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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
23.4%
Sector: 9.9%
Dividend Analysis audit
INCOME
4.69%
Trailing Yield
$4.69
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
108%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Antero Midstream Corp (AM) receives a "Hold" rating with a composite score of 51.9/100, ranked #184 out of 4446 stocks. Key factor scores: Quality 50/100, Value 59/100, Momentum 59/100. This is quantitative analysis only — not investment advice.
Antero Midstream Corp (AM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Antero Midstream Corp Do?
Antero Midstream Corporation owns, operates, and develops midstream energy infrastructure. It operates through Gathering and Processing, and Water Handling segments. The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources' wells in West Virginia and Ohio. The Water Handling segment delivers fresh water; and offers pumping stations, water storage, and blending facilities. The company was incorporated in 2013 and is headquartered in Denver, Colorado. Antero Midstream Corp (AM) is classified as a large-cap stock in the Utilities sector. The company is led by CEO Paul M. Rady and employs approximately 590 people. With a market capitalization of $10.7B, AM is one of the prominent companies in the Utilities sector.
Antero Midstream Corp (AM) Stock Rating — Hold (April 2026)
As of April 2026, Antero Midstream Corp receives a Hold rating with a composite score of 51.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.AM ranks #184 out of 4,446 stocks in our coverage universe. Within the Utilities sector, Antero Midstream Corp ranks #17 of 112 stocks, placing it in the top quartile of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
AM Stock Price and 52-Week Range
Antero Midstream Corp (AM) currently trades at $22.03. The stock lost $0.18 (0.8%) in the most recent trading session. The 52-week high for AM is $23.35, which means the stock is currently trading -5.7% from its annual peak. The 52-week low is $15.07, putting the stock 46.1% above its annual trough. Recent trading volume was 1.2M shares, reflecting moderate market activity.
Is AM Overvalued or Undervalued? — Valuation Analysis
Antero Midstream Corp (AM) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 23.06x, compared to the Utilities sector average of 23.47x — a discount of 2%. The price-to-book ratio stands at 5.39x, versus the sector average of 1.98x. The price-to-sales ratio is 9.02x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, AM trades at 18.23x EV/EBITDA, versus 4.75x for the sector. The EV/EBIT multiple is 20.25x.
Overall, AM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Antero Midstream Corp Profitability — ROE, Margins, and Quality Score
Antero Midstream Corp (AM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 23.4%, compared to the Utilities sector average of 9.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 7.8% versus the sector average of 3.1%.
On a margin basis, Antero Midstream Corp reports gross margins of 80.5%, compared to 53.1% for the sector. The operating margin is 60.0% (sector: 21.5%). Net profit margin stands at 39.1%, versus 12.8% for the average Utilities stock. Revenue growth is running at 15.8% on a trailing basis, compared to 20.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
AM Debt, Balance Sheet, and Financial Health
Antero Midstream Corp has a debt-to-equity ratio of 163.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 3.41x, indicating strong short-term liquidity. Total debt on the balance sheet is $3.22B.
AM has a beta of 0.54, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Antero Midstream Corp is 92/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Antero Midstream Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, Antero Midstream Corp reported revenue of $1.18B and earnings per share (EPS) of $0.86. Net income for the quarter was $461M. Gross margin was 80.5%. Operating income came in at $707M.
In FY 2025, Antero Midstream Corp reported revenue of $1.19B and earnings per share (EPS) of $0.86. Net income for the quarter was $413M. Gross margin was 80.5%. Revenue grew 7.4% year-over-year compared to FY 2024. Operating income came in at $645M.
In Q3 2025, Antero Midstream Corp reported revenue of $312M and earnings per share (EPS) of $0.24. Net income for the quarter was $116M. Gross margin was 81.5%. Revenue grew 15.8% year-over-year compared to Q3 2024. Operating income came in at $180M.
In Q2 2025, Antero Midstream Corp reported revenue of $305M and earnings per share (EPS) of $0.26. Net income for the quarter was $125M. Gross margin was 79.3%. Revenue grew 13.2% year-over-year compared to Q2 2024. Operating income came in at $186M.
