DENVER, July 27,
2022 /PRNewswire/ -- Antero Midstream Corporation
(NYSE: AM) ("Antero Midstream" or the "Company") today
announced its second quarter 2022 financial and operational
results. The relevant unaudited condensed consolidated
financial statements are included in Antero Midstream's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2022.
Second Quarter 2022 Earnings Highlights:
- Net Income was $79 million, or
$0.17 per share, in line with the
prior year quarter
- Adjusted Net Income was $96
million, or $0.20 per share
(non-GAAP measure)
- Adjusted EBITDA was $221
million (non-GAAP measure)
- Capital expenditures were $70
million
- Net cash provided by operating activities was $170 million
- Free Cash Flow before dividends was $105 million (non-GAAP measure)
- Low pressure gathering volumes increased by 3% compared to
the prior year quarter
- Fresh water delivery volumes increased by 6% compared to the
prior year quarter
- Placed on line the Castle Peak compressor station, adding
160 MMcf/d of capacity in the liquids-rich Marcellus shale
Paul Rady, Chairman and CEO said,
"During the second quarter Antero Midstream successfully placed on
line the Castle Peak compressor station in the liquids-rich
Marcellus shale. This compressor station, which added 160 MMcf/d of
initial capacity, is the fourth of six compressor stations in
Antero Midstream's liquids-rich midstream corridor in Tyler and Wetzel Counties in West Virginia. Looking forward, we have
identified underutilized compressor units and equipment that will
be relocated and reused to expand this station by an additional 80
MMcf/d in 2023. This results in approximately $5 million of estimated capital savings on this
compressor station alone. Additionally, we have identified further
opportunities for compressor unit relocation and reuse that are
expected to generate another $15
million of capital savings, or $20
million of total capital savings in 2023 and 2024."
Mr. Rady added, "We continue to be encouraged by the well
results seen in the liquids-rich Marcellus corridor. These recent
pads tied into the integrated gathering and processing system drove
the increase in volumes during the second quarter. Importantly, the
well control and results give us confidence in delivering the
planned throughput and EBITDA growth over the next several
years."
For a discussion of the non-GAAP financial measures,
including Adjusted EBITDA, Adjusted Net Income, Free Cash Flow
before dividends, and Net Debt, please see "Non-GAAP
Financial Measures."
Second Quarter 2022 Financial Results
Low pressure gathering volumes for the second quarter of 2022
averaged 2,970 MMcf/d, a 3% increase as compared to the prior
year quarter. Low pressure gathering volumes were in excess
of the growth incentive fee threshold of 2,900 MMcf/d, resulting in
a $12 million rebate to Antero
Resources. Compression volumes for the second quarter of 2022
averaged 2,776 MMcf/d, a 1% increase compared to the prior
year quarter. High pressure gathering volumes averaged
2,819 MMcf/d, in line with the second quarter of 2021. Fresh
water delivery volumes averaged 110 MBbl/d during the quarter,
a 6% increase compared to the second quarter of 2021.
Gross processing volumes from the processing and fractionation
joint venture (the "Joint Venture") averaged 1,458 MMcf/d for
the second quarter of 2022, a 1% increase compared to the prior
year quarter. Joint Venture processing capacity was 91%
utilized during the quarter based on nameplate processing capacity
of 1.6 Bcf/d. Gross Joint Venture fractionation volumes
averaged 37 MBbl/d, a 3% decrease compared to the prior year
quarter. The decrease in fractionation volumes was attributable to
lower third party production volumes in the basin. Joint Venture
fractionation capacity was 93% utilized during the quarter based on
nameplate fractionation capacity of 40 MBbl/d.
|
|
Three Months
Ended
June
30,
|
|
|
|
|
Average Daily
Volumes:
|
|
2021
|
|
2022
|
|
%
Change
|
|
|
Low Pressure Gathering
(MMcf/d)
|
|
2,897
|
|
2,970
|
|
3 %
|
|
|
Compression
(MMcf/d)
|
|
2,744
|
|
2,776
|
|
1 %
|
|
|
High Pressure
Gathering (MMcf/d)
|
|
2,826
|
|
2,819
|
|
*
|
|
|
Fresh Water Delivery
(MBbl/d)
|
|
104
|
|
110
|
|
6 %
|
|
|
Gross Joint Venture
Processing (MMcf/d)
|
|
1,450
|
|
1,458
|
|
1 %
|
|
|
Gross Joint Venture
Fractionation (MBbl/d)
|
|
38
|
|
37
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
2022, revenues were $229 million, comprised of
$175 million from the Gathering and Processing segment and
$54 million from the Water Handling segment, net of
$18 million of amortization of customer relationships.
