The following is a summary of the Antero Midstream Corporation (AM) Q4 2023 Earnings Call Transcript:
Financial Performance:
Antero Midstream reported a record company EBITDA of $981 million at an 18% return on invested capital in 2023, with impressive 18% compound annual growth rate since 2014.
Q4 EBITDA hit a record $254 million, indicating a 10% increase YoY.
Full year 2023 EBITDA reached a record of $989 million, reflecting a 12% increase compared to 2022.
The company reduced its net debt by approximately $150 million in 2023, resulting in leverage declining to 3.3 times by year-end.
For 2024, the company projects a midpoint of $1.04 billion EBITDA, this is expected to be a 5% increase as compared to 2023.
The company expects to invest about 60% to 65% of its capital budget in the second and third quarters of the year.
Business Progress:
Antero Midstream completed the Grays Peak compressor station, adding extra capacity within the business.
For 2024, the major part of the capital budget is allocated for investment in the Marcellus liquids-rich midstream corridor.
The company forecast to maintain a stable $0.90 per share dividend for 2024.
Antero Midstream announced a sizable $500 million share repurchase program for 2024 through 2027 which is approximately 50% of the projected free cash flow after dividends for that period.
The company's primary customer, Antero Resources, is set to continue its operational success and development plans, offering stability for Antero Midstream.
For 2024, the company plans to allocate discretionary cash flow towards debt reduction to achieve three times leverage target; any excess will be used for further debt reduction and opportunistic share repurchases under their new repurchase program.
Antero Midstream aims to reduce both the debt and equity components of the capital structure with a balanced capital allocation strategy to accrue value to shareholders.
More details: Antero Midstream IR
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