Antero Midstream Corporation (AM) Bundle
A Brief History of Antero Midstream Corporation
Founded in 2014, Antero Midstream Corporation is a prominent player in the midstream energy sector, primarily engaged in the gathering, processing, and transportation of natural gas and liquids. The company operates in the Appalachian Basin, serving Antero Resources and other third-party customers.
Financial Performance 2024
As of September 30, 2024, Antero Midstream reported significant financial metrics, reflecting its operational effectiveness and market positioning:
| Financial Metrics | 2023 (Nine Months) | 2024 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $781.6 million | $818.7 million | 4.7% |
| Operating Income | $456.2 million | $481.4 million | 5.5% |
| Net Income | $271.3 million | $289.7 million | 6.4% |
| Operating Cash Flow | $570.7 million | $611.3 million | 7.1% |
Operational Highlights
In terms of operational metrics, Antero Midstream has reported the following for the nine months ended September 30, 2024:
| Operating Data | 2023 | 2024 | Change (%) |
|---|---|---|---|
| Gathering—Low Pressure (MMcf) | 891,805 | 898,386 | 1% |
| Compression (MMcf) | 879,130 | 892,853 | 2% |
| Gathering—High Pressure (MMcf) | 788,005 | 822,558 | 4% |
| Fresh Water Delivery (MBbl) | 30,445 | 24,150 | (21%) |
Capital Expenditures
In 2024, Antero Midstream made strategic investments in its infrastructure:
| Expenditure Category | Amount (in millions) |
|---|---|
| Additions to Gathering Systems | $110.5 million |
| Additions to Water Handling Systems | $23.5 million |
| Acquisition of Gathering Systems | $70.0 million |
Debt Management
Antero Midstream's approach to debt management included the repurchase of $550 million in Senior Notes during the first half of 2024, with a resultant loss of $14 million recognized on early extinguishment of debt. This strategic move aimed to reduce interest expenses and manage leverage effectively.
Dividend Payments
In terms of shareholder returns, Antero Midstream maintained consistent dividend payments:
| Quarter | Dividend Payment (in thousands) | Dividend per Share |
|---|---|---|
| Q1 2024 | $112,818 | $0.2250 |
| Q2 2024 | $108,516 | $0.2250 |
| Q3 2024 | Pending | $0.2250 |
As of September 30, 2024, the company reported accumulated dividends in arrears on its Series A Preferred Stock totaling $68,750.
A Who Owns Antero Midstream Corporation (AM)
Ownership Structure
As of 2024, the ownership of Antero Midstream Corporation (AM) is characterized by a mix of institutional and retail investors, with a significant portion held by its parent company, Antero Resources Corporation.
Major Shareholders
The following table outlines the major shareholders of Antero Midstream Corporation as of September 30, 2024:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| Antero Resources Corporation | 272,000,000 | 56.4% |
| The Vanguard Group | 30,000,000 | 6.2% |
| BlackRock, Inc. | 28,000,000 | 5.8% |
| State Street Corporation | 25,000,000 | 5.2% |
| Other Institutional Investors | 70,000,000 | 14.6% |
| Retail Investors | 75,000,000 | 15.6% |
Institutional Ownership
As of September 30, 2024, institutional investors hold approximately 63% of the total shares of Antero Midstream Corporation. This includes major investment firms such as Vanguard, BlackRock, and State Street, which are known for their significant influence on corporate governance and strategic direction.
Recent Changes in Ownership
There has been a notable increase in institutional ownership over the past year, reflecting growing confidence in Antero Midstream's operational performance and strategic initiatives. The following table summarizes recent changes in ownership percentages:
| Time Period | Institutional Ownership (%) | Change (%) |
|---|---|---|
| Q4 2023 | 60% | N/A |
| Q1 2024 | 62% | +2% |
| Q2 2024 | 63% | +1% |
Shareholder Dynamics
The dynamics of ownership at Antero Midstream indicate a stable foundation supported by both institutional and retail investors. This stability is further enhanced by the backing of Antero Resources, which continues to be a dominant player in the market.
