Antero Midstream (AM) Q1 2025 earnings summary

Executive summary

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

• Torreys Peak Compressor Station was placed online ahead of schedule, adding 160 MMcf/d capacity and generating $30 million in capital savings, with over $60 million in reuse savings expected over five years.

• Repurchased approximately 2 million shares for $29 million in Q1 2025, with $443 million remaining under the $500 million repurchase program.

• No large-diameter high-pressure gathering pipelines are planned for the 2025 capital budget, and all key materials are secured through 2026, minimizing exposure to tariffs and macroeconomic volatility.

• The Appalachian region is experiencing strong growth in natural gas demand, particularly from power generation, data centers, and industrial projects, with data center power demand estimates for 2030 doubling in the past six months and the share powered by natural gas rising from 50% to 70%.

Financial highlights

• Q1 2025 revenue was $291 million, up 4% year-over-year, with $229 million from Gathering and Processing and $62 million from Water Handling.

• Adjusted EBITDA for Q1 2025 was $274.3 million, up from $265.3 million in Q1 2024, and net income was $120.7 million, compared to $103.9 million in Q1 2024.

• Free cash flow after dividends was $79 million, up 7% year-over-year, marking the 11th consecutive quarter of positive free cash flow after dividends.

• Operating income increased to $177 million from $166 million year-over-year, and interest expense decreased 9% to $48 million.

• Capital expenditures totaled $37 million, supporting maintenance and expansion.

Outlook and guidance

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

• Gathering volumes are expected to see low to mid single-digit year-over-year growth in 2025 versus 2024, supported by new compressor capacity.

• Flexibility in capital return program will be maintained, with continued focus on debt reduction, dividends, and opportunistic share repurchases.

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

• Management expects stable throughput volumes due to Antero Resources' improved liquidity and leverage.