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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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