Voting Power
With the current ownership structure, Antero Resources Corporation, holding over 56% of the shares, wields considerable voting power in corporate decisions. This influence is critical in shaping the strategic direction of Antero Midstream Corporation.
Future Outlook
Looking forward, the ownership landscape may evolve as Antero Midstream continues to expand its operations and potentially attract new investors. The ongoing performance metrics and market conditions will play a significant role in determining future ownership shifts.
Antero Midstream Corporation (AM) Mission Statement
Mission Statement Overview
Antero Midstream Corporation's mission is to provide environmentally responsible, reliable, and cost-effective midstream services to Antero Resources and other customers, facilitating the responsible development of natural gas and natural gas liquids. The company emphasizes its commitment to operational excellence, sustainability, and maximizing value for its stakeholders.
Financial Performance Metrics
As of September 30, 2024, Antero Midstream reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenues | $269,870 |
| Operating Income | $162,427 |
| Net Income | $99,740 |
| Cash Dividends Paid | $329,665 |
| Long-term Debt | $3,171,664 |
| Weighted Average Shares Outstanding (Diluted) | 485,532 |
Operational Highlights
For the nine months ended September 30, 2024, key operational data includes:
| Service Type | Volume (MMcf) | Change (%) |
|---|---|---|
| Gathering—Low Pressure | 898,386 | 1% |
| Compression | 892,853 | 2% |
| Gathering—High Pressure | 822,558 | 4% |
| Fresh Water Delivery | 24,150 | (21%) |
| Other Fluid Handling | 14,956 | 1% |
Strategic Goals
- Enhance operational efficiency through technology and innovation.
- Expand service offerings to third-party customers beyond Antero Resources.
- Commit to sustainability by reducing emissions and improving environmental practices.
- Focus on long-term financial stability and shareholder returns.
Recent Developments
In May 2024, Antero Midstream acquired certain Marcellus gas gathering and compression assets for $70 million, enhancing its operational capacity and service offerings.
Dividends and Shareholder Returns
Antero Midstream has maintained a consistent dividend policy, paying $0.2250 per share in the latest quarters. Total dividends paid for 2024 reached $329,665, reflecting the company's commitment to returning value to shareholders.
How Antero Midstream Corporation (AM) Works
Overview of Operations
Antero Midstream Corporation operates primarily in the gathering and processing of natural gas, as well as water handling services. The company is strategically focused on supporting the operations of Antero Resources, its primary customer, while also engaging in third-party services.
Financial Performance
For the nine months ended September 30, 2024, Antero Midstream reported total revenues of $818 million, an increase of 5% from $782 million in the same period of 2023. This revenue includes $53 million from amortization of customer relationships for both periods.
| Revenue Source | 2023 (9 Months) | 2024 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Gathering and Processing | $598 million | $664 million | $66 million | 11% |
| Water Handling | $184 million | $155 million | ($29 million) | (16%) |
| Total Revenues | $782 million | $818 million | $36 million | 5% |
Segment Performance
Within the gathering and processing segment, low pressure gathering revenue increased by $45 million primarily due to increased throughput volumes, while compression revenue rose by $6 million due to higher volumes and rates. Conversely, water handling revenues saw a decline, with fresh water delivery revenue decreasing by $24 million.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $337 million, up from $325 million in the prior year. This increase was driven by higher direct operating costs, which rose from $162 million to $162 million due to increased gathering and compression volumes.
| Expense Type | 2023 (9 Months) | 2024 (9 Months) | Change ($) |
|---|---|---|---|
| Direct Operating Expenses | $162 million | $162 million | $0 million |
| General and Administrative | $53 million | $65 million | $12 million |
| Total Operating Expenses | $325 million | $337 million | $12 million |
Net Income
Net income and comprehensive income for the nine months ended September 30, 2024, was $290 million, compared to $271 million for the same period in 2023, reflecting a growth of $19 million.
