Antero Midstream Announces First Quarter 2026 Financial and Operating Results

Antero Midstream Announces First Quarter 2026 Financial and Operating Results DENVER, April 29, 2026 /PRNewswire/ -- Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today announced its first quarter 2026 financial and operating results. The relevant consolidated financial statements are included in Antero Midstream's Quarterly Report on Form 10-Q for the three months ended March 31, 2026.

First Quarter 2026 Highlights:

Michael Kennedy, CEO and President said, "Antero Midstream delivered another quarter of volume and EBITDA growth while closing the Company's largest acquisition to-date. Our ability to close the HG acquisition and integrate operations while avoiding any outages during Winter Storm Fern, is a testament to the hard work and dedication of our team."

Mr. Kennedy continued, "In addition to the integration efforts that remain on schedule, we continue to invest capital to improve the connectivity and market outlets on our gathering systems. These capital projects supported our first dry gas Marcellus Shale pad in over a decade, as well as our first pad on the acquired assets, that were connected during the second quarter. These pads deliver volumetric growth and position Antero Midstream to help supply the rising demand for U.S. Energy."

Justin Agnew, CFO of Antero Midstream, said, "Antero Midstream's strong balance sheet and consistent Free Cash Flow generation, combined with the sale of our Ohio Utica Shale assets, allowed us to finance the HG Energy acquisition while maintaining leverage in the low 3-times range. Looking ahead we expect our just-in-time organic strategy, bolstered by the highly accretive HG Energy acquisition, to continue delivering high-single digit EBITDA growth in the future."

For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Leverage, and Adjusted Free Cash Flow after dividends please see "Non-GAAP Financial Measures."

Share Repurchases

During the first quarter of 2026, Antero Midstream repurchased 1.0 million shares for $18 million. Antero Midstream had approximately $318 million of remaining capacity under its share repurchase program as of March 31, 2026.

Strategic and Operating Updates

Antero Midstream completed its two previously announced strategic transactions during the first quarter. The Company closed on the HG Energy acquisition in early February and closed on the divestiture of its Ohio Utica Shale assets in late February. Operating and financial results include contributions based on the closing dates of each transaction.

Upon closing of the acquisition, Antero Midstream immediately commenced asset integration operations and cost-effective water blending solutions. This included initial facilities and connectivity work that successfully supported the first pad turn-in-line on the acquired assets in the second quarter. In addition, the Company initiated the construction of a pipeline to connect its water system with the acquired water system, which supports additional fresh water delivery volumes and growth in 2027 and beyond.

During the first quarter of 2026, Antero Midstream connected 20 wells to its gathering system and serviced 26 wells with its fresh water delivery system. Capital expenditures were $42 million during the first quarter of 2026. The Company invested $26 million in gathering and compression, $15 million in water infrastructure, and $1 million in the Stonewall Joint Venture.

First Quarter 2026 Financial Results

Gathering volumes increased by 14% compared to the prior year quarter. Fresh water delivery volumes averaged 83 MBbl/d during the quarter, a 21% decrease compared to the first quarter of 2025. Processing volumes from the processing and fractionation joint venture (the "Joint Venture") increased by 4% compared to the prior year quarter. Joint Venture fractionation volumes averaged 40 MBbl/d, in line with the prior year quarter. Processing and fractionation capacity were both 100% utilized during the quarter.

Three Months Ended

March 31,

Average Daily Volumes:

2025

2026

% Change

Gathering (MMcf/d)

3,348

3,805

14 %

Centralized Compression (MMcf/d)

3,330

3,370

1 %

High Pressure Gathering (MMcf/d)

3,106

3,133

1 %

Fresh Water Delivery (MBbl/d)

105

(21) %

Joint Venture Processing (MMcf/d)

1,650

1,708

4 %

Joint Venture Fractionation (MBbl/d)

—

For the three months ended March 31, 2026, revenues were $314 million, comprised of $250 million from the Gathering and Processing segment and $64 million from the Water Handling segment, net of $21 million of amortization of customer relationships. Water Handling revenues include $40 million from other water handling and high rate water transfer services.

Direct operating expenses were $30 million for the Gathering and Processing segment and $41 million for the Water Handling segment for a total of $71 million. Water Handling operating expenses include $35 million from other water handling and high rate water transfer services. General and administrative expenses excluding equity-based compensation were $12 million during the first quarter of 2026. Total operating expenses during the first quarter of 2026 included $11 million of equity-based compensation expense and $35 million of depreciation expense. Transaction expense was $9 million related to the HG Midstream acquisition.

