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Antero Midstream Corp — 2026 10 28 Antero Midstream Announces Third Quarter 2026 168 (company IR deck)
Antero Midstream Corp (AM) · 0 slides · Filed Oct 28, 2026
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Slide 1 — Antero Midstream Announces Third Quarter 2026 Financial and Operating Results
Antero Midstream Announces Third Quarter 2026 Financial and Operating Results Denver, Colorado, October 28, 2026—Antero Midstream Corporation (NYSE: AM) (“Antero Midstream” or the “Company”) today announced its third quarter 2026 financial and operating results. The relevant consolidated financial statements are included in Antero Midstream’s Quarterly Report on Form 10-Q for the three months ended September 30, 2026. Highlights: • Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter • Net Income was $393 million, or $0.82 per diluted share, a 242% per share increase compared to the prior year quarter • Adjusted Net Income was $134 million, or $0.28 per diluted share, a 4% per share increase compared to the prior year quarter (non-GAAP measure) • Adjusted EBITDA was $291 million, a 3% increase compared to the prior year quarter (non-GAAP measure) • Capital expenditures were $51 million, in line with the prior year quarter • Adjusted Free Cash Flow before dividends was $555 million and Adjusted Free Cash Flow after dividends was $449 million, including a $377 million gain on litigation (non-GAAP measure) • Leverage declined to 2.8x as of September 30, 2026 (non-GAAP measure) Michael Kennedy, CEO and President of Antero Midstream said, “Antero Midstream delivered another quarter of year-over-year throughput and earnings growth with flat capital investments. On the operational front, we are currently servicing two drilled but uncompleted growth pads utilizing our legacy water system and remain on track to complete our HG water system integration efforts by year-end. These growth pads and integration efforts are expected to drive visible EBITDA growth in the fourth quarter of 2026 and 2027.” Justin Agnew, CFO of Antero Midstream, said “We continue to increase our assets while maintaining a strong balance sheet and returning capital to shareholders. This includes reducing absolute debt by over $400 million during the quarter, calling our nearest maturity senior notes, and accelerating share repurchases once our leverage target was achieved. Including the internally financed HG acquisition earlier this year, our leverage is flat and our share count has declined by 4 million shares compared to this time last year.” For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Leverage, and Adjusted Free Cash Flow after dividends please see “Non-GAAP Financial Measures and Definitions.”
Slide 2 — Share Repurchases
Share Repurchases During the third quarter of 2026, Antero Midstream repurchased 1.3 million shares for approximately $27 million. Antero Midstream had approximately $283 million of remaining capacity under its share repurchase program as of September 30, 2026. Strategic and Operating Updates Antero Midstream commenced water operations to support Antero Resources two drilled but uncompleted growth pads that will utilize the fresh water system in the fourth quarter of 2026. These two pads are expected to drive additional throughput growth in 2027. The Company expects to complete its water system integration efforts by year-end that will connect the acquired water system to Antero Midstream’s legacy system with the capability to service Antero’s entire footprint at high deliverability rates. Antero Midstream also expects to place in service 80 MMcf/d of additional compression capacity in the liquids-rich corridor in the fourth quarter of 2026. Lastly, the Company continued initial construction on East Side Express, the Company’s first regional connectivity expansion project. Capital expenditures totaled $51 million during the third quarter of 2026. The Company invested $37 million in gathering and compression and approximately $14 million in water infrastructure. In the third quarter of 2026, Antero Midstream connected 22 wells to its gathering system and serviced 22 wells with its fresh water delivery system. During the quarter there was approximately 10 Bcf of reduced throughput due to curtailments and Antero Midstream expects approximately 15 to 20 Bcf of curtailments in the fourth quarter of 2026. 2026 Guidance Update Antero Midstream is updating its 2026 guidance to reflect receipt of the Clearwater litigation proceeds. Based on the $377 million of litigation proceeds, net of the impact of interest expense and current income tax expense, the Company is increasing 2026 Adjusted Free Cash Flow before and after dividends guidance by $370 million. All other guidance ranges not referenced below remain unchanged. The following is a summary of Antero Midstream’s updated 2026 guidance ($ in millions, except per share amounts): Twelve Months Ended December 31, 2026 Change vs. Prior Guidance Low High (At midpoint) Net Income ......................................................................... $765 $815 $280 Interest Expense ................................................................... 200 220 (10) Current Income Tax Expense .............................................. 10 20 15 Adjusted Free Cash Flow Before Dividends ...................... 1,125 1,185 370 Adjusted Free Cash Flow After Dividends ......................... 