Antero Midstream Corp (AM): Results of Operations and Financial Condition
Antero Midstream Corp (AM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Antero Midstream Announces Second Quarter 2026 Financial and Operating Results Denver, Colorado, July 29, 2026—Antero Midstream Corporation (NYSE: AM) (“Antero Midstream” or the “Company”) today announced its second quarter 2026 financial and operating results. The r
How this was made
The 30-second read
Why it matters
Key new trading inputs are the Q2 operating/financial metrics, the $371M Veolia damages receipt, and the decision to call $650M senior notes due 2028 at par using those proceeds and revolver borrowings. The filing also starts construction on the East Side Express intrastate regional pipeline and reiterates expectations for volume-driven EBITDA growth in the back half of 2026.
Market read
Traders can update AM’s near-term credit and liquidity outlook based on the settlement-funded notes call, while also monitoring segment-level volume trends (gathering up, fresh water down) for cash flow durability.
What to watch
Interest expense rose 16% YoY (driven by financing for the HG Energy acquisition), so even with improved liquidity, earnings sensitivity to financing costs remains a key watch item.
Antero Midstream Announces Second Quarter 2026 Financial and Operating Results
Gathering and compression volumes increased by 19% and 17%, respectively, Adjusted EBITDA increased by 2%, and Adjusted Free Cash Flow after dividends was $80 million. Net Income per diluted share decreased by 8% and Adjusted Net Income per diluted share decreased by 7% compared to the prior year quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $327 million | – | – |
| Net IncomeGAAP | $ 113,515 (in thousands) | – | – |
| Net Income per diluted shareGAAP | $0.24 per diluted share | – | an 8% per share decrease compared to the prior year quarter |
| Adjusted Net Incomenon-GAAP | $ 131,020 (in thousands) | – | – |
| Adjusted Net Income per diluted sharenon-GAAP | $0.27 per diluted share | – | a 7% per share decrease compared to the prior year quarter |
| Adjusted EBITDAnon-GAAP | $ 288,784 (in thousands) | – | a 2% increase compared to the prior year quarter |
| Direct operating expensesGAAP | $ 85 million | – | – |
| General and administrative expenses excluding equity-based compensationGAAP | $12 million | – | – |
| Equity-based compensation expenseGAAP | $11 million | – | – |
| Depreciation expenseGAAP | $37 million | – | – |
| Interest expense, netGAAP | $ 55,680 (in thousands) | – | a 16% increase compared to the prior year quarter |
| Income tax expenseGAAP | $ 40,966 (in thousands) | – | – |
| Net cash provided by operating activitiesGAAP | $ 254,249 (in thousands) | – | – |
| Capital expendituresother | $ 46,678 (in thousands) | – | – |
| Adjusted Free Cash Flow before dividendsnon-GAAP | $ 186,426 (in thousands) | – | – |
| Dividends declaredother | $ 106,801 (in thousands) | – | – |
| Adjusted Free Cash Flow after dividendsnon-GAAP | $ 79,625 (in thousands) | – | – |
| Gathering volumesother | over 4.1 Bcf/d of production | – | a 19% increase year-over-year |
| Compression volumesother | >17% increase compared to the prior year quarter | – | 17% |
| Fresh water delivery volumesother | 82 MBbl/d | – | a 16% decrease compared to the second quarter of 2025 |
| Processing volumes from the Joint Ventureother | 1.6 Bcf/d | – | in line with the prior year quarter |
| Joint Venture fractionation volumesother | 40 MBbl/d | – | in line with the prior year quarter |
| Processing capacity utilizationother | 100% | – | – |
| Fractionation capacity utilizationother | 100% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gathering and ProcessingGathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter. | $272 million | – | – |
| Water HandlingWater Handling revenues include $45 million from other water handling and high rate water transfer services. Fresh water delivery volumes averaged 82 MBbl/d during the quarter, a 16% decrease compared to the second quarter of 2025. | $79 million | – | – |
Capital returns
- During the second quarter of 2026, Antero Midstream repurchased 0.4 million shares for approximately $8 million.
