Antero Midstream Announces Third Quarter 2026 Financial and Operating Results

Litigation proceeds lifted the cash-flow outlook, while curtailments reduced throughput despite year-over-year gathering and compression growth.

Rhea-AI Summary

Antero Midstream (NYSE: AM) reported third-quarter 2026 net income of $393 million, with gathering and compression volumes rising year over year. Diluted earnings were $0.82 per share, up 242%. Adjusted net income was $134 million, or $0.28 per share, up 4% per share; adjusted EBITDA rose 3% to $291 million. These adjusted measures are non-GAAP.

Results included a $377 million litigation gain. Adjusted free cash flow after dividends was $449 million. The company raised its 2026 forecast for that measure by $370 million to $700–$760 million. Debt declined by over $400 million during the quarter, and leverage reached 2.8x at September 30. Capital spending was $51 million, in line with the prior-year quarter. Curtailments reduced quarterly throughput by approximately 10 Bcf; the company expects approximately 15–20 Bcf in the fourth quarter. Water-system integration remains expected by year-end.

20 points · 2 major

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 net income guidance increased $280 million at midpoint to $765–$815 million.
• Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted free cash flow guidance increased $370 million to $700–$760 million after dividends.
• Moderate pointNet income of $393 million delivered $0.82 diluted EPS, up 242% year over year.
• Moderate pointAdjusted net income of $134 million delivered $0.28 diluted EPS, up 4% year over year.
• Moderate pointAdjusted EBITDA rose 3% year over year to $291 million.
• Moderate pointGathering volumes increased 19% compared with the prior-year quarter.
• Moderate pointCompression volumes increased 17% compared with the prior-year quarter.
• Moderate point$377 million litigation gain contributed to quarterly earnings and adjusted free cash flow.
• Moderate pointAdjusted free cash flow after dividends reached $449 million, versus $77.804 million a year earlier.
• Moderate pointOperating cash flow reached $600.298 million, versus $212.836 million in the prior-year quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 interest expense guidance decreased $10 million at midpoint to $200–$220 million.
• Moderate pointDebt fell by over $400 million during the quarter.
• Moderate pointLeverage declined to 2.8x as of September 30, 2026.

7 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted free cash flow guidance increased $370 million to $1,125–$1,185 million before dividends.
• Minor pointShare repurchases totaled approximately $27 million for 1.3 million shares during the quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Two growth pads supported by commenced water operations are expected to drive additional throughput growth in 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Water-system integration is expected by year-end, connecting the acquired and legacy systems.
• Minor point. Forward-looking: it has not happened yet and may not happen.80 MMcf/d of additional compression capacity is expected in service in the fourth quarter of 2026.
• Minor pointEast Side Express construction continued on the company's first regional connectivity expansion project.
• Minor pointProcessing and fractionation capacity were both 100% utilized during the quarter.

Negative

• Moderate pointApproximately 10 Bcf of throughput was lost to curtailments during the third quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately 15–20 Bcf of fourth-quarter curtailments are expected by the company.
• Moderate pointFresh water delivery volumes fell 3% year over year to 89 thousand barrels per day.
• Moderate pointInterest expense increased 8% year over year to $51 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 current income tax expense guidance increased $15 million at midpoint to $10–$20 million.

6 minor points

• Minor pointCurrent income tax expense was $11.250 million, resulting from the litigation gain.
• Minor pointProperty and equipment impairment was $2.921 million, versus $167,000 in the prior-year quarter.
• Minor pointDebt extinguishment loss was $1.613 million, versus $1.313 million in the prior-year quarter.
• Minor pointLoss on long-lived assets was $1.158 million, versus none in the prior-year quarter.
• Minor pointAffiliate earnings declined to $27.950 million from $29.688 million in the prior-year quarter.
• Minor pointAffiliate distributions declined to $34.655 million from $37.365 million in the prior-year quarter.

News Explained

The company has spent about $27 million buying shares; the remaining $283 million is capacity, not completed repurchases.

Antero Midstream has commenced water operations to support two drilled-but-uncompleted growth pads, so service is now underway. The pads are expected to use the fresh-water system in the fourth quarter, with additional throughput expected in 2027; that throughput benefit remains prospective.

The company expects to place 80 MMcf/d of additional compression capacity in service in the fourth quarter, so that capacity is planned rather than operating today.

