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Antero Midstream Corp. 10-Q Summary: Q2 2026

Business Context and Reporting Period

This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Antero Midstream Corp. is a growth-oriented midstream energy company providing gathering, compression, processing, and water handling services primarily to Antero Resources in the Appalachian Basin. The quarter was defined by the integration of the HG Acquisition (closed February 3, 2026) and the completion of the Utica Shale Divestiture (closed February 23, 2026).

Key Financial Metrics

Note: Cash and cash equivalents were depleted to $0 as of June 30, 2026, primarily due to the funding of the HG Acquisition and the release of restricted cash.

Material Changes vs. Prior Period

• Revenue Growth: Total revenue increased 7% quarter-over-quarter and 8% year-to-date, driven by the HG Acquisition adding gathering and water handling assets. Gathering revenue rose due to increased throughput volumes (60 Bcf increase QoQ) and CPI-based fee adjustments.
• Net Income Decline: Net income decreased 9% QoQ and 5% YTD. This was primarily due to increased interest expense (16% QoQ increase) from new debt issuances (2033 and 2034 Notes) and transaction expenses related to the HG Acquisition ($9 million YTD).
• Asset Base: Total assets increased to $6.36 billion from $5.88 billion, reflecting the addition of HG Midstream assets ($1.1 billion acquisition) and customer relationship intangibles, partially offset by the Utica Shale divestiture.
• Debt Profile: Long-term debt increased by $344 million to $3.57 billion. The company utilized the Credit Facility ($342 million outstanding) and proceeds from the Utica Shale Divestiture ($379 million) to fund the HG Acquisition.

Guidance, Outlook, and Risks

• Capital Budget: The 2026 capital budget is projected between $190 million and $220 million to support Antero Resources' development program.
• Dividends: The Board declared a quarterly cash dividend of $0.225 per share for Q2 2026, payable August 12, 2026. There are $68,750 in accumulated dividends in arrears on Series A Preferred Stock.
• Share Repurchases: The company repurchased approximately 0.4 million shares in Q2 2026 for $8 million. Approximately $310 million of capacity remains under the $500 million repurchase program.
• Debt Redemption: On July 24, 2026, the company called for redemption of all $650 million of its 5.75% Senior Notes due 2028, scheduled for August 8, 2026.
• Legal Contingency: The company received approximately $371 million in damages and interest from Veolia in July 2026 regarding the Clearwater Facility litigation. This amount is expected to be recorded as a gain in Q3 2026.
• Risks: Primary risks include dependence on Antero Resources for substantially all revenues, commodity price volatility affecting Antero's drilling plans, and inflationary pressures on operating costs (mitigated by CPI adjustments in contracts).

Investor Verification Checklist

• Cash Position: Verify the impact of the $0 cash balance on liquidity and the reliance on the Credit Facility ($908 million available) for working capital and dividends.
• Debt Maturity: Confirm the funding source and execution of the $650 million 2028 Notes redemption scheduled for August 2026.
• Legal Settlement: Monitor the Q3 2026 financial statements for the recognition of the $371 million Veolia litigation gain.
• Acquisition Integration: Review the final purchase price allocation for the HG Acquisition, which is still being finalized.
• Preferred Stock Arrears: Track the status of the $68,750 in accumulated dividends in arrears on Series A Preferred Stock.