- Antero Midstream had approximately $310 million of remaining capacity under its share repurchase program as of June 30, 2026.
- Dividends declared (accrual-based) were $ 106,801 (in thousands).
What drove it
- Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter.
- Antero Midstream connected 26 wells to its gathering system and serviced 21 wells with its fresh water delivery system during the quarter.
- The Company began its multiyear investment in the East Side Express, its first dry gas regional connectivity expansion project.
- Processing and fractionation capacity were both 100% utilized during the quarter.
- Management expects an increase in volumes across both the gathering and water businesses to drive EBITDA growth in the back half of the year in line with its full year guidance range.
Concerns
- Net Income was $0.24 per diluted share, an 8% per share decrease compared to the prior year quarter.
- Adjusted Net Income was $0.27 per diluted share, a 7% per share decrease compared to the prior year quarter.
- Fresh water delivery volumes averaged 82 MBbl/d, a 16% decrease compared to the second quarter of 2025.
- Interest expense was $56 million, a 16% increase compared to the prior year quarter driven by financing for the HG Energy acquisition.
- Adjusted Free Cash Flow after dividends was $ 79,625 (in thousands), compared with $ 81,893 (in thousands) in the prior year period.
What to watch
- Volume growth across the gathering and water businesses in the back half of the year.
- Execution of water integration projects, which management expects to drive high-single digit EBITDA growth in 2027.
- Construction progress on the East Side Express.
- Use of over $600 million of liquidity and balance sheet capacity for additional growth opportunities and further return of capital to shareholders.
- The completion of the call of $650 million of senior unsecured notes due 2028 at par.
Balance sheet and cash flow
- On July 24, 2026 Antero Midstream received approximately $371 million in damages and interest.
- These proceeds and borrowings under the revolving credit facility are being used to call the $650 million of senior unsecured notes due 2028 at par.
- After calling the $650 million of senior notes due 2028 at par, Antero Midstream has over $600 million of liquidity and no near-term maturities.
- Net cash provided by operating activities was $ 254,249 (in thousands).
- Adjusted Free Cash Flow after dividends was $ 79,625 (in thousands).
Analysis
Antero Midstream reported $327 million of revenues for the three months ended June 30, 2026. Gathering and Processing contributed $272 million and Water Handling contributed $79 million, net of $23 million of amortization of customer relationships. Operating activity was led by gathering and compression volume growth of 19% and 17%, respectively, versus the prior year quarter. Processing volumes were 1.6 Bcf/d, fractionation volumes were 40 MBbl/d, and both processing and fractionation capacity were 100% utilized.
Profit performance was positive at the Adjusted EBITDA level but weaker at the per-share income level. Adjusted EBITDA was $ 288,784 (in thousands), compared with $ 284,288 (in thousands) in the prior year period. GAAP Net Income was $ 113,515 (in thousands), compared with $ 124,513 (in thousands), while Net Income per diluted share was $0.24 per diluted share, an 8% per share decrease. Adjusted Net Income was $ 131,020 (in thousands), versus $ 137,617 (in thousands), and Adjusted Net Income per diluted share declined 7% to $0.27 per diluted share. Interest expense, net increased to $ 55,680 (in thousands) from $ 47,962 (in thousands), driven by financing for the HG Energy acquisition.
Cash generation remained material, although lower than the prior year period on the reported non-GAAP measure. Net cash provided by operating activities was $ 254,249 (in thousands), Adjusted Free Cash Flow before dividends was $ 186,426 (in thousands), and Adjusted Free Cash Flow after dividends was $ 79,625 (in thousands). Capital expenditures were $ 46,678 (in thousands), including $33 million in gathering and compression and $14 million in water infrastructure as described in the release. The Company also repurchased 0.4 million shares for approximately $8 million and had approximately $310 million of remaining repurchase capacity as of June 30, 2026.
