Net income. Net income increased by 8%, from $80 million for the three months ended March 31, 2022 to $87 million for the three months ended March 31, 2023 primarily due to higher gathering, compression and water handling revenues and lower general and administrative costs, excluding equity-based compensation expense between periods, partially offset by higher total direct operating expenses, interest expense, depreciation expense and equity-based compensation expense between periods.
Adjusted EBITDA. Adjusted EBITDA increased by 16%, from $209 million for the three months ended March 31, 2022 to $242 million for the three months ended March 31, 2023. The increase between periods was primarily due to higher gathering, compression and water handling revenues and lower general and administrative costs, excluding equity-based compensation expense, and higher distributions from unconsolidated affiliates, partially offset by higher total direct operating expenses. For a discussion of the non-GAAP financial measure Adjusted EBITDA, including a reconciliation to its most directly comparable financial measure calculated and presented in accordance with GAAP, see “—Non-GAAP Financial Measures” below.
Capital Resources and Liquidity
Sources and Uses of Cash
Capital resources and liquidity are provided by operating cash flows and available borrowings under our Credit Facility and capital market transactions. See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements. We expect that the combination of these capital resources will be adequate to meet our working capital requirements, capital expenditures program, expected quarterly cash dividends and share repurchases under our share repurchases program for at least the next 12 months.
Our Board of Directors (the “Board”) declared a cash dividend on the shares of our common stock of $0.2250 per share for the quarter ended March 31, 2023. The dividend is payable on May 10, 2023 to stockholders of record as of April 26, 2023. Our Board also declared a cash dividend of $138 thousand on the shares of Series A Preferred Stock, which will be paid on May 15, 2023 in accordance with their terms as discussed in Note 11—Equity and Earnings Per Common Share. As of March 31, 2023, there were dividends in the amount of $69 thousand accumulated in arrears on our Series A Preferred Stock.
We expect our future cash requirements relating to working capital, capital expenditures, acquisitions and quarterly cash dividends to our stockholders will be funded from cash flows internally generated from our operations or borrowings under the Credit Facility.
As of March 31, 2023, we did not have any off-balance sheet arrangements.
Cash Flows
The following table summarizes our cash flows for the three months ended March 31, 2022 and 2023:
| | | | | | | |
| | Three Months Ended March 31, | |
(in thousands) | | 2022 | | 2023 | |
Net cash provided by operating activities | | $ | 184,664 | | | 182,719 | |
Net cash used in investing activities | | | (84,146) | | | (42,151) | |
Net cash used in financing activities | | | (100,518) | | | (140,568) | |
Net increase in cash and cash equivalents | | $ | — | | | — | |
Operating activities. Net cash provided by operating activities was $185 million and $183 million for the three months ended March 31, 2022 and 2023, respectively. The decrease in cash flows provided by operations between periods was primarily the result of changes in working capital, higher direct operating expenses and higher interest expense, partially offset by higher gathering, compression and water handling revenues between periods.
Investing activities. Net cash flows used in investing activities was $84 million and $42 million for the three months ended March 31, 2022 and 2023, respectively. The decrease in cash flows used in investing activities between periods was primarily due to decreased capital spending for our gathering systems of $42 million primarily as a result of fewer capital projects between periods.