Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation October 26, 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: Consistent Growth and Large Low-Cost Inventory Dedicated to AM
Consistent Growth and Large Low-Cost Inventory Dedicated to AM AM Low Pressure Gathering Volumes Appalachia Sub-$2.75/Mcf Inventory (MMcf/d) (Years - Locations Based on 3rd Party Data) Year-over-year Growth 25 3,500 16% 3,323 Includes 3,304 22 3,300 ~$340 MM of 3,171 14% 14% Organic 20 3,100 2,981 L
Slide 4: Most Capital Efficient Customer in Appalachia
Most Capital Efficient Customer in Appalachia Drilling and Completion Capital vs. Production Growth Most Capital Efficient Average DD&C Growth: +25% 10% Production Growth 8% % Change in Production (3Q23 / 3Q22) 6% 4% 2% 0% Production Growth 0% Least Capital Efficient Peer 2 Peer 4 Peer 1 -2% Product
Slide 5: Operational Success Drives Earnings Growth
Operational Success Drives Earnings Growth 3Q23 Financial Achievements 3Q23 Operational Achievements +12% Increase + 13% / +17% Increase In Adjusted EBITDA Y-o-Y In Gathering / Compression +$28 MM Y-o-Y Volumes Y-o-Y 100% Utilized +$138 MM / +$30 MM Joint Venture Processing and Free Cash Flow Fracti
Slide 6: Transition to Repeatable Free Cash Flow after Dividends
Transition to Repeatable Free Cash Flow after Dividends Free Cash Flow after Dividends ($MM) $106 MM of Debt Reduction $50.0 $45.6 YTD Free Cash Flow after Dividends ($MM) $40.0 $30.5 $30.6 $30.5 $30.0 $20.0 3.4x $8.1 Leverage $10.0 $0.0 ($10.0) ($2.3) ($20.0) ($30.0) Delivered consistent Free Cash
Slide 7: Antero Midstream 2022 ESG Highlights
Antero Midstream 2022 ESG Highlights 0.031% 8 years Methane leak loss rate, one Without an employee of the lowest in the industry lost time incident 86% (59)% Of wastewater received Reduction In workforce was reused or recycled Total Recordable Incident Rate (“TRIR”) Y-o-Y 12,000,000 15% miles of tr
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: Antero Midstream Non-GAAP Measures
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: Antero Midstream Non-GAAP Measures
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 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Net income $ 80,040 79,395 84,014 82,793 86,507 87,0
Slide 12: Antero Midstream Non-GAAP Measures
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): September 30, 2023 Bank credit facility $ 676,400 7.875% senior notes due 2026 550