During the third quarter, the company repurchased 1.3 million shares for approximately $27 million; approximately $283 million of program capacity remained as of September 30, 2026.

Key Figures

Net income: $393 million; $0.82 per diluted share; +242% per share Adjusted Net Income: $134 million; $0.28 per diluted share; +4% per share Adjusted EBITDA: $291 million; +3% +5 more

Net income

$393 million; $0.82 per diluted share; +242% per share

Third quarter 2026 vs. prior-year quarter; includes a $377 million litigation gain

Adjusted Net Income

$134 million; $0.28 per diluted share; +4% per share

Third quarter 2026 vs. prior-year quarter

Adjusted EBITDA

$291 million; +3%

Third quarter 2026 vs. prior-year quarter

Litigation proceeds

$377 million

Clearwater litigation proceeds reflected in updated 2026 guidance

Adjusted Free Cash Flow before dividends guidance

$1,125 million-$1,185 million; +$370 million midpoint change

Updated 2026 guidance

Adjusted Free Cash Flow after dividends guidance

$700 million-$760 million; +$370 million midpoint change

Updated 2026 guidance

Fourth-quarter curtailments

15 to 20 Bcf

Company expectation for fourth quarter 2026

Share repurchases

1.3 million shares for approximately $27 million

Third quarter 2026

Previous Earnings Reports

1 past event · Latest: Oct 29

Same Type 1 event

1. Oct 29

   3Q earnings

   24h Move

   -0.2%

   Reported year-over-year growth in net income, Adjusted EBITDA and free cash flow after dividends.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measures, fractionation, senior notes, curtailments

4 terms

non-gaap financial measures financial

"Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow before and after dividends are non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

fractionation technical

"joint venture fractionation volumes averaged 40 MBbl/d"

Fractionation is the process of separating a complex biological or chemical material into its individual parts so each can be used, tested or sold separately; in healthcare this most often means splitting blood plasma into proteins like antibodies or albumin. For investors it matters because fractionation determines how much usable product a facility can make, the cost and regulatory hurdles of manufacturing, and the potential revenue and supply risks — like turning a raw ingredient into multiple sellable products, similar to refining crude oil into gasoline and other fuels.

senior notes financial

"reducing absolute debt by over $400 million during the quarter, calling our nearest maturity senior notes"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

curtailments technical

"expects approximately 15 to 20 Bcf of curtailments in the fourth quarter of 2026"

Curtailments are deliberate reductions, restrictions, or temporary stoppages of an activity, operation, service, or financial obligation imposed by a company, regulator, or other controlling party. They can apply to production or energy output (shutting down or lowering production levels), services (reducing hours or scope), payments or benefits (cutting contributions or pension benefits), or other ongoing commitments; curtailments may be temporary or permanent and can be voluntary or mandated, and they typically change the timing or quantity of whatever was previously provided or expected.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DENVER, Oct. 28, 2026 /PRNewswire/ -- Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today announced its third quarter 2026 financial and operating results.  The relevant consolidated financial statements are included in Antero Midstream's Quarterly Report on Form 10-Q for the three months ended September 30, 2026.

Highlights:

• Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter
• Net Income was $393 million, or $0.82 per diluted share, a 242% per share increase compared to the prior year quarter
• Adjusted Net Income was $134 million, or $0.28 per diluted share, a 4% per share increase compared to the prior year quarter (non-GAAP measure)
• Adjusted EBITDA was $291 million, a 3% increase compared to the prior year quarter (non-GAAP measure)
• Capital expenditures were $51 million, in line with the prior year quarter
• Adjusted Free Cash Flow before dividends was $555 million and Adjusted Free Cash Flow after dividends was $449 million, including a $377 million gain on litigation (non-GAAP measure)
• Leverage declined to 2.8x as of September 30, 2026 (non-GAAP measure)

Michael Kennedy, CEO and President of Antero Midstream said, "Antero Midstream delivered another quarter of year-over-year throughput and earnings growth with flat capital investments.  On the operational front, we are currently servicing two drilled but uncompleted growth pads utilizing our legacy water system and remain on track to complete our HG water system integration efforts by year-end.  These growth pads and integration efforts are expected to drive visible EBITDA growth in the fourth quarter of 2026 and 2027."

