Antero Midstream Q4 Earnings Miss on Higher Operating Expenses

Antero Midstream AM reported fourth-quarter 2025 earnings per share of 11 cents, which missed the Zacks Consensus Estimate of 24 cents. The bottom line also declined from the year-ago quarter’s level of 23 cents.

Total quarterly revenues of $297 million beat the Zacks Consensus Estimate of $294 million. The top line also improved from $287 million in the year-ago quarter.

The weak quarterly earnings can be attributed to an increase in total operating expenses. However, higher gathering and compression volumes partially offset the negatives.

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 3,424 million cubic feet (MMcf/d) compared with 3,266 MMcf/d in the year-ago quarter. The reported figure was above our estimate of 3,274 MMcf/d. On a per-Mcf basis, the compression fee was 22 cents, which increased nearly 5% from 21 cents a year ago.

High-pressure gathering volumes totaled 3,193 MMcf/d, up 5% from the year-ago level of 3,045 MMcf/d. Our estimate for the same was pinned at 3,068 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 23 cents, which remained flat year over year.

Low-pressure gathering volumes averaged 3,435 MMcf/d compared with 3,276 MMcf/d a year ago. The figure was above our estimate of 3,296 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 met our estimate of 36 cents.

Freshwater delivery volumes were registered at 93 MBbls/d, down 18% from the prior-year quarter’s figure of 114 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 above our estimate of $4.31.

Operating Expenses

Direct operating expenses amounted to $54.1 million, down from $55.9 million recorded a year ago.

Antero Midstream’s total operating expenses amounted to $196.5 million, up from $109.7 million recorded in the corresponding period of 2024.

Balance Sheet

As of Dec. 31, 2025, the company had cash and cash equivalents of $180 million. The company also had a long-term debt of $3.2 billion.

AM’s Zacks Rank and Key Picks

AM currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energysector are Archrock Inc. AROC, Oceaneering International OII and W&T Offshore WTI. While Archrock sports a Zacks Rank #1 (Strong Buy), Oceaneering and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability, and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues. 

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

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