Surge in Oil Production Drives Dividends as High as 8.1%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 03 2025
0mins
Should l Buy AM?
Source: NASDAQ.COM
Volatility in Drilling Permits: The oil industry is experiencing fluctuating drilling permits, with Texas permits dropping to a four-year low, yet actual production remains high due to increased efficiency, allowing the U.S. to maintain record oil output.
Investment in Pipeline Operators: Focusing on energy toll collectors, such as Antero Midstream and the Alerian MLP ETF, offers a stable investment opportunity with high dividends (up to 8.1%) that are insulated from oil price fluctuations, providing reliable cash flow for investors.
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Analyst Views on AM
Wall Street analysts forecast AM stock price to fall
3 Analyst Rating
0 Buy
1 Hold
2 Sell
Moderate Sell
Current: 21.160
Low
19.00
Averages
19.67
High
20.00
Current: 21.160
Low
19.00
Averages
19.67
High
20.00
About AM
Antero Midstream Corporation is a midstream energy company. The Company owns, operates and develops midstream gathering, compression, processing and fractionation assets located in the Appalachian Basin, and integrated water assets that service Antero Resources Corporation’s (Antero Resources) properties. Its assets consist of gathering systems and compression facilities, water handling and blending facilities and interests in processing and fractionation plants. Its gathering and processing segments include a network of gathering pipelines and compressor stations that collect and process production from Antero Resources’ wells in the Appalachian Basin, and equity in earnings from its investments in the Joint Venture and Stonewall. Its water handling segment includes two independent systems that deliver water from sources and other fluid handling services. It owns gathering pipelines and integrated water handling assets in the core of the Marcellus Shale in West Virginia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Antero Midstream Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Antero Midstream reported adjusted EBITDA of $288 million for Q1 2026, reflecting a 5% year-over-year increase driven by higher gathering, compression, and processing volumes, thereby enhancing profitability and market competitiveness.
- Acquisition Integration Progress: The company successfully took over operations of newly acquired assets during Winter Storm Fern without outages, demonstrating operational reliability, and is on track to complete water system integration by year-end, further improving operational efficiency and asset utilization.
- Capital Expenditure Plans: The CFO anticipates an increase in capital expenditures as construction season improves, which will drive gradual EBITDA growth, indicating a proactive strategy in expanding infrastructure to meet market demand.
- Leverage Reduction Expectations: The company expects to reduce leverage to 3.0x by year-end 2026, despite a $1.1 billion acquisition and share repurchases, showcasing strong cash flow management and financial stability.
See More
Antero Midstream Reports Q1 2026 Financial Highlights
- Financial Growth: In Q1 2026, Antero Midstream reported revenues of $314 million, an 8% increase year-over-year, with the Gathering and Processing segment contributing $250 million, indicating strong market performance.
- EBITDA Improvement: Adjusted EBITDA reached $288 million, up 5% from the previous year, reflecting enhanced operational efficiency and profitability post-HG Energy acquisition, with expectations for continued high-single digit EBITDA growth.
- Capital Expenditures: Capital expenditures totaled $42 million in Q1, with $26 million allocated to gathering and compression facilities and $15 million to water infrastructure, demonstrating ongoing investment in expanding and optimizing operational networks.
- Share Repurchase: Antero Midstream repurchased 1 million shares for $18 million in Q1, reflecting confidence in its stock value, while having $318 million remaining under its repurchase program as of March 31, further enhancing shareholder returns.
See More
Analysis of AM Dividend Expectations and Market Performance
- Dividend Yield Analysis: AM's current annualized dividend yield stands at 4.18%, and while dividends are not always predictable, historical data suggests that this yield may remain stable going forward, indicating the company's commitment to its dividend policy.
- Price Volatility Range: AM's 52-week low is $16.24 per share and the high is $23.835, with the latest trade at $21.65, demonstrating that the stock price is fluctuating within a reasonable range, which may attract investor interest.
- ETF Holdings Insight: According to ETF Finder, AM constitutes 4.53% of the Westwood Salient Enhanced Midstream Income ETF (Symbol: MDST), which is trading up about 0.5% on the day, reflecting a positive market sentiment towards AM.
