Antero Midstream (AM) Q2 2024 earnings summary

Executive summary

• Adjusted EBITDA for Q2 2024 increased 5% year-over-year to $255 million, reflecting strong operational and financial performance.

• Net income for Q2 2024 was $86 million ($0.18 per diluted share), nearly flat compared to Q2 2023.

• Completed a $70 million bolt-on acquisition of Marcellus gathering and compression assets, immediately accretive to free cash flow and expanding infrastructure.

• Maintained a business model focused on organic growth, strategic acquisitions, and proactive debt reduction, enhancing balance sheet strength.

• Published the 2023 ESG report, highlighting ongoing sustainability initiatives and emissions reduction.

Financial highlights

• Q2 2024 total revenue was $270 million, up 4% year-over-year, with net income steady at $86 million.

• Adjusted EBITDA for the last twelve months ended June 30, 2024, was $1,025 million.

• Free cash flow after dividends reached $43 million, a 41% increase compared to Q2 2023.

• Interest expense decreased 6% year-over-year in Q2 2024 due to lower borrowings and debt redemption.

• Net debt as of June 30, 2024, was $3.2 billion, with leverage ratio at 3.1x Net Debt/Adjusted EBITDA.

Outlook and guidance

• Buyback program of up to $500 million authorized, expected to start in the second half of the year upon reaching the 3x leverage target.

• 2024 EBITDA guidance increased by $15 million due to the Summit acquisition, with annualized impact over $20 million.

• 2024 capital budget set at $150–$170 million, supporting maintenance and growth.

• No significant debt maturities until 2027, supporting balance sheet flexibility.

• Expectation of flat volumes year-over-year and low single-digit EBITDA growth, assuming maintenance capital and CPI fee escalators.