A month has gone by since the last earnings report for Antero Midstream Corporation (AM). Shares have added about 8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Antero Midstream Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Antero Midstream Q4 Earnings Beat Estimates

Antero Midstream reported fourth-quarter 2023 adjusted earnings per share of 24 cents, which beat the Zacks Consensus Estimate of 21 cents. The bottom line also improved from the year-ago quarter’s level of 20 cents.

Total quarterly revenues of $260 million surpassed the Zacks Consensus Estimate of $249 million. The top line also increased from $242 million recorded in the year-ago quarter.

Such strong quarterly results were primarily driven by higher compression and increased low pressure gathering volumes.

Operational Performance

In the fourth quarter, average daily compression volumes were 3,343 million cubic feet (MMcf/d) compared with 2,945 MMcf/d in the year-ago period. The reported figure was also higher than our estimate of 3,126 MMcf/d. On a per-Mcf basis, the compression fee was 21 cents, in line with the prior-year quarter’s number.

High-pressure gathering volumes totaled 3,047 MMcf/d, up from the year-ago period’s level of 2,762 MMcf/d. The figure was also higher than our estimate of 2,767 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 21 cents, in line with the year-ago quarter’s level.

Low-pressure gathering volumes averaged 3,377 MMcf/d compared with 3,070 MMcf/d in the fourth quarter of 2022.  The figure was also higher than our estimate of 3,207 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 35 cents, higher than the prior-year quarter’s level of 34 cents. The reported figure was in line with our estimate.

Freshwater delivery volumes were registered at 94 MBbls/d, down approximately 15% from the prior-year quarter’s level of 111 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.22 compared with $4.09 in the year-ago period. The figure was also higher than our estimate of $4.10.

Operating Expenses

Direct operating expenses amounted to $50.8 million, up from $48.3 million recorded a year ago.

Antero Midstream’s total operating expenses came in at $104.5 million, up from $97.4 million recorded in the corresponding period of 2022.