Antero Midstream Announces Bolt-On Acquisition, Increased 2024 Guidance and Redemption of 2026 Senior Notes
Bolt-On Acquisition Highlights and Rationale:
- Estimated to be over 5% accretive to Free Cash Flow after dividends through 2027
-
Increases
Antero Midstream's 2024 Adjusted EBITDA and Free Cash Flow guidance by$15 million and$10 million , respectively
Marcellus Bolt-On Acquisition
Under the terms of the agreement,
2024 Guidance Update
The following is a summary of
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Twelve Months Ended |
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Change vs. |
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Low |
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High |
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(At midpoint) |
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Net Income |
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Adjusted Net Income |
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470 |
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510 |
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+10 |
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Adjusted EBITDA |
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1,035 |
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1,075 |
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+15 |
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Capital Expenditures |
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150 |
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170 |
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— |
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Interest Expense |
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190 |
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200 |
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+5 |
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Free Cash Flow Before Dividends |
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680 |
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720 |
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+10 |
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Total Dividends |
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435 |
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435 |
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— |
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Free Cash Flow After Dividends |
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245 |
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285 |
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+10 |
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For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Leverage, and Free Cash Flow before and after dividends see "Non-GAAP Financial Measures and Definitions."
Redemption of 2026 Senior Notes
On
This press release is neither an offer to sell or a solicitation of an offer to buy the 2026 Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the 2026 Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release shall not constitute a notice of redemption of the 2026 Notes.
Non-GAAP Financial Measures and Definitions
- the financial performance of
Antero Midstream's assets, without regard to financing methods, capital structure or historical cost basis; - its operating performance and return on capital as compared to other publicly traded companies in the midstream energy sector, without regard to financing or capital structure; and
- the viability of acquisitions and other capital expenditure projects.
Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow before and after dividends are non-GAAP financial measures. The GAAP measure most directly comparable to these measures is Net Income. Such non-GAAP financial measures should not be considered as alternatives to the GAAP measures of Net Income and cash flows provided by (used in) operating activities. The presentations of such measures are not made in accordance with GAAP and have important limitations as analytical tools because they include some, but not all, items that affect Net Income and cash flows provided by (used in) operating activities. You should not consider any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP.
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Twelve Months Ended |
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Low |
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High |
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Depreciation expense |
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Equity based compensation expense |
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40 |
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45 |
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Amortization of customer relationships |
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70 |
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75 |
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Distributions from unconsolidated affiliates |
|
130 |
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140 |
This release includes "forward-looking statements." Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under
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