NasdaqGM:ALTM

Stock Analysis Report

Executive Summary

Altus Midstream Company owns gas gathering, processing, and transmission assets in the Permian Basin of West Texas.


Snowflake Analysis

Slightly overvalued with weak fundamentals.


Similar Companies

Share Price & News

How has Altus Midstream's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALTM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

23.5%

ALTM

12.2%

US Oil and Gas

9.4%

US Market


1 Year Return

-85.8%

ALTM

-49.0%

US Oil and Gas

-6.8%

US Market

Return vs Industry: ALTM underperformed the US Oil and Gas industry which returned -49.9% over the past year.

Return vs Market: ALTM underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

ALTMIndustryMarket
7 Day23.5%12.2%9.4%
30 Day-18.7%-2.1%-3.9%
90 Day-71.2%-42.4%-16.5%
1 Year-85.8%-85.8%-46.9%-49.0%-4.8%-6.8%
3 Yearn/a-42.1%-47.7%23.4%15.2%
5 Yearn/a-48.8%-56.7%41.3%25.7%

Price Volatility Vs. Market

How volatile is Altus Midstream's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Altus Midstream undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALTM ($0.81) is trading below our estimate of fair value ($24.53)

Significantly Below Fair Value: ALTM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALTM is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: ALTM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALTM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALTM has negative assets, so we can't compare its PB Ratio to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Altus Midstream forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-13.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ALTM's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if ALTM's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALTM's revenue is expected to decline over the next 3 years (-13.8% per year).

High Growth Revenue: ALTM's revenue is forecast to decline over the next 3 years (-13.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ALTM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Altus Midstream performed over the past 5 years?

-8324.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ALTM is currently unprofitable.

Growing Profit Margin: ALTM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ALTM's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare ALTM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ALTM is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: ALTM has a negative Return on Equity (-148.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is Altus Midstream's financial position?


Financial Position Analysis

Short Term Liabilities: ALTM's short term assets ($31.7M) do not cover its short term liabilities ($33.7M).

Long Term Liabilities: ALTM's short term assets ($31.7M) do not cover its long term liabilities ($563.6M).


Debt to Equity History and Analysis

Debt Level: ALTM's debt to equity ratio (43.8%) is considered high.

Reducing Debt: Insufficient data to determine if ALTM's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ALTM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ALTM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Altus Midstream's current dividend yield, its reliability and sustainability?

17.64%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ALTM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ALTM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALTM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALTM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALTM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

David Bretches (54yo)

1.25s

Tenure

US$3,471,882

Compensation

Mr. David Clay Bretches has been the Chief Executive officer, President and Director of Altus Midstream Company since January 16, 2019 and its Chairman of the Board since April 2, 2020. Mr. Bretches serves ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.47M) is above average for companies of similar size in the US market ($USD1.45M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
David Bretches
Chairman of the Board1.25yrsUS$3.47m0.35% $934.9k
Ben Rodgers
CFO, Treasurer & Directorno dataUS$803.25k0.0067% $18.0k
Bryan Graham
Vice President of Operations0.58yrno datano data
Rebecca Hoyt
Senior VPno datano data0.0067% $18.0k
Jim Virginillo
Vice President of Engineering & Technology0.58yrno datano data
Patrick Cassidy
Director of Investor Relationsno datano datano data
P. Lannie
Executive VP & General Counselno datano datano data
Dominic Ricotta
Senior Vice President of Human Resourcesno datano datano data
Jon Sauer
Senior VP & Directorno datano data0.020% $53.9k
Rajesh Sharma
Corporate Secretaryno datano datano data

0.6yrs

Average Tenure

54.5yo

Average Age

Experienced Management: ALTM's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Bretches
Chairman of the Board1.25yrsUS$3.47m0.35% $934.9k
Ben Rodgers
CFO, Treasurer & Directorno dataUS$803.25k0.0067% $18.0k
Jon Sauer
Senior VP & Directorno datano data0.020% $53.9k
D. Leland
Independent Director3.08yrsUS$179.97k0.10% $273.2k
Mark Borer
Independent Director2.83yrsUS$179.97k0.10% $273.2k
Kevin McCarthy
Director3.08yrsno data0.81% $2.2m
Robert Purgason
Director1.42yrsno data0.69% $1.9m
C. Johnson
Independent Director1.42yrsUS$179.97kno data
Staci Burns
Director1.42yrsno data0.0033% $9.0k
Christopher Monk
Director0.33yrno datano data

1.4yrs

Average Tenure

57yo

Average Age

Experienced Board: ALTM's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ALTM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Altus Midstream Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Altus Midstream Company
  • Ticker: ALTM
  • Exchange: NasdaqGM
  • Founded:
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$269.431m
  • Market Cap: US$62.131m
  • Shares outstanding: 324.93m
  • Website: https://www.altusmidstream.com

Location

  • Altus Midstream Company
  • One Post Oak Central
  • Suite 100
  • Houston
  • Texas
  • 77056-4400
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALTMNasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDNov 2018

Biography

Altus Midstream Company owns gas gathering, processing, and transmission assets in the Permian Basin of West Texas. As of December 31, 2019, its assets included approximately 178 miles of in-service natural gas gathering, 55 miles of residue gas, and 38 miles of natural gas liquids (NGL) pipelines; three cryogenic processing trains; and an NGL truck loading terminal with six lease automatic custody transfer units and eight NGL bullet tanks. The company is based in Houston, Texas. Altus Midstream Company is a subsidiary of Apache Midstream LLC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 06:13
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.