The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jeremy Tonet - JP Morgan - Analyst
: Hi, good morning.
Question: Jeremy Tonet - JP Morgan - Analyst
: Just wanted to touch on a bit more, I guess, for the potential for in-basin demand growth, which could help with AR's outlook as far
as looking for more growth there. How do you see this opportunity set shaping up over time given the rich resource and the favorable
attributes of the region?
Question: Jeremy Tonet - JP Morgan - Analyst
: Got it, thank you for that. And then I know on the AR call, you talked a bit about the LPG market. But just wondering if you could talk
a bit here, I guess, the outlook for propane in, I guess, AR strategy to mitigate that risk and how that impacts AM?
Question: Jeremy Tonet - JP Morgan - Analyst
: Got it. That makes sense. And this might be a bit premature, but on the other side of the cycle, just wondering what's the outlook
for the JV here, continues to run above nameplate? And if the propane market grows over time, could there be more liquid-rich
production in the basin? And could that lead to -- would you want to participate in any expansion there in the JV on the frac side?
Question: Jeremy Tonet - JP Morgan - Analyst
: Got it. I'll leave it there. Thank you.
Question: Naomi Marfatia - UBS - Analyst
: Hi, thanks for taking my questions. Just a follow-up on your commentary on data centers. You all gave a good rundown in your
prepared remarks. But just curious if you could provide any additional details on how conversations are heading about
commercialization and how AM could benefit from the trend?
Question: Naomi Marfatia - UBS - Analyst
: Got it. And then my second question is related to capital allocation. You all have done buybacks since the last two quarters and the
leverage is below 3 times target. How should we think about your strategy on M&A or bolt-ons now that you own most of the
gathering and compression in West Virginia?
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MAY 01, 2025 / 4:00PM, AM.N - Q1 2025 Antero Midstream Corp Earnings Call
Question: Naomi Marfatia - UBS - Analyst
: Great, I'll leave it there. Thank you.
Question: John MacKay - Goldman Sachs - Analyst
: Hey team, I appreciate the comments on the LPG side of things. I guess I'd just be curious to kind of ask it in maybe a more direct
way. I mean, from an AM perspective, we obviously care about the volume side. Like how much softer would pricing need to get to
see a kind of production response from AR that would hit AM's volumes?
Michael Kennedy - Antero Midstream Corp - Director, Senior Vice President - Finance, Chief Financial Officer - Antero Resources
Yeah, you really can't get there, John. This is Mike Kennedy. We actually sensitized that the COVID prices, and it still wasn't there if
you have natural gas prices where they're at, we still have substantial free cash flow. So -- and even if we don't, we wouldn't have --
we don't have any debt really.
So we would continue to run our 2-rig 1 plus completion crew program, really absent any sort of commodity price at this location.
We continue to run it regardless.
Question: John MacKay - Goldman Sachs - Analyst
: That's interesting. Thanks for your time, guys. I appreciate it.
Question: Zack Van Everen - TPH&Co. - Analyst
: Hey guys, thanks for taking my question. Just a quick one on water. You guys serviced 28 wells this quarter. I know you mentioned
a lot of those -- or eight of those were kind of to the back of the quarter. You still expecting to service the 70 to 75 you guys had in
your guidance, which would kind of point towards a step down for maybe Q2?
Question: Zack Van Everen - TPH&Co. - Analyst
: Okay, that's helpful. And then on the lateral length, still expecting the 13,200. I know the AR length of completed came in a little bit
higher, but is that still a good average to look at?
Question: Zack Van Everen - TPH&Co. - Analyst
: Alright, appreciate it. Thanks guys.
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