Antero Midstream Corp (AM) Announces Q3 2023 Financial and Operating Results
Gathering and compression volumes increased by 13% and 17% respectively, compared to the prior year quarter
Net Income was $98 million, an 18% per share increase compared to the prior year quarter
Adjusted EBITDA was $251 million, a 12% increase compared to the prior year quarter
Free Cash Flow after dividends was $30 million
Antero Midstream Corp (NYSE:AM) announced its third quarter 2023 financial and operating results on October 25, 2023. The company reported increased gathering and compression volumes, net income, and adjusted EBITDA compared to the prior year quarter.
Financial Performance
Antero Midstream Corp (NYSE:AM) reported a net income of $98 million, or $0.20 per diluted share, marking an 18% per share increase compared to the prior year quarter. The company's adjusted net income was $111 million, or $0.23 per diluted share, a 15% per share increase compared to the prior year quarter. Adjusted EBITDA was $251 million, a 12% increase compared to the prior year quarter and 3% sequentially. Capital expenditures were $57 million. Free Cash Flow before dividends was $138 million and Free Cash Flow after dividends was $30 million. The company's leverage declined to 3.4x at September 30, 2023.
Company Commentary
Paul Rady, Chairman and CEO of Antero Midstream, commented on the company's performance.
During the third quarter, Antero Midstream delivered double-digit year-over-year throughput growth that set company records. The combination of well outperformance, acceleration of wells serviced by the fresh water delivery system, and operational success have resulted in year-to-date results that have exceeded expectations."
Brendan Krueger, CFO of Antero Midstream, also noted the company's financial discipline.
The third quarter marked the fifth consecutive quarter that Antero Midstream has generated Free Cash Flow after dividends. Our disciplined approach utilizing Free Cash Flow after dividends to reduce debt has resulted in over $100 million of absolute debt reduction year-to-date and leverage declining to 3.4x."
2023 Guidance Update
Antero Midstream Corp (NYSE:AM) also updated its full year 2023 guidance. The company is increasing its Adjusted EBITDA by $10 million at the midpoint to a range of $970 to $990 million. It is also increasing its Free Cash Flow after dividends by $5 million at the midpoint to a range of $135 to $155 million.
Operating Update
During the third quarter of 2023, Antero Midstream connected 20 wells to its gathering system. The company's water delivery systems serviced 15 well completions during the same period. Accrued capital expenditures were $57 million during the third quarter of 2023, with the company investing $42 million in gathering and compression and $15 million in water infrastructure primarily in the liquids-rich midstream corridor of the Marcellus Shale.
Conference Call
A conference call is scheduled on Thursday, October 26, 2023 at 10:00 am MT to discuss the financial and operational results. To participate in the call, dial in at 877-407-9126 (U.S.), or 201-493-6751 (International) and reference Antero Midstream. A telephone replay of the call will be available until Thursday, November 2, 2023 at 10:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13740754.
Explore the complete 8-K earnings release (here) from Antero Midstream Corp for further details.
This article first appeared on GuruFocus.
