Antero Midstream Announces Second Quarter 2025 Financial and Operating Results and Increased Guidance
DENVER, July 30, 2025 /PRNewswire/ -- Antero Midstream Corporation (NYSE:AM) ("Antero Midstream" or the "Company") today announced its second 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 June 30, 2025.
Second Quarter 2025 Highlights:
Low pressure gathering and processing volumes increased by 6% compared to the prior year quarter
Net Income was $125 million, or $0.26 per diluted share, a 44% per share increase compared to the prior year quarter
Adjusted Net Income was $138 million, or $0.29 per diluted share, a 26% per share increase compared to the prior year quarter (non-GAAP measure)
Adjusted EBITDA was $284 million, an 11% increase compared to the prior year quarter (non-GAAP measure)
Capital expenditures were $45 million, a 13% decrease compared to the prior year quarter
Free Cash Flow after dividends was $82 million, an 89% increase compared to the prior year quarter (non-GAAP measure)
Leverage was 2.8x as of June 30, 2025 (non-GAAP measure)
2025 Guidance Updates:
Increasing net income, Adjusted Net Income and Adjusted EBITDA guidance by $10 million (non-GAAP measure)
Decreasing interest expense, current income tax expense, and capital expenditures each by $5 million
Increasing Free Cash Flow before and after dividends by $25 million (non-GAAP measure)
Paul Rady, Chairman and CEO said, "During the quarter Antero Midstream gathered 3.5 Bcf/d of production, which was a 6% increase year-over-year and a new company record. This growth coincides with the significant demand growth seen along the U.S. Gulf Coast LNG facilities over the last year. Looking ahead, we continue to see significant demand growth from Gulf Coast LNG facilities as well as natural gas fired power demand from data center growth in Appalachia. As the critical first link to delivering gas to LNG and power demand, Antero Midstream is well positioned for future growth opportunities."
Brendan Krueger, CFO of Antero Midstream, said "The record gathering and processing volumes in the second quarter led to an 11% year-over-year increase in EBITDA, while capital expenditures declined by 13%. This capital efficiency drove an 89% increase in Free Cash Flow compared to the second quarter of 2024."
Mr. Krueger continued, "Antero Midstream's consistent Free Cash Flow generation has enabled the Company to reduce debt by approximately $170 million over the past year, including nearly $100 million year-to-date. This debt reduction, combined with double-digit year-over-year EBITDA growth resulted in leverage declining to 2.8x as of June 30, 2025. In addition to the debt reduction, Antero Midstream has purchased approximately $83 million of shares year-to-date through July 30, 2025."
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 second quarter of 2025, Antero Midstream repurchased 1.0 million shares for $17 million. Antero Midstream had approximately $426 million of remaining capacity under its $500 million authorized share repurchase program as of June 30, 2025. During the quarter, Antero Midstream also purchased $9 million of shares related to satisfying tax withholding obligations incurred upon the vesting of equity awards. Year-to-date through June 30, 2025, total shares purchased under the share repurchase program and for tax withholding obligations have totaled 4.4 million shares at a weighted average price of $16.62 per share. In addition, July month-to-date the Company has repurchased 0.6 million shares for $11 million.
2025 Guidance Update
Antero Midstream is increasing its Net Income, Adjusted Net Income, and Adjusted EBITDA guidance. The company is decreasing its interest expense, capital expenditures, and current income tax guidance. These changes result in a $25 million increase in Free Cash Flow before and after dividends.
The following is a summary of Antero Midstream's updated 2025 guidance ($ in millions, except per share amounts):
Twelve Months EndedDecember 31, 2025
Change vs.PriorGuidance
Low
High
(At midpoint)
Net Income
$455
$495
$10
Adjusted Net Income
510
550
10
Adjusted EBITDA
1,090
1,130
10
Capital Expenditures
170
190
(5)
Interest Expense
190
200
(5)
Current Income Tax Expense
—
—
(5)
Free Cash Flow Before Dividends
715
755
25
Dividend Per Share
$0.90
—
Free Cash Flow After Dividends
275
325
25
2024 ESG Report
Antero Midstream published its 2024 ESG Report. This year's report highlights the Company's emissions reduction progress, increased water recycling rate, and continued commitment to safety across our operations. The report can be found at www.anteromidstream.com/esg.
Second Quarter 2025 Financial Results
Low pressure gathering volumes for the second quarter of 2025 averaged 3,460 MMcf/d, a 6% increase compared to the prior year quarter. Compression volumes for the second quarter of 2025 averaged 3,447 MMcf/d, a 6% increase compared to the second quarter of 2024. High pressure gathering volumes averaged 3,221 MMcf/d, an 8% increase compared to the prior year quarter. Fresh water delivery volumes averaged 98 MBbl/d during the quarter, a 21% increase compared to the second quarter of 2024.
