DENVER, July 26,
2023 /PRNewswire/ -- Antero Midstream Corporation
(NYSE: AM) ("Antero Midstream" or the "Company") today
announced its second 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 June 30,
2023.
Second Quarter 2023 Highlights:
- Gathering and compression volumes increased by 11% and 17%,
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 $105
million, or $0.22 per diluted
share, a 10% per share increase compared to the prior year quarter
(non-GAAP measure)
- Adjusted EBITDA was $243
million, a 10% increase compared to the prior year quarter
(non-GAAP measure)
- Capital expenditures were $49
million, a 31% decrease compared to the prior year
quarter
- Free Cash Flow before dividends was $139
million, a 31% increase compared to the prior year
quarter (non-GAAP measure)
- Free Cash Flow after dividends was $31 million compared to a $2 million deficit in the prior year quarter
(non-GAAP measure)
Paul Rady, Chairman and CEO said,
"Antero Midstream delivered another strong quarter operationally
and financially, driven by double-digit year-over-year throughput
growth. This resulted in 10% year-over-year Adjusted EBITDA growth,
and more importantly, our fourth straight quarter of generating
Free Cash Flow after dividends."
Brendan Krueger, CFO of Antero
Midstream, said "Year-to-date Antero Midstream has executed on its
strategy to pay down absolute debt and reduce leverage to 3.5x at
the end of the second quarter. These second quarter results
position us well to achieve our 2023 guidance and continue our
progress towards our leverage target of 3.0x or less in 2024."
For a discussion of the non-GAAP financial measures,
including Adjusted EBITDA, Adjusted Net Income, Leverage, and Free
Cash Flow before and after dividends please see
"Non-GAAP Financial Measures."
Second Quarter 2023 Financial Results
Low pressure gathering volumes for the second quarter of 2023
averaged 3,304 MMcf/d, an 11% 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 second quarter of 2023 averaged 3,251 MMcf/d, a 17% increase
compared to the prior year quarter. High pressure gathering
volumes averaged 2,922 MMcf/d, a 4% increase compared to the prior
year quarter. Fresh water delivery volumes averaged 105 MBbl/d
during the quarter, a 5% decrease compared to the second quarter of
2022.
Gross processing volumes from the processing and fractionation
joint venture with MLPX, LP ("Joint Venture") averaged 1,600 MMcf/d
for the second quarter of 2023, a 10% increase compared to the
prior year quarter. Joint Venture processing capacity was
100% utilized during the quarter based on nameplate processing
capacity of 1.6 Bcf/d. Gross Joint Venture fractionation
volumes averaged 39 MBbl/d, a 5% increase compared to the prior
year quarter. Joint Venture fractionation capacity was 98% utilized
during the quarter based on nameplate fractionation capacity of 40
MBbl/d.
|
|
Three Months Ended
|
|
|
|
|
June 30,
|
Average Daily Volumes:
|
|
2022
|
|
2023
|
|
%
Change
|
|
|
Low Pressure Gathering (MMcf/d)
|
|
2,970
|
|
3,304
|
|
11 %
|
|
|
Compression (MMcf/d)
|
|
2,776
|
|
3,251
|
|
17 %
|
|
|
High Pressure Gathering (MMcf/d)
|
|
2,819
|
|
2,922
|
|
4 %
|
|
|
Fresh Water Delivery (MBbl/d)
|
|
110
|
|
105
|
|
(5) %
|
|
|
Gross Joint Venture Processing (MMcf/d)
|
|
1,458
|
|
1,600
|
|
10 %
|
|
|
Gross Joint Venture Fractionation (MBbl/d)
|
|
37
|
|
39
|
|
5 %
|
|
|
For the three months ended June 30,
2023, revenues were $258 million, comprised of
$202 million from the Gathering and Processing segment and
$56 million from the Water Handling segment, net of
$18 million of amortization of customer relationships.
Water Handling revenues include $24 million from wastewater
handling and high rate water transfer services.