Water Handling revenues include $21 million from wastewater
handling and high rate water transfer services.
Direct operating expenses for the Gathering and Processing and
Water Handling segments were $19 million and $24 million,
respectively, for a total of $43 million, compared to
$40 million in total direct operating expenses in the prior
year quarter. The increase in direct operating expenses was driven
by volumetric growth and additional compression capacity placed on
line over the past twelve months. Water Handling operating expenses
include $20 million from wastewater handling and high rate
water transfer services. General and administrative expenses
excluding equity-based compensation were $10 million during
the second quarter of 2022. Total operating expenses during
the second quarter of 2022 included $6 million of equity-based
compensation expense, $36 million of depreciation and
$4 million of impairment. The
increase in depreciation expense was driven primarily by the
acceleration of depreciation as a result of the relocation and
reuse initiatives at the Castle Peak and future compressor
stations.
Net Income was $79 million, or
$0.17 per share. Net
Income adjusted for amortization of customer relationships,
impairment expense, loss on early extinguishment of debt, loss on
settlement of asset retirement obligations and gain on asset sale,
net of tax effects of reconciling items, or Adjusted Net Income,
was $96 million. Adjusted Net Income was $0.20 per share.
The following table reconciles Net Income to Adjusted Net Income
(in thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
2021
|
|
|
2022
|
|
Net
Income
|
|
$
|
80,223
|
|
|
79,395
|
|
Amortization of
customer relationships
|
|
|
17,668
|
|
|
17,668
|
|
Impairment
expense
|
|
|
—
|
|
|
3,702
|
|
Loss on early
extinguishment of debt
|
|
|
20,701
|
|
|
—
|
|
Loss on settlement of
asset retirement obligation
|
|
|
—
|
|
|
539
|
|
Gain on asset
sale
|
|
|
(135)
|
|
|
(32)
|
|
Tax effect of
reconciling items(1)
|
|
|
(9,532)
|
|
|
(5,636)
|
|
Adjusted Net
Income
|
|
$
|
108,925
|
|
|
95,636
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Statutory tax rate was approximately 24.9% for 2021 and 25.8%
for 2022.
|
Adjusted EBITDA was $221 million. Interest expense was
$45 million, a 4% increase compared to the prior year quarter.
Capital expenditures were $70 million, a 1% decrease compared
to the prior year quarter. Free Cash Flow before dividends
was $105 million, a 5% decrease compared to the prior year
quarter. Free Cash Flow after dividends was a $2 million
deficit compared to $3 million in the prior year quarter.
The following table reconciles Net Income to Adjusted EBITDA and
Free Cash Flow before and after dividends (in thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
2021
|
|
|
2022
|
Net
Income
|
|
$
|
80,223
|
|
|
79,395
|
Interest expense,
net
|
|
|
43,505
|
|
|
45,426
|
Income tax
expense
|
|
|
28,485
|
|
|
26,399
|
Amortization of
customer relationships
|
|
|
17,668
|
|
|
17,668
|
Depreciation
expense
|
|
|
26,619
|
|
|
35,675
|
Impairment
expense
|
|
|
—
|
|
|
3,702
|
Loss on early
extinguishment of debt
|
|
|
20,701
|
|
|
—
|
Loss on settlement of
asset retirement obligation
|
|
|
—
|
|
|
539
|
Gain on asset
sale
|
|
|
(135)
|
|
|
(32)
|
Accretion of asset
retirement obligations
|
|
|
114
|
|
|
64
|
Equity-based
compensation
|
|
|
3,059
|
|
|
5,641
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(21,515)
|
|
|
(22,824)
|
Distributions from
unconsolidated affiliates
|
|
|
26,275
|
|
|
29,375
|
Adjusted
EBITDA
|
|
$
|
224,999
|
|
|
221,028
|
Interest
expense
|
|
|
(43,505)
|
|
|
(45,426)
|
Total capital
expenditures (accrual-based)
|
|
|
(70,893)
|
|
|
(70,201)
|
Free Cash Flow
before dividends
|
|
$
|
110,601
|
|
|
105,401
|
Dividends declared
(accrual-based)
|
|
|
(107,409)
|
|
|
(107,654)
|
Free Cash Flow after
dividends
|
|
$
|
3,192
|
|
|
(2,253)
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles net cash provided by operating
activities to Free Cash Flow before and after dividends (in
thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
