Antero Midstream Announces Third Quarter 2026 Financial and Operating Results
Antero Midstream Corp (AM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Antero Midstream Announces Third Quarter 2026 Financial and Operating Results Denver, Colorado, October 28, 2026—Antero Midstream Corporation (NYSE: AM) (“Antero Midstream” or the “Company”) today announced its third quarter 2026 financial and operating results. The
How this was made
The 30-second read
Why it matters
The updated guidance raises free cash flow expectations, improves leverage, and supports continued share repurchases, likely prompting a positive price reaction.
Market read
The earnings beat and revised guidance provide a fresh catalyst for AM, suggesting upside potential for traders.
What to watch
Potential curtailments in Q4 could temper throughput growth and cash flow expectations.
Antero Midstream reported third-quarter Net Income of $393 million, or $0.82 per diluted share, supported by a $377 million gain on litigation, while gathering and compression volumes increased by 19% and 17%, respectively.
Gathering and compression throughput grew 19% and 17%, respectively, Adjusted EBITDA increased 3% to $291 million, capital expenditures were $51 million, and the Company reduced absolute debt by over $400 million during the quarter. Reported Net Income and free cash flow were materially elevated by the $377 million gain on litigation.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $327.0M | – | – |
| Gathering and compression revenue from Antero Resources, three months ended September 30GAAP | $270.5M | – | – |
| Water handling revenue from Antero Resources, three months ended September 30GAAP | $79.33M | – | – |
| Water handling revenue from third party, three months ended September 30GAAP | $24K | – | – |
| Amortization of customer relationships, revenue deduction, three months ended September 30GAAP | −$22.87M | – | – |
| Direct operating expenses, three months ended September 30GAAP | $83.25M | – | – |
| General and administrative expense, three months ended September 30GAAP | $21.12M | – | – |
| Depreciation expense, three months ended September 30GAAP | $37.96M | – | – |
| Gain on litigation, three months ended September 30GAAP | −$377.0M | – | – |
| Total operating expenses, three months ended September 30GAAP | −$230.2M | – | – |
| Operating income, three months ended September 30GAAP | $557.2M | – | – |
| Interest expense, net, three months ended September 30GAAP | −$50.75M | – | 8% increase |
| Income tax expense, three months ended September 30GAAP | −$140.1M | – | – |
| Net Income, three months ended September 30GAAP | $393M | – | – |
| Net income per common share, diluted, three months ended September 30GAAP | $0.82 | – | 242% per share increase |
| Net income per common share, basic, three months ended September 30GAAP | $0.83 | – | – |
| Adjusted Net Income, three months ended September 30non-GAAP | $134M | – | – |
| Adjusted Net Income per diluted share, three months ended September 30non-GAAP | $0.28 per diluted share | – | 4% per share increase |
| Adjusted EBITDA, three months ended September 30non-GAAP | $291M | – | 3% increase |
| Capital expenditures, accrual basis, three months ended September 30non-GAAP | $51M | – | in line with the prior year quarter |
| Capital expenditures, cash basis, three months ended September 30GAAP | $44.72M | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $600.3M | – | – |
| Adjusted Free Cash Flow before dividends, three months ended September 30non-GAAP | $555M | – | – |
| Adjusted Free Cash Flow after dividends, three months ended September 30non-GAAP | $449M | – | – |
| Leverage as of September 30, 2026non-GAAP | 2.8x | – | – |
| Consolidated total debt as of September 30, 2026GAAP | $3.18B | – | – |
| Consolidated net debt as of September 30, 2026non-GAAP | $3.18B | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | — | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $1.09B | – | – |
| Net cash used in investing activities, nine months ended September 30GAAP | −$866.7M | – | – |
| Net cash used in financing activities, nine months ended September 30GAAP | −$489.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gathering and ProcessingGathering volumes increased by 19% compared to the prior year quarter. Gathering revenue from Antero Resources was $270,542 thousand and segment revenue was net of $13,846 thousand of amortization of customer relationships. | $257M | – | – |
| Water HandlingWater Handling revenue included $43 million from other water handling and high rate water transfer services. Other water handling volumes increased by 128%, while fresh water delivery volumes decreased by 3% compared to the third quarter of 2025. | $70M | – | – |
Twelve Months Ended December 31, 2026 outlook
- NoteNet Income: $765 million to $815 million
- NoteInterest Expense: $200 million to $220 million
- NoteCurrent Income Tax Expense: $10 million to $20 million
- NoteAdjusted Free Cash Flow Before Dividends: $1,125 million to $1,185 million
- NoteAdjusted Free Cash Flow After Dividends: $700 million to $760 million
- NoteNet Income change vs. prior guidance at midpoint: $280 million
- NoteInterest Expense change vs. prior guidance at midpoint: $(10) million
- NoteCurrent Income Tax Expense change vs. prior guidance at midpoint: $15 million
- NoteAdjusted Free Cash Flow Before Dividends change vs. prior guidance at midpoint: $370 million
- NoteAdjusted Free Cash Flow After Dividends change vs. prior guidance at midpoint: $370 million
Capital returns
- During the third quarter of 2026, Antero Midstream repurchased 1.3 million shares for approximately $27 million.
