Antero Midstream (AM) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $121 million ($0.25 per diluted share), up 19% per share year-over-year; adjusted EBITDA reached $274 million, a 3% increase year-over-year, with record processing volumes of 1,650 MMcf/d and over 99% asset uptime.

• Revenue increased 4% year-over-year to $291 million for Q1 2025, driven by higher gathering, compression, and water handling revenues.

• Torreys Peak Compressor Station was placed online ahead of schedule, adding 160 MMcf/d capacity and contributing to significant cost savings, with over $50 million saved across three stations and $60 million more expected over five years.

• Repurchased approximately 2 million shares for $29 million in Q1 2025; $443 million remains under the repurchase program.

• The Appalachian region is seeing strong growth in natural gas demand, especially from power generation, data centers, and industrial projects, with regulatory incentives accelerating project approvals.

Financial highlights

• Adjusted EBITDA for Q1 2025 was $274.3 million, up from $265.3 million in Q1 2024, with free cash flow after dividends at $79 million, a 7% increase year-over-year.

• Net income for Q1 2025 was $120.7 million, compared to $103.9 million in Q1 2024.

• Revenue for Q1 2025 was $291 million: $229 million from Gathering and Processing, $62 million from Water Handling.

• Operating income increased to $177 million from $166 million year-over-year.

• Over $29 million of shares were repurchased in Q1, and leverage declined to 2.95x as of March 31, 2025.

Outlook and guidance

• 2025 capital budget set at $170–$200 million, with over 90% of pricing secured and no large-diameter high-pressure gathering pipelines planned.

• Gathering volumes are expected to see low to mid single-digit year-over-year growth in 2025 versus 2024.

• Management anticipates further gathering volume growth throughout 2025, supported by new compressor capacity.

• Water service volumes are expected to remain consistent between Q1 and Q2, with 70-75 wells serviced for the year and average lateral length guidance reaffirmed at 13,200 feet.

• Annual CPI-based adjustments in contracts help mitigate inflationary pressures.