Justin Agnew, CFO of Antero Midstream, said, "We continue to increase our assets while maintaining a strong balance sheet and returning capital to shareholders.  This includes reducing absolute debt by over $400 million during the quarter, calling our nearest maturity senior notes, and accelerating share repurchases once our leverage target was achieved. Including the internally financed HG acquisition earlier this year, our leverage is flat and our share count has declined by 4 million shares compared to this time last year."

For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Leverage, and Adjusted Free Cash Flow after dividends please see "Non-GAAP Financial Measures and Definitions."

Share Repurchases

During the third quarter of 2026, Antero Midstream repurchased 1.3 million shares for approximately $27 million.  Antero Midstream had approximately $283 million of remaining capacity under its share repurchase program as of September 30, 2026.

Strategic and Operating Updates

Antero Midstream commenced water operations to support Antero Resources two drilled but uncompleted growth pads that will utilize the fresh water system in the fourth quarter of 2026.  These two pads are expected to drive additional throughput growth in 2027. 

The Company expects to complete its water system integration efforts by year-end that will connect the acquired water system to Antero Midstream's legacy system with the capability to service Antero's entire footprint at high deliverability rates.  Antero Midstream also expects to place in service 80 MMcf/d of additional compression capacity in the liquids-rich corridor in the fourth quarter of 2026.  Lastly, the Company continued initial construction on East Side Express, the Company's first regional connectivity expansion project.

Capital expenditures totaled $51 million during the third quarter of 2026.  The Company invested $37 million in gathering and compression and approximately $14 million in water infrastructure.  In the third quarter of 2026, Antero Midstream connected 22 wells to its gathering system and serviced 22 wells with its fresh water delivery system.  During the quarter there was approximately 10 Bcf of reduced throughput due to curtailments and Antero Midstream expects approximately 15 to 20 Bcf of curtailments in the fourth quarter of 2026.

2026 Guidance Update

Antero Midstream is updating its 2026 guidance to reflect receipt of the Clearwater litigation proceeds.  Based on the $377 million of litigation proceeds, net of the impact of interest expense and current income tax expense, the Company is increasing 2026 Adjusted Free Cash Flow before and after dividends guidance by $370 million.  All other guidance ranges not referenced below remain unchanged.

The following is a summary of Antero Midstream's updated 2026 guidance ($ in millions, except per share amounts):

		Twelve Months Ended December 31, 2026								Change vs. Prior Guidance
		Low		High				(At midpoint)
Net Income		$765		$815					$280
Interest Expense		200		220					(10)
Current Income Tax Expense		10		20					15
Adjusted Free Cash Flow Before Dividends		1,125		1,185					370
Adjusted Free Cash Flow After Dividends		700		760					370

Third Quarter 2026 Financial Results

Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter.  Fresh water delivery volumes averaged 89 MBbl/d during the quarter, a 3% decrease compared to the third quarter of 2025.  Processing volumes from the joint venture averaged 1.6 Bcf/d and joint venture fractionation volumes averaged 40 MBbl/d.  Processing and fractionation capacity were both 100% utilized during the quarter. 

For the three months ended September 30, 2026, revenues were $327 million, comprised of $257 million from the Gathering and Processing segment and $70 million from the Water Handling segment, net of $23 million of amortization of customer relationships.  Water Handling revenues include $43 million from other water handling and high rate water transfer services.

Direct operating expenses were $38 million for the Gathering and Processing segment and $45 million for the Water Handling segment for a total of $83 million.  Water Handling operating expenses include $38 million from other water handling and high rate water transfer services.  General and administrative expenses excluding equity-based compensation were $10 million during the third quarter of 2026.  Total operating expenses during the third quarter of 2026 included $11 million of equity-based compensation expense, $38 million of depreciation expense, $3 million impairment and a $377 million gain on litigation.

Net Income was $393 million, or $0.82 per diluted share.  Net Income adjusted for amortization of customer relationships, impairment of property and equipment, loss on early extinguishment of debt, loss on long-lived assets, gain on litigation, and transaction expense, net of tax effects of reconciling items, or Adjusted Net Income, was $134 million.  Adjusted Net Income was $0.28 per diluted share, a 4% per share increase compared to the prior year quarter.

