Antero Midstream Corporation (AM) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call indicates strong financial performance, with significant free cash flow growth and debt reduction. The strategic focus on leveraging existing assets and integrating acquisitions suggests a solid growth trajectory. The Q&A section revealed no major concerns, and the company's plans for shareholder returns and capital investments are well-received. The risks associated with the HG Midstream acquisition and market conditions are acknowledged, but the overall sentiment remains positive due to optimistic guidance and consistent growth projections.
Key Financial Performance
EBITDA growth 7% year-over-year in 2025, marking the 11th consecutive year of growth since IPO in 2014. Growth driven by capital-efficient organic growth and throughput from AR.
Free cash flow after dividends Increased by 30% year-over-year in 2025, driven by capital-efficient organic growth and throughput from AR. Reached a company record of $325 million for the full year.
Adjusted EBITDA (Q4 2025) $285 million, a 4% increase year-over-year, driven by an increase in gathering and compression volumes.
Free cash flow after dividends (Q4 2025) $85 million, used to reduce leverage to 2.7x and repurchase approximately $48 million of AM shares.
Return on Invested Capital (ROIC) 20% in 2025, driven by capital efficiencies from leveraging existing assets.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Acquisition of HG Midstream: Antero Midstream acquired HG Midstream for $1.1 billion, adding over 400 undeveloped locations in the Marcellus shale. This acquisition aligns with their strategy to generate consistent free cash flow.
Expansion in dry gas assets: Investments in dry gas assets and integration of water systems are expected to enhance downstream deliverability and improve reliability in the dry gas regime.
EBITDA Growth: Achieved 7% year-over-year EBITDA growth in 2025 and forecasted 8% growth in 2026.
Free Cash Flow Growth: Free cash flow after dividends increased by 30% in 2025 and is expected to grow by 11% in 2026.
Capital Efficiency: Capital budget for 2026 is set at $190 million to $220 million, focusing on integrating water systems and expanding dry gas assets.
Debt Reduction and Share Repurchases: Reduced leverage to 2.7x and repurchased $48 million of shares in Q4 2025. Plan to maintain low leverage and balanced capital returns in 2026.
Organic Growth Strategy: Focus on leveraging existing assets and integrating acquired assets to drive growth and returns.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Acquisition of HG Midstream: The acquisition of HG Midstream for $1.1 billion introduces risks related to integration challenges, potential cost overruns, and achieving expected synergies, particularly with the integration of the water system and dry gas assets.
Capital Budget for 2026: The planned capital investment of $190 million to $220 million includes risks of cost escalation, delays in project execution, and potential underperformance of new infrastructure projects, especially in the dry gas portion of the acreage.
Leverage and Debt Management: While leverage has been reduced to 2.7x, the company’s strategy of maintaining leverage in the low 3x range could pose risks if market conditions deteriorate or if there are unexpected financial pressures.
Reliance on Free Cash Flow Growth: The company’s strategy heavily relies on free cash flow growth to fund dividends, debt reduction, and share repurchases. Any disruptions in cash flow generation could impact these financial commitments.
Market and Economic Conditions: The company’s performance is exposed to broader market and economic conditions, including fluctuations in gas prices and demand, which could adversely affect EBITDA and free cash flow projections.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
2026 EBITDA Growth: Expected 8% year-over-year growth, reaching over $1.2 billion at the midpoint.
2026 Free Cash Flow Growth: Forecasted to grow by 11% year-over-year, reaching $360 million after dividends.
2026 Capital Budget: Budgeted at $190 million to $220 million, focusing on well connect and water capital, compression assets, high-pressure gathering trunk lines, and integration of water systems.
2027 EBITDA Growth: Projected high single-digit growth as benefits from the HG Midstream acquisition and synergies are realized.
2027 Free Cash Flow Growth: Expected further expansion after dividends due to modest capital budgets and growth in the water business.
Water Business Growth: Anticipated growth in 2027 as the company begins servicing locations on HG acquired acreage.
