Investment Thesis
Antero Midstream demonstrates exceptional fundamental strength with a 54.2% operating margin, robust 72.6% free cash flow margin, and consistent profitability despite a mature business model. The company generates substantial free cash flow of $862.5M against modest capex of $70M, indicating a highly efficient capital-light operation with strong cash generation capabilities.
AM Strengths
- Exceptional operating margin of 54.2% and net margin of 34.7% indicating pricing power and operational efficiency
- Outstanding free cash flow generation of $862.5M with 72.6% FCF margin demonstrates high-quality earnings conversion
- Strong balance sheet with current ratio of 3.41x and $180.4M cash position supporting financial stability
- Healthy ROE of 20.9% and ROA of 7.0% showing efficient capital deployment
- Revenue growth of 7.4% YoY provides growth in a stable infrastructure business
AM Risks
- High financial leverage with debt-to-equity ratio of 1.63x limits financial flexibility despite strong cash generation
- Long-term debt of $3.2B represents 62% of total assets, creating refinancing and interest rate exposure
- Cyclical exposure to upstream natural gas production volumes and commodity price volatility affecting throughput volumes
- Mature midstream asset base may face long-term energy transition headwinds from renewable energy adoption
- High insider trading activity with 17 Form 4 filings in 90 days warrants monitoring for potential concerns
Key Metrics to Watch
- Operating cash flow sustainability and FCF generation trends to ensure cash distribution capability
- Debt reduction progress and refinancing schedules given elevated leverage ratios
- Throughput volumes and contract renewal rates to assess growth trajectory
- Capital expenditure requirements and maintenance capex trends affecting free cash flow
AM Financial Metrics
AM Profitability Ratios
AM Balance Sheet & Liquidity
AM 5-Year Financial Trend
5-Year Trend Summary: Antero Midstream Corp's revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.77 reflects profitable operations.
AM Growth Metrics (YoY)
AM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $269.9M | $86.0M | $0.21 |
| Q2 2025 | $269.8M | $86.0M | $0.18 |
| Q1 2025 | $279.1M | $103.9M | $0.21 |
| Q3 2024 | $263.8M | $86.0M | $0.20 |
| Q2 2024 | $258.3M | $86.0M | $0.18 |
| Q1 2024 | $259.5M | $86.5M | $0.18 |
| Q3 2023 | $231.0M | $79.4M | $0.17 |
| Q2 2023 | $228.9M | $79.4M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AM Capital Allocation
AM SEC Filings
Access official SEC EDGAR filings for Antero Midstream Corp (CIK: 0001623925)