Antero Midstream Corp Stock Price, News & Analysis

Antero Midstream (NYSE: AM) reported its second quarter 2024 financial and operating results. Key highlights include:

• Net Income was $86 million, or $0.18 per diluted share, consistent with the prior year quarter.
• Adjusted Net Income rose to $110 million, or $0.23 per diluted share, marking a 5% increase.
• Adjusted EBITDA was $255 million, up 5% from Q2 2023.
• Capital expenditures totaled $51 million.
• Free Cash Flow after dividends increased by 41% to $43 million.
• A strategic acquisition of Marcellus gathering and compression assets was completed for $70 million.
• Maintained leverage at 3.1x and received a credit rating upgrade to BB+ from S&P Global Ratings.
• Extended credit facility maturity to 2029, maintaining commitments of $1.25 billion.

Operational metrics showed mixed results with a 1% decrease in low pressure gathering volumes and a 23% drop in fresh water delivery volumes, while high pressure gathering volumes increased by 2%.

Antero Resources (NYSE: AR) reported its Q2 2024 results, highlighting a mixed performance.

Net production averaged 3.4 Bcfe/d, up 1% YoY. Natural gas production declined 4% to 2.1 Bcf/d, while liquids production rose 10% to 212 MBbl/d, now 37% of total production.

Realized natural gas equivalent price was $2.98 per Mcfe, a $1.09 premium to NYMEX. Reported a net loss of $66 million, with an adjusted net loss of $60 million (Non-GAAP). Adjusted EBITDAX was $151 million, and net cash from operations was $143 million.

Operational highlights include a record 11.9 completion stages per day and the second-highest production rate per well. Investment grade rating was achieved post upgrade from S&P.

Guidance for full-year 2024 was increased, with production expected between 3.375 to 3.425 Bcfe/d, driven by higher liquids volumes. C3+ NGL realized price guidance was raised, potentially boosting annual free cash flow by $60 million.

Despite financial losses, operational efficiency and strategic moves in NGL pricing remain strong points for Antero.

Antero Midstream (NYSE: AM) has declared a cash dividend of $0.225 per share for Q2 2024, totaling $0.90 annually. This marks their 39th consecutive quarterly dividend since their 2014 IPO. The dividend will be payable on August 7, 2024, to shareholders recorded by July 24, 2024. No shares were repurchased this quarter. Antero will release its Q2 2024 earnings on July 31, 2024, post-trading hours, and will host a conference call on August 1, 2024, at 10:00 am MT to discuss financial results. A replay of the call will be available until August 8, 2024. Visit www.anteromidstream.com for the live webcast and replay.

Antero Resources (NYSE: AR) will release its Q2 2024 earnings on July 31, 2024, post-market close. A conference call to discuss the financial results will occur on August 1, 2024, at 9:00 am MT. Analysts can join the call by dialing 877-407-9079 (U.S.) or 201-493-6746 (International). The conference ID is 13743656. A replay will be available until August 8, 2024. The earnings call and presentation can be accessed on Antero's website.

Antero Resources is a leading independent natural gas producer in the Appalachian Basin, operating primarily in West Virginia and Ohio, alongside Antero Midstream (NYSE: AM). The company focuses on acquiring, developing, and producing unconventional natural gas properties.

Antero Resources (NYSE: AR) has been upgraded to an investment grade credit rating of BBB- from BB+ by S&P Global Ratings, effective May 15, 2024. This upgrade follows the investment grade rating by Fitch Ratings since September 2022. The new rating is expected to significantly reduce letters of credit tied to Antero's firm transportation portfolio and lower interest expenses.

Michael Kennedy, CFO of Antero Resources, attributed this achievement to the company's development program and debt reduction strategy, which has cut over $2 billion in debt since late 2019. Antero Resources is a leading operator in the Appalachian Basin, focusing on natural gas and liquids production.

Antero Midstream announced a bolt-on acquisition of gathering and compression assets in the Marcellus Shale for $70 million, increasing 2024 guidance, and redeeming 2026 Senior Notes. The acquisition is expected to boost Free Cash Flow, EBITDA, and Free Cash Flow after dividends. The company aims to enhance shareholder value through strategic acquisitions.