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Antero Midstream Reports Strong Fourth Quarter 2024 Results and 2025 Financial Outlook

Antero Midstream Corporation (NYSE: AM) recently announced its fourth quarter 2024 financial results along with guidance for the upcoming year. The company's earnings report reveals a solid performance and optimism for continued growth in 2025.

Key Financial Highlights of Q4 2024

In the fourth quarter of 2024, Antero Midstream reported a net income of $111 million, translating to $0.23 per diluted share. This marks a notable 10% year-over-year increase in earnings per share. The adjusted net income for the same period reached $124 million, or $0.26 per diluted share, which represents an 8% increase over the previous year.

The adjusted EBITDA for Q4 2024 was $274 million, an 8% growth compared to the fourth quarter of 2023. Furthermore, capital expenditures significantly decreased to $24 million, a 47% drop from the prior year quarter. Additionally, free cash flow after dividends soared by 91%, reaching $93 million.

The company successfully repurchased 1.9 million shares at a cost of $29 million, while maintaining a healthy liquidity position with approximately $471 million remaining under its share repurchase program.

Overview of Full Year 2024 Performance

For the complete year of 2024, Antero Midstream indicated a net income of $401 million, equating to $0.83 per diluted share, reflecting an 8% increase year-on-year. Adjusted EBITDA for the full year was $1.05 billion, showcasing a 6% growth compared to 2023. The capital expenditures totaled $161 million, down 13% year-over-year, with free cash flow after dividends recorded at $250 million, indicating a 61% surge from the previous year.

Operational Accomplishments

During 2024, the company demonstrated operational enhancement by connecting five new wells to its gathering system while servicing sixteen wells with its fresh water delivery system. As a result, Antero Midstream's throughput, net income, modified EBITDA, and free cash flow all set organizational records, demonstrating strong operational capability and financial acumen.

2025 Financial Guidance

Looking ahead, Antero Midstream is projecting its 2025 net income to range from $445 million to $485 million, equivalent to $0.92 to $1.00 per share. The adjusted EBITDA is expected to hit between $1.08 billion and $1.12 billion, representing a 5% rise from the midpoint of 2024 figures. Furthermore, the capital expenditures for 2025 are anticipated to be in the range of $170 million to $200 million.

Antero Midstream anticipates free cash flow after dividends between $250 million and $300 million, assuming an annualized dividend of $0.90 per share, which is a 10% increase compared to 2024. The strategic focus on debt reduction, enhancing shareholder returns, and further investments in infrastructure indicates a robust outlook for the company.

Leadership Commentary

Paul Rady, Chairman and CEO, emphasized the company's prosperous year by stating, "Antero Midstream delivered an exceptional year in 2024 with throughput, net income, adjusted EBITDA, and free cash flow establishing company records. This growth in free cash flow has enabled us to finance acquisitions internally, reduce debt, pay generous dividends, and repurchase shares."

CFO Brendan Krueger outlined the company’s financial strategy, indicating a reduction in absolute debt by nearly $100 million in 2024, achieving a leverage ratio of below 3.0x by year-end. As the company looks to 2025, Krueger expressed confidence in continued increases in EBITDA and free cash flow, positioning Antero Midstream for ongoing financial success and value creation for its shareholders.

Conclusion

Antero Midstream’s 2024 financial results reveal a company in a strong position for growth, with forward-looking strategies focused on increasing operational efficiency and returning wealth to shareholders. The upcoming year appears promising as Antero Midstream is well-equipped to continue its trajectory of success.