Antero Midstream Achieves Capital Savings and Operational Excellence in Q1 2024

2024-04-26

Antero Midstream, a prominent midstream energy company, conducted its first quarter 2024 earnings conference call with key participants, including Justin Agnew, Vice President of Finance and Investor Relations, alongside notable figures like Paul Rady, Brendan Krueger, Naomi Marfatia, John Mackay, Michael Kennedy, Zackery Van Everen, and Ned Baramov. Throughout the call, a range of crucial business topics were deliberated, offering insights into the company's performance and future outlook.

During the conference call, a significant announcement was made regarding the successful completion of the Grays Peak compressor station in the first quarter of 2024, leading to approximately $15 million in capital savings. This station, initially capable of handling 160 million cubic feet per day, plays a vital role in supporting future throughput growth within the liquids-rich corridor of Antero Resources' acreage.

Operational efficiencies within Antero Midstream's freshwater business were also underscored, with the company's ability to deliver 113,000 barrels per day of freshwater to Antero Resources showcasing its operational excellence. Moreover, the seamless integration of freshwater delivery systems has been pivotal in maintaining an impeccable track record in completions, with no missed completions since the acquisition of the water business nearly a decade ago.

The discussion also touched upon the company's efforts in executing debt and leverage reduction plans, demonstrating Antero Midstream's commitment to utilizing free cash flow post-dividends for debt reduction and strategic acquisitions. The company is well on track to surpass its 3x leverage target ahead of schedule, while keeping a close watch on capital allocation priorities such as share buybacks, debt reduction, and bolt-on acquisitions.

As Antero Midstream navigates through the diverse opportunities and challenges in the energy sector, it remains steadfast in its dedication to optimizing operations, enhancing efficiency, and delivering value to its stakeholders. With a clearly defined strategic direction and a strong emphasis on financial discipline, Antero Midstream continues to position itself for sustainable growth and success in the ever-evolving energy landscape.