- 4 Dividend Energy Stocks to Buy in May
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The energy sector is the top performer this year, but investors shouldn't forget the group's attractive dividend profile.
- Antero Midstream Q1 Earnings Miss Estimates, Revenues Increase Y/Y
May 4, 2026
Antero Midstream AM reported first-quarter 2026 earnings per share of 25 cents, missing the Zacks Consensus Estimate of 26 cents by 3.9%. Earnings were in line with the year-ago quarter’s level of 25 cents.
Total quarterly revenues of $314.21 million beat the Zacks Consensus Estimate of $300.07 million by 4.7%. The top line also improved 7.9% from $291.13 million in the year-ago quarter. Full capacity utilization in processing and fractionation underscored robust demand despite inflationary cost pressures.
The lower-than-expected quarterly earnings can be attributed to an increase in total operating expenses. However, higher gathering and compression volumes partially offset the negatives.
Antero Midstream Corporation Price, Consensus and EPS SurpriseAntero Midstream Corporation Price, Consensus and EPS Surprise
Antero Midstream Corporation price-consensus-eps-surprise-chart | Antero Midstream Corporation Quote
AM's Revenue Mix Improved on Gathering Strength
Gathering and centralized compression revenues rose to $262.00 million from $238.02 million a year ago, driven by higher throughput. Total average daily gathering volumes increased 14% year over year to 3,805 million cubic feet (MMcf/d) from 3,348 MMcf/d, reflecting continued activity on AM’s dedicated acreage. The reported figure was above our estimate of 3,361 MMcf/d. On a per-Mcf basis, the average gathering fee increased 3% from 36 cents a year ago to 37 cents.
High-pressure gathering volumes totaled 3,133 MMcf/d, up 1% from the year-ago level of 3,106 MMcf/d. Our estimate for the same was 3,185 MMcf/d. On a per-Mcf basis, the average high-pressure gathering fee was 23 cents, which remained flat year over year. The reported figure met our estimate of 23 cents.
Centralized compression volumes averaged 3,370 MMcf/d compared with 3,330 MMcf/d a year ago. The figure was below our estimate of 3,400 MMcf/d. On a per-Mcf basis, the average centralized compression fee was 23 cents, which remained flat year over year. The reported figure met our estimate of 23 cents.
Antero Midstream's Water Handling Mix Shifted Sharply
Fresh water delivery volumes averaged 83 MBbl/d, down 21% from 105 MBbl/d in the prior-year quarter, pointing to a different cadence of completion activity on the legacy system. The figure was below our estimate of 106 MBbl/d. On a per-barrel basis, the average realized fresh water delivery fee was $4.44 compared with $4.38 a year ago, reflecting annual CPI-based adjustments embedded in the contracts. The figure was above our estimate of $4.39.
Other water handling volumes jumped to 93 MBbl/d from 58 MBbl/d, a 60% increase year over year. This category includes services on acreage acquired from HG Production as well as other fluid-handling work charged under cost-plus arrangements, helping explain the sharp shift in the water mix during the quarter. The figure was above our estimate of 61 MBbl/d.
Story Continues
AM's Operating Expenses Rose as the Quarter Stayed Busy
Total operating expenses increased to $125.60 million from $113.91 million in the prior-year quarter. Direct operating expenses climbed to $70.70 million from $56.83 million a year ago.
Below the operating line, interest expense, net, increased to $54.03 million from $48.41 million in the year-ago quarter, which management tied to financing associated with the HG Energy acquisition. The quarter also included $8.69 million of transaction expenses related to the HG Midstream acquisition, contributing to the earnings shortfall versus the Zacks estimate despite the revenue beat.
Antero Midstream's Cash Flow Covered Dividends & Buybacks
Operating cash flow increased in the first quarter of 2026 with net cash provided by operating activities of $238.62 million compared with $198.94 million in the year-ago quarter. On a non-GAAP basis, adjusted free cash flow after dividends was $85.28 million, up from $79.06 million a year ago.
