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Why Is Antero Midstream Corporation (AM) Up 7.1% Since Last Earnings Report?

It has been about a month since the last earnings report for Antero Midstream Corporation (AM). Shares have added about 7.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Antero Midstream Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Antero Midstream Q3 Earnings In Line, Revenues Miss

Antero Midstreamreported third-quarter adjusted earnings per share of 19 cents, in line with the Zacks Consensus Estimate but down from year-ago quarter earnings of 22 cents.

Total quarterly revenues of $231 million missed the Zacks Consensus Estimate of $240 million. The top line, however, increased from $225 million in the year-ago quarter.

Operational Performance

In third-quarter 2022, average daily compression volumes were recorded at 2,794 million cubic feet (MMcf/d), up from the year-ago level of 2,734 MMcf/d. On a per-Mcf basis, the compression fee was 21 cents, improving from the prior-year quarter’s 20 cents.

In the reported quarter, high-pressure gathering volumes totaled 2,802 MMcf/d, down from the year-ago period’s 2,811 MMcf/d. On a per-Mcf basis, the average gathering high-pressure fee was 21 cents, improving from the prior-year level of 20 cents.

Low-pressure gathering volumes averaged 2,952 MMcf/d, up from the third-quarter 2021 figure of 2,880 MMcf/d. On a per-Mcf basis, the average gathering low-pressure fee was 34 cents, higher than the prior-year level of 33 cents.

Freshwater delivery volumes were at 103 MBbls/d, up 13% from the prior-year level of 91 MBbls/d. On a per-barrel basis, the average freshwater distribution fee was $4.04 per barrel in the reported quarter, up from $3.96.

Operating Expenses

In third-quarter 2022, direct operating expenses of Antero Midstream were recorded at $46.6 million, up from $39.5 million a year ago.

Antero Midstream’s total operating expenses in the quarter were $93.3 million, increasing from the third-quarter 2021 levels of almost $83 million.

Balance Sheet

As of Sep 30, Antero Midstream had no cash and cash equivalents. As of the same date, Antero Midstream had $3,143.2 million of long-term debt.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Antero Midstream Corporation has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Antero Midstream Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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