AM - Earnings call transcript Q1 2024 | Antero Midstream Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Antero Midstream First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Justin Agnew, Vice President of Finance and Investor Relations.

Justin Agnew

Good morning. and thank you for joining us for Antero Midstream's first quarter investor conference call. minutes we'll the Q&A. open few highlights, and a then and it spend going financial through operating We'll up for would where direct our to that will separate also the during presentation I of today's reviewed homepage call. earnings you call website have we to www.anteromidstream.com, be provided a at like

GAAP press reconciliations contain disclosures regarding important also may measures. to call for most non-GAAP financial Please measures, release including financial refer Today's certain to the comparable our measures. earnings such

call the President and Midstream; Antero on Joining Director Paul and Midstream. Brendan CFO are of of me Chairman, CEO Kennedy, and today of Rady, CFO Antero Michael Antero Antero Resources Midstream; Antero of Resources and Krueger,

I'll call With turn over the Paul. that, to

Paul Rady

discuss efficiencies projects quarter, through results, cash then Justin. multiple the first our our in in flow our will quarter capital AR's Thanks, everyone. breakeven I morning, Good peer-leading operational completed go first business In company water and my Brendan free records. set costs. will which comments,

Let's the #X titled our Optimization. the of day The corridor units, the first will station of compressor outline Asset start has in in light capital with a acreage savings. approximately support end million an in XXX growth which was station blue Grays AR's the our quarter, placed compressor throughput liquids-rich Peak, initial relocated and that $XX part position. the utilize Grays compressor feet cubic station on Slide as Peak At in future resulted second the million in of capacity depicted we north the service map. Continued of

just-in-time with Resources. on online schedule placed and integrated was planning of Peak Antero and Grays philosophy budget. our This exemplifies investment ahead capital Importantly, slightly

can highlighted the the you in expansion will station box, ahead, of where occur. yellow see Looking Grays Peak future the

our capital. peer-leading This and allows as on of invested rates acreage Our to our capacity in time maximizes return development return drives dedicated us our needed. over phase the project future visibility into of

capital XXXX we highlighted efficiencies on our titled, freshwater the efficiencies, to side Efficiencies. had operational Completion the In addition #X business of Slide significant on

During freshwater of was Antero AR running last X.X on average. delivered during delivered the X amount similar barrels the XXX,XXX who on completion AR, The quarter, average. day crews of first was a running water Midstream time completion quarter, per crews AM to

So this XX% is improvement. a

on depicted averaged a page, side is per completion quarterly which a left-hand As company XX% and record the to of compared AR the day, increase XX.X XXXX. stages

integrated congestion trucks system This performance eliminates deliverability rates on is reduces for to industry-leading need This pad which provides AM's significantly sites. our water freshwater partially water system. due and delivery the

aspect into water time. design missed and is our In communication completions perspective, cess between of gathering the which integrated our addition, with an underappreciated nonproductive upstream almost outstanding have decade planning teams achievement. of we our incorporating efficient starts This ago, planning and business pad and with AM lines there's an freshwater system, AR water put the operations acquired midstream To a elimination and since is the consistent and had AM. X between delivery

price Hub over spread realizations X the into gas on Not the between of Gulf heart LNG widening the development the several of points outside Transport transportation AR highlighted Tier All AR's sales LNG starting natural This we a illustrates sales Equal. to see is new portfolio the is its facilities and expect the X With up at markets. to Henry Slide Adding several corridor. to points next years, near directly map premium firm stability titled Coast

per see of per that recent a sales $X Henry a to comprised box callout above range of research emphasizes that commodity blue MMBtu. Hub $X points while $X at XXX The outside quote highlights prices could sales within points this believe view. MMBtu, team miles from They

these Tier to to globe. Importantly, these delivers XX% LNG the supply transportation first-mile markets. providing as solidifies across X of direct position critical exposure premium-priced infrastructure AM's to markets, gas the this AR's firm

