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Antero Midstream (AM) Gains 8% Since In-Line Q3 Earnings
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Antero Midstream Corporation (AM - Free Report) stock jumped almost 8% since it reported third-quarter 2022 results on Oct 26, thanks to higher compression fee and average gathering high-pressure fee. The positives were offset partially by increased direct operating expenses.
The company reported third-quarter adjusted earnings per share of 19 cents, in line with the Zacks Consensus Estimate but down from year-ago quarter earnings of 22 cents.
Total quarterly revenues of $231 million missed the Zacks Consensus Estimate of $240 million. The top line, however, increased from $225 million in the year-ago quarter.
Antero Midstream Corporation Price, Consensus and EPS Surprise
In third-quarter 2022, average daily compression volumes were recorded at 2,794 million cubic feet (MMcf/d), up from the year-ago level of 2,734 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 2,802 MMcf/d, down from the year-ago period’s 2,811 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 2,952 MMcf/d, up from the third-quarter 2021 figure of 2,880 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 103 MBbls/d, up 13% from the prior-year level of 91 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.04 per barrel in the reported quarter, up from $3.96.
Operating Expenses
In third-quarter 2022, direct operating expenses of Antero Midstream were recorded at $46.6 million, up from $39.5 million a year ago.
Antero Midstream’s total operating expenses in the quarter were $93.3 million, increasing from the third-quarter 2021 levels of almost $83 million.
Balance Sheet
As of Sep 30, Antero Midstream had no cash and cash equivalents. As of the same date, Antero Midstream had $3,143.2 million of long-term debt.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.
The sizable refining and marketing operations of BP provides significant protection to the company from low commodity prices. The company is also focused on the reduction of net debt load. For 2022, BP is likely to witness earnings growth of 134.8%.
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Antero Midstream (AM) Gains 8% Since In-Line Q3 Earnings
Antero Midstream Corporation (AM - Free Report) stock jumped almost 8% since it reported third-quarter 2022 results on Oct 26, thanks to higher compression fee and average gathering high-pressure fee. The positives were offset partially by increased direct operating expenses.
The company reported third-quarter adjusted earnings per share of 19 cents, in line with the Zacks Consensus Estimate but down from year-ago quarter earnings of 22 cents.
Total quarterly revenues of $231 million missed the Zacks Consensus Estimate of $240 million. The top line, however, increased from $225 million in the year-ago quarter.
Antero Midstream Corporation Price, Consensus and EPS Surprise
Antero Midstream Corporation price-consensus-eps-surprise-chart | Antero Midstream Corporation Quote
Operational Performance
In third-quarter 2022, average daily compression volumes were recorded at 2,794 million cubic feet (MMcf/d), up from the year-ago level of 2,734 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 2,802 MMcf/d, down from the year-ago period’s 2,811 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 2,952 MMcf/d, up from the third-quarter 2021 figure of 2,880 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 103 MBbls/d, up 13% from the prior-year level of 91 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.04 per barrel in the reported quarter, up from $3.96.
Operating Expenses
In third-quarter 2022, direct operating expenses of Antero Midstream were recorded at $46.6 million, up from $39.5 million a year ago.
Antero Midstream’s total operating expenses in the quarter were $93.3 million, increasing from the third-quarter 2021 levels of almost $83 million.
Balance Sheet
As of Sep 30, Antero Midstream had no cash and cash equivalents. As of the same date, Antero Midstream had $3,143.2 million of long-term debt.
Zacks Rank & Stocks to Consider
Antero Midstream currently carries a Zacks Rank #3 (Hold). Better-ranked players in the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and BP plc (BP - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.
The sizable refining and marketing operations of BP provides significant protection to the company from low commodity prices. The company is also focused on the reduction of net debt load. For 2022, BP is likely to witness earnings growth of 134.8%.