Antero Midstream (AM) Update - Nov 1

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Antero Midstream (AM) Update - Nov 1

Post by dan_s »

AM is in our High Yield Income Portfolio. At the time of this post it was trading at $10.88. Annualized dividends are $0.90 for yield of ~8.3%.

I have updated my forecast/valuation model for AM and posted it to the EPG website. You can download it directly from the EPG home page.

My current valuation is $12.00/share.
> I expect AM to be generate enough free cash flow in 2022 to increase their quarterly dividends to $0.25 sometime in 2022.
> This midstream company gets most of its revenues from services provided to Antero Resources (AR), one of the large-cap "gassers" in our Sweet 16.
> AR should ramp up drilling activity and production by ~6% in 2022, generating more revenue for AM.
> See my updated forecast/valuation model for AR that can be found under the Sweet 16 tab on the EPG website.
> AM is a C-Corp, so better suited for an IRA account.
Dan Steffens
Energy Prospectus Group
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