Company Overview - Antero Midstream Corporation is a leading midstream energy company that operates an integrated infrastructure network providing essential gathering, processing, and water services to natural gas producers in the Appalachian Basin [9] - The company primarily generates revenue from gathering pipelines, compressor stations, and water handling facilities, focusing on supporting Antero Resources' production in West Virginia and Ohio [8] Recent Developments - Ripple Effect Asset Management disclosed a new position in Antero Midstream, acquiring 510,000 shares valued at approximately $9.91 million, which represents 1.94% of the firm's 13F reportable assets [2][3][6] - As of the latest filing, Antero Midstream shares were priced at $17.94, reflecting a 16% increase over the past year, aligning closely with the S&P 500's nearly 17% gain during the same period [4] Financial Performance - Antero Midstream reported a 10% year-over-year increase in adjusted EBITDA to $281 million, while free cash flow after dividends nearly doubled to $78 million [11] - The company's leverage declined to 2.7x, capital spending decreased, and it repurchased $41 million of stock during the quarter, indicating a strong cash flow position and a tightening balance sheet [11] Investment Strategy - The acquisition of both put and call options alongside common shares suggests an investor strategy aimed at engineering outcomes rather than merely collecting yield, which is notable for a midstream company typically viewed as a cash-flow vehicle [10] - The presence of put options indicates a strategy for downside protection against commodity or rate-driven volatility, while call options may enhance returns if market conditions improve [12]

Core Viewpoint - Ripple Effect Asset Management has initiated a significant new position in Antero Midstream Corporation, acquiring 510,000 shares valued at approximately $9.91 million, while also holding put and call options, indicating a strategic approach to risk-reward management [2][3][6]. Company Overview - Antero Midstream Corporation is a leading midstream energy company that provides essential gathering, processing, and water services to natural gas producers, primarily in the Appalachian Basin [5][8]. - The company reported a revenue of $1.25 billion and a net income of $472.42 million for the trailing twelve months (TTM), with a dividend yield of 5% [5]. Recent Performance - Antero Midstream's stock price was $17.94, reflecting a 16% increase over the past year, which is in line with the S&P 500's nearly 17% gain during the same period [4]. - The company's third-quarter results showed a 10% year-over-year increase in adjusted EBITDA to $281 million, with free cash flow after dividends nearly doubling to $78 million [9]. Investment Strategy - The combination of common shares with both put and call options suggests that investors are engineering specific outcomes rather than merely seeking yield, which is notable for a midstream company typically viewed as a cash-flow vehicle [6][10]. - The put options indicate a strategy for downside protection against volatility, while the call options suggest potential upside if market conditions improve [10].

Core Viewpoint - Long-term dividend stocks are generally more stable and provide consistent dividends due to their established nature and lower volatility compared to the broader market [1][2] Group 1: Waste Management - Waste Management Inc. is a significant player in the waste and recyclables collection industry, with a market capitalization exceeding $92 billion [4] - The company has a dividend yield of 1.40%, an annual dividend of $3.30, and a 22-year track record of increasing dividends, with a payout ratio of 48.96% [5] - In the second quarter of 2025, Waste Management reported a 19% year-over-year increase in revenue, alongside strong earnings per share (EPS) [6] - Operating expenses have decreased to less than 60% of revenue, contributing to a solid free cash flow projection of nearly $3 billion for the year [7] Group 2: Eversource Energy - Eversource Energy, a major utility provider in the northeast, has a dividend yield of 4.63% and an annual dividend of $3.01, but a high payout ratio of 129.18% [9] - The company managed to slightly increase its EPS to 96 cents, surpassing analyst expectations, and reaffirmed its full-year EPS guidance [10] - Eversource's revenue grew by 12% year-over-year, although it fell short of predictions, with a permanent rate increase in New Hampshire expected to provide stability [11] Group 3: Johnson & Johnson - Johnson & Johnson boasts a dividend yield of 3.00%, an annual dividend of $5.20, and an impressive 64-year history of dividend increases, with a payout ratio of 55.61% [12][13] - The company exceeded EPS predictions by 9 cents and revenue estimates by nearly $900 million in its mid-July earnings report [13] - Growth is driven by its innovative medicine business, particularly in oncology, with potential peak sales of $5 billion for its drug candidate TAR200 [14]