
|
|
141
|
|
|
(54)
|
|
|
(28)
|
%
|
Treated water
(MBbl/d)
|
|
|
12
|
|
|
25
|
|
|
13
|
|
|
108
|
%
|
Other fluid handling
(MBbl/d)
|
|
|
55
|
|
|
56
|
|
|
1
|
|
|
2
|
%
|
Average realized
fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
|
$
|
0.32
|
|
|
0.33
|
|
|
0.01
|
|
|
3
|
%
|
Average gathering—high
pressure fee ($/Mcf)
|
|
$
|
0.19
|
|
|
0.21
|
|
|
0.02
|
|
|
11
|
%
|
Average compression
fee ($/Mcf)
|
|
$
|
0.19
|
|
|
0.19
|
|
|
—
|
|
|
—
|
%
|
Average fresh water
delivery fee ($/Bbl)
|
|
$
|
3.78
|
|
|
3.90
|
|
|
0.12
|
|
|
3
|
%
|
Average treatment fee
($/Bbl)
|
|
$
|
4.92
|
|
|
4.55
|
|
|
(0.37)
|
|
|
(8)
|
%
|
Joint Venture
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing—Joint
Venture (MMcf)
|
|
|
55,720
|
|
|
95,333
|
|
|
39,613
|
|
|
71
|
%
|
Fractionation—Joint
Venture (MBbl)
|
|
|
1,598
|
|
|
2,964
|
|
|
1,366
|
|
|
85
|
%
|
Processing—Joint
Venture (MMcf/d)
|
|
|
606
|
|
|
1,036
|
|
|
430
|
|
|
71
|
%
|
Fractionation—Joint
Venture (MBbl/d)
|
|
|
17
|
|
|
32
|
|
|
15
|
|
|
88
|
%
|
_______________________________
|
1) Three months
ended September 30, 2018 are presented on a pro forma
basis
|
* Not meaningful or
applicable.
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Results of Segment Operations
|
Three Months Ended
September 30, 2019
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering
and
Processing
|
|
Water
Handling and
Treatment
|
|
Pro Forma
Adjustments
|
|
Unallocated
|
|
Consolidated
Total
|
|
Three months ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue–Antero
Resources
|
|
$
|
175,719
|
|
|
96,939
|
|
|
—
|
|
|
—
|
|
|
272,658
|
|
Amortization of
customer relationships
|
|
|
(16,363)
|
|
|
(12,500)
|
|
|
—
|
|
|
—
|
|
|
(28,863)
|
|
Total
revenues
|
|
|
159,356
|
|
|
84,439
|
|
|
—
|
|
|
—
|
|
|
243,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
13,197
|
|
|
48,611
|
|
|
—
|
|
|
—
|
|
|
61,808
|
|
General and
administrative (excluding equity-based compensation)
|
|
|
6,741
|
|
|
3,098
|
|
|
—
|
|
|
627
|
|
|
10,466
|
|
Facility
idling
|
|
|
—
|
|
|
1,512
|
|
|
—
|
|
|
—
|
|
|
1,512
|
|
Equity-based
compensation
|
|
|
1,348
|
|
|
450
|
|
|
—
|
|
|
18,331
|
|
|
20,129
|
|
Impairment of property
and equipment
|
|
|
—
|
|
|
407,848
|
|
|
—
|
|
|
—
|
|
|
407,848
|
|
Impairment of
goodwill
|
|
|
—
|
|
|
43,759
|
|
|
—
|
|
|
—
|
|
|
43,759
|
|
Impairment of customer
relationships
|
|
|
—
|
|
|
5,871
|
|
|
—
|
|
|
—
|
|
|
5,871
|
|
Depreciation
|
|
|
11,709
|
|
|
12,751
|
|
|
—
|
|
|
—
|
|
|
24,460
|
|
Accretion and change
in fair value of contingent acquisition consideration
|
|
|
—
|
|
|
1,977
|
|
|
—
|
|
|
—
|
|
|
1,977
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
Total
expenses
|
|
|
32,995
|
|
|
525,931
|
|
|
—
|
|
|
18,958
|
|
|
577,884
|
|
Operating
income
|
|
|
126,361
|
|
|
(441,492)
|
|
|
—
|
|
|
(18,958)
|
|
|
(334,089)