Over the past 8 quarters, Antero Midstream Corp has demonstrated a growth trajectory, with revenue expanding from $270M to $1.18B. Investors analyzing AM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
AM Dividend Yield and Income Analysis
Antero Midstream Corp (AM) currently pays a dividend yield of 4.7%. At this yield, a $10,000 investment in AM stock would generate approximately $$469.00 in annual dividend income. This compares to the Utilities sector average dividend yield of 2.8%, meaning AM offers above-average income for its sector. With a net margin of 39.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
AM Momentum and Technical Analysis Profile
Antero Midstream Corp (AM) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 15/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
AM vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing AM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full AM vs S&P 500 (SPY) comparison to assess how Antero Midstream Corp stacks up against the broader market across all factor dimensions.
AM Next Earnings Date
No upcoming earnings date has been announced for Antero Midstream Corp (AM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy AM? — Investment Thesis Summary
Antero Midstream Corp presents a balanced picture with arguments on both sides. Low volatility (stability score 92/100) reduces downside risk.
In summary, Antero Midstream Corp (AM) earns a Hold rating with a composite score of 51.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on AM stock.
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Institutional Research Dossier
Antero Midstream Corp (AM) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage of Antero Midstream Corp (AM) with a Buy rating. This rating is predicated on the company's strategic positioning within the Marcellus and Utica shale plays, its high-margin business model, and its strong financial stability, as evidenced by its low beta and robust current ratio. While valuation appears slightly elevated compared to sector peers, we believe the company's superior profitability metrics and growth prospects justify a premium.
The most critical takeaway is Antero Midstream's symbiotic relationship with Antero Resources, its primary customer. This relationship provides a degree of revenue visibility and operational efficiency that is not typically found in the midstream sector. However, it also introduces concentration risk, which must be carefully monitored. Despite this risk, we believe Antero Midstream's operational excellence and financial discipline make it an attractive investment within the utilities sector.
Business Strategy & Overview
Antero Midstream Corporation operates as a midstream service provider, primarily focused on gathering, processing, and water handling services for Antero Resources, its largest customer. The company's revenue is generated through long-term, fee-based contracts, providing a relatively stable and predictable income stream. The Gathering and Processing segment encompasses a network of pipelines and compressor stations that collect and process natural gas production from Antero Resources' wells located in West Virginia and Ohio. This segment is crucial for transporting natural gas to downstream markets.
The Water Handling segment focuses on delivering fresh water and managing produced water for Antero Resources. This includes operating pumping stations, water storage facilities, and blending facilities. Water management is an increasingly important aspect of shale development, and Antero Midstream's expertise in this area provides a valuable service to its parent company. The company's strategic positioning within the Marcellus and Utica shale plays allows it to capitalize on the growing demand for midstream infrastructure in these regions.
Antero Midstream's business strategy is heavily reliant on the production levels and development plans of Antero Resources. The company's capital allocation decisions are closely aligned with Antero Resources' drilling program, ensuring that midstream infrastructure is available to support production growth. This close relationship allows for efficient planning and execution of midstream projects. However, it also means that Antero Midstream's financial performance is directly tied to the success of Antero Resources.
The company's focus on operational efficiency and cost management is evident in its high gross and operating margins, which significantly exceed the sector averages. Antero Midstream continuously seeks to optimize its operations and reduce costs, enhancing its profitability and competitiveness. The company's long-term contracts with Antero Resources provide a degree of revenue visibility, allowing it to make informed investment decisions and manage its financial resources effectively.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
15.8%
Sector: 20.1%
-21% VS SCTR
Economic Moat Analysis
Antero Midstream possesses a narrow economic moat, primarily derived from its strategic asset base and the symbiotic relationship with Antero Resources. The company's extensive network of gathering pipelines and processing facilities in the Marcellus and Utica shale plays creates a localized competitive advantage. Building a similar infrastructure would require significant capital investment and time, deterring potential competitors. This infrastructure is difficult to replicate, providing a barrier to entry.
The close operational integration with Antero Resources further strengthens the company's moat. Antero Midstream's services are essential for Antero Resources' production activities, and the long-term contracts between the two companies provide a degree of revenue stability and predictability. This relationship fosters a level of trust and collaboration that is difficult for competitors to replicate. The integrated nature of their operations creates efficiencies and reduces transaction costs.
