First Quarter 2026 Highlights:
Gathering volumes increased by 14% compared to the prior year quarter
Net Income was $118 million, or $0.25 per diluted share, in line with the prior year quarter
Adjusted Net Income was $138 million, or $0.29 per diluted share, a 4% per share increase compared to the prior year quarter (non-GAAP measure)
Adjusted EBITDA was $288 million, a 5% increase compared to the prior year quarter (non-GAAP measure)
Capital expenditures were $42 million
Adjusted Free Cash Flow after dividends was $85 million, an 8% increase compared to the prior year quarter (non-GAAP measure)
Repurchased 1.0 million shares for $18 million
Michael Kennedy, CEO and President said, "Antero Midstream delivered another quarter of volume and EBITDA growth while closing the Company's largest acquisition to-date. Our ability to close the HG acquisition and integrate operations while avoiding any outages during Winter Storm Fern, is a testament to the hard work and dedication of our team."
Mr. Kennedy continued, "In addition to the integration efforts that remain on schedule, we continue to invest capital to improve the connectivity and market outlets on our gathering systems. These capital projects supported our first dry gas Marcellus Shale pad in over a decade, as well as our first pad on the acquired assets, that were connected during the second quarter. These pads deliver volumetric growth and position Antero Midstream to help supply the rising demand for U.S. Energy."
Justin Agnew, CFO of Antero Midstream, said, "Antero Midstream's strong balance sheet and consistent Free Cash Flow generation, combined with the sale of our Ohio Utica Shale assets, allowed us to finance the HG Energy acquisition while maintaining leverage in the low 3-times range. Looking ahead we expect our just-in-time organic strategy, bolstered by the highly accretive HG Energy acquisition, to continue delivering high-single digit EBITDA growth in the future."
For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Leverage, and Adjusted Free Cash Flow after dividends please see "Non-GAAP Financial Measures."
Share Repurchases
During the first quarter of 2026, Antero Midstream repurchased 1.0 million shares for $18 million. Antero Midstream had approximately $318 million of remaining capacity under its share repurchase program as of March 31, 2026.
Strategic and Operating Updates
Antero Midstream completed its two previously announced strategic transactions during the first quarter. The Company closed on the HG Energy acquisition in early February and closed on the divestiture of its Ohio Utica Shale assets in late February. Operating and financial results include contributions based on the closing dates of each transaction.
Upon closing of the acquisition, Antero Midstream immediately commenced asset integration operations and cost-effective water blending solutions. This included initial facilities and connectivity work that successfully supported the first pad turn-in-line on the acquired assets in the second quarter. In addition, the Company initiated the construction of a pipeline to connect its water system with the acquired water system, which supports additional fresh water delivery volumes and growth in 2027 and beyond.
During the first quarter of 2026, Antero Midstream connected 20 wells to its gathering system and serviced 26 wells with its fresh water delivery system. Capital expenditures were $42 million during the first quarter of 2026. The Company invested $26 million in gathering and compression, $15 million in water infrastructure, and $1 million in the Stonewall Joint Venture.
First Quarter 2026 Financial Results
Gathering volumes increased by 14% compared to the prior year quarter. Fresh water delivery volumes averaged 83 MBbl/d during the quarter, a 21% decrease compared to the first quarter of 2025. Processing volumes from the processing and fractionation joint venture (the "Joint Venture") increased by 4% compared to the prior year quarter. Joint Venture fractionation volumes averaged 40 MBbl/d, in line with the prior year quarter. Processing and fractionation capacity were both 100% utilized during the quarter.
Three Months Ended
March 31,
Average Daily Volumes:
2025
2026
% Change
Gathering (MMcf/d)
3,348
3,805
14 %
Centralized Compression (MMcf/d)
3,330
3,370
1 %
High Pressure Gathering (MMcf/d)
3,106
3,133
1 %
Fresh Water Delivery (MBbl/d)
105
83
(21) %
Joint Venture Processing (MMcf/d)
1,650
1,708
4 %
Joint Venture Fractionation (MBbl/d)
40
40
—
For the three months ended March 31, 2026, revenues were $314 million, comprised of $250 million from the Gathering and Processing segment and $64 million from the Water Handling segment, net of $21 million of amortization of customer relationships. Water Handling revenues include $40 million from other water handling and high rate water transfer services.
