Antero Midstream (AM) Q4 2024 earnings summary

Executive summary

• Achieved 10th consecutive year of EBITDA growth, reaching $1.05 billion in 2024, with a record 19% ROIC and 8% year-over-year Adjusted EBITDA growth in Q4 2024.

• 2024 free cash flow after dividends hit $250 million, up 61% year-over-year, enabling debt reduction, share repurchases, and internal financing of acquisitions.

• Repurchased $29 million in shares in Q4 2024 and reduced debt by nearly $100 million for the full year.

• Completed an accretive Marcellus gathering and compression asset acquisition in 2024.

• Net Income for Q4 2024 was $111 million ($0.23/share), up 10% per share year-over-year; full-year Net Income was $401 million ($0.83/share), up 8% per share.

Financial highlights

• Q4 2024 EBITDA was $274 million, up 8% year-over-year; free cash flow after dividends was $93 million, up 91% year-over-year.

• Adjusted EBITDA reached $1,051 million in 2024, with a 17% CAGR since 2014.

• Free cash flow after dividends totaled $250 million in 2024; dividend yield at approximately 6% at current prices.

• Reduced absolute debt by over $50 million in Q4 and nearly $100 million for the full year; leverage ratio at 2.98x at year-end 2024.

• Q4 2024 revenue was $287 million: $225 million from Gathering and Processing, $62 million from Water Handling.

Outlook and guidance

• 2025 Adjusted EBITDA guidance: $1.08–$1.12 billion; net income: $445–$485 million; free cash flow after dividends: $250–$300 million (10% increase at midpoint).

• 2025 capital budget set at $170–$200 million, including $85 million for gathering/compression, $85 million for water infrastructure, and $10–$15 million for Stonewall JV.

• Maintaining $0.90 per share dividend in 2025; remaining free cash flow to be split between share repurchases and further debt reduction.

• Year-end 2025 leverage expected to be below 3.0x.

• Throughput growth expected in low-single digits; inflation adjustments to fixed fees anticipated.