Comparing 4 Midstream MLP Subsidiaries of Upstream C-Corps
Antero Midstream
Antero Midstream Partners (AM) provides natural gas gathering and compression services to its sponsor, Antero Resources (AR), under long-term, fixed-fee contracts. Currently, Antero Resources is Antero Midstream Partners’ only customer. It’s one of the largest producers of natural gas and NGLs (natural gas liquids) in the Appalachian Basin. Antero Midstream Partners went public in November 2014.
Antero Resources also owns and controls Antero Midstream’s general partner. It owns an ~69.70% limited partner interest and all of the IDRs (incentive distribution rights) in the partnership.
According to a recent company filing, Antero Midstream’s “assets consist of high and low pressure gathering pipelines and compressor stations that collect natural gas and oil and condensate from Antero’s wells in the Marcellus Shale in West Virginia and the Utica Shale in Ohio.”
Antero Midstream’s revenue
Antero Midstream’s total revenue for 2Q15 was $56.6 million compared to $16.9 million in 2Q14. This was a YoY (year-over-year) rise of ~234%. It was driven by a rise in the throughput volumes. Compared to 1Q15, the partnership’s total revenue rose by 40.80%. Currently, the partnership’s entire revenue is comprised of fixed fees received from Antero Resources.
Revenue drivers
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Throughput volumes - Antero Midstream’s recent revenue increase was driven by growth in throughput volumes across its midstream assets. The partnerships low-pressure gathering, high-pressure gathering, and compression volumes rose by 150%, 350%, and 1,005% for 2Q15 over 2Q14, respectively. For the six months ending on June 30, the partnership’s throughput volumes rose by 165%, 495%, and 941%.
Antero Midstream’s adjusted EBITDA
The partnership’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for 2Q15 and 1H15 grew by 256.50% YoY and 285% YoY compared to 2Q14 and 1H14, respectively. It was driven primarily by higher throughput volumes. Other midstream MLPs—including MarkWest Energy Partners (MWE), Summit Midstream Partners (SMLP), and EnLink Midstream Partners (ENLK)—that operate in the Appalachian Basin saw their 2Q15 EBITDA rise by 11%, 20.20%, and 4% YoY, respectively. Antero Midstream accounts for 0.16% of the Global X MLP & Energy Infrastructure ETF (MLPX).
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