DENVER, April 28, 2021 /PRNewswire/ -- Antero
Midstream Corporation (NYSE: AM) ("Antero Midstream" or
the "Company") today announced its first quarter 2021 financial and
operational results. The relevant consolidated financial
statements are included in Antero Midstream's Quarterly Report on
Form 10-Q for the quarter ended March 31,
2021.
First Quarter 2021 Earnings Highlights:
- Net income was $83 million, or
$0.17 per share, compared to an
$0.81 per share net loss in the prior
year quarter
- Adjusted Net Income was $101
million, or $0.21 per share,
compared to $0.23 per share in the
prior year quarter (non-GAAP measure)
- Adjusted EBITDA was $219
million, a 1% increase compared to the prior year quarter
(non-GAAP measure)
- Capital expenditures were $30
million, a 64% decrease compared to the prior year
quarter
- Net cash provided by operating activities was $166 million, a 13% increase compared to the
prior year quarter
- Free Cash Flow before dividends was $146 million, a 51% increase compared to the
prior year quarter (non-GAAP measure)
- Free Cash Flow after dividends was $39 million, compared to a $50 million deficit in the prior year quarter
(non-GAAP measure)
- Net Debt at quarter end was $3.1
billion and Net Debt to last twelve months Adjusted EBITDA
was 3.7x, both consistent with December 31,
2020 (non-GAAP measure)
Paul Rady, Chairman and CEO said,
"Antero Midstream delivered another strong operational quarter
focused on cost reductions and capital discipline. This allowed us
to generate $146 million of Free Cash
Flow before dividends and for the second time in company history,
generate Free Cash Flow after dividends. We believe this capital
discipline and the ability to internally finance both our capital
budget and return of capital to shareholders will serve Antero
Midstream well going forward."
Mr. Rady further added, "Antero Midstream's primary customer,
Antero Resources, made significant strides in improving its
financial strength, generating over $400
million of Free Cash Flow during the first quarter. As a
result of Antero Resources' Free Cash Flow profile, Antero
Resources' leverage has significantly improved to 2.0x as of
March 31, 2021. This improvement in
financial strength at Antero Resources directly benefits Antero
Midstream."
For a discussion of the non-GAAP financial measures including
Adjusted Net Income, Adjusted EBITDA, Free Cash Flow and Net Debt
please see "Non-GAAP Financial Measures."
First Quarter 2021 Financial Results
Low pressure gathering volumes for the first quarter of 2021
averaged 2,853 MMcf/d, a 5% increase as compared to the prior
year quarter. Compression volumes for the first quarter of
2021 averaged 2,706 MMcf/d, an 8% increase as compared to the first
quarter of 2020. High pressure gathering volumes for the
first quarter of 2021 averaged 2,812 MMcf/d, a 4% increase
compared to the first quarter of 2020. Fresh water delivery volumes
averaged 104 MBbl/d during the quarter, a 43% decrease
compared to the first quarter of 2020, due to a decrease in
completion activities by Antero Resources.
Gross processing volumes from the Company's processing and
fractionation joint venture with MPLX ("Joint Venture") averaged
1,428 MMcf/d for the first quarter of 2021, an 8% increase
compared to the prior year quarter. Joint Venture processing
capacity was over 100% utilized during the quarter based on
nameplate processing capacity of 1.4 Bcf/d. Gross Joint
Venture fractionation volumes averaged 38 MBbl/d, a 15%
increase compared to the prior year quarter. Joint Venture
fractionation capacity was 95% utilized during the quarter relative
to fractionation capacity of 40 MBbl/d.
|
|
Three Months
Ended
March
31,
|
|
|
|
|
Average Daily
Volumes:
|
|
2020
|
|
2021
|
|
%
Change
|
|
|
Low Pressure Gathering
(MMcf/d)
|
|
2,717
|
|
2,853
|
|
5%
|
|
|
Compression
(MMcf/d)
|
|
2,516
|
|
2,706
|
|
8%
|
|
|
High Pressure
Gathering (MMcf/d)
|
|
2,697
|
|
2,812
|
|
4%
|
|
|
Fresh Water Delivery
(MBbl/d)
|
|
183
|
|
104
|
|
(43)%
|
|
|
Gross Joint Venture
Processing (MMcf/d)
|
|
1,324
|
|
1,428
|
|
8%
|
|
|
Gross Joint Venture
Fractionation (MBbl/d)
|
|
33
|
|
38
|
|
15%
|
|
|
For the three months ended March 31,
2021, revenues were $224
million, comprised of $185
million from the Gathering and Processing segment and
$57 million from the Water Handling segment, net of
$18 million of amortization of customer relationships.
