Antero (AM) Raises Quarterly Distribution; Updates Guidance

Antero Midstream Partners LP AM announced an increased third-quarter 2015 distribution and provided an update on 2015 guidance.

The partnership declared a cash distribution of 20.5 cents per unit (82 cents per unit annualized) for the third quarter of 2015. The distribution represents an 8% increase quarter over quarter and the partnership's third consecutive quarterly distribution increase since its initial public offering in Nov 2014. The distribution is payable on Nov 30, to unitholders of record as of Nov 11.

Antero Resources also announced that it is raising 2015 EBITDA guidance to a range of $180 million to $190 million from the previous range of $170 million to $180 million. The upward revision was due to higher volumes, lower operating expenses and lower property taxes incurred during 2015. The partnership’s distributable cash flow is now expected at $160 million to $170 million in 2015 instead of the prior guidance of $150 to $160 million.

Antero Midstream Partners is a limited partnership that owns, operates and develops midstream gathering and compression assets located in WV, OH and PA.

The partnership during the third quarter of 2015 reported low pressure gathering volumes averaging 1,038 million cubic feet per day (MMcf/d), reflecting a 95% increase from the third quarter of 2014 and an 8% increase from the second quarter of 2015. High pressure gathering volumes for the third quarter of 2015 averaged 1,216 MMcf/d, up 129% from the third quarter of 2014 and 2% from the second quarter of 2015. Compression volumes for the third quarter of 2015 averaged 435 MMcf/d, reflecting a 275% increase from the third quarter of 2014 and a 4% decrease from the second quarter of 2015.

Currently, Antero Resources carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Callon Petroleum Company CPE, Halcon Resources Corporation HK and Matador Resources Company MTDR. Each of these stocks carries a Zacks Rank #2 (Buy).

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