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,134)
|
|
|
(36,134)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
18,478
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,478
|
|
Income (loss) before
taxes
|
|
|
144,839
|
|
|
(441,492)
|
|
|
—
|
|
|
(55,092)
|
|
|
(351,745)
|
|
Provision for income
tax benefit
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,268
|
|
|
62,268
|
|
Net income (loss) and
comprehensive income (loss)
|
|
$
|
144,839
|
|
|
(441,492)
|
|
|
—
|
|
|
7,176
|
|
|
(289,477)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
217,582
|
|
PRO FORMA ANTERO
MIDSTREAM CORPORATION
|
Condensed
Consolidated Results of Segment Operations
|
Three Months Ended
September 30, 2018
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
Water
|
|
|
|
|
|
Pro
Forma
|
|
|
|
Gathering and
|
|
Handling
and
|
|
Pro
Forma
|
|
|
|
Consolidated
|
|
|
|
Processing
|
|
Treatment
|
|
Adjustments
|
|
Unallocated
|
|
Total
|
|
Three months ended
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue–Antero
Resources
|
|
$
|
133,202
|
|
|
132,898
|
|
|
—
|
|
|
—
|
|
|
266,100
|
|
Revenue–third-party
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
105
|
|
Amortization of
customer relationships
|
|
|
—
|
|
|
—
|
|
|
(17,843)
|
|
|
—
|
|
|
(17,843)
|
|
Total
revenues
|
|
|
133,202
|
|
|
133,003
|
|
|
(17,843)
|
|
|
—
|
|
|
248,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
12,317
|
|
|
69,158
|
|
|
—
|
|
|
—
|
|
|
81,475
|
|
General and
administrative (excluding equity-based compensation)
|
|
|
8,117
|
|
|
2,373
|
|
|
—
|
|
|
2,229
|
|
|
12,719
|
|
Equity-based
compensation
|
|
|
3,666
|
|
|
862
|
|
|
—
|
|
|
8,574
|
|
|
13,102
|
|
Impairment of property
and equipment
|
|
|
1,157
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,157
|
|
Depreciation
|
|
|
25,830
|
|
|
12,626
|
|
|
3,934
|
|
|
—
|
|
|
42,390
|
|
Accretion and change
in fair value of contingent acquisition consideration
|
|
|
—
|
|
|
4,020
|
|
|
—
|
|
|
—
|
|
|
4,020
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
Total
expenses
|
|
|
51,087
|
|
|
89,072
|
|
|
3,934
|
|
|
10,803
|
|
|
154,896
|
|
Operating
income
|
|
|
82,115
|
|
|
43,931
|
|
|
(21,777)
|
|
|
(10,803)
|
|
|
93,466
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
—
|
|
|
—
|
|
|
(5,437)
|
|
|
(17,056)
|
|
|
(22,493)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
10,706
|
|
|
—
|
|
|
(1,471)
|
|
|
—
|
|
|
9,235
|
|
Income before
taxes
|
|
|
92,821
|
|
|
43,931
|
|
|
(28,685)
|
|
|
(27,859)
|
|
|
80,208
|
|
Provision for income
tax expense
|
|
|
—
|
|
|
—
|
|
|
(13,316)
|
|
|
(8,917)
|
|
|
(22,233)
|
|
Net income and
comprehensive income
|
|
$
|
92,821
|
|
|
43,931
|
|
|
(42,001)
|
|
|
(36,776)
|
|
|
57,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
183,776
|
|
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SOURCE Antero Midstream Corporation