Antero Midstream Q2 revenue slightly beats estimates, adjusted EBITDA misses

Overview

• U.S. midstream operator's Q2 revenue slightly beat analyst expectations

• Q2 adjusted EBITDA missed analyst expectations

• Company began construction on first intrastate regional pipeline and repurchased shares

Outlook

• Company expects increased gathering and water volumes to drive EBITDA growth in H2 2026

• Company says water integration projects are on track to drive high-single digit EBITDA growth in 2027

• Antero Midstream says improved liquidity and balance sheet capacity position it for growth opportunities

Result Drivers

• VOLUME GROWTH - Gathering and compression volumes rose 19% and 17% year-over-year, setting new company records, per CEO Michael Kennedy

• WATER SEGMENT DECLINE - Fresh water delivery volumes fell 16% from the prior year quarter

• HIGHER INTEREST EXPENSE - Interest expense increased 16% due to financing for the HG Energy acquisition

Company press release: ID:nPn3BnLHa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil gas transportation services peer group is "buy."

• Wall Street's median 12-month price target for Antero Midstream Corp is $24.00, about 10.3% above its July 28 closing price of $21.75

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 29 - Shell, Phillips 66 weigh sale of stakes in $3.5 billion US pipeline Explorer, sources say

• July 27 - Canada's Gibson Energy Q2 net income rises on record Infrastructure segment EBITDA

• July 28 - Expand Energy tops profit estimates as higher output offsets lower gas prices

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)