Antero Midstream Surpasses EBITDA Growth Mark for Tenth Consecutive Year
On February 13th, Antero Midstream held its fourth-quarter 2024 earnings call, showcasing remarkable financial growth and strategic investments. The company achieved an impressive milestone by generating EBITDA of $1.05 billion in 2024, marking the tenth consecutive year of EBITDA growth.
According to Paul Rady, Chairman, CEO, and President of Antero Resources and Antero Midstream, "AM's consistent EBITDA growth and increasing return on invested capital have been driven by our just-in-time capital investment philosophy, unparalleled visibility, and accretion from our bolt-on acquisition." He highlighted the company's ability to achieve a record-breaking return on invested capital (ROIC) of 19% in 2024.
One of the key highlights of Antero Midstream's fourth-quarter results was its free cash flow after dividends, which reached $93 million, representing an 8% year-over-year increase. This significant improvement allowed the company to reduce absolute debt by over $50 million and achieve its 3x leverage target during the quarter.
The company also announced a share repurchase program, purchasing almost $30 million of shares during the quarter. Brendan Krueger, CFO of Antero Midstream, stated that this achievement was made possible by the record-breaking free cash flow after dividends in full-year 2024 results. The company generated $250 million of free cash flow after dividends, a company record, which enabled it to internally finance its Marcellus bolt-on acquisition earlier this year.
Antero Midstream's strategic investments for 2025 include budgeted capital expenditures ranging from $170 million to $200 million. This capital expenditure plan includes organic capital of approximately $100 million and an investment in the Stonewall joint venture, totaling $15 million. The company plans to expand its gathering and compression capital for 2025 by approximately $85 million, which will enable it to build a compressor station with 160 million cubic feet per day capacity.
The Water business segment will also see investments of approximately $85 million in 2025, aiming to create one integrated system across the entire liquids-rich midstream corridor. This upgrade is expected to support capital-efficient development and flexibility across the entire acreage position for the next decade and beyond.
