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Antero Midstream Partners: How's It Doing amid Sector Weakness?

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Part 2
Antero Midstream Partners: How's It Doing amid Sector Weakness? PART 2 OF 9

A Look at Antero Midstream Partners’ Throughput Volumes

2Q17 throughput volumes

Antero Midstream Partners (AM) has posted strong throughput volume growth in recent quarters, driven by strong production growth at Antero Resources (AR) and recent acquisitions.

A Look at Antero Midstream Partners’ Throughput Volumes

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Gathering volumes

AM’s low-pressure gathering volumes rose to 1.7 Bcf/d (billion cubic feet per day) in 2Q17 compared to 1.4 Bcf/d in 2Q16, a YoY (year-over-year) rise of 24.0%. In the same period, its high-pressure gathering volumes rose to 1.7 Bcf/d from 1.3 Bcf/d, a YoY rise of 38.0%. The trend is expected to continue in the coming quarters, driven by upcoming projects and production growth at Antero Resources. AR expects its average net daily production to reach 2.3 Bcfe/d by the end of 2017 compared to 1.8 Bcfe/d in 2016, a YoY rise of 27.8%. Antero Resources’ production growth is mainly driven by an increase in its drilling activity and improvement in its drilling efficiency. We’ll look more at this later.

Fresh water volumes

Antero Resources’ fresh water volumes rose to 173.0 MBbl/d (thousand barrels per day) in 2Q17 compared to 105.0 MBbl/d in 2Q16, a YoY rise of 64.7%. That’s mainly driven by an increased use of fresh water in Antero Resources’ advanced well completions. The company’s recent investor presentation stated that “AR advanced Marcellus completion designs utilized 42 barrels of water per lateral foot in 2017, a 27% increase vs. 2015.”

Recent drilling activity

The Marcellus and Utica basins have continued to experience strong drilling activity after 2Q17. According to the recent rigs report by Baker Hughes, the natural gas rig counts in the regions have risen to 46 and 29, respectively, as of August 18, 2017, compared to 45 and 28, respectively, at the end of the second quarter.

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