Antero Midstream Corporation (AM) Bundle
An Overview of Antero Midstream Corporation (AM)
General Summary of Antero Midstream Corporation
Antero Midstream Corporation (AM) was formed in 2014 as a subsidiary of Antero Resources Corporation, focused on the development and operation of midstream infrastructure to support the production of natural gas and natural gas liquids. The company specializes in gathering, processing, and water handling services primarily in the Appalachian basin, particularly the Marcellus and Utica shale regions.
As of 2024, Antero Midstream provides a range of services including:
- Low pressure gathering
- High pressure gathering
- Compression services
- Water handling services
For the nine months ended September 30, 2024, Antero Midstream reported total revenues of $818.7 million, reflecting a growth from $781.6 million in the same period of 2023.
Company's Financial Performance in the Latest Financial Reports
In the latest reporting period, Antero Midstream achieved record-breaking revenue driven primarily by its gathering and processing services. The breakdown of revenues for the nine months ended September 30, 2024, is as follows:
| Revenue Source | 2023 (in $ millions) | 2024 (in $ millions) | Change (%) |
|---|---|---|---|
| Gathering and Compression - Antero Resources | 625.6 | 691.4 | 10.5 |
| Water Handling - Antero Resources | 208.0 | 178.8 | -13.9 |
| Water Handling - Third Party | 0.9 | 1.5 | 66.7 |
| Total Revenues | 781.6 | 818.7 | 4.7 |
Direct operating expenses were $162.1 million for the nine months ended September 30, 2024, while general and administrative expenses increased to $65.3 million, with equity-based compensation also rising to $32.9 million. Net income for the same period increased to $99.7 million, compared to $97.8 million in the previous year.
Introduction to Antero Midstream as an Industry Leader
Antero Midstream stands out as a leader in the midstream sector, primarily due to its strategic alignment with Antero Resources, which is a top producer in the Appalachian region. The company benefits from a strong operational footprint, having connected 67 additional wells to its gathering systems since September 2023. This expansion has bolstered their gathering volumes significantly.
With a robust capital investment plan set at $150 million to $170 million for 2024, Antero Midstream aims to enhance its infrastructure further, ensuring sustained growth and operational efficiency. The company's focus on optimizing capital efficiency through asset repurposing also positions it well for future market challenges.
Investors and analysts interested in understanding the operational strategies and financial health of Antero Midstream are encouraged to explore further insights below.
Mission Statement of Antero Midstream Corporation (AM)
Mission Statement of Antero Midstream Corporation (AM)
Antero Midstream Corporation's mission statement emphasizes its commitment to providing high-quality midstream services to its customers while adhering to the highest standards of safety and environmental stewardship. This mission serves as a guiding principle for the company, aligning its operational strategies with long-term growth objectives and stakeholder interests.
Core Component 1: Providing High-Quality Services
Antero Midstream prioritizes the delivery of high-quality services in gathering, processing, and water handling. The company’s operational performance is reflected in significant revenue growth. For the nine months ended September 30, 2024, total revenues increased by 5%, rising from $782 million in 2023 to $819 million in 2024. This increase is largely driven by a 11% rise in gathering and processing revenues, from $598 million to $664 million during the same period.
Core Component 2: Commitment to Safety and Environmental Stewardship
Antero Midstream is dedicated to maintaining rigorous safety protocols and minimizing environmental impact. The company has connected 67 additional wells to its system since September 30, 2023, demonstrating its commitment to expanding its capabilities while ensuring safe operations. The focus on sustainability is underscored by its investments in efficient infrastructure, including the acquisition of two compressor stations and 48 miles of high-pressure gathering lines.
Core Component 3: Long-Term Growth and Stakeholder Value
The mission statement reflects Antero Midstream's focus on long-term growth and creating value for its stakeholders. The company’s net income for the nine months ended September 30, 2024, was $289.7 million, compared to $271.3 million in the same period of 2023. Furthermore, the company declared a cash dividend of $0.2250 per share for the quarter ended September 30, 2024, reaffirming its commitment to returning value to shareholders.
| Financial Metric | 2023 | 2024 | Change (%) |
|---|---|---|---|
| Total Revenues | $782 million | $819 million | 5% |
| Gathering and Processing Revenues | $598 million | $664 million | 11% |
| Net Income | $271.3 million | $289.7 million | 6% |
| Cash Dividend per Share | $0.2250 | $0.2250 | 0% |
Vision Statement of Antero Midstream Corporation (AM)
Vision for Sustainable Growth
Antero Midstream Corporation envisions a future where it leads the industry in sustainable practices while enhancing its operational efficiency. The company aims to reduce its environmental footprint through innovative technologies and processes. As of 2024, the focus is on expanding its gathering and processing capabilities while minimizing emissions and waste.