Water Handling revenues included $19
million from wastewater handling and high rate water
transfer services.
Direct operating expenses for the Gathering and Processing and
Water Handling segments were $17
million and $22 million, respectively, for a total of
$39 million, compared to $49 million in total direct
operating expenses in the prior year quarter. Water Handling
operating expenses included $18 million from wastewater
handling and high rate water transfer services. The decrease in
direct operating expenses was driven primarily by lower costs
associated with flowback and produced water due to Antero
Midstream's blending operations. General and administrative
expenses excluding equity-based compensation were $14 million
during the first quarter of 2021. Total operating expenses
during the first quarter of 2021 included $4 million of equity
compensation expense, a $1 million impairment, a $4 million loss on asset sale and
$27 million of depreciation.
Net income was $83 million, or $0.17 per share. Net income adjusted for
amortization of customer relationships, impairment expense and loss
on asset sale, or Adjusted Net Income, was $101 million.
Adjusted Net Income per share was $0.21 per share, a 9% decrease compared to the
prior year quarter.
The following table reconciles Net Income (Loss) to Adjusted Net
Income:
|
|
Three Months
Ended March
31,
|
|
|
|
2020
|
|
|
2021
|
|
Net Income
(Loss)
|
|
$
|
(392,933)
|
|
|
83,441
|
|
Amortization of
customer relationships
|
|
|
17,605
|
|
|
17,668
|
|
Impairment
expense
|
|
|
664,544
|
|
|
1,379
|
|
Loss on asset
sale
|
|
|
—
|
|
|
3,763
|
|
Tax effect of
reconciling items(1)
|
|
|
(179,963)
|
|
|
(5,680)
|
|
Adjusted Net
Income
|
|
$
|
109,253
|
|
|
100,571
|
|
(1)
|
Statutory tax rate
was approximately 24.7% for 2020 and 24.9% for 2021. Includes
effective tax rate impact from net operating loss carryforward
under CARES Act.
|
Adjusted EBITDA was $219 million, a 1% increase compared to
the prior year quarter. Interest expense was $43 million, a 14% increase compared to the prior
year quarter, driven by the issuance of the senior notes due 2026
that displaced lower cost borrowings on Antero Midstream's credit
facility. Capital expenditures were $30
million, a 64% decrease compared to the prior year quarter.
Free Cash Flow before dividends was $146 million, a 51%
increase compared to the prior year quarter and Free Cash Flow
after dividends was $39 million
compared to a deficit of $50 million
in the prior year quarter.
