DENVER, April 26,
2023 /PRNewswire/ -- Antero Midstream Corporation
(NYSE: AM) ("Antero Midstream" or the "Company") today
announced its first quarter 2023 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 March 31,
2023.
First Quarter 2023 Highlights:
- Gathering and compression volumes increased by 8% and 11%,
respectively, compared to the prior year quarter
- Net Income was $87 million, or
$0.18 per diluted share, a 6% per
share increase compared to the prior year quarter
- Adjusted Net Income was $100
million, or $0.21 per share,
an 11% per share increase compared to the prior year quarter
(non-GAAP measure)
- Adjusted EBITDA was $242
million, a 16% increase compared to the prior year quarter
(non-GAAP measure)
- Capital expenditures were $34
million, a 64% decrease compared to the prior year
quarter
- Free Cash Flow after dividends was $46 million compared to a $38 million deficit in the prior year quarter
(non-GAAP measure)
Full Year 2023 Guidance Update:
- Increasing Net Income by $15
million to a range of $355 to
$395 million
- Increasing Adjusted EBITDA by $20
million to a range of $950 to
$990 million (non-GAAP
measure)
- Decreasing capital expenditures by $15 million to a range of $180 to $200
million
- Increasing Free Cash Flow after dividends by $35 million to a range of $125 to $155
million (non-GAAP measures)
Paul Rady, Chairman and CEO said,
"Antero Midstream's outstanding operational performance during the
first quarter, led by record throughput, helped drive earnings well
in excess of the prior year and ahead of expectations. In addition,
the completions efforts from Antero Resources resulted in
outstanding performance from our fresh water business."
Brendan Krueger, CFO of Antero
Midstream, said "The first quarter of 2023 marked the third
consecutive quarter of generating Free Cash Flow after dividends.
Importantly, the $46 million of Free
Cash Flow after dividends was an $84
million improvement from the first quarter of 2022. Looking
ahead to the remainder of the year, our higher Adjusted EBITDA
guidance combined with our lower capital budget guidance is
expected to result in a $35 million
increase to our Free Cash Flow after dividends. This reflects a 33%
increase to the midpoint of the previous guidance range and will
allow us to continue reducing absolute debt and leverage, further
de-risking the outlook for Antero Midstream."
For a discussion of the non-GAAP financial measures,
including Adjusted EBITDA, Adjusted Net Income, Leverage, and Free
Cash Flow after dividends please see "Non-GAAP
Financial Measures."
2023 Guidance Update
The following is a summary of Antero Midstream's updated 2023
guidance ($ in millions):
|
|
Twelve Months
Ended
December 31, 2023
|
|
Change vs.
Prior
Guidance
|
|
|
Low
|
|
High
|
|
(At
midpoint)
|
Net Income
|
|
$355
|
|
$395
|
|
$+15
|
Adjusted Net
Income
|
|
410
|
|
450
|
|
+15
|
Adjusted
EBITDA
|
|
950
|
|
990
|
|
+20
|
Capital
Expenditures
|
|
180
|
|
200
|
|
(15)
|
Interest
Expense
|
|
205
|
|
215
|
|
—
|
Free Cash Flow Before
Dividends
|
|
550
|
|
590
|
|
+35
|
Total
Dividends
|
|
430
|
|
430
|
|
—
|
Free Cash Flow After
Dividends
|
|
125
|
|
155
|
|
+35
|
|
|
|
|
|
|
|
First Quarter 2023 Financial Results
Low pressure gathering volumes for the first quarter of 2023
averaged 3,171 MMcf/d, an 8% increase as compared to the prior
year quarter. Low pressure gathering volumes subject to the
growth incentive fee were in excess of the threshold target of
2,900 MMcf/d, resulting in a $12
million rebate to Antero Resources. Compression volumes for
the first quarter of 2023 averaged 3,137 MMcf/d, an 11%
increase compared to the prior year quarter. High pressure
gathering volumes averaged 2,801 MMcf/d, a 3% decrease compared to
the prior year quarter. Fresh water delivery volumes averaged
123 MBbl/d during the quarter, a 41% increase compared to the
first quarter of 2022.
