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Antero Midstream (AM)
NYSE:AM
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Antero Midstream
(NYSE:AM)
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Rating:78Outperform
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 (AM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.68B
Dividend Yield4.94%
Average Volume (3M)2.31M
Price to Earnings (P/E)18.5
Beta (1Y)0.49
Revenue Growth8.70%
EPS Growth21.42%
CountryUS
Employees616
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.24
Shares Outstanding476,275,000
10 Day Avg. Volume1,927,151
30 Day Avg. Volume2,309,567
Financial Highlights & Ratios
PEG Ratio2.32
Price to Book (P/B)3.43
Price to Sales (P/S)6.17
P/FCF Ratio12.06
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue9.90
Enterprise Value/Gross Profit15.24
Enterprise Value/Ebitda11.90
Forecast
1Y Price Target
$20.00Price Target Upside9.77% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)1
Revenue Forecast (FY)$1.20B
Antero Midstream Business Overview & Revenue Model
Company DescriptionAntero Midstream Corporation (AM) is a leading midstream energy company primarily focused on providing integrated and customized midstream services to its customers in the Appalachian Basin. The company operates in the midstream sector and offers services such as natural gas gathering and compression, processing, fractionation, and water handling and treatment. Antero Midstream plays a crucial role in supporting the upstream operations of its affiliate, Antero Resources Corporation, by ensuring efficient transportation and processing of hydrocarbons from production sites to end markets.
How the Company Makes MoneyAntero 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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant increases in EBITDA and free cash flow, along with strategic acquisitions and debt reduction. However, challenges remain with underutilized assets and hurdles in implementing new projects.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA increased by 10% year-over-year to $281 million, driven by increases in gathering, processing, and fresh water delivery volumes. Free cash flow after dividends rose by 94% compared to last year.
Successful Capital Investment
During the third quarter, Antero Midstream invested $51 million, bringing the year-to-date total to $133 million, approximately 75% of the total budget at the midpoint of guidance.
Balance Sheet Improvement
Reduced absolute debt by approximately $175 million and leverage by almost 0.5 turn. Refinanced nearest maturity notes to 2033 with a credit ratings upgrade from Moody's.
Expansion in Marcellus Shale
AR acquired approximately $260 million of assets in the core area, resulting in 10 additional locations dedicated to Antero Midstream and a total of 80 locations acquired year-to-date.
Negative Updates
Challenges in Implementing Behind-the-Meter Projects
The potential for behind-the-meter opportunities faces several hurdles, including equipment availability and agreement requirements with utilities. No near-term announcements expected.
Underutilized Assets
Significant underutilized capacity from previous acquisitions, such as the Crestwood and Summit assets, which are in the dry gas and lean gas areas respectively.
Company Guidance
During the Antero Midstream Third Quarter 2025 Earnings Call, the company provided insightful guidance on its strategic initiatives and financial performance. Antero Midstream invested $51 million in capital during the third quarter, totaling $133 million year-to-date, which represents about 75% of the total budget at the midpoint of guidance. This capital was primarily directed towards expanding and connecting water assets in the Marcellus Shale. The company's gathering and compression volumes saw a 5% year-over-year increase, while adjusted EBITDA grew by 10% to $281 million, driven by a notable 30% rise in freshwater delivery volumes. This financial growth enabled a free cash flow after dividends of $78 million, marking a 94% increase from the previous year. Antero Midstream's leverage reduced to 2.7x as of September 30, aided by debt reduction and share repurchases, contributing to a stronger balance sheet. Furthermore, the company's refinancing efforts extended maturity to 2033 with a 5.75% coupon, resulting in over $870 million of liquidity and no near-term maturities.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.85
Very Positive
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.77
Positive
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.80
Positive
| 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
Positive
18.22
Price Trends
18.07
Positive
17.92
Positive
17.51
Positive
Market Momentum
0.04
Negative
57.65
Neutral
72.22
Neutral
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 18.22 is above the 20-day moving average (MA) of 17.85, above the 50-day MA of 18.07, and above the 200-day MA of 17.51, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AM.
Antero Midstream Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.68B | 18.54 | 22.52% | 4.94% | 8.70% | 21.42% | |
78 Outperform | $15.83B | 11.48 | 40.29% | 8.95% | 5.81% | -13.58% | |
75 Outperform | $12.10B | 30.17 | 9.04% | 2.66% | 20.39% | -3.85% | |
72 Outperform | $12.27B | 14.10 | 9.78% | 8.55% | -7.53% | 9.74% | |
72 Outperform | $6.89B | 11.80 | 59.81% | 8.50% | 10.78% | 19.10% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | $5.98B | 88.42 | ― | 8.43% | 15.00% | -84.96% |
* Energy Sector Average
AM
Antero Midstream
18.22
3.71
25.57%
PAA
Plains All American
17.77
1.05
6.28%
WES
Western Midstream Partners
40.30
3.62
9.87%
HESM
Hess Midstream Partners
34.17
-0.46
-1.33%
KNTK
Kinetik
37.00
-17.36
-31.94%
DTM
DT Midstream
121.53
21.78
21.83%
Antero Midstream Corporate Events
Stock BuybackDividendsFinancial Disclosures
Antero Midstream Declares Dividend and Plans Earnings Release
Positive
Jan 14, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.