Financial Data and Key Metrics Changes - In Q3 2025, adjusted EBITDA increased by 10% year over year to $281 million, driven by higher gathering, processing, and freshwater delivery volumes [11] - Free cash flow after dividends reached $78 million, a 94% increase compared to the previous year, allowing for share repurchases and debt reduction [11] - Total debt was reduced by approximately $175 million over the past year, with leverage decreasing to 2.7 times as of September 30 [12] Business Line Data and Key Metrics Changes - Gathering compression volumes increased by 5% year over year, with uptime availability exceeding 99% [11] - Freshwater delivery volumes saw a significant increase of almost 30% year over year, achieved with only one completion crew [11] Market Data and Key Metrics Changes - Antero Resources acquired approximately $260 million of assets in the core area of the Marcellus Shale, expanding Antero Midstream's infrastructure [5][6] - The company is actively pursuing opportunities in the dry gas segment, with plans to drill its first dry gas Marcellus pad in over a decade [8][9] Company Strategy and Development Direction - The company is focused on organic expansion in the Marcellus Shale, leveraging existing assets to drive growth and capitalize on structural changes in natural gas demand [5][10] - Antero Midstream aims to maintain a balanced approach to capital allocation, focusing on debt reduction and share repurchases [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth through strategic investments and operational efficiencies [12] - The company is well-positioned to benefit from in-basin demand growth, particularly in relation to data centers and power generation projects [19] Other Important Information - Antero Midstream's capital investments in Q3 totaled $51 million, bringing year-to-date investments to $133 million, which is approximately 75% of the total budget [6] - The company has over $870 million of liquidity and no near-term maturities following a successful refinancing of its debt [12] Q&A Session Summary Question: What is the status of in-basin demand and behind-the-meter opportunities? - Management indicated ongoing discussions regarding behind-the-meter solutions, emphasizing the potential to reduce operating costs and free up grid power, but no specific timeframe was provided [18][20] Question: What are the hurdles for the Sherwood behind-the-meter project? - The main challenges include equipment availability and securing agreements with local utilities, with no near-term announcements expected [20] Question: What is the capital or infrastructure spend needed for the 10 undeveloped locations acquired? - The estimated cost is about $1 million per well for connectivity, with an incremental total of around $10 million [27] Question: How will capital allocation priorities evolve moving forward? - The company plans to maintain a balanced approach, focusing on both debt reduction and share repurchases, roughly 50/50 [28] Question: Can we expect a decrease in capital intensity for Antero Midstream with the new developments? - Management suggested that capital intensity could be lower due to existing infrastructure, but it will depend on the development outcomes [34]

Financial Performance - Antero Midstream's Adjusted EBITDA increased by 10% year-over-year in 3Q25[10] - Free Cash Flow (FCF) after Dividends increased significantly by 94% year-over-year in 3Q25[10] - The company's leverage ratio (Net Debt/Adjusted EBITDA) improved to 2.7x[10] Operational Achievements - Antero Midstream achieved a high uptime availability of over 99%[11] - Gathering and compression volumes increased by 5% year-over-year[11] - Processing and fractionation capacity had a 100% utilization rate[11] Balance Sheet and Liquidity - As of September 30, 2025, Antero Midstream had over $870 million in liquidity with no near-term maturities[15] - Consolidated total debt was $3,029.6 million as of September 30, 2025[23] - Adjusted EBITDA for the last twelve months ended September 30, 2025, was $1,114.072 million[23]

