Antero Midstream Announces Third Quarter 2025 Financial and Operating Results

DENVER, Oct. 29, 2025 /PRNewswire/ -- Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today announced its third quarter 2025 financial and operating results. The relevant unaudited condensed consolidated financial statements are included in Antero Midstream's Quarterly Report on Form 10-Q for the three months ended September 30, 2025.

Third Quarter 2025 Highlights:

Michael Kennedy, CEO and President of Antero Midstream said, "Antero Midstream reported another strong quarter operationally with 5% year-over-year growth in gathering and compression volumes. Additionally, fresh water delivery volumes increased by 30% year-over-year while servicing just one completion crew. This completion crew set records for completion stages per day and pumping hours, highlighting the deliverability, consistency, and importance of Antero Midstream's world-class integrated water system."

Justin Agnew, CFO of Antero Midstream, said "Antero Midstream's continued EBITDA growth with declining capital resulted in third quarter 2025 Free Cash Flow after dividends nearly doubling from last year. This significant Free Cash Flow generation allowed us to reduce absolute debt while returning incremental capital to shareholders during the quarter. Our balanced approach of debt reduction and purchasing shares, which have totaled $105 million and $114 million in 2025, respectively, further enhances our financial flexibility."

Mr. Agnew continued, "The continuous credit improvement also resulted in a credit rating upgrade and allowed Antero Midstream to refinance its nearest-term debt maturity out to 2033 at an attractive coupon. This upsized refinancing transaction leaves Antero Midstream with no near-term maturities, further enhancing our financial profile."

For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Free Cash Flow before and after dividends and Leverage please see "Non-GAAP Financial Measures and Definitions."

Share Repurchase Program

During the third quarter of 2025, Antero Midstream repurchased 2.3 million shares for $41 million. Antero Midstream had approximately $385 million of remaining capacity under its $500 million authorized share repurchase program as of September 30, 2025. Year-to-date through September 30, 2025, total shares purchased under the share repurchase program and for tax withholding obligations have totaled 6.7 million shares at a weighted average price of $17.05 per share.

Third Quarter 2025 Operating and Strategic Update

During the third quarter of 2025, Antero Midstream connected 16 wells to its gathering system and serviced 17 wells with its fresh water delivery system. Capital expenditures were $51 million during the third quarter of 2025. The Company invested $24 million in gathering and compression, $26 million in water infrastructure and $1 million in the Stonewall Joint Venture. The increase in water infrastructure capital was driven by the completion of the integrated water system connecting the entire liquids-rich midstream corridor in the Marcellus Shale.

The remainder of the capital in the 2025 budget is focused on additional well connect and fresh water delivery capital for the 2026 development plan, including the first Marcellus dry gas pad on Antero Midstream dedicated acreage. This pad is located on the dry gas gathering and compression assets acquired in 2022 where there is underutilized midstream capacity. This dry gas development will have access to local Appalachian markets with the ability to support future demand growth from natural gas fired power generation and AI datacenters.

In addition, Antero Resources announced that it has completed approximately $260 million of acquisitions in the Marcellus Shale. The acquisitions include 75 to 100 MMcfe/d of production already gathered by Antero Midstream and 10 undeveloped locations that were free of midstream dedication, allowing Antero Midstream the right of dedication. Antero Resources also announced that it is increasing its 2025 organic land leasing program by $50 million in the liquids-rich Marcellus fairway. This program has successfully added 79 locations year-to-date that are dedicated to Antero Midstream.

Third Quarter 2025 Financial Results

Low pressure gathering volumes for the third quarter of 2025 averaged 3,432 MMcf/d, a 5% increase compared to the prior year quarter. Compression volumes for the third quarter of 2025 averaged 3,421 MMcf/d, a 5% increase compared to the third quarter of 2024. High pressure gathering volumes averaged 3,170 MMcf/d, a 4% increase compared to the prior year quarter. Fresh water delivery volumes averaged 92 MBbl/d during the quarter, a 30% increase compared to the third quarter of 2024.

