Antero Midstream Corporation AM reported second-quarter 2020 adjusted earnings per share of 22 cents, up almost 47% from 15 cents in the year-ago quarter. Moreover, the figure beat the Zacks Consensus Estimate of 20 cents. The strong earnings can be attributed to growth in compression and fresh water distribution fees.
However, quarterly revenues of $220 million missed the Zacks Consensus Estimate of $232 million and declined from $256 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
During second-quarter 2020, average daily compression volumes were recorded at 2,712 million cubic feet (MMcf/D), up 13% from the year-ago level of 2,396 MMcf/D. On a per-Mcf basis, compression fee was 20 cents, up 5% from prior-year quarter’s 19 cents.
In the quarter, high pressure gathering volumes totaled 2,839 MMcf/D, up from the year-ago quarter’s 2,620 MMcf/D. On a per-Mcf basis, average gathering high pressure fee was 20 cents, in line with the prior-year level.
Low pressure gathering volumes averaged 2,869 MMcf/D, up from the second-quarter 2019 figure of 2,662 MMcf. On a per-Mcf basis, average gathering low pressure fee was 33 cents, flat with the prior-year level.
Fresh water delivery volumes came in at 102 MBbls/D, down from the prior-year level of 122 MBbls/D. On a per-barrel basis, average fresh water distribution fee was $3.96 per barrel in the second quarter, improving from the prior-year level of $3.90.
Total operating expenses in the quarter were recorded at $85 million.
As of Jun 30, Antero Midstream had cash and cash equivalents of almost $3 million. As of the same date, the company had $3,088.9 million of long-term debt and a long-term debt-to-capitalization ratio of 0.55.
Distributable cash flow was $152 million, with coverage of 1.0x.
The company is planning to invest capital in the range of $200 million to $215 million in 2020. This shows a drop from the initial projection of $300 million to $325 million.
Alongside, the company raised its free cash flow guidance for 2020 to $445-$475 million from $375-$425 million.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include NGL Energy Partners LP NGL, Cimarex Energy Co XEC and EOG Resources, Inc. EOG, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NGL Energy Partners’ bottom line for second-quarter 2020 is expected to rise 92.7% year over year.
Cimarex Energy’ 2020 bottom-line estimates have witnessed upward revisions over the past 30 days.
EOG Resources’ 2020 bottom-line estimates have risen more than 200% over the past 30 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Antero Midstream Corporation (AM) : Free Stock Analysis Report
Cimarex Energy Co (XEC) : Free Stock Analysis Report
NGL Energy Partners LP (NGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research