Antero Midstream (AM) Q4 Results - Feb 13

Antero Midstream (AM) Q4 Results - Feb 13

Postby dan_s » Thu Feb 13, 2020 7:33 pm

DENVER, Feb. 12, 2020 /PRNewswire/ -- Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today released its fourth quarter and full year 2019 financial and operating results. In addition, Antero Midstream announced its 2020 capital budget and guidance. The relevant consolidated financial statements are included in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2019.

Fourth Quarter 2019 Highlights Include:

Net loss was $(144) million, or $(0.29) per share
Adjusted Net Income increased by 3% to $177 million compared to the pro forma prior year quarter, or $0.35 per share (non-GAAP measure) < This compares to my forecast of $0.18 EPS.
Adjusted EBITDA increased by 6% to $203 million compared to the pro forma prior year quarter (non-GAAP measure)
Distributable Cash Flow was $159 million, resulting in 1.1x DCF coverage on the $0.3075 per share declared dividend (non-GAAP measure)
Capital expenditures were $126 million, $29 million below the midpoint of the revised capital budget

Full Year 2019 Highlights Include:

Low pressure gathering and processing volumes increased by 23% and 70%, respectively, compared to the pro forma prior year
Capital expenditures were $646 million, flat year-over-year and approximately $130 million below the midpoint of the original capital budget of $750 to $800 million
Net Debt to trailing twelve months pro forma Adjusted EBITDA ratio was 3.5x at year-end (non-GAAP measure)

2020 Capital Budget and Guidance Highlights Include:

Capital budget of $300 million to $325 million, over a 50% reduction compared to 2019 capital expenditures < This should result in over $300 million of free cash flow from operations.
Includes $60 million of maintenance capital at the midpoint of the range
Forecasting net income of $345 million to $385 million and Adjusted Net Income of $410 million to $460 million
Forecasting Adjusted EBITDA of $850 million to $900 million
Forecasting Distributable Cash Flow of $625 million to $675 million, resulting in 1.1x annual DCF coverage on the targeted annual dividend of $1.23 per share
Forecasting Free Cash Flow of $375 million to $425 million before return of capital and changes in working capital (non-GAAP measure)
Financial guidance and capital budget supported by Antero Resources' announced 2020 drilling and completion capital budget of $1.15 billion, resulting in net production growth guidance of 9% in 2020

Paul Rady, Chairman and CEO said, "Antero Midstream's 2020 capital budget, which reflects a 52% decrease compared to 2019, highlights the benefit of our just-in-time capital investment philosophy. The integrated planning efforts with Antero Resources and visibility into Antero Resources' development plan allow us to be flexible and continue to focus on capital discipline. The 2020 capital budget is focused primarily in the Marcellus Shale, supporting Antero Resources' liquids-rich development program on Antero Midstream dedicated acreage."

Mr. Rady further added, "Antero Resources today announced that it expects its 2020 development plan to generate 9% year-over-year net production growth. This net production growth supports continued growth in gathering, compression, processing and fractionation volumes for Antero Midstream."
Dan Steffens
Energy Prospectus Group
dan_s
 
Posts: 23063
Joined: Fri Apr 23, 2010 8:22 am

Re: Antero Midstream (AM) Q4 Results - Feb 13

Postby dan_s » Fri Feb 14, 2020 10:06 am

Michael Kennedy, CFO of Antero Midstream, said, “As a result of the 52% year-over-year reduction in capital expenditures combined with Adjusted EBITDA growth in 2020, Antero Midstream expects to generate significant free cash flow and maintain a strong balance sheet with Net Debt to Adjusted EBITDA in the mid 3-times range.”

My updated forecast/valuation models for AM and AR have been posted to the EPG website.

Based on AM's guidance, they intend to hold the quarterly dividend at $0.3075.
Dan Steffens
Energy Prospectus Group
dan_s
 
Posts: 23063
Joined: Fri Apr 23, 2010 8:22 am


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