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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