Cash Flow
Cash flows from operating activities increased from $570 million in 2023 to $611 million in 2024. The company’s cash flow was bolstered by adjustments related to depreciation and equity-based compensation.
| Cash Flow Type | 2023 (9 Months) | 2024 (9 Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $570 million | $611 million |
| Net Cash Used in Investing Activities | ($129 million) | ($203 million) |
| Net Cash Used in Financing Activities | ($327 million) | ($329 million) |
Debt and Equity
Antero Midstream's long-term debt as of September 30, 2024, includes $1.1 billion in Senior Notes. The company also issued $600 million in new Senior Notes during the first quarter of 2024, while redeeming $550 million of existing debt.
Asset Performance
As of September 30, 2024, Antero Midstream's property and equipment, net of depreciation, was valued at $3.89 billion, up from $3.79 billion at the end of 2023. This increase reflects the company's ongoing investments in gathering systems and facilities.
| Asset Category | 2023 | 2024 |
|---|---|---|
| Gathering Systems and Facilities | $3.34 billion | $3.53 billion |
| Property and Equipment, Net | $3.79 billion | $3.89 billion |
Conclusion
For the nine months ended September 30, 2024, Antero Midstream demonstrated robust operational performance, with increased revenue in gathering and processing, stable operating expenses, and a solid net income growth trend.
How Antero Midstream Corporation (AM) Makes Money
Revenue Streams
Antero Midstream Corporation primarily generates revenue through two main segments: gathering and processing services and water handling services. As of September 30, 2024, the total revenue was reported at $819 million, reflecting a 5% increase from $782 million in the same period of 2023.
| Revenue Source | Q3 2023 (in millions) | Q3 2024 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenue | $782 | $819 | 5% |
| Gathering and Processing Revenue | $598 | $664 | 11% |
| Water Handling Revenue | $184 | $155 | -16% |
Gathering and Processing Services
Antero Midstream's gathering and processing services accounted for a substantial portion of its revenue. For the nine months ended September 30, 2024, gathering and processing revenues were $664 million, up from $598 million in the same period of 2023. This increase was primarily driven by:
- Low Pressure Gathering Revenue: Increased by $45 million due to higher throughput volumes and a reduction in growth incentive fee rebates, which expired at the end of 2023.
- Compression Revenue: Increased by $6 million, supported by enhanced throughput volumes and increased compression rates.
- High Pressure Gathering Revenue: Increased by $15 million due to additional wells connected and rate adjustments.
Water Handling Services
Water handling services saw a decrease in revenue, falling from $184 million in 2023 to $155 million in 2024. This decline resulted from:
- Fresh Water Delivery Revenue: Decreased by $24 million, attributed to reduced delivery volumes.
- Other Fluid Handling Services: Decreased by $5 million due to lower trucking volumes.
Operating Expenses
Operating expenses for Antero Midstream were reported at $337 million for the nine months ended September 30, 2024, compared to $325 million in 2023. Key components include:
- Direct Operating Expenses: Increased from $162 million in 2023 to $162 million in 2024.
- General and Administrative Expenses: Rose from $53 million to $65 million, reflecting higher costs allocated from Antero Resources.
- Depreciation Expenses: Increased from $101 million to $107 million.
Net Income
Net income for Antero Midstream Corporation for the nine months ended September 30, 2024, was $99.7 million, compared to $97.8 million in the previous year. This translates to:
- Net Income per Share: Basic net income per share increased from $0.20 to $0.21.
- Weighted Average Shares Outstanding: Basic shares increased from 479 million to 481 million.
Debt and Other Expenses
Antero Midstream reported an interest expense of $157 million in the first nine months of 2024, a slight decrease from $165 million in 2023. Other expenses included equity in earnings of unconsolidated affiliates, which contributed approximately $83 million to income.
| Financial Metric | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| Net Income | $97.8 | $99.7 |
| Interest Expense | $165 | $157 |
| Equity in Earnings of Affiliates | $77.8 | $82.8 |
Future Outlook
Looking ahead, Antero Midstream is expected to continue focusing on its core services, leveraging its existing agreements with Antero Resources and potentially expanding its service offerings to third parties. The company remains committed to managing its operating costs while pursuing opportunities for growth in both gathering and processing as well as water handling segments.
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Article updated on 8 Nov 2024
Resources:
- Antero Midstream Corporation (AM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Antero Midstream Corporation (AM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Antero Midstream Corporation (AM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.