Gross processing volumes from the processing and fractionation joint venture (the "Joint Venture") averaged 1,714 MMcf/d for the third quarter of 2025, a 6% increase compared to the prior year quarter. Joint Venture processing capacity was over 100% utilized during the quarter based on nameplate processing capacity of 1,600 MMcf/d. Gross Joint Venture fractionation volumes averaged 40 MBbl/d, in line with the prior year quarter. Joint Venture fractionation capacity was 100% utilized during the quarter based on nameplate fractionation capacity of 40 MBbl/d.

Three Months Ended

September 30,

Average Daily Volumes:

2024

2025

Change

Low Pressure Gathering (MMcf/d)

3,277

3,432

5 %

Compression (MMcf/d)

3,269

3,421

5 %

High Pressure Gathering (MMcf/d)

3,046

3,170

4 %

Fresh Water Delivery (MBbl/d)

30 %

Gross Joint Venture Processing (MMcf/d)

1,620

1,714

6 %

Gross Joint Venture Fractionation (MBbl/d)

* Not meaningful or applicable.

For the three months ended September 30, 2025, revenues were $295 million, comprised of $241 million from the Gathering and Processing segment and $54 million from the Water Handling segment, net of $18 million of amortization of customer relationships. Water Handling revenues include $26 million from wastewater handling and high rate water transfer services.

Direct operating expenses for the Gathering and Processing and Water Handling segments were both $29 million for a total of $58 million. Water Handling operating expenses include $22 million from wastewater handling and high rate water transfer services. General and administrative expenses excluding equity-based compensation were $10 million during the third quarter of 2025. Total operating expenses during the third quarter of 2025 included $11 million of equity-based compensation expense and $34 million of depreciation expense.

Net Income was $116 million, or $0.24 per diluted share, a 14% per share increase compared to the prior year quarter. Net Income adjusted for amortization of customer relationships, impairment of property and equipment, loss on early extinguishment of debt and other, net of tax effects of reconciling items, or Adjusted Net Income, was $130 million. Adjusted Net Income was $0.27 per diluted share, a 17% per share increase compared to the prior year quarter.

The following table reconciles Net Income to Adjusted Net Income (in thousands):

Three Months Ended

September 30,

2024

2025

Net Income

99,740

115,984

Amortization of customer relationships

17,668

Impairment of property and equipment

332

167

Loss on early extinguishment of debt

341

1,313

Other (1)

(473)

—

Tax effect of reconciling items (2)

(4,601)

(4,946)

Adjusted Net Income

113,007

130,186

(1)

Other represents gain on asset sale

(2)

The statutory tax rate for each of the three months ended September 30, 2024 and 2025 was approximately 25.8%.

Adjusted EBITDA was $281 million, a 10% increase compared to the prior year quarter. Interest expense was $47 million, a 9% decrease compared to the prior year quarter, driven primarily by lower outstanding average total debt. Capital expenditures were $51 million, a 9% decrease compared to the third quarter of 2024. Current income tax benefit was $2 million, which reflects a reversal of the cash paid for federal income taxes during the first half of the year. Free Cash Flow before dividends was $185 million, a 25% increase compared to the prior year quarter. Free Cash Flow after dividends was $78 million, a 94 % increase compared to the prior year quarter.

The following table reconciles Net Income to Adjusted EBITDA and Free Cash Flow before and after dividends (in thousands):

Three Months Ended

September 30,

2024

2025

Net Income

99,740

115,984

Interest expense, net

51,812

47,196

Income tax expense

38,202

45,688

Depreciation expense

32,534

34,465

Amortization of customer relationships

17,668

Equity-based compensation

11,945

11,026

Equity in earnings of unconsolidated affiliates

(27,668)

(29,688)

Distributions from unconsolidated affiliates

31,981

37,365

Impairment of property and equipment

332

167

Loss on early extinguishment of debt

341

1,313

Other operating expense (income), net (1)

(424)

Adjusted EBITDA

256,463

281,233

Interest expense, net

(51,812)

(47,196)

Capital expenditures (accrual-based)

(56,265)

(51,336)

Current income tax benefit

—

2,290

Free Cash Flow before dividends

148,386

184,991

Dividends declared (accrual-based)

(108,298)

(107,187)

Free Cash Flow after dividends

40,088

77,804

(1)

Other operating expense represents accretion of asset retirement obligations and loss on asset sale.