Gross processing volumes from the processing and fractionation
joint venture with MLPX, LP ("Joint Venture") averaged
1,508 MMcf/d for the first quarter of 2023, in line with the
prior year quarter. Joint Venture processing capacity was 94%
utilized during the quarter based on nameplate processing capacity
of 1.6 Bcf/d. Gross Joint Venture fractionation volumes
averaged 36 MBbl/d, a 6% increase compared to the prior year
quarter. Joint Venture fractionation capacity was 90% utilized
during the quarter based on nameplate fractionation capacity of 40
MBbl/d.
|
|
Three Months
Ended
March
31,
|
|
|
|
Average Daily
Volumes:
|
|
2022
|
|
2023
|
|
%
Change
|
|
|
Low Pressure Gathering
(MMcf/d)
|
|
2,930
|
|
3,171
|
|
8 %
|
|
|
Compression
(MMcf/d)
|
|
2,816
|
|
3,137
|
|
11 %
|
|
|
High Pressure
Gathering (MMcf/d)
|
|
2,878
|
|
2,801
|
|
(3) %
|
|
|
Fresh Water Delivery
(MBbl/d)
|
|
87
|
|
123
|
|
41 %
|
|
|
Gross Joint Venture
Processing (MMcf/d)
|
|
1,514
|
|
1,508
|
|
— %
|
|
|
Gross Joint Venture
Fractionation (MBbl/d)
|
|
34
|
|
36
|
|
6 %
|
|
|
For the three months ended March 31,
2023, revenues were $259 million, comprised of
$190 million from the Gathering and Processing segment and
$69 million from the Water Handling segment, net of
$18 million of amortization of customer relationships.
Water Handling revenues include $31 million from wastewater
handling and high rate water transfer services.
Direct operating expenses for the Gathering and Processing and
Water Handling segments were $24 million and $34 million,
respectively, for a total of $58 million. Water Handling
operating expenses include $29 million from wastewater
handling and high rate water transfer services. General and
administrative expenses excluding equity-based compensation were
$11 million during the first quarter of 2023. Total
operating expenses during the first quarter of 2023 included
$6 million of equity-based compensation expense and
$35 million of depreciation.
Net Income was $87 million, or
$0.18 per diluted share.
Net Income adjusted for amortization of customer relationships,
impairment expense, loss on settlement of asset retirement
obligations and gain on asset sale, net of tax effects of
reconciling items, or Adjusted Net Income, was $100 million.
Adjusted Net Income was $0.21 per share.
The following table reconciles Net Income to Adjusted Net Income
(in thousands):
|
|
Three Months
Ended
March
31,
|
|
|
|
2022
|
|
|
2023
|
|
Net
Income
|
|
$
|
80,040
|
|
|
86,507
|
|
Amortization of
customer relationships
|
|
|
17,668
|
|
|
17,668
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
341
|
|
Gain on asset
sale
|
|
|
(118)
|
|
|
(245)
|
|
Tax effect of
reconciling items(1)
|
|
|
(4,521)
|
|
|
(4,567)
|
|
Adjusted Net
Income
|
|
$
|
93,069
|
|
|
99,704
|
|
|
|
(1) The
statutory tax rates for the three months ended March 31, 2022 and
2023 were 25.8% and 25.7%, respectively.
