NYSE$AM

Antero Midstream Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter 2020 financial results and updated 2020 capital budget and guidance.

Antero Midstream reported a net loss of $(393) million, or $(0.81) per share, and adjusted EBITDA of $217 million, a 7% increase compared to the prior year quarter. The company announced further reductions to its capital budget that result in a 65% decrease year-over-year in capital expenditures.

  • Low pressure gathering volumes averaged 2,717 MMcf/d, a 6% increase as compared to the prior year quarter.
  • Fresh water delivery volumes averaged 183 MBbl/d during the quarter, a 20% increase compared to the first quarter of 2019.
  • Adjusted EBITDA was $217 million, a 7% increase compared to the prior year quarter.
  • Total capital expenditures were $80 million during the first quarter of 2020.

Headline financials

Total Revenue

$220M

Previous: $54.1M+306.1%
EPS (adj)

$0.23

Previous: $0.19+21.1%
Adjusted EBITDA

$217M

Previous: $203M+6.9%
Capital Expenditures

$80M

No prior period
Adjusted Free Cash Flow after dividends

$164M

No prior period
Free Cash Flow

-$15.5M

Previous: $1.97M-886.2%
Net Income

$88.4M

Previous: $9.65M+816.7%
Operating Income

$135M

Previous: $10.6M+1170.0%
Gross Profit

$178M

Previous: $39.1M+354.1%
Cash & Equivalents

$3M

Previous: $1.97M+52.3%
Total Assets

$5.72B

Previous: $6.67B-14.3%
Stock-Based Comp

$2.7M

Previous: $21.5M-87.5%

Revenue & EPS history

Antero Midstream · Revenue · Quarterly

$220M

Q1 2020+306.1%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Antero Midstream · $244M total across 3 segments · Q1 2020

  • Gathering and Processing
    $164M
  • Water Handling
    $98M
  • Amortization of Customer Relationships
    -$18M

Forward guidance

Antero Midstream expects a reduction in fresh water delivery volumes in the second half of 2020 and expects to pay three quarterly low pressure gathering rebates. Antero Midstream's updated guidance highlights the flexibility of Antero Midstream’s capital budget and our dedication to capital discipline.

Tailwinds

  • Antero Resources is 94% hedged on its expected natural gas production in 2020 at a price of $2.87/MMbtu.
  • Antero Resources is 100% hedged on its expected crude oil and pentane-equivalent production at a price of $55.63/barrel.
  • The 65% year-over-year reduction in capital expenditures for 2020 more than offsets the reduction in adjusted EBITDA guidance.
  • Improved free cash flow position of $420 to $450 million before return of capital to shareholders.
  • Balance sheet with almost $1.0 billion of liquidity and below peer average leverage of 3.7x.

Headwinds

  • Reduction in Adjusted EBITDA guidance is primarily driven by a reduction in fresh water delivery volumes in the second half of 2020.
  • Three quarterly low pressure gathering rebates are expected, resulting in $36 million of midstream fee reductions.
  • Uncertain market conditions impacting the energy industry.
  • Potential impacts of the decline in demand for oil and NGLs including additional storage capacity in the Northeast.
  • A curtailment could result in a temporary reduction in throughput volumes and revenues for Antero Midstream.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-0.8%

Avg return

30 days after

49%

17 / 35 earnings

Positive

+9.2%

Q1 2022

Best reaction

-12.5%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-0.5%-4.3%
Q4 2025+2.3%+4.9%+13.2%
Q3 2025-0.2%-1.9%+2.7%
Q1 2025+1.9%+5.8%+13.5%
Q4 2024+6.1%+5.9%+7.3%
Q3 2024-3.4%-3.0%+7.3%
Q2 2024-3.6%-8.0%+2.1%
Q1 2024+2.1%+1.7%+3.4%
Q4 2023+6.2%+6.2%+14.4%
Q3 2023+1.7%+0.4%+9.1%
Q2 2023-0.9%+1.8%+1.8%
Q1 2023+4.7%+10.3%+5.7%
Q4 2022+1.0%-2.4%-9.1%
Q3 2022+0.5%+4.0%+8.0%
Q2 2022+0.9%+2.9%+7.5%
Q1 2022+9.2%+3.7%+11.5%
Q4 2021-5.3%-3.7%+2.6%
Q3 2021-1.7%-3.1%-7.2%
Q2 2021+0.7%-3.9%+0.9%
Q1 2021-2.2%-2.3%+6.8%
Q4 2020-12.5%-12.4%-3.2%
Q3 2020-5.8%-11.9%+9.6%
Q1 2020+2.6%+1.7%+3.2%
Q4 2019-0.6%-4.8%-31.7%
Q3 2019-1.9%-8.9%-36.5%
Q2 2019-6.7%-12.5%-21.3%
Q1 2019+0.7%-1.1%+0.1%
Q4 2018+1.5%-5.9%-8.6%
Q3 2018-0.4%-3.9%-6.0%
Q2 2018-0.9%-1.7%-12.1%
Q1 2018+4.3%+3.3%+9.2%
Q4 2017+4.5%+4.6%-13.4%
Q3 2017-2.8%-2.6%-3.7%
Q2 2017-5.8%-7.1%-10.4%
Q1 2017-1.3%-3.5%-0.2%
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q1 2015
Q4 2014
Q2 2014

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro