DENVER, April 27,
2022 /PRNewswire/ -- Antero Midstream Corporation
(NYSE: AM) ("Antero Midstream" or the "Company") today
announced its first quarter 2022 financial and operational results.
The relevant unaudited condensed consolidated financial
statements are included in Antero Midstream's Quarterly Report on
Form 10-Q for the quarter ended March 31,
2022.
First Quarter 2022 Earnings Highlights:
- Net Income was $80 million, or
$0.17 per share, in line with the
prior year quarter
- Adjusted Net Income was $93
million, or $0.19 per share,
compared to $101 million, or
$0.21 per share in the prior year
quarter (non-GAAP measure)
- Adjusted EBITDA was $209
million (non-GAAP measure)
- Capital expenditures were $95
million
- Net cash provided by operating activities was $185 million
- Free Cash Flow before dividends was $70 million (non-GAAP measure)
- Total debt and Net Debt at quarter end were $3.1 billion and Net Debt to last twelve months
Adjusted EBITDA was 3.6x (non-GAAP measure)
- Low pressure gathering volumes increased by 3% compared to
the prior year quarter
Paul Rady, Chairman and CEO said,
"Antero Midstream executed its organic growth plan during the
quarter, resulting in year-over-year volume growth in gathering and
processing. Looking ahead, we are well positioned as the
critical first mile infrastructure linking low-cost natural gas
supply to increasing global LNG demand. Our continued focus
on organic investments in critical infrastructure provides a highly
visible, de-risked growth outlook."
Mr. Rady added, "Importantly, Antero Midstream has taken
significant steps to minimize the impacts of inflation on the
budget and guidance. This includes inflation-protected fees with
high EBITDA margins, pre-buying steel for pipelines and securing
firm bids for major projects. These efforts result in an unchanged
2022 capital budget of $275 to
$300 million. Antero Midstream's
short lead-time capital investments, combined with visibility into
the Antero Resources development plan, allow us to generate
attractive, de-risked return on invested capital."
For a discussion of the non-GAAP financial measures,
including Adjusted EBITDA, Adjusted Net Income, Free Cash Flow
before dividends, and Net Debt, please see "Non-GAAP
Financial Measures."
First Quarter 2022 Financial Results
Low pressure gathering volumes for the first quarter of 2022
averaged 2,930 MMcf/d, a 3% increase as compared to the prior year
quarter. Low pressure gathering volumes were in excess of the
growth incentive fee threshold of 2,900 MMcf/d, resulting in a
$12 million rebate to Antero
Resources. Compression volumes for the first quarter of 2022
averaged 2,816 MMcf/d, a 4% increase compared to the prior year
quarter. High pressure gathering volumes averaged
2,878 MMcf/d, a 2% increase compared to the first quarter of
2021. Fresh water delivery volumes averaged 87 MBbl/d during
the quarter, a 16% decrease compared to the first quarter of
2021.
Gross processing volumes from the processing and fractionation
joint venture (the "Joint Venture") averaged 1,514 MMcf/d for the
first quarter of 2022, a 6% increase compared to the prior year
quarter. Joint Venture processing capacity was 95% utilized
during the quarter based on nameplate processing capacity of
1.6 Bcf/d. Gross Joint Venture fractionation volumes
averaged 34 MBbl/d, an 11% decrease compared to the prior year
quarter. The decrease in fractionation volumes was attributable to
lower third party production volumes in the basin. Joint Venture
fractionation capacity was 85% utilized during the quarter based on
nameplate fractionation capacity of 40 MBbl/d.
|
|
Three Months
Ended
March
31,
|
|
|
|
|
Average Daily
Volumes:
|
|
2021
|
|
2022
|
|
%
Change
|
|
|
Low
Pressure Gathering (MMcf/d)
|
|
2,853
|
|
2,930
|
|
3%
|
|
|
Compression (MMcf/d)
|
|
2,706
|
|
2,816
|
|
4%
|
|
|
High Pressure Gathering (MMcf/d)
|
|
2,812
|
|
2,878
|
|
2%
|
|
|
Fresh Water Delivery (MBbl/d)
|
|
104
|
|
87
|
|
(16)%
|
|
|
Gross Joint Venture Processing (MMcf/d)
|
|
1,428
|
|
1,514
|
|
6%
|
|
|
Gross Joint Venture Fractionation (MBbl/d)
|
|
38
|
|
34
|
|
(11)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31,
2022, revenues were $218
million comprised of $173
million from the Gathering and Processing segment and
$45 million from the Water Handling segment, net of
$18 million of amortization of customer relationships.
Water Handling revenues include $22
million from wastewater handling and high rate water
transfer services.
Direct operating expenses for the Gathering and Processing and
Water Handling segments were $17
million and $25 million, respectively, for a total of
$42 million, compared to $39 million in total direct
operating expenses in the prior year quarter. The increase in
direct operating expenses was driven by resuming fresh water
deliveries in the Utica for Antero Resources' development program
during the first quarter of 2022. Water Handling operating expenses
include $19 million from wastewater
handling and high rate water transfer services. General and
administrative expenses excluding equity-based compensation were
$15 million during the first quarter
of 2022. Total operating expenses during the first quarter of
2022 included $3 million of equity-based compensation expense
and $28 million of depreciation.
Net Income was $80 million, or $0.17 per share. Net Income adjusted for
amortization of customer relationships, impairment expense, loss
(gain) on asset sale, net of tax effects of reconciling items, or
Adjusted Net Income, was $93 million. Adjusted Net Income per
share was $0.19 per share, a 10%
decrease compared to the prior year quarter.
The following table reconciles Net Income to Adjusted Net Income
(in thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2021
|
|
|
2022
|
|
Net
Income
|
|
$
|
83,441
|
|
|
80,040
|
|
Amortization of customer relationships
|
|
|
17,668
|
|
|
17,668
|
|
Impairment expense
|
|
|
1,379
|
|
|
—
|
|
Loss (gain) on asset sale
|
|
|
3,763
|
|
|
(118)
|
|
Tax
effect of reconciling items(1)
|
|
|
(5,680)
|
|
|
(4,521)
|
|
Adjusted Net
Income
|
|
$
|
100,571
|
|
|
93,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Statutory tax rate
was approximately 24.9% for 2021 and 25.8% for 2022.
|
Adjusted EBITDA was $209 million. Interest expense was
$44 million, a 3% increase compared
to the prior year quarter. Capital expenditures were
$95 million, a 216% increase compared to the prior year
quarter as Antero Midstream continued construction on growth
projects supporting the Antero Resources' and QL Capital Partners'
drilling partnership. Free Cash Flow before dividends was
$70 million, a 52% decrease compared
to the prior year quarter driven primarily by higher growth capital
expenditures during the quarter. Free Cash Flow after dividends was
a $38 million deficit compared to $39
million in the prior year quarter.
The following table reconciles Net Income to Adjusted EBITDA and
Free Cash Flow before and after dividends (in thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2021
|
|
|
2022
|
|
Net
Income
|
|
$
|
83,441
|
|
|
80,040
|
|
Interest expense, net
|
|
|
42,866
|
|
|
44,279
|
|
Income tax expense
|
|
|
28,024
|
|
|
28,067
|
|
Amortization of customer relationships
|
|
|
17,668
|
|
|
17,668
|
|
Depreciation expense
|
|
|
26,850
|
|
|
28,300
|
|
Impairment expense
|
|
|
1,379
|
|
|
—
|
|
Loss (gain) on asset sale
|
|
|
3,763
|
|
|
(118)
|
|
Accretion of asset retirement obligations
|
|
|
119
|
|
|
64
|
|
Equity-based compensation
|
|
|
4,012
|
|
|
2,832
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
(20,744)
|
|
|
(23,232)
|
|
Distributions from unconsolidated affiliates
|
|
|
31,910
|
|
|
31,130
|
|
Adjusted
EBITDA
|
|
$
|
219,288
|
|
|
209,030
|
|
Interest expense
|
|
|
(42,866)
|
|
|
(44,279)
|
|
Total capital expenditures (accrual-based)
|
|
|
(29,926)
|
|
|
(94,655)
|
|
Free Cash Flow
before dividends
|
|
$
|
146,496
|
|
|
70,096
|
|
Dividends declared (accrual-based)
|
|
|
(107,406)
|
|
|
(107,648)
|
|
Free Cash Flow after
dividends
|
|
$
|
39,090
|
|
|
(37,552)
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles net cash provided by operating
activities to Free Cash Flow before and after dividends (in
thousands):
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2021
|
|
|
2022
|
|
Net cash provided by
operating activities
|
|
$
|
165,701
|
|
|
184,664
|
|
Amortization of deferred financing costs
|
|
|
(1,388)
|
|
|
(1,410)
|
|
Settlement of asset retirement obligations
|
|
|
408
|
|
|
455
|
|
Changes in working capital
|
|
|
11,701
|
|
|
(18,958)
|
|
Total capital expenditures (accrual-based)
|
|
|
(29,926)
|
|
|
(94,655)
|
|
Free Cash Flow
before dividends
|
|
$
|
146,496
|
|
|
70,096
|
|
Dividends declared (accrual-based)
|
|
|
(107,406)
|
|
|
(107,648)
|
|
Free Cash Flow after
dividends
|
|
$
|
39,090
|
|
|
(37,552)
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2022 Operating Update
Gathering and Processing — During the first
quarter of 2022, Antero Midstream connected 17 wells to its
gathering system. The Company continued construction on the Castle
Peak compressor station in the liquids-rich Marcellus shale, which
is expected to be placed in service late the second quarter of
2022. The Castle Peak station will have an initial capacity of 160
MMcf/d and will be expanded to 240 MMcf/d in 2023. In addition,
Antero Midstream continued construction on the Wetzel County high
pressure pipeline that will be placed online in the fourth quarter
of 2022. These additional infrastructure projects will support the
expected throughput growth in the second half of 2022.
Water Handling— Antero Midstream's water
delivery systems serviced 21 well completions during the first
quarter of 2022. The 21 wells serviced during the first quarter
included completion operations on a 7 well pad late during the
quarter that will result in a portion of those volumes included in
the second quarter of 2022.
Capital Investments
Total accrued capital expenditures were $95 million during the first quarter of 2022. Of
the $95 million invested in
gathering, compression, and water infrastructure, $78 million
was in gathering and compression assets and $17 million was in water handling assets.
There were no investments in the Joint Venture during the
quarter.
Brendan Krueger, CFO of Antero
Midstream, said "As a result of the upfront investment in growth
capital expenditures occurring in the first half of 2022, we are
quickly approaching an inflection point for Antero Midstream in the
second half of 2022. Capital expenditures will decline,
volumes will continue to increase and we expect to transition to
generating Free Cash Flow after dividends for the foreseeable
future. This will allow us to reduce absolute debt and leverage
towards our target of 3.0x or less."
Conference Call
A conference call for Antero Midstream is scheduled on
Thursday, April 28, 2022 at
10:00 am MT to discuss the financial
and operational results. A brief Q&A session for security
analysts will immediately follow the discussion of the results for
the quarter. To participate in the call, dial in at
877-407-9126 (U.S.), or 201-493-6751 (International) and reference
"Antero Midstream". A telephone replay of the call will be
available until Thursday, May 5, 2022
at 10:00 am MT at 877-660-6853 (U.S.)
or 201-612-7415 (International) using the conference ID: 13726234.
To access the live webcast and view the related earnings conference
call presentation, visit Antero Midstream's website at
www.anteromidstream.com. The webcast will be archived for
replay until Thursday, May 5, 2022 at
10:00 am MT.
Non-GAAP Financial Measures and Definitions
Antero Midstream uses certain non-GAAP financial measures.
Antero Midstream defines Adjusted Net Income as Net Income plus
amortization of customer relationships and impairment expense,
excluding gain and loss on asset sale and loss on early
extinguishment of debt, net of tax effect of reconciling items.
Antero Midstream uses Adjusted Net Income to assess the operating
performance of its assets. Antero Midstream defines Adjusted EBITDA
as Net Income plus interest expense, income tax expense,
amortization of customer relationships, depreciation expense,
impairment expense, loss (gain) on asset sale, accretion of asset
retirement obligations, and equity-based compensation expense, and
loss on early extinguishment of debt, excluding equity in earnings
of unconsolidated affiliates, plus distributions from
unconsolidated affiliates.
Antero Midstream uses Adjusted EBITDA to assess:
- the financial performance of Antero Midstream's assets, without
regard to financing methods, capital structure or historical cost
basis;
- its operating performance and return on capital as compared to
other publicly traded companies in the midstream energy sector,
without regard to financing or capital structure; and
- the viability of acquisitions and other capital expenditure
projects.
Antero Midstream defines Free Cash Flow before dividends as
Adjusted EBITDA less interest expense and accrual-based capital
expenditures. Free Cash Flow after dividends is defined as Free
Cash Flow before dividends less accrual-based dividends declared
for the quarter. Antero Midstream uses Free Cash Flow before and
after dividends as a performance metric to compare the cash
generating performance of Antero Midstream from period to
period.
Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow before
and after dividends are non-GAAP financial measures. The GAAP
measure most directly comparable to these measures is Net Income.
Such non-GAAP financial measures should not be considered as
alternatives to the GAAP measures of Net Income and cash flows
provided by (used in) operating activities. The presentations
of such measures are not made in accordance with GAAP and have
important limitations as analytical tools because they include
some, but not all, items that affect Net Income and cash flows
provided by (used in) operating activities. You should not
consider any or all such measures in isolation or as a substitute
for analyses of results as reported under GAAP. Antero
Midstream's definitions of such measures may not be comparable to
similarly titled measures of other companies.
Antero Midstream defines Net Debt as consolidated total debt,
excluding unamortized debt premiums and debt issuance costs, less
cash and cash equivalents. Antero Midstream views Net Debt as an
important indicator in evaluating Antero Midstream's financial
leverage. The GAAP measure most directly comparable to Net Debt is
total debt, excluding unamortized debt premiums and debt issuance
costs.
The following table reconciles cash paid for capital
expenditures and accrued capital expenditures during the period (in
thousands):
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2021
|
|
|
2022
|
|
Capital expenditures
(as reported on a cash basis)
|
|
$
|
(29,146)
|
|
|
(84,267)
|
|
Change in accrued capital costs
|
|
|
(780)
|
|
|
(10,388)
|
|
Capital expenditures
(accrual basis)
|
|
$
|
(29,926)
|
|
|
(94,655)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles consolidated total debt to
consolidated net debt, excluding debt premiums and issuance costs,
("Net Debt") as used in this release (in thousands):
|
|
|
|
|
|
|
|
|
|
|
March
31,
2022
|
|
|
|
Bank credit
facility
|
|
$
|
556,600
|
|
|
|
7.875% senior notes due 2026
|
|
|
550,000
|
|
|
|
5.75% senior notes due 2027
|
|
|
650,000
|
|
|
|
5.75% senior notes due 2028
|
|
|
650,000
|
|
|
|
5.375% senior notes due 2029
|
|
|
750,000
|
|
|
|
Consolidated total
debt
|
|
|
3,156,600
|
|
|
|
Cash and cash equivalents
|
|
|
—
|
|
|
|
Consolidated net
debt
|
|
$
|
3,156,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Net Income to Adjusted EBITDA for
the last twelve months as used in this release (in thousands):
|
|
|
|
|
|
|
|
|
|
|
12 months
ended
March 31,
2022
|
|
|
Net
Income
|
|
$
|
328,216
|
|
Interest expense
|
|
|
176,694
|
|
Income tax expense
|
|
|
117,166
|
|
Amortization of customer relationships
|
|
|
70,672
|
|
Depreciation expense
|
|
|
110,240
|
|
Impairment expense
|
|
|
3,663
|
|
Accretion of asset retirement obligations
|
|
|
405
|
|
Equity-based compensation
|
|
|
12,349
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
(92,939)
|
|
Distributions from unconsolidated affiliates
|
|
|
118,210
|
|
Gain on asset sale
|
|
|
(253)
|
|
Loss on early extinguishment of debt
|
|
|
21,757
|
|
Adjusted
EBITDA
|
|
$
|
866,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Antero Midstream Corporation is a Delaware corporation that owns, operates and
develops midstream gathering, compression, processing and
fractionation assets located in the Appalachian Basin, as well as
integrated water assets that primarily service Antero Resources
Corporation's properties.
This release includes "forward-looking statements." Such
forward-looking statements are subject to a number of risks and
uncertainties, many of which are not under Antero Midstream's
control. All statements, except for statements of historical fact,
made in this release regarding activities, events or developments
Antero Midstream expects, believes or anticipates will or may occur
in the future, such as statements regarding Antero Midstream's
ability to execute its business plan and return capital to its
stockholders, information regarding Antero Midstream's return of
capital policy, information regarding long-term financial and
operating outlooks for Antero Midstream and Antero Resources,
information regarding Antero Resources' expected future growth and
its ability to meet its drilling and development plan and
the participation level of Antero Resources' drilling partner and
the impact on demand for Antero Midstream's services as a result of
incremental production by Antero Resources, are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. All
forward-looking statements speak only as of the date of this
release. Although Antero Midstream believes that the plans,
intentions and expectations reflected in or suggested by the
forward-looking statements are reasonable, there is no assurance
that these plans, intentions or expectations will be achieved.
Therefore, actual outcomes and results could materially differ from
what is expressed, implied or forecast in such statements. Except
as required by law, Antero Midstream expressly disclaims any
obligation to and does not intend to publicly update or revise any
forward-looking statements.
Antero Midstream cautions you that these forward-looking
statements are subject to all of the risks and uncertainties
incident to our business, most of which are difficult to predict
and many of which are beyond Antero Midstream's control. These
risks include, but are not limited to, commodity price volatility,
inflation, environmental risks, Antero Resources' drilling and
completion and other operating risks, regulatory changes, the
uncertainty inherent in projecting Antero Resources' future rates
of production, cash flows and access to capital, the timing of
development expenditures, impacts of geopolitical events and world
health events, including the COVID-19 pandemic, cybersecurity risk,
our ability to achieve our greenhouse gas reduction targets and the
costs associated therewith, the state of markets for and
availability of verified quality carbon offsets and the other risks
described under the heading "Item 1A. Risk Factors" in Antero
Midstream's Annual Report on Form 10-K for the year ended
December 31, 2021.
ANTERO MIDSTREAM
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December 31,
|
|
March 31,
|
|
|
|
2021
|
|
2022
|
|
Assets
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts receivable–Antero Resources
|
|
$
|
81,197
|
|
|
78,143
|
|
Accounts receivable–third party
|
|
|
747
|
|
|
328
|
|
Income tax receivable
|
|
|
940
|
|
|
940
|
|
Other current assets
|
|
|
920
|
|
|
879
|
|
Total current assets
|
|
|
83,804
|
|
|
80,290
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
3,394,746
|
|
|
3,461,098
|
|
Investments in
unconsolidated affiliates
|
|
|
696,009
|
|
|
688,111
|
|
Customer
relationships
|
|
|
1,356,775
|
|
|
1,339,107
|
|
Other assets,
net
|
|
|
12,667
|
|
|
11,988
|
|
Total assets
|
|
$
|
5,544,001
|
|
|
5,580,594
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable–Antero Resources
|
|
$
|
4,956
|
|
|
4,884
|
|
Accounts payable–third party
|
|
|
23,592
|
|
|
33,087
|
|
Accrued liabilities
|
|
|
80,838
|
|
|
97,022
|
|
Other current liabilities
|
|
|
4,623
|
|
|
4,136
|
|
Total current
liabilities
|
|
|
114,009
|
|
|
139,129
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
3,122,910
|
|
|
3,133,184
|
|
Deferred income tax liability
|
|
|
13,721
|
|
|
41,788
|
|
Other
|
|
|
6,663
|
|
|
6,539
|
|
Total liabilities
|
|
|
3,257,303
|
|
|
3,320,640
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value: 100,000 authorized as of
December 31, 2021 and March
31,
2022
|
|
|
|
|
|
|
|
Series A non-voting perpetual
preferred stock; 12 designated and 10 issued and
outstanding as of December 31, 2021
and March 31, 2022
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par value; 2,000,000 authorized; 477,495
and 477,683 issued and
outstanding as of
December 31, 2021 and March 31, 2022, respectively
|
|
|
4,775
|
|
|
4,777
|
|
Additional paid-in capital
|
|
|
2,414,398
|
|
|
2,307,612
|
|
Accumulated deficit
|
|
|
(132,475)
|
|
|
(52,435)
|
|
Total stockholders'
equity
|
|
|
2,286,698
|
|
|
2,259,954
|
|
Total liabilities and
stockholders' equity
|
|
$
|
5,544,001
|
|
|
5,580,594
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed Consolidated
Statements of Operations and Comprehensive Income
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2021
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
Gathering and compression–Antero Resources
|
|
$
|
185,161
|
|
|
182,443
|
|
Water handling–Antero Resources
|
|
|
56,603
|
|
|
53,321
|
|
Water handling–third party
|
|
|
25
|
|
|
395
|
|
Amortization of customer relationships
|
|
|
(17,668)
|
|
|
(17,668)
|
|
Total revenue
|
|
|
224,121
|
|
|
218,491
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
|
|
|
39,314
|
|
|
42,012
|
|
General and administrative (including $4,012 and $2,832 of
equity-based compensation in
2021 and 2022,
respectively)
|
|
|
17,930
|
|
|
17,931
|
|
Facility idling
|
|
|
1,179
|
|
|
1,148
|
|
Depreciation
|
|
|
26,850
|
|
|
28,300
|
|
Impairment of property and equipment
|
|
|
1,379
|
|
|
—
|
|
Accretion of asset retirement obligations
|
|
|
119
|
|
|
64
|
|
Loss (gain) on asset sale
|
|
|
3,763
|
|
|
(118)
|
|
Total operating
expenses
|
|
|
90,534
|
|
|
89,337
|
|
Operating income
|
|
|
133,587
|
|
|
129,154
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
(42,866)
|
|
|
(44,279)
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
20,744
|
|
|
23,232
|
|
Total other expense
|
|
|
(22,122)
|
|
|
(21,047)
|
|
Income before income
taxes
|
|
|
111,465
|
|
|
108,107
|
|
Income tax
expense
|
|
|
(28,024)
|
|
|
(28,067)
|
|
Net
income and comprehensive income
|
|
$
|
83,441
|
|
|
80,040
|
|
|
|
|
|
|
|
|
|
Net income per
share–basic
|
|
$
|
0.17
|
|
|
0.17
|
|
Net income per
share–diluted
|
|
$
|
0.17
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
476,850
|
|
|
477,646
|
|
Diluted
|
|
|
479,272
|
|
|
480,173
|
|
ANTERO MIDSTREAM
CORPORATION
|
Selected Operating
Data
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Amount
of
|
|
|
|
|
|
|
March 31,
|
|
Increase
|
|
Percentage
|
|
|
2021
|
|
2022
|
|
or
Decrease
|
|
Change
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering—low pressure (MMcf)
|
|
|
256,802
|
|
|
263,727
|
|
|
6,925
|
|
|
3
|
%
|
Compression (MMcf)
|
|
|
243,562
|
|
|
253,474
|
|
|
9,912
|
|
|
4
|
%
|
Gathering—high pressure (MMcf)
|
|
|
253,091
|
|
|
259,042
|
|
|
5,951
|
|
|
2
|
%
|
Fresh water delivery (MBbl)
|
|
|
9,400
|
|
|
7,874
|
|
|
(1,526)
|
|
|
(16)
|
%
|
Other fluid handling (MBbl)
|
|
|
3,951
|
|
|
4,203
|
|
|
252
|
|
|
6
|
%
|
Wells serviced by fresh water delivery
|
|
|
24
|
|
|
21
|
|
|
(3)
|
|
|
(13)
|
%
|
Gathering—low pressure (MMcf/d)
|
|
|
2,853
|
|
|
2,930
|
|
|
77
|
|
|
3
|
%
|
Compression (MMcf/d)
|
|
|
2,706
|
|
|
2,816
|
|
|
110
|
|
|
4
|
%
|
Gathering—high pressure (MMcf/d)
|
|
|
2,812
|
|
|
2,878
|
|
|
66
|
|
|
2
|
%
|
Fresh water delivery (MBbl/d)
|
|
|
104
|
|
|
87
|
|
|
(17)
|
|
|
(16)
|
%
|
Other fluid handling (MBbl/d)
|
|
|
44
|
|
|
47
|
|
|
3
|
|
|
7
|
%
|
Average Realized
Fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gathering—low pressure fee ($/Mcf)
|
|
$
|
0.33
|
|
|
0.34
|
|
|
0.01
|
|
|
3
|
%
|
Average compression fee ($/Mcf)
|
|
$
|
0.20
|
|
|
0.21
|
|
|
0.01
|
|
|
3
|
%
|
Average gathering—high pressure fee ($/Mcf)
|
|
$
|
0.20
|
|
|
0.21
|
|
|
0.01
|
|
|
3
|
%
|
Average fresh water delivery fee ($/Bbl)
|
|
$
|
3.97
|
|
|
4.07
|
|
|
0.10
|
|
|
3
|
%
|
Joint Venture
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing—Joint Venture (MMcf)
|
|
|
128,538
|
|
|
136,242
|
|
|
7,704
|
|
|
6
|
%
|
Fractionation—Joint Venture (MBbl)
|
|
|
3,431
|
|
|
3,077
|
|
|
(354)
|
|
|
(10)
|
%
|
Processing—Joint Venture (MMcf/d)
|
|
|
1,428
|
|
|
1,514
|
|
|
86
|
|
|
6
|
%
|
Fractionation—Joint Venture (MBbl/d)
|
|
|
38
|
|
|
34
|
|
|
(4)
|
|
|
(11)
|
%
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed Consolidated
Results of Segment Operations
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
|
Gathering and
|
|
Water
|
|
|
|
Consolidated
|
|
(in
thousands)
|
|
Processing
|
|
Handling
|
|
Unallocated
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue–Antero Resources
|
|
$
|
194,443
|
|
|
53,321
|
|
|
—
|
|
|
247,764
|
|
Revenue–third-party
|
|
|
—
|
|
|
395
|
|
|
—
|
|
|
395
|
|
Gathering—low pressure rebate
|
|
|
(12,000)
|
|
|
—
|
|
|
—
|
|
|
(12,000)
|
|
Amortization of customer relationships
|
|
|
(9,271)
|
|
|
(8,397)
|
|
|
—
|
|
|
(17,668)
|
|
Total revenues
|
|
|
173,172
|
|
|
45,319
|
|
|
—
|
|
|
218,491
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating
|
|
|
17,182
|
|
|
24,830
|
|
|
—
|
|
|
42,012
|
|
General and administrative (excluding equity-based
compensation)
|
|
|
7,565
|
|
|
6,272
|
|
|
1,262
|
|
|
15,099
|
|
Equity-based compensation
|
|
|
2,136
|
|
|
469
|
|
|
227
|
|
|
2,832
|
|
Facility idling
|
|
|
—
|
|
|
1,148
|
|
|
—
|
|
|
1,148
|
|
Depreciation
|
|
|
15,807
|
|
|
12,493
|
|
|
—
|
|
|
28,300
|
|
Accretion of asset retirement obligations
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
64
|
|
Gain on asset sale
|
|
|
(31)
|
|
|
(87)
|
|
|
—
|
|
|
(118)
|
|
Total operating
expenses
|
|
|
42,659
|
|
|
45,189
|
|
|
1,489
|
|
|
89,337
|
|
Operating
income
|
|
|
130,513
|
|
|
130
|
|
|
(1,489)
|
|
|
129,154
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
—
|
|
|
—
|
|
|
(44,279)
|
|
|
(44,279)
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
23,232
|
|
|
—
|
|
|
—
|
|
|
23,232
|
|
Total other income
(expense)
|
|
|
23,232
|
|
|
—
|
|
|
(44,279)
|
|
|
(21,047)
|
|
Income before income
taxes
|
|
|
153,745
|
|
|
130
|
|
|
(45,768)
|
|
|
108,107
|
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
(28,067)
|
|
|
(28,067)
|
|
Net
income and comprehensive income
|
|
$
|
153,745
|
|
|
130
|
|
|
(73,835)
|
|
|
80,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
$
|
209,030
|
|
ANTERO MIDSTREAM
CORPORATION
|
Condensed Consolidated
Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2021
|
|
2022
|
|
Cash flows provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
83,441
|
|
|
80,040
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
26,850
|
|
|
28,300
|
|
Accretion
|
|
|
119
|
|
|
64
|
|
Impairment
|
|
|
1,379
|
|
|
—
|
|
Deferred income tax
expense
|
|
|
28,024
|
|
|
28,067
|
|
Equity-based
compensation
|
|
|
4,012
|
|
|
2,832
|
|
Equity in earnings of
unconsolidated affiliates
|
|
|
(20,744)
|
|
|
(23,232)
|
|
Distributions from
unconsolidated affiliates
|
|
|
31,910
|
|
|
31,130
|
|
Amortization of customer
relationships
|
|
|
17,668
|
|
|
17,668
|
|
Amortization of deferred
financing costs
|
|
|
1,388
|
|
|
1,410
|
|
Settlement of asset retirement
obligations
|
|
|
(408)
|
|
|
(455)
|
|
Loss (gain) on asset
sale
|
|
|
3,763
|
|
|
(118)
|
|
|
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable–Antero Resources
|
|
|
(15,051)
|
|
|
3,054
|
|
Accounts
receivable–third party
|
|
|
808
|
|
|
460
|
|
Income tax
receivable
|
|
|
16,311
|
|
|
—
|
|
Other current
assets
|
|
|
593
|
|
|
118
|
|
Accounts payable–Antero
Resources
|
|
|
(935)
|
|
|
230
|
|
Accounts payable–third
party
|
|
|
4,786
|
|
|
13,762
|
|
Accrued
liabilities
|
|
|
(18,213)
|
|
|
1,334
|
|
Net
cash provided by operating activities
|
|
|
165,701
|
|
|
184,664
|
|
Cash flows provided by
(used in) investing activities:
|
|
|
|
|
|
|
|
Additions to gathering systems and facilities
|
|
|
(15,059)
|
|
|
(70,734)
|
|
Additions to water handling systems
|
|
|
(13,330)
|
|
|
(13,533)
|
|
Investments in unconsolidated affiliates
|
|
|
(757)
|
|
|
—
|
|
Cash received in asset sale
|
|
|
1,493
|
|
|
121
|
|
Net
cash used in investing activities
|
|
|
(27,653)
|
|
|
(84,146)
|
|
Cash flows provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
Dividends to stockholders
|
|
|
(147,194)
|
|
|
(108,149)
|
|
Dividends to preferred stockholders
|
|
|
(138)
|
|
|
(138)
|
|
Payments of deferred financing costs
|
|
|
(543)
|
|
|
(302)
|
|
Borrowings on bank credit facilities, net
|
|
|
11,000
|
|
|
9,400
|
|
Employee tax withholding for settlement of equity
compensation awards
|
|
|
(1,541)
|
|
|
(1,329)
|
|
Other
|
|
|
(11)
|
|
|
—
|
|
Net
cash used in financing activities
|
|
|
(138,427)
|
|
|
(100,518)
|
|
Net
decrease in cash and cash equivalents
|
|
|
(379)
|
|
|
—
|
|
Cash and cash
equivalents, beginning of period
|
|
|
640
|
|
|
—
|
|
Cash and cash
equivalents, end of period
|
|
$
|
261
|
|
|
—
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the period for interest
|
|
$
|
58,739
|
|
|
40,677
|
|
Cash received during the period for income taxes
|
|
$
|
16,913
|
|
|
—
|
|
Increase in accrued capital expenditures and accounts payable
for property and equipment
|
|
$
|
780
|
|
|
10,388
|
|
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SOURCE Antero Midstream Corporation