The following table reconciles Net Income to Adjusted Net Income (in thousands):

		Three Months Ended September 30,
			2025						2026
Net Income		$	115,984						392,657
Amortization of customer relationships			17,668						22,874
Impairment of property and equipment			167						2,921
Loss on early extinguishment of debt			1,313						1,613
Loss on long-lived assets			—						1,158
Gain on litigation			—						(376,963)
Transaction expense			—						37
Tax effect of reconciling items(1)			(4,946)						90,156
Adjusted Net Income		$	130,186						134,453

(1) The statutory tax rate for each of the three months ended September 30, 2025, and 2026 was approximately 26%.

Adjusted EBITDA was $291 million, a 3% increase compared to the prior year quarter.  Interest expense was $51 million, an 8% increase compared to the prior year quarter.  Capital expenditures were $51 million during the third quarter of 2026, in line with the prior year quarter.  Current income tax expense was $11 million as a result of the $377 million gain on litigation.  Adjusted Free Cash Flow before dividends was $555 million and Adjusted Free Cash Flow after dividends was $449 million.

The following table reconciles Net Income to Adjusted EBITDA and Adjusted Free Cash Flow before and after dividends (in thousands):

		Three Months Ended September 30,
			2025			2026
Net Income		$	115,984			392,657
Interest expense, net			47,196			50,746
Income tax expense			45,688			140,125
Depreciation expense			34,465			37,963
Amortization of customer relationships			17,668			22,874
Equity-based compensation			11,026			10,960
Equity in earnings of unconsolidated affiliates			(29,688)			(27,950)
Distributions from unconsolidated affiliates			37,365			34,655
Impairment of property and equipment			167			2,921
Loss on early extinguishment of debt			1,313			1,613
Loss on long-lived assets			—			1,158
Gain on litigation			—			(376,963)
Transaction expense			—			37
Other operating expense, net(1)			49			45
Adjusted EBITDA		$	281,233			290,841
Interest expense, net			(47,196)			(50,746)
Capital expenditures (accrual-based)			(51,336)			(50,790)
Current income tax expense			2,290 —			(11,250) 376,963
Gain on litigation
Adjusted Free Cash Flow before dividends		$	184,991			555,018
Dividends declared (accrual-based)			(107,187)			(106,267)
Adjusted Free Cash Flow after dividends		$	77,804			448,751

(1) Other operating expense, net represents accretion of asset retirement obligations.

The following table reconciles net cash provided by operating activities to Adjusted Free Cash Flow before and after dividends (in thousands):

		Three Months Ended September 30,
			2025						2026
Net cash provided by operating activities		$	212,836						600,298
Amortization of deferred financing costs			(1,317)						(1,392)
Settlement of asset retirement obligations			59						37
Transaction expense			—						37
Changes in working capital			24,749						6,828
Capital expenditures (accrual-based)			(51,336)						(50,790)
Adjusted Free Cash Flow before dividends		$	184,991						555,018
Dividends declared (accrual-based)			(107,187)						(106,267)
Adjusted Free Cash Flow after dividends		$	77,804						448,751

Conference Call

A conference call is scheduled for Thursday, October 29, 2026, at 10:00 am MT to discuss the financial and operational results.  A brief Q&A session for security analysts will immediately follow the discussion of the results. To participate in the call, dial in at 877-407-9126 (U.S.), or +1 201-493-6751 (International) and reference "Antero Midstream."  A telephone replay of the call will be available until Thursday, November 5, 2026, at 10:00 am MT at 877-660-6853 (U.S.) or +1 201-612-7415 (International) using the conference ID: 13758949.  To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com.  The webcast will be archived for replay until Thursday, November 5, 2026, at 10:00 am MT.

Presentation

An updated presentation will be posted to the Company's website before the conference call.  The presentation can be found at www.anteromidstream.com on the homepage.  Information on the Company's website does not constitute a portion of, and is not incorporated by reference into this press release.

Non-GAAP Financial Measures and Definitions

Antero Midstream uses certain non-GAAP financial measures.  Antero Midstream defines Adjusted Net Income as Net Income adjusted for certain items.  Antero Midstream uses Adjusted Net Income to assess the operating performance of its assets.  Antero Midstream defines Adjusted EBITDA as Net Income adjusted for certain items.

Antero Midstream uses Adjusted EBITDA to assess:

• the financial performance of Antero Midstream's assets, without regard to financing methods, capital structure or historical cost basis;
• its operating performance and return on capital as compared to other publicly traded companies in the midstream energy sector, without regard to financing or capital structure; and
• the viability of acquisitions and other capital expenditure projects.