2021
|
|
|
2022
|
Net cash provided by
operating activities
|
|
$
|
194,674
|
|
|
169,517
|
Amortization of
deferred financing costs
|
|
|
(1,345)
|
|
|
(1,418)
|
Settlement of asset
retirement obligations
|
|
|
194
|
|
|
461
|
Changes in working
capital
|
|
|
(12,029)
|
|
|
7,042
|
Total capital
expenditures (accrual-based)
|
|
|
(70,893)
|
|
|
(70,201)
|
Free Cash Flow
before dividends
|
|
$
|
110,601
|
|
|
105,401
|
Dividends declared
(accrual-based)
|
|
|
(107,409)
|
|
|
(107,654)
|
Free Cash Flow after
dividends
|
|
$
|
3,192
|
|
|
(2,253)
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2022 Operating Update
Gathering and Processing — During the
second quarter of 2022, Antero Midstream connected 17 wells to
its gathering system. The Company placed in service the Castle Peak
compressor station in the liquids-rich Marcellus Shale. The Castle Peak station has an
initial capacity of 160 MMcf/d and will be expanded to 240 MMcf/d
in 2023 by relocating four underutilized units from an already
existing station. Lastly, Antero Midstream continued construction
on the Wetzel County high pressure
pipeline that will be placed online in the fourth quarter of 2022.
These additional infrastructure projects will support the expected
throughput growth in the second half of 2022.
Water Handling— Antero Midstream's water
delivery systems serviced 15 well completions during the
second quarter of 2022. As disclosed in the first quarter operating
update, the second quarter included volumes from completion
operations on a seven well pad late during the first quarter that
resulted in a portion of those volumes included in the second
quarter of 2022.
Capital Investments
Total accrued capital expenditures were $70 million during the second quarter of 2022. Of
the $70 million invested in gathering, compression, and water
infrastructure, $53 million was in gathering and compression
assets and $17 million was in water handling assets.
There were no investments in the Joint Venture during the
quarter.
Brendan Krueger, CFO of Antero
Midstream, said "Antero Midstream once again delivered a strong
operational quarter resulting in neutral free cash flow after
dividends. Importantly, the third quarter of 2022 marks a critical inflection point in Antero
Midstream's financial strength where we expect to generate Free
Cash Flow after dividends for the foreseeable future. This allows
us to commence progress on our goals towards absolute debt
reduction and leverage reduction towards our 3.0x target, which we
believe will generate attractive value for stakeholders across our
capital structure."
Conference Call
A conference call is scheduled on Thursday, July 28, 2022 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. 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, August 4, 2022 at
10:00 am MT at 877-660-6853 (U.S.) or
201-612-7415 (International) using the conference ID: 13726240. 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, August 4, 2022
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 plus
amortization of customer relationships and impairment expense,
excluding gain and loss on asset sale, loss on settlement of asset
retirement obligation and loss on early extinguishment of debt, 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 plus
interest expense, income tax expense, amortization of customer
relationships, depreciation expense, impairment expense, loss
(gain) on asset sale, loss on settlement of asset retirement
obligation, accretion of asset retirement obligations, and
equity-based compensation expense, and loss on early extinguishment
of debt, excluding equity in earnings of unconsolidated affiliates,
plus 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 defines Free Cash Flow before dividends as
Adjusted EBITDA less interest expense and accrual-based capital
expenditures. Free Cash Flow after dividends is defined as Free
Cash Flow before dividends less accrual-based 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 these measures is Net Income.
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.