- Intraday Trading Performance: In Monday's trading, Antero Midstream Corp shares rose approximately 0.7%, indicating a bullish outlook on the company's short-term performance, which could influence investor decisions.
See More
Morgan Stanley Upgrades Midstream Companies Ratings
- Rating Upgrade Impact: Morgan Stanley upgraded Antero Midstream and DT Midstream from Underweight to Equal Weight with price targets of $26 and $165 respectively, resulting in a 2.7% increase in Antero Midstream's stock and a 0.9% rise in DT Midstream's stock, indicating a renewed market confidence in midstream companies.
- Antero Midstream Growth Potential: Analysts noted that Antero Midstream is entering a multi-year growth phase driven by Antero Resources' expanding production and capital activities, with a projected one-year total return potential of 26.4%, including a 4.2% dividend yield, suggesting an optimistic outlook for capital returns.
- Strong Performance of DT Midstream: DT Midstream has shown stronger-than-expected growth in its Midwest pipeline operations, with analysts expecting its EBITDA growth to exceed the long-term target of 5%-7%, and a price target of $165 implies a 25.5% one-year total return potential, including a 2.6% dividend yield, reflecting its strengthened market position.
- WaterBridge's Competitive Edge: Morgan Stanley upgraded WaterBridge from Equal Weight to Overweight with a price target of $34, anticipating it will have the strongest EBITDA growth due to its advantageous position in the Delaware Basin and leading water infrastructure, with a one-year total return potential of 33.4%, including a 1% dividend yield, indicating a structural re-rating in its valuation.
See More
Morgan Stanley Upgrades Antero Midstream Corp to Equal-Weight from Underweight
- Company Announcement: Antelope Midstream Corp has announced a change in its weighting strategy for Morgan Stanley, shifting from an underweight to an equal-weight position.
- Market Implications: This adjustment may reflect a more optimistic outlook on Morgan Stanley's performance in the market, potentially influencing investor sentiment.
See More
Antero Resources Announces Q1 2026 Earnings Release Schedule
- Earnings Release Schedule: Antero Resources plans to issue its Q1 2026 earnings report on April 29, 2026, after NYSE trading closes, enhancing transparency and allowing investors to better assess the company's financial health.
- Conference Call Details: A conference call is scheduled for April 30, 2026, at 9:00 AM MT to discuss financial and operational results, followed by a brief Q&A session, which will foster interaction with analysts.
- Participation Information: Investors can dial in at 877-407-9079 (U.S.) or 201-493-6746 (International) to participate in the call, enabling direct communication between the company and its investors, thereby boosting market confidence.
- Webcast Replay: The live webcast will be available on Antero's website, with replays accessible until May 7, 2026, ensuring that investors who cannot attend live can still obtain critical information.
See More
Antero Midstream Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Antero Midstream reported adjusted EBITDA of $288 million for Q1 2026, reflecting a 5% year-over-year increase driven by higher gathering, compression, and processing volumes, thereby enhancing profitability and market competitiveness.
- Acquisition Integration Progress: The company successfully took over operations of newly acquired assets during Winter Storm Fern without outages, demonstrating operational reliability, and is on track to complete water system integration by year-end, further improving operational efficiency and asset utilization.
- Capital Expenditure Plans: The CFO anticipates an increase in capital expenditures as construction season improves, which will drive gradual EBITDA growth, indicating a proactive strategy in expanding infrastructure to meet market demand.
- Leverage Reduction Expectations: The company expects to reduce leverage to 3.0x by year-end 2026, despite a $1.1 billion acquisition and share repurchases, showcasing strong cash flow management and financial stability.
See More
Antero Midstream Reports Q1 2026 Financial Highlights
- Financial Growth: In Q1 2026, Antero Midstream reported revenues of $314 million, an 8% increase year-over-year, with the Gathering and Processing segment contributing $250 million, indicating strong market performance.