Antero Midstream defines Adjusted Free Cash Flow before dividends as Adjusted EBITDA less net interest expense, accrual-based capital expenditures, current income tax expense, and gain on litigation.  Capital expenditures include additions to gathering systems and facilities, additions to water handling systems, and investments in unconsolidated affiliates.  Capital expenditures exclude acquisitions and Adjusted Free Cash Flow excludes transaction expense related to acquisitions.  Adjusted Free Cash Flow after dividends is defined as Adjusted Free Cash Flow before dividends less accrual-based dividends declared for the quarter.  Antero Midstream uses Adjusted Free Cash Flow before and after dividends as a performance metric to compare the cash generating performance of Antero Midstream from period to period.

Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow before and after dividends are non-GAAP financial measures.  The GAAP measure most directly comparable to these measures is Net Income.  Such non-GAAP financial measures should not be considered as alternatives to the GAAP measures of Net Income and cash flows provided by (used in) operating activities.  The presentations of such measures are not made in accordance with GAAP and have important limitations as analytical tools because they include some, but not all, items that affect Net Income and cash flows provided by (used in) operating activities.  You should not consider any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP.  Antero Midstream's definitions of such measures may not be comparable to similarly titled measures of other companies.

The following table reconciles cash paid for capital expenditures and accrued capital expenditures during the period (in thousands):

		Three Months Ended September 30,
			2025						2026
Capital expenditures (as reported on a cash basis)		$	47,750						44,721
Change in accrued capital costs			3,586						6,069
Capital expenditures (accrual basis)		$	51,336						50,790

Antero Midstream defines Net Debt as consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash, cash equivalents and restricted cash.  Antero Midstream views Net Debt as an important indicator in evaluating Antero Midstream's financial leverage.  Antero Midstream defines Leverage as Net Debt divided by Adjusted EBITDA for the last twelve months.  The GAAP measure most directly comparable to Net Debt is total debt, excluding unamortized debt premiums and debt issuance costs.

The following table reconciles consolidated total debt to Net Debt as used in this release (in thousands):

		September 30,
				2025				2026
Bank credit facility		$		379,600				576,800
5.75% senior notes due 2028				650,000				—
5.375% senior notes due 2029				750,000				750,000
6.625% senior notes due 2032				600,000				600,000
5.75% senior notes due 2033				650,000				650,000
5.75% senior notes due 2034				—				600,000
Consolidated total debt				3,029,600				3,176,800
Less: Cash and cash equivalents				—				—
Consolidated net debt		$		3,029,600				3,176,800

The following table reconciles Net Income to Adjusted EBITDA for the last twelve months ended September 30, 2026 (in thousands):

			Twelve Months Ended September 30, 2026
Net Income		$	676,367
Interest expense, net			207,291
Income tax expense			243,994
Depreciation expense			143,709
Amortization of customer relationships			84,554
Impairment of property and equipment			3,054
Equity-based compensation			43,490
Equity in earnings of unconsolidated affiliates			(115,202)
Distributions from unconsolidated affiliates			140,830
Loss on early extinguishment of debt			1,613
Loss on long-lived assets			85,126
Gain on litigation			(376,963)
Transaction expense			14,194
Other operating income, net (1)			582
Adjusted EBITDA		$	1,152,639

(1)	Other operating expense, net represents accretion of asset retirement obligations, loss on settlement of asset retirement obligations and gain on asset sale.

Antero Midstream Corporation is a Delaware corporation that owns, operates and develops midstream gathering, compression, processing and fractionation assets located in the Appalachian Basin, as well as integrated water assets that primarily service Antero Resources Corporation's (NYSE: AR) ("Antero Resources") properties.

