Antero Midstream Corp. reported fourth‑quarter 2025 results that showed revenue of $297 million, up 3.3% from the same period a year earlier, and an adjusted earnings per share of $0.28, a beat of $0.01 over the consensus estimate of $0.27. Adjusted EBITDA rose to $285 million, a 4% increase YoY, while GAAP net income fell to $52 million, or $0.11 per diluted share, reflecting a non‑cash write‑down of Utica Shale net assets held for sale. The company’s adjusted net income of $124 million, or $0.26 per share, was 8% higher than the $111 million ($0.23 per share) reported in Q4 2024, underscoring a solid earnings trajectory despite the GAAP dip.
Revenue was driven by a $241 million contribution from the Gathering and Processing segment and a $56 million contribution from Water Handling, net of amortization. The gathering and compression volumes grew, while water‑handling revenue increased by 23%, supporting the EBITDA expansion. The mix shift toward higher‑margin water services helped offset the modest decline in gathering revenue, illustrating the company’s focus on fee‑based contracts that provide stable cash flow.
Capital expenditures for the quarter totaled $45 million, with $21 million invested in gathering and compression infrastructure and $24 million in water infrastructure. The company also repurchased 2.7 million shares for $48 million, reinforcing its commitment to shareholder returns. In early February, Antero completed the acquisition of HG Midstream, a move that expands its footprint in the Appalachian Basin and is expected to add incremental revenue and EBITDA in 2026.
Management guided for 2026 net income of $485 million to $535 million and adjusted EBITDA of $1.19 billion to $1.24 billion, an 8% increase at the midpoint. The capital budget for the year is projected at $190 million to $220 million, with $145 million earmarked for gathering and compression and $60 million for water infrastructure. The company reaffirmed its quarterly dividend of $0.90 per share and plans to use remaining free cash flow to reduce debt and fund additional share repurchases, signaling confidence in cash generation and a disciplined capital allocation strategy.
Market reaction to the earnings was muted; the stock held steady in after‑hours trading and had gained 15.42% over the past month. Investors appeared to focus on the robust 2026 guidance and the reaffirmed dividend rather than the GAAP earnings miss, indicating that the company’s operational performance and forward outlook outweighed short‑term profitability concerns.
"Antero Midstream reported another year of gathering and compression, Adjusted EBITDA, and Adjusted Free Cash Flow growth in 2025. This consistent strategy of organic growth, supplemented by attractive bolt‑on acquisitions, positions us well for continued capital efficient growth in 2026 and beyond," said CEO Michael Kennedy during the earnings call.
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