Antero Midstream Q2 Earnings Beat on Higher Gathering Volumes

Antero Midstream Corporation AM reported second-quarter 2025 earnings per share of 26 cents, which beat the Zacks Consensus Estimate of 24 cents. The bottom line also increased from the year-ago quarter’s level of 18 cents.

Total quarterly revenues of $305 million beat the Zacks Consensus Estimate of $292 million. The top line also improved from $270 million in the year-ago quarter.

The strong quarterly results can be attributed to increased gathering and compression volumes and higher average fees realized across major segments.

Antero Midstream Corporation Price, Consensus and EPS Surprise

Antero Midstream Corporation price-consensus-eps-surprise-chart | Antero Midstream Corporation Quote

Operational Performance

Average daily compression volumes were 3,447 million cubic feet (MMcf/d) compared with 3,246 MMcf/d in the year-ago quarter. The reported figure was above our estimate of 3,341 MMcf/d. On a per-Mcf basis, the compression fee was 22 cents, which increased almost 5% from 21 cents a year ago.

High-pressure gathering volumes totaled 3,221 MMcf/d, up 8% from the year-ago level of 2,994 MMcf/d. The figure was also above our estimate of 2,943 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 23 cents, higher than the year-ago quarter’s 22 cents.

Low-pressure gathering volumes averaged 3,460 MMcf/d compared with 3,258 MMcf/d a year ago.  The figure was below our estimate of 3,481 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 36 cents, which remained flat year over year. The reported figure was in line with our estimate.

Freshwater delivery volumes were registered at 98 MBbls/d, up 21% from the prior-year quarter’s figure of 81 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.37, compared with $4.31 a year ago. The figure was also above our estimate of $4.32.

Operating Expenses

Direct operating expenses amounted to $63.1 million, up from $56.4 million recorded a year ago.

Antero Midstream’s total operating expenses totaled $119 million, up from $117 million recorded in the corresponding period of 2024.

Balance Sheet

As of June 30, 2025, the company had no cash and cash equivalents. The company also had a long-term debt of $3,024 million.

Outlook

Antero Midstream projects adjusted net income for the year to be in the range of $510-$550 million. Capital expenditures for 2025 are expected to be between $170-$190 million.

AM’s Zacks Rank & Other Key Picks

Currently, AM carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the energy sector are Viper Energy Inc. VNOM, Galp Energia SGPS SA GLPEY and Enbridge, Inc. ENB, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.

Viper Energy generates strong, steady royalty income from its royalty acres in the prolific Permian Basin, with active rigs providing ample growth potential. The company boasts a lower debt-to-capitalization ratio than the composite stocks in the energy sector, indicating a healthier financial position.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research