AM reported capital expenditures of $42 million during the quarter, including $26 million for gathering and compression and $15 million for water infrastructure. The company also repurchased 1.0 million shares for $18 million and ended the quarter with about $318 million of remaining capacity under its repurchase authorization, keeping capital return in focus alongside growth investments.
Balance Sheet of AM
As of March 31, 2026, the company had a long-term debt of $3.67 billion with no cash and cash equivalent in hand.
AM Targets Integration Milestones and New Demand Projects
Management highlighted that the newly acquired assets were integrated during Winter Storm Fern with no service interruptions. Commissioning of the dry gas compression expansion is complete and integration of the water systems is underway, with full completion expected by year-end.
Looking ahead, the company is capitalizing on local power and data center opportunities to drive future growth. Work has already begun on the HG assets integration, focusing specifically on water systems. Management expects to deliver high single-digit EBITDA growth in the coming days, driven by enhanced connectivity and active development across rich gas, dry gas and blended areas.
AM’s Zacks Rank & Key Picks
AM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Chevron Corporation CVX, Kinder Morgan, Inc. KMI and Eni S.p.A. E. CVX, KMI and E each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
Kinder Morgan reported first-quarter 2026 adjusted earnings per share (EPS) of 48 cents, which beat the Zacks Consensus Estimate of 38 cents.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.
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- Antero Midstream Q1 Earnings Miss Estimates, Revenues Increase Y/Y
May 4, 2026 · zacks.com
AM's Q1 revenues top estimates on strong volumes, but rising costs weigh on earnings despite robust gathering and compression growth.
- Reddit Upgraded, Spotify Downgraded: Updated Rankings on Top Blue-Chip Stocks
May 4, 2026
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 123 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
This Week’s Ratings Changes:
Upgraded: Strong to Very Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AM Antero Midstream Corp. A C A DAR Darling Ingredients Inc A B A ET Energy Transfer LP A C A ETR Entergy Corporation A C A FTAI FTAI Aviation Ltd. A C A GOOGL Alphabet Inc. Class A A B A IMO Imperial Oil Limited A C A PAA Plains All American Pipeline, L.P. A C A POWL Powell Industries, Inc. A B A RIO Rio Tinto plc Sponsored ADR A C A SANM Sanmina Corporation A B A TEVA Teva Pharmaceutical Industries Limited Sponsored ADR A B A TTE TotalEnergies SE A B A VTR Ventas, Inc. A C A
Downgraded: Very Strong to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AEM Agnico Eagle Mines Limited A B B APG APi Group Corporation A C B ATI ATI Inc. A B B AU Anglogold Ashanti PLC A C B EQT EQT Corporation B B B KLAC KLA Corporation A C B RGC Regencell Bioscience Holdings Ltd. A C B VIV Telefonica Brasil SA Sponsored ADR A B B WPM Wheaton Precious Metals Corp B B B
Upgraded: Neutral to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BEN Franklin Resources, Inc. B B B DDOG Datadog, Inc. Class A B C B FMX Fomento Economico Mexicano SAB de CV Sponsored ADR Class B B B B GD General Dynamics Corporation B C B ILMN Illumina, Inc. B C B LIN Linde plc B C B LLY Eli Lilly and Company C B B LMT Lockheed Martin Corporation B C B NTRA Natera, Inc. B C B O Realty Income Corporation B C B PKX POSCO Holdings Inc. Sponsored ADR B C B RDDT Reddit, Inc. Class A C B B ROKU Roku, Inc. Class A B B B TFII TFI International Inc. B C B TXT Textron Inc. B C B
