Antero Midstream Q3 EBITDA Rises 3% as Gathering Volumes Grow

Antero Midstream Corporation (NYSE: AM) reported higher third-quarter 2026 adjusted EBITDA as gathering volumes rose sharply and processing and fractionation capacity remained fully utilized. Management expects high-single-digit adjusted EBITDA growth in the fourth quarter and double-digit growth in 2027, supported by Antero Resources’ development activity and additional infrastructure opportunities.

For the three months ended September 30, adjusted EBITDA increased 3% year over year to $290.8 million from $281.2 million. The non-GAAP measure excludes several items affecting net income, including a $377.0 million litigation gain recorded during the quarter.

GAAP net income rose to $392.7 million from $116.0 million a year earlier, primarily reflecting the litigation gain. Adjusted free cash flow before dividends reached $555.0 million, compared with $185.0 million in the prior-year quarter, while adjusted free cash flow after dividends increased to $448.7 million from $77.8 million. Antero Midstream declared $106.3 million of dividends for the quarter.

Higher gathering volumes support operations

Gathering volumes increased 19% from a year earlier, while utilization of the company’s processing and fractionation capacity reached 100%. Antero Midstream also reported 100% uptime across its legacy and HG water systems.

The company said integration of its water system remains on schedule. Antero Resources is expected to complete drilled-but-uncompleted growth pads in the fourth quarter, supporting a balanced development program of three drilling rigs and two completion crews.

Construction of the East Side Express project is continuing. Management said demand-pull interest supports the strategy behind Antero Midstream’s regional pipeline business unit, while the company’s scale, balance sheet and operating expertise position it to pursue further infrastructure opportunities.

Leverage remains below target

Antero Midstream reduced debt by more than $400 million from the previous quarter. Its leverage ratio, defined as net debt divided by last-12-month adjusted EBITDA, was 2.8 times at September 30, below the company’s 3.0-times target and approximately unchanged from a year earlier.

Consolidated net debt stood at $3.18 billion, while adjusted EBITDA for the 12 months ended September 30 totaled $1.15 billion. The company maintained leverage below its target after completing more than $2.3 billion of combined organic growth investment and acquisitions since 2022.

Outlook depends on development execution

Management expects high-single-digit adjusted EBITDA growth in the fourth quarter of 2026 and double-digit adjusted EBITDA growth in 2027. Those expectations depend in part on Antero Resources’ production and development plans, including its drilling schedule and the participation of its drilling partner.

Antero Midstream cautioned that construction schedules, project costs, asset performance, commodity-price volatility, inflation, supply-chain disruptions and regulatory changes could affect future results. Its ability to pay future dividends also depends substantially on Antero Resources’ annual capital budget and development plan, as well as Antero Midstream’s own liquidity and capital resources.