Antero Midstream lifts 2026 cash flow forecast by $370 million
Adjusted EPS of 28 cents missed the 29-cent consensus estimate compiled by Finnhub, and revenue of $327.02 million missed the $353.56 million estimate. Cash flow guidance rose $370 million.
Key takeaways
- Antero Midstream Corporation (AM) reported third-quarter 2026 adjusted EPS of 28 cents, which missed the 29-cent consensus estimate compiled by Finnhub, and revenue of $327.02 million, which missed the $353.56 million estimate. The company raised its 2026 adjusted free cash flow guidance by $370 million after receiving litigation proceeds.
Antero Midstream Corporation (AM) said on Oct. 28 in a release attached to its 8-K filing that its adjusted earnings for the third quarter of 2026 missed the consensus estimate. It also raised its 2026 cash flow guidance by $370 million after receiving litigation proceeds.
The company owns and operates gathering, compression, processing and fractionation assets in the Appalachian Basin, along with integrated water assets that mainly serve Antero Resources Corporation.
Here's how the company did:
- Revenue: $327.02 million vs. $294.82 million a year earlier, against a $353.56 million estimate compiled by Finnhub
- Adjusted EPS: 28 cents, up 4% per share from a year earlier, vs. 29 cents expected, according to Finnhub
- Net income: $393 million, or 82 cents per diluted share
- Adjusted EBITDA: $291 million, up 3% from a year earlier
- Capital expenditures: $51 million, in line with a year earlier
Net income rose far more than adjusted earnings because of a $377 million gain on litigation booked in the quarter. The company's filing excludes that gain from its adjusted measures.
Revenue has risen in each of the last three quarters, from $294.8 million in the third quarter of 2025 to $327.2 million in the second quarter of 2026, according to its SEC filings.
Guidance update
The company updated its 2026 guidance to reflect the Clearwater litigation proceeds. Based on $377 million of proceeds, net of interest expense and current income tax expense, it increased its 2026 adjusted free cash flow guidance before and after dividends by $370 million.
The company said all guidance ranges not referenced in the update remain unchanged.
CEO and President Michael Kennedy said, "Antero Midstream delivered another quarter of year-over-year throughput and earnings growth with flat capital investments." He added that the company expects two drilled but uncompleted growth pads and its water system integration to drive visible EBITDA growth in the fourth quarter of 2026 and 2027.
Share repurchases and leverage
In the third quarter the company repurchased 1.3 million shares for about $27 million. It had approximately $283 million of remaining capacity under its share repurchase program as of Sept. 30.
CFO Justin Agnew said, "We continue to increase our assets while maintaining a strong balance sheet and returning capital to shareholders." He said the company reduced absolute debt by over $400 million during the quarter and called its nearest maturity senior notes. Leverage was 2.8 times as of Sept. 30, a non-GAAP measure.
Operating results
Gathering volumes rose 19% and compression volumes rose 17% from the prior year quarter. Fresh water delivery averaged 89 MBbl/d, down 3% from a year earlier.
The company said curtailments reduced throughput by about 10 Bcf in the third quarter and that it expects about 15 to 20 Bcf of curtailments in the fourth quarter of 2026. It expects to complete its water system integration by year-end.
The filing does not give a share price reaction for the release.