Antero Midstream: Shrugs Off Volume Worries

Geoffrey Seiler
4.44K Followers

Summary

  • Antero Midstream posted solid Q4 results with solid FCF generation.
  • The company will benefit from a rebate roll-off in 2024 and inflation escalators in its contracts.
  • With Antero seeing modest production growth, Antero Midstream will become more of a capital allocation story in 2025.

Gas delivery to remote regions. yellow gas pipeline that laid through green field. a long yellow pipe.

Diy13

Last February, I started coverage of Antero Midstream (NYSE:AM) with a “Buy” rating, citing benefits coming from upcoming rebate roll-offs, a recent acquisition, and a commitment to lower its leverage. The stock has generated a 24% return since then, keeping pace with S&P. I last covered the

This article was written by

4.44K Followers
Former Senior Equity Analyst at $600M long-short hedge fund Raging Capital.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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