Antero Midstream (AM)2024-04-25 18:18Financial Data and Key Metrics Changes - Antero Midstream reported record-breaking financial results for Q1 2024, with a 4% increase in gathering volumes and a 6% increase in processing volumes compared to the previous year [11] - The company achieved double-digit EBITDA growth alongside double-digit declines in capital expenditures year-over-year, resulting in 74 million after dividends, both record figures [11] - Leverage decreased to 3.1x from 3.3x at year-end 2023, supported by EBITDA growth and debt reduction [12] Business Line Data and Key Metrics Changes - The Grays Peak compressor station was placed in service, with an initial capacity of 160 million cubic feet per day, supporting future throughput growth [6] - Antero Midstream delivered 113,000 barrels per day of freshwater, achieving a 35% improvement in efficiency compared to previous operations [7][8] Market Data and Key Metrics Changes - Antero Resources' firm transportation portfolio allows for premium natural gas price realizations, with expectations of prices above 3 to 2 million, which is expected to provide future capital savings [33] - The company has maintained a consistent free cash flow generation, marking the seventh consecutive quarter of free cash flow after dividends [13] Q&A Session Summary Question: Increased demand for power related to AI and data centers - Management discussed the demand from data centers and the strategy to direct gas to the Gulf Coast for premium pricing [16] Question: Timing of buybacks and capital allocation priorities - Management indicated that as they approach the 3x leverage target, they will evaluate share buybacks, debt paydown, and bolt-on acquisitions [18] Question: Impact of deferred projects on AM volumes - Management clarified that a deferred project would not impact AM volumes for the year [22] Question: Guidance on liquids-rich area and volume forecast - Management confirmed that there was no change in AM's guidance despite AR's revised outlook, solidifying existing forecasts [26] Question: Debt repurchase decision and further paydown plans - Management explained the rationale behind the debt repurchase and indicated that further debt paydown would be considered as they approach the leverage target [31] Question: Details on the recent acquisition - Management provided insights into the recent acquisition, emphasizing its potential for future capital savings despite low current volume [33]