Antero Midstream Corporation

Welcome to the Ontario Midstream's first quarter 2025 earnings call. This time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that today's conference is being recorded. At this time, I'll now turn the conference over to Justin Agnew, Vice President of Finance and Investor Relations. Justin, you may begin.

Good morning, and thank you for joining us for Antero Midstream's first quarter investor conference call. We'll spend a few minutes going through the financial and operating highlights, and then I'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 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 Kruger, 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 our 2025 capital projects and outlook for natural gas demand. Brendan will then walk through our first quarter results, capital efficiency, and return of capital to shareholders. But let me begin with slide number three titled 2025 Capital Budget on Track. The right-hand side of the slide shows our new Torreys Peak Compressor Station. We placed this station online in March ahead of our initial expectation of a second quarter in service date. Importantly, this station was our third compressor station, which was constructed with relocated underutilized units. The reuse savings have totaled approximately $30 million at Torreys Peak, and over $50 million across all three stations that we've done this with. Looking ahead, we expect over $60 million of additional reuse savings over the next five years. As you can see on the top left portion of the page, we do not have any large diameter high pressure gathering pipelines in the 2025 capital budget. Additionally, we have already secured materials, pricing, and lead times for all our steel and high-density polyethylene pipelines through 2026. As a result, we see immaterial impacts on our 2025 and 2026 capital budget from tariffs and other macroeconomic headlines. Now let's move on to slide number four titled Growth in Appalachia Gas Demand. The Appalachian region has quickly become a focal point for natural gas fired power generation, data centers, and behind the meter projects. Over a decade ago, we recognized the significant low cost resource base in Appalachia. Fast forward to today and these announcements further validate our positioning. These projects will require a significant amount of gas supply for decades to come. In addition, statewide regulations have been leading to faster approval times and attractive incentives to build in the region. AM is well positioned with an investment grade upstream counterparty, 20 years of dedicated inventory, and one of the largest natural gas and water systems in the region that can be supportive of future projects. While these projects generally have a longer lead time in nature, they highlight the long-term opportunity set for natural gas-focused midstream companies such as AM. I'll finish my comments on slide number five titled, Natural Gas Demand Estimates Continue to Increase. This slide illustrates the upward momentum in natural gas demand estimates to power data centers. In just the last six months, the expectations for the power required for data centers by 2030 has doubled, as shown on the chart on the left-hand side of the page. The right-hand side illustrates the percentage of data centers expected to be powered by natural gas, which has increased from 50% to 70%. This compounding effect supports significant growth in natural gas demand over the next several years. With that, I'll turn the call over to Brendan Krueger, CFO for Antero Midstream.