Antero Midstream (AM) Valuation Update - Aug 6

[dan_s]

At the time of this post AM was trading at $14.00.

AM is a midstream company in our High Yield Income Portfolio.

I have updated my forecast/valuation model for AM and I have posted it to the EPG website.

My valuation stays at $14.75/share.
> AM's growth is tied directly to Antero Resources (AR) growth.
> AR has increased their production guidance, but they will keep just two operated drilling rigs running until natural gas prices increase.
> AM closed a bolt-on acquisition in May that should be accretive to free cash flow in Q3.
> AM has a solid balance sheet with no near-term debt issues.
> AM generates more than enough free cash flow to keep their dividend at $0.225/quarter, so dividend yield is ~6.425%