Direct operating expenses for the Gathering and Processing and
Water Handling segments were $25 million and $28 million,
respectively. Water Handling operating expenses include
$23 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 2023. Total operating expenses during the second
quarter of 2023 included $35 million of depreciation,
$8 million of equity-based compensation expense, and a
$6 million loss on asset
sale.
Net Income was $87 million, or
$0.18 per diluted share, a 6%
per share increase compared to the prior year quarter. Net
Income adjusted for amortization of customer relationships,
impairment of property and equipment, loss on settlement of asset
retirement obligations and loss (gain) on asset sale, net of tax
effects of reconciling items, or Adjusted Net Income, was
$105 million. Adjusted Net Income was $0.22 per share, a 10% per share increase
compared to the prior year quarter.
The following table reconciles Net Income to Adjusted Net Income
(in thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
2022
|
|
|
2023
|
|
Net
Income
|
|
$
|
79,395
|
|
|
87,012
|
|
Amortization of
customer relationships
|
|
|
17,668
|
|
|
17,668
|
|
Impairment of property
and equipment
|
|
|
3,702
|
|
|
—
|
|
Loss on settlement of
asset retirement obligations
|
|
|
539
|
|
|
279
|
|
Loss (gain) on asset
sale
|
|
|
(32)
|
|
|
5,814
|
|
Tax effect of
reconciling items(1)
|
|
|
(5,636)
|
|
|
(6,109)
|
|
Adjusted Net
Income
|
|
$
|
95,636
|
|
|
104,664
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The statutory tax
rates for the three months ended June 30, 2022 and 2023 were 25.8%
and 25.7%, respectively.
|
Adjusted EBITDA was $243 million, a 10% increase compared
to the prior year quarter. Interest expense was $55 million, a
22% increase compared to the prior year quarter. Capital
expenditures were $49 million, a 31% decrease compared to the
prior year quarter. Free Cash Flow before dividends was
$139 million, a 31% increase compared to the prior year
quarter. Free Cash Flow after dividends was $31 million
compared to a $2 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
June
30,
|
|
|
|
2022
|
|
|
2023
|
Net
Income
|
|
$
|
79,395
|
|
|
87,012
|
Interest expense,
net
|
|
|
45,426
|
|
|
55,388
|
Income tax
expense
|
|
|
26,399
|
|
|
29,095
|
Depreciation
expense
|
|
|
35,675
|
|
|
35,233
|
Amortization of
customer relationships
|
|
|
17,668
|
|
|
17,668
|
Impairment
of property and equipment
|
|
|
3,702
|
|
|
—
|
Loss (gain) on asset
sale
|
|
|
(32)
|
|
|
5,814
|
Accretion of asset
retirement obligations
|
|
|
64
|
|
|
44
|
Loss on settlement of
asset retirement obligations
|
|
|
539
|
|
|
279
|
Equity-based
compensation
|
|
|
5,641
|
|
|
8,499
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(22,824)
|
|
|
(25,972)
|
Distributions from
unconsolidated affiliates
|
|
|
29,375
|
|
|
29,465
|
Adjusted
EBITDA
|
|
$
|
221,028
|
|
|
242,525
|
Interest expense,
net
|
|
|
(45,426)
|
|
|
(55,388)
|
Capital expenditures
(accrual-based)
|
|
|
(70,201)
|
|
|
(48,584)
|
Free Cash Flow
before dividends
|
|
$
|
105,401
|
|
|
138,553
|
Dividends declared
(accrual-based)
|
|
|
(107,654)
|
|
|
(107,927)
|
Free Cash Flow after
dividends
|
|
$
|
(2,253)
|
|
|
30,626
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2022
|
|
|
2023
|
Net cash provided by
operating activities
|
|
$
|
169,517
|
|
|
185,586
|
Amortization of
deferred financing costs
|
|
|
(1,418)
|
|
|
(1,483)
|
Settlement of asset
retirement obligations
|
|
|
461
|
|
|
537
|
Changes in working
capital
|
|
|
7,042
|
|
|
2,497
|
Capital expenditures
(accrual-based)
|
|
|
(70,201)
|
|
|
(48,584)
|
Free Cash Flow
before dividends
|
|
$
|
105,401
|
|
|
138,553
|
Dividends declared
(accrual-based)
|
|
|
(107,654)
|
|
|
(107,927)
|
Free Cash Flow after
dividends
|
|
$
|
(2,253)
|
|
|
30,626
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2023 Operating Update
Gathering and Processing — During the
second quarter of 2023, Antero Midstream connected 26 wells to
its gathering system.
