Antero Midstream Corporation. (NYSE:AM) Q4 2023 Earnings Conference Call February 15, 2024 12:00 PM ET

Company Participants

Justin Agnew - Director, Finance

Paul Rady - Chairman, Chief Executive Officer, & President, Antero Resources & Antero Midstream

Brendan Krueger - Chief Financial Officer

Conference Call Participants

Jeremy Tonet - JPMorgan Chase

Brian Reynolds - UBS

John Mackay - Goldman Sachs

Zack Van Everen - TPH

Ned Baramov - Wells Fargo

Operator

Greetings and welcome to the Antero Midstream's Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host Justin Agnew, Director of Finance and Investor Relations for Antero Midstream. Thank you. You may begin.

Justin Agnew

Good morning and thank you for joining us for Antero Midstream's fourth quarter investor conference call. We'll spend a few minutes going through the financial and operating highlights and then we'll open it up for Q&A.

I would also like to direct you to the home page of our website at www.anteromidstream.com where we've provided a separate earnings call presentation that will be reviewed during today's call.

Today's call may also contain certain non-GAAP financial measures. Please refer to our earnings press release for important disclosures regarding such measures including reconciliations to the most comparable GAAP financial measures.

Joining me on the call today are Paul Rady, Chairman CEO and President of Antero Resources and Antero Midstream; Brendan Kruger CFO of Antero Midstream; and Michael Kennedy CFO of Antero Resources and Director of Interim Midstream.

With that, I'll turn the call over to Paul.

Paul Rady

Thanks, Justin, and good morning, everyone. In my comments, I will discuss the financial and operational success at Antero Midstream since our IPO in 2014. I'll also discuss the 2024 capital budget and the capital efficiency of our primary customer, Antero Resources, or AR. Brendan will then highlight our 2023 results, 2024 guidance and long-term outlook, and Antero Midstream's capital allocation strategy.

I will start my comments on slide number three titled, A Decade of Success Since Our 2014 IPO. In 2023, we generated a company record $981 million of EBITDA at an 18% return on invested capital. Additionally, since the IPO in 2014, EBITDA has grown by an impressive 18% compound annual growth rate. This is a testament to AM's world class assets, operational success and the visibility it has into the development plans of Antero resources, who is one of the premier E&P operators in North America. Looking ahead to 2024, we are guiding to a midpoint of $1.04 billion of EBITDA based on a maintenance capital program at AR. This program is expected to generate high teens ROIC in the 2024, as well as later, our capital budget declines and EBITDA increases.