Downgraded: Strong to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AWK American Water Works Company, Inc. B D C BALL Ball Corporation C C C BCH Banco de Chile Sponsored ADR B C C BIP Brookfield Infrastructure Partners L.P. B D C BSBR Banco Santander (Brasil) S.A. Sponsored ADR C B C CEG Constellation Energy Corporation B D C CHT Chunghwa Telecom Co., Ltd Sponsored ADR C C C CINF Cincinnati Financial Corporation C B C CVNA Carvana Co. Class A C B C DLR Digital Realty Trust, Inc. C B C DLTR Dollar Tree, Inc. C B C DOV Dover Corporation C C C EXC Exelon Corporation B C C FUTU Futu Holdings Ltd. Sponsored ADR Class A C B C HLT Hilton Worldwide Holdings Inc. B C C IHG InterContinental Hotels Group PLC Sponsored ADR C C C KNX Knight-Swift Transportation Holdings Inc. Class A B D C MAR Marriott International, Inc. Class A B D C ONTO Onto Innovation, Inc. B D C REGN Regeneron Pharmaceuticals, Inc. C C C RGLD Royal Gold, Inc. B C C SPG Simon Property Group, Inc. C B C TRV Travelers Companies, Inc. C B C WM Waste Management, Inc. C C C
Upgraded: Weak to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AFRM Affirm Holdings, Inc. Class A D B C AXP American Express Company D C C BLK BlackRock, Inc. D C C CNC Centene Corporation C B C EG Everest Group, Ltd. D C C F Ford Motor Company D B C IEX IDEX Corporation C C C MDLZ Mondelez International, Inc. Class A D C C OMC Omnicom Group Inc C C C PAG Penske Automotive Group, Inc. C C C PSA Public Storage D C C PSKY Paramount Skydance Corporation Class B C D C PSO Pearson PLC Sponsored ADR D C C QCOM QUALCOMM Incorporated C B C RCL Royal Caribbean Group D C C SBUX Starbucks Corporation C B C TROW T. Rowe Price Group, Inc. C C C UL Unilever PLC Sponsored ADR D C C UNH UnitedHealth Group Incorporated C C C UNM Unum Group D C C XYZ Block, Inc. Class A C C C
Downgraded: Neutral to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade ALLE Allegion Public Limited Company D C D APTV Aptiv PLC D C D DB Deutsche Bank Aktiengesellschaft D C D DHI D.R. Horton, Inc. D C D ECL Ecolab Inc. D C D FTV Fortive Corp. D C D HBAN Huntington Bancshares Incorporated D C D HLN Haleon PLC Sponsored ADR D C D HOOD Robinhood Markets, Inc. Class A D C D ICE Intercontinental Exchange, Inc. D B D MSCI MSCI Inc. Class A D C D PFGC Performance Food Group Co D C D PHG Koninklijke Philips N.V. Sponsored ADR D B D PHM PulteGroup, Inc. D D D SPOT Spotify Technology SA F B D SUI Sun Communities, Inc. D D D VRTX Vertex Pharmaceuticals Incorporated D C D WY Weyerhaeuser Company D B D
Upgraded: Very Weak to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AVB AvalonBay Communities, Inc. F C D CRBG Corebridge Financial, Inc. F C D CSGP CoStar Group, Inc. F B D DEO Diageo plc Sponsored ADR F C D FICO Fair Isaac Corporation F C D KHC Kraft Heinz Company F D D PAYX Paychex, Inc. F C D TEAM Atlassian Corp Class A F B D
Downgraded: Weak to Very Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BR Broadridge Financial Solutions, Inc. F C F CDW CDW Corporation F C F CHKP Check Point Software Technologies Ltd. F C F CTSH Cognizant Technology Solutions Corporation Class A F C F EQR Equity Residential F D F GDDY GoDaddy, Inc. Class A F C F GPN Global Payments Inc. F D F HD Home Depot, Inc. F C F MKL Markel Group Inc. F D F NOW ServiceNow, Inc. F C F NVR NVR, Inc. F D F PGR Progressive Corporation F C F SYK Stryker Corporation F C F UBER Uber Technologies, Inc. F C F
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- Antero Midstream’s Record US$1.1b Deal Reframes Growth And Risk Profile
May 1, 2026
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Antero Midstream (NYSE:AM) has completed a record US$1.1b acquisition, described as the largest in the company’s history. The acquired assets have been integrated ahead of schedule under challenging conditions. The company is working to link its existing water system with the new assets, with services targeted to start in 2027.