The following table reconciles Net Income (Loss) to Adjusted
EBITDA and Free Cash Flow before and after dividends:
|
|
Three Months
Ended March
31,
|
|
|
|
2020
|
|
|
2021
|
|
Net Income
(Loss)
|
|
$
|
(392,933)
|
|
|
83,441
|
|
Interest expense,
net
|
|
|
37,631
|
|
|
42,866
|
|
Provision for income
tax expense (benefit)
|
|
|
(144,785)
|
|
|
28,024
|
|
Amortization of
customer relationships
|
|
|
17,605
|
|
|
17,668
|
|
Depreciation
expense
|
|
|
27,343
|
|
|
26,850
|
|
Impairment
expense
|
|
|
664,544
|
|
|
1,379
|
|
Accretion of asset
retirement obligation
|
|
|
42
|
|
|
119
|
|
Equity-based
compensation
|
|
|
3,338
|
|
|
4,012
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(19,077)
|
|
|
(20,744)
|
|
Distributions from
unconsolidated affiliates
|
|
|
23,628
|
|
|
31,910
|
|
Loss on asset
sale
|
|
|
—
|
|
|
3,763
|
|
Adjusted
EBITDA
|
|
$
|
217,336
|
|
|
219,288
|
|
Interest
expense
|
|
|
(37,631)
|
|
|
(42,866)
|
|
Total capital
expenditures (accrual-based)
|
|
|
(82,939)
|
|
|
(29,926)
|
|
Free Cash Flow
before dividends
|
|
$
|
$96,766
|
|
|
146,496
|
|
Dividends declared
(accrual-based)
|
|
|
(146,522)
|
|
|
(107,406)
|
|
Free Cash Flow
after dividends
|
|
$
|
(49,756)
|
|
|
39,090
|
|
The following table reconciles net cash provided by operating
activities to Free Cash Flow before dividends:
|
|
Three Months
Ended March
31,
|
|
|
|
2020
|
|
|
2021
|
|
Net cash provided
by operating activities
|
|
$
|
146,986
|
|
|
165,701
|
|
Amortization of
deferred financing costs
|
|
|
(1,090)
|
|
|
(1,388)
|
|
Settlement of asset
retirement obligations
|
|
|
—
|
|
|
408
|
|
Payment of contingent
consideration in excess of acquisition fair value
|
|
|
8,076
|
|
|
—
|
|
Income tax expense
(benefit)
|
|
|
(144,785)
|
|
|
28,024
|
|
Deferred income
taxes
|
|
|
88,328
|
|
|
(28,024)
|
|
Changes in working
capital
|
|
|
82,190
|
|
|
11,701
|
|
Total capital
expenditures (accrual-based)
|
|
|
(82,939)
|
|
|
(29,926)
|
|
Free Cash Flow
before dividends
|
|
$
|
96,766
|
|
|
146,496
|
|
Dividends declared
(accrual-based)
|
|
|
(146,522)
|
|
|
(107,406)
|
|
Free Cash Flow
after dividends
|
|
$
|
(49,756)
|
|
|
39,090
|
|
First Quarter 2021 Operating Update
Gathering and Processing — During the first
quarter of 2021, Antero Midstream connected 14 wells to its
gathering system. The Company's 3.2 Bcf/d of compression capacity
was approximately 85% utilized during the quarter. Joint Venture
processing capacity of 1.4 Bcf/d was approximately 100% utilized
during the quarter and Joint Venture fractionation capacity was 95%
utilized during the quarter.
Water Handling — Antero Midstream's
Marcellus water delivery systems serviced 24 well completions
during the first quarter of 2021, a 44% decrease from the prior
year quarter, driven by a reduction in completion activity by
Antero Resources as it transitioned to a maintenance capital
development program.
Balance Sheet and Liquidity
As of March 31, 2021, Antero
Midstream had approximately $625
million drawn on its $2.13
billion bank credit facility, resulting in approximately
$1.5 billion of liquidity. Antero
Midstream's Net Debt to trailing twelve months Adjusted EBITDA
("Leverage") was 3.7x as of March 31,
2021.
Capital Investments
Total accrued capital expenditures including investments in the
Joint Venture were $30 million during
the first quarter of 2021. Gathering, compression, and water
infrastructure capital investments totaled $29 million and investments in unconsolidated
affiliates for the Joint Venture were $1
million. Of the $29 million
invested in gathering, compression, and water infrastructure,
$18 million was in gathering and
compression assets and $11 million
was in water handling assets.
Michael Kennedy, CFO of Antero
Midstream, said, "The first quarter of 2021 marked the low point in
forecasted capital expenditures for 2021 as we begin construction
on the infrastructure supporting the drilling partnership that is
expected to generate future throughput growth on Antero Midstream
dedicated acreage. As a result, we expect to invest approximately
two-thirds of our $240 million to
$260 million capital budget in the
second and third quarter of 2021 combined, which results in an
increase in quarterly capital expenditures compared to the first
quarter of 2021. Importantly, during this period of increased
capital expenditures we expect our leverage and net debt to remain
stable at 3.7x and $3.1 billion,
respectively."
Conference Call
A conference call for Antero Midstream is scheduled on
Thursday, April 29, 2021 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 at
877-407-9126 (U.S.), or 201-493-6751 (International) and reference
"Antero Midstream". A telephone replay of the call will be
available until Thursday, May 6, 2021
at 10:00 am MT at 877-660-6853 (U.S.)
or 201-612-7415 (International) using the conference ID: 13718719.
