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Antero Midstream (AM) Q1 Earnings Meet Estimates, Revenues Top
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Antero Midstream (AM - Free Report) reported first-quarter 2024 adjusted earnings per share of 24 cents, in line with the Zacks Consensus Estimate. The bottom line improved from the year-ago quarter’s level of 21 cents.
Total quarterly revenues of $279 million surpassed the Zacks Consensus Estimate of $274 million. The top line also increased from $259.5 million recorded in the year-ago quarter.
The in-line earnings were driven by higher compression volumes and increased gathering volumes.
Antero Midstream Corporation Price, Consensus and EPS Surprise
In the first quarter, average daily compression volumes were 3,260 million cubic feet (MMcf/d) compared with 3,137 MMcf/d in the year-ago quarter. The reported figure was also higher than our estimate of 3,195 MMcf/d. On a per-Mcf basis, the compression fee was 21 cents, in line with the prior-year quarter’s number.
High-pressure gathering volumes totaled 2,966 MMcf/d, up from the year-ago period’s level of 2,801 MMcf/d. The figure was also higher than our estimate of 2,882 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 22 cents, higher than the year-ago quarter’s 21 cents.
Low-pressure gathering volumes averaged 3,301 MMcf/d compared with 3,171 MMcf/d in the first quarter of 2023. The figure came in higher than our estimate of 3,202 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 36 cents, higher than the prior-year quarter’s level of 35 cents. The reported figure was in line with our estimate.
Freshwater delivery volumes were registered at 113 MBbls/d, down approximately 8% from the prior-year quarter figure of 123 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.30 compared with $4.21 a year ago. The figure was also higher than our estimate of $4.22.
Operating Expenses
Direct operating expenses amounted to $53.9 million, down from $57.9 million recorded a year ago.
Antero Midstream’s total operating expenses totaled $112.8 million, up from $111.1 million recorded in the corresponding period of 2023.
Balance Sheet
As of Mar 31, 2024, the company had cash and cash equivalents of $26.1 million. As of the same date, the company had $3,174.9 million of long-term debt.
Outlook
For 2024, Antero Midstream reiterated adjusted EBITDA to be in the range of $1,020-$1,060 million, indicating a 5% increase from the 2023 level at the midpoint. The company projects free cash flows after dividends in the range of $235-$275 million for 2024. The capital budget for 2024 is expected to be in the band of $150-$170 million, indicating a 14% decrease from the 2023 level at the midpoint.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.
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Antero Midstream (AM) Q1 Earnings Meet Estimates, Revenues Top
Antero Midstream (AM - Free Report) reported first-quarter 2024 adjusted earnings per share of 24 cents, in line with the Zacks Consensus Estimate. The bottom line improved from the year-ago quarter’s level of 21 cents.
Total quarterly revenues of $279 million surpassed the Zacks Consensus Estimate of $274 million. The top line also increased from $259.5 million recorded in the year-ago quarter.
The in-line earnings were driven by higher compression volumes and increased gathering volumes.
Antero Midstream Corporation Price, Consensus and EPS Surprise
Antero Midstream Corporation price-consensus-eps-surprise-chart | Antero Midstream Corporation Quote
Operational Performance
In the first quarter, average daily compression volumes were 3,260 million cubic feet (MMcf/d) compared with 3,137 MMcf/d in the year-ago quarter. The reported figure was also higher than our estimate of 3,195 MMcf/d. On a per-Mcf basis, the compression fee was 21 cents, in line with the prior-year quarter’s number.
High-pressure gathering volumes totaled 2,966 MMcf/d, up from the year-ago period’s level of 2,801 MMcf/d. The figure was also higher than our estimate of 2,882 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 22 cents, higher than the year-ago quarter’s 21 cents.
Low-pressure gathering volumes averaged 3,301 MMcf/d compared with 3,171 MMcf/d in the first quarter of 2023. The figure came in higher than our estimate of 3,202 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 36 cents, higher than the prior-year quarter’s level of 35 cents. The reported figure was in line with our estimate.
Freshwater delivery volumes were registered at 113 MBbls/d, down approximately 8% from the prior-year quarter figure of 123 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.30 compared with $4.21 a year ago. The figure was also higher than our estimate of $4.22.
Operating Expenses
Direct operating expenses amounted to $53.9 million, down from $57.9 million recorded a year ago.
Antero Midstream’s total operating expenses totaled $112.8 million, up from $111.1 million recorded in the corresponding period of 2023.
Balance Sheet
As of Mar 31, 2024, the company had cash and cash equivalents of $26.1 million. As of the same date, the company had $3,174.9 million of long-term debt.
Outlook
For 2024, Antero Midstream reiterated adjusted EBITDA to be in the range of $1,020-$1,060 million, indicating a 5% increase from the 2023 level at the midpoint. The company projects free cash flows after dividends in the range of $235-$275 million for 2024. The capital budget for 2024 is expected to be in the band of $150-$170 million, indicating a 14% decrease from the 2023 level at the midpoint.
Zacks Rank and Key Picks
Currently, AM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energysector are SM Energy (SM - Free Report) , Hess Corporation (HES - Free Report) and Sunoco LP (SUN - Free Report) . SM Energy and Hess presently sport a Zacks Rank #1 (Strong Buy), while Sunoco carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.