However, the moat is not wide due to the concentration of revenue from a single customer. While the relationship with Antero Resources is beneficial, it also introduces a significant risk. If Antero Resources were to significantly reduce its production or switch to a different midstream provider, Antero Midstream's financial performance would be negatively impacted. This customer concentration limits the company's pricing power and increases its vulnerability to changes in Antero Resources' business strategy.
Furthermore, the midstream sector is subject to regulatory risks and environmental concerns, which could potentially erode Antero Midstream's competitive advantage. Changes in regulations or increased environmental scrutiny could increase the company's operating costs and reduce its profitability. While Antero Midstream has demonstrated a commitment to environmental stewardship, it remains vulnerable to regulatory changes and public perception.
The company's efficient scale in its operating areas also contributes to its narrow moat. The existing infrastructure allows Antero Midstream to provide services at a lower cost than potential competitors who would need to build new facilities. This cost advantage, combined with the long-term contracts with Antero Resources, creates a barrier to entry and supports the company's profitability.
Financial Health & Profitability
Antero Midstream exhibits a strong financial profile, characterized by high margins, a solid balance sheet, and consistent profitability. The company's gross margin of 80.5% and operating margin of 60.0% significantly exceed the sector averages of 53.3% and 21.7%, respectively. This superior profitability reflects the company's operational efficiency and cost management practices. The net margin of 39.1% also surpasses the sector average of 12.8%, indicating a strong ability to convert revenue into profit.
The company's revenue has shown consistent growth over the past few years, with a revenue growth rate of 15.8% compared to the sector average of 20.1%. While the sector average is higher, Antero Midstream's growth is still respectable, especially considering its already high revenue base. The quarterly financial history reveals a steady increase in revenue and net income, demonstrating the company's ability to generate consistent financial performance.
Antero Midstream's balance sheet is characterized by a moderate level of debt. The company's debt-to-equity ratio of 163.00 is comparable to the sector average of 165.00, indicating a reasonable level of leverage. The current ratio of 3.41 suggests a strong ability to meet its short-term obligations. The company's financial stability is further supported by its low beta of 0.54, indicating a lower level of volatility compared to the overall market.
The company's return on equity (ROE) of 23.4% is significantly higher than the sector average of 10.0%, indicating a strong ability to generate profits from shareholders' equity. This high ROE reflects the company's efficient use of capital and its strong profitability. The company's consistent free cash flow generation further strengthens its financial position, providing it with the resources to invest in growth opportunities and return capital to shareholders. However, the provided data lacks specific free cash flow figures, which limits a more in-depth analysis of its cash flow generation capabilities.
Analyzing the quarterly financial history, we observe a consistent trend of high gross and operating margins. While revenue fluctuates slightly from quarter to quarter, the company's profitability remains consistently strong. This demonstrates the resilience of its business model and its ability to maintain profitability even in challenging market conditions. The net income figures also show a steady increase over time, reflecting the company's growth and operational improvements.
Valuation Assessment
Antero Midstream's valuation presents a mixed picture. The company's P/E ratio of 26.3x is higher than the sector average of 22.7x, suggesting that the stock is relatively expensive compared to its peers. Similarly, the company's EV/EBITDA ratio of 5.4x is also higher than the sector average of 4.8x, further indicating a premium valuation. These metrics suggest that investors are willing to pay a higher price for Antero Midstream's earnings and cash flow compared to other companies in the utilities sector.
However, the higher valuation multiples may be justified by the company's superior profitability and growth prospects. Antero Midstream's gross margin, operating margin, and net margin significantly exceed the sector averages, indicating a higher level of profitability. The company's revenue growth rate of 15.8% is also respectable, although slightly lower than the sector average of 20.1%. These factors may warrant a premium valuation, as investors are willing to pay more for a company with stronger financial performance and growth potential.
Without free cash flow data, a comprehensive discounted cash flow (DCF) analysis is not possible, which limits our ability to determine the intrinsic value of the stock. A DCF analysis would provide a more accurate assessment of the company's valuation by considering its future cash flow generation potential. However, based on the available data, it appears that the stock is trading at a premium to its peers, but this premium may be justified by its superior financial performance.
