AM - Earnings call transcript Q3 2024 | Antero Midstream Corporation

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

Operator

Greetings, and welcome to Antero Midstream Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr.

Justin Agnew, Vice President of Finance and Investor Relations. Thank you, Mr. Agnew, you may begin.

Justin Agnew

you Conference us Call. thank Third Antero and Investor Quarter morning, for for joining Midstream's Good it We'll the highlights, open financial a and for spend few operating and minutes then going through up Q&A. we'll

website release presentation financial to may like press also call. Today's our important provided to of we also would measures. be regarding to such at earnings reviewed earnings direct measures. where call I www.anteromidstream.com, separate call non-GAAP Please will disclosures the refer contain you including most for homepage certain our that to reconciliations a comparable today's have during financial GAAP measures, the

Michael Joining the Resources and CFO of on Antero Chairman, Resources Paul. of Antero Paul Rady, Director and turn I'll Midstream. With to CEO and and Midstream; over Brendan me of the Kennedy, today of CFO call Antero call Antero President Krueger, that, are Midstream; Antero

Paul Rady

AR's AM's quarter breakevens will budget Brendan Thanks, fourth as my comments, LPG third international walk Justin, I will outlook. as quarter free and morning, In pricing. then and through XXXX capital everyone. by strong peer-leading our discuss results cash good well supported flow

XXXX side titled the me The on Program. on page our left-hand of compared expenditures Let XXXX to start illustrates Capital Executing Efficiently $XXX million. to #X Slide our budget capital million of $XXX

third of laid in summer in as construction majority be we capital the our supportive second quarters a out are we expected to and As in initial year, guidance this weather had earlier Appalachia. of invested conditions the

within capital quarter this budget. resulted decline during our quarter year later annual accelerated in expect XX% guidance a in more the This we weather budget year to Because and fourth scheduled full of favorable in for we range. end result significant capital During quarter, year. invested acceleration, the or some the million $XX expect as the capital the third third of of a conditions, the also initially in

page pictures depict compressor on of the our #X, right-hand the Peak station. side Page at the Looking Torreys

continue have in this online the progress make station our and day construction heart expected is quarter in to million the to midstream placed XXX feet to liquids-rich This second corridor. good located the a of XXXX, We of be expected capacity. is on of cubic is station, which of

of let's Slide titled Free Cash has $X.XX high Hook, and The exported unconstrained Premium Marcus able be the premium transported Now international at dock the Support competitive that with the range AR to international gallon This Pennsylvania. to International premiums AR This as move East for the side Mariner to to propane selling on receives is these page the its capture constraints combined propane access result strong at export on demand, #X, by along markets of Hook. and the of on distinct a AR per premium Gulf have Flow. Marcus Coast. into left-hand the depicts advantage a exports out expanded pipeline to

resulted have XXXX. until AR's that is Importantly, these peer-leading along exposure into These flow we premiums persist Coast free capacity premiums breakevens Gulf the unhedged cash liquids capital in and XXXX additional placed in significant expect export to online. efficiencies

development even I Krueger. Brendan to call over natural you today's will right-hand gas gas, the free unhedged This gas $X.XX approximately per page, and that, well maintenance As stability can flow the breakevens AR cash Mcf in depressed level turn see capital side continue AM. With allows natural of below in providing on the are for operating AR's earnings a environment, to of other peers.

Brendan Krueger

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

pad cash completion year-over-year. second Throughput crew of a flat sequentially volumes operating DUC freshwater During a AR as compared out third million, resulted the gas result quarter, due debt of was last to $XXX the the approximately was a natural All to declined million, a of X.Xx XX% increase quarter free delivery $XX we of dividends in from generated during leverage which EBITDA and one XX. which as year. September absolute increase was to cash quarter the of volumes and and were deferring X% reduce after flow flow prices. Free was depressed quarter utilized

to additional reduction the reiterating to during the the ahead leverage the Looking result fourth in is declining a and expected quarter. cash below occurred and a earlier fourth comments, in result expect increasing as quarter free we third absolute Paul's that decline debt This capital flow, of Xx quarter. significant in acceleration

the cash acquisitions. Cash illustrates quarter let's Next, we Flow after Free XXXX quarterly of free move of since titled Consistent This cumulative first bolt-on dividends when third #X acquired Generation. flow on slide our and the Slide to the

accretive see, these assets. can you This integration single nature after over cash of the highlighting dividends quarter, the $XXX totaled every years. period, the free $XXX we has of which in successful over the flow X have is same acquisitions above million and As over million generated well bolt-on last

slide ability finish on flow this free Outlook. Flow finance our our Importantly, on internally #X growth. I'll Slide EBITDA also acquisitions organic and Cash to comments our program and drive capital illustrates both my cash Free that Delivering titled

This and our past programs, we fund liquids-rich investments generate return in ability are organic to teens absolute on capital and significant the internally now decade, finance largest out capital realizing the reduce system flow. payments debt. benefits cash have the our Over integrated results built high investments. free our dividend midstream Appalachia's and invested of These capital

leverage debt and Xx absolute reduction of to the result in to a expect EBITDA decline fourth quarter. than less we growth, As

year-end Xx leverage our a by XXXX. achieve reminder, As initial to expectation was our target

year So ahead we one of target. our schedule on are

any leverage free Antero all financed will to discussed, we did several acquisitions. initial was able which execute just include note accretive transactions, our were as that not cash XXX% Midstream of flow. target Additionally, I through

questions. XXXX, positions to take free to As and return well This we in flow. expect operator, are we growth shareholders. With further to ahead incremental we to ready look cash us EBITDA capital that,

