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    Naomi Marfatia • Mizuho Securities USA LLC

    Naomi Marfatia's questions to Antero Midstream Corp (AM) leadership

    Naomi Marfatia's questions to Antero Midstream Corp (AM) leadership • Q1 2025

    Question

    Naomi Marfatia asked for additional details on the commercialization of data center demand and how Antero Midstream could benefit, and also questioned the company's capital allocation strategy regarding M&A versus buybacks now that leverage is below its target.

    Answer

    Brendan Krueger, CFO of Antero Midstream, explained that it is too early to provide specific details on data center commercialization but reiterated that the company is actively engaged in conversations. Regarding capital allocation, he stated that with leverage below 3x, Antero Midstream will continue a portfolio approach of paying down debt and repurchasing shares. He also affirmed that the company remains opportunistic for strategic, bolt-on M&A opportunities, supported by its strong balance sheet.

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    Naomi Marfatia's questions to Antero Midstream Corp (AM) leadership • Q4 2024

    Question

    Naomi Marfatia inquired about Antero Resources' (AR) potential data center deals and their impact on Antero Midstream (AM), as well as the implications of AR's increased production guidance for AM's activity levels in 2025.

    Answer

    Brendan Krueger, CFO of Antero Midstream, explained that while AM is involved in early-stage discussions regarding data center opportunities, it is too soon to determine the outcome. He confirmed that AR's drilling JV will lead to low single-digit volume growth for AM in 2025, which, combined with CPI fee escalators, is expected to drive mid-single-digit EBITDA growth.

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    Naomi Marfatia's questions to Antero Midstream Corp (AM) leadership • Q3 2024

    Question

    Naomi Marfatia asked for an outlook on Antero Midstream's growth drivers for 2025, considering the deferred activity from Antero Resources, and questioned if mid-single-digit growth is still expected. She also requested an update on the Veolia legal payment and the potential use of those proceeds.

    Answer

    Brendan Krueger, CFO of Antero Midstream, affirmed that low to mid-single-digit growth in gathering is a fair assumption for 2025, with water volumes expected to be consistent year-over-year, potentially increasing if deferred pads are completed in 2025. Regarding the Veolia payment, he stated there is no definitive timing as the matter is still with the courts and any proceeds would be allocated based on debt and leverage levels at that time.

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    Naomi Marfatia's questions to Hess Midstream LP (HESM) leadership

    Naomi Marfatia's questions to Hess Midstream LP (HESM) leadership • Q1 2025

    Question

    Naomi Marfatia from UBS asked about the outlook for the Bakken rig count amid the current macro environment and whether Hess's 2025-2027 outlook has changed. She also questioned if there was a change in the cadence of share buybacks or secondaries.

    Answer

    President and COO John Gatling stated that the company looks past short-term volatility and maintains a consistent activity level, with MVCs providing protection. CFO Jonathan Stein reaffirmed all guidance through 2027, which underpins the 5% distribution growth target. Regarding capital returns, Stein confirmed no change to the plan for multiple repurchases per year and noted that secondaries remain investor-demand driven.

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    Naomi Marfatia's questions to Hess Midstream LP (HESM) leadership • Q4 2024

    Question

    Naomi Marfatia inquired about Hess Midstream's multiyear growth outlook, asking if the projected 10% EBITDA growth for 2026 is based on MVCs and if there is potential for upside. She also asked about the long-term strategy in the Bakken, including organic growth versus M&A and any plans for expansion beyond the basin.

    Answer

    CFO Jonathan Stein detailed how the 2026 and 2027 MVCs, when grossed up and combined with third-party volumes, underpin the company's volume and EBITDA growth targets. President and COO John Gatling added that this growth is driven by Hess Corporation's efficient 4-rig program and rising gas-to-oil ratios. Gatling also confirmed HESM has no plans to expand beyond the Bakken, as organic growth from Hess and third parties is strong, setting an 'extremely high' bar for any potential bolt-on M&A.

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    Naomi Marfatia's questions to Hess Midstream LP (HESM) leadership • Q3 2024

    Question

    Naomi Marfatia inquired about the appetite of sponsors, particularly GIP, to sell down their stake and whether Hess Midstream sees an opportunity to repurchase shares directly from them. She also asked about the long-term outlook for third-party volumes in the Bakken given recent basin activity.

    Answer

    CFO Jonathan Stein explained that sponsor secondaries are demand-driven and that HESM's repurchase program is a separate return of capital initiative, not a mechanism for sponsor exits. He reaffirmed the company's plan to utilize its greater than $1.25 billion in financial flexibility for shareholder returns. President and COO John Gatling added that while the long-term outlook for third-party volumes remains around 10%, HESM is well-positioned to capture additional volumes, though the primary focus is supporting Hess Corporation's growth.

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