Slide 1: Second Quarter 2024 Earnings Presentation
Second Quarter 2024 Earnings Presentation August 1, 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: Marcellus Bolt-on Acquisition Highlights
Marcellus Bolt-on Acquisition Highlights Acquisition Asset Map $70 MM Acquisition Price 100 MMcf/d Compression Antero Resources’ Acreage Capacity ~50 miles Of High Pressure Pipelines Immediately Previous Acquisition from Crestwood Accretive Sherwood / Smithburg Processing Complex To Free Cash 100% F
Slide 4: AR Has the Lowest Free Cash Flow Breakevens
AR Has the Lowest Free Cash Flow Breakevens 2024E Unhedged FCF Natural Gas Price Breakeven (1) 1H 2024 Unhedged Free Cash Flow / (Outspend) (2) ($/Mcf Henry Hub) ($MM) Maintenance Capital Interest Expense Cash Costs + Basis - Liquids Uplift 1H 2024 NYMEX Henry Hub: $2.07/MMBtu Haynesville Appalachia
Slide 5: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights 2Q24 Financial Achievements 2Q24 Operational Achievements +5% Increase Integrated Acquisition In Adjusted EBITDA Year-over-year Of Marcellus Gathering and Compression Assets $152 MM / $43 MM ~99% Utilized Free Cash Flow Joint Venture Processing and Before / After Divid
Slide 6: Improved Balance Sheet Flexibility
Improved Balance Sheet Flexibility Pro Forma Debt Maturity Schedule as of 06/30/2024(1) ($MM) AM Credit Facility AM Senior Unsecured Notes Maintained commitments of $MM $1,400 $1,306 $1.25 Bn and extended Credit Facility Capacity $1,250 maturity to 2029 (5 years) $1,200 Borrowings $556 Liquidity $69
Slide 7: Consistent Leverage & Credit Momentum
Consistent Free Cash Flow & Credit Momentum Leverage, Cumulative Free Cash Flow After Dividends & Credit Ratings (Net Debt / LTM Adjusted EBITDA and Corporate Credit Rating) Cumulative Free Cash Flow after Dividends 4.0x $281 $300 Leverage 3.8x 3.8x $250 4 Upgrades 3.6x 3.6x 3.6x Since 2020 3.4x 3.3
Slide 8: Appendix
APPENDIX Antero Midstream (NYSE: AM)
Slide 9: 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, loss on early extinguishment of debt, loss on se
Slide 10: 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): 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)
Slide 11: 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): As of June 30, 2024 Bank credit facility $ 555,700 5.75% senior notes due 2027 650
Slide 12: Antero Midstream Non-GAAP Measures
Antero Midstream Non-GAAP Measures Three Months Ended 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Net income $ 79,395 84,014 82,793 86,507 87,012 97,820 100,447 103,926 86,037 Interest expense, net 45,426 47,835 52,408 54,624 55,388 55,233 52,000 53,30
Slide 13: Antero Resources Non-GAAP Measures
Antero Resources Non-GAAP Measures Adjusted EBITDAX: Adjusted EBITDAX as defined by the Company represents income or loss, including noncontrolling interests, before interest expense, interest income, unrealized gains or losses from commodity derivatives, but including net cash receipts or payments
Slide 14: Antero Resources Free Cash Flow Reconciliation
Antero Resources Free Cash Flow Reconciliation Six Months Ended June 30, 2024 Net cash provided by operating activities 405,109 Less: Net cash used in investing activities (414,125) Less: Proceeds from sale of assets, net (418) Less: Distributions to non-controlling interests in Martica (42,899) Fre