Energy Prospectus

In the last 3 months, 7 ranked analysts set 12-month price targets for AM that range from $8.00 to $13.00. The average price target among the analysts is $10.60.

On 10/16/19, AM announced a regular quarterly cash dividend of $0.3075 per share, payable on 11/13/19 to shareholders, with an ex-dividend date of 10/31/19.

Q3 earnings are expected to be announced after market hours on 10/29/19
Estimates: 0.290 | 0.211 | 0.160 (High | Mean | Low) < My valuation of $12.70/unit is based on the $0.16 EPS estimate

My updated forecast/valuation model for AM has been posted to the EPG website.

Major shareholder dumps a bunch of AM.
Any thoughts?

This sale has no impact on my forecast or my valuation.

DENVER, Nov. 6, 2019 /PRNewswire/ -- Antero Midstream Corporation (AM) ("Antero Midstream" or the "Company") announced today the pricing of an underwritten public offering of an aggregate of 25,965,437 shares of common stock by certain affiliates of Warburg Pincus and certain investment funds managed by Yorktown Partners LLC. The underwriter intends to offer the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. The gross proceeds from the sale of the shares by the selling stockholders are expected to be approximately $171 million. Antero Midstream is not selling any shares of common stock in the offering and will not receive any proceeds therefrom.

Do you have any insight as to the reasoning here?
The market is saying that something is not sustainable. At the current price, I think yield is over 20%- assuming they will keep the dividend.
Something does not make sense.

Private equity firms sell investments from time-to-time. I have no idea why they decided to sell their stake in AM.

AM's future is tied directly to AR's drilling program, but it is a stand alone public company. See my updated forecast model for AR under the Sweet 16 tab. AR booked a big impairment charge in Q3, but cash flow from operations were not impacted.