Water Handling— Antero Midstream's water
delivery systems serviced 23 well completions during the
second quarter of 2023.
Capital Investments
Accrued capital expenditures were $49
million during the second quarter of 2023. The company
invested $35 million in gathering and compression and
$14 million in water infrastructure primarily in the
liquids-rich midstream corridor of the Marcellus Shale.
Conference Call
A conference call is scheduled on Thursday, July 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, August 3, 2023 at
10:00 am MT at 877-660-6853 (U.S.) or
201-612-7415 (International) using the conference ID: 13740087. 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 3, 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, impairment of property and
equipment, loss on settlement of asset retirement obligations, and
loss (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,
depreciation expense, impairment of property and equipment,
amortization of customer relationships, loss on settlement of asset
retirement obligations, loss (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
June
30,
|
|
|
|
2022
|
|
|
2023
|
|
Capital expenditures
(as reported on a cash basis)
|
|
$
|
(77,767)
|
|
|
(42,044)
|
|
Change in accrued
capital costs
|
|
|
7,566
|
|
|
(6,540)
|
|
Capital expenditures
(accrual basis)
|
|
$
|
(70,201)
|
|
|
(48,584)
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2023
|
|
Bank credit
facility
|
|
$
|
725,500
|
|
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
|
|
$
|
3,325,500
|
|
Cash and cash
equivalents
|
|
|
—
|
|
Consolidated net
debt
|
|
$
|
3,325,500
|
|
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, 2023
|
|
Net
Income
|
|
$
|
340,326
|
|
Interest expense,
net
|
|
|
210,255
|
|
Income tax
expense
|
|
|
123,793
|
|
Depreciation
expense
|
|
|
138,216
|
|
Amortization of
customer relationships
|
|
|
70,672
|
|
Accretion of asset
retirement obligations
|
|
|
182
|
|
Equity-based
compensation
|
|
|
26,007
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(98,590)
|
|
Distributions from
unconsolidated affiliates
|
|
|
123,525
|
|
Loss on settlement of
asset retirement obligation
|
|
|
620
|
|
Loss on asset
sale
|
|
|
3,468
|
|
Adjusted
EBITDA
|
|
$
|
938,474
|
|
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 or other 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,
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 and Quarterly Report on Form
10-Q for the quarter ended June 30,
2023.
ANTERO MIDSTREAM
CORPORATION
Condensed
Consolidated Balance Sheets
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December 31,
|
|
June 30,
|
|
|
|
2022
|
|
2023
|
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
$
|
86,152
|
|
|
91,621
|
|
Accounts
receivable–third party
|
|
|
575
|
|
|
550
|
|
Income tax
receivable
|
|
|
940
|
|
|
940
|
|
Other current
assets
|
|
|
1,326
|
|
|
795
|
|
Total current
assets
|
|
|
88,993
|
|
|
93,906
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
3,751,431
|
|
|
3,756,496
|
|
Investments in
unconsolidated affiliates
|
|
|
652,767
|
|
|
639,887
|
|
Customer
relationships
|
|
|
1,286,103
|
|
|
1,250,767
|
|
Other assets,
net
|
|
|
12,026
|
|
|
11,827
|
|
Total
assets
|
|
$
|
5,791,320
|
|
|
