Antero Midstream Hits 14% Volume Growth, $288M EBITDA and Closes HG Deal
Antero Midstream's first quarter volumes rose 14%, driving adjusted EBITDA of $288 million, a 5% increase, and adjusted net income of $138 million, up 4% per diluted share. The company invested $42 million in capital expenditures, repurchased 1.0 million shares for $18 million, and completed its largest HG Energy acquisition.
1. First Quarter Financial Results
Antero Midstream reported gathering volumes of 3,805 MMcf/d, a 14% rise year-over-year, and generated $288 million in adjusted EBITDA, up 5%, while net income reached $118 million. Adjusted net income was $138 million, or $0.29 per share, marking a 4% per-share increase. Capital expenditures totaled $42 million and free cash flow after dividends improved 8% to $85 million.
2. HG Energy Acquisition and Integration
The company completed its largest acquisition to date of HG Energy in early February and divested its Ohio Utica shale assets later that month. Integration efforts included commissioning the first pad on acquired assets in Q2 and commencing a water system pipeline to enhance fresh water delivery volumes in 2027. These actions support future volumetric growth and connectivity expansion.
3. Capital Allocation and Outlook
During Q1, Antero Midstream repurchased 1.0 million shares for $18 million, leaving $318 million in repurchase capacity. The balance sheet remains strong with leverage in the low three-times range following the HG acquisition financing. Management expects its just-in-time organic strategy and accretive acquisition to drive high-single-digit EBITDA growth in upcoming quarters.