Net Income was $118 million, or $0.25 per diluted share, in line with the prior year quarter. Net Income adjusted for amortization of customer relationships, impairment of property and equipment, gain on long-lived assets, transaction expense and other, net of tax effects of reconciling items, or Adjusted Net Income, was $138 million. Adjusted Net Income was $0.29 per diluted share, a 4% per share increase compared to the prior year quarter.

The following table reconciles Net Income to Adjusted Net Income (in thousands):

Three Months Ended

March 31,

2025

2026

Net Income

120,737

118,266

Amortization of customer relationships

17,668

21,210

Impairment of property and equipment

817

—

Gain on long-lived assets

—

(2,658)

Transaction expense

—

8,689

Other (1)

(5)

(13)

Tax effect of reconciling items (2)

(4,773)

(7,047)

Adjusted Net Income

134,444

138,447

(1) Other represents gain on asset sale.

(2) The statutory tax rate for each of the three months ended March 31, 2025 and 2026 was approximately 26%.

Adjusted EBITDA was $288 million, a 5% increase compared to the prior year quarter. Interest expense was $54 million, a 12% increase compared to the prior year quarter driven by financing for the HG Energy acquisition. Capital expenditures were $42 million during the first quarter of 2026. Adjusted Free Cash Flow before dividends was $192 million and Adjusted Free Cash Flow after dividends was $85 million, an 8% increase compared to the prior year quarter.

The following table reconciles Net Income to Adjusted EBITDA and Adjusted Free Cash Flow before and after dividends (in thousands):

Three Months Ended

March 31,

2025

2026

Net Income

120,737

118,266

Interest expense, net

48,410

54,029

Income tax expense

36,096

37,639

Depreciation expense

32,748

34,635

Amortization of customer relationships

17,668

21,210

Equity-based compensation

12,402

10,579

Equity in earnings of unconsolidated affiliates

(28,020)

(30,012)

Distributions from unconsolidated affiliates

33,375

35,720

Impairment of property and equipment

817

—

Gain on long-lived assets

—

(2,658)

Transaction expense

—

8,689

Other operating expense, net (1)

Adjusted EBITDA

274,277

288,131

Interest expense, net

(48,410)

(54,029)

Capital expenditures (accrual-based)

(37,288)

(41,952)

Current income tax expense

(1,680)

—

Adjusted Free Cash Flow before dividends

186,899

192,150

Dividends declared (accrual-based)

(107,836)

(106,871)

Adjusted Free Cash Flow after dividends

79,063

85,279

(1) Other operating expense represents accretion of asset retirement obligations and gain on asset sale.

The following table reconciles net cash provided by operating activities to Adjusted Free Cash Flow before and after dividends (in thousands):

Three Months Ended

March 31,

2025

2026

Net cash provided by operating activities

198,942

238,624

Amortization of deferred financing costs

(1,307)

(1,512)

Settlement of asset retirement obligations

210

Transaction expense

—

8,689

Changes in working capital

26,342

(11,733)

Capital expenditures (accrual-based)

(37,288)

(41,952)

Adjusted Free Cash Flow before dividends

186,899

192,150

Dividends declared (accrual-based)

(107,836)

(106,871)

Adjusted Free Cash Flow after dividends

79,063

85,279

Conference Call

A conference call is scheduled on Thursday, April 30, 2026 at 10:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow the discussion of the results. To participate in the call, dial in at 877-407-9126 (U.S.), or 201-493-6751 (International) and reference "Antero Midstream." A telephone replay of the call will be available until Thursday, May 7, 2026 at 10:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13758947. To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com. The webcast will be archived for replay until Thursday, May 7, 2026 at 10:00 am MT.

Presentation

An updated presentation will be posted to the Company's website before the conference call. The presentation can be found at www.anteromidstream.com on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference into, this press release.

Non-GAAP Financial Measures and Definitions

Antero Midstream uses certain non-GAAP financial measures. Antero Midstream defines Adjusted Net Income as Net Income adjusted for certain items. Antero Midstream uses Adjusted Net Income to assess the operating performance of its assets. Antero Midstream defines Adjusted EBITDA as Net Income adjusted for certain items.

