Antero Midstream (AM) Update - Feb 22
Posted: Sat Feb 22, 2020 9:21 am
We sent out updated profiles for AR and AM this morning. I want to be clear that AM is a C-Corp and not an MLP.
AM is the midstream company that was created and is controlled by AR.
From everything AM indicates in their Q4 press release, the company intends to keep their quarterly dividend at $0.3075 or $1.23/year for annual yield 25.8% based Feb, 21 closing price of $4.76.
Based on the company's detailed guidance, they should have DCF coverage of 1.1X.
Based on my forecast model, AM should generate approximately $730 million cash flow from operations. This compares to the 2020 capital program of $300-$325 million.
AR's hedging program insulates them from the low natural gas prices for two years.
AM is the midstream company that was created and is controlled by AR.
From everything AM indicates in their Q4 press release, the company intends to keep their quarterly dividend at $0.3075 or $1.23/year for annual yield 25.8% based Feb, 21 closing price of $4.76.
Based on the company's detailed guidance, they should have DCF coverage of 1.1X.
Based on my forecast model, AM should generate approximately $730 million cash flow from operations. This compares to the 2020 capital program of $300-$325 million.
AR's hedging program insulates them from the low natural gas prices for two years.