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Antero Midstream (AM) Q2 Earnings In Line, Revenues Miss

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Antero Midstream Corporation (AM - Free Report) reported second-quarter adjusted earnings per share of 20 cents, in line with the Zacks Consensus Estimate but down from year-ago quarter earnings of 23 cents.

Total quarterly revenues of $229 million missed the Zacks Consensus Estimate of $230 million. The top line decreased from $233 million in the year-ago quarter.

Antero Midstream’s in line earnings can be attributed to higher average daily compression volumes, offset by increased total operating expenses.

Operational Performance

In second-quarter 2022, average daily compression volumes were recorded at 2,776 million cubic feet (MMcf/d), up from the year-ago level of 2,744 MMcf/d. On a per-Mcf basis, the compression fee was 21 cents, improving from the prior-year quarter’s 20 cents.

In the reported quarter, high-pressure gathering volumes totaled 2,819 MMcf/d, down from the year-ago period’s 2,826 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 21 cents, improving from the prior-year level of 20 cents.

Low-pressure gathering volumes averaged 2,970 MMcf/d, up from the second-quarter 2021 figure of 2,897 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 34 cents, higher than the prior-year level of 33 cents.

Freshwater delivery volumes were at 110 MBbls/d, up 6% from the prior-year level of 104 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.09 per barrel in the reported quarter, up from $3.97 in the prior-year quarter.

Operating Expenses

In second-quarter 2022, direct operating expenses of Antero Midstream were recorded at $43.3 million, up from $39.6 million a year ago.

Antero Midstream’s total operating expenses in the quarter were $100.5 million, increasing from the second-quarter 2021 levels of $81.4 million.

Balance Sheet

As of Jun 30, Antero Midstream had no cash and cash equivalents. As of the same date, Antero Midstream had $3,158 million of long-term debt.

Other Details

Antero Midstream’s free cash flow after dividend payments was a $2.3-million deficit in the second quarter.

Capital expenditure (accrual basis) of Antero Midstream was recorded at $70.2 million. Net cash from operations was $169.5 million in the reported quarter.

Zacks Rank & Stocks to Consider

Antero Midstream currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the energy space include EOG Resources (EOG - Free Report) , BP plc (BP - Free Report) and Continental Resources, Inc. . While EOG Resources and Continental Resources carry a Zacks Rank #2 (Buy), BP sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EOG Resources, a leading oil and natural gas exploration and production company, is well placed to capitalize on the crude rally.

EOG Resources is strongly committed to returning capital to shareholders. Since its transition to premium drilling, the company has returned more than $10 billion in cash to stockholders. With the employment of premium drilling, EOG Resources will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.

High oil prices are aiding BP’s upstream operations. The sizable refining and marketing operations of BP will protect it if the crude pricing scenario turns unfavorable again.  In 2022, it is likely to witness earnings growth of 106.5%. Over the past few quarters, BP has successfully been reducing long-term debt.

Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of the company are among the best in the industry.

Headquartered in Oklahoma City, Continental Resources is likely to see earnings growth of 155.6% in 2022.


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