Operator

first comes Jeremy with Co. The from of Tonet line Chase the Instructions] & question [Operator JPMorgan

Noah Katz

Katz on Noah This Jeremy. for is

the 'XX deferral the touch wanted results into AM's the of the of on from into and latter pad the the you AR to year. impact 'XX? second of then 'XX to deferral 'XX on announcing of size completion towards impact and the from 'XX from part the the I early one pad end First, Can into

Brendan Krueger

question. Great Yes.

the If it, of that anyways. the you guidance you To impact, and range. defers year the lower impact until prices, would the XXXX next fall look to just at at given that the in million if you look of range to fall given, extent we've range. see about near water that, completed you $XX middle we've you extent the higher range AR a overall, It's of see AR can the the EBITDA you'd end gathering wouldn't due

million. get And volumes no So the year of the gathering XXXX you'll the change expectations. where be and would about would impact bit, in on water shaking out, that's fall water a then within terms still $XX really push this back

Noah Katz

going XX with it so And of XQ, has wells the far looks serviced AM this question, then off being year. serviced that like X wells in

in more crew service the think wells XX water If hit XQ. to guys' service expectations how could So many X another to guide on was your I there in of what total? wells you between are potentially added, completion to you'd XX to XX, have

Brendan Krueger

Yes.

mentioned the out, it hot X think of that that, X got pad, I of midpoint deferred you assume completion to XX wells. I again, if So there, the would

X to slightly you'd below XX. So be that

your the crew water ramp-up that of We barrels think in question. delivered. XX,XXX I how this in about much water, terms that's to little e-fleet easy to one overall, crew day a this to terms So an per of quarter. XX,XXX completion e-fleet. completion less in bit terms had driven a just a made by But move We an think quarter, the about of answers of answer provides it's

XX,XXX. just crew, bit generally, you less time little led XX,XXX. to ramp-up So the XX,XXX to XX,XXX it's than one the if have a But to

in you'd you a were be if operating or a example, X above quarter, XXX,XXX that. for crews, bit little So

Operator

comes question with Marfatia line Naomi the Next from UBS. of

Naomi Marfatia

the activity, a a to the some Just dropping and completion one ahead in 'XX, of with in look the of follow-up to questions, as maybe rig earlier crew along AR given a 'XX. of deferrals to

growth growth, there expecting Just still kind kind you wondering drivers some is of to we if a into potential upside mid-single-digit Should be of of going the it? of like or could characterize 'XX.

Brendan Krueger

think assumption. fair No, a that's I

gathering low growth. the the mid-single-digit side, we to expect in On

have water side, completely bit You volumes the we end bit 'XX But expect a will 'XX generally, it consistent on relative of then out you'd little in of gets on more those depend little deferred CPI then to And fees. should about just the into volumes where those pad on on deferrals. a year-over-year. If 'XX. 'XX, assume escalation up

Naomi Marfatia

Great.

I think, on a follow-up, Veolia had a update. XX-Q as payment, Just your small the

proceeds? of is potential the are what thinking wondering the just signposts how use about management and So

Brendan Krueger

terms the but great a a hands, of through need in appeals, no to don't definitive we It's when have court terms Yes, went don't still there. answer timing answer they definitive in in time have the respond. and they of

in game and we're in where that debt, To here the that after So at in, we're timing of on bit a But of a analyze the terms there. time. makes today the of as most sense would extent target we what certainly that decision we at still leverage terms just little update. came great where make waiting no at sit a

Operator

the of from line John Mackay Goldman comes question with Next Sachs.

John Mackay

couple way mean much flow buybacks just Xx a that to fourth couple looking about I in a because confidence versus below And this pointing I quarter. quarter? EBITDA pick of driven we've could and start how kind on up free of implied down of that moving pieces. that just coming CapEx to is want talked of to cash of see step-up your should by better in these guess, this the we the kind getting

Brendan Krueger

Yes.

once we buyback in market. the said terms the target, we've of think to I Xx look -- we'll hit

of coming of really points, in in confident do It's think then in bit quarter. And hit EBITDA, terms confidence a a see the very that we lot combination down. of the the capital Xx have I of should growth. a fourth we'll target your

in had e-fleet. mentioned, the some on time I we As quarter that third ramp-up

one you or so barrels relative of you quarter. even to ran if So day just see XX,XXX fleet, should growth third a

benefit. target fourth overall feel about we the slid cash then feel quarter increase a pretty that, Xx fourth in without pricing, good further And pad we if see quarter. good even But that because you'd into the flow. in So hitting about even that of

John Mackay

the do quarter, some we're 'XX think fourth about forward? and say, budget CapEx maybe we going moving if look pieces. like mean, let's looking like in, But for like at take guess rate of And I talked the implied about again, run what I you've that a CapEx could how

Brendan Krueger

range I In range that of Yes. is million $XXX historically $XXX fair in $XXX be think for budgeting we'd a million, as still the midpoint that today, think, a the to is probably the that in assuming that a million We're $XXX to assuming but bet here middle probably is 'XX, in 'XX. sit said in I fair process, we've assumption somewhere safe million we assumption.

Operator

the Ladies and Agnew I like the Instructions] of to gentlemen, we for have closing reached end would floor comments. question-and-answer now [Operator over Justin to turn session.

Justin Agnew

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

Operator

Thank today's teleconference. you. This concludes

disconnect at You Thank your this lines participation. may time. you your for

Antero Midstream (AM) 31 Oct 242024 Q3 Earnings call transcript