Antero Midstream focuses on midstream energy infrastructure and water services that support upstream production activity. For you as an investor, the completion and integration of a US$1.1b deal in this space relates to how the company is positioning its asset base within the broader energy value chain. The update on water system expansion and timing for 2027 service provides additional detail on how these assets may be used operationally.
The 2027 water system timeline offers a specific reference point for when the new configuration of assets might be fully operational. As you track NYSE:AM, this kind of dated project milestone can help you frame expectations around capital deployment, potential future throughput and how management is sequencing projects alongside its existing system.
Stay updated on the most important news stories for Antero Midstream by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Antero Midstream.NYSE:AM Earnings & Revenue Growth as at May 2026
We've flagged 2 risks for Antero Midstream. See which could impact your investment.
This acquisition lands on top of a quarter where revenue was US$314.21 million and net income was US$118.27 million, with basic EPS from continuing operations at US$0.25, in line with a year ago. Management also reported adjusted EBITDA of US$288 million and free cash flow growth, while keeping liquidity and leverage metrics described as strong. For you, the key link is that the US$1.1b deal is being layered onto a business already producing cash and reporting a 5% year over year increase in adjusted EBITDA, driven by higher gathering, compression, and processing volumes.
How This Fits Into The Antero Midstream Narrative
The acquisition and integrated water system project align with the idea that higher LNG demand, industrial activity, and data centers can support greater utilization of midstream assets and fee based revenue. Rising capex for the 2027 water service and acquisition related spending could test the narrative that efficiency projects and free cash flow will support debt reduction and buybacks. The specific opportunity from data centers and local power projects tied to this new asset package, and how that flows into long term contracts, is not fully spelled out in the existing narrative.
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Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Antero Midstream to help decide what it is worth to you.
The Risks and Rewards Investors Should Consider
⚠️ Analysts have flagged that Antero Midstream carries a high level of debt, which can matter more as capex rises with the water system expansion. ⚠️ The dividend yield has been flagged as not well covered by earnings, so additional capital needs from acquisitions and projects may increase pressure on payout sustainability. 🎁 Earnings are forecast in the risk reward data to grow 15.04% per year, which some investors may see as supportive if integration allows volumes to scale over this new asset base. 🎁 The company is indicated as trading at 62.8% below one fair value estimate, which some investors interpret as providing a margin of safety if the acquisition plan and water project progress as outlined.
What To Watch Going Forward
From here, focus on how quickly the acquired assets contribute to reported volumes, EBITDA and free cash flow, and whether leverage metrics remain within management’s stated comfort range. It can also help to compare Antero Midstream with peers such as Kinder Morgan, Williams Companies, or MPLX to see how capital spending, debt levels, and contract structures stack up. Progress on linking the existing and acquired water systems through 2026, plus any updates on demand from data centers and local power projects, will be key markers for how this US$1.1b deal translates into long term throughput and cash generation.
To ensure you are always in the loop on how the latest news impacts the investment narrative for Antero Midstream, head to the community page for Antero Midstream to never miss an update on the top community narratives.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AM.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Antero Midstream Corp (AM) Q1 2026 Earnings Call Highlights: Strategic Acquisitions and Robust ...
May 1, 2026
This article first appeared on GuruFocus.
Adjusted EBITDA: $288 million, a 5% increase year over year. Free Cash Flow Before Dividends: $192 million. Free Cash Flow After Dividends: $85 million, an 8% increase year over year. Leverage: Exited the quarter with leverage in the low 3 times range. Liquidity: Over $800 million. Acquisition: Completed a $1.1 billion acquisition.
