#USA #Denver #financial results #Q3 2025 #Antero Midstream

Antero Midstream Reports Robust Third Quarter 2025 Financial Performance

Antero Midstream Corporation (NYSE: AM) has unveiled its financial and operational results for the third quarter of 2025, showcasing impressive growth in various key performance metrics. The report highlights a solid increase in both gathering and processing volumes, alongside a notable rise in net income and free cash flow.

Key Highlights of Q3 2025

• - Volume Growth: Low pressure gathering volumes saw a year-over-year increase of 5%, while processing volumes were up by 6% from the previous year. This validates Antero Midstream's commitment to expanding its operational capacity and efficiency.
• - Net Income Surge: The company reported a net income of $116 million, translating to $0.24 per diluted share, marking a 14% increase compared to the same quarter last year. This improvement underscores the company's robust financial health and operational effectiveness.
• - Adjusted Earnings: Adjusted net income rose to $130 million, or $0.27 per diluted share, indicating a 17% increase year-over-year. This figure reflects the company’s effective management of its expenses and operational costs.
• - EBITDA Performance: Adjusted EBITDA reached $281 million, representing a 10% growth relative to the prior year quarter. This increase highlights Antero Midstream's capacity to generate earnings before interest, taxes, depreciation, and amortization, a key indicator of financial stability.
• - Capital Efficiency: Capital expenditures were reported at $51 million, a reduction of 9% compared to the previous year. This decrease in spending illustrates Antero Midstream's strategic approach to capital allocation and operational expenditures.
• - Free Cash Flow Improvement: Antero Midstream boasted a free cash flow after dividends of $78 million, a remarkable 94% increase from last year. This metric exemplifies the company's ability to generate surplus cash for reinvestment or to return to shareholders.
• - Leverage Decline: As of September 30, 2025, Antero Midstream's leverage ratio fell to 2.7x, demonstrating a robust balance sheet amid increasing operational efficiency.

CEO Insights

Michael Kennedy, President and CEO, remarked on the company's performance, citing the 30% increase in water delivery volumes as a key driver of efficiency. He credited the achievement to a dedicated completion crew which set records for pumping hours and completion stages per day, further illustrating the efficiency of Antero's integrated water system.

CFO Justin Agnew highlighted the significance of the company’s free cash flow growth, which nearly doubled from the previous year. This robust cash generation has facilitated both debt reduction and share repurchase efforts, enhancing financial flexibility for the future. Antero Midstream repurchased 2.3 million shares for $41 million during the quarter, signaling a continued commitment to returning capital to shareholders.

Operational Updates

During Q3 2025, Antero Midstream connected 16 wells to its gathering system while servicing 17 wells with its fresh water delivery network. The company allocated $24 million for gathering and compression alongside $26 million for water infrastructure, which emphasizes its focus on enhancing operational capabilities across these sectors. Furthermore, Antero Resources announced $260 million in acquisitions within the Marcellus Shale, strengthening Antero Midstream's market position.

Conclusion

Antero Midstream's stellar performance in the third quarter of 2025 signals a positive trajectory as the company continues to deliver value through operational excellence and strategic capital management. With a solid framework in place, Antero is well-positioned to meet future market demands and to further capitalize on emerging opportunities in the midstream energy sector. A conference call to discuss these results in depth is scheduled for October 30, 2025, demonstrating the company's commitment to maintaining transparency and communication with investors and stakeholders.

Overall, Antero Midstream is not just reaffirming its status as a leader in the midstream space but also setting up a strong foundation for sustained growth in the years to come.