To access the live webcast and view the related earnings conference
call presentation, visit Antero Midstream's website at
www.anteromidstream.com. The webcast will be archived for
replay until Thursday, May 6, 2021 at
10:00 am MT.
Non-GAAP Financial Measures and Definitions
Antero Midstream uses certain non-GAAP financial measures.
Antero Midstream defines Adjusted Net Income as net income (loss)
plus amortization of customer contracts, impairment expense, and
loss on asset sale, net of tax effect of reconciling items. Antero
Midstream uses Adjusted Net Income to assess the operating
performance of its assets. Antero Midstream defines Adjusted EBITDA
as net income (loss) plus interest expense, provision for income
tax expense (benefit), amortization of customer relationships,
depreciation expense, impairment expense, accretion, equity-based
compensation expense, excluding equity in earnings of
unconsolidated affiliates, plus cash distributions from
unconsolidated affiliates and loss on asset sale.
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 defines Free Cash Flow before dividends as
Adjusted EBITDA less interest expense and accrued capital
expenditures. Free Cash Flow after dividends is defined as Free
Cash Flow before dividends less dividends declared for the quarter.
Antero Midstream uses Free Cash Flow before and after dividends as
a performance metric to compare the cash generating performance of
Antero Midstream from period to period.
Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow before
and after dividends are non-GAAP financial measures. The GAAP
measure most directly comparable to Adjusted EBITDA and Adjusted
Net Income is Net Income. The GAAP measure most directly comparable
to Free Cash Flow before and after dividends is cash flows provided
by (used in) operating activities. Such non-GAAP financial
measures should not be considered as alternatives to the GAAP
measures of Net Income and cash flows provided by (used in)
operating activities. The presentations of such measures are
not made in accordance with GAAP and have important limitations as
analytical tools because they include some, but not all, items that
affect Net Income and cash flows provided by (used in) operating
activities. You should not consider any or all such measures
in isolation or as a substitute for analyses of results as reported
under GAAP. Antero Midstream's definitions of such measures
may not be comparable to similarly titled measures of other
companies.
Antero Midstream defines Net Debt as consolidated total debt
less cash and cash equivalents. Antero Midstream views Net Debt as
an important indicator in evaluating Antero Midstream's financial
leverage.
This release also includes certain non-GAAP financial
information for Antero Resources. For a more information regarding
those measures, please see Antero Resources' press release dated
today, a copy of which can be found on Antero Resources website,
www.anteroresources.com. For additional information on the drilling
partnership please see Antero Resources' press release and Annual
Report on Form 10-K, which can also be found at
www.anteroresources.com.
The Company's ability to pay future dividends is substantially
dependent upon the development and drilling plan of Antero
Resources, which itself is substantially dependent upon the review
and approval by the Board of Directors of Antero Resources of its
capital budget on an annual basis. The Board of Directors of
Antero Midstream will take into consideration many factors,
including the capital budget of Antero Resources adopted by its
Board of Directors and the capital resources and liquidity of
Antero Midstream at the time, prior to approving future
dividends.