- Antero Midstream had approximately $283 million of remaining capacity under its share repurchase program as of September 30, 2026.
- Dividends declared (accrual-based) were $106,267 thousand during the third quarter of 2026, compared to $107,187 thousand during the third quarter of 2025.
- Dividends to common stockholders were $(327,547) thousand during the nine months ended September 30, 2026, compared to $(331,820) thousand during the nine months ended September 30, 2025.
- Repurchases of common stock were $(53,552) thousand during the nine months ended September 30, 2026, compared to $(86,669) thousand during the nine months ended September 30, 2025.
What drove it
- Gathering volumes were 374,207 MMcf, an increase of 58,488 MMcf or 19%.
- Compression volumes were 367,246 MMcf, an increase of 52,517 MMcf or 17%.
- Well pad compression volumes were 72,864 MMcf, compared to — in the prior year quarter.
- Other water handling volumes were 11,320 MBbl, an increase of 6,354 MBbl or 128%.
- Fresh water delivery volumes were 8,204 MBbl, a decrease of 268 MBbl or 3%.
- Average realized gathering fees were $0.37/Mcf, a 3% increase.
- Processing capacity and fractionation capacity were both 100% utilized during the quarter.
- The Company connected 22 wells to its gathering system and serviced 22 wells with its fresh water delivery system.
- The Company expects to place in service 80 MMcf/d of additional compression capacity in the liquids-rich corridor in the fourth quarter of 2026.
- The Company expects to complete water system integration efforts by year-end.
Concerns
- There was approximately 10 Bcf of reduced throughput due to curtailments during the quarter.
- Antero Midstream expects approximately 15 to 20 Bcf of curtailments in the fourth quarter of 2026.
- Centralized compression volumes decreased by 6% and high pressure gathering volumes decreased by 8%.
- Processing volumes from the joint venture averaged 1.6 Bcf/d, and the selected operating data reported processing volumes decreased by 6%.
- Reported Net Income, operating income, operating cash flow and Adjusted Free Cash Flow included the $377 million gain on litigation.
What to watch
- Completion of the water system integration efforts by year-end.
- Fourth-quarter utilization of the two drilled but uncompleted growth pads using the fresh water system.
- Placement in service of 80 MMcf/d of additional compression capacity in the liquids-rich corridor in the fourth quarter of 2026.
- The extent of expected fourth-quarter curtailments of approximately 15 to 20 Bcf.
- Execution of East Side Express, the Company's first regional connectivity expansion project.
- Delivery of 2026 Adjusted Free Cash Flow before dividends guidance of $1,125 million to $1,185 million and Adjusted Free Cash Flow after dividends guidance of $700 million to $760 million.
Balance sheet and cash flow
- Cash and cash equivalents were — as of September 30, 2026.
- Restricted cash was — as of September 30, 2026.
- Total assets were $6,341,080 thousand as of September 30, 2026, compared to $5,884,116 thousand as of December 31, 2025.
- Long-term debt was $3,153,695 thousand as of September 30, 2026, compared to $3,222,530 thousand as of December 31, 2025.
- Total liabilities were $4,126,224 thousand as of September 30, 2026, compared to $3,912,075 thousand as of December 31, 2025.
- Total stockholders' equity was $2,214,856 thousand as of September 30, 2026, compared to $1,972,041 thousand as of December 31, 2025.
- Net cash provided by operating activities was $1,093,171 thousand during the nine months ended September 30, 2026.
- Acquisition of HG Midstream was $(1,103,032) thousand during the nine months ended September 30, 2026.
- Proceeds from asset sales were $377,433 thousand during the nine months ended September 30, 2026.
- Issuance and borrowings of long-term debt were $2,410,000 thousand and repayments of long-term debt were $(2,483,200) thousand during the nine months ended September 30, 2026.
