Antero Midstream (AM) Update - Nov 10

Antero Midstream (AM) Update - Nov 10

Postby dan_s » Wed Nov 10, 2021 9:39 am

I just reviewed the AM forecast/valuation model and posted it to the EPG website. You can view it directly from the EPG home page.

AM was formed by Antero Resources (AR), which still holds controlling interest in the midstream company. 99% of AM's revenues come from services that it provided to AR, so we covered it in the AR profile that went to all members this morning.

AM is a C-Corp in our High Yield Income Portfolio. C-Corps are better suited for ownership in an IRA account than MLPs are.
AM closed on November 9 at $10.82. My current valuation is $12.00.
Operating cash flow:
2019A: $595.9 million / $1.23 per share
2020A: $753.0 million / $1.58 per share
2021E: $712.0 million / $1.49 per share
2022E: $720.7 million / $1.51 per share

In 2021 its dividends have been $0.225 for annual yield of $0.90, which is yield of 8.3%
Based on my forecast model they should be able to increase dividends in 2022 to $0.25/Qtr.

Read the AR profile and you will see that AM's future is bright.
Dan Steffens
Energy Prospectus Group
Posts: 27277
Joined: Fri Apr 23, 2010 8:22 am

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