NYSE$AM

Antero Midstream Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter 2023 results, 2024 guidance, and a $500 million share repurchase program.

Antero Midstream reported strong Q4 2023 results with double-digit year-over-year throughput and Adjusted EBITDA growth. The company's capital investment strategy resulted in an 18% Return on Invested Capital in 2023. A new $500 million share repurchase program was authorized.

  • Low pressure gathering volumes increased by 10% year-over-year, averaging 3,377 MMcf/d.
  • Compression volumes increased by 14% year-over-year, averaging 3,343 MMcf/d.
  • Adjusted EBITDA increased by 10% year-over-year to $254 million, driven by throughput growth.
  • Free Cash Flow after dividends was $48 million, a 500% increase compared to the prior year quarter.

Headline financials

Total Revenue

$278M

Previous: $242M+15.0%
EPS (adj)

$0.24

Previous: $0.20+20.0%
Adjusted EBITDA

$254M

Previous: $231M+10.0%
Capital Expenditures

$46M

Previous: $63M-27.0%
Adjusted Free Cash Flow after dividends

$48M

Previous: $8M+500.0%
Shares Repurchased

500.0M

No prior period
Net Income

$100M

Previous: $83M+20.5%
Operating Income

$156M

Previous: $144M+8.2%
Gross Profit

$174M

Previous: $160M+9.3%
Stock-Based Comp

$8.43M

Previous: $5.63M+49.8%

Revenue & EPS history

Antero Midstream · Revenue · Quarterly

$278M

Q4 2023+15%vs Q4 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Antero Midstream · $246M total across 3 segments · Q3 2023

  • Gathering and Processing
    $206M+17.0%
  • Water Handling
    $58M+5.5%
  • Amortization of Customer Relationships
    -$18M+0.0%

Forward guidance

Antero Midstream is forecasting Net Income of $405 to $445 million and Adjusted Net Income of $460 to $500 million. The Company is forecasting Adjusted EBITDA of $1,020 to $1,060 million. Antero Midstream is forecasting Free Cash Flow before dividends of $670 to $710 million and Free Cash Flow after dividends of $235 to $275 million for 2024, assuming an annualized dividend of $0.90 per share.

Tailwinds

  • Adjusted EBITDA is expected to grow by 5% compared to 2023 at the midpoint.
  • Growth is driven by the expiration of the low pressure gathering fee rebate program.
  • Inflation adjustments to Antero Midstream’s fixed fees.
  • Flat-to-low single digit throughput growth in 2024 compared to 2023.
  • Free Cash Flow after dividends to expand significantly.

Headwinds

  • Capital budget of $150 to $170 million, a 14% decrease compared to 2023 at the midpoint.
  • Approximately $130 million of investment in gathering and compression infrastructure.
  • $30 million for fresh water delivery and wastewater blending and pipeline infrastructure in 2024.
  • Expects to invest approximately 60% to 65% of its full year capital budget in the second and third quarter.
  • Substantially all of Antero Midstream’s 2024 capital budget is focused in the Marcellus Shale liquids-rich midstream corridor.

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 Q4 2023

Historical avgQ4 2023

-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

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