This release includes "forward-looking statements." Words such as "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," or "continue," "goal," or "target" and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words.  Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Midstream's control.  All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Midstream expects, believes or anticipates will or may occur in the future, such as statements regarding our strategy, future operations, financial position, estimated revenues and losses, Antero Resources' and Antero Midstream's respective ability to integrate acquired assets and achieve the intended operational, financial and strategic benefits from any such transactions, projected costs, prospects, plans and objectives of management, Antero Midstream's ability to complete the construction or purchase new gathering and compression, processing, water handling or other assets on schedule, at the budgeted cost or at all, and the ability of such assets to operate as designed or at expected levels, Antero Resources' expected production and development plan, natural gas, NGLs and oil prices, Antero Midstream's ability to realize the anticipated benefits of its investments in unconsolidated affiliates, Antero Midstream's ability to execute its share repurchase and dividend program, Antero Midstream's ability to execute its business strategy, impacts of geopolitical events, including the conflicts in Ukraine, Venezuela and in the Middle East, and world health events, information regarding long-term financial and operating outlooks for Antero Midstream and Antero Resources, information regarding Antero Resources' expected future growth and its ability to meet its drilling and development plan and the participation level of Antero Resources' drilling partner, the impact on demand for Antero Midstream's services as a result of incremental production by Antero Resources, the impact of recently enacted legislation, and expectations regarding the amount and timing of litigation awards are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events.  All forward-looking statements speak only as of the date of this release.  Although Antero Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved.  Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.  Except as required by law, Antero Midstream expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

Antero Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond Antero Midstream's control.  These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruptions, environmental risks, Antero Resources' drilling and completion and other operating risks, regulatory changes or changes in law, the uncertainty inherent in projecting Antero Resources' future rates of production, cash flows and access to capital, the timing of development expenditures, impacts of world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading "Risk Factors" in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

ANTERO MIDSTREAM CORPORATION Condensed Consolidated Balance Sheets (In thousands, except per share amounts)
									(Unaudited)
			December 31,						September 30,
			2025						2026
Assets
Current assets:
Cash and cash equivalents			$		180,435						—
Restricted cash					82,500						—
Accounts receivable–Antero Resources					106,771						124,123
Accounts receivable–third party					993						256
Income tax receivable					1,896						—
Current assets held for sale					4,600						—
Other current assets					2,669						2,615
Total current assets					379,864						126,994
Long-term assets:
Property and equipment, net					3,454,572						3,952,989
Investments in unconsolidated affiliates					585,778						567,510
Customer relationships					1,074,087						1,629,379
Operating leases right-of-use assets					—						50,520
Assets held for sale					379,036						—
Other assets, net					10,779						13,688
Total assets			$		5,884,116						6,341,080
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable–Antero Resources			$		5,366						5,504
Accounts payable–third party					10,368						8,868
Accrued liabilities					91,527						109,985
Short-term lease liabilities					—						15,151
Current liabilities held for sale					2,297						—
Other current liabilities					1,924						10,805
Total current liabilities					111,482						150,313
Long-term liabilities:
Long-term debt					3,222,530						3,153,695
Deferred income tax liability, net					562,996						770,475
Long-term lease liabilities					—						35,531
Liabilities held for sale					3,021						—
Other					12,046						16,210
Total liabilities					3,912,075						4,126,224
Stockholders' equity:
Preferred stock, $0.01 par value: 100,000 authorized as of December 31, 2025 and  September 30, 2026
Series A non-voting perpetual preferred stock; 12 designated and 10 issued and  outstanding as of December 31, 2025 and September 30, 2026					—						—
Common stock, $0.01 par value; 2,000,000 authorized; 474,060 and 473,417 issued and  outstanding as of December 31, 2025 and September 30, 2026, respectively					4,741						4,734
Additional paid-in capital					1,952,524						1,839,765
Retained earnings					14,776						370,357
Total stockholders' equity					1,972,041						2,214,856
Total liabilities and stockholders' equity			$		5,884,116						6,341,080

 

ANTERO MIDSTREAM CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts)
		Three Months Ended September 30,
		2025			2026
Revenue:
Gathering and compression–Antero Resources		$	249,827			270,542
Water handling–Antero Resources			62,129			79,330
Water handling–third party			533			24
Amortization of customer relationships			(17,668)			(22,874)
Total revenue			294,821			327,022
Operating expenses:
Direct operating			57,886			83,249
General and administrative (including $11,026 and $10,960 of equity-based  compensation in 2025 and 2026, respectively)			21,316			21,124
Facility idling			445			297
Depreciation			34,465			37,963
Impairment of property and equipment			167			2,921
Loss on long-lived assets			—			1,158
Gain on litigation			—			(376,963)
Other operating expense, net			49			45
Total operating expenses			114,328			(230,206)
Operating income			180,493			557,228
Other income (expense):
Interest expense, net			(47,196)			(50,746)
Equity in earnings of unconsolidated affiliates			29,688			27,950
Loss on early extinguishment of debt			(1,313)			(1,613)
Transaction expense			—			(37)
Total other expense			(18,821)			(24,446)
Income before income taxes			161,672			532,782
Income tax expense			(45,688)			(140,125)
Net income and comprehensive income		$	115,984			392,657
Net income per common share–basic		$	0.24			0.83
Net income per common share–diluted		$	0.24			0.82
Weighted average common shares outstanding:
Basic			478,020			474,315
Diluted			481,814			477,087