Leverage and Balance Sheet: Maintaining leverage in the low 3x range in 2026, with a focus on debt reduction and share repurchases.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Dividend per share: $0.90 per share dividend forecasted for 2026
Free cash flow after dividends: $360 million forecasted for 2026, an 11% increase compared to 2025
Share repurchases: Approximately $48 million of AM shares repurchased during Q4 2025
Return of capital program: Balanced return of capital program in 2026, including share repurchases and debt reduction
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is the longer-term growth trajectory for the company post-2027 with a 3-rig and 2-crew program?
A:The 3-rig, 2-crew program provides continued growth even past 2027, with about a couple of hundred million a day of growth on throughput volumes. The company expects mid- to high single-digit EBITDA growth, consistent with the growth experienced over the past 11 years and projected for 2025 and 2026.
Q:What are the growth upside plans for AR and their implications for AM in terms of EBITDA growth and capital requirements?
A:There is no additional capital required for AM beyond the outlined budgets, as the necessary infrastructure is already in place. For AR, the company is well positioned due to firm transport optionality, access to demand centers like the Gulf Coast for LNG, and being in the right part of the country. AR is expected to meet growing demand over the next 5 to 10 years.
Q:Review of Unclear Management Responses
A:None of the questions appeared to be avoided or lacked clarity in the responses provided by management.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AR cash
AR rig
Antero Midstream
CFO Antero
Director Finance
Finance Director
Greetings Antero
HG Midstream
IPO cash
Justin detail
Midstream CFO
Midstream Instructions
Midstream Investor
Midstream bolt
Midstream development
QA home
Relations Antero
Resources acquisition
acquisition HG
acquisition synergy
acreage Justin
anteromidstreamcom presentation
asset fit
asset visibility
benefit acquisition
bolt asset
budget cash
capital AR
capital budget
conference Katzenberg
core shale
crew development
detail remark
development capital
development program
digit benefit
dividend Justin
dividend capital
fit portfolio
flow IPO
flow digit
gas asset
AM Transcript
Antero Midstream Corporation (AM) Q4 2025 Earnings Call Transcript
Positive2-12
The earnings call indicates strong financial performance, with significant free cash flow growth and debt reduction. The strategic focus on leveraging existing assets and integrating acquisitions suggests a solid growth trajectory. The Q&A section revealed no major concerns, and the company's plans for shareholder returns and capital investments are well-received. The risks associated with the HG Midstream acquisition and market conditions are acknowledged, but the overall sentiment remains positive due to optimistic guidance and consistent growth projections.
Antero Midstream Corporation (AM) Q3 2025 Earnings Call Transcript
Positive10-30
The earnings call summary shows strong financial performance with a 94% increase in free cash flow and significant debt reduction. The company has increased its free cash flow guidance, reduced capital expenses, and plans for additional shareholder returns. Despite some operational and regulatory risks, the optimistic guidance and strategic positioning in LNG and Northeast demand growth are positive indicators. The Q&A section reveals some challenges, but the overall sentiment remains positive due to strong financial metrics and strategic plans.
Antero Midstream Corporation (AM) Q2 2025 Earnings Call Transcript
Positive7-31
The earnings call summary indicates strong financial performance with record EBITDA and free cash flow, alongside reduced leverage. The shareholder return strategy, including dividends and share repurchases, is robust. However, potential risks such as regulatory changes and supply chain disruptions were noted. The Q&A revealed optimism about demand opportunities and strategic capital allocation, though some responses lacked clarity. Overall, the positive financial metrics and shareholder return plans outweigh the uncertainties, suggesting a positive stock price movement.
Earnings call transcript: Antero Midstream beats Q1 2025 expectations, stock rises
Positive5-1
The earnings call reveals positive financial performance, with a 3% increase in EBITDA and a 7% increase in free cash flow after dividends. The company is effectively managing leverage and capital allocation, with significant share repurchases and a strong dividend strategy. Despite competitive pressures and regulatory uncertainties, the management's confidence in propane demand and strategic M&A plans provide optimism. The Q&A highlights potential growth in local power demand and industrial projects, adding to the positive outlook. Overall, these factors suggest a likely positive stock price movement.
AM Slides
AM Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