Core Insights - Antero Midstream Corporation reported a revenue of $294.82 million for Q3 2025, marking a year-over-year increase of 9.3% and an EPS of $0.24 compared to $0.21 a year ago, slightly missing the consensus EPS estimate of $0.25 by 4% [1][3] Financial Performance - Revenue of $294.82 million exceeded the Zacks Consensus Estimate of $293.8 million, resulting in a surprise of +0.35% [1] - The company experienced a -9.4% return over the past month, contrasting with the Zacks S&P 500 composite's +3.8% change, and currently holds a Zacks Rank 3 (Hold) [3] Key Metrics - Average Daily Volumes for Low Pressure Gathering were 3432 million cubic feet per day, surpassing the estimate of 3371.62 million cubic feet per day [4] - Average Daily Volumes for Compression reached 3421 million cubic feet per day, exceeding the estimate of 3343.72 million cubic feet per day [4] - Average Daily Volumes for High Pressure Gathering were 3170 million cubic feet per day, slightly above the estimate of 3158.69 million cubic feet per day [4] - Average Daily Volumes for Fresh Water Delivery stood at 92 million barrels of oil per day, compared to the estimate of 84.26 million barrels per day [4] - Revenues from Water Handling for Antero Resources were $62.13 million, below the estimated $64.19 million but reflecting an 18.8% year-over-year increase [4] - Revenues from Gathering and Processing for Antero Resources were $249.83 million, exceeding the estimate of $245.72 million, with a year-over-year change of +6.4% [4] - Revenues from Gathering and Processing were reported at $240.56 million, above the estimate of $235.76 million, showing a +6.6% year-over-year change [4] - Revenues from Water Handling were $54.27 million, slightly below the estimate of $55.5 million, with a year-over-year change of +22.5% [4]

Financial Performance - Net Income for Q3 2025 was $116 million, or $0.24 per diluted share, representing a 14% increase per share compared to the prior year quarter[4] - Adjusted EBITDA reached $281 million, a 10% increase compared to the prior year quarter[4] - Free Cash Flow after dividends was $78 million, a 94% increase compared to the prior year quarter[4] - Antero Midstream's total revenue for the three months ended September 30, 2025, was $294,821,000, an increase of 9.1% from $269,870,000 in the same period of 2024[33] - Net income for the three months ended September 30, 2025, was $115,984,000, representing a 16.3% increase compared to $99,740,000 in the prior year[33] - Adjusted EBITDA for the twelve months ended September 30, 2025, was $1,114,072,000, reflecting strong operational performance[26] - Operating income was reported at $180.493 million, with operating expenses totaling $114.328 million[40] Capital Expenditures and Investments - Capital expenditures were $51 million, a 9% decrease compared to the prior year quarter[4] - The company invested $67.960 million in gathering systems and facilities during the nine months ended September 30, 2025[42] - Antero Resources completed approximately $260 million of acquisitions in the Marcellus Shale, including production already gathered by Antero Midstream[8] Debt and Leverage - Leverage declined to 2.7x as of September 30, 2025[4] - Total consolidated net debt as of September 30, 2025, was $3,029,600,000, down from $3,189,900,000 in the previous year[26] - The company reported a decrease in long-term debt to $3,008,694,000 as of September 30, 2025, from $3,116,958,000 in the previous year[32] - The company issued $650 million in Senior Notes during the nine months ended September 30, 2025, to support financing activities[42] - Net cash used in financing activities increased to $557.721 million for the nine months ended September 30, 2025, compared to $408.293 million in the previous year[42] - The company reported a loss on early extinguishment of debt of $1.313 million for the three months ended September 30, 2025[40] Operational Highlights - Antero Midstream reported a 5% year-over-year growth in gathering and compression volumes, with fresh water delivery volumes increasing by 30% year-over-year[3] - The company connected 16 wells to its gathering system and serviced 17 wells with its fresh water delivery system during Q3 2025[6] - Fresh water delivery increased by 30% to 8,472 MBbl for the three months ended September 30, 2025, compared to 6,514 MBbl in the same period of 2024[36] - The number of wells serviced by fresh water delivery rose to 17, an increase of 89% from 9 wells in the prior year[36] - Average compression fee increased by 5% to $0.22 per Mcf for the three months ended September 30, 2025[36] Shareholder Returns - Antero Midstream repurchased 2.3 million shares for $41 million during Q3 2025, with approximately $385 million remaining under its $500 million share repurchase program[5] - Dividends to common stockholders for the nine months ended September 30, 2025, were $331.820 million, slightly higher than the previous year's $329.252 million[42] Asset Management - Antero Midstream's total assets as of September 30, 2025, were $5,717,088,000, slightly down from $5,761,748,000 at the end of 2024[32]