5,752,883
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable–Antero Resources
|
|
$
|
5,436
|
|
|
2,921
|
|
Accounts payable–third
party
|
|
|
22,865
|
|
|
17,947
|
|
Accrued
liabilities
|
|
|
72,715
|
|
|
74,924
|
|
Other current
liabilities
|
|
|
1,061
|
|
|
817
|
|
Total current
liabilities
|
|
|
102,077
|
|
|
96,609
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
3,361,282
|
|
|
3,306,667
|
|
Deferred income tax
liability
|
|
|
131,215
|
|
|
191,979
|
|
Other
|
|
|
4,428
|
|
|
4,589
|
|
Total
liabilities
|
|
|
3,599,002
|
|
|
3,599,844
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value: 100,000 authorized as of December 31, 2022 and
June 30,
2023
|
|
|
|
|
|
|
|
Series A non-voting
perpetual preferred stock; 12 designated and 10 issued and
outstanding as of December 31, 2022 and
June 30, 2023
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; 2,000,000 authorized; 478,497 and 479,656 issued and
outstanding as of December 31, 2022 and
June 30, 2023, respectively
|
|
|
4,785
|
|
|
4,797
|
|
Additional paid-in
capital
|
|
|
2,104,740
|
|
|
2,061,230
|
|
Retained
earnings
|
|
|
82,793
|
|
|
87,012
|
|
Total stockholders'
equity
|
|
|
2,192,318
|
|
|
2,153,039
|
|
Total liabilities and
stockholders' equity
|
|
$
|
5,791,320
|
|
|
5,752,883
|
|
ANTERO MIDSTREAM
CORPORATION
Condensed Consolidated
Statements of Operations and Comprehensive Income
(Unaudited)
(In thousands, except
per share amounts)
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
2022
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
Gathering and
compression–Antero Resources
|
|
$
|
184,071
|
|
|
211,068
|
|
Water handling–Antero
Resources
|
|
|
62,262
|
|
|
64,613
|
|
Water handling–third
party
|
|
|
242
|
|
|
274
|
|
Amortization of
customer relationships
|
|
|
(17,668)
|
|
|
(17,668)
|
|
Total
revenue
|
|
|
228,907
|
|
|
258,287
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
43,299
|
|
|
52,595
|
|
General and
administrative (including $5,641 and $8,499 of equity-based
compensation in
2022 and 2023, respectively)
|
|
|
16,079
|
|
|
18,162
|
|
Facility
idling
|
|
|
1,185
|
|
|
637
|
|
Depreciation
|
|
|
35,675
|
|
|
35,233
|
|
Impairment of property
and equipment
|
|
|
3,702
|
|
|
—
|
|
Accretion of asset
retirement obligations
|
|
|
64
|
|
|
44
|
|
Loss on settlement of
asset retirement obligations
|
|
|
539
|
|
|
279
|
|
Loss (gain) on asset
sale
|
|
|
(32)
|
|
|
5,814
|
|
Total operating
expenses
|
|
|
100,511
|
|
|
112,764
|
|
Operating
income
|
|
|
128,396
|
|
|
145,523
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(45,426)
|
|
|
(55,388)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
22,824
|
|
|
25,972
|
|
Total other
expense
|
|
|
(22,602)
|
|
|
(29,416)
|
|
Income before income
taxes
|
|
|
105,794
|
|
|
116,107
|
|
Income tax
expense
|
|
|
(26,399)
|
|
|
(29,095)
|
|
Net income and
comprehensive income
|
|
$
|
79,395
|
|
|
87,012
|
|
|
|
|
|
|
|
|
|
Net income per
share–basic
|
|
$
|
0.17
|
|
|
0.18
|
|
Net income per
share–diluted
|
|
$
|
0.17
|
|
|
0.18
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
478,317
|
|
|
479,502
|
|
Diluted
|
|
|
480,270
|
|
|
481,512
|
|
ANTERO MIDSTREAM
CORPORATION
Selected Operating Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Amount
