A month has gone by since the last earnings report for Antero Midstream Corporation (AM). Shares have lost about 2.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Antero Midstream due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Antero Midstream's Q2 Earnings & Revenues Beat Estimates
Antero Midstream 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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Antero Midstream has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Antero Midstream has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Antero Midstream Corporation (AM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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