The following table reconciles net cash provided by operating activities to Free Cash Flow before and after dividends (in thousands):

Three Months Ended

September 30,

2024

2025

Net cash provided by operating activities

184,936

212,836

Amortization of deferred financing costs

(1,571)

(1,317)

Settlement of asset retirement obligations

Changes in working capital

21,187

24,749

Capital expenditures (accrual-based)

(56,265)

(51,336)

Free Cash Flow before dividends

148,386

184,991

Dividends declared (accrual-based)

(108,298)

(107,187)

Free Cash Flow after dividends

40,088

77,804

Conference Call

A conference call is scheduled on Thursday, October 30, 2025 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, November 6, 2025 at 10:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750400. 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, November 6, 2025 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:

Antero Midstream defines 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. Free Cash Flow after dividends is defined as Free Cash Flow before dividends less accrual-based dividends declared for the quarter. Antero Midstream uses 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 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

September 30,

2024

2025

Capital expenditures (as reported on a cash basis)

56,428

47,750

Change in accrued capital costs

(163)

3,586

Capital expenditures (accrual basis)

56,265

51,336

Antero Midstream defines Net Debt as consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash and cash equivalents. 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):

September 30,

2024

2025

Bank credit facility

539,900

379,600

5.75% senior notes due 2027

650,000

—

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

Consolidated total debt

3,189,900

3,029,600

Less: Cash and cash equivalents

—

Consolidated net debt

3,189,900

3,029,600

The following table reconciles Net Income to Adjusted EBITDA for the last twelve months ended September 30, 2025 (in thousands):

Twelve Months Ended

September 30, 2025

Net Income

472,423

Interest expense, net

193,289

Income tax expense

170,372

Depreciation expense

133,372

Amortization of customer relationships

70,672

Impairment of property and equipment

984

Equity-based compensation

46,296

Equity in earnings of unconsolidated affiliates

(115,502)

Distributions from unconsolidated affiliates

140,844

Loss on early extinguishment of debt

1,313

Other operating income, net (1)

Adjusted EBITDA

1,114,072

(1)

Other operating expense, net represents accretion of asset retirement obligation and gain on asset sale.

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, 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 and in the Middle East, and world health events, information regarding long-term financial and operating outlooks for Antero Midstream and Antero Resources, information regarding Antero Resources' expected future growth and its ability to meet its drilling and development plan and the participation level of Antero Resources' drilling partner, the impact on demand for Antero Midstream's services as a result of incremental production by Antero Resources, the impact of recently enacted legislation, and expectations regarding the amount and timing of litigation awards are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. All forward-looking statements speak only as of the date of this release. Although Antero Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Midstream expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

Antero Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond Antero Midstream's control. These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruptions, environmental risks, Antero Resources' drilling and completion and other operating risks, regulatory changes or changes in law, the uncertainty inherent in projecting Antero Resources' future rates of production, cash flows and access to capital, the timing of development expenditures, impacts of world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading "Risk Factors" in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2024.

