Antero Midstream Corporation (NYSE:AM) Q2 2024 Earnings Conference Call August 1, 2024 12:00 PM ET

Company Participants

Justin Agnew – Vice President of Finance
Paul Rady – Chairman, Chief Executive Officer and President of Antero Resources and Antero Midstream
Brendan Krueger – Chief Financial Officer

Conference Call Participants

Ned Baramov – Wells Fargo
Noah Katz – J.P. Morgan
John Mackay – Goldman Sachs
Zack Van Everen – TPH

Operator

Greetings. Welcome to the Antero Midstream Second Quarter 2024 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

At this time, I’ll now turn the conference over to Justin Agnew, Vice President of Finance. Justin, you may now begin your presentation.

Justin Agnew

Thanks, operator, and good morning. Thank you for joining us for Antero Midstream’s second 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 have 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 Krueger, CFO of Antero Midstream; and Michael Kennedy, CFO of Antero Resources and Director of Antero Midstream.

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

Paul Rady

Thanks, Justin. Good morning, everyone. In my comments, I will discuss our bolt-on acquisition and peer-leading breakevens at AR I’m referring to Antero Resources. Brendan will then walk through our quarterly results and recent credit improvements.

Let’s start on Slide number 3 titled Marcellus Bolt-on Acquisition Highlights. During the second quarter, we closed on a $70 million acquisition from Summit Midstream. The acquisition included two compressor stations with 100 million cubic feet a day of capacity and approximately 50 miles of high-pressure pipelines in the Marcellus Shale highlighted in purple on the map.

These highly strategic assets are already connected to Antero Midstream’s infrastructure and support the future development by Antero Resources, which is now an investment-grade counterparty. In line with our previous bolt-on acquisitions, all of the throughput volume on these assets is from Antero Resources production. Most importantly, this transaction was immediately accretive to free cash flow and keeps us on track to achieve our leverage target of 3.0 times in the back half of this year.