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Dec 31, 2021
Antero Midstream Q4 2021 Earnings Report
Announced fourth quarter 2021 financial results and 2022 capital budget and guidance.
Key Takeaways
Antero Midstream reported Q4 2021 revenues of $234 million and net income of $79 million, with adjusted EBITDA increasing by 5% year-over-year to $213 million. The company's capital expenditures increased significantly to $80 million, impacting free cash flow after dividends, which resulted in a $19 million deficit.
Low pressure gathering volumes averaged 2,961 MMcf/d, a 3% decrease compared to the prior year quarter.
Fresh water delivery volumes increased by 86% compared to the prior year quarter, averaging 80 MBbl/d.
Adjusted EBITDA increased 5% year-over-year to $213 million.
Capital expenditures increased 179% year-over-year to $80 million.
Revenue by Segment
Forward Guidance
Antero Midstream is forecasting Net Income of $330 to $370 million and Adjusted Net Income of $385 to $425 million. The Company is forecasting Adjusted EBITDA of $850 to $890 million and a capital budget of $275 to $300 million. The Company is forecasting Free Cash Flow after dividends of a $(45) to $(5) million deficit for 2022.
Positive Outlook
- EBITDA growth and declining capital budgets will aid transition to business model generating consistent and sustainable Free Cash Flow after dividends beginning in the second half of 2022.
- Company is well positioned to meet long-term leverage target of 3.0x over the next few years.
- Plan to expand existing Marcellus and Utica Shale gathering, compression and fresh water delivery systems.
- Over 95% of Antero Midstream’s 2022 capital budget is focused in the Marcellus Shale and the remaining capital is focused in the Utica Shale.
- Antero Midstream expects to fund its 2022 capital budget through net cash provided by operating activities.
Challenges Ahead
- Guidance includes four quarterly low pressure gathering rebates to Antero Resources totaling $48 million.
Historical Earnings Impact
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