Slide finish on natural this price I'll that titled has out on an cash AR's flow comments We slide $X.XX breakevens. gas my AR highlighting unhedged was free #X breakeven the basis. previously put lowest

can result stability you AR In AR's see cash of pricing when averaged uplift per the natural million As price AM's quarter in unhedged approximately generated premium consistency. left-hand $XX the on NYMEX that free gas liquids and underpins of efficiency, capital in $X.XX side combination, development first gas XXXX realizations flow the page, MMBtu. of

midstream to certainly meets producers service the AR breakeven and provider, desire a we As costs, test. that with lowest overall

turn will the I that, to over Brendan. call With

Brendan Krueger

XXXX will #X on I my Paul. Thanks, Highlights. Slide comments Quarter begin titled First

The strategy delivered dividends, first and EBITDA Antero to after respectively, The growth $XX cash combined and increase a X% of company organic year. declining record-breaking processing free XXXX flow was both million which a EBITDA of operationally. We quarter, of year-over-year. in of volumes, with Midstream's compared double-digit flow million growing and double-digit capital gathering and quarter declines cash growth, free and in both were last records. in capital $XXX delivered X% dividends financially before resulted

of full quarter this X.Xx on absolute in guidance. The track to our declining and X.Xx debt quarter. free strong combination, us year-end year declining reduce EBITDA to first growth our results record during achieve All at leverage XXXX the place In from resulted utilized cash debt and to flow was XXXX.

fresh second first completion to we X its volumes the full of as the expect result reducing offset February, expected Looking lower a in quarter to modest guidance. throughput our consistent growth crews AR ahead water to by delivery with quarter, year compared

quarter Leverage AM's Executing cash leverage since dividends on leverage after and on comments fourth Slide flow free we Xx This Reduction our target XXXX on announced Plan. our I'll illustrates page finish titled release. and Debt my earnings #X

initial the first half flow As you dividends. transitioned outspend after consistent generate after of partnership free to can the see, in growth the XXXX, drilling fund we to cash

absolute has financed X $XXX totaled cumulative on debt quarter which This seventh flow first bolt-on quarter The a reduce represented almost internally accretive consecutive million the basis. cash generating and to used highly free dividends, of acquisitions. after been

In commodity through cycles. delivers business efficiently the as any summary, company continues industry in operate consistent our returns to as midstream and

achieve our We to Xx initial back XXXX, XXXX. X.X are positions our which return incremental laid end of shareholders. AM track of is on This target in out almost capital of half the target at years leverage ahead pursue to the of to

we take With questions. ready that, operator, are to

Operator

Instructions] UBS. Our [Operator with comes first Naomi Marfatia question from

Naomi Marfatia

for related Maybe increased to the start, data power on of if you AI theme could touch to centers. and demand

that and set opportunity the this any to on taken trend. curious commercialize AI has if you've steps AM on Just

Paul Rady

that but also Coast, our think is AR you portfolio So on the transport went our if know call, Gulf we how coming went in don't that. basin, through directing from center, the we'll data for our where through caught that's the but premium be firm is much Coast, I get we all the of competition to and to we're All good. Gulf gas. demand going

underpin focused. where And into that would AM's of this course, worth asset. decades of investments that's AM's AR allow So is visibility and development of

Naomi Marfatia

gears between should Since some announce there, to quarter start Maybe last we're buybacks AM allocation and about opportunities. priorities authorization M&A and leverage to the start of that to how buybacks buyback almost did the we timing hitting Xx think target. indicated ROE buybacks? post to switch and capital hitting --

Brendan Krueger

Brendan. Yes. is question. This Thanks for the

return we've calls on at as and well, overall look talked mean, capital. I past terms as on everything we about think of I in

program attractiveness year, look million us as acquisitions. target, -- be and will to down approach got Xx we the we out we'll leverage further as you today. still of this shares second in We've mentioned, as to half see $XXX buy for it or well debt bolt-on do shares or So back mentioned, execute pay this positioned the our we there,

sit we certainly that in hit So as of the that here we as half this buybacks today, make would lot continue Xx we target, a but sense, second as of share we'll year. evaluate to hopefully,