Analysis
Antero Midstream delivered operating growth in the third quarter of 2026. Gathering volumes increased 19% to 374,207 MMcf and compression volumes increased 17% to 367,246 MMcf. Revenue was $327,022 thousand, compared with $294,821 thousand in the prior-year quarter. Gathering and Processing segment revenue was $257 million and Water Handling segment revenue was $70 million. Other water handling volumes increased 128%, while fresh water delivery volumes declined 3%. Processing and fractionation capacity were both 100% utilized during the quarter.
Reported profitability was dominated by the $377 million gain on litigation. Net Income was $393 million, or $0.82 per diluted share, compared with $115,984 thousand and $0.24 per diluted share in the prior-year quarter. The gain on litigation drove total operating expenses to $(230,206) thousand and operating income to $557,228 thousand. Adjusted Net Income was $134 million, or $0.28 per diluted share, a 4% per share increase, while Adjusted EBITDA increased 3% to $291 million. Direct operating expenses increased to $83,249 thousand from $57,886 thousand, and interest expense, net increased 8% to $51 million.
Capital investment remained restrained relative to operating growth. Capital expenditures were $51 million, in line with the prior-year quarter, including $37 million in gathering and compression and approximately $14 million in water infrastructure. Adjusted Free Cash Flow before dividends was $555 million and Adjusted Free Cash Flow after dividends was $449 million, both including the litigation gain. Net cash provided by operating activities was $600,298 thousand, compared with $212,836 thousand in the prior-year quarter. The Company repurchased 1.3 million shares for approximately $27 million and had approximately $283 million of remaining repurchase capacity.
The balance sheet and capital allocation update included leverage of 2.8x as of September 30, 2026. The Company stated that it reduced absolute debt by over $400 million during the quarter, called its nearest maturity senior notes, and accelerated share repurchases after achieving its leverage target. Consolidated net debt was $3,176,800 thousand, with cash and cash equivalents reported as —. The Company also reported that its share count had declined by 4 million shares compared with the prior year.
Management increased 2026 Adjusted Free Cash Flow before and after dividends guidance by $370 million at the midpoint to reflect receipt of the Clearwater litigation proceeds. The updated ranges are $1,125 million to $1,185 million before dividends and $700 million to $760 million after dividends. The updated Net Income range is $765 million to $815 million. Fourth-quarter execution depends on completing water-system integration by year-end, beginning fresh-water service to two drilled but uncompleted pads, placing 80 MMcf/d of compression capacity in service, and managing expected curtailments of approximately 15 to 20 Bcf.
Management, verbatim
Antero Midstream delivered another quarter of year-over-year throughput and earnings growth with flat capital investments. On the operational front, we are currently servicing two drilled but uncompleted growth pads utilizing our legacy water system and remain on track to complete our HG water system integration efforts by year-end. These growth pads and integration efforts are expected to drive visible EBITDA growth in the fourth quarter of 2026 and 2027.
Michael Kennedy, CEO and President of Antero Midstream
We continue to increase our assets while maintaining a strong balance sheet and returning capital to shareholders. This includes reducing absolute debt by over $400 million during the quarter, calling our nearest maturity senior notes, and accelerating share repurchases once our leverage target was achieved. Including the internally financed HG acquisition earlier this year, our leverage is flat and our share count has declined by 4 million shares compared to this time last year.
Justin Agnew, CFO of Antero Midstream
Not in the filing
stated, not guessed- Gross margin
- Gross margin guidance
- Revenue guidance
- Operating expense guidance
- Tax rate guidance
- Prior-quarter comparisons for third-quarter financial metrics
- Prior-year segment revenue after amortization of customer relationships
- Prior-year Adjusted Net Income per diluted share
- Previous-release outlook for comparison with reported results
AlphAI 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
Antero Midstream (NYSE: AM) filed a Form 8‑K reporting its Q3 2026 financial results and revising its 2026 guidance after a large litigation settlement.
Ticker impact
Antero Midstream reported Q3 2026 results with a 242% net income increase and updated 2026 guidance after receiving $377M litigation proceeds.
likely upward pressure as investors price in higher cash flow and lower leverage.
The earnings beat and revised guidance increase expected cash flow, improve leverage metrics, and signal continued share repurchases, all supportive of a price rise.
Market effects
Midstream and energy infrastructure sector may see modest uplift from higher throughput and cash flow expectations.
U.S. energy infrastructure investors could benefit from improved balance sheet metrics.
Limited to U.S. midstream equities; no broader macro impact.
Counterpoint
If the litigation gain is a one-time item, the guidance boost may be overstated, limiting upside.
Key entities
- companyAntero Midstream Corp
U.S. midstream energy infrastructure provider.
- eventClearwater litigation proceeds
One‑time $377M gain that prompted guidance update.
