Antero Midstream (NYSE: AM): Shows Investment Potential in Natural Gas

By Patricia Miller


In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

UBS covers Antero Midstream (NYSE: AM) with a "Buy" rating and $14 price target. Read on for insights into Antero's financial results, operational highlights, and leveraging growth opportunities.

Antero Midstream Reports Strong Q1 2023 Results, Earns UBS "Buy" Rating

Antero Midstream Corp (NYSE: AM) has piqued the interest of UBS, which has initiated coverage with a "Buy" rating and a price target of $14. 

With a $5bn market cap, Antero Midstream and its parent company Antero Resources ($7bn market cap), stand as one of the most integrated natural gas producers in the U.S., with operations focused on the Appalachian Basin in West Virginia and Ohio.

Antero Midstream recently released its financial and operational results for Q1, 2023. Here are its key highlights year-over-year: 

  • Gathering and compression volumes increased by 8% and 11%, respectively.

  • Net Income was $87 million, or $0.18 per diluted share, showing a 6% per share increase.

  • Adjusted Net Income, a non-GAAP measure, was $100 million, or $0.21 per share, reflecting an 11% per share increase.

  • Adjusted EBITDA, (non-GAAP), was $242 million, indicating a 16% increase.

  • Capital expenditures amounted to $34 million, representing a 64% decrease.

  • Free Cash Flow after dividends was $46 million, a significant improvement from the $38 million deficit in the prior year quarter.

The company has updated its guidance for the full year 2023, increasing Net Income by $15 million, Adjusted EBITDA by $20 million, and Free Cash Flow after dividends by $35 million.

Antero Midstream achieved strong operational performance in the first quarter, driven by record throughput and completion efforts from Antero Resources in the freshwater business. 

The company aims to reduce absolute debt and leverage, further reducing risk in the outlook for Antero Midstream.

Revenues for the quarter amounted to $259 million, with $190 million from the Gathering and Processing segment and $69 million from the Water Handling segment.

UBS analyst Brian Reynolds points to the company's anticipated positive inflection in free cash flow yield as a compelling reason for its Buy rating. This is the first time in Antero Midstream's public company history that such a shift has been expected, potentially bringing about an increased return on capital opportunities as the company aims to hit its leverage target goals in 2024.

It is worth noting that about half of the revenues of Antero Resources, the parent company of Antero Midstream, are related to natural gas liquids, with 40% of these being exported. With export prices in Asia and Europe generally commanding a premium compared to U.S. prices, this sets the stage for potential increased revenues.

Antero Midstream stock comes with an 8.8% dividend yield.

Unlocking European Opportunities

If you are seeking an alternative investment in the energy sector, a small-cap growth prospect may captivate your interest.

MCF Energy is an under-the-radar junior stock endowed with top-tier support. This company is armed with strategic natural gas assets and serious growth projections in Europe’s volatile energy sector.

With European energy supplies severely disrupted due to the war in Ukraine, MCF Energy has spotted a timely opportunity to capitalize. In doing so, MCF has acquired large-scale top-tier Austrian and German prospects with a clear path to market.

The German acquisition has positioned MCF Energy as a major player in natural gas exploration in the region, owning 100% of four licenses for exploration and development projects. This is particularly noteworthy since Germany is Europe's largest gas importer.

Meanwhile, the company is also evaluating other additional frontiers with huge expansion prospects. MCF Energy's modern technology, led by artificial intelligence expert Deborah Sacrey, plays a vital role in unlocking Europe's underexploited resources. Sacrey's extensive experience in oil and gas exploration, with nine discoveries under her belt using multi-attribute neural analysis, keeps the company at the cutting edge. 

If you're in the process of evaluating investment opportunities within the energy sector, then you should carefully consider the potential of MCF Energy. It presents an exceptional opportunity in the European natural gas market, with multiple growth opportunities ahead.


In this article:




This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by MCF Energy Ltd. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of two hundred and sixty thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.


Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.


This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.


Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.

This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.


The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.


This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.


By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.


By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here and acknowledge that you have reviewed the Disclaimer found here If you do not agree to the Terms of Use, please contact to discontinue receiving future communications.


All trademarks used in this communication are the property of their respective trademark holders. Other than, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than

AUTHORS: VALUETHEMARKETS and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of, has been paid for the production of this piece by the company or companies mentioned above.

Sign up for Investing Intel Newsletter