Antero Midstream lifts adjusted free cash flow outlook $370M
The $377 million Clearwater litigation proceeds underpin a $370 million increase to 2026 adjusted free cash flow guidance.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Antero Midstream Corporation (AM) reported third-quarter 2026 revenue of $327 million and net income of $393 million, compared with $295 million and $116 million, respectively, a year earlier. Net income included a $377 million gain on litigation; adjusted net income was $134 million and adjusted EBITDA was $291 million. Adjusted free cash flow was $555 million before dividends and $449 million after dividends, including the gain.
Gathering and compression volumes increased 19% and 17%, respectively, year over year. Fresh water delivery averaged 89 MBbl/d, down 3%. Capital expenditures were $51 million. Curtailments reduced third-quarter throughput by approximately 10 Bcf, and the company expects approximately 15 to 20 Bcf of curtailments in the fourth quarter of 2026.
AM increased its 2026 adjusted free cash flow guidance by $370 million before and after dividends, based on $377 million of Clearwater litigation proceeds, net of interest expense and current income tax expense. Updated ranges are $1,125 million to $1,185 million before dividends and $700 million to $760 million after dividends. Leverage was 2.8x as of September 30, 2026. The company repurchased 1.3 million shares for approximately $27 million during the quarter.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased to $327.0 million from $294.8 million year over year.
- Moderate pointGathering and compression volumes increased 19% and 17%, respectively, year over year.
Negative
- None.
Filing Explained
As of September thirtieth, 2026, two hundred eighty-three million dollars of repurchase-program capacity remained; this is program room, not completed purchases.
The operating update says water operations have commenced for two drilled-but-uncompleted growth pads; year-end system integration and 80 MMcf/d of added compression in service during the fourth quarter remain expected, leaving these expansion steps at different stages.
Antero Midstream expects the two pads to drive additional throughput growth in 2027; East Side Express, its first regional connectivity expansion project, remains in initial construction.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Adjusted Free Cash Flow before dividends financial
Net Debt financial
Leverage financial
Earnings Snapshot
2026 Adjusted Free Cash Flow guidance: $1,125 million to $1,185 million before dividends and $700 million to $760 million after dividends; each increased by $370 million based on $377 million of litigation proceeds, net of interest expense and current income tax expense.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Antero Midstream’s Q3 2026 revenue and net income?
How did AM update its 2026 free cash flow guidance?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event
reported):
(Exact name of registrant as specified in its charter)
| (State
or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS
Employer Identification Number) |
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including
Area Code (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition |
On October 28, 2026, Antero Midstream Corporation issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated by reference herein, announcing its financial and operational results for the quarter ended September 30, 2026.
The information in this Current Report, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act unless specifically identified therein as being incorporated therein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit Number | Description | |
| 99.1 | Antero Midstream Corporation press release dated October 28, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ANTERO MIDSTREAM CORPORATION | ||
| By: | /s/ Justin J. Agnew | |
| Justin J. Agnew | ||
| Chief Financial Officer, Vice President – Finance | ||
Dated: October 28, 2026
3
Exhibit 99.1
Antero Midstream Announces Third Quarter 2026 Financial and Operating Results
Denver, Colorado, October 28, 2026—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 | ) | |||||
| Gain on litigation | — | 376,963 | ||||||
| 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.
For more information, contact Daniel Katzenberg, Vice President – Investor Relations, at (303) 357-7219 or dkatzenberg@anteroresources.com.
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)
| Three Months Ended September 30, | Amount of 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 | ||||||