The following table reconciles cash paid for capital
expenditures and accrued capital expenditures during the period (in
thousands):
|
Three Months Ended
March 31
|
|
|
|
2020
|
|
|
2021
|
|
Capital
expenditures (as reported on a cash basis)
|
|
$
|
79,673
|
|
|
29,146
|
|
Change in accrued
capital costs
|
|
|
3,266
|
|
|
780
|
|
Capital
expenditures (accrual basis)
|
|
$
|
82,939
|
|
|
29,926
|
|
The following table reconciles consolidated total debt to
consolidated net debt, excluding debt premiums and issuance costs,
("Net Debt") as used in this release (in thousands):
|
|
December
31, 2020
|
|
March
31, 2021
|
|
Bank credit
facility
|
$
|
613,500
|
|
624,500
|
|
|
5.375% senior notes
due 2024
|
|
650,000
|
|
650,000
|
|
|
7.875% senior notes
due 2026
|
|
550,000
|
|
550,000
|
|
|
5.75% senior notes due
2027
|
|
650,000
|
|
650,000
|
|
|
5.75% senior notes due
2028
|
|
650,000
|
|
650,000
|
|
|
Consolidated total
debt
|
|
3,113,500
|
|
3,124,500
|
|
|
Cash and cash
equivalents
|
|
(640)
|
|
(261)
|
|
|
Consolidated net
debt
|
$
|
3,112,860
|
|
3,124,239
|
|
The following table reconciles net loss to Adjusted EBITDA for
the last twelve months as used in this release (in thousands):
|
|
|
|
|
|
|
|
|
|
|
12 months
ended December 31,
2020
|
|
12 months
ended March 31,
2021
|
|
Net Income
(Loss)
|
|
$
|
(122,527)
|
|
353,847
|
|
Amortization of
customer relationships
|
|
|
70,672
|
|
70,735
|
|
Impairment
expense
|
|
|
673,640
|
|
10,475
|
|
Interest
expense
|
|
|
147,007
|
|
152,242
|
|
Income tax expense
(benefit)
|
|
|
(55,688)
|
|
117,121
|
|
Depreciation
expense
|
|
|
108,790
|
|
108,297
|
|
Accretion of asset
retirement obligation
|
|
|
180
|
|
257
|
|
Equity-based
compensation
|
|
|
12,778
|
|
13,452
|
|
Loss on asset
sale
|
|
|
2,929
|
|
6,692
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(86,430)
|
|
(88,097)
|
|
Distributions from
unconsolidated affiliates
|
|
|
98,858
|
|
107,140
|
|
Adjusted
EBITDA
|
|
$
|
850,209
|
|
852,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Antero Midstream Corporation is a Delaware corporation that owns, operates and
develops midstream gathering, compression, processing and
fractionation assets located in the Appalachian Basin, as well as
integrated water assets that primarily service Antero Resources
Corporation's properties.
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 statements regarding Antero Midstream's
ability to execute its business plan and return capital to its
stockholders, information regarding Antero Midstream's return of
capital policy, information regarding long-term financial and
operating outlooks for Antero Midstream and Antero Resources,
information regarding Antero Resources' expected future growth and
its ability to meet its drilling and development plan and
the participation level of Antero Resources' drilling partner and
the impact on demand for Antero Midstream's services as a result of
incremental production by Antero Resources, 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 our business, 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, commodity price volatility,
inflation, environmental risks, Antero Resources' drilling and
completion and other operating risks, regulatory changes, the
uncertainty inherent in projecting Antero Resources' future rates
of production, cash flows and access to capital, the timing of
development expenditures, impacts of world health events, including
the COVID-19 pandemic, 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,
2020.
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December 31,
|
|