Direct operating expenses were $30 million for the Gathering and Processing segment and $41 million for the Water Handling segment for a total of $71 million. Water Handling operating expenses include $35 million from other water handling and high rate water transfer services. General and administrative expenses excluding equity-based compensation were $12 million during the first quarter of 2026. Total operating expenses during the first quarter of 2026 included $11 million of equity-based compensation expense and $35 million of depreciation expense. Transaction expense was $9 million related to the HG Midstream acquisition.
Net Income was $118 million, or $0.25 per diluted share, in line with the prior year quarter. Net Income adjusted for amortization of customer relationships, impairment of property and equipment, gain on long-lived assets, transaction expense and other, net of tax effects of reconciling items, or Adjusted Net Income, was $138 million. Adjusted Net Income was $0.29 per diluted share, a 4% per share increase compared to the prior year quarter.
The following table reconciles Net Income to Adjusted Net Income (in thousands):
Three Months Ended
March 31,
2025
2026
Net Income
$
120,737
118,266
Amortization of customer relationships
17,668
21,210
Impairment of property and equipment
817
—
Gain on long-lived assets
—
(2,658)
Transaction expense
—
8,689
Other(1)
(5)
(13)
Tax effect of reconciling items(2)
(4,773)
(7,047)
Adjusted Net Income
$
134,444
138,447
(1) Other represents gain on asset sale.
(2) The statutory tax rate for each of the three months ended March 31, 2025 and 2026 was approximately 26%.
Adjusted EBITDA was $288 million, a 5% increase compared to the prior year quarter. Interest expense was $54 million, a 12% increase compared to the prior year quarter driven by financing for the HG Energy acquisition. Capital expenditures were $42 million during the first quarter of 2026. Adjusted Free Cash Flow before dividends was $192 million and Adjusted Free Cash Flow after dividends was $85 million, an 8% increase compared to the prior year quarter.
The following table reconciles Net Income to Adjusted EBITDA and Adjusted Free Cash Flow before and after dividends (in thousands):
Three Months Ended
March 31,
2025
2026
Net Income
$
120,737
118,266
Interest expense, net
48,410
54,029
Income tax expense
36,096
37,639
Depreciation expense
32,748
34,635
Amortization of customer relationships
17,668
21,210
Equity-based compensation
12,402
10,579
Equity in earnings of unconsolidated affiliates
(28,020)
(30,012)
Distributions from unconsolidated affiliates
33,375
35,720
Impairment of property and equipment
817
—
Gain on long-lived assets
—
(2,658)
Transaction expense
—
8,689
Other operating expense, net(1)
44
34
Adjusted EBITDA
$
274,277
288,131
Interest expense, net
(48,410)
(54,029)
Capital expenditures (accrual-based)
(37,288)
(41,952)
Current income tax expense
(1,680)
—
Adjusted Free Cash Flow before dividends
$
186,899
192,150
Dividends declared (accrual-based)
(107,836)
(106,871)
Adjusted Free Cash Flow after dividends
$
79,063
85,279
(1) Other operating expense represents accretion of asset retirement obligations and gain on asset sale.
The following table reconciles net cash provided by operating activities to Adjusted Free Cash Flow before and after dividends (in thousands):
Three Months Ended
March 31,
2025
2026
Net cash provided by operating activities
$
198,942
238,624
Amortization of deferred financing costs
(1,307)
(1,512)
Settlement of asset retirement obligations
210
34
Transaction expense
—
8,689
Changes in working capital
26,342
(11,733)
Capital expenditures (accrual-based)
(37,288)
(41,952)
Adjusted Free Cash Flow before dividends
$
186,899
192,150
Dividends declared (accrual-based)
(107,836)
(106,871)
Adjusted Free Cash Flow after dividends
$
79,063
85,279
Conference Call
A conference call is scheduled on Thursday, April 30, 2026 at 10:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow the discussion of the results. To participate in the call, dial in at 877-407-9126 (U.S.), or 201-493-6751 (International) and reference "Antero Midstream." A telephone replay of the call will be available until Thursday, May 7, 2026 at 10:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13758947. To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com. The webcast will be archived for replay until Thursday, May 7, 2026 at 10:00 am MT.
