Antero Midstream Delivers Strong Q1 2025 Results, Reiterates Commitment to Capital Efficiency
Antero Midstream has released its first-quarter 2025 earnings call transcript, showcasing a strong start to the year with impressive capital efficiency and return of capital to shareholders. The company's Vice President Finance and Investor Relations, Justin Agnew, kicked off the conference call, highlighting the key financial and operating highlights for Q1 2025.
In his opening remarks, Antero Midstream's Chairman, CEO, and President, Paul Rady, discussed the company's 2025 capital projects and outlook for natural gas demand. He emphasized that the company's new Torrey's Peak compressor station was brought online in March ahead of schedule, resulting in significant cost savings of approximately $30 million. This achievement highlights the company's focus on capital efficiency.
Rady also noted that Antero Midstream has already secured materials, pricing, and lead times for all its steel and high-density polyethylene pipelines through 2026. As a result, the company expects an immaterial impact on its 2025 and '26 capital budget from tariffs and other macroeconomic headlines.
The Chairman further discussed the growth in Appalachia gas demand, citing the region's increasing reliance on natural gas-fired power generation, data centers, and behind-the-meter projects. He emphasized that Antero Midstream is well-positioned to support these projects with its investment-grade upstream counterparty, 20 years of dedicated inventory, and one of the largest natural gas and water systems in the region.
The upward momentum in natural gas demand estimates was also highlighted by Rady, particularly for power data centers. The expectations for power required for data centers by 2030 have doubled over the last six months, with a corresponding increase in the percentage of data centers expected to be powered by natural gas from 50% to 70%. This compounding effect supports significant growth in natural gas demand over the next several years.
Antero Midstream's CFO, Brendan Krueger, took over and presented the company's first-quarter results. He reported that the company generated $274 million of EBITDA during Q1 2025, a 3% increase year-over-year, driven primarily by an increase in gathering and processing volumes. The company also set a record for daily gathering volumes at 1.65 Bcf a day.
Looking forward to the remainder of 2025, Krueger expects further increases in gathering volumes to drive low to mid-single-digit year-over-year growth in gathering volumes versus 2024. Additionally, the company utilized its free cash flow after dividends to reduce absolute debt and repurchase over $29 million of shares during the quarter.
These results demonstrate Antero Midstream's commitment to capital efficiency and return of capital to shareholders. The company's focus on delivering strong financial performance while investing in strategic initiatives positions it for continued growth and success in 2025 and beyond.
The conference call concluded with Antero Midstream reiterating its dedication to providing transparency and confidence to its stakeholders through regular earnings calls and updates on key projects and initiatives. The company's Q1 2025 results demonstrate a strong start to the year, setting a solid foundation for future success.
