Press Release: Antero Midstream Announces First Quarter 2026 Financial and Operating Results

Dow Jones
04/30

DENVER, April 29, 2026 /PRNewswire/ -- Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today announced its first 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 March 31, 2026.

First Quarter 2026 Highlights:

   -- Gathering volumes increased by 14% compared to the prior year quarter 
 
   -- Net Income was $118 million, or $0.25 per diluted share, in line with the 
      prior year quarter 
 
   -- Adjusted Net Income was $138 million, or $0.29 per diluted share, a 4% 
      per share increase compared to the prior year quarter (non-GAAP measure) 
 
   -- Adjusted EBITDA was $288 million, a 5% increase compared to the prior 
      year quarter (non-GAAP measure) 
 
   -- Capital expenditures were $42 million 
 
   -- Adjusted Free Cash Flow after dividends was $85 million, an 8% increase 
      compared to the prior year quarter (non-GAAP measure) 
 
   -- Repurchased 1.0 million shares for $18 million 

Michael Kennedy, CEO and President said, "Antero Midstream delivered another quarter of volume and EBITDA growth while closing the Company's largest acquisition to-date. Our ability to close the HG acquisition and integrate operations while avoiding any outages during Winter Storm Fern, is a testament to the hard work and dedication of our team."

Mr. Kennedy continued, "In addition to the integration efforts that remain on schedule, we continue to invest capital to improve the connectivity and market outlets on our gathering systems. These capital projects supported our first dry gas Marcellus Shale pad in over a decade, as well as our first pad on the acquired assets, that were connected during the second quarter. These pads deliver volumetric growth and position Antero Midstream to help supply the rising demand for U.S. Energy."

Justin Agnew, CFO of Antero Midstream, said, "Antero Midstream's strong balance sheet and consistent Free Cash Flow generation, combined with the sale of our Ohio Utica Shale assets, allowed us to finance the HG Energy acquisition while maintaining leverage in the low 3-times range. Looking ahead we expect our just-in-time organic strategy, bolstered by the highly accretive HG Energy acquisition, to continue delivering high-single digit EBITDA growth in the future."

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."

Share Repurchases

During the first quarter of 2026, Antero Midstream repurchased 1.0 million shares for $18 million. Antero Midstream had approximately $318 million of remaining capacity under its share repurchase program as of March 31, 2026.

Strategic and Operating Updates

Antero Midstream completed its two previously announced strategic transactions during the first quarter. The Company closed on the HG Energy acquisition in early February and closed on the divestiture of its Ohio Utica Shale assets in late February. Operating and financial results include contributions based on the closing dates of each transaction.

Upon closing of the acquisition, Antero Midstream immediately commenced asset integration operations and cost-effective water blending solutions. This included initial facilities and connectivity work that successfully supported the first pad turn-in-line on the acquired assets in the second quarter. In addition, the Company initiated the construction of a pipeline to connect its water system with the acquired water system, which supports additional fresh water delivery volumes and growth in 2027 and beyond.

During the first quarter of 2026, Antero Midstream connected 20 wells to its gathering system and serviced 26 wells with its fresh water delivery system. Capital expenditures were $42 million during the first quarter of 2026. The Company invested $26 million in gathering and compression, $15 million in water infrastructure, and $1 million in the Stonewall Joint Venture.

First Quarter 2026 Financial Results

Gathering volumes increased by 14% compared to the prior year quarter. Fresh water delivery volumes averaged 83 MBbl/d during the quarter, a 21% decrease compared to the first quarter of 2025. Processing volumes from the processing and fractionation joint venture (the "Joint Venture") increased by 4% compared to the prior year quarter. Joint Venture fractionation volumes averaged 40 MBbl/d, in line with the prior year quarter. Processing and fractionation capacity were both 100% utilized during the quarter.

 
                               Three Months Ended 
                                    March 31, 
                               ------------------ 
Average Daily Volumes:                       2025   2026  % Change 
                               ------------------  -----  -------- 
   Gathering (MMcf/d)                       3,348  3,805      14 % 
   Centralized Compression 
    (MMcf/d)                                3,330  3,370       1 % 
   High Pressure Gathering 
    (MMcf/d)                                3,106  3,133       1 % 
   Fresh Water Delivery 
    (MBbl/d)                                  105     83    (21) % 
   Joint Venture Processing 
    (MMcf/d)                                1,650  1,708       4 % 
   Joint Venture 
    Fractionation (MBbl/d)                     40     40        -- 
 
 

For the three months ended March 31, 2026, revenues were $314 million, comprised of $250 million from the Gathering and Processing segment and $64 million from the Water Handling segment, net of $21 million of amortization of customer relationships. Water Handling revenues include $40 million from other water handling and high rate water transfer services.

Direct operating expenses were $30 million for the Gathering and Processing segment and $41 million for the Water Handling segment for a total of $71 million. Water Handling operating expenses include $35 million from other water handling and high rate water transfer services. General and administrative expenses excluding equity-based compensation were $12 million during the first quarter of 2026. Total operating expenses during the first quarter of 2026 included $11 million of equity-based compensation expense and $35 million of depreciation expense. Transaction expense was $9 million related to the HG Midstream acquisition.

Net Income was $118 million, or $0.25 per diluted share, in line with the prior year quarter. Net Income adjusted for amortization of customer relationships, impairment of property and equipment, gain on long-lived assets, transaction expense and other, net of tax effects of reconciling items, or Adjusted Net Income, was $138 million. Adjusted Net Income was $0.29 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 
                                              March 31, 
                                   ------------------------------- 
                                           2025             2026 
                                   ---  -------  --------------- 
Net Income                           $  120,737          118,266 
 Amortization of customer 
  relationships                          17,668           21,210 
 Impairment of property and 
 equipment                                  817               -- 
 Gain on long-lived assets                   --          (2,658) 
 Transaction expense                         --            8,689 
 Other(1)                                   (5)             (13) 
 Tax effect of reconciling 
  items(2)                              (4,773)          (7,047) 
                                   ---  -------  --------------- 
Adjusted Net Income                  $  134,444          138,447 
                                   ---  -------  --------------- 
 
 
(1) Other represents gain on asset sale. 
(2) The statutory tax rate for each of the three months ended March 31, 2025 
and 2026 was approximately 26%. 
 

Adjusted EBITDA was $288 million, a 5% increase compared to the prior year quarter. Interest expense was $54 million, a 12% increase compared to the prior year quarter driven by financing for the HG Energy acquisition. Capital expenditures were $42 million during the first quarter of 2026. Adjusted Free Cash Flow before dividends was $192 million and Adjusted Free Cash Flow after dividends was $85 million, an 8% increase compared to the prior year quarter.

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

 
                                                 Three Months Ended 
                                                      March 31, 
                                               ----------------------- 
                                                     2025       2026 
                                                ---------  --------- 
Net Income                                     $  120,737    118,266 
 Interest expense, net                             48,410     54,029 
 Income tax expense                                36,096     37,639 
 Depreciation expense                              32,748     34,635 
 Amortization of customer relationships            17,668     21,210 
 Equity-based compensation                         12,402     10,579 
 Equity in earnings of unconsolidated 
  affiliates                                     (28,020)   (30,012) 
 Distributions from unconsolidated affiliates      33,375     35,720 
 Impairment of property and equipment                 817         -- 
 Gain on long-lived assets                             --    (2,658) 
 Transaction expense                                   --      8,689 
 Other operating expense, net(1)                       44         34 

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April 29, 2026 16:15 ET (20:15 GMT)

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