Warning! GuruFocus has detected 5 Warning Signs with INVH. Is AM fairly valued? Test your thesis with our free DCF calculator.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Antero Midstream Corp (NYSE:AM) reported a 5% year-over-year increase in adjusted EBITDA, reaching $288 million, driven by increased gathering, compression, and processing volumes. The company successfully navigated adverse winter weather conditions without experiencing any outages, highlighting the benefit of integrated planning and communication between upstream and midstream businesses. Antero Midstream Corp (NYSE:AM) closed its largest acquisition to date ahead of initial expectations, demonstrating effective execution of strategic initiatives. The company generated $192 million of free cash flow before dividends and $85 million after dividends, marking an 8% increase year over year. Antero Midstream Corp (NYSE:AM) maintained a strong balance sheet with leverage in the low 3 times range and over $800 million of liquidity, even after a $1.1 billion acquisition and share repurchases.
Negative Points
The integration of newly acquired assets requires significant capital investment, with $25 million needed to fully integrate the acquired HG assets. Antero Midstream Corp (NYSE:AM) anticipates an increase in capital expenditures in the coming quarters, which could impact short-term cash flow. The company's growth projections are heavily reliant on the successful integration of the water system and the execution of local demand projects, which may pose operational challenges. There is uncertainty regarding the timeline and potential returns from larger infrastructure projects, as the company did not provide specific metrics or timelines. The company's growth targets are contingent on Antero Resources' (AR) underlying growth, which introduces dependency on external factors beyond Antero Midstream Corp (NYSE:AM)'s control.
Q & A Highlights
Q: Can you discuss the opportunities for Antero Midstream (NYSE:AM) in the in-basin demand projects, such as Monarch? A: Michael Kennedy, President and CEO, explained that AM is involved in these projects as they require infrastructure like laterals off existing pipes and water systems. AM is the preferred builder due to its extensive experience in constructing infrastructure in Northern West Virginia, offering integrated development between upstream and midstream operations.
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Q: What is the timeline for supporting larger projects within the state? A: Michael Kennedy stated that the timeline would not be extensive, typically involving high-pressure builds over one to three years, rather than five years.
Q: Could you elaborate on the high-single-digit growth target and its implications for Antero Resources (AR)? A: Michael Kennedy noted that the high-single-digit growth is based on integrating the water system by 2027. If AR pursues additional rigs and completions, the growth could exceed high-single-digit EBITDA growth in 2027 and 2028.
Q: How much capital is needed to fully integrate the acquired HG assets, and how far along is the process? A: Michael Kennedy mentioned that approximately $25 million is needed, with the integration about halfway through. The water system integration is expected to be completed by year-end, with the gathering system already nearly integrated.
Q: Where do you see the most opportunity for incremental returns in the future? A: Michael Kennedy highlighted that future opportunities lie in data center and local power projects. The base business already delivers high returns, and incremental growth will stem from local demand projects and leveraging the relationship with AR.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- Antero Midstream: Expects High-Single Digits Adjusted EBITDA Growth In 2027 And 2028
Apr 30, 2026 · seekingalpha.com
Antero Midstream generated $288 million in Q1 2026 adjusted EBITDA with a partial quarter contribution from its HG Midstream acquisition. It expects roughly $309 million per quarter in adjusted EBITDA during the rest of the year. Future growth results in a projected $1.4 billion in 2028 adjusted EBITDA in a base case scenario and $1.5 billion in an upside scenario.
- Antero Midstream (AM) Q1 2026 Earnings Transcript
Apr 30, 2026
Image source: The Motley Fool.