The following table reconciles cash paid for capital
expenditures and accrued capital expenditures during the period (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
|
2021
|
|
|
2022
|
|
Capital expenditures
(as reported on a cash basis)
|
|
$
|
(46,185)
|
|
|
(77,767)
|
|
Change in accrued
capital costs
|
|
|
(24,708)
|
|
|
7,566
|
|
Capital expenditures
(accrual basis)
|
|
$
|
(70,893)
|
|
|
(70,201)
|
|
|
|
|
|
|
|
|
|
|
|
|
Antero Midstream defines Net Debt as consolidated total debt,
excluding unamortized debt premiums and debt issuance costs, less
cash and cash equivalents. Antero Midstream views Net Debt as an
important indicator in evaluating Antero Midstream's financial
leverage. Antero Midstream defines leverage as Net Debt divided by
Adjusted EBITDA for the last twelve months. The GAAP measure most
directly comparable to Net Debt is total debt, excluding
unamortized debt premiums and debt issuance costs.
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):
|
|
|
|
|
|
|
|
|
|
June 30,
2022
|
|
Bank credit
facility
|
|
$
|
580,500
|
|
7.875% senior notes due
2026
|
|
|
550,000
|
|
5.75% senior notes due
2027
|
|
|
650,000
|
|
5.75% senior notes due
2028
|
|
|
650,000
|
|
5.375% senior notes due
2029
|
|
|
750,000
|
|
Consolidated total
debt
|
|
$
|
3,180,500
|
|
Cash and cash
equivalents
|
|
|
—
|
|
Consolidated net
debt
|
|
$
|
3,180,500
|
|
|
|
|
|
|
|
|
|
The following table reconciles Net Income to Adjusted EBITDA for
the last twelve months as used in this release (in thousands):
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
June 30, 2022
|
|
Net
Income
|
|
$
|
327,388
|
|
Interest
expense
|
|
|
178,615
|
|
Income tax
expense
|
|
|
115,080
|
|
Amortization of
customer relationships
|
|
|
70,672
|
|
Depreciation
expense
|
|
|
119,296
|
|
Impairment
expense
|
|
|
7,365
|
|
Accretion of asset
retirement obligations
|
|
|
355
|
|
Equity-based
compensation
|
|
|
14,931
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(94,248)
|
|
Distributions from
unconsolidated affiliates
|
|
|
121,310
|
|
Gain on asset
sale
|
|
|
(150)
|
|
Loss on settlement of
asset retirement obligation
|
|
|
539
|
|
Loss on early
extinguishment of debt
|
|
|
1,056
|
|
Adjusted
EBITDA
|
|
$
|
862,209
|
|
|
|
|
|
|
|
|
|
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 geopolitical events and world
health events, including the COVID-19 pandemic, cybersecurity risk,
our ability to achieve our greenhouse gas reduction targets and the
costs associated therewith, the state of markets for and
availability of verified quality carbon offsets 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, 2021 and Quarterly
Report on Form 10-Q for the quarter ended June 30, 2022.
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December 31,
|
|
June 30,
|
|
|
|
2021
|
|
2022
|
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
$
|
81,197
|
|
|
75,098
|
|
Accounts
receivable–third party
|
|
|
747
|
|
|
431
|
|
Income tax
receivable
|
|
|
940
|
|
|
940
|
|
Other current
assets
|
|
|
920
|
|
|
588
|
|
Total current
assets
|
|
|
83,804
|
|
|
77,057
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
3,394,746
|
|
|
3,492,489
|
|
Investments in
unconsolidated affiliates
|
|
|
696,009
|
|
|
681,560
|
|
Customer
relationships
|
|
|
1,356,775
|
|
|
1,321,439
|
|
Other assets,
net
|
|
|
12,667
|
|
|
12,956
|
|
Total
assets
|
|
$
|
5,544,001
|
|
|
5,585,501
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable–Antero Resources
