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    AM
    Earnings call· Mar 2026(Q1 FY26)

    Antero Midstream Q1 FY26 earnings call AM

    Apr 30, 2026 Source

    Executive summary

    Antero Midstream Q1 FY26 — Strong Start with Acquisition Integration and Growth

    Antero Midstream delivered a strong first quarter, successfully integrating its largest acquisition to date and navigating adverse winter weather without operational outages. The company is focused on enhancing connectivity within its operating areas and capitalizing on growing demand for U.S. energy, particularly through local power projects. Management reiterated its full-year 2026 guidance and expects continued EBITDA growth and deleveraging throughout the year.

    Highlights

    4

    • Adjusted EBITDA increased 5% year-over-year to $288 million.

    • Free cash flow after dividends increased 8% year-over-year to $85 million.

    • Successfully closed the company's largest acquisition to date, valued at $1.1 billion.

    • Exited the quarter with leverage in the low 3x range and over $800 million of liquidity.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year 2026 Guidance
    Unchanged
    high materiality
    High
    EBITDA Growth
    High single-digit growth
    high materiality
    High
    Leverage Target
    3.0x
    high materiality
    High
    Capital Expenditures
    Increase
    medium materiality
    High
    EBITDA Growth
    Gradual growth
    medium materiality
    High
    EBITDA Growth (AR 3 rigs)
    In excess of high single-digit growth
    medium materiality
    Medium

    Operational metrics

    6
    Adjusted EBITDA
    $288M5% increase YoY
    Q1 FY26

    Driven by an increase in gathering, compression and processing volumes.

    Leverage ratio
    Low 3x range
    Q1 FY26 end

    After a $1.1 billion acquisition and share repurchases.

    Liquidity
    $800M
    Q1 FY26 end

    Available liquidity.

    Capital expenditure for water system integration
    $25M
    Total

    Capital needed to fully integrate the acquired HG assets' water system.

    Capital expenditure for gathering system integration
    $5M
    Total

    Cost to connect the gathering system of acquired assets, almost fully integrated.

    Return on invested capital (ROIC)
    High teens, 20%
    Base business

    Base business delivers very high rates of return.

    Industry KPIs

    2
    MetricValueDetails
    D c efficiency rig activity3rigs
    FCF shareholder distributions$192M before dividends, $85M after dividendsUSD

    Deals & partnerships

    1
    Antero ResourcesAcquisition of assets from Antero Resources$1.1B

    Largest acquisition to date for Antero Midstream, closed in February 2026, ahead of initial expectations. Assets are being integrated, with water system integration expected by year-end 2026.

    Capital programs

    3
    Dry Gas Compression Expansioncompleted

    Commissioned at the end of the first quarter 2026. Utilized relocated and repurposed units to support the first dry gas Marcellus pad in over a decade.

    Water System Integration (Acquired Assets)underway$25M
    Spent to date: Halfway through
    Start: Q1 FY26

    Benefit: Servicing completions on acquired assets in 2027

    Capital investment to connect Antero Midstream's water system to the acquired water system. Initial efforts commenced in Q1 2026.

    Gathering System Integration (Acquired Assets)nearing completion$5M

    Almost already fully integrated, costing $5 million to connect.

    What to watch in Q2 FY26

    4

    Leverage ratio

    Year-end 2026
    CurrentLow 3x range
    TargetTowards 3.0x

    Why it matters

    Achieving the 3.0x leverage target is a key long-term financial goal and indicates balance sheet resilience.

    This cash flow profile results in declining leverage throughout the year towards 3.0x at year-end 2026, in line with our long-term target.

    Q&A highlights

    5

    What is the opportunity set for Antero Midstream regarding in-basin demand, specifically data centers, and can you provide any generic metrics like EBITDA per gigawatt?

    Antero Midstream is participating in all discussions for in-basin demand projects, as most require infrastructure build-out from existing pipelines, water, and other facilities. The company positions itself as the 'industrial builder' of Northern West Virginia due to its extensive infrastructure and integrated development with Antero Resources. They declined to provide generic EBITDA per gigawatt metrics.

    “AM is participating in all of those because the vast majority of these need some infrastructure laterals off existing pipe, that Brendan talked about, water, some sort of infrastructure build out from the existing infrastructure and AM got seated table, all those discussions because like I mentioned, we are the industrial builder of Northern West Virginia.”

    asked by John Mackay · answered by Michael Kennedy

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Initiatives and Acquisition Integration

    Antero Midstream successfully closed its largest acquisition to date in February 2026, ahead of initial expectations. The company is actively integrating the acquired assets, with initial water system integration efforts underway and expected to be completed by year-end 2026. This integration will enable AM to service completions on the acquired assets starting in 2027.

    02

    Operational Performance and Volume Growth

    Despite adverse winter weather conditions, Antero Midstream reported a 5% year-over-year increase in Adjusted EBITDA to $288 million. The growth was primarily driven by increased gathering, compression, and processing volumes. The company commissioned a dry gas compression expansion in Q1 2026, supporting its first dry gas Marcellus pad in over a decade.

    03

    Capital Efficiency and Development Program

    The company maintains a balanced and consistent development program with 3 rigs currently operating on AM dedicated acreage: one on the rich gas system, one on the dry gas system, and one on the acquired blended system. This program is designed to deliver low-cost volume growth and is expected to drive high single-digit EBITDA growth for the foreseeable future. Capital expenditures are expected to increase in the coming quarters⏳ due to improved construction conditions.

    04

    Financial Strength and Deleveraging

    Antero Midstream generated $192 million of free cash flow before dividends and $85 million after dividends in Q1 2026, an 8% year-over-year increase. Despite the $1.1 billion acquisition and share repurchases, the company exited the quarter with leverage in the low 3x range and over $800 million of liquidity. Management targets declining leverage towards 3.0x by year-end 2026.

    05

    Future Growth Opportunities

    The company is actively pursuing opportunities related to increasing demand for U.S. energy, particularly from recent geopolitical events and data center announcements. Antero Midstream sees itself as the 'industrial builder' of Northern West Virginia, leveraging its existing infrastructure and integrated planning with Antero Resources to capitalize on local demand projects, which are expected to provide incremental returns beyond the base business.

    AI-generated summary of the company’s earnings call. Not investment advice.