Yahoo Finance Antero Midstream (AM) Beats on Q4 Earnings, Ups Net Income View
Antero Midstream Corporation AM reported fourth-quarter 2022 adjusted earnings per share of 20 cents, beating the Zacks Consensus Estimate of 17 cents. The bottom line is in line with the year-ago quarter’s earnings of 20 cents.
Total quarterly revenues of $242 million surpassed the Zacks Consensus Estimate of $237 million. The top line increased from $216 million in the year-ago quarter.
The strong quarterly results were primarily driven by higher freshwater delivery volumes and increased average freshwater distribution fees.
Antero Midstream Corporation Price, Consensus and EPS Surprise
Antero Midstream Corporation price-consensus-eps-surprise-chart | Antero Midstream Corporation Quote
Operational Performance
In fourth-quarter 2022, average daily compression volumes were 2,945 million cubic feet (MMcf/d), up from the year-ago level of 2,843 MMcf/d. On a per-Mcf basis, the compression fee was 21 cents, improving from the prior-year quarter’s 20 cents.
In the reported quarter, high-pressure gathering volumes totaled 2,762 MMcf/d, down from the year-ago period’s 2,915 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 21 cents, improving from the prior-year level of 20 cents.
Low-pressure gathering volumes averaged 3,070 MMcf/d, up from the fourth-quarter 2021 figure of 2,961 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 34 cents, higher than the prior-year level of 33 cents.
Freshwater delivery volumes were at 111 MBbls/d, up 39% from the prior-year level of 80 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.09 per barrel in the reported quarter, up from $3.97.
Operating Expenses
In fourth-quarter 2022, direct operating expenses of Antero Midstream were $48.3 million, up from $38.8 million a year ago.
Antero Midstream’s total operating expenses in the quarter were $97.4 million, increasing from the fourth-quarter 2021 levels of almost $88 million.
Balance Sheet
As of Dec 31, Antero Midstream had no cash and cash equivalents. As of the same date, Antero Midstream had $3,361.3 million of long-term debt.
Outlook
For 2023, Antero Midstream expects a net income of $340-$380 million, indicating an increase from the $326.2 million reported in 2022.
The company expects an adjusted net income of $395-$435 million and an adjusted EBITDA of $930-$970 million for the year.
Antero Resources disclosed a capital budget of $195-$215 million for 2023. The midstream operator anticipates free cash flow before dividends of $515-$555 million.
Zacks Rank & Other Stocks to Consider
Antero Midstream currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that also presently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nabors Industries Ltd.’s NBR fourth-quarter 2022 loss of $3.89 per share is wider than the Zacks Consensus Estimate of a loss of $1.06. The underperformance was primarily due to much higher year-over-year total costs and expenses.
Nabors expects Drilling Solutions’ first-quarter EBITDA to increase 6% from the fourth-quarter reported level. The adjusted EBITDA for NBR’s Rig Technologies segment is estimated to be in line with the fourth-quarter reported level. Nabors anticipates a free cash flow of $400 million for fiscal 2023.
Halliburton Company’s HAL fourth-quarter 2022 adjusted net income per share of 72 cents surpassed the Zacks Consensus Estimate of 67 cents. The outperformance reflects stronger-than-expected profit from both its divisions.
In more good news for investors, Halliburton raised its quarterly dividend by 33.3% to 16 cents per share (or 64 cents per share annualized).
Marathon Petroleum Corporation’s MPC adjusted earnings per share of $6.65 comfortably beat the Zacks Consensus Estimate of $5.54. The bottom line was favorably impacted by the stronger-than-expected performance of its key Refining & Marketing segment.
In the fourth quarter, MPC repurchased $1.8 billion of shares and further $700 million worth of shares from the start of this year till Jan 27. Marathon Petroleum, which gave an additional $5-billion share repurchase approval, currently has a remaining authorization of $7.6 billion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Halliburton Company (HAL) : Free Stock Analysis Report
Nabors Industries Ltd. (NBR) : Free Stock Analysis Report
Antero Midstream Corporation (AM) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
