Antero Midstream (AM) Up 4.6% Since Last Earnings Report: Can It Continue?

• Average daily gathering volumes hit a company record of 4,124 MMcf/d, up 19% year-over-year, while compression volumes rose 17% to 4,036 MMcf/d
• The company is using $371 million from Veolia damages plus revolver borrowings to redeem $650 million in 2028 senior notes, expecting leverage to fall below the 3.0x target
• Total operating expenses increased to $145.34 million from $119.03 million year-over-year, with direct operating costs rising to $84.53 million, pressuring margins despite revenue growth

Antero Midstream Stock Performance and Q2 2026 Earnings Summary

Stock Performance:

Antero Midstream Corporation (AM) has gained 4.6% since its last earnings report approximately one month ago.

Q2 2026 Financial Results:

• Earnings: 24 cents per share (missed analyst estimates)
• Revenue: $327.24 million, beating consensus estimate of $322.31 million by 1.5%
• Year-over-year revenue growth: 7.1% increase from $305.47 million
• Adjusted EBITDA: $288.78 million, up 2% year-over-year

Operational Highlights:

• Gathering volumes: Record 4,124 MMcf/d, up 19% year-over-year
• Compression volumes: 4,036 MMcf/d, up 17% annually
• Gathering and compression revenues: $271.51 million (from Antero Resources)
• Water handling revenues: $78.54 million
• Capital expenditures: $46.68 million ($33 million in gathering/compression, $14 million in water infrastructure)

Challenges:

Operating expenses increased to $145.34 million from $119.03 million year-over-year, pressuring profitability. Net interest expense rose 16% to $55.68 million due to HG Energy acquisition financing.

Balance Sheet Management:

• Total debt: $3.59 billion as of June 30, 2026
• Received $371 million from Veolia settlement in July
• Redeeming $650 million in senior notes due 2028
• Leverage expected to fall below 3.0x target
• Share buybacks: 400,000 shares repurchased during quarter

Growth Initiatives:

Construction began on East Side Express, the company's first intrastate regional pipeline in West Virginia, designed to enhance dry gas connectivity and support future demand growth.

Outlook:

Zacks maintains a #3 (Hold) rating with estimates trending upward, expecting in-line returns ahead.