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

December 31,

September 30,

2024

2025

Assets

Current assets:

Accounts receivable–Antero Resources

115,180

108,561

Accounts receivable–third party

832

809

Income tax receivable

—

1,896

Other current assets

2,052

2,107

Total current assets

118,064

113,373

Long-term assets:

Property and equipment, net

3,881,621

3,907,852

Investments in unconsolidated affiliates

603,956

592,238

Customer relationships

1,144,759

1,091,755

Other assets, net

13,348

11,870

Total assets

5,761,748

5,717,088

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable–Antero Resources

4,114

4,113

Accounts payable–third party

12,308

17,609

Accrued liabilities

83,555

66,775

Other current liabilities

635

1,524

Total current liabilities

100,612

90,021

Long-term liabilities:

Long-term debt

3,116,958

3,008,694

Deferred income tax liability, net

413,608

538,079

Other

15,399

15,045

Total liabilities

3,646,577

3,651,839

Stockholders' equity:

Preferred stock, $0.01 par value: 100,000 authorized as of December 31, 2024 and

September 30, 2025

Series A non-voting perpetual preferred stock; 12 designated and 10 issued and

outstanding as of December 31, 2024 and September 30, 2025

—

Common stock, $0.01 par value; 2,000,000 authorized; 479,422 and 476,712 issued and

outstanding as of December 31, 2024 and September 30, 2025, respectively

4,794

4,767

Additional paid-in capital

2,019,830

1,972,218

Retained earnings

90,547

88,264

Total stockholders' equity

2,115,171

2,065,249

Total liabilities and stockholders' equity

5,761,748

5,717,088

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In thousands, except per share amounts)

Three Months Ended September 30,

2024

2025

Revenue:

Gathering and compression–Antero Resources

234,847

249,827

Water handling–Antero Resources

52,294

62,129

Water handling–third party

397

533

Amortization of customer relationships

(17,668)

Total revenue

269,870

294,821

Operating expenses:

Direct operating

51,724

57,886

General and administrative (including $11,945 and $11,026 of equity-based

compensation in 2024 and 2025, respectively)

22,872

21,316

Facility idling

405

445

Depreciation

32,534

34,465

Impairment of property and equipment

332

167

Other operating (income) expense, net

(424)

Total operating expenses

107,443

114,328

Operating income

162,427

180,493

Other income (expense):

Interest expense, net

(51,812)

(47,196)

Equity in earnings of unconsolidated affiliates

27,668

29,688

Loss on early extinguishment of debt

(341)

(1,313)

Total other expense

(24,485)

(18,821)

Income before income taxes

137,942

161,672

Income tax expense

(38,202)

(45,688)

Net income and comprehensive income

99,740

115,984

Net income per common share–basic

0.21

0.24

Net income per common share–diluted

0.21

0.24

Weighted average common shares outstanding:

Basic

481,288

478,020

Diluted

485,532

481,814

ANTERO MIDSTREAM CORPORATION

Selected Operating Data (Unaudited)

Amount of

Three Months Ended September 30,

Increase

Percentage

2024

2025

or Decrease

Change

Operating Data:

Gathering—low pressure (MMcf)

301,468

315,719

14,251

Compression (MMcf)

300,790

314,729

13,939

Gathering—high pressure (MMcf)

280,189

291,637

11,448

Fresh water delivery (MBbl)

6,514

8,472

1,958

Other fluid handling (MBbl)

4,751

4,966

215

Wells serviced by fresh water delivery

Gathering—low pressure (MMcf/d)

3,277

3,432

155

Compression (MMcf/d)

3,269

3,421

152

Gathering—high pressure (MMcf/d)

3,046

3,170

124

Fresh water delivery (MBbl/d)

Other fluid handling (MBbl/d)

Average Realized Fees (1):

Average gathering—low pressure fee ($/Mcf)

0.36

—

Average compression fee ($/Mcf)

0.21

0.22

0.01

Average gathering—high pressure fee ($/Mcf)

0.23

—

Average fresh water delivery fee ($/Bbl)

4.31

4.37

0.06

Joint Venture Operating Data:

Processing—Joint Venture (MMcf)

149,039

157,696

8,657

Fractionation—Joint Venture (MBbl)

3,680

—

Processing—Joint Venture (MMcf/d)

1,620

1,714

Fractionation—Joint Venture (MBbl/d)

—

Not meaningful or applicable.