Antero Midstream uses Adjusted EBITDA to assess:

Antero Midstream defines Adjusted Free Cash Flow before dividends as Adjusted EBITDA less net interest expense, accrual-based capital expenditures, and current income tax expense. Capital expenditures include additions to gathering systems and facilities, additions to water handling systems, and investments in unconsolidated affiliates. Capital expenditures exclude acquisitions and Adjusted Free Cash Flow excludes transaction expense related to acquisitions. Adjusted Free Cash Flow after dividends is defined as Adjusted Free Cash Flow before dividends less accrual-based dividends declared for the quarter. Antero Midstream uses Adjusted Free Cash Flow before and after dividends as a performance metric to compare the cash generating performance of Antero Midstream from period to period.

Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow before and after dividends are non-GAAP financial measures. The GAAP measure most directly comparable to these measures is Net Income. Such non-GAAP financial measures should not be considered as alternatives to the GAAP measures of Net Income and cash flows provided by (used in) operating activities. The presentations of such measures are not made in accordance with GAAP and have important limitations as analytical tools because they include some, but not all, items that affect Net Income and cash flows provided by (used in) operating activities. You should not consider any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP. Antero Midstream's definitions of such measures may not be comparable to similarly titled measures of other companies.

The following table reconciles cash paid for capital expenditures and accrued capital expenditures during the period (in thousands):

Three Months Ended

March 31,

2025

2026

Capital expenditures (as reported on a cash basis)

32,276

38,806

Change in accrued capital costs

5,012

3,146

Capital expenditures (accrual basis)

37,288

41,952

Antero Midstream defines Net Debt as consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash, cash equivalents and restricted cash. Antero Midstream views Net Debt as an important indicator in evaluating Antero Midstream's financial leverage. Antero Midstream defines Leverage as Net Debt divided by Adjusted EBITDA for the last twelve months. The GAAP measure most directly comparable to Net Debt is total debt, excluding unamortized debt premiums and debt issuance costs.

The following table reconciles consolidated total debt to Net Debt as used in this release (in thousands):

March 31, 2026

Bank credit facility

442,400

5.75% senior notes due 2028

650,000

5.375% senior notes due 2029

750,000

6.625% senior notes due 2032

600,000

5.75% senior notes due 2033

650,000

5.75% senior notes due 2034

600,000

Consolidated total debt

3,692,400

Less: Cash, cash equivalents and restricted cash

—

Consolidated net debt

3,692,400

Antero Midstream Corporation is a Delaware corporation that owns, operates and develops midstream gathering, compression, processing and fractionation assets located in the Appalachian Basin, as well as integrated water assets that primarily service Antero Resources Corporation's (NYSE: AR) ("Antero Resources") properties.

This release includes "forward-looking statements." Words such as "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," or "continue," and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Midstream's control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Midstream expects, believes or anticipates will or may occur in the future, such as statements regarding our strategy, future operations, financial position, estimated revenues and losses, Antero Resources' and Antero Midstream's respective ability to integrate acquired assets and achieve the intended operational, financial and strategic benefits from any such transactions, projected costs, prospects, plans and objectives of management, Antero Resources' expected production and development plan, natural gas, NGLs and oil prices, Antero Midstream's ability to realize the anticipated benefits of its investments in unconsolidated affiliates, Antero Midstream's ability to execute its share repurchase and dividend program, Antero Midstream's ability to execute its business strategy, impacts of geopolitical events, including the conflicts in Ukraine, Venezuela and in the Middle East, and world health events, information regarding long-term financial and operating outlooks for Antero Midstream and Antero Resources, information regarding Antero Resources' expected future growth and its ability to meet its drilling and development plan and the participation level of Antero Resources' drilling partner, the impact on demand for Antero Midstream's services as a result of incremental production by Antero Resources, the impact of recently enacted legislation, and expectations regarding the amount and timing of litigation awards are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. All forward-looking statements speak only as of the date of this release. Although Antero Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Midstream expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

Antero Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond Antero Midstream's control. These risks include, but are not limited to, risks associated with the successful integration and future performance of acquired assets and operations, commodity price volatility, inflation, supply chain or other disruptions, environmental risks, Antero Resources' drilling and completion and other operating risks, regulatory changes or changes in law, the uncertainty inherent in projecting Antero Resources' future rates of production, cash flows and access to capital, the timing of development expenditures, impacts of world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading "Risk Factors" in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026..