|
Adjusted EBITDA was $242 million, a 16% increase compared
to the prior year quarter. Interest expense was $55 million, a
23% increase compared to the prior year quarter. Capital
expenditures were $34 million, a 64% decrease compared to the
prior year quarter. Free Cash Flow before dividends was
$154 million, a 119% increase compared to the prior year
quarter. Free Cash Flow after dividends was $46 million
compared to a $38 million deficit 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
March
31,
|
|
|
|
2022
|
|
|
2023
|
Net
Income
|
|
$
|
80,040
|
|
|
86,507
|
Interest expense,
net
|
|
|
44,279
|
|
|
54,624
|
Income tax
expense
|
|
|
28,067
|
|
|
31,670
|
Amortization of
customer relationships
|
|
|
17,668
|
|
|
17,668
|
Depreciation
expense
|
|
|
28,300
|
|
|
35,196
|
Gain on asset
sale
|
|
|
(118)
|
|
|
(245)
|
Accretion of asset
retirement obligations
|
|
|
64
|
|
|
44
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
341
|
Equity-based
compensation
|
|
|
2,832
|
|
|
6,327
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(23,232)
|
|
|
(24,456)
|
Distributions from
unconsolidated affiliates
|
|
|
31,130
|
|
|
34,105
|
Adjusted
EBITDA
|
|
$
|
209,030
|
|
|
241,781
|
Interest expense,
net
|
|
|
(44,279)
|
|
|
(54,624)
|
Capital expenditures
(accrual-based)
|
|
|
(94,655)
|
|
|
(33,603)
|
Free Cash Flow
before dividends
|
|
$
|
70,096
|
|
|
153,554
|
Dividends declared
(accrual-based)
|
|
|
(107,648)
|
|
|
(107,923)
|
Free Cash Flow after
dividends
|
|
$
|
(37,552)
|
|
|
45,631
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles net cash provided by operating
activities to Free Cash Flow before and after dividends (in
thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2022
|
|
|
2023
|
Net cash provided by
operating activities
|
|
$
|
184,664
|
|
|
182,719
|
Amortization of
deferred financing costs
|
|
|
(1,410)
|
|
|
(1,474)
|
Settlement of asset
retirement obligations
|
|
|
455
|
|
|
158
|
Changes in working
capital
|
|
|
(18,958)
|
|
|
5,754
|
Capital expenditures
(accrual-based)
|
|
|
(94,655)
|
|
|
(33,603)
|
Free Cash Flow
before dividends
|
|
$
|
70,096
|
|
|
153,554
|
Dividends declared
(accrual-based)
|
|
|
(107,648)
|
|
|
(107,923)
|
Free Cash Flow after
dividends
|
|
$
|
(37,552)
|
|
|
45,631
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2023 Operating Update
Gathering and Processing — During the first
quarter of 2023, Antero Midstream connected 19 wells to its
gathering system.
Water Handling — Antero Midstream's water
delivery systems serviced 23 well completions during the first
quarter of 2023.
Capital Investments
Accrued capital expenditures were $34
million during the first quarter of 2023. The company
invested $21 million in gathering and compression and
$13 million in water infrastructure primarily in the
liquids-rich midstream corridor of the Marcellus Shale.
Conference Call
A conference call is scheduled on Thursday, April 27, 2023 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, May 4, 2023 at
10:00 am MT at 877-660-6853 (U.S.) or
201-612-7415 (International) using the conference ID: 13734448. 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 4, 2023 at
10:00 am MT.
Presentation
An updated presentation will be posted to the Company's website
before the conference call. The presentation can be found at
www.anteromidstream.com on the homepage. Information on the
Company's website does not constitute a portion of, and is not
incorporated by reference into this press release.
