Antero Midstream: Potential For Some Volume Growth

(9min)

Summary

  • Antero is unlikely to grow production anywhere near the 10% to 15% per year rate it mentioned back in 2019.
  • However, at current strip prices, there's the potential for a minor amount of production growth, which would boost Antero Midstream's results.
  • I'm now modeling Antero Midstream's 2026 EBITDA at $1.11 billion.
  • This assumes that Antero Resources increases production from 3.4 Bcfe per day in 2024 to 3.45 to 3.5 Bcfe per day in 2026.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »
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Antero Midstream (NYSE:AM) gets its revenue from fixed-fee contracts, so it doesn't have direct exposure to commodity prices. That being said, if Antero Resources (AR) decides to grow production in a favorable commodity pricing environment, Antero Midstream will

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AM over 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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