Antero Midstream (AM) AI Stock Analysis

• Market Cap: $8.53B
• Dividend Yield: 5.02%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.50
• Revenue Growth: 8.70%
• EPS Growth: 21.42%
• Country: US
• Employees: 616
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.24
• Shares Outstanding: 476,275,000
• 10 Day Avg. Volume: 2,891,251
• 30 Day Avg. Volume: 2,200,063
• PEG Ratio: 2.32
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 6.17
• P/FCF Ratio: 12.06
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 9.90
• Enterprise Value/Gross Profit: 15.24
• Enterprise Value/Ebitda: 11.90
• 1Y Price Target: $18.88
• Price Target Upside: 5.36% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $1.20B

• Rating: 78 Outperform
• Price Target: ―

Antero Midstream's stock is supported by strong financial performance, highlighted by robust profitability and cash flow generation. The stock's technical indicators suggest a slightly positive trend, though caution is advised due to high stochastic levels. Valuation is reasonable with a high dividend yield, making it attractive for income investors. The latest earnings call reinforced the company's strategic positioning and financial discipline, despite some market uncertainties. Overall, Antero Midstream presents a solid investment opportunity with balanced growth and income prospects.

Positive Factors

Cash Generation

Strong cash generation supports operational flexibility, allowing Antero Midstream to invest in growth opportunities and manage debt effectively.

Strategic Positioning

Strategic infrastructure and partnerships position Antero Midstream to capitalize on increasing natural gas demand, supporting long-term growth.

Debt Reduction

Effective debt management enhances financial stability and reduces risk, improving the company's ability to navigate economic fluctuations.

Negative Factors

High Leverage

High leverage can strain financial resources and limit flexibility, potentially impacting future investment and growth capabilities.

Stagnant Revenue Growth

Stagnant revenue growth may hinder the company's ability to expand its market share and invest in new opportunities, affecting long-term prospects.

Uncertain Capital Allocation

Unclear capital allocation strategies could lead to inefficient use of resources, affecting the company's ability to optimize growth and shareholder returns.

Antero Midstream Business Overview & Revenue Model

Company Description

Antero Midstream Corporation owns, operates, and develops midstream energy infrastructure. It operates through Gathering and Processing, and Water Handling segments. The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources' wells in West Virginia and Ohio. The Water Handling segment delivers fresh water; and offers pumping stations, water storage, and blending facilities. The company was incorporated in 2013 and is headquartered in Denver, Colorado.

How the Company Makes Money

Antero Midstream makes money through a variety of revenue streams centered around its midstream services. The company earns revenue primarily from long-term, fixed-fee contracts with Antero Resources, which provide stable cash flows and mitigate commodity price exposure. Key revenue streams include gathering and compression fees, which are charged for transporting natural gas from production sites to processing facilities. Additionally, Antero Midstream generates income from water handling services, including the delivery and treatment of water used in hydraulic fracturing. The company's strategic partnerships and infrastructure investments further enhance its ability to meet the growing demand for midstream services in the Appalachian region, thereby contributing to its earnings.

Antero Midstream Financial Statement Overview

Summary

Antero Midstream exhibits strong profitability and cash generation with stable margins and substantial free cash flow growth. Although revenue growth is minimal and leverage is high, the company effectively utilizes equity to generate returns. The financial position is stable, but attention to debt levels is warranted.

Income Statement

Antero Midstream shows strong profitability with a consistent gross profit margin reaching 100% in the latest year. The net profit margin improved to 36.24%, indicating efficient cost management. Revenue experienced a slight decline of 0.56% from the previous year, but EBIT and EBITDA margins are solid at 59.61%. Overall, profitability metrics are robust, though revenue growth is stagnant.

Balance Sheet

The debt-to-equity ratio is high at 1.47, indicating significant leverage. However, return on equity improved to 18.95%, reflecting effective use of equity to generate profits. The equity ratio stands at 36.71%, suggesting moderate financial stability. While leverage is a concern, profitability offsets some risks.

Cash Flow

Free cash flow grew by 41.86% over the past year, demonstrating strong cash generation. The operating cash flow to net income ratio is 2.10, indicating substantial cash inflows relative to net income. The free cash flow to net income ratio is 2.11, reflecting solid free cash flow relative to earnings. Overall, cash flow metrics highlight strong liquidity and cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.18B	1.11B	990.66M	968.87M	971.39M
Gross Profit	811.77M	748.22M	692.55M	607.97M	632.29M	626.54M
EBITDA	1.04B	966.32M	924.05M	836.12M	803.48M	148.25M
Net Income	472.42M	400.89M	371.79M	326.24M	331.62M	-122.53M
Balance Sheet
Total Assets	5.72B	5.88B	5.74B	5.79B	5.54B	5.61B
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	66.00K	0.00	0.00	640.00K
Total Debt	3.01B	3.12B	3.21B	3.36B	3.12B	3.09B
Total Liabilities	3.65B	3.77B	3.59B	3.60B	3.26B	3.19B
Stockholders Equity	2.07B	2.12B	2.15B	2.19B	2.29B	2.42B
Cash Flow
Free Cash Flow	1.04B	601.65M	595.06M	183.95M	476.93M	595.45M
Operating Cash Flow	909.65M	843.99M	779.06M	699.60M	709.75M	753.38M
Investing Cash Flow	-158.90M	-242.73M	-183.21M	-493.83M	-233.24M	-219.23M
Financing Cash Flow	-750.75M	-601.33M	-595.79M	-205.78M	-477.15M	-534.75M

Antero Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AM, the sentiment is Positive. The current price of 17.92 is above the 20-day moving average (MA) of 17.69, below the 50-day MA of 18.20, and above the 200-day MA of 17.35, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AM.

Antero Midstream Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AM	78 Outperform	$8.53B	18.36	22.52%	5.02%	8.70%	21.42%
WES	78 Outperform	$15.88B	11.51	40.29%	9.34%	5.81%	-13.58%
DTM	75 Outperform	$11.72B	29.24	9.04%	2.91%	20.39%	-3.85%
PAA	72 Outperform	$11.65B	13.39	9.78%	9.18%	-7.53%	9.74%
HESM	72 Outperform	$6.92B	11.83	59.81%	8.71%	10.78%	19.10%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KNTK	52 Neutral	$5.47B	83.46	―	9.49%	15.00%	-84.96%

Antero Midstream Corporate Events

Antero Midstream Declares Dividend and Plans Earnings Release

On January 14, 2025, Antero Midstream Corporation announced a cash dividend of $0.225 per share for the fourth quarter of 2024, payable on February 12, 2025. The company also repurchased approximately 1.9 million shares worth around $28.7 million during the same quarter, leaving $471 million of share repurchase capacity under its $500 million authorized program. Additionally, Antero Midstream plans to release its fourth-quarter 2024 earnings on February 12, 2025, with a conference call scheduled for February 13, 2025, to discuss the financial results.