|
|
$
|
4,956
|
|
|
2,227
|
|
Accounts payable–third
party
|
|
|
23,592
|
|
|
24,510
|
|
Accrued
liabilities
|
|
|
80,838
|
|
|
90,656
|
|
Other current
liabilities
|
|
|
4,623
|
|
|
6,379
|
|
Total current
liabilities
|
|
|
114,009
|
|
|
123,772
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
3,122,910
|
|
|
3,157,966
|
|
Deferred income tax
liability
|
|
|
13,721
|
|
|
68,187
|
|
Other
|
|
|
6,663
|
|
|
5,457
|
|
Total
liabilities
|
|
|
3,257,303
|
|
|
3,355,382
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value: 100,000 authorized as of December 31, 2021 and
June 30,
2022
|
|
|
|
|
|
|
|
Series A non-voting
perpetual preferred stock; 12 designated and 10 issued and
outstanding as of December 31, 2021 and June 30,
2022
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; 2,000,000 authorized; 477,495 and 478,437 issued and
outstanding as of December 31, 2021 and June 30, 2022,
respectively
|
|
|
4,775
|
|
|
4,784
|
|
Additional paid-in
capital
|
|
|
2,414,398
|
|
|
2,198,375
|
|
Retained earnings
(accumulated deficit)
|
|
|
(132,475)
|
|
|
26,960
|
|
Total stockholders'
equity
|
|
|
2,286,698
|
|
|
2,230,119
|
|
Total liabilities and
stockholders' equity
|
|
$
|
5,544,001
|
|
|
5,585,501
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed Consolidated
Statements of Operations and Comprehensive Income
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
2021
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
|
$
|
192,667
|
|
|
184,071
|
|
Water handling–Antero
Resources
|
|
|
57,718
|
|
|
62,262
|
|
Water handling–third
party
|
|
|
70
|
|
|
242
|
|
Amortization of
customer relationships
|
|
|
(17,668)
|
|
|
(17,668)
|
|
Total
revenue
|
|
|
232,787
|
|
|
228,907
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
39,555
|
|
|
43,299
|
|
General and
administrative (including $3,059 and $5,641 of equity-based
compensation in
2021 and 2022, respectively)
|
|
|
14,251
|
|
|
16,079
|
|
Facility
idling
|
|
|
984
|
|
|
1,185
|
|
Depreciation
|
|
|
26,619
|
|
|
35,675
|
|
Impairment of property
and equipment
|
|
|
—
|
|
|
3,702
|
|
Accretion of asset
retirement obligations
|
|
|
114
|
|
|
64
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
539
|
|
Gain on asset
sale
|
|
|
(135)
|
|
|
(32)
|
|
Total operating
expenses
|
|
|
81,388
|
|
|
100,511
|
|
Operating
income
|
|
|
151,399
|
|
|
128,396
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(43,505)
|
|
|
(45,426)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
21,515
|
|
|
22,824
|
|
Loss on early
extinguishment of debt
|
|
|
(20,701)
|
|
|
—
|
|
Total other
expense
|
|
|
(42,691)
|
|
|
(22,602)
|
|
Income before income
taxes
|
|
|
108,708
|
|
|
105,794
|
|
Income tax
expense
|
|
|
(28,485)
|
|
|
(26,399)
|
|
Net income and
comprehensive income
|
|
$
|
80,223
|
|
|
79,395
|
|
|
|
|
|
|
|
|
|
Net income per
share–basic
|
|
$
|
0.17
|
|
|
0.17
|
|
Net income per
share–diluted
|
|
$
|
0.17
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
477,290
|
|
|
478,317
|
|
Diluted
|
|
|
479,530
|
|
|
480,270
|
|
ANTERO MIDSTREAM
CORPORATION
|
Selected Operating
Data
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Amount
of
|
|
|
|
|
|
|
June 30,
|
|
Increase
|
|
Percentage
|
|
|
2021
|
|
2022
|
|
or
Decrease
|
|
Change
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
263,640
|
|
|
270,302
|
|
|
6,662
|
|
|
3
|
%
|
Compression
(MMcf)
|
|
|
249,681
|
|
|
252,644
|
|
|
2,963
|
|
|
1
|
%
|
Gathering—high
