Key Highlights

  • Diluted EPS of USD 0.82 compared with USD 0.24 a year earlier and exceeded the USD 0.30 consensus estimate.
  • Revenue of USD 327.0 million rose 11% but fell short of the USD 340.62 million consensus estimate.
  • A USD 377 million litigation gain lifted net income to USD 392.7 million from USD 116.0 million.
  • Gathering volumes increased 19% to 4,067 MMcf per day, helped by the HG Acquisition and 86 newly connected wells.

Antero Midstream Corporation (NYSE:AM) reported third-quarter 2026 diluted earnings per share of USD 0.82, up from USD 0.24 a year earlier and above a consensus estimate of USD 0.30. Net income climbed to USD 392.7 million from USD 116.0 million, mainly because the company booked a USD 377 million gain after receiving damages, interest and legal fees from Veolia, which closed out a dispute over a wastewater facility.

Total revenue rose 11% to USD 327.0 million, below a consensus estimate of USD 340.62 million. Revenue is reported net of USD 22.9 million of customer relationship amortization. Gathering and processing revenue grew 7% to USD 256.7 million, and water handling revenue grew 30% to USD 70.3 million.

Volumes, Costs and the Litigation Gain

Gathering throughput averaged 4,067 MMcf per day, up 19%, and compression volumes rose 17%, supported by the HG Acquisition that closed in the first quarter and by the connection of 86 wells between periods. Well pad compression, a new service line, averaged 792 MMcf per day. High pressure gathering volumes fell 8% following the sale of Utica Shale assets in February. Other water handling volumes more than doubled, while fresh water delivery slipped 3%.

Direct operating expenses rose 44% to USD 83.2 million on acquired assets and higher wastewater trucking, disposal and blending activity. Excluding the litigation gain, operating income was about USD 180.3 million, in line with USD 180.5 million a year earlier. Income tax expense rose to USD 140.1 million, an effective rate near 26%, and net interest expense increased 8% to USD 50.7 million.

Liquidity, Capital Spending and Shareholder Returns

Operating cash flow for the first nine months was USD 1,093 million, against USD 677 million a year earlier, and included the litigation proceeds. Capital expenditures totaled USD 50.8 million in the quarter and USD 139.4 million year to date, within a 2026 capital budget of USD 190 million to USD 220 million. The company redeemed all USD 650 million of its 2028 notes in August using cash and credit facility borrowings.

Borrowings under the credit facility stood at USD 577 million at quarter end, with available capacity of USD 673 million. The company repurchased 1.3 million shares for USD 27 million in the quarter, leaving about USD 283 million of repurchase capacity. A dividend of USD 0.225 per common share is payable on November 11, 2026 to holders of record as of October 28. The filing included no numerical earnings guidance.

Operating Gauges to Follow

Several items frame the coming quarters. Gathering volumes of 4,067 MMcf per day include a high pressure gathering decline of 254 MMcf per day, which the filing links to the Utica sale and natural production decline. Credit facility borrowings of USD 577 million follow the August redemption of the 2028 notes. Capital spending of USD 139.4 million through nine months compares with the USD 190 million to USD 220 million budget. Direct operating expenses grew 44%, so the gap between revenue growth of 11% and cost growth is a margin reference. The company also intends to modify its commercial arrangements with Antero Resources for well pad compression and water services.