Antero Midstream Reports $1.1 Billion Revenue and $400.9 Million Net Income for Fiscal Year 2024

Antero Midstream Corporation reported a total revenue of $1.1 billion for the fiscal year ending December 31, 2024, marking a 6% increase from $1.0 billion in 2023. The growth was primarily driven by a 10% rise in gathering and processing revenues, which reached $889 million, while water handling revenues decreased by 8% to $217 million. The company attributed the fluctuations in revenue to changes in throughput volumes and pricing adjustments, particularly in its low-pressure gathering services, which saw a revenue increase of $59 million due to lower growth incentive rebates and annual CPI-based adjustments.

In terms of profitability, Antero Midstream's net income for 2024 was $400.9 million, up from $371.8 million in 2023, reflecting a 7.8% increase. The company’s operating income also rose to $659.2 million from $611.9 million in the previous year. The increase in operating income was supported by a modest rise in direct operating expenses, which grew by 2% to $218 million, and a significant increase in equity-based compensation expenses, which rose by 40% to $44.3 million.

Strategically, Antero Midstream made a notable acquisition in May 2024, purchasing Marcellus gas gathering and compression assets from Summit Midstream Partners for $70 million. This acquisition included 48 miles of high-pressure gathering pipelines and two compressor stations, enhancing the company's existing infrastructure and service capabilities. The company also reported a successful integration of these assets, which were already interconnected with its systems, and does not anticipate significant capital investments related to the acquired assets.

Operationally, Antero Midstream's performance indicators showed mixed results. The total volume of low-pressure gathering decreased slightly, while high-pressure gathering volumes increased by 3%. The company serviced 61 wells with its fresh water delivery system, a decrease of 20% from the previous year, which contributed to the decline in water handling revenues. As of December 31, 2024, Antero Midstream had a total of 616 employees, reflecting its ongoing commitment to maintaining a skilled workforce to support its operations.

Looking ahead, Antero Midstream has announced a capital budget for 2025 ranging from $170 million to $200 million, aimed at supporting Antero Resources' maintenance capital program. The company expects to continue deriving most of its revenues from Antero Resources, which remains its primary customer, accounting for nearly all of its revenue. The outlook for 2025 includes plans for Antero Resources to complete 60 to 65 net horizontal wells, which will directly influence Antero Midstream's service demand and revenue generation.