pressure (MMcf)
|
|
|
257,193
|
|
|
256,537
|
|
|
(656)
|
|
|
*
|
|
Fresh water delivery
(MBbl)
|
|
|
9,499
|
|
|
10,048
|
|
|
549
|
|
|
6
|
%
|
Other fluid handling
(MBbl)
|
|
|
4,381
|
|
|
4,128
|
|
|
(253)
|
|
|
(6)
|
%
|
Wells serviced by
fresh water delivery
|
|
|
17
|
|
|
15
|
|
|
(2)
|
|
|
(12)
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
2,897
|
|
|
2,970
|
|
|
73
|
|
|
3
|
%
|
Compression
(MMcf/d)
|
|
|
2,744
|
|
|
2,776
|
|
|
32
|
|
|
1
|
%
|
Gathering—high
pressure (MMcf/d)
|
|
|
2,826
|
|
|
2,819
|
|
|
(7)
|
|
|
*
|
|
Fresh water delivery
(MBbl/d)
|
|
|
104
|
|
|
110
|
|
|
6
|
|
|
6
|
%
|
Other fluid handling
(MBbl/d)
|
|
|
48
|
|
|
45
|
|
|
(3)
|
|
|
(6)
|
%
|
Average Realized
Fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
|
$
|
0.33
|
|
|
0.34
|
|
|
0.01
|
|
|
3
|
%
|
Average compression
fee ($/Mcf)
|
|
$
|
0.20
|
|
|
0.21
|
|
|
0.01
|
|
|
3
|
%
|
Average gathering—high
pressure fee ($/Mcf)
|
|
$
|
0.20
|
|
|
0.21
|
|
|
0.01
|
|
|
3
|
%
|
Average fresh water
delivery fee ($/Bbl)
|
|
$
|
3.97
|
|
|
4.09
|
|
|
0.12
|
|
|
3
|
%
|
Joint Venture
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing—Joint
Venture (MMcf)
|
|
|
131,912
|
|
|
132,664
|
|
|
752
|
|
|
1
|
%
|
Fractionation—Joint
Venture (MBbl)
|
|
|
3,417
|
|
|
3,368
|
|
|
(49)
|
|
|
(1)
|
%
|
Processing—Joint
Venture (MMcf/d)
|
|
|
1,450
|
|
|
1,458
|
|
|
8
|
|
|
1
|
%
|
Fractionation—Joint
Venture (MBbl/d)
|
|
|
38
|
|
|
37
|
|
|
(1)
|
|
|
(3)
|
%
|
|
* Not meaningful or applicable
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed Consolidated
Results of Segment Operations
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30, 2022
|
|
|
|
Gathering and
|
|
Water
|
|
|
|
Consolidated
|
|
(in
thousands)
|
|
Processing
|
|
Handling
|
|
Unallocated
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue–Antero
Resources
|
|
$
|
196,071
|
|
|
62,262
|
|
|
—
|
|
|
258,333
|
|
Revenue–third-party
|
|
|
—
|
|
|
242
|
|
|
—
|
|
|
242
|
|
Gathering—low pressure
rebate
|
|
|
(12,000)
|
|
|
—
|
|
|
—
|
|
|
(12,000)
|
|
Amortization of
customer relationships
|
|
|
(9,272)
|
|
|
(8,396)
|
|
|
—
|
|
|
(17,668)
|
|
Total
revenues
|
|
|
174,799
|
|
|
54,108
|
|
|
—
|
|
|
228,907
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
19,343
|
|
|
23,956
|
|
|
—
|
|
|
43,299
|
|
General and
administrative (excluding equity-based
compensation)
|
|
|
6,268
|
|
|
2,658
|
|
|
1,512
|
|
|
10,438
|
|
Equity-based
compensation
|
|
|
4,222
|
|
|
1,191
|
|
|
228
|
|
|
5,641
|
|
Facility
idling
|
|
|
—
|
|
|
1,185
|
|
|
—
|
|
|
1,185
|
|
Depreciation
|
|
|
22,854
|
|
|
12,821
|
|
|
—
|
|
|
35,675
|
|
Impairment of property
and equipment
|
|
|
1,130
|
|
|
2,572
|
|
|
—
|
|
|
3,702
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
64
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
539
|
|
|
—
|
|
|
539
|
|
Gain on asset
sale
|
|
|
(32)
|
|
|
—
|
|
|
—
|
|
|
(32)
|
|
Total operating
expenses
|
|
|
53,785
|
|
|
44,986
|
|
|
1,740
|
|
|
100,511
|
|
Operating
income
|
|
|
121,014
|
|
|
9,122
|
|
|
(1,740)
|
|
|
128,396
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
—
|
|
|
—
|
|
|
(45,426)
|
|
|
(45,426)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
22,824
|
|
|
—
|
|
|
—
|
|
|
22,824
|
|
Total other income
(expense)
|
|
|
22,824
|
|
|
—
|
|
|
(45,426)
|
|
|
(22,602)
|
|
Income before income
taxes
|
|
|
143,838
|
|
|
9,122
|
|
|
(47,166)
|
|
|
105,794
|
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
(26,399)
|