March 31,
|
|
|
|
2020
|
|
2021
|
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
640
|
|
|
261
|
|
Accounts
receivable–Antero Resources
|
|
|
73,722
|
|
|
88,773
|
|
Accounts
receivable–third party
|
|
|
839
|
|
|
227
|
|
Income tax
receivable
|
|
|
17,251
|
|
|
940
|
|
Other current
assets
|
|
|
1,479
|
|
|
966
|
|
Total current
assets
|
|
|
93,931
|
|
|
91,167
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
3,254,044
|
|
|
3,249,726
|
|
Investments in
unconsolidated affiliates
|
|
|
722,478
|
|
|
712,069
|
|
Deferred tax
asset
|
|
|
103,402
|
|
|
75,378
|
|
Customer
relationships
|
|
|
1,427,447
|
|
|
1,409,779
|
|
Other assets,
net
|
|
|
9,610
|
|
|
8,641
|
|
Total
assets
|
|
$
|
5,610,912
|
|
|
5,546,760
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable–Antero Resources
|
|
$
|
3,862
|
|
|
2,927
|
|
Accounts payable–third
party
|
|
|
9,495
|
|
|
14,898
|
|
Accrued
liabilities
|
|
|
74,947
|
|
|
56,598
|
|
Other current
liabilities
|
|
|
5,701
|
|
|
5,327
|
|
Total current
liabilities
|
|
|
94,005
|
|
|
79,750
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
3,091,626
|
|
|
3,103,428
|
|
Other
|
|
|
6,995
|
|
|
6,716
|
|
Total
liabilities
|
|
|
3,192,626
|
|
|
3,189,894
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value: 100,000 authorized as of both December 31, 2020 and
March 31, 2021
|
|
|
|
|
|
|
|
Series A non-voting
perpetual preferred stock; 12 designated and 10 issued and
outstanding as of both December 31, 2020
and March 31, 2021
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; 2,000,000 authorized; 476,639 and 476,907 issued and
outstanding as of December 31, 2020 and March
31, 2021, respectively
|
|
|
4,766
|
|
|
4,769
|
|
Additional paid-in
capital
|
|
|
2,877,612
|
|
|
2,732,748
|
|
Accumulated
deficit
|
|
|
(464,092)
|
|
|
(380,651)
|
|
Total stockholders'
equity
|
|
|
2,418,286
|
|
|
2,356,866
|
|
Total liabilities and
stockholders' equity
|
|
$
|
5,610,912
|
|
|
5,546,760
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss)
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2020
|
|
2021
|
|
Revenue:
|
|
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
|
$
|
163,129
|
|
|
185,161
|
|
Water handling–Antero
Resources
|
|
|
98,184
|
|
|
56,603
|
|
Water handling–third
party
|
|
|
—
|
|
|
25
|
|
Amortization of
customer relationships
|
|
|
(17,605)
|
|
|
(17,668)
|
|
Total
revenue
|
|
|
243,708
|
|
|
224,121
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
48,728
|
|
|
39,314
|
|
General and
administrative (including $3,338 and $4,012 of equity-based
compensation in
2020 and 2021, respectively)
|
|
|
13,537
|
|
|
17,930
|
|
Facility
idling
|
|
|
8,678
|
|
|
1,179
|
|
Impairment of
goodwill
|
|
|
575,461
|
|
|
—
|
|
Impairment of property
and equipment
|
|
|
89,083
|
|
|
1,379
|
|
Depreciation
|
|
|
27,343
|
|
|
26,850
|
|
Accretion of asset
retirement obligations
|
|
|
42
|
|
|
119
|
|
Loss on asset
sale
|
|
|
—
|
|
|
3,763
|
|
Total operating
expenses
|
|
|
762,872
|
|
|
90,534
|
|
Operating income
(loss)
|
|
|
(519,164)
|
|
|
133,587
|
|
Interest expense,
net
|
|
|
(37,631)
|
|
|
(42,866)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
19,077
|
|
|
20,744
|
|
Income (loss) before
income taxes
|
|
|
(537,718)
|
|
|
111,465
|
|
Provision for income
tax benefit (expense)
|
|
|
144,785
|
|
|
(28,024)
|
|
Net income (loss) and
comprehensive income (loss)
|
|
$
|
(392,933)
|
|
|
83,441
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share–basic
|
|
$
|
(0.81)
|
|
|
0.17
|
|
Net income (loss) per
share–diluted
|
|
|
(0.81)
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
