Antero Midstream (AM) Valuation Update - May 19

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Antero Midstream (AM) Valuation Update - May 19

Post by dan_s »

AM had a strong Q1 and they have raised their full-year 2023 guidance. Most significant to me, they increased their free cash flow forecast by $35 million to a range of $125 to $155 million after payment of their current dividends of $0.225/quarter.

If all goes well AM should increase dividends next year. Long term outlook for AM is very good because their growth is tied to the drilling program of Antero Resources (AR). AR has a lot of running room in Appalachia (Marcellus & Utica shale plays).

My updated valuation model shows a current valuation for AM of $13.50, which compares to TipRanks' price target of $12.33.

At the time of this post AM was trading at $10.65 with annualized dividend yield of 8.45%.

AM has elected to be taxed as a C-Corp.
Dan Steffens
Energy Prospectus Group
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