AM Q2 Earnings Miss on Higher Costs, Revenues Beat Estimates

• Gathering volumes reached a company record of 4,124 MMcf/d, up 19% year-over-year, while compression volumes rose 17% to 4,036 MMcf/d
• Total operating expenses increased to $145.34 million from $119.03 million, with net interest expense up 16% to $55.68 million due to HG Energy acquisition financing
• The company repurchased 400,000 shares for $5.56 million and used $371 million in proceeds from Veolia damages plus revolver borrowings to redeem $650 million of senior notes due 2028, with leverage expected to fall below its 3.0-times target

Antero Midstream Q2 2026 Earnings Summary

Financial Performance

Antero Midstream (AM) reported Q2 2026 earnings of $0.24 per share, missing analyst estimates of $0.25. However, revenues reached $327.24 million, beating consensus estimates of $322.31 million by 1.5% and growing 7.1% year-over-year from $305.47 million.

Operational Highlights

Gathering & Compression: Revenues increased to $271.51 million from $248.90 million year-ago. Average daily gathering volumes hit a company record of 4,124 MMcf/d, up 19% year-over-year. Compression volumes rose 17% to 4,036 MMcf/d.

Water Handling: Revenues grew to $78.54 million from $73.77 million, driven by a 131% surge in other water handling volumes to 136 MBbl/d.

Financial Metrics

Adjusted EBITDA increased 2% to $288.78 million. Adjusted free cash flow before dividends was $186.43 million. Operating expenses rose significantly to $145.34 million from $119.03 million, while net interest expense increased 16% to $55.68 million. Capital expenditures totaled $46.68 million.

Balance Sheet & Capital Allocation

Total debt stood at $3.59 billion as of June 30, 2026. The company received $371 million from a Veolia settlement and is redeeming $650 million in 2028 senior notes. Management expects leverage to fall below its 3.0x target. AM repurchased 400,000 shares during the quarter and maintains liquidity above $600 million.

Strategic Developments

Construction began on East Side Express, the company's first intrastate regional pipeline in West Virginia. AM connected 26 wells to its gathering system and serviced 21 wells with fresh water delivery.

AM currently holds a Zacks Rank #3 (Hold).