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 loss on asset retirement
obligations, excluding (gain) 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 plus interest expense, net,
income tax expense, amortization of customer relationships,
depreciation expense, loss on settlement of asset retirement
obligations, gain on asset sale, accretion of asset retirement
obligations, and equity-based compensation expense, 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, net and accrual-based
capital expenditures. Capital expenditures include additions to
gathering systems and facilities, additions to water handling
systems, and investments in unconsolidated affiliates. Capital
expenditures exclude acquisitions. 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
March
31,
|
|
|
|
|
2022
|
|
|
2023
|
|
Capital expenditures
(as reported on a cash basis)
|
|
$
|
84,267
|
|
|
42,957
|
|
Change in accrued
capital costs
|
|
|
10,388
|
|
|
(9,354)
|
|
Capital expenditures
(accrual basis)
|
|
$
|
94,655
|
|
|
33,603
|
|
|
|
|
|
|
|
|
|
|
|
|
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):
|
|
|
|
|
|
|
|
|
|
March 31,
2023
|
|
Bank credit
facility
|
|
$
|
751,100
|
|
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
|
|
$
|
3,351,100
|
|
Cash and cash
equivalents
|
|
|
—
|
|
Consolidated net
debt
|
|
$
|
3,351,100
|
|
Antero Midstream has not included a reconciliation of Adjusted
Net Income, Adjusted EBITDA and Free Cash Flow before and after
dividends to the nearest GAAP financial measures for 2023 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 such measures and
Net Income (in millions):
|
|
Twelve Months
Ended
December 31, 2023
|
|
|
|
Low
|
|
High
|
|
Depreciation
expense
|
|
$135
|
|
$145
|
|
Equity based
compensation expense
|
|
20
|
|
30
|
|
Amortization of
customer relationships
|
|
70
|
|
75
|
|
Distributions from
unconsolidated affiliates
|
|
125
|
|
135
|
|
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 our strategy, future
operations, financial position, estimated revenues and
losses, projected costs, prospects, plans and objectives of
management, Antero Midstream's ability to realize the
benefits of the Marcellus bolt-on acquisition, including the
anticipated capital avoidance and synergies, 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, the
impact on demand for Antero Midstream's services as a result of
incremental production by Antero Resources, and expectations
regarding the amount and timing of litigation awards 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, supply chain disruptions, environmental risks, Antero
Resources' drilling and completion and other operating risks,
regulatory changes or changes in law, 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), cybersecurity risks, 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, 2022.
ANTERO MIDSTREAM
CORPORATION
Condensed
Consolidated Balance Sheets
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December 31,
|
|
March 31,
|
|
|
|
2022
|
|
2023
|
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
$
|
86,152
|
|
|
95,359
|
|
Accounts
receivable–third party
|
|
|
575
|
|
|
371
|
|
Income tax
receivable
|
|
|
940
|
|
|
940
|
|
Other current
assets
|
|
|
1,326
|
|
|
1,744
|
|
Total current
assets
|
|
|
88,993
|
|
|
98,414