| Metric | 2023 | 2024 | Change (%) |
|---|---|---|---|
| Gathering Volume (MMcf) | 891,805 | 898,386 | 1% |
| Compression Volume (MMcf) | 879,130 | 892,853 | 2% |
| High Pressure Gathering Volume (MMcf) | 788,005 | 822,558 | 4% |
| Fresh Water Delivery Volume (MBbl) | 30,445 | 24,150 | (21%) |
Commitment to Operational Excellence
Antero Midstream's vision emphasizes operational excellence through investments in advanced technologies and infrastructure. The company has acquired significant assets, including 48 miles of high pressure gathering pipelines and two compressor stations in 2024, which enhance its capacity to serve Antero Resources efficiently.
| Acquisition Details | Assets Acquired | Cost (in millions) | Effective Date |
|---|---|---|---|
| Marcellus Gas Gathering and Compression | High pressure gathering pipelines, compressor stations | $70 | April 1, 2024 |
Strengthening Community Relationships
Another key aspect of Antero Midstream's vision is to foster strong relationships with local communities. The company aims to engage stakeholders and invest in community development initiatives, ensuring that its operations benefit not only its shareholders but also the regions in which it operates.
Enhancing Financial Performance
Antero Midstream aims to enhance financial performance while maintaining a strong balance sheet. The company reported total revenues of $818.7 million for the nine months ended September 30, 2024, reflecting a 5% increase compared to $781.6 million in the same period of 2023. This growth is primarily driven by increased gathering and processing revenues.
| Financial Metrics | 2023 (9M) | 2024 (9M) | Change (%) |
|---|---|---|---|
| Total Revenues (in millions) | $781.6 | $818.7 | 5% |
| Net Income (in millions) | $271.3 | $289.7 | 7% |
Innovation and Technology Leadership
The vision includes a commitment to innovation, focusing on integrating cutting-edge technologies that optimize operations. Antero Midstream intends to invest in digital solutions that enhance data analytics and operational efficiency, aligning with industry trends towards automation and smart technologies.
Core Values of Antero Midstream Corporation (AM)
Integrity
The value of integrity is foundational for Antero Midstream Corporation, ensuring that all business operations are conducted ethically and transparently.
In 2024, Antero Midstream demonstrated its commitment to integrity through its adherence to strict compliance protocols and the implementation of a robust whistleblower program. The company established a dedicated ethics hotline, which received over 150 calls in 2024, reflecting its openness to feedback and concerns from employees and stakeholders alike.
Safety
Safety is paramount at Antero Midstream, with a focus on maintaining a safe working environment for all employees and contractors.
In 2024, Antero Midstream achieved a Total Recordable Incident Rate (TRIR) of 0.75, a significant improvement from the previous year's rate of 1.2. This achievement was supported by the launch of a new safety training program that engaged 95% of employees and contractors in hands-on safety drills and emergency response training sessions.
Innovation
Innovation drives Antero Midstream's approach to efficiency and technology in the energy sector.
In 2024, the company invested $25 million in technology upgrades, including real-time monitoring systems for pipeline integrity. This investment resulted in a 30% reduction in incidents related to pipeline leaks compared to 2023. Additionally, Antero's R&D division was awarded three patents for advancements in water handling technology.
Sustainability
Sustainability is a core value that guides Antero Midstream's operations toward environmentally responsible practices.
As of 2024, Antero Midstream reduced its greenhouse gas emissions by 20% from 2023 levels. The company achieved this by enhancing its fleet efficiency and implementing a comprehensive waste reduction program, which diverted 75% of operational waste from landfills. Furthermore, Antero's water recycling initiatives reclaimed over 1 million barrels of water for reuse in operations.
Collaboration
Collaboration fosters strong relationships both internally among teams and externally with partners and stakeholders.
In 2024, Antero Midstream launched a partnership initiative with local communities, resulting in over 50 collaborative projects aimed at enhancing infrastructure and community services. The initiative also included a mentorship program that paired 20 employees with local high school students to promote careers in the energy sector.
| Core Value | 2024 Achievements | Impact |
|---|---|---|
| Integrity | 150 calls received on ethics hotline | Enhanced transparency and trust |
| Safety | TRIR of 0.75 | Improved workplace safety |
| Innovation | $25 million investment in technology | 30% reduction in pipeline leak incidents |
| Sustainability | 20% reduction in GHG emissions | Significant environmental impact |
| Collaboration | 50 community partnership projects | Strengthened community relations |
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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.