Antero Midstream Corp (AM) Q4 2025 Earnings Call Highlights: Strategic Acquisition and Record …

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Fri, February 13, 2026 at 8:01 AM GMT+9 4 min read

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**Acquisition:** Closed acquisition of HG Midstream for $1.1 billion.

**EBITDA Growth 2025:** 7% year-over-year increase.

**Free Cash Flow Growth 2025:** 30% increase after dividends.

**EBITDA Growth 2026 Forecast:** 8% year-over-year increase.

**Free Cash Flow Growth 2026 Forecast:** 11% year-over-year increase.

**Adjusted EBITDA Q4 2025:** $285 million, 4% increase year-over-year.

**Free Cash Flow Q4 2025:** $85 million after dividends.

**Leverage:** Reduced to 2.7 times.

**Share Repurchases Q4 2025:** Approximately $48 million.

**Free Cash Flow 2025:** Record $325 million after dividends.

**Return on Invested Capital 2025:** 20%.

**Capital Budget 2026:** $190 million to $220 million.

**Dividend 2026 Forecast:** $0.90 per share.

**Free Cash Flow 2026 Forecast:** $360 million after dividends.

**Leverage 2026 Forecast:** Low 3 times range.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Antero Midstream Corp (NYSE:AM) closed the acquisition of HG Midstream for $1.1 billion, adding over 400 highly economic undeveloped locations.

The company reported an EBITDA growth of 7% year over year for 2025, marking the 11th consecutive year of growth since its IPO.

Free cash flow after dividends increased by 30% in 2025, driven by capital-efficient organic growth.

For 2026, Antero Midstream Corp (NYSE:AM) expects an 8% year-over-year EBITDA growth and an 11% year-over-year free cash flow growth.

The company maintains a strong balance sheet with leverage in the low 3 times range, allowing for debt reduction and share repurchases.

Negative Points

The acquisition of HG Midstream requires significant integration efforts, including the integration of the water system.

The capital budget for 2026 is substantial, ranging from $190 million to $220 million, which may impact financial flexibility.

Despite the positive outlook, the company faces the challenge of maintaining high-single-digit EBITDA growth beyond 2027.

The reliance on dry gas assets may pose risks if market conditions for dry gas change unfavorably.

The company's growth strategy heavily depends on the successful execution of the three-rig, two-completion-crew development program.

Q & A Highlights

Q: Could you walk us through the longer-term growth trajectory once the assets are fully up and running, especially with the three-rig and two-crew program? A: Michael Kennedy, President and CEO, explained that the three-rig, two-crew program will continue to provide growth beyond 2027, with throughput volumes increasing by a couple of hundred million a day. He anticipates mid- to high-single-digit EBITDA growth similar to past years, continuing into 2027 and beyond.

Story Continues  

Q: Regarding AR’s growth upside plans, could you elaborate on what this means for AM from an EBITDA and capital standpoint if you move to a higher potential target? A: Michael Kennedy noted that there is no additional capital required for AM beyond the outlined budget. The infrastructure, including trunk lines and pipelines, is already in place. For AR, the company is well-positioned due to firm transport optionality and the ability to transport gas to the Gulf Coast for LNG, making AR well-suited to meet growing demand over the next 5 to 10 years.

Q: How does the recent acquisition of HG Midstream fit into Antero Midstream’s strategy and financial outlook? A: Michael Kennedy highlighted that the acquisition of HG Midstream for $1.1 billion is a strategic fit, adding over 400 undeveloped locations. This aligns with AM’s just-in-time capital investment strategy, contributing to consistent free cash flow growth. The acquisition is expected to enhance EBITDA and free cash flow growth in 2026 and 2027.

Q: What are the key financial highlights from the fourth quarter and full year? A: Justin Agnew, CFO, reported a 4% year-over-year increase in adjusted EBITDA to $285 million for the quarter, driven by higher gathering and compression volumes. The company generated $85 million of free cash flow after dividends in the quarter and a record $325 million for the full year, marking a 30% increase from 2024.

Q: What is the capital budget for 2026, and what projects does it include? A: Justin Agnew outlined a capital budget of $190 million to $220 million for 2026, covering well connect and water capital, compression asset relocation, high-pressure gathering trunk lines, and water system integration. The budget also includes expansion capital for dry gas acreage to enhance downstream deliverability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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