Gross processing volumes from the processing and fractionation joint venture (the "Joint Venture") averaged 1,687 MMcf/d for the second 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 1.6 Bcf/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
June 30,
Average Daily Volumes:
2024
2025
%Change
Low Pressure Gathering (MMcf/d)
3,258
3,460
6 %
Compression (MMcf/d)
3,246
3,447
6 %
High Pressure Gathering (MMcf/d)
2,994
3,221
8 %
Fresh Water Delivery (MBbl/d)
81
98
21 %
Gross Joint Venture Processing (MMcf/d)
1,588
1,687
6 %
Gross Joint Venture Fractionation (MBbl/d)
40
40
*
* Not meaningful or applicable.
For the three months ended June 30, 2025, revenues were $305 million, comprised of $239 million from the Gathering and Processing segment and $66 million from the Water Handling segment, net of $18 million of amortization of customer relationships. Water Handling revenues include $35 million from wastewater handling and high rate water transfer services.
Direct operating expenses for the Gathering and Processing and Water Handling segments were $26 million and $37 million, respectively, for a total of $63 million. Water Handling operating expenses include $32 million from wastewater handling and high rate water transfer services. General and administrative expenses excluding equity-based compensation were $11 million during the second quarter of 2025. Total operating expenses during the second quarter of 2025 included $11 million of equity-based compensation expense and $33 million of depreciation expense.
Net Income was $125 million, or $0.26 per diluted share, a 44% per share increase compared to the prior year quarter. Net Income adjusted for amortization of customer relationships, loss on early extinguishment of debt, and loss on asset sale, net of tax effects of reconciling items, or Adjusted Net Income, was $138 million. Adjusted Net Income was $0.29 per diluted share, a 26% per share increase compared to the prior year quarter.
The following table reconciles Net Income to Adjusted Net Income (in thousands):
Three Months Ended
June 30,
2024
2025
Net Income
$
86,037
124,513
Amortization of customer relationships
17,668
17,668
Loss on early extinguishment of debt
13,691
—
Loss on asset sale
1,379
—
Tax effect of reconciling items (1)
(8,430)
(4,564)
Adjusted Net Income
$
110,345
137,617
(1) The statutory tax rate for each of the three months ended June 30, 2024 and 2025 was approximately 25.8%.
Adjusted EBITDA was $284 million, an 11% increase compared to the prior year quarter. Interest expense was $48 million, an 8% decrease compared to the prior year quarter, driven primarily by lower outstanding average total debt. Capital expenditures were $45 million, a 13% decrease compared to the second quarter of 2024. Current income tax expense was $2 million. Looking forward, the Company expects a reversal of substantially all of the cash paid for income taxes during the first half of the year. Free Cash Flow before dividends was $190 million, a 25% increase compared to the prior year quarter. Free Cash Flow after dividends was $82 million, an 89% 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
June 30,
2024
2025
Net Income
$
86,037
124,513
Interest expense, net
52,186
47,962
Income tax expense
28,436
43,985
Depreciation expense
37,576
33,364
Amortization of customer relationships
17,668
17,668
Equity-based compensation
11,599
11,407
Equity in earnings of unconsolidated affiliates
(27,597)
(30,016)
Distributions from unconsolidated affiliates
33,970
35,355
Loss on early extinguishment of debt
13,691
—
Other operating expense (1)
1,426
50
Adjusted EBITDA
$
254,992
284,288
Interest expense, net
(52,186)
(47,962)
Capital expenditures (accrual-based)
(51,276)
(44,847)
Current income tax expense
—
(1,908)
Free Cash Flow before dividends
$
151,530
189,571
Dividends declared (accrual-based)
(108,284)
(107,678)
Free Cash Flow after dividends
$
43,246
81,893
(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
June 30,
2024
2025
Net cash provided by operating activities
$
215,806
265,183
Amortization of deferred financing costs
(1,495)
(1,314)
Settlement of asset retirement obligations
250
48
Changes in working capital
(11,755)
(29,499)
Capital expenditures (accrual-based)
(51,276)
(44,847)
Free Cash Flow before dividends
$
151,530
189,571
Dividends declared (accrual-based)
(108,284)
(107,678)
Free Cash Flow after dividends
$
43,246
81,893
Second Quarter 2025 Operating Update
During the second quarter of 2025, Antero Midstream connected 18 wells to its gathering system and serviced 11 wells with its fresh water delivery system.
Capital Investments
Capital expenditures were $45 million during the second quarter of 2025. The Company invested $22 million in gathering and compression, $20 million in water infrastructure and $3 million in the Stonewall Joint Venture.
Conference Call
A conference call is scheduled on Thursday, July 31, 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, August 7, 2025 at 10:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750399. 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, August 7, 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:
the financial performance of Antero Midstream's assets, without regard to financing methods, capital structure or historical cost basis;
its operating performance and return on capital as compared to other publicly traded companies in the midstream energy sector, without regard to financing or capital structure; and
the viability of acquisitions and other capital expenditure projects.
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 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
June 30,
2024
2025
Capital expenditures (as reported on a cash basis)
$
43,399
40,064
Change in accrued capital costs
7,877
4,783
Capital expenditures (accrual basis)
$
51,276
44,847
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):