of
|
|
|
|
|
|
|
June 30,
|
|
Increase
|
|
Percentage
|
|
|
2022
|
|
2023
|
|
or
Decrease
|
|
Change
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure
(MMcf)
|
|
|
270,302
|
|
|
300,706
|
|
|
30,404
|
|
|
11
|
%
|
Compression
(MMcf)
|
|
|
252,644
|
|
|
295,801
|
|
|
43,157
|
|
|
17
|
%
|
Gathering—high
pressure (MMcf)
|
|
|
256,537
|
|
|
265,890
|
|
|
9,353
|
|
|
4
|
%
|
Fresh water delivery
(MBbl)
|
|
|
10,048
|
|
|
9,585
|
|
|
(463)
|
|
|
(5)
|
%
|
Other fluid handling
(MBbl)
|
|
|
4,128
|
|
|
4,953
|
|
|
825
|
|
|
20
|
%
|
Wells serviced by
fresh water delivery
|
|
|
15
|
|
|
23
|
|
|
8
|
|
|
53
|
%
|
Gathering—low pressure
(MMcf/d)
|
|
|
2,970
|
|
|
3,304
|
|
|
334
|
|
|
11
|
%
|
Compression
(MMcf/d)
|
|
|
2,776
|
|
|
3,251
|
|
|
475
|
|
|
17
|
%
|
Gathering—high
pressure (MMcf/d)
|
|
|
2,819
|
|
|
2,922
|
|
|
103
|
|
|
4
|
%
|
Fresh water delivery
(MBbl/d)
|
|
|
110
|
|
|
105
|
|
|
(5)
|
|
|
(5)
|
%
|
Other fluid handling
(MBbl/d)
|
|
|
45
|
|
|
54
|
|
|
9
|
|
|
20
|
%
|
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)
|
|
$
|
4.09
|
|
|
4.21
|
|
|
0.12
|
|
|
3
|
%
|
Joint Venture
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing—Joint
Venture (MMcf)
|
|
|
132,664
|
|
|
145,645
|
|
|
12,981
|
|
|
10
|
%
|
Fractionation—Joint
Venture (MBbl)
|
|
|
3,368
|
|
|
3,553
|
|
|
185
|
|
|
5
|
%
|
Processing—Joint
Venture (MMcf/d)
|
|
|
1,458
|
|
|
1,600
|
|
|
142
|
|
|
10
|
%
|
Fractionation—Joint
Venture (MBbl/d)
|
|
|
37
|
|
|
39
|
|
|
2
|
|
|
5
|
%
|
|
* Not
meaningful or applicable.
|
ANTERO MIDSTREAM
CORPORATION
Condensed Consolidated
Results of Segment Operations (Unaudited)
(In
thousands)
|
|
|
|
Three Months Ended
June 30, 2023
|
|
|
|
Gathering and
|
|
Water
|
|
|
|
Consolidated
|
|
|
|
Processing
|
|
Handling
|
|
Unallocated
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue–Antero
Resources
|
|
$
|
223,068
|
|
|
64,613
|
|
|
—
|
|
|
287,681
|
|
Revenue–third-party
|
|
|
—
|
|
|
274
|
|
|
—
|
|
|
274
|
|
Gathering—low pressure
fee rebate
|
|
|
(12,000)
|
|
|
—
|
|
|
—
|
|
|
(12,000)
|
|
Amortization of
customer relationships
|
|
|
(9,272)
|
|
|
(8,396)
|
|
|
—
|
|
|
(17,668)
|
|
Total
revenues
|
|
|
201,796
|
|
|
56,491
|
|
|
—
|
|
|
258,287
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
operating
|
|
|
25,154
|
|
|
27,441
|
|
|
—
|
|
|
52,595
|
|
General and
administrative (excluding equity-based
compensation)
|
|
|
5,126
|
|
|
2,832
|
|
|
1,705
|
|
|
9,663
|
|
Equity-based
compensation
|
|
|
6,244
|
|
|
2,029
|
|
|
226
|
|
|
8,499
|
|
Facility
idling
|
|
|
—
|
|
|
637
|
|
|
—
|
|
|
637
|
|
Depreciation
|
|
|
22,196
|
|
|
13,037
|
|
|
—
|
|
|
35,233
|
|
Accretion of asset
retirement obligations
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
Loss on settlement of
asset retirement obligations
|
|
|
—
|
|
|
279
|
|
|
—
|
|
|
279
|
|
Loss on asset
sale
|
|
|
5,814
|
|
|
—
|
|
|
—
|
|
|
5,814
|
|
Total operating
expenses
|
|
|
64,534
|
|
|
46,299
|
|
|
1,931
|
|
|
112,764
|
|
Operating
income
|
|
|
137,262
|
|
|
10,192
|
|
|
(1,931)
|
|
|
145,523
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
—
|
|
|
—
|
|
|
(55,388)
|
|
|
(55,388)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
25,972
|
|
|
—
|
|
|
—
|
|
|
25,972
|
|
Total other income
