Antero Midstream: Free Cash Flow Growth On Steroids

Summary

  • Antero Midstream is expected to experience significant free cash flow growth due to the completion of infrastructure and the ability to fill up capacity.
  • Antero Resources is focused on acquiring suboptimal holdings to add to its current acreage. The growth is therefore slow as the company has reached the mature stage.
  • Antero Midstream's concentration on the rich gas part of operations allows for faster growth compared to Antero Resources.
  • The debt ratio is very low for a midstream company.
  • The dividend yield is historically high and reflects little to no growth expectations.

Oil Or Gas Transportation With Blue Gas Or Pipe Line Valves On Soil And Sunrise Background

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For years, Antero Midstream (NYSE:AM) was a rapidly growing midstream operator with one main customer (who was also growing rapidly) with a big capital budget for the size of the operation. Now that the main infrastructure has been built out, all this

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation for the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits its own investment qualifications. I own a NFLX put.

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