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Antero Midstream (AM) Q2 Earnings Beat Estimates, Rise Y/Y

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Antero Midstream Corporation (AM - Free Report) reported second-quarter 2020 adjusted earnings per share of 22 cents, up almost 47% from 15 cents in the year-ago quarter. Moreover, the figure beat the Zacks Consensus Estimate of 20 cents. The strong earnings can be attributed to growth in compression and fresh water distribution fees.

However, quarterly revenues of $220 million missed the Zacks Consensus Estimate of $232 million and declined from $256 million in the year-ago quarter.

Antero Midstream Corporation Price, Consensus and EPS Surprise

 

Antero Midstream Corporation Price, Consensus and EPS Surprise

Antero Midstream Corporation price-consensus-eps-surprise-chart | Antero Midstream Corporation Quote

Operational Performance

During second-quarter 2020, average daily compression volumes were recorded at 2,712 million cubic feet (MMcf/D), up 13% from the year-ago level of 2,396 MMcf/D. On a per-Mcf basis, compression fee was 20 cents, up 5% from prior-year quarter’s 19 cents.

In the quarter, high pressure gathering volumes totaled 2,839 MMcf/D, up from the year-ago quarter’s 2,620 MMcf/D. On a per-Mcf basis, average gathering high pressure fee was 20 cents, in line with the prior-year level.

Low pressure gathering volumes averaged 2,869 MMcf/D, up from the second-quarter 2019 figure of 2,662 MMcf. On a per-Mcf basis, average gathering low pressure fee was 33 cents, flat with the prior-year level.

Fresh water delivery volumes came in at 102 MBbls/D, down from the prior-year level of 122 MBbls/D. On a per-barrel basis, average fresh water distribution fee was $3.96 per barrel in the second quarter, improving from the prior-year level of $3.90.

Operating Expenses

Total operating expenses in the quarter were recorded at $85 million.

Balance Sheet

As of Jun 30, Antero Midstream had cash and cash equivalents of almost $3 million. As of the same date, the company had $3,088.9 million of long-term debt and a long-term debt-to-capitalization ratio of 0.55.

DCF

Distributable cash flow was $152 million, with coverage of 1.0x.

Guidance

The company is planning to invest capital in the range of $200 million to $215 million in 2020. This shows a drop from the initial projection of $300 million to $325 million.

Alongside, the company raised its free cash flow guidance for 2020 to $445-$475 million from $375-$425 million.

Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include NGL Energy Partners LP (NGL - Free Report) , Cimarex Energy Co and EOG Resources, Inc. (EOG - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NGL Energy Partners’ bottom line for second-quarter 2020 is expected to rise 92.7% year over year.

Cimarex Energy’ 2020 bottom-line estimates have witnessed upward revisions over the past 30 days.

EOG Resources’ 2020 bottom-line estimates have risen more than 200% over the past 30 days.

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