Antero Midstream (AM) Q1 Results - April 29

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Antero Midstream (AM) Q1 Results - April 29

Post by dan_s »

First Quarter 2021 Earnings Highlights:

Net income was $83 million, or $0.17 per share, compared to an $0.81 per share net loss in the prior year quarter

Adjusted Net Income was $101 million, or $0.21 per share, compared to $0.23 per share in the prior year quarter (non-GAAP measure) < This compares to my forecast of $115.8 million or $0.24 per share.

Adjusted EBITDA was $219 million, a 1% increase compared to the prior year quarter (non-GAAP measure)

Capital expenditures were $30 million, a 64% decrease compared to the prior year quarter

Net cash provided by operating activities was $166 million, a 13% increase compared to the prior year quarter < Below my forecast of $178 operating cash flow per share.

Free Cash Flow before dividends was $146 million, a 51% increase compared to the prior year quarter (non-GAAP measure) < Better than my forecast.

Free Cash Flow after dividends was $39 million, compared to a $50 million deficit in the prior year quarter (non-GAAP measure)

Net Debt at quarter end was $3.1 billion and Net Debt to last twelve months Adjusted EBITDA was 3.7x, both consistent with December 31, 2020 (non-GAAP measure)

Paul Rady, Chairman and CEO said, "Antero Midstream delivered another strong operational quarter focused on cost reductions and capital discipline. This allowed us to generate $146 million of Free Cash Flow before dividends and for the second time in company history, generate Free Cash Flow after dividends. We believe this capital discipline and the ability to internally finance both our capital budget and return of capital to shareholders will serve Antero Midstream well going forward."

Mr. Rady further added, "Antero Midstream's primary customer, Antero Resources, made significant strides in improving its financial strength, generating over $400 million of Free Cash Flow during the first quarter. As a result of Antero Resources' Free Cash Flow profile, Antero Resources' leverage has significantly improved to 2.0x as of March 31, 2021. This improvement in financial strength at Antero Resources directly benefits Antero Midstream."
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Antero Midstream (AM) Q1 Results - April 29

Post by dan_s »

AM is a C-Corp. in our High Yield Income Portfolio that pays dividends of $0.225/quarter for annual yield of 10.2% based on today's share price of $8.77.

AM's future growth is tied directly to Antero Resources (AR). AR announced outstanding Q1 results and they will be completing over 120 new wells to AM's gathering and compression systems each year. AM also provides water hauling and treatment services to AR.

AM generates more than enough operating cash flow to hold their dividends at $0.90/year and will likely increase dividends on 2022.

My updated forecast/valuation model for AM has been posted to the EPG website.
Dan Steffens
Energy Prospectus Group
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