AM Stock Recent News

Antero Midstream continues to make progress towards increased dividends as net leverage will fall below 3 in 2024. The company reported strong financial results, with net cash generated of $31 million and adjusted EBITDA 10% higher than last year. Management expects steady results to continue and anticipates lower capital expenses and increased savings in 2024.

Although the revenue and EPS for Antero Midstream Corporation (AM) give a sense of how its business performed in the quarter ended June 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

The midstream sector has been much less interesting to the market, especially as interest rates have gone up. Antero Midstream Corporation has a strong sponsor with Antero Resources, especially with recent acquisitions of midstream companies by the sponsor. The company has lowered capital spending and is moving into a period of substantial free cash flow generation. We expect the FCF to drive substantial shareholder returns.

Everyone and their mother predicts a recession in late 2023 or early 2024. We expect this recession to be mild by historical standards, but staying prepared to protect your income is the prudent approach. Fixed-income investments like baby bonds can provide reliable income streams and less volatility, while preferred stocks offer stable income during economic downturns.

Antero Midstream Corporation's strategy to reduce capital expenditures has resulted in increased free cash flow and consistent growth in adjusted EBITDA. The company plans to reduce capital spending to $180-200 million by year-end, resulting in $125-155 million of free cash flow after a $430 million dividend payment. Despite a total debt of $3.3 billion, the absence of immediate debt maturities and a robust balance sheet are key factors contributing to AM's ability to achieve its financial goals.

Antero Midstream offers a 9% dividend yield backed by operations of its parent company, Antero Resources, making it a top high-yield choice in the energy sector. The company has room to grow its dividend, strong financials, and benefits from high natural gas demand and positive trends in related industries like liquid natural gas. Despite higher risk due to its very high yield, Antero Midstream is transforming into a sustainable midstream player with capital gains potential and sustainable dividend growth.

For 2023, Antero Midstream (AM) expects a net income of $355-$395 million, indicating an increase from $326.2 million reported in 2022.

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Higher freshwater delivery volumes and increased average freshwater distribution fees aid Antero Midstream's (AM) earnings in Q1.

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