DATE
Thursday, April 30, 2026 at 12 p.m. ET
CALL PARTICIPANTS
Chief Financial Officer — Michael Kennedy President — Justin Agnew Chief Executive Officer — Dan Katzenberg
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Full Conference Call Transcript
Michael Kennedy: Thanks, Dan. Good morning, everyone. I will start my comments on Slide three. The first quarter of 2026 was an exciting quarter for Antero Midstream Corporation as we continued to make progress on our strategic initiatives. We successfully navigated adverse winter weather conditions and delivered another quarter of EBITDA and free cash flow growth. In addition, we closed the company's largest acquisition to date in February, which was ahead of our initial expectations. These achievements highlight two of Antero Midstream Corporation's greatest strengths: a world-class asset base in the lowest-cost basin in North America and the hard work and dedication from our team.
As we look ahead, recent geopolitical events and data center announcements highlight the significant demand growth for U.S. energy both domestic and abroad. Given this outlook, we are focused on enhancing connectivity within our operating areas, particularly in the dry gas area and the newly acquired assets, providing cost-effective integrated solutions for this demand growth. Our balance sheet, scale, and integrated planning with our investment-grade producer position us well to capitalize on these growth opportunities. Now let us move on to Slide four to highlight some of our 2026 growth projects. At the end of the first quarter, we commissioned our dry gas compression expansion depicted on the right-hand side of the page.
This station utilized relocated and repurposed units to support our first dry gas Marcellus pad in over a decade. During the first quarter, we also commenced our initial water system integration efforts. This capital investment to connect Antero Midstream Corporation's water system to the acquired water system is on track to be completed by year-end and will allow AM to begin servicing completions on the acquired assets in 2027. Today, there are currently three rigs running on AM-dedicated acreage on the rich gas system, one in the dry gas system, and one on the acquired blended system. This balanced and consistent development program delivers low-cost volume growth and is expected to drive high-single-digit EBITDA growth for the foreseeable future.
In summary, we are off to a great start in 2026 executing our capital-efficient growth plan. Beyond our base business, we continue to be active in opportunities to further extend and enhance that growth outlook to support the increasing demand for natural gas. With that, I will turn the call over to Justin.
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Justin Agnew: Thanks, Mike. I will start with our first quarter highlights on Slide five. During the first quarter, we took over operations of our newly acquired assets right in the middle of winter [inaudible]. As you can see from our results, we did not experience any outages during the storm, highlighting the benefit of integrated planning and communication between the upstream and midstream businesses. Adjusted EBITDA for the first quarter was $288 million, which was a 5% increase year-over-year, driven by an increase in gathering, compression, and processing volumes. During the quarter, we generated $192 million of free cash flow before dividends and $85 million of free cash flow after dividends, which was an 8% increase year-over-year.
This cash flow was used to finance a portion of the acquisition and opportunistically repurchase shares on the open market. Importantly, even after a $1.1 billion acquisition and share repurchases, we exited the quarter with leverage in the low three-times range and over $800 million of liquidity. Looking ahead to the next few quarters, we expect an increase in capital expenditures as we take advantage of improved construction season conditions, in line with our full-year budget. In addition, we expect to see gradual EBITDA growth throughout the year driven by increasing gathering and freshwater delivery volumes. This cash flow profile results in declining leverage throughout the year towards 3.0 times at year-end 2026, in line with our long-term target.
In summary, we continue to build on the growth and momentum from our organic investments and accretive acquisitions. These results place us on track to achieve our 2026 guidance, which remains unchanged, and position us well for capital-efficient growth over the next several years. With that, operator, we are ready to take questions.
Operator: Thank you. We will now open the call for questions. At this time, we will conduct our question and answer session. Our first question comes from John Mackay with Goldman Sachs. Please state your question.
John Mackay: Hey, guys. Thank you for the time. Maybe we will start on the in-basin demand side of things. There are a couple of projects floating around, a lot of eyeballs on Monarch, etcetera. I know you guys are saying it is kind of too early; you touched on this in the AR call as well. But do you mind framing up what you could see the opportunity set for AM looking like here, and if you want to use a generic kind of EBITDA per gigawatt or anything like that, just frame up how you are thinking about the AM side of things here?