483,103
|
|
|
476,850
|
|
Diluted
|
|
|
483,103
|
|
|
479,272
|
|
ANTERO MIDSTREAM
CORPORATION
|
Selected Operating
Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Amount
of
|
|
|
|
|
|
|
March 31,
|
|
Increase
|
|
Percentage
|
|
|
2020
|
|
2021
|
|
or
Decrease
|
|
Change
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
247,223
|
|
|
256,802
|
|
|
9,579
|
|
|
4
|
%
|
Gathering—high
pressure (MMcf)
|
|
|
245,446
|
|
|
253,091
|
|
|
7,645
|
|
|
3
|
%
|
Compression
(MMcf)
|
|
|
228,967
|
|
|
243,562
|
|
|
14,595
|
|
|
6
|
%
|
Fresh water delivery
(MBbl)
|
|
|
16,620
|
|
|
9,400
|
|
|
(7,220)
|
|
|
(43)
|
%
|
Other fluid handling
(MBbl)
|
|
|
5,600
|
|
|
3,951
|
|
|
(1,649)
|
|
|
(29)
|
%
|
Wells serviced by
fresh water delivery
|
|
|
43
|
|
|
24
|
|
|
(19)
|
|
|
(44)
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
2,717
|
|
|
2,853
|
|
|
136
|
|
|
5
|
%
|
Gathering—high
pressure (MMcf/d)
|
|
|
2,697
|
|
|
2,812
|
|
|
115
|
|
|
4
|
%
|
Compression
(MMcf/d)
|
|
|
2,516
|
|
|
2,706
|
|
|
190
|
|
|
8
|
%
|
Fresh water delivery
(MBbl/d)
|
|
|
183
|
|
|
104
|
|
|
(79)
|
|
|
(43)
|
%
|
Other fluid handling
(MBbl/d)
|
|
|
61
|
|
|
44
|
|
|
(17)
|
|
|
(28)
|
%
|
Average realized
fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
|
$
|
0.33
|
|
|
0.34
|
|
|
0.01
|
|
|
3
|
%
|
Average gathering—high
pressure fee ($/Mcf)
|
|
$
|
0.20
|
|
|
0.20
|
|
|
—
|
|
|
*
|
|
Average compression
fee ($/Mcf)
|
|
$
|
0.20
|
|
|
0.20
|
|
|
—
|
|
|
*
|
|
Average fresh water
delivery fee ($/Bbl)
|
|
$
|
3.96
|
|
|
3.97
|
|
|
0.01
|
|
|
—
|
%
|
Joint Venture
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing—Joint
Venture (MMcf)
|
|
|
120,514
|
|
|
128,538
|
|
|
8,024
|
|
|
7
|
%
|
Fractionation—Joint
Venture (MBbl)
|
|
|
2,984
|
|
|
3,431
|
|
|
447
|
|
|
15
|
%
|
Processing—Joint
Venture (MMcf/d)
|
|
|
1,324
|
|
|
1,428
|
|
|
104
|
|
|
8
|
%
|
Fractionation—Joint
Venture (MBbl/d)
|
|
|
33
|
|
|
38
|
|
|
5
|
|
|
15
|
%
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Results of Segment Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2021
|
|
|
|
Gathering and
|
|
Water
|
|
|
|
Consolidated
|
|
(in
thousands)
|
|
Processing
|
|
Handling
|
|
Unallocated
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue–Antero
Resources
|
|
$
|
185,161
|
|
|
56,603
|
|
|
—
|
|
|
241,764
|
|
Revenue–third-party
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
Gathering—low pressure
rebate
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Amortization of
customer relationships
|
|
|
(9,271)
|
|
|
(8,397)
|
|
|
—
|
|
|
(17,668)
|
|
Total
revenues
|
|
|
175,890
|
|
|
48,231
|
|
|
—
|
|
|
224,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
17,236
|
|
|
22,078
|
|
|
—
|
|
|
39,314
|
|
General and
administrative (excluding equity-based compensation)
|
|
|
5,924
|
|
|
6,620
|
|
|
1,374
|
|
|
13,918
|
|
Equity-based
compensation
|
|
|
2,725
|
|
|
1,060
|
|
|
227
|
|
|
4,012
|
|
Facility
idling
|
|
|
—
|
|
|
1,179
|
|
|
—
|
|
|
1,179
|
|
Impairment of property
and equipment
|
|
|
1,218
|
|
|
161
|
|
|
—
|
|
|
1,379
|
|
Depreciation
|
|
|
14,713
|
|
|
12,137
|
|
|
—
|
|
|
26,850
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
119
|
|
Loss on asset
sale
|
|
|
3,763
|
|
|
—
|
|
|
—
|
|
|
3,763
|
|
Total operating
expenses
|
|
|
45,579
|
|
|
43,354
|
|
|
1,601
|
|
|
90,534
|
|
Operating income
(loss)
|
|
|
130,311
|
|
|
4,877
|
|
|
(1,601)
|
|
|
133,587
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
—
|
|
|
—
|
|
|
(42,866)
|
|
|
(42,866)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
20,744
|
|
|
—
|
|
