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Antero Midstream (AM) Q2 Earnings Top on Gathering Volumes
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Antero Midstream Corporation (AM - Free Report) reported second-quarter 2024 adjusted earnings per share of 23 cents, which beat the Zacks Consensus Estimate of 22 cents. The bottom line also improved from the year-ago quarter’s level of 22 cents.
Total quarterly revenues of $270 million surpassed the Zacks Consensus Estimate of $268 million. The top line also increased from $258 million recorded in the year-ago quarter.
The strong quarterly results can be attributed to an increase in high-pressure gathering volumes and relatively consistent compression volumes.
Operational Performance
Average daily compression volumes were 3,246 million cubic feet (MMcf/d) compared with 3,251 MMcf/d in the year-ago quarter. The reported figure was, however, lower than our estimate of 3,379 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 2,994 MMcf/d, up from the year-ago period’s level of 2,922 MMcf/d. The figure was also higher than our estimate of 2,959 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. The reported figure also beat our estimate of 21 cents.
Low-pressure gathering volumes averaged 3,258 MMcf/d compared with 3,304 MMcf/d in the June quarter of 2023. The figure came in lower than our estimate of 3,369 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 81 MBbls/d, down approximately 23% from the prior-year quarter’s figure of 105 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.31 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 $56.4 million, up from $52.6 million recorded a year ago.
Antero Midstream’s total operating expenses totaled $117 million, up from $112.8 million recorded in the corresponding period of 2023.
Balance Sheet
As of Jun 30, 2024, the company had no cash and cash equivalents. As of the same date, the company had $3,816.6 million of long-term debt.
Outlook
For 2024, Antero Midstream projected 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 to be in the band of $235-$275 million for 2024. The capital budget for 2024 is expected to be in the $150-$170 million range, indicating a 14% decrease from the 2023 level at the midpoint.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
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Antero Midstream (AM) Q2 Earnings Top on Gathering Volumes
Antero Midstream Corporation (AM - Free Report) reported second-quarter 2024 adjusted earnings per share of 23 cents, which beat the Zacks Consensus Estimate of 22 cents. The bottom line also improved from the year-ago quarter’s level of 22 cents.
Total quarterly revenues of $270 million surpassed the Zacks Consensus Estimate of $268 million. The top line also increased from $258 million recorded in the year-ago quarter.
The strong quarterly results can be attributed to an increase in high-pressure gathering volumes and relatively consistent compression volumes.
Operational Performance
Average daily compression volumes were 3,246 million cubic feet (MMcf/d) compared with 3,251 MMcf/d in the year-ago quarter. The reported figure was, however, lower than our estimate of 3,379 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 2,994 MMcf/d, up from the year-ago period’s level of 2,922 MMcf/d. The figure was also higher than our estimate of 2,959 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. The reported figure also beat our estimate of 21 cents.
Low-pressure gathering volumes averaged 3,258 MMcf/d compared with 3,304 MMcf/d in the June quarter of 2023. The figure came in lower than our estimate of 3,369 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 81 MBbls/d, down approximately 23% from the prior-year quarter’s figure of 105 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.31 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 $56.4 million, up from $52.6 million recorded a year ago.
Antero Midstream’s total operating expenses totaled $117 million, up from $112.8 million recorded in the corresponding period of 2023.
Balance Sheet
As of Jun 30, 2024, the company had no cash and cash equivalents. As of the same date, the company had $3,816.6 million of long-term debt.
Outlook
For 2024, Antero Midstream projected 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 to be in the band of $235-$275 million for 2024. The capital budget for 2024 is expected to be in the $150-$170 million range, indicating a 14% decrease from the 2023 level at the midpoint.
Zacks Rank and Key Picks
Currently, AM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , VAALCO Energy (EGY - Free Report) and Energy Transfer LP (ET - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each. 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 and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.