Antero Midstream: A Dividend Increase May Enter The Room

Summary

  • Antero Midstream management is considering a dividend increase in the future after the debt ratio goes below 3.0. That should be soon.
  • The parent company runs the midstream very conservatively with one of the lowest debt ratios in the midstream business.
  • Free cash flow has grown far more rapidly than the market anticipated.
  • Investors can expect steady single digit growth augmented by opportunistic acquisitions in the future.
  • A $500 million share repurchase program was announced.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

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

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Finally, after several years of the same dividend, Antero Midstream (NYSE:AM) management "let the cat out of the bag". It is finally time to put a dividend increase up for discussion in the future. Management still

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.

This article was written by

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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 AR, AM, EPD 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 of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

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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