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
3,751,431
|
|
|
3,749,220
|
|
Investments in
unconsolidated affiliates
|
|
|
652,767
|
|
|
643,118
|
|
Customer
relationships
|
|
|
1,286,103
|
|
|
1,268,435
|
|
Other assets,
net
|
|
|
12,026
|
|
|
11,340
|
|
Total
assets
|
|
$
|
5,791,320
|
|
|
5,770,527
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable–Antero Resources
|
|
$
|
5,436
|
|
|
4,776
|
|
Accounts payable–third
party
|
|
|
22,865
|
|
|
21,012
|
|
Accrued
liabilities
|
|
|
72,715
|
|
|
69,366
|
|
Other current
liabilities
|
|
|
1,061
|
|
|
1,065
|
|
Total current
liabilities
|
|
|
102,077
|
|
|
96,219
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
3,361,282
|
|
|
3,331,320
|
|
Deferred income tax
liability
|
|
|
131,215
|
|
|
162,885
|
|
Other
|
|
|
4,428
|
|
|
4,619
|
|
Total
liabilities
|
|
|
3,599,002
|
|
|
3,595,043
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value: 100,000 authorized as of December 31, 2022 and
March 31,
2023
|
|
|
|
|
|
|
|
Series A non-voting perpetual preferred stock; 12 designated
and 10 issued and
outstanding as of
December 31, 2022 and March 31, 2023
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; 2,000,000 authorized; 478,497 and 478,645 issued and
outstanding as of December 31, 2022 and March
31, 2023, respectively
|
|
|
4,785
|
|
|
4,786
|
|
Additional paid-in
capital
|
|
|
2,104,740
|
|
|
2,084,191
|
|
Retained
earnings
|
|
|
82,793
|
|
|
86,507
|
|
Total stockholders'
equity
|
|
|
2,192,318
|
|
|
2,175,484
|
|
Total liabilities and
stockholders' equity
|
|
$
|
5,791,320
|
|
|
5,770,527
|
|
ANTERO MIDSTREAM
CORPORATION
Condensed Consolidated
Statements of Operations and Comprehensive Income
(Unaudited)
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
|
$
|
182,443
|
|
|
199,576
|
|
Water handling–Antero
Resources
|
|
|
53,321
|
|
|
77,295
|
|
Water handling–third
party
|
|
|
395
|
|
|
272
|
|
Amortization of
customer relationships
|
|
|
(17,668)
|
|
|
(17,668)
|
|
Total
revenue
|
|
|
218,491
|
|
|
259,475
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
42,012
|
|
|
57,873
|
|
General and
administrative (including $2,832 and $6,327 of equity-based
compensation in
2022 and 2023, respectively)
|
|
|
17,931
|
|
|
17,347
|
|
Facility
idling
|
|
|
1,148
|
|
|
574
|
|
Depreciation
|
|
|
28,300
|
|
|
35,196
|
|
Accretion of asset
retirement obligations
|
|
|
64
|
|
|
44
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
341
|
|
Gain on asset
sale
|
|
|
(118)
|
|
|
(245)
|
|
Total operating
expenses
|
|
|
89,337
|
|
|
111,130
|
|
Operating
income
|
|
|
129,154
|
|
|
148,345
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(44,279)
|
|
|
(54,624)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
23,232
|
|
|
24,456
|
|
Total other
expense
|
|
|
(21,047)
|
|
|
(30,168)
|
|
Income before income
taxes
|
|
|
108,107
|
|
|
118,177
|
|
Income tax
expense
|
|
|
(28,067)
|
|
|
(31,670)
|
|
Net income and
comprehensive income
|
|
$
|
80,040
|
|
|
86,507
|
|
|
|
|
|
|
|
|
|
Net income per
share–basic
|
|
$
|
0.17
|
|
|
0.18
|
|
Net income per
share–diluted
|
|
$
|
0.17
|
|
|
0.18
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
477,646
|
|
|
478,612
|
|
Diluted
|
|
|
480,173
|
|
|
481,459
|
|
ANTERO MIDSTREAM
CORPORATION
Selected Operating Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Amount
