Core Viewpoint - The market is currently favoring growth stocks over value stocks despite economic indicators suggesting a preference for value investments. This trend is expected to shift as the market reassesses the potential of midstream companies like Antero Midstream, which is seen as undervalued with strong fundamentals and high yield potential [1][2][25]. Company Overview - Antero Midstream operates as a C-Corp and has a unique position in the midstream sector, primarily serving Antero Resources, which has low breakeven costs and significant reserves in the Appalachian Basin [10][12]. - The company has a robust infrastructure with over 400 miles of low-pressure pipelines and 230 miles of high-pressure pipelines, positioning it well for future growth [12]. Financial Performance - Antero Midstream reported a record-breaking free cash flow of $182 million before dividends, with post-dividend free cash flow reaching $74 million, marking a significant improvement in financial health [18][21]. - The company has reduced its net leverage ratio from 3.3x to 3.1x, indicating a stronger balance sheet and the ability to support its dividend and growth initiatives [20][21]. Dividend and Shareholder Value - Antero Midstream currently offers a dividend yield of 6.3%, with expectations for dividend growth as the company approaches its leverage target of 3.0x [22][25]. - Analysts project that the company could generate $700 million in free cash flow next year, allowing for substantial shareholder distributions through dividends and buybacks [22][25]. Market Position and Outlook - The natural gas market is expected to see a 25% increase in demand by 2050, with Antero Midstream positioned to benefit from this growth due to its strategic assets and relationships [6][10]. - The company is trading at a blended P/OCF ratio of 8.5x, below its historical average, suggesting significant upside potential as the market recognizes its value [22][23].

Antero Midstream Corporation (NYSE:AM) Q1 2024 Results Conference Call April 25, 2024 12:00 PM ET Company Participants Justin Agnew - Vice President of Finance and Investor Relations Paul Rady - Chairman, CEO and President of Antero Resources and Antero Midstream Brendan Krueger - CFO of Antero Midstream Michael Kennedy - CFO of Antero Resources and Director of Antero Midstream Conference Call Participants Naomi Marfatia - UBS John Mackay - Goldman Sachs Zack Van Everen - TPH & Company Ned Baramov - Wells F ...

Antero Midstream (AM) reported first-quarter 2024 adjusted earnings per share of 24 cents, in line with the Zacks Consensus Estimate. The bottom line improved from the year-ago quarter’s level of 21 cents.Total quarterly revenues of $279 million surpassed the Zacks Consensus Estimate of $274 million. The top line also increased from $259.5 million recorded in the year-ago quarter.The in-line earnings were driven by higher compression volumes and increased gathering volumes.Operational PerformanceIn the firs ...

Exhibit 99.1 Antero Midstream Announces First Quarter 2024 Financial and Operating Results Denver, Colorado, April 24, 2024—Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today announced its first quarter 2024 financial and operating results. The relevant unaudited condensed consolidated financial statements are included in Antero Midstream's Quarterly Report on Form 10-Q for the three months ended March 31, 2024. First Quarter 2024 Highlights: · Gathering and processing volum ...

