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Antero Midstream (AM) Q4 Earnings and Revenues Top Estimates

Zacks Equity Research

Antero Midstream Partners L.P.’s AM fourth-quarter 2018 adjusted earnings per limited partner unit of 53 cents beat the Zacks Consensus Estimate of 43 cents. Also, the bottom line improved from earnings of 34 cents in the year-ago quarter.
 

Antero Midstream Partners LP Price, Consensus and EPS Surprise

 

Antero Midstream Partners LP Price, Consensus and EPS Surprise | Antero Midstream Partners LP Quote

 

Revenues in the quarter rose to $282 million from $210 million in the year-ago quarter. Also, the top line beat the Zacks Consensus Estimate of $270 million.

The growth in gathering and compression volumes has boosted the partnership's quarterly earnings and revenues.

Distribution

Adjusted distributable cash flow was $167 million, up 43% from the prior-year quarter's tally and provided coverage of 1.3x.

On Jan 16, Antero Midstream Partners declared a quarterly cash distribution of 47 cents per unit, or $1.88 per unit on an annualized basis, in the quarter ended Dec 31, 2018. This represents an increase of 29% and 7% on an annual and sequential basis, respectively. The distribution is payable on Feb 13 to unitholders of record at the close of business on Feb 1.

Operational Performance

During the fourth quarter of 2018, compression volumes averaged a record of 2,215million cubic feet per day (MMcf/d), up 63% from the year-ago quarter's level. Also, the figure beat the Zacks Consensus Estimate of 1,969 MMcf/d. On a per-Mcf basis, compression fee was 19 cents in line with the prior-year quarter's level and the Zacks Consensus Estimate.

In the fourth quarter, high pressure gathering volumes averaged 2,569MMcf/d, up 39% from the year-ago quarter's tally. Also, the figure beat the Zacks Consensus Estimate of 2,360 MMcf/d. On a per-Mcf basis, average gathering high pressure fee was 19 cents, in line with the prior-year quarter’s level and the Zacks Consensus Estimate.

Low pressure gathering volumes averaged 2,602 MMcf/d, up 52% from the figure in the fourth quarter of 2017. The figure came above the Zacks Consensus Estimate of 2,378MMcf/d. On a per-Mcf basis, average gathering low pressure fee was 32 cents, in line with the year-ago quarter's level and the Zacks Consensus Estimate.

Fresh water delivery volumes averaged 136MBbl/d, down9% from the prior-year quarter's level. The figure lagged the Zacks Consensus Estimate of 139MBbl/d. The downside was caused by lower-than-expected well completions. During the quarter, 30 well completions with its fresh water delivery system were serviced by Antero Midstream, down 7% from the year-ago quarter's tally. On a per-barrel basis, average fresh water distribution fee was $3.78 in the fourth quarter, which lagged the Zacks Consensus Estimate of $3.86 but improved from the prior-year quarter's level of $3.71.

Operating Expenses

Total operating expenses during the quarter was $26.6 million, down from $143.1 million in the prior-year quarter.

Financials

During the quarter, the partnership’s capital investments were $129 million. Antero Midstream made a withdrawal of $990 million from its bank credit facility of $2 billion, which resulted in a liquidity of $1 billion.

Zacks Rank & Key Picks

Antero Midstream Partners carries a Zacks Rank #3 (Hold).

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Headquartered in Ontario, Canada, Canadian Solar operates as a vertically integrated manufacturer of silicon ingots, wafers, cells, solar modules (panels) and custom-designed solar power applications. The company is expected to witness year-over-year earnings growth of 67.5% in 2018.

Bristol-based Contura Energy is a mining company. The company reported average negative surprise of 17.9% in the trailing four quarters.

Evergy, through its operating subsidiaries — Kansas City Power & Light Company (KCP&L) and Westar Energy, Inc — provides clean, safe and reliable energy in Kansas and Missouri. The company posted average negative earnings surprise of 11.1% in the last four quarters.

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