Revenue Performance - Total revenues for the three months ended September 30, 2025, increased to $294.8 million, up from $269.9 million in the same period of 2024, representing a 9.2% increase[131] - Revenue from Antero Resources for the three months ended September 30, 2025, was $311.96 million, compared to $287.14 million in 2024, reflecting an 8.6% increase[133] - Total revenues increased by 9%, from $270 million for the three months ended September 30, 2024 to $295 million for the three months ended September 30, 2025[137] - Gathering and processing revenues increased by 7%, from $226 million to $241 million during the same period[137] - Water handling revenues increased by 23%, from $44 million to $54 million for the three months ended September 30, 2025[137] - Total revenues for the nine months ended September 30, 2025 increased by 9%, from $819 million to $891 million[154] - Water handling revenues for the nine months ended September 30, 2025 increased by 18%, from $155 million to $182 million[154] Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $180.49 million, compared to $162.43 million in the same period of 2024, marking an 11.1% increase[133] - Direct operating expenses increased by 12%, from $52 million to $58 million for the three months ended September 30, 2025[140] - Direct operating expenses increased by 10%, from $162 million for the nine months ended September 30, 2024 to $178 million for the nine months ended September 30, 2025[158] Cash Flow and Investments - Net cash provided by operating activities was $611 million and $677 million for the nine months ended September 30, 2024 and 2025, respectively, reflecting an increase due to higher gathering and processing revenues[171] - Net cash used in investing activities decreased from $203 million in 2024 to $119 million in 2025, primarily due to lower capital spending related to gathering systems[172] - Capital expenditures for the nine months ended September 30, 2025 totaled $133.5 million, a slight decrease from $137.3 million in 2024[177] Shareholder Returns and Capital Resources - The company repurchased approximately 5 million shares of common stock for a total cost of $87 million during the nine months ended September 30, 2025[124] - The company declared a cash dividend of $0.2250 per share for the quarter ended September 30, 2025, payable on November 5, 2025[169] - The company expects its capital resources to be adequate to meet working capital requirements and capital expenditures for at least the next 12 months[168] Interest and Tax Expenses - Interest expense decreased by 9%, from $52 million to $47 million primarily due to lower average daily Credit Facility borrowings[143] - Interest expense decreased by 9%, from $157 million for the nine months ended September 30, 2024 to $144 million for the same period in 2025, mainly due to lower interest rates on the Credit Facility[162] - Income tax expense increased by 20%, from $38 million to $46 million, reflecting effective tax rates of 27.7% and 28.3% respectively[146] - Income tax expense increased by 22%, from $103 million for the nine months ended September 30, 2024 to $126 million for the same period in 2025, reflecting effective tax rates of 26.3% and 25.8% respectively[165] Other Key Metrics - Fresh water delivery volumes increased by 30%, from 6,514 MBbl in Q3 2024 to 8,472 MBbl in Q3 2025[135] - The average realized compression fee rose by 5% from $0.21/Mcf in Q3 2024 to $0.22/Mcf in Q3 2025[135] - Gathering—low pressure volumes increased by 5% from 301,468 MMcf in Q3 2024 to 315,719 MMcf in Q3 2025[135] - Equity in earnings of unconsolidated affiliates increased by 7%, from $28 million to $30 million for the three months ended September 30, 2025[144] - Equity in earnings of unconsolidated affiliates increased by 6%, from $83 million for the nine months ended September 30, 2024 to $88 million for the same period in 2025, driven by increased processing volumes[163] - The company expects commodity prices to remain volatile but does not anticipate significant variability in throughput volumes due to Antero Resources' improved liquidity and leverage position[126] - The Federal Reserve increased the federal funds interest rate by 5.25% between 2022 and 2023 to manage inflation, which has begun to subside[127]

Core Insights - Antero Midstream Corporation reported strong operational performance in Q3 2025, with a 5% year-over-year growth in gathering and compression volumes and a 30% increase in fresh water delivery volumes [3][6][10] - The company achieved significant Free Cash Flow growth, nearly doubling from the previous year, allowing for debt reduction and share repurchases [3][4][6] - Antero Midstream's credit rating improved, enabling refinancing of near-term debt maturities out to 2033 at favorable rates [3][6] Financial Performance - Net Income for Q3 2025 was $116 million, or $0.24 per diluted share, reflecting a 14% increase per share compared to the prior year [6][14] - Adjusted Net Income was $130 million, or $0.27 per diluted share, a 17% increase per share year-over-year [6][15] - Adjusted EBITDA reached $281 million, a 10% increase from the previous year [6][16] - Free Cash Flow after dividends was $78 million, a 94% increase compared to the prior year [6][16] Operational Highlights - The company connected 16 wells to its gathering system and serviced 17 wells with its fresh water delivery system during Q3 2025 [5] - Capital expenditures totaled $51 million, a 9% decrease from the prior year, with investments focused on gathering, compression, and water infrastructure [5][16] - Low pressure gathering volumes averaged 3,432 MMcf/d, a 5% increase year-over-year, while compression volumes averaged 3,421 MMcf/d, also a 5% increase [10][11] Share Repurchase and Debt Management - Antero Midstream repurchased 2.3 million shares for $41 million during Q3 2025, with approximately $385 million remaining under its $500 million share repurchase program [4][6] - The company reduced its total debt to $3.03 billion as of September 30, 2025, down from $3.19 billion the previous year [26][29] Strategic Initiatives - The company is focusing on additional well connections and fresh water delivery for its 2026 development plan, including a new dry gas pad in the Marcellus Shale [8][9] - Antero Resources, a key partner, completed approximately $260 million in acquisitions in the Marcellus Shale, enhancing Antero Midstream's operational capacity [9]

