Antero Midstream Corporation (AM - Free Report) reported second-quarter 2019 adjusted earnings per share of 15 cents, up 19% from the year-ago level. However, the figure missed the Zacks Consensus Estimate of 22 cents.
Revenues in the quarter rose 5% year over year to $256 million. The top line, however, missed the Zacks Consensus Estimate of $281 million.
The weaker-than-expected results can be attributed to lower fresh water delivery volumes, partially offset by growth in gathering, compression and Clearwater treatment volumes.
Adjusted distributable cash flow of $156.1 million, with coverage of 1.0x, was up from the prior-year quarter’s $142.7 million.
Second-quarter 2019 dividend of 30.75 cents per share has been approved by the board of directors. The dividend is likely to be paid on Aug 7 to its stockholders of record as of Jul 26.
During second-quarter 2019, compression volumes were recorded at 218,020 million cubic feet (MMcf), up from the year-ago level of 141,819 MMcf. On a per-Mcf basis, compression fee was 19 cents, in line with the prior-year level.
In the second quarter, high pressure gathering volumes were 238,406 MMcf, up from the year-ago period’s 175,818 MMcf. On a per-Mcf basis, average gathering high pressure fee was 20 cents, higher than the prior-year level 19 cents.
Low pressure gathering volumes averaged 242,266 MMcf, up from the second-quarter 2018 figure of 180,268 MMcf. On a per-Mcf basis, average gathering low pressure fee was 33 cents, higher than the year-ago level of 32 cents.
Fresh water delivery volumes came in at 11,147 thousand barrels (MBbls), down from the prior-year level of 20,766 MBbls. On a per-barrel basis, average fresh water distribution fee was $3.90 in the second quarter, improving from the prior-year level of $3.78.
Total pro-forma operating expenses in the quarter were recorded at $138 million.
As of Jun 30, Antero Midstream had $7.8 million in cash and cash equivalents, and $2,526.3 million of long-term debt. As of the same date, it had a long-term debt-to-capitalization ratio of 38.9%.
The company’s Sherwood 12 processing plant, having 200 MMcf/d of capacity, will likely come online in third-quarter 2019.
Zacks Rank and Stocks to Consider
Currently, Antero Midstream has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the energy sector are given below:
MPLX LP (MPLX - Free Report) provides midstream infrastructures to upstream companies. Its bottom line in 2019 is expected to improve 23.6% from a year ago. The company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cheniere Energy, Inc. (LNG - Free Report) is an upstream energy company primarily engaged in liquefied natural gas-related businesses. Its bottom line in 2019 is expected to improve nearly 5% from a year ago. The company has a Zacks Rank #2.
Transportadora De Gas Sa Ord B (TGS - Free Report) is a midstream energy firm. In the trailing four quarters, the company delivered average positive earnings surprise of 114%. The company has a Zacks Rank #1.
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