Antero Midstream Corporation

Greetings and welcome to the Ontario Midstream fourth quarter 2024 earnings call. At this time, all participants are in listen-only mode. Question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Justin Agnew, Vice President of Finance and Investor Relations. Justin, you may now begin.

Thanks, Operator, and good morning, everybody. 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 homepage 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 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.

Thanks, Justin. Good morning, everyone. In my comments, I will discuss AM's consistent EBITDA growth and increasing return on invested capital. I will also spend time highlighting our 2020-2025 capital budget. Brendan will then walk through our fourth quarter results and discuss our 2025 guidance and outlook. Let's start on slide number three, titled A Decade of Consistent Growth and Returns. This slide illustrates AM's EBITDA growth and return on invested capital, or ROIC. In 2024, we generated EBITDA of $1.05 billion, our 10th consecutive year of EBITDA growth. Importantly, in 2024, we generated an ROIC of 19%, which was a company record. Our just-in-time capital investment philosophy, unparalleled visibility, and accretion from our bolt-on acquisition all contributed to the increase in ROIC in 2024. Looking ahead to 2025, we expect continued EBITDA growth driven by year-over-year throughput growth which Brendan will provide more details around. Now let's move on to slide number four, titled 2025 Capital Budget Summary. In 2025, we budgeted $170 to $200 million of capital expenditures. This consists of approximately $100 million of organic capital and $15 million investment in the Stonewall joint venture. Our gathering and compression capital for 2025 is approximately $85 million, about half of the previously mentioned $170 million of organic capital. This includes our traditional blocking and tackling low pressure gathering connects and the remaining capital for our Torrey Speed Compressor Station, which is depicted on the right-hand side of the page. This station will have 160 million cubic feet a day of capacity and is expected to be placed in service during the second quarter of 2025. This station was built with relocated units from an underutilized station that resulted in approximately $25 million of estimated savings. In the water business segment, we are investing approximately $85 million in 2025. This $85 million includes an expansion of our water system to the southern half of our Marcellus footprint and creates one integrated system across the entire liquids-rich midstream corridor. This upgrade will support capital-efficient development and flexibility across the entire acreage position for the next decade and beyond. Lastly, let's discuss our $15 million investment in Stonewall which is the primary driver of the increase in capital expenditures year over year. This investment is for additional compression on the Stonewall gathering system. The additional compression will allow third-party customers to deliver gas through Stonewall onto other long-haul pipelines, further diversifying Entero Midstream's customer base. With that, I will turn the call over to Brenton.