 

ANTERO MIDSTREAM CORPORATION Selected Operating Data (Unaudited)
								Amount of
		Three Months Ended September 30,						Increase			Percentage
		2025			2026			or Decrease			Change
Operating Data:
Gathering (MMcf)			315,719			374,207			58,488			19	%
Compression (MMcf)			314,729			367,246			52,517			17	%
Centralized compression (MMcf)			314,729			294,382			(20,347)			(6)	%
Well pad compression (MMcf)			—			72,864			72,864			100	%
High pressure gathering (MMcf)			291,637			268,316			(23,321)			(8)	%
Fresh water delivery (MBbl) (1)			8,472			8,204			(268)			(3)	%
Other water handling (MBbl) (2)			4,966			11,320			6,354			128	%
Wells serviced by fresh water delivery (1)			17			16			(1)			(6)	%
Gathering (MMcf/d)			3,432			4,067			635			19	%
Compression (MMcf/d)			3,421			3,992			571			17	%
Centralized compression (MMcf/d)			3,421			3,200			(221)			(6)	%
Well pad compression (MMcf/d)			—			792			792			100	%
High pressure gathering (MMcf/d)			3,170			2,916			(254)			(8)	%
Fresh water delivery (MBbl/d) (1)			92			89			(3)			(3)	%
Other water handling (MBbl/d) (2)			54			123			69			128	%
Average Realized Fees (3):
Gathering ($/Mcf)		$	0.36			0.37			0.01			3	%
Centralized compression ($/Mcf)		$	0.22			0.22			—			*
High pressure gathering ($/Mcf)		$	0.23			0.23			—			*
Fresh water delivery ($/Bbl) (1)		$	4.37			4.43			0.06			1	%
Joint Venture Operating Data:
Processing (MMcf)			157,696			147,850			(9,846)			(6)	%
Fractionation (MBbl)			3,680			3,680			—			*
Processing (MMcf/d)			1,714			1,607			(107)			(6)	%
Fractionation (MBbl/d)			40			40			—			*

*Not meaningful or applicable.
(1)											Fresh water delivery includes fresh water charged at a fixed fee under our water services agreement with Antero Resources.
(2)											Other water handling includes fresh water charged at cost plus 3% for services provided to Antero Resources on its acreage acquired from HG Production and our other fluid handling services charged at cost plus 3% or cost of service.
(3)											The average realized fees for the three months ended September 30, 2026, include annual CPI-based adjustments of approximately 1.5%.

 

ANTERO MIDSTREAM CORPORATION Condensed Consolidated Results of Segment Operations (Unaudited) (In thousands)
		Three Months Ended September 30, 2026
		Gathering and			Water						Consolidated
(in thousands)		Processing			Handling			Unallocated (1)			Total
Revenues:
Revenue–Antero Resources		$	270,542			79,330			—			349,872
Revenue–third-party			—			24			—			24
Amortization of customer relationships			(13,846)			(9,028)			—			(22,874)
Total revenues			256,696			70,326			—			327,022
Operating expenses:
Direct operating			38,553			44,696			—			83,249
General and administrative (excluding equity-based compensation)			6,975			2,210			979			10,164
Equity-based compensation			8,256			2,334			370			10,960
Facility idling			—			297			—			297
Depreciation			18,993			18,970			—			37,963
Impairment of property and equipment			2,115			806			—			2,921
Loss on long-lived assets			1,118			40			—			1,158
Gain on litigation			—			(376,963)			—			(376,963)
Other operating expense, net			—			45			—			45
Total operating expenses			76,010			(307,565)			1,349			(230,206)
Operating income			180,686			377,891			(1,349)			557,228
Other income (expense):
Interest expense, net			—			—			(50,746)			(50,746)
Equity in earnings of unconsolidated affiliates			27,950			—			—			27,950
Loss on early extinguishment of debt			—			—			(1,613)			(1,613)
Transaction expense			—			—			(37)			(37)
Total other income (expense)			27,950			—			(52,396)			(24,446)
Income before income taxes			208,636			377,891			(53,745)			532,782
Income tax expense			—			—			(140,125)			(140,125)
Net income and comprehensive income		$	208,636			377,891			(193,870)			392,657

(1)

Corporate expenses that are not directly attributable to either the gathering and processing or water handling segments.