(expense)
|
|
|
25,972
|
|
|
—
|
|
|
(55,388)
|
|
|
(29,416)
|
|
Income before income
taxes
|
|
|
163,234
|
|
|
10,192
|
|
|
(57,319)
|
|
|
116,107
|
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
(29,095)
|
|
|
(29,095)
|
|
Net income and
comprehensive income
|
|
$
|
163,234
|
|
|
10,192
|
|
|
(86,414)
|
|
|
87,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
$
|
242,525
|
|
ANTERO MIDSTREAM
CORPORATION
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(In
thousands)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
2023
|
|
Cash flows provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
159,435
|
|
|
173,519
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
63,975
|
|
|
70,429
|
|
Accretion of asset
retirement obligations
|
|
|
128
|
|
|
88
|
|
Impairment of property
and equipment
|
|
|
3,702
|
|
|
—
|
|
Deferred income tax
expense
|
|
|
54,466
|
|
|
60,765
|
|
Equity-based
compensation
|
|
|
8,473
|
|
|
14,826
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(46,056)
|
|
|
(50,428)
|
|
Distributions from
unconsolidated affiliates
|
|
|
60,505
|
|
|
63,570
|
|
Amortization of
customer relationships
|
|
|
35,336
|
|
|
35,336
|
|
Amortization of
deferred financing costs
|
|
|
2,828
|
|
|
2,957
|
|
Settlement of asset
retirement obligations
|
|
|
(916)
|
|
|
(695)
|
|
Loss on settlement of
asset retirement obligations
|
|
|
539
|
|
|
620
|
|
Loss (gain) on asset
sale
|
|
|
(150)
|
|
|
5,569
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
|
6,099
|
|
|
(5,470)
|
|
Accounts
receivable–third party
|
|
|
517
|
|
|
481
|
|
Other current
assets
|
|
|
158
|
|
|
(800)
|
|
Accounts
payable–Antero Resources
|
|
|
(2,427)
|
|
|
(2,515)
|
|
Accounts payable–third
party
|
|
|
9,480
|
|
|
(889)
|
|
Accrued
liabilities
|
|
|
(1,911)
|
|
|
942
|
|
Net cash provided by
operating activities
|
|
|
354,181
|
|
|
368,305
|
|
Cash flows provided by
(used in) investing activities:
|
|
|
|
|
|
|
|
Additions to gathering
systems and facilities
|
|
|
(131,665)
|
|
|
(59,156)
|
|
Additions to water
handling systems
|
|
|
(30,369)
|
|
|
(25,583)
|
|
Investments in
unconsolidated affiliates
|
|
|
—
|
|
|
(262)
|
|
Acquisition of
gathering systems and facilities
|
|
|
—
|
|
|
(266)
|
|
Cash received in asset
sales
|
|
|
147
|
|
|
1,071
|
|
Change in other
assets
|
|
|
—
|
|
|
(15)
|
|
Change in other
liabilities
|
|
|
(805)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(162,692)
|
|
|
(84,211)
|
|
Cash flows provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
Dividends to common
stockholders
|
|
|
(217,445)
|
|
|
(218,971)
|
|
Dividends to preferred
stockholders
|
|
|
(275)
|
|
|
(275)
|
|
Payments of deferred
financing costs
|
|
|
(302)
|
|
|
—
|
|
Borrowings
(repayments) on bank credit facilities, net
|
|
|
33,300
|
|
|
(56,500)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(6,767)
|
|
|
(8,348)
|
|
Net cash used in
financing activities
|
|
|
(191,489)
|
|
|
(284,094)
|
|
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
|
|
$
|
86,688
|
|
|
107,607
|
|
Increase (decrease) in
accrued capital expenditures and accounts payable for property
and
equipment
|
|
$
|
2,822
|
|
|
(2,814)
|
|
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SOURCE Antero Midstream Corporation