Operator

Sachs. next Our John with Goldman Mackay comes from question

John Mackay

bolt-on little in mouth, allocation of a capital bit, last Maybe has looking than a if sounded at but Or not last your maybe comment I you -- like into maybe front seeing it was clarification a we'll clearly buyback maybe you'd maybe on up pick there? line too kind Are put to little reading that just before just of stack I'm for guys guess kind I attractive? changed expected last curious decisions. comment much all? more had look the the that words more your there. for one that of just it does the little a opportunities

Brendan Krueger

to mean, to of make think extent here over Yes. capital. we No, giving at the capital opportunities, we've last make similar further I and bolt-on we high return those got we'll sense is I look sit but today. of buybacks continue past as share of lot it's same lot which do share come been the messaging we return continue across visibility look of type today, sense the opportunities you've of a opportunities quarters, To several at on where for into buybacks the as assets, a the to certainly

John Mackay

Okay. clear. just No, that's shifting absolutely gears. Maybe

the volumes X quarter was given gas could what the bit to the push deferred around you call, together there's guess, a third or the where there right for impact, us. that could but relatively for it's imagine that up of AM the if just maybe of mean for back Maybe a On in pad. pricing little I that I a just comment frame now. AR dry could year? tie us kind small is be right half

Michael Kennedy

It is This would Yes. come year. on this Mike. not

on impact AM volumes. no have would it So

John Mackay

Maybe on water the coming just then? side

Michael Kennedy

Just on side. water the

Operator

question comes next TPH Van & with Company. from Our Zach Everen

Zackery Van Everen

volume up from more Just higher growth forecast that to leaning of liquids-rich you the like that of area of it on bit. growth your more AR guys guidance? a revised the around their volume sounds little of confidence call, they slight Does the kind or just are kind provide a end follow-up guidance towards flat slight

Brendan Krueger

No.

solely of AR things. think by side I the liquid was really driven

just we on already. no there think, overall, solidifies change front, put the the So AM out I guidance

Zackery Van Everen

of have the you third-party does sense. your on would OpEx it is makes show And That in calls, capacity you. then to G&P know any under so, previous guys' mentioned pay in you full. just plenty fees? Do frac frac segment? the area Got direct JV up non-G&P I like guys And those there's fracs. in look if

Brendan Krueger

Yes, we're that so paying nothing front, don't there. we any have on fees note to

Operator

Our next Fargo. Wells question Ned comes from with Baramov

Ned Baramov

allocation, million XXXX $X the of approximately if senior I more caught capital I One may. repurchase on notes. your

debt back decision buy little bit whether assumes in So could your allocation and you the elaborate quarter this maybe capital year? the paydown further first debt on more to framework a

Brendan Krueger

did little I paid bit, some we issue Yes. a the No, to -- good January, our in did revolver. senior notes just remind question. mean we off

to look you we'll senior in buy us extent I saw we at it versus If then as pay sense outstanding, think to balance notes the capital look having of cash at repurchase the that to debt at you look notes approach return sheet, the again, on end just certainly our makes of like further that the But bonds down. do leverage Xx on quarter. the we'd target,

Ned Baramov

other seems additional relative And purchase? small to you on a a That gathering get makes and would material sense. spending, overall some of but it acquisition systems great in the it facilities still first completed number quarter, then not be guys that to details

Brendan Krueger

we purchase through much sizable relatively a flowing it just was Yes, it. actually but not volume -- did line,

a So gives of that we $X paid savings. capital to million for optionality further nice asset a lot

think I of save And we've over use. to some capital acquisitions, compressor the then the years us seen units. on been you've future through able reuse bolt-on

at is of this and up have road. savings future a much it be it. price, picked could think terms the very in capital It's I to flowing think through. We way helpful that an down doesn't we think attractive very that volume asset it about a good

the we'll low infrastructure So provide price. of very piece pick attractive down further that, on road to probably up details at a but

Operator

further at turn [Operator Instructions] closing no this to for Justin to back call questions comments. I'd There the Agnew are like over brief time.

Justin Agnew

with operator, to you Thank Please who thank call. everybody free out joined any follow-up feel you, today's questions. and to reach

Operator

concludes conference. today's This

disconnect may and we your at You your time, you lines this for participation. thank

Antero Midstream (AM) 25 Apr 242024 Q1 Earnings call transcript