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Dec 31, 2023
Antero Midstream Q4 2023 Earnings Report
Announced fourth quarter 2023 results, 2024 guidance, and a $500 million share repurchase program.
Key Takeaways
Antero Midstream reported strong Q4 2023 results with double-digit year-over-year throughput and Adjusted EBITDA growth. The company's capital investment strategy resulted in an 18% Return on Invested Capital in 2023. A new $500 million share repurchase program was authorized.
Low pressure gathering volumes increased by 10% year-over-year, averaging 3,377 MMcf/d.
Compression volumes increased by 14% year-over-year, averaging 3,343 MMcf/d.
Adjusted EBITDA increased by 10% year-over-year to $254 million, driven by throughput growth.
Free Cash Flow after dividends was $48 million, a 500% increase compared to the prior year quarter.
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 $405 to $445 million and Adjusted Net Income of $460 to $500 million. The Company is forecasting Adjusted EBITDA of $1,020 to $1,060 million. Antero Midstream is forecasting Free Cash Flow before dividends of $670 to $710 million and Free Cash Flow after dividends of $235 to $275 million for 2024, assuming an annualized dividend of $0.90 per share.
Positive Outlook
- Adjusted EBITDA is expected to grow by 5% compared to 2023 at the midpoint.
- Growth is driven by the expiration of the low pressure gathering fee rebate program.
- Inflation adjustments to Antero Midstream’s fixed fees.
- Flat-to-low single digit throughput growth in 2024 compared to 2023.
- Free Cash Flow after dividends to expand significantly.
Challenges Ahead
- Capital budget of $150 to $170 million, a 14% decrease compared to 2023 at the midpoint.
- Approximately $130 million of investment in gathering and compression infrastructure.
- $30 million for fresh water delivery and wastewater blending and pipeline infrastructure in 2024.
- Expects to invest approximately 60% to 65% of its full year capital budget in the second and third quarter.
- Substantially all of Antero Midstream’s 2024 capital budget is focused in the Marcellus Shale liquids-rich midstream corridor.
Revenue & Expenses
Visualization of income flow from segment revenue to net income