|
|
(26,399)
|
|
Net income and
comprehensive income
|
|
$
|
143,838
|
|
|
9,122
|
|
|
(73,565)
|
|
|
79,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
$
|
221,028
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed Consolidated
Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2021
|
|
2022
|
|
Cash flows provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
163,664
|
|
|
159,435
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
53,469
|
|
|
63,975
|
|
Accretion
|
|
|
233
|
|
|
128
|
|
Impairment
|
|
|
1,379
|
|
|
3,702
|
|
Deferred income tax
expense
|
|
|
56,509
|
|
|
54,466
|
|
Equity-based
compensation
|
|
|
7,071
|
|
|
8,473
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(42,259)
|
|
|
(46,056)
|
|
Distributions from
unconsolidated affiliates
|
|
|
58,185
|
|
|
60,505
|
|
Amortization of
customer relationships
|
|
|
35,336
|
|
|
35,336
|
|
Amortization of
deferred financing costs
|
|
|
2,733
|
|
|
2,828
|
|
Settlement of asset
retirement obligations
|
|
|
(602)
|
|
|
(916)
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
539
|
|
Loss (gain) on asset
sale
|
|
|
3,628
|
|
|
(150)
|
|
Loss on early
extinguishment of debt
|
|
|
20,701
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
|
(16,274)
|
|
|
6,099
|
|
Accounts
receivable–third party
|
|
|
777
|
|
|
517
|
|
Income tax
receivable
|
|
|
16,311
|
|
|
—
|
|
Other current
assets
|
|
|
1,070
|
|
|
158
|
|
Accounts
payable–Antero Resources
|
|
|
376
|
|
|
(2,427)
|
|
Accounts payable–third
party
|
|
|
5,365
|
|
|
9,480
|
|
Accrued
liabilities
|
|
|
(7,297)
|
|
|
(1,911)
|
|
Net cash provided by
operating activities
|
|
|
360,375
|
|
|
354,181
|
|
Cash flows provided by
(used in) investing activities:
|
|
|
|
|
|
|
|
Additions to gathering
systems and facilities
|
|
|
(51,658)
|
|
|
(131,665)
|
|
Additions to water
handling systems
|
|
|
(22,707)
|
|
|
(30,369)
|
|
Investments in
unconsolidated affiliates
|
|
|
(966)
|
|
|
—
|
|
Cash received in asset
sale
|
|
|
1,627
|
|
|
147
|
|
Change in other
liabilities
|
|
|
—
|
|
|
(805)
|
|
Net cash used in
investing activities
|
|
|
(73,704)
|
|
|
(162,692)
|
|
Cash flows provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
Dividends to
stockholders
|
|
|
(255,993)
|
|
|
(217,445)
|
|
Dividends to preferred
stockholders
|
|
|
(275)
|
|
|
(275)
|
|
Issuance of senior
notes
|
|
|
750,000
|
|
|
—
|
|
Redemption of senior
notes
|
|
|
(667,472)
|
|
|
—
|
|
Payments of deferred
financing costs
|
|
|
(8,755)
|
|
|
(302)
|
|
Borrowings
(repayments) on bank credit facilities, net
|
|
|
(99,800)
|
|
|
33,300
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(4,317)
|
|
|
(6,767)
|
|
Other
|
|
|
(21)
|
|
|
—
|
|
Net cash used in
financing activities
|
|
|
(286,633)
|
|
|
(191,489)
|
|
Net increase in cash
and cash equivalents
|
|
|
38
|
|
|
—
|
|
Cash and cash
equivalents, beginning of period
|
|
|
640
|
|
|
—
|
|
Cash and cash
equivalents, end of period
|
|
$
|
678
|
|
|
—
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
91,608
|
|
|
86,688
|
|
Cash received during
the period for income taxes
|
|
$
|
16,913
|
|
|
—
|
|
Increase in accrued
capital expenditures and accounts payable for property and
equipment
|
|
$
|
25,490
|
|
|
2,822
|
|
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multimedia:https://www.prnewswire.com/news-releases/antero-midstream-announces-second-quarter-2022-financial-and-operational-results-301594671.html
SOURCE Antero Midstream Corporation