Presentation
An updated presentation will be posted to the Company's website before the conference call. The presentation can be found at www.anteromidstream.com on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference into, this press release.
Non-GAAP Financial Measures and Definitions
Antero Midstream uses certain non-GAAP financial measures. Antero Midstream defines Adjusted Net Income as Net Income adjusted for certain items. Antero Midstream uses Adjusted Net Income to assess the operating performance of its assets. Antero Midstream defines Adjusted EBITDA as Net Income adjusted for certain items.
Antero Midstream uses Adjusted EBITDA to assess:
the financial performance of Antero Midstream's assets, without regard to financing methods, capital structure or historical cost basis;
its operating performance and return on capital as compared to other publicly traded companies in the midstream energy sector, without regard to financing or capital structure; and
the viability of acquisitions and other capital expenditure projects.
Antero Midstream defines Adjusted Free Cash Flow before dividends as Adjusted EBITDA less net interest expense, accrual-based capital expenditures, and current income tax expense. Capital expenditures include additions to gathering systems and facilities, additions to water handling systems, and investments in unconsolidated affiliates. Capital expenditures exclude acquisitions and Adjusted Free Cash Flow excludes transaction expense related to acquisitions. Adjusted Free Cash Flow after dividends is defined as Adjusted Free Cash Flow before dividends less accrual-based dividends declared for the quarter. Antero Midstream uses Adjusted Free Cash Flow before and after dividends as a performance metric to compare the cash generating performance of Antero Midstream from period to period.
Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow before and after dividends are non-GAAP financial measures. The GAAP measure most directly comparable to these measures is Net Income. Such non-GAAP financial measures should not be considered as alternatives to the GAAP measures of Net Income and cash flows provided by (used in) operating activities. The presentations of such measures are not made in accordance with GAAP and have important limitations as analytical tools because they include some, but not all, items that affect Net Income and cash flows provided by (used in) operating activities. You should not consider any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP. Antero Midstream's definitions of such measures may not be comparable to similarly titled measures of other companies.
The following table reconciles cash paid for capital expenditures and accrued capital expenditures during the period (in thousands):
Three Months Ended
March 31,
2025
2026
Capital expenditures (as reported on a cash basis)
$
32,276
38,806
Change in accrued capital costs
5,012
3,146
Capital expenditures (accrual basis)
$
37,288
41,952
Antero Midstream defines Net Debt as consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash, cash equivalents and restricted cash. Antero Midstream views Net Debt as an important indicator in evaluating Antero Midstream's financial leverage. Antero Midstream defines Leverage as Net Debt divided by Adjusted EBITDA for the last twelve months. The GAAP measure most directly comparable to Net Debt is total debt, excluding unamortized debt premiums and debt issuance costs.
The following table reconciles consolidated total debt to Net Debt as used in this release (in thousands):
March 31, 2026
Bank credit facility
$
442,400
5.75% senior notes due 2028
650,000
5.375% senior notes due 2029
750,000
6.625% senior notes due 2032
600,000
5.75% senior notes due 2033
650,000
5.75% senior notes due 2034
600,000
Consolidated total debt
$
3,692,400
Less: Cash, cash equivalents and restricted cash
—
Consolidated net debt
$
3,692,400
Antero Midstream Corporation is a Delaware corporation that owns, operates and develops midstream gathering, compression, processing and fractionation assets located in the Appalachian Basin, as well as integrated water assets that primarily service Antero Resources Corporation's (NYSE:AR) ("Antero Resources") properties.
This release includes "forward-looking statements." Words such as "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," or "continue," and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Midstream's control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Midstream expects, believes or anticipates will or may occur in the future, such as statements regarding our strategy, future operations, financial position, estimated revenues and losses, Antero Resources' and Antero Midstream's respective ability to integrate acquired assets and achieve the intended operational, financial and strategic benefits from any such transactions, projected costs, prospects, plans and objectives of management, Antero Resources' expected production and development plan, natural gas, NGLs and oil prices, Antero Midstream's ability to realize the anticipated benefits of its investments in unconsolidated affiliates, Antero Midstream's ability to execute its share repurchase and dividend program, Antero Midstream's ability to execute its business strategy, impacts of geopolitical events, including the conflicts in Ukraine, Venezuela and in the Middle ...