|
—
|
|
|
20,744
|
|
Income (loss) before
taxes
|
|
|
151,055
|
|
|
4,877
|
|
|
(44,467)
|
|
|
111,465
|
|
Provision for income
tax expense
|
|
|
—
|
|
|
—
|
|
|
(28,024)
|
|
|
(28,024)
|
|
Net income and
comprehensive income
|
|
$
|
151,055
|
|
|
4,877
|
|
|
(72,491)
|
|
|
83,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
$
|
219,288
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2020
|
|
2021
|
|
Cash flows provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(392,933)
|
|
|
83,441
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
27,343
|
|
|
26,850
|
|
Payment of contingent
consideration in excess of acquisition date fair value
|
|
|
(8,076)
|
|
|
—
|
|
Accretion of asset
retirement obligations
|
|
|
42
|
|
|
119
|
|
Impairment
|
|
|
664,544
|
|
|
1,379
|
|
Deferred income tax
expense (benefit)
|
|
|
(88,328)
|
|
|
28,024
|
|
Equity-based
compensation
|
|
|
3,338
|
|
|
4,012
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(19,077)
|
|
|
(20,744)
|
|
Distributions from
unconsolidated affiliates
|
|
|
23,628
|
|
|
31,910
|
|
Amortization of
customer relationships
|
|
|
17,605
|
|
|
17,668
|
|
Amortization of
deferred financing costs
|
|
|
1,090
|
|
|
1,388
|
|
Settlement of asset
retirement obligations
|
|
|
—
|
|
|
(408)
|
|
Loss on asset
sale
|
|
|
—
|
|
|
3,763
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
|
10,460
|
|
|
(15,051)
|
|
Accounts
receivable–third party
|
|
|
998
|
|
|
808
|
|
Income tax
receivable
|
|
|
(56,457)
|
|
|
16,311
|
|
Other current
assets
|
|
|
517
|
|
|
593
|
|
Accounts
payable–Antero Resources
|
|
|
(1,470)
|
|
|
(935)
|
|
Accounts payable–third
party
|
|
|
6,614
|
|
|
4,786
|
|
Accrued
liabilities
|
|
|
(42,852)
|
|
|
(18,213)
|
|
Net cash provided by
operating activities
|
|
|
146,986
|
|
|
165,701
|
|
Cash flows provided
by (used in) investing activities:
|
|
|
|
|
|
|
|
Additions to gathering
systems and facilities
|
|
|
(54,659)
|
|
|
(15,059)
|
|
Additions to water
handling systems
|
|
|
(13,324)
|
|
|
(13,330)
|
|
Investments in
unconsolidated affiliates
|
|
|
(11,690)
|
|
|
(757)
|
|
Cash received in asset
sale
|
|
|
—
|
|
|
1,493
|
|
Change in other
assets
|
|
|
2,296
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(77,377)
|
|
|
(27,653)
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
|
|
|
|
Dividends to
stockholders
|
|
|
(148,876)
|
|
|
(147,194)
|
|
Dividends to preferred
stockholders
|
|
|
(138)
|
|
|
(138)
|
|
Repurchases of common
stock
|
|
|
(15,824)
|
|
|
—
|
|
Payments of deferred
financing costs
|
|
|
—
|
|
|
(543)
|
|
Borrowings on bank
credit facilities, net
|
|
|
211,000
|
|
|
11,000
|
|
Payment of contingent
acquisition consideration
|
|
|
(116,924)
|
|
|
—
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(26)
|
|
|
(1,541)
|
|
Other
|
|
|
(56)
|
|
|
(11)
|
|
Net cash used in
financing activities
|
|
|
(70,844)
|
|
|
(138,427)
|
|
Net decrease in cash
and cash equivalents
|
|
|
(1,235)
|
|
|
(379)
|
|
Cash and cash
equivalents, beginning of period
|
|
|
1,235
|
|
|
640
|
|
Cash and cash
equivalents, end of period
|
|
$
|
—
|
|
|
261
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
67,609
|
|
|
58,739
|
|
Cash received during
the period for income taxes
|
|
$
|
—
|
|
|
16,913
|
|
Increase in accrued
capital expenditures and accounts payable for property and
equipment
|
|
$
|
3,266
|
|
|
780
|
|
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multimedia:http://www.prnewswire.com/news-releases/antero-midstream-announces-first-quarter-2021-financial-and-operational-results-301279554.html
SOURCE Antero Midstream Corporation