Slide 1: Fourth Quarter 2023 Earnings Presentation
Fourth Quarter 2023 Earnings Presentation February 15, 2024 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: A Decade of Success Since 2014 IPO
A Decade of Success Since 2014 IPO Adjusted EBITDA and Return on Invested Capital ($MM on Left Axis and % on Right Axis) Adjusted EBITDA ($MM) Return on Invested Capital (%) $1,200 20% 18% 18% $1,040 18% $1,000 17% 17% $989 16% 16% $876 $884 $830 $847 14% 14% $800 13% $709 12% 12% $600 10% $529 9% 8
Slide 4: Unparalleled Capital Flexibility
Unparalleled Capital Flexibility Capital Expenditures vs. NYMEX Gas Price ($MM on Left Axis and $/MMBtu on Right Axis) $900 Capital Expenditures NYMEX Henry Hub $7.00 $793 2023A vs. 2024E Capex Breakdown $800 $6.00 $185 $700 $646 $646 $160 $5.00 $57 $600 Water $33 $17 High Pressure $4.00 $31 $500 $4
Slide 5: Most Capital Efficient Customer: AR
Most Capital Efficient Customer: AR Drilling and Completion Capital Efficiency (2024E Drilling and Completion Capital / 2024E Production) $1.40 $1.23 $1.20 $1.17 $1.00 Peer Average: $0.92 Lowest capital $0.76 $0.80 per unit of $0.73 $0.72 production $0.60 $0.55 $0.40 $0.20 $0.00 AR Peer 1 Peer 2 Pee
Slide 6: AR Benefiting from Liquids Pricing Improvement
AR Benefiting from Liquids Pricing Improvement Propane Inventories AR 2023 Revenue Composition (MMBbl) (% of Revenues Excluding Hedge Gains and Losses) Peak inventories of Propane inventories declined to 102 MMBbl in 110 five year average since Oct 2023: October 2023 • Strong U.S. Exports Driven by
Slide 7: 2023 Highlights
2023 Highlights 4Q23 Achievements Full Year 2023 Achievements +10% Increase 18% In Adjusted EBITDA Y-o-Y Return on Invested Capital (+$23 MM Y-o-Y) + 10% / +14% Increase +$587 MM / +$155 MM In Gathering / Compression Free Cash Flow Volumes Y-o-Y Before / After Dividends 3.3x Leverage ~($150) MM Net
Slide 8: 2024: EBITDA Increasing & Capital Declining
2024: EBITDA Increasing & Capital Declining Adjusted EBITDA Capital Expenditures ($MM) ($MM) $1,200 $1,060 $200 $185 $989 $170 $1,000 $150 $800 $150 $1,020 $600 $100 $400 $50 $200 $0 $0 2023 2024 Guidance 2023 2024 Guidance Free Cash Flow After Dividends Year-End Leverage ($MM) (Debt / LTM Adjusted
Slide 9: 2024 Capital Allocation Strategy
2024 Capital Allocation Strategy 2024 Capital Allocation (Based on Midpoint of Guidance) ($MM) $1,000 $190 Satisfy debt obligations Interest Expense Highly economic $800 investment in gathering, $160 Capital Investment compression and water $1,040 $600 Adjusted EBITDA $435 Stable return of capital t
Slide 10: Delivering on 5-Year Outlook
Delivering on 5-Year Outlook Free Cash Flow After Dividends ($MM) $1,000 $870 ON TRACK $800 $0.9 - $1.0 Bn $600 $610 Organic project backlog $400 (2023-2027) $275 $155 $200 EBITDA $235 $10 $3.15 - $3.45 Bn $0 ($1) Cumulative Free Cash Flow ($94) Before Dividends ($200) Announced (2023-2027) $500 MM
Slide 11: Appendix
APPENDIX Antero Midstream (NYSE: AM)
Slide 12: 2024 Annual Guidance
2024 Annual Guidance ($ in millions): 2024 Guidance Ranges Net Income $405 – $445 Adjusted Net Income $460 – $500 Adjusted EBITDA $1,020 – $1,060 Capital Expenditures $150 – $170 Interest Expense $185 – $195 Free Cash Flow Before Dividends $670 – $710 $435 Total Dividends ($0.90 per share) Free Cash
Slide 13: Antero Midstream Non-GAAP Financial Measures
Antero Midstream Non-GAAP Financial 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 expense, loss on extinguishment of de
Slide 14: Antero Midstream Non-GAAP Financial Measures
Antero Midstream Non-GAAP Financial Measures The following table reconciles Net Income to Adjusted EBITDA and Free Cash Flow before and after dividends (in thousands): Twelve Months Ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net income $ 127,875 159,105 236,703 307,315 312,
Slide 15: Antero Midstream Non-GAAP Financial Measures
Antero Midstream Non-GAAP Financial Measures The following table reconciles Net Income to Return on Invested Capital: Twelve Months Ended December 31, 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net income $159,105 $236,703 $307,315 $312,894 ($285,076) ($122,527) $331,617 $326,242 $371,786 Amortiza
Slide 16: Antero Midstream Non-GAAP Financial Measures
Antero Midstream Non-GAAP Financial Measures Antero Midstream has not included a reconciliation of Adjusted Net Income, Adjusted EBITDA or Free Cash Flow before and after dividends to the nearest GAAP financial measures for 2024 because it cannot do so without unreasonable effort and any attempt to