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

December31,

March31,

2025

2026

Assets

Current assets:

Cash and cash equivalents

180,435

—

Restricted cash

82,500

—

Accounts receivable–Antero Resources

106,771

147,086

Accounts receivable–third party

993

3,156

Income tax receivable

1,896

Current assets held for sale

4,600

—

Other current assets

2,669

2,804

Total current assets

379,864

154,942

Long-term assets:

Property and equipment, net

3,454,572

3,931,657

Investments in unconsolidated affiliates

585,778

580,970

Customer relationships

1,074,087

1,682,303

Operating leases right-of-use assets

—

46,156

Assets held for sale

379,036

—

Other assets, net

10,779

9,836

Total assets

5,884,116

6,405,864

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable–Antero Resources

5,366

9,003

Accounts payable–third party

10,368

15,862

Accrued liabilities

91,527

117,576

Short-term lease liabilities

—

13,176

Current liabilities held for sale

2,297

—

Other current liabilities

1,924

1,633

Total current liabilities

111,482

157,250

Long-term liabilities:

Long-term debt

3,222,530

3,665,937

Deferred income tax liability, net

562,996

600,634

Long-term lease liabilities

—

33,415

Liabilities held for sale

3,021

—

Other

12,046

12,179

Total liabilities

3,912,075

4,469,415

Stockholders' equity:

Preferred stock, $0.01 par value: 100,000 authorized as of December 31, 2025 and

March 31, 2026

Series A non-voting perpetual preferred stock; 12 designated and 10 issued and

outstanding as of December 31, 2025 and March 31, 2026

—

Common stock, $0.01 par value; 2,000,000 authorized; 474,060 and 475,028 issued and

outstanding as of December 31, 2025 and March 31, 2026, respectively

4,741

4,750

Additional paid-in capital

1,952,524

1,827,496

Retained earnings

14,776

104,203

Total stockholders' equity

1,972,041

1,936,449

Total liabilities and stockholders' equity

5,884,116

6,405,864

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In thousands, except per share amounts)

Three Months Ended March 31,

2025

2026

Revenue:

Gathering and compression–Antero Resources

238,017

261,999

Gathering and compression–third party

—

295

Water handling–Antero Resources

70,275

72,816

Water handling–third party

505

311

Amortization of customer relationships

(17,668)

(21,210)

Total revenue

291,129

314,211

Operating expenses:

Direct operating

56,830

70,697

General and administrative (including $12,402 and $10,579 of equity-based

compensation in 2025 and 2026, respectively)

23,024

22,347

Facility idling

443

545

Depreciation

32,748

34,635

Impairment of property and equipment

817

—

Gain on long-lived assets

—

(2,658)

Other operating expense, net

Total operating expenses

113,906

125,600

Operating income

177,223

188,611

Other income (expense):

Interest expense, net

(48,410)

(54,029)

Equity in earnings of unconsolidated affiliates

28,020

30,012

Transaction expense

—

(8,689)

Total other expense

(20,390)

(32,706)

Income before income taxes

156,833

155,905

Income tax expense

(36,096)

(37,639)

Net income and comprehensive income

120,737

118,266

Net income per common share–basic

0.25

Net income per common share–diluted

0.25

Weighted average common shares outstanding:

Basic

479,064

473,866

Diluted

484,378

477,963

ANTERO MIDSTREAM CORPORATION

Selected Operating Data (Unaudited)

Amount of

Three Months Ended March 31,

Increase

Percentage

2025

2026

or Decrease

Change

Operating Data:

Gathering (MMcf)

301,298

342,446

41,148

Centralized compression (MMcf)

299,718

303,328

3,610

High pressure gathering (MMcf)

279,579

281,950

2,371

Fresh water delivery (MBbl) (1)

9,415

7,506

(1,909)

(20)

Other water handling (MBbl) (2)

5,179

8,359

3,180

Wells serviced by fresh water delivery

(2)

(7)

Gathering (MMcf/d)

3,348

3,805

457

Centralized compression (MMcf/d)

3,330

3,370

High pressure gathering (MMcf/d)

3,106

3,133

Fresh water delivery (MBbl/d) (1)

105

(22)

(21)

Other water handling (MBbl/d) (2)

Average Realized Fees (3):

Gathering ($/Mcf)

0.36

0.37

0.01

Centralized compression ($/Mcf)

0.22

—

High pressure gathering ($/Mcf)

0.23

—

Fresh water delivery ($/Bbl) (1)

4.38

4.44

0.06

Joint Venture Operating Data:

Processing (MMcf)

148,523

153,722

5,199

Fractionation (MBbl)

3,600

—

Processing (MMcf/d)

1,650

1,708

Fractionation (MBbl/d)

—

*Not meaningful or applicable.