The balance-sheet event after quarter-end is central to the release. Antero Midstream received approximately $371 million in damages and interest from Veolia on July 24, 2026, following the Colorado Supreme Court's June 23, 2026 affirmation of the Company's Clearwater Facility claims. The proceeds and revolving-credit-facility borrowings are being used to call $650 million of senior unsecured notes due 2028 at par. Management said that after the call it has over $600 million of liquidity and no near-term maturities.
The forward operating focus is volume growth and project execution. Management expects gathering and water volume increases to drive EBITDA growth in the back half of the year in line with its full year guidance range, although the numerical range was not included in the provided filing text. The Company began its multiyear East Side Express regional connectivity investment during the quarter, and management expects water integration projects to drive high-single digit EBITDA growth in 2027. The main reported operational offset was fresh water delivery volumes of 82 MBbl/d, down 16% from the second quarter of 2025.
Management, verbatim
During the quarter, Antero Midstream gathered over 4.1 Bcf/d of production, which was a 19% increase year-over-year and a new company record. Our water integration projects remain on track, which we expect to drive high-single digit EBITDA growth in 2027.
Michael Kennedy, CEO and President of Antero Midstream
In addition, during the quarter we commenced initial construction of our first intrastate regional pipeline, the “East Side Express”, which will enhance regional connectivity within our operating areas. This pipeline positions Antero Midstream for future dry gas growth in West Virginia with decades of underlying inventory to capture growing regional demand.
Michael Kennedy, CEO and President of Antero Midstream
The second quarter marked our twelfth consecutive quarter of generating Free Cash Flow after dividends, highlighting the consistency of operations over the last three years. Looking ahead, we expect an increase in volumes across both the gathering and water businesses to drive EBITDA growth in the back half of the year in line with our full year guidance range.
Justin Agnew, CFO of Antero Midstream
Not in the filing
stated, not guessed- Numerical full year 2026 guidance range for revenue
- Numerical full year 2026 guidance range for Adjusted EBITDA
- Numerical guidance for gross margin, operating expenses, tax rate, capital expenditures, dividends, or free cash flow
- Previous-release outlook for comparison with actual results
- GAAP gross profit and gross margin
- GAAP operating income
- Cash balance as of June 30, 2026
- Total debt balance as of June 30, 2026
- Prior-quarter comparisons for reported financial and operating metrics
- Prior-year revenue amounts and percentage changes for total revenue, Gathering and Processing revenue, and Water Handling revenue
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Antero Midstream’s Q2 2026 financial and operating results, plus updates on its Veolia Clearwater Facility litigation and capital-structure actions.
Ticker impact
Antero Midstream reported Q2 2026 results, including $114M net income, $289M adjusted EBITDA, and a $371M Veolia damages receipt used to call $650M notes.
Moderately positive bias for AM as liquidity improves and leverage headroom increases, though water volume softness may cap upside.
The filing discloses concrete financial datapoints (income, EBITDA, capex, free cash flow) plus a specific capital-structure action (call at par) funded by a large settlement receipt, which typically supports credit and equity sentiment. However, the text also shows a 16% decline in fresh water delivery volumes year over year, which can temper the multiple expansion.
Market effects
Provides a datapoint on midstream cash generation and settlement-driven deleveraging, relevant to credit-sensitive sentiment in US natural gas midstream.
East Side Express construction highlights ongoing regional connectivity buildout in West Virginia, potentially supporting local demand capture narratives.
Limited direct global linkage; primarily US energy infrastructure and credit markets.
Counterpoint
The settlement and debt call may be viewed as one-time balance-sheet support, while recurring water delivery volumes declined 16% YoY, which could pressure longer-term cash flow quality.
Key entities
- companyAntero Midstream Corporation
NYSE-listed midstream operator reporting Q2 2026 results, settlement proceeds from Veolia, and a $650M 2028 notes call at par.
- counterpartyVeolia
Counterparty in the Clearwater Facility dispute; paid approximately $371M in damages and interest in July 2026.
- projectEast Side Express
First intrastate regional pipeline construction commenced in Q2 2026 to enhance dry gas connectivity and optionality.
