DENVER - Antero Midstream Corporation (NYSE: NYSE:AM) announced its financial and operating results for the third quarter of 2024, highlighting a net income of $100 million, or $0.21 per diluted share, which is a 5% increase per share compared to the same period last year. The company also declared an adjusted net income of $113 million, or $0.23 per diluted share, consistent with the previous year's quarter.
The company's adjusted EBITDA saw a 2% rise from the previous year to $256 million, while free cash flow after dividends increased by 32% to $40 million. Antero Midstream maintained a leverage ratio of 3.1 times as of September 30, 2024.
In operational terms, low pressure gathering volumes decreased slightly by 1% year-over-year, while high pressure gathering volumes rose by 4%. Fresh water delivery volumes, however, experienced a significant drop of 33%, which the company attributed to a reduction in completion crews operating for Antero Resources (NYSE:AR).
Antero Midstream also announced the appointment of Jeffrey Muñoz to its Board of Directors, effective October 29, 2024. Mr. Muñoz brings over 30 years of experience in the energy industry with legal and accounting expertise.
The company's CFO, Brendan Krueger, noted that Antero Midstream paid down debt during the quarter and expects a reduction in capital expenditures in the fourth quarter, which should position the company to achieve its leverage target of 3.0 times.
For the three months ended September 30, 2024, revenues stood at $270 million, with the Gathering and Processing segment contributing $226 million and the Water Handling segment adding $44 million, net of $18 million of amortization of customer relationships.
Antero Midstream's capital expenditures for the third quarter totaled $56 million, with the majority invested in gathering and compression. The company has adjusted its 2024 guidance primarily due to increased interest expense resulting from higher interest rates.
The company will hold a conference call on Thursday, October 31, 2024, to discuss these results further. This article is based on a press release statement from Antero Midstream Corporation.
In other recent news, Antero Midstream Corporation has announced robust Q2 2024 earnings, which include a strategic $70 million acquisition from Summit Midstream (NYSE:SMC). This acquisition, contributing positively to free cash flow, involves assets in the Marcellus Shale and supports future growth with Antero Resources. The company reported a 5% rise in adjusted EBITDA and a significant 41% increase in free cash flow after dividends year-over-year. Despite the acquisition, Antero Midstream maintained its leverage ratio at 3.1 times, aligning with its target. The company's strong financial position has earned it an upgrade to investment grade. Looking ahead, Antero Midstream is considering initiating a share buyback program and expects to maintain steady growth in its base business with flat volumes year-over-year. These are among the recent developments for the company, which continues to explore third-party opportunities in Ohio.
InvestingPro Insights
Antero Midstream Corporation's (NYSE: AM) recent financial results align with several key metrics and insights from InvestingPro. The company's reported net income growth and consistent adjusted net income reflect its strong financial position, which is further supported by InvestingPro data showing a robust gross profit margin of 81.37% for the last twelve months as of Q2 2024.
An InvestingPro Tip highlights that Antero Midstream has maintained dividend payments for 8 consecutive years, which is particularly relevant given the company's reported free cash flow after dividends increase of 32%. This consistency in dividend payments, coupled with a current dividend yield of 6.05%, may be attractive to income-focused investors.
The company's operational performance, including the slight decrease in low pressure gathering volumes and increase in high pressure gathering volumes, is reflected in the moderate revenue growth of 7.78% over the last twelve months. This growth, while positive, aligns with another InvestingPro Tip suggesting that the stock is trading at a high revenue valuation multiple.
Antero Midstream's focus on debt reduction and achieving its leverage target is noteworthy, especially considering the InvestingPro data showing a P/E ratio of 18.56, which is relatively moderate for the industry. This focus on financial health could potentially improve the company's valuation metrics in the future.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 10 more InvestingPro Tips available for Antero Midstream, providing a deeper insight into the company's financial health and market position.
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