Antero Midstream (AM) update - Feb 15

dan_s · Post by **dan_s** » Fri Feb 15, 2019 11:31 am

Note from one of the analysts at Stifel this morning. He is an EPG member who sends me a lot of stuff almost every day.

Antero Midstream GP LP (AMGP, $13.54, Buy; Target $16.00) - Protracted Simplification Nearing Close; Maintain Buy - Timothy D. Howard -
Antero Midstream posted 4Q18 results mostly in line with our estimates. The Antero Midstream GP (AMGP) and Antero Midstream Partners LP (AM) simplification vote is scheduled for March 8, 2019 and assuming a favorable outcome, the transaction should close on March 12, 2019. Management previously reset 2019 guidance for the pro forma entity and while capital investment is elevated, we believe capital deployment in out years has more flexibility, depending on the commodity price environment. After a protracted simplification process, we believe closing and reporting a consolidated quarter in 1Q19 could be a catalyst. In addition, we estimate a pro forma yield of 8.3%. At this time, we are maintaining our Buy rating and increasing our target price to $16.00.