(1)

Fresh water delivery includes fresh water charged at a fixed fee under our water services agreement with Antero Resources.

(2)

Other water handling includes fresh water charged at cost plus 3% for services provided to Antero Resources on its acreage acquired from HG Production and our other fluid handling services charged at cost plus 3% or cost of service.

(3)

The average realized fees for the three months ended March 31, 2026 include annual CPI-based adjustments of approximately 1.5%.

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Results of Segment Operations (Unaudited)

(In thousands)

Three Months Ended March 31, 2026

Gathering and

Water

Consolidated

(in thousands)

Processing

Handling

Unallocated (1)

Total

Revenues:

Revenue–Antero Resources

261,999

72,816

—

334,815

Revenue–third-party

295

311

—

606

Amortization of customer relationships

(12,384)

(8,826)

—

(21,210)

Total revenues

249,910

64,301

—

314,211

Operating expenses:

Direct operating

30,030

40,667

—

70,697

General and administrative (excluding equity-based compensation)

7,226

3,281

1,261

11,768

Equity-based compensation

7,596

2,669

314

10,579

Facility idling

—

545

—

545

Depreciation

17,844

16,791

—

34,635

Loss on long-lived assets

(3,229)

571

—

(2,658)

Other operating expense, net

—

Total operating expenses

59,467

64,558

1,575

125,600

Operating income (loss)

190,443

(257)

(1,575)

188,611

Other income (expense):

Interest expense, net

—

(54,029)

Equity in earnings of unconsolidated affiliates

30,012

—

30,012

Transaction expense

—

(8,689)

Total other income (expense)

30,012

—

(62,718)

(32,706)

Income (loss) before income taxes

220,455

(257)

(64,293)

155,905

Income tax expense

—

(37,639)

Net income (loss) and comprehensive income (loss)

220,455

(257)

(101,932)

118,266

(1) Corporate expenses that are not directly attributable to either the gathering and processing or water handling segments.

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Three Months Ended March 31,

2025

2026

Cash flows provided by (used in) operating activities:

Net income

120,737

118,266

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

32,748

34,635

Impairment of property and equipment

817

—

Deferred income tax expense

34,416

37,639

Equity-based compensation

12,402

10,579

Equity in earnings of unconsolidated affiliates

(28,020)

(30,012)

Distributions from unconsolidated affiliates

33,375

35,720

Amortization of customer relationships

17,668

21,210

Amortization of deferred financing costs

1,307

1,512

Settlement of asset retirement obligations

(210)

(34)

Gain on long-lived assets

—

(2,658)

Other operating activities

Changes in assets and liabilities:

Accounts receivable–Antero Resources

(8,825)

(8,450)

Accounts receivable–third party

(246)

Other current assets

(695)

(99)

Accounts payable–Antero Resources

1,629

982

Accounts payable–third party

1,056

6,350

Income taxes payable

1,783

—

Accrued liabilities

(21,325)

13,196

Net cash provided by operating activities

198,942

238,624

Cash flows provided by (used in) investing activities:

Additions to gathering systems, facilities and other

(22,081)

(19,437)

Additions to water handling systems

(8,447)

(18,469)

Additional investments in unconsolidated affiliate

(1,748)

(900)

Acquisition of HG Midstream

—

(1,120,593)

Proceeds from asset sales

378,628

Net cash used in investing activities

(32,271)

(780,771)

Cash flows provided by (used in) financing activities:

Dividends to common stockholders

(112,615)

(111,096)

Dividends to preferred stockholders

(138)

Repurchases of common stock

(28,569)

(18,013)

Borrowings on Credit Facility

304,300

1,076,900

Repayments on Credit Facility

(311,200)

(634,500)

Payments of deferred financing costs

—

(1,319)

Employee tax withholding for settlement of equity-based compensation awards

(18,449)

(32,536)

Payments on capital lease obligations

—

(86)

Net cash provided by (used in) financing activities

(166,671)

279,212

Net decrease in cash, cash equivalents and restricted cash

—

(262,935)

Cash, cash equivalents and restricted cash, beginning of period

—

262,935

Cash, cash equivalents and restricted cash, end of period

—

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

65,272

44,525

Increase in accrued capital expenditures and accounts payable for property and equipment

5,012

3,146

Increase in accounts receivable–Antero Resources and accounts receivable–third party for the acquisition of HG Midstream

—

11,830

Right-of-use assets obtained in exchange for new operating lease obligations

351

47,473

SOURCE Antero Midstream Corporation