of
|
|
|
|
|
|
|
March 31,
|
|
Increase
|
|
Percentage
|
|
|
2022
|
|
2023
|
|
or
Decrease
|
|
Change
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
263,727
|
|
|
285,423
|
|
|
21,696
|
|
|
8
|
%
|
Compression
(MMcf)
|
|
|
253,474
|
|
|
282,362
|
|
|
28,888
|
|
|
11
|
%
|
Gathering—high
pressure (MMcf)
|
|
|
259,042
|
|
|
252,129
|
|
|
(6,913)
|
|
|
(3)
|
%
|
Fresh water delivery
(MBbl)
|
|
|
7,874
|
|
|
11,110
|
|
|
3,236
|
|
|
41
|
%
|
Other fluid handling
(MBbl)
|
|
|
4,203
|
|
|
4,965
|
|
|
762
|
|
|
18
|
%
|
Wells serviced by
fresh water delivery
|
|
|
21
|
|
|
23
|
|
|
2
|
|
|
10
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
2,930
|
|
|
3,171
|
|
|
241
|
|
|
8
|
%
|
Compression
(MMcf/d)
|
|
|
2,816
|
|
|
3,137
|
|
|
321
|
|
|
11
|
%
|
Gathering—high
pressure (MMcf/d)
|
|
|
2,878
|
|
|
2,801
|
|
|
(77)
|
|
|
(3)
|
%
|
Fresh water delivery
(MBbl/d)
|
|
|
87
|
|
|
123
|
|
|
36
|
|
|
41
|
%
|
Other fluid handling
(MBbl/d)
|
|
|
47
|
|
|
55
|
|
|
8
|
|
|
17
|
%
|
Average Realized
Fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low
pressure fee ($/Mcf)
|
|
$
|
0.34
|
|
|
0.35
|
|
|
0.01
|
|
|
3
|
%
|
Average compression
fee ($/Mcf)
|
|
$
|
0.21
|
|
|
0.21
|
|
|
—
|
|
|
*
|
|
Average gathering—high
pressure fee ($/Mcf)
|
|
$
|
0.21
|
|
|
0.21
|
|
|
—
|
|
|
*
|
|
Average fresh water
delivery fee ($/Bbl)
|
|
$
|
4.07
|
|
|
4.21
|
|
|
0.14
|
|
|
3
|
%
|
Joint Venture
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing—Joint
Venture (MMcf)
|
|
|
136,242
|
|
|
135,741
|
|
|
(501)
|
|
|
*
|
|
Fractionation—Joint
Venture (MBbl)
|
|
|
3,077
|
|
|
3,222
|
|
|
145
|
|
|
5
|
%
|
Processing—Joint
Venture (MMcf/d)
|
|
|
1,514
|
|
|
1,508
|
|
|
(6)
|
|
|
*
|
|
Fractionation—Joint
Venture (MBbl/d)
|
|
|
34
|
|
|
36
|
|
|
2
|
|
|
6
|
%
|
|
* Not meaningful
or applicable.
|
ANTERO MIDSTREAM
CORPORATION
Condensed Consolidated
Results of Segment Operations (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
|
Gathering and
|
|
Water
|
|
|
|
Consolidated
|
|
|
|
Processing
|
|
Handling
|
|
Unallocated
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue–Antero
Resources
|
|
$
|
211,576
|
|
|
77,295
|
|
|
—
|
|
|
288,871
|
|
Revenue–third-party
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
272
|
|
Gathering—low pressure
fee rebate
|
|
|
(12,000)
|
|
|
—
|
|
|
—
|
|
|
(12,000)
|
|
Amortization of
customer relationships
|
|
|
(9,271)
|
|
|
(8,397)
|
|
|
—
|
|
|
(17,668)
|
|
Total
revenues
|
|
|
190,305
|
|
|
69,170
|
|
|
—
|
|
|
259,475
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
24,118
|
|
|
33,755
|
|
|
—
|
|
|
57,873
|
|
General and
administrative (excluding equity-based compensation)
|
|
|
5,772
|
|
|
4,494
|
|
|
754
|
|
|
11,020
|
|
Equity-based
compensation
|
|
|
4,408
|
|
|
1,714
|
|
|
205
|
|
|
6,327
|
|
Facility
idling
|
|
|
—
|
|
|
574
|
|
|
—
|
|
|
574
|
|
Depreciation
|
|
|
22,063
|
|
|
13,133
|
|
|
—
|
|
|
35,196
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
341
|
|
|
—
|
|
|
341
|
|
Gain on asset
sale
|
|
|
(242)
|
|
|
(3)
|
|
|
—
|
|
|
(245)
|
|
Total operating
expenses
|
|
|
56,119
|
|
|
54,052
|
|
|
959
|
|
|
111,130
|
|
Operating
income
|
|
|
134,186
|
|
|
15,118
|
|
|
(959)
|
|
|
148,345
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
—
|
|
|
—
|
|
|
(54,624)
|
|
|
(54,624)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