 

ANTERO MIDSTREAM CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
		Nine Months Ended September 30,
		2025					2026
Cash flows provided by (used in) operating activities:
Net income		$		361,234				624,438
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation				100,577				109,976
Impairment of property and equipment				984				3,054
Deferred income tax expense				124,471				207,480
Equity-based compensation				34,835				32,367
Equity in earnings of unconsolidated affiliates				(87,724)				(86,487)
Distributions from unconsolidated affiliates				106,095				105,655
Amortization of customer relationships				53,004				66,886
Amortization of deferred financing costs				3,938				4,443
Settlement of asset retirement obligations				(317)				(111)
Loss on early extinguishment of debt				1,313				1,613
Gain on long-lived assets				—				(1,500)
Other operating activities				143				533
Changes in assets and liabilities:
Accounts receivable–Antero Resources				6,619				3,330
Accounts receivable–third party				373				1,083
Income tax receivable				(1,896)				1,896
Other current assets				(360)				110
Accounts payable–Antero Resources				(1)				250
Accounts payable–third party				1,081				(592)
Income taxes payable				594				9,354
Accrued liabilities				(28,002)				9,393
Net cash provided by operating activities				676,961				1,093,171
Cash flows provided by (used in) investing activities:
Additions to gathering systems, facilities and other				(67,960)				(86,692)
Additions to water handling systems				(45,477)				(48,678)
Additional investments in unconsolidated affiliate				(6,653)				(900)
Acquisition of HG Midstream				—				(1,103,032)
Proceeds from asset sales				6				377,433
Other investing activities				844				(4,792)
Net cash used in investing activities				(119,240)				(866,661)
Cash flows provided by (used in) financing activities:
Dividends to common stockholders				(331,820)				(327,547)
Dividends to preferred stockholders				(413)				(413)
Repurchases of common stock				(86,669)				(53,552)
Issuance and borrowings of long-term debt				2,039,500				2,410,000
Repayments of long-term debt				(2,144,200)				(2,483,200)
Payments of deferred financing costs				(7,030)				(1,784)
Employee tax withholding for settlement of equity-based compensation awards				(27,089)				(32,590)
Payments on capital lease obligations				—				(359)
Net cash used in financing activities				(557,721)				(489,445)
Net decrease in cash, cash equivalents and restricted cash				—				(262,935)
Cash, cash equivalents and restricted cash, beginning of period				—				262,935
Cash, cash equivalents and restricted cash, end of period		$		—				—
Supplemental disclosure of cash flow information:
Cash paid during the period for interest		$		160,951				158,847
Income taxes paid during the period				2,600				—
Increase in accrued capital expenditures and accounts payable
for property and equipment				13,381				3,150
Right-of-use assets obtained in exchange for new operating lease obligations				351				59,055

 

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SOURCE Antero Midstream Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Antero Midstream's third-quarter 2026 earnings?

Antero Midstream earned $393 million, or $0.82 per diluted share, with per-share earnings up 242% year over year. Adjusted net income, a non-GAAP measure, was $134 million, or $0.28 per diluted share, up 4% per share. Results included a $377 million litigation gain.

What is Antero Midstream's updated 2026 cash-flow guidance?

Antero Midstream forecasts $1,125–$1,185 million before dividends and $700–$760 million after dividends in adjusted free cash flow, both non-GAAP measures. Each range increased by $370 million, reflecting $377 million of litigation proceeds net of the impact of interest expense and current income tax expense.

How does Antero Midstream calculate its leverage ratio?

Antero Midstream defines leverage as net debt divided by adjusted EBITDA for the last twelve months. Net debt is consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash, cash equivalents and restricted cash. Leverage is a non-GAAP measure.

How much share repurchase capacity did Antero Midstream have after the third quarter of 2026?

Antero Midstream had approximately $283 million remaining under its share repurchase program as of September 30, 2026. During the third quarter, it repurchased 1.3 million shares for approximately $27 million.