(1)

The average realized fees for the three months ended September 30, 2025 include annual CPI-based adjustments of approximately 1.6%.

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Results of Segment Operations (Unaudited)

(In thousands)

Three Months Ended September 30, 2025

Gathering and

Water

Consolidated

Processing

Handling

Unallocated

Total

Revenues:

Revenue–Antero Resources

249,827

62,129

—

311,956

Revenue–third-party

—

533

—

533

Amortization of customer relationships

(9,271)

(8,397)

—

(17,668)

Total revenues

240,556

54,265

—

294,821

Operating expenses:

Direct operating

29,077

28,809

—

57,886

General and administrative (excluding equity-based

compensation)

5,670

2,903

1,717

10,290

Equity-based compensation

7,662

3,079

285

11,026

Facility idling

—

445

—

445

Depreciation

19,419

15,046

—

34,465

Impairment of property and equipment

—

167

—

167

Other operating expense, net

—

Total operating expenses

61,828

50,498

2,002

114,328

Operating income

178,728

3,767

(2,002)

180,493

Other income (expense):

Interest expense, net

—

(47,196)

Equity in earnings of unconsolidated affiliates

29,688

—

29,688

Loss on early extinguishment of debt

—

(1,313)

Total other income (expense)

29,688

—

(48,509)

(18,821)

Income before income taxes

208,416

3,767

(50,511)

161,672

Income tax expense

—

(45,688)

Net income and comprehensive income

208,416

3,767

(96,199)

115,984

ANTERO MIDSTREAM CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Nine Months Ended September 30,

2024

2025

Cash flows provided by (used in) operating activities:

Net income

289,703

361,234

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

107,205

100,577

Impairment of property and equipment

332

984

Deferred income tax expense

103,126

124,471

Equity-based compensation

32,871

34,835

Equity in earnings of unconsolidated affiliates

(82,795)

(87,724)

Distributions from unconsolidated affiliates

100,911

106,095

Amortization of customer relationships

53,004

Amortization of deferred financing costs

4,721

3,938

Settlement of asset retirement obligations

(513)

(317)

Loss on early extinguishment of debt

14,091

1,313

Other operating activities

1,046

143

Changes in assets and liabilities:

Accounts receivable–Antero Resources

(9,427)

6,619

Accounts receivable–third party

883

373

Income tax receivable

—

(1,896)

Other current assets

(360)

Accounts payable–Antero Resources

1,143

(1)

Accounts payable–third party

(1,100)

1,081

Income taxes payable

—

594

Accrued liabilities

(3,961)

(28,002)

Net cash provided by operating activities

611,303

676,961

Cash flows provided by (used in) investing activities:

Additions to gathering systems, facilities and other

(110,514)

(67,960)

Additions to water handling systems

(23,493)

(45,477)

Additional investments in unconsolidated affiliate

(893)

(6,653)

Acquisition of gathering systems and facilities

(69,992)

—

Other investing activities

1,816

850

Net cash used in investing activities

(203,076)

(119,240)

Cash flows provided by (used in) financing activities:

Dividends to common stockholders

(329,252)

(331,820)

Dividends to preferred stockholders

(413)

Repurchases of common stock

—

(86,669)

Issuance of Senior Notes

600,000

650,000

Redemption of Senior Notes

(560,862)

(650,000)

Payments of deferred financing costs

(12,738)

(7,030)

Borrowings on Credit Facility

1,299,500

1,389,500

Repayments on Credit Facility

(1,389,700)

(1,494,200)

Employee tax withholding for settlement of equity-based compensation awards

(14,828)

(27,089)

Net cash used in financing activities

(408,293)

(557,721)

Net decrease in cash and cash equivalents

(66)

—

Cash and cash equivalents, beginning of period

—

Cash and cash equivalents, end of period

—

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

160,700

160,951

Cash received (paid) during the period for income taxes

104

(2,600)

Increase in accrued capital expenditures and accounts payable for property and equipment

2,413

13,381

SOURCE Antero Midstream Corporation