Core Insights - The Oil/Energy sector experienced mixed market dynamics in Q3 2025, with crude oil prices declining due to oversupply and economic uncertainties, while natural gas prices rose due to tighter supply and geopolitical factors [1][3][4] Market Dynamics - Crude oil prices averaged $65.74 per barrel, a 14% decrease from $76.24 in Q3 2024, primarily due to an oversupply as OPEC+ increased production by 1.3 million barrels per day [3] - Contributing factors to the oil price drop included trade disputes between the U.S. and China, renewed tariff threats from India, lower industrial demand, and U.S. policies aimed at controlling energy costs [3] - In contrast, natural gas prices averaged $3.03 per million British thermal units (MMBtu), a 44% increase from $2.11 per MMBtu in Q3 2024, driven by tight supply conditions and geopolitical instability, particularly the Israel-Iran conflict [4] Earnings Performance - The energy sector is expected to see a 6.4% decline in earnings year-over-year, lagging behind the S&P 500's growth of 7.3% [5][9] - Early results from 12.5% of energy companies reporting indicate that 66.7% exceeded EPS forecasts, but the sector still struggles with weak revenue growth [5] - Excluding the energy sector, the S&P 500's earnings growth rises to 8%, highlighting the sector's underperformance [6] Sector Comparison - The energy sector's challenges are starkly contrasted with other sectors, such as Aerospace (+248.6%), Finance (+23.4%), and Technology (+11.5%), which are experiencing significant growth [7] Investment Focus - Investors are advised to focus on companies demonstrating operational efficiency, cost control, and strategic positioning, particularly those with strengths in natural gas [8]

Core Insights - The article emphasizes the importance of in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] Group 1 - The article took a considerable amount of time to prepare due to the complexity and numerous thoughts surrounding the topic [1] - The author has a beneficial long position in the shares of AR and AM, indicating a personal investment interest [1]

Group 1 - The article emphasizes the importance of in-depth research on various income alternatives, including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting the value of joining iREIT on Alpha for comprehensive insights [1] - It mentions that 2025 is expected to be a significant year for important developments, indicating a focus on macroeconomic trends and their implications for investment strategies [1] Group 2 - The article does not provide specific financial data or performance metrics related to companies or industries [2]

Core Insights - Antero Midstream Corp. is set to report its Q3 2025 earnings on October 29, with analysts expecting an EPS of $0.29, an increase from $0.23 in the same period last year, and quarterly revenue projected at $289.95 million, up from $269.87 million year-over-year [2] Financial Performance - In Q2 2025, Antero Midstream reported adjusted EPS of $0.29, exceeding the consensus estimate of $0.24, and revenues of $305.47 million, surpassing the consensus of $291.51 million [3] - The company gathered 3.5 Bcf/d of production during the quarter, marking a 6% year-over-year increase and setting a new company record [4] Market Position and Growth - The growth in production aligns with significant demand growth from U.S. Gulf Coast LNG facilities and natural gas-fired power demand driven by data center expansion in Appalachia [4] - Antero Midstream is positioned as a critical link in delivering gas to LNG and power demand, indicating strong future growth opportunities [4] Dividend Information - Antero Midstream has a dividend yield of 4.89%, having paid $0.90 per share in dividends over the last 12 months [2] - To generate an income of $100 per month from dividends, an investment of approximately $24,540 is required, based on the current dividend yield [5][6]