Antero Midstream (NYSE:AM) Announces Pricing of Upsized Private Placement

Antero Midstream Corporation (NYSE:AM) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 8, the company announced the pricing of an upsized private placement to eligible purchasers of $650 million in aggregate principal amount of 5.75% senior unsecured notes due 2033 at par. Antero Midstream Corporation (NYSE:AM) expects to receive net proceeds of approximately $642 million, after deducting the initial purchasers’ discounts and estimated expenses. Antero Midstream Corporation (NYSE:AM) plans to use the net proceeds from the offering, along with borrowings under the revolving credit facility, to redeem in full 5.75% senior notes due 2027 at a redemption price of 100% plus accrued but unpaid interest.

During Q2 2025, Antero Midstream Corporation (NYSE:AM) gathered 3.5 Bcf/d of production, reflecting 6% rise YoY and its new record. Furthermore, the growth coincides with strong demand improvement seen along the US Gulf Coast LNG facilities over the previous year. Moving forward, Antero Midstream Corporation (NYSE:AM) expects healthy demand growth from Gulf Coast LNG facilities and natural gas fired power demand due to the data center growth in Appalachia. Riverwater Partners, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“During the quarter, we increased our exposure to the energy transition by adding Range Resources (RRC) and Antero Midstream Corporation (NYSE:AM) to our portfolio. Both companies play critical roles in energy and electrification. Electrification is expected to see significant demand growth in the coming years and decades.

Antero specializes in transporting, gathering and processing natural gas as well as operating water handling for its customers. It acts as a toll company with stable cash flows and sports a 5.6% dividend yield. We believe that Range and Antero are both attractively valued, boast experienced management teams, and benefit from significant competitive advantages.”

While we acknowledge the potential of AM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.