Yahoo Finance Why Is Antero Midstream Corporation (AM) Up 1.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Antero Midstream Corporation (AM). Shares have added about 1.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Antero Midstream Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Antero Midstream Tops on Q1 Earnings
Antero Midstreamreported first-quarter 2023 adjusted earnings per share of 21 cents, beating the Zacks Consensus Estimate of 19 cents. The bottom line improved from the year-ago quarter’s earnings of 19 cents.
Total quarterly revenues of $259.5 million surpassed the Zacks Consensus Estimate of $250 million. The top line increased from $218.5 million in the year-ago quarter.
Strong quarterly results were primarily driven by higher freshwater delivery volumes and increased average freshwater distribution fees.
Operational Performance
In first-quarter 2023, average daily compression volumes were 3,137 million cubic feet (MMcf/d), up from the year-ago level of 2,816 MMcf/d. On a per-Mcf basis, the compression fee was 21 cents, in line with the prior-year quarter.
In the reported quarter, high-pressure gathering volumes totaled 2,801 MMcf/d, down from the year-ago period’s 2,878 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 21 cents, in line with the prior-year level.
Low-pressure gathering volumes averaged 3,171 MMcf/d, up from the first-quarter 2022 figure of 2,930 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 35 cents, higher than the prior-year level of 34 cents.
Freshwater delivery volumes were at 123 MBbls/d, up 41% from the prior-year level of 87 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.21 in the reported quarter, up from $4.07.
Operating Expenses
In first-quarter 2023, direct operating expenses of Antero Midstream were $57.9 million, up from $42 million a year ago.
Antero Midstream’s total operating expenses in the quarter were $111.1 million, increasing from the first-quarter 2022 levels of $89.3 million.
Balance Sheet
As of Mar 31, Antero Midstream had no cash and cash equivalents. As of the same date, the company had $3,331.3 million of long-term debt.
Outlook
For 2023, Antero Midstream expects a net income of $355-$395 million, indicating an increase from the $326.2 million reported in 2022.
The company expects an adjusted net income of $410-$450 million and an adjusted EBITDA of $950-$990 million for the year. The midstream operator anticipates a free cash flow before dividends of $550-$590 million.
The company disclosed a capital budget of $180-$200 million for 2023, indicating a decline from the previously mentioned $195-$215 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
Currently, Antero Midstream Corporation has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Antero Midstream Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Antero Midstream Corporation (AM) : Free Stock Analysis Report