Michael Kennedy: We are not going to use a generic metric there, but AM is participating in all of those because the vast majority of these need some infrastructure—laterals off existing pipe that Brendan talked about, water infrastructure build-out from the existing infrastructure—and AM has a seat at the table in all those discussions. As I mentioned, we are the industrial builder of Northern West Virginia. We built all of this infrastructure. It has all been a greenfield expansion for us across gathering, compression, processing, and water as we built out the whole system here. So we are the builder of choice, and that is part of the attraction of what AR and AM bring.
It is an integrated development between upstream and midstream. We have the resource, and we have the ability to build the infrastructure.
John Mackay: Maybe just to clarify, any sense you could give on how long of a timeline would be needed to support a larger project?
Michael Kennedy: We are mainly talking about everything in-state, so it would not be that long of a timeline. It would be our typical kind of high-pressure build in year one to two to three, not five years out.
John Mackay: Great. And then second question for me: You mentioned the high-single-digit growth target. Could you frame that up a little bit around what that implies for AR's underlying growth? AR came out with a higher growth pace on the last quarter call. Just trying to figure out where that shakes out and then what the AM algorithm off that is. Thanks.
Michael Kennedy: That is off the base business. You get to the high single digit just from integrating the water system in 2027, so just servicing AR from a water perspective gets you that high single digit. If AR actually does pursue three rigs and two completions crews and does not build DUCs and actually completes those, you would be in excess of that high-single-digit EBITDA growth in 2027 and 2028.
John Mackay: I appreciate that. Thank you.
Michael Kennedy: Thank you.
Operator: Your next question comes from Ivan Scotto with UBS. Please state your question.
Ivan Scotto: Hi, team. Thanks for taking the question. I wanted to ask for any additional color you have on how much capital is needed to fully integrate the acquired HG assets, and also how far along that process you think you are at this point?
Michael Kennedy: I think it is $25 million, and we are probably halfway through. I mentioned that the water system, which we cemented in the first quarter, will be done by year-end. The gathering system, which was almost all already integrated, I think it was $5 million to connect that. So it is really around the water, and we are in the midst of it and should be completed by year-end.
Ivan Scotto: Okay. Great. And then just looking forward, where do you feel most of your opportunity set is for incremental returns in the future?
Michael Kennedy: I would say around these data center local power projects. Our base business delivers very high rates of return; it is in the high teens to 20% return on invested capital in the base, and we have that fully mapped out. We have built the whole backbone of the system—the whole water pipes and the large gathering system that we have—so the incremental returns will be building off of that and building off of our relationship with AR and our own ability to build industrial projects in Northern West Virginia. That is the next leg.
The base is terrific, with high-single-digit EBITDA growth that we have had for quite some time and will continue going forward, but incremental growth and returns from that will be from these local demand projects.
Operator: Thank you. There appear to be no additional requests for questions at this time. I will hand the floor back to our management team for closing remarks. Thank you.
Dan Katzenberg: Thank you for joining us on today's earnings conference call. Feel free to reach out with any further questions. Have a good day.
Operator: Thank you. That concludes today's call. All parties may disconnect.
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Antero Midstream (AM) Q1 2026 Earnings Transcript was originally published by The Motley Fool
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- Antero Midstream Corporation (AM) Q1 2026 Earnings Call Transcript
Apr 30, 2026 · seekingalpha.com
Antero Midstream Corporation (AM) Q1 2026 Earnings Call Transcript
- Antero Midstream: I Like Everything But The Price (Rating Downgrade)
Apr 30, 2026 · seekingalpha.com
Antero Midstream now guides for single-digit growth. AM's stock price has risen substantially since 2020. That rise has pushed valuation metrics, including a P/E ratio nearing 20, to uncomfortable highs. Current pricing exposes investors to downside risk relative to historical valuation norms.