Revenue Performance - Total revenues for the three months ended March 31, 2024, were $279.051 million, compared to $259.475 million for the same period in 2023, representing a 7.5% increase [131]. - Revenue from Antero Resources increased to $227.593 million in Q1 2024 from $211.576 million in Q1 2023, a growth of 7.6% [134]. - Total revenues increased by 8%, from $259 million for the three months ended March 31, 2023 to $279 million for the three months ended March 31, 2024 [136]. - Gathering and processing revenues increased by 15%, from $190 million to $218 million during the same period [136]. - Low pressure gathering revenue increased by $19 million due to lower growth incentive fee rebates and increased throughput volumes of 15 Bcf, or 130 MMcf/d [137]. - Fresh water delivery revenue decreased by $2 million primarily due to decreased delivery volumes of 1 MMBbl, or 10 MBbl/d [140]. - Equity in earnings of unconsolidated affiliates increased by 13%, from $24 million to $28 million [144]. - Net cash provided by operating activities increased from $183 million to $211 million [149]. Operating Income and Expenses - Operating income for the gathering and processing segment was $154.025 million in Q1 2024, up from $134.186 million in Q1 2023, reflecting a 14.8% increase [134]. - Operating expenses for the three months ended March 31, 2024, totaled $112.800 million, compared to $111.130 million for the same period in 2023, a slight increase of 1.5% [134]. - Direct operating expenses decreased by 7%, from $58 million to $54 million [141]. - Capital expenditures totaled $29.8 million for the three months ended March 31, 2024, down from $33.6 million in the same period of 2023 [152]. - The company announced a capital budget for 2024 ranging from $150 million to $170 million to support maintenance capital programs [151]. Net Income and Shareholder Returns - Net income for the three months ended March 31, 2024, was $103.926 million, compared to $86.507 million for the same period in 2023, indicating a 20.2% increase [134]. - A cash dividend of $0.2250 per share was declared for the quarter ended March 31, 2024 [147]. - A share repurchase program was authorized on February 13, 2024, allowing the company to repurchase up to $500 million of its common stock [125]. Financial Position and Debt - The company issued $600 million of 2032 Notes on January 16, 2024, to repay outstanding borrowings on the Credit Facility [124]. - As of March 31, 2024, the company had no borrowings or letters of credit outstanding under the Credit Facility [158]. - A 1.0% increase in the Credit Facility interest rate would result in an estimated increase in interest expense of less than $1 million for the three months ended March 31, 2024 [158]. Market Conditions and Risks - 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% from March 2022 to March 2024, impacting the company's financial condition [127]. - The company is highly dependent on Antero Resources, expecting to derive substantially all revenues from them for the foreseeable future [159]. - Any adverse events affecting Antero Resources' production or financial condition could negatively impact the company's revenues and operating results [160]. - The company faces risks of non-payment or non-performance by Antero Resources under their agreements [160]. Segment Information - The company operates two reportable segments: gathering and processing, and water handling, with significant contributions from both segments to overall revenues [129]. - The company has fixed-fee and cost of service fee structures in agreements with Antero Resources to mitigate commodity price risk [157].

Core Viewpoint - Antero Midstream Corporation (AM) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Antero Midstream indicates expected earnings of $0.98 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 27.3% [5]. - Over the past three months, the consensus estimate has risen by 0.8%, showcasing a trend of increasing earnings estimates [5]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to assess fair value [3][4]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. Positioning in the Market - The upgrade to Zacks Rank 1 places Antero Midstream in the top 5% of Zacks-covered stocks, suggesting potential for stock price appreciation in the near term [7].

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Antero Midstream Corporation (AM) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.Antero Midstream Corporation is one of 251 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Z ...

Antero Midstream Corporation (AM) has witnessed upward earnings estimate revisions for 2024 in the past 60 days.The company, currently carrying a Zacks Rank #3 (Hold), beat the Zacks Consensus Estimate for earnings in the trailing four quarters, delivering a surprise of 11.1% on average.Sustained Earnings GrowthAntero Midstream has shown consistent earnings growth, with an 18% compound annual growth rate in EBITDA from 2014 to 2023, and is guiding to a mid-point of $1.04 billion of EBITDA for 2024. The comp ...

onurdongel Finally, after several years of the same dividend, Antero Midstream (NYSE:AM) management "let the cat out of the bag". It is finally time to put a dividend increase up for discussion in the future. Management still wants to get that debt ratio below 3.0. That is extremely conservative for a midstream company. However, captive midstream companies are typically run conservatively. In the meantime, management forecasts steady growth as parent company Antero Resources (AR) waits for more export capac ...

A month has gone by since the last earnings report for Antero Midstream Corporation (AM) . Shares have added about 8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Antero Midstream Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Antero Midstream Q4 Ear ...