Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation July 27, 2023 Antero Midstream (NYSE: AM)
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements: This presentation includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Antero Midstream Corporation’s (“Antero Mid
Slide 3: Drilling and Completion Efficiencies at AR
Drilling and Completion Efficiencies at AR Increasing Completion Stages per Day… And Drill Out Feet per Day… 16.0 Stages Company 6,450 Feet 11.2 Record Company Record 4,250 March 2023 March 2023 5.8 2,795 2019 2020 2021 2022 2Q23 Daily 2019 2020 2021 2022 2Q23 Daily Record Record Significantly Reduc
Slide 4: Optimizing Compression and Processing Utilization
Optimizing Compression and Processing Utilization Compression Capacity Utilization (MMcf/d) 5,000 Organic Capacity (Year-end) Acquired Capacity (Year-end) Acquired 4,000 Compression Volumes underutilized capacity for capital 3,000 efficient growth 2,000 1,000 - (1) 2017 2018 2019 2020 2021 2022 2023
Slide 5: Optimizing Compression Utilization
Optimizing Compression Utilization AM Marcellus Shale Asset Map Grays Peak (2024 In Service) Sherwood and Smithburg Processing Facilities AM Compressor Station Castle Grays AM Gathering Pipelines Peak Peak Stonewall Pipeline Castle Peak (On Line) Former East Mountain Compressor Station Units relocat
Slide 6: Operational Success Drives Earnings Growth
Operational Success Drives Earnings Growth 2Q23 Financial Achievements 2Q23 Operational Achievements +10% Increase + 11% / +17% Increase In Adjusted EBITDA Y-o-Y In Gathering / Compression +$22MM Y-o-Y Volumes Y-o-Y (31)% Decrease In Capital Expenditures Y-o-Y >99% Asset Uptime $(22)MM Y-o-Y Availab
Slide 7: 10% Year-over-Year EBITDA Growth
10% Year-over-Year EBITDA Growth Adjusted EBITDA by Segment ($MM) Double-digit Gathering and Compression throughput growth + Processing, Fractionation, Regional Pipeline annual CPI fee $300 adjustments Water Handling $244 $243 $250 Flat $221 $23 14% Water <$(1) $34 Handling $200 $34 $29 $29 $150 86%
Slide 8: Antero Midstream: Checking all the Boxes
Antero Midstream: Checking all the Boxes Expand asset base to drive EBITDA growth Execute flexible just-in-time investment Deliver peer-leading ROIC of 17% to 20% Generate repeatable Free Cash Flow after dividends On Track Reduce absolute debt and leverage to ≤3.0x in 2024 Well positioned for increa
Slide 9: Cheat Canyon Preservation, WV – Conservation efforts supported by Antero
Cheat Canyon Preservation, WV – Conservation efforts supported by Antero
Slide 10: Non-GAAP Financial Measures and Definitions
Antero Midstream Non-GAAP Measures Non-GAAP Financial Measures and Definitions Antero Midstream uses certain non-GAAP financial measures. Antero Midstream defines Adjusted Net Income as Net Income plus amortization of customer relationships, impairment of property and equipment, loss on settlement o
Slide 11: Net Income to Adjusted EBITDA and Free Cash Flow Reconciliation
Antero Midstream Non-GAAP Measures The following table reconciles Net Income to Adjusted EBITDA and Free Cash Flow before and after dividends (in thousands): Three Months Ended June 30, 2022 2023 Net Income $ 79,395 87,012 Interest expense, net 45,426 55,388 Income tax expense 26,399 29,095 Deprecia
Slide 12: Segment Net Income to Segment Adjusted EBITDA Reconciliation
Antero Midstream Non-GAAP Measures The following table reconciles segment Net Income to segment Adjusted EBITDA (in thousands): Processing, Gathering and Water Fractionation, Consolidated Three Months Ended June 30, 2023 Compression(1) Handling Unallocated Regional Pipeline Total Net Income $ 163,23
Slide 13: Net Debt and LTM Adjusted EBITDA Reconciliation
Antero Midstream Non-GAAP Measures The following table reconciles consolidated total debt to consolidated net debt, excluding debt premiums and issuance costs, (“Net Debt”) as used in this presentation (in thousands): June 30, 2023 Bank credit facility $ 725,500 7.875% senior notes due 2026 550,000
Slide 14: Historical Net Income to Adjusted EBITDA Reconciliation
Antero Midstream Non-GAAP Measures Twelve Months Ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 PF Net income $ 127,875 159,105 236,703 307,315 585,944 (285,076) (122,527) 331,617 326,242 342,717 Interest expense, net 6,183 8,158 21,893 37,557 61,906 130,518 147,007 175,281 189