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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.
Antero Midstream
Antero Midstream
Antero Midstream Revenue by Segment
Revenue by Segment
Gathering and Processing Revenue
CapyFin.comWater Handling Revenue
CapyFin.comAmortization of Customer Relationships Revenue
CapyFin.com 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.
- Free Cash Flow after dividends of a $(45) to $(5) million deficit for 2022, assuming an annualized dividend of $0.90 per share.
- Includes approximately $115 to $125 million of combined distributions from its interests in the processing and fractionation joint venture with MPLX, LP (the “Joint Venture”) and in Stonewall Gathering LLC.
- Capital investment includes $45 million in 2022 for the construction of two compressor stations with 240 MMcf/d of capacity each that will be phased in from 2022 through 2023.
- Capital budget includes approximately $50 million of remaining capital for a 20 mile high pressure trunkline from Wetzel County to the Sherwood and Smithburg processing complex.