Considering the company's consistent profitability, strong balance sheet, and growth prospects, we believe that the current valuation is reasonable. While the stock is not cheap, it is not excessively expensive either. The company's high margins and efficient operations support its premium valuation. However, investors should be aware of the potential risks associated with the company's customer concentration and regulatory environment.
A relative valuation approach, comparing Antero Midstream to its peers in the midstream sector, suggests that the stock is fairly valued. While the P/E and EV/EBITDA ratios are higher than the sector averages, the company's superior profitability metrics and growth prospects justify a premium. The stock's valuation is also supported by its low beta and strong financial stability.
Risk & Uncertainty
Antero Midstream faces several risks, primarily stemming from its concentrated customer base and the inherent volatility of the energy sector. The most significant risk is the company's reliance on Antero Resources for the vast majority of its revenue. Any adverse event affecting Antero Resources, such as a decline in production, financial distress, or a change in its business strategy, could have a material negative impact on Antero Midstream's financial performance. This customer concentration creates a significant vulnerability.
Regulatory risks also pose a threat to Antero Midstream's business. The midstream sector is subject to extensive regulations related to environmental protection, safety, and pipeline operations. Changes in these regulations could increase the company's operating costs and reduce its profitability. Furthermore, the company's operations are subject to potential disruptions from accidents, natural disasters, and cyberattacks, which could result in significant financial losses and reputational damage.
Competition from other midstream service providers in the Marcellus and Utica shale plays could also put pressure on Antero Midstream's pricing and profitability. While the company has a strong presence in the region, it faces competition from larger and more diversified midstream companies. Increased competition could lead to lower margins and reduced market share. The company's ability to maintain its competitive advantage will depend on its ability to provide efficient and cost-effective services.
The company's debt levels also present a risk. While the debt-to-equity ratio is comparable to the sector average, a high level of debt increases the company's financial leverage and its vulnerability to changes in interest rates and economic conditions. The company's ability to service its debt obligations will depend on its ability to generate consistent cash flow. A decline in revenue or an increase in operating costs could strain the company's financial resources and increase the risk of default.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAntero Midstream's strategic positioning in the prolific Marcellus and Utica shale plays, coupled with its long-term contracts with Antero Resources, provides a stable and predictable revenue stream.
BULL VIEWThe company's superior profitability metrics, including high gross and operating margins, demonstrate its operational efficiency and cost management practices, justifying a premium valuation.
BULL VIEWAntero Midstream's low beta and strong current ratio indicate a lower level of volatility and a strong ability to meet its short-term obligations, making it an attractive investment in a volatile market.
The Bear Case
BEAR VIEWAntero Midstream's heavy reliance on Antero Resources for revenue exposes it to significant customer concentration risk, making its financial performance vulnerable to any adverse event affecting its primary customer.
BEAR VIEWThe company's higher P/E and EV/EBITDA ratios compared to sector peers suggest that the stock is overvalued, potentially limiting its upside potential.
BEAR VIEWIncreased regulatory scrutiny and environmental concerns in the midstream sector could increase Antero Midstream's operating costs and reduce its profitability, negatively impacting its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score AM and 4,400+ other equities.
Antero Midstream Corp exhibits a 362% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
7.8%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
80.5%
Sector: 53.1%
Operating Margin
Core business profitability
60.0%
Sector: 21.5%
Net Margin
Bottom-line profitability
39.1%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.83%
Yield Delta+66%
Income Projection audit
A $10,000 investment would generate approximately $469 annually in dividends at the current trailing rate.
Antero Midstream Corp. Experiences Revision in Its Stock Evaluation Amid Market Dynamics
Antero Midstream Corp. has adjusted its stock valuation, now featuring a P/E ratio of 26 and a price-to-book value of 5.49. The company exhibits strong operational efficiency with an EV to EBIT of 18.82 and boasts a dividend yield of 3.98%, alongside impressive returns that have significantly outperformed the S&P 500 over the past one, three, and five years. This adjustment reflects changing market dynamics in the oil sector and the company's competitive standing.