24,456
|
|
|
—
|
|
|
—
|
|
|
24,456
|
|
Total other income
(expense)
|
|
|
24,456
|
|
|
—
|
|
|
(54,624)
|
|
|
(30,168)
|
|
Income before income
taxes
|
|
|
158,642
|
|
|
15,118
|
|
|
(55,583)
|
|
|
118,177
|
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
(31,670)
|
|
|
(31,670)
|
|
Net income and
comprehensive income
|
|
$
|
158,642
|
|
|
15,118
|
|
|
(87,253)
|
|
|
86,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
$
|
241,781
|
|
ANTERO MIDSTREAM
CORPORATION
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2023
|
|
Cash flows provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
80,040
|
|
|
86,507
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
28,300
|
|
|
35,196
|
|
Accretion of asset
retirement obligations
|
|
|
64
|
|
|
44
|
|
Deferred income tax
expense
|
|
|
28,067
|
|
|
31,670
|
|
Equity-based
compensation
|
|
|
2,832
|
|
|
6,327
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(23,232)
|
|
|
(24,456)
|
|
Distributions from
unconsolidated affiliates
|
|
|
31,130
|
|
|
34,105
|
|
Amortization of
customer relationships
|
|
|
17,668
|
|
|
17,668
|
|
Amortization of
deferred financing costs
|
|
|
1,410
|
|
|
1,474
|
|
Settlement of asset
retirement obligations
|
|
|
(455)
|
|
|
(158)
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
341
|
|
Gain on asset
sale
|
|
|
(118)
|
|
|
(245)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
|
3,054
|
|
|
(9,207)
|
|
Accounts
receivable–third party
|
|
|
460
|
|
|
431
|
|
Other current
assets
|
|
|
118
|
|
|
(520)
|
|
Accounts
payable–Antero Resources
|
|
|
230
|
|
|
(660)
|
|
Accounts payable–third
party
|
|
|
13,762
|
|
|
2,061
|
|
Accrued
liabilities
|
|
|
1,334
|
|
|
2,141
|
|
Net cash provided by
operating activities
|
|
|
184,664
|
|
|
182,719
|
|
Cash flows provided by
(used in) investing activities:
|
|
|
|
|
|
|
|
Additions to gathering
systems and facilities
|
|
|
(70,734)
|
|
|
(29,197)
|
|
Additions to water
handling systems
|
|
|
(13,533)
|
|
|
(13,760)
|
|
Acquisition of
gathering systems and facilities
|
|
|
—
|
|
|
(263)
|
|
Cash received in asset
sales
|
|
|
121
|
|
|
1,071
|
|
Change in other
assets
|
|
|
—
|
|
|
(2)
|
|
Net cash used in
investing activities
|
|
|
(84,146)
|
|
|
(42,151)
|
|
Cash flows provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
Dividends to common
stockholders
|
|
|
(108,149)
|
|
|
(108,364)
|
|
Dividends to preferred
stockholders
|
|
|
(138)
|
|
|
(138)
|
|
Payments of deferred
financing costs
|
|
|
(302)
|
|
|
—
|
|
Borrowings
(repayments) on bank credit facilities, net
|
|
|
9,400
|
|
|
(30,900)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(1,329)
|
|
|
(1,166)
|
|
Net cash used in
financing activities
|
|
|
(100,518)
|
|
|
(140,568)
|
|
Net increase in cash
and cash equivalents
|
|
|
—
|
|
|
—
|
|
Cash and cash
equivalents, beginning of period
|
|
|
—
|
|
|
—
|
|
Cash and cash
equivalents, end of period
|
|
$
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
40,677
|
|
|
50,340
|
|
Increase (decrease) in
accrued capital expenditures and accounts payable for property and
equipment
|
|
$
|
10,388
|
|
|
(9,354)
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/antero-midstream-announces-first-quarter-2023-financial-and-operational-results-301808740.html
SOURCE Antero Midstream Corporation