- EBITDA Improvement: Adjusted EBITDA reached $288 million, up 5% from the previous year, reflecting enhanced operational efficiency and profitability post-HG Energy acquisition, with expectations for continued high-single digit EBITDA growth.
- Capital Expenditures: Capital expenditures totaled $42 million in Q1, with $26 million allocated to gathering and compression facilities and $15 million to water infrastructure, demonstrating ongoing investment in expanding and optimizing operational networks.
- Share Repurchase: Antero Midstream repurchased 1 million shares for $18 million in Q1, reflecting confidence in its stock value, while having $318 million remaining under its repurchase program as of March 31, further enhancing shareholder returns.
See More
Analysis of AM Dividend Expectations and Market Performance
- Dividend Yield Analysis: AM's current annualized dividend yield stands at 4.18%, and while dividends are not always predictable, historical data suggests that this yield may remain stable going forward, indicating the company's commitment to its dividend policy.
- Price Volatility Range: AM's 52-week low is $16.24 per share and the high is $23.835, with the latest trade at $21.65, demonstrating that the stock price is fluctuating within a reasonable range, which may attract investor interest.
- ETF Holdings Insight: According to ETF Finder, AM constitutes 4.53% of the Westwood Salient Enhanced Midstream Income ETF (Symbol: MDST), which is trading up about 0.5% on the day, reflecting a positive market sentiment towards AM.
- Intraday Trading Performance: In Monday's trading, Antero Midstream Corp shares rose approximately 0.7%, indicating a bullish outlook on the company's short-term performance, which could influence investor decisions.
See More
Morgan Stanley Upgrades Midstream Companies Ratings
- Rating Upgrade Impact: Morgan Stanley upgraded Antero Midstream and DT Midstream from Underweight to Equal Weight with price targets of $26 and $165 respectively, resulting in a 2.7% increase in Antero Midstream's stock and a 0.9% rise in DT Midstream's stock, indicating a renewed market confidence in midstream companies.
- Antero Midstream Growth Potential: Analysts noted that Antero Midstream is entering a multi-year growth phase driven by Antero Resources' expanding production and capital activities, with a projected one-year total return potential of 26.4%, including a 4.2% dividend yield, suggesting an optimistic outlook for capital returns.
- Strong Performance of DT Midstream: DT Midstream has shown stronger-than-expected growth in its Midwest pipeline operations, with analysts expecting its EBITDA growth to exceed the long-term target of 5%-7%, and a price target of $165 implies a 25.5% one-year total return potential, including a 2.6% dividend yield, reflecting its strengthened market position.
- WaterBridge's Competitive Edge: Morgan Stanley upgraded WaterBridge from Equal Weight to Overweight with a price target of $34, anticipating it will have the strongest EBITDA growth due to its advantageous position in the Delaware Basin and leading water infrastructure, with a one-year total return potential of 33.4%, including a 1% dividend yield, indicating a structural re-rating in its valuation.
See More
Morgan Stanley Upgrades Antero Midstream Corp to Equal-Weight from Underweight
- Company Announcement: Antelope Midstream Corp has announced a change in its weighting strategy for Morgan Stanley, shifting from an underweight to an equal-weight position.
- Market Implications: This adjustment may reflect a more optimistic outlook on Morgan Stanley's performance in the market, potentially influencing investor sentiment.
See More
Antero Resources Announces Q1 2026 Earnings Release Schedule
- Earnings Release Schedule: Antero Resources plans to issue its Q1 2026 earnings report on April 29, 2026, after NYSE trading closes, enhancing transparency and allowing investors to better assess the company's financial health.
- Conference Call Details: A conference call is scheduled for April 30, 2026, at 9:00 AM MT to discuss financial and operational results, followed by a brief Q&A session, which will foster interaction with analysts.
- Participation Information: Investors can dial in at 877-407-9079 (U.S.) or 201-493-6746 (International) to participate in the call, enabling direct communication between the company and its investors, thereby boosting market confidence.
- Webcast Replay: The live webcast will be available on Antero's website, with replays accessible until May 7, 2026, ensuring that investors who cannot attend live can still obtain critical information.
See More