700 760 370 Third Quarter 2026 Financial Results Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter. Fresh water delivery volumes averaged 89 MBbl/d during the quarter, a 3% decrease compared to the third quarter of 2025. Processing volumes from the joint venture averaged 1.6 Bcf/d and joint venture fractionation volumes averaged 40 MBbl/d. Processing and fractionation capacity were both 100% utilized during the quarter. For the three months ended September 30, 2026, revenues were $327 million, comprised of $257 million from the Gathering and Processing segment and $70 million from the Water Handling segment, net of $23 million of amortization of customer relationships. Water Handling revenues include $43 million from other water handling and high rate water transfer services. Direct operating expenses were $38 million for the Gathering and Processing segment and $45 million for the Water Handling segment for a total of $83 million. Water Handling operating expenses include $38 million from other water handling and high rate water transfer services. General and administrative expenses excluding equity-based compensation were $10 million during the third quarter of 2026. Total operating expenses during the third quarter of 2026 included $11 million of equity-based compensation expense, $38 million of depreciation expense, $3 million impairment and a $377 million gain on litigation. Net Income was $393 million, or $0.82 per diluted share. Net Income adjusted for amortization of customer relationships, impairment of property and equipment, loss on early extinguishment of debt, loss on long-lived assets, gain on litigation, and transaction expense, net of tax effects of reconciling items, or Adjusted Net Income, was $134 million. Adjusted Net Income was $0.28 per diluted share, a 4% per share increase compared to the prior year quarter.
Slide 3 — The following table reconciles Net Income to Adjusted Net Income (in thousands):
The following table reconciles Net Income to Adjusted Net Income (in thousands): Three Months Ended September 30, 2025 2026 Net Income .............................................................................................................................................. $ 115,984 392,657 Amortization of customer relationships ............................................................................................... 17,668 22,874 Impairment of property and equipment ................................................................................................ 167 2,921 Loss on early extinguishment of debt ................................................................................................... 1,313 1,613 Loss on long-lived assets ...................................................................................................................... — 1,158 Gain on litigation .................................................................................................................................. — (376,963) Transaction expense ............................................................................................................................. — 37 Tax effect of reconciling items(1) .......................................................................................................... (4,946) 90,156 Adjusted Net Income ............................................................................................................................. $ 130,186 134,453 (1) The statutory tax rate for each of the three months ended September 30, 2025, and 2026 was approximately 26%. Adjusted EBITDA was $291 million, a 3% increase compared to the prior year quarter. Interest expense was $51 million, an 8% increase compared to the prior year quarter. Capital expenditures were $51 million during the third quarter of 2026, in line with the prior year quarter. Current income tax expense was $11 million as a result of the $377 million gain on litigation. Adjusted Free Cash Flow before dividends was $555 million and Adjusted Free Cash Flow after dividends was $449 million. The following table reconciles Net Income to Adjusted EBITDA and Adjusted Free Cash Flow before and after dividends (in thousands): Three Months Ended September 30, 2025 2026 Net Income .............................................................................................................................................. $ 115,984 392,657 Interest expense, net ............................................................................................................................... 47,196 50,746 Income tax expense ................................................................................................................................ 45,688 140,125 Depreciation expense ............................................................................................................................. 34,465 37,963 Amortization of customer relationships ................................................................................................. 17,668 22,874 Equity-based compensation ................................................................................................................... 11,026 10,960 Equity in earnings of unconsolidated affiliates ...................................................................................... (29,688) (27,950) Distributions from unconsolidated affiliates .......................................................................................... 37,365 34,655 Impairment of property and equipment .................................................................................................. 167 2,921 Loss on early extinguishment of debt .................................................................................................... 1,313 1,613 Loss on long-lived assets ....................................................................................................................... — 1,158 Gain on litigation ................................................................................................................................... — (376,963) Transaction expense ............................................................................................................................... — 37 Other operating expense, net(1) ............................................................................................................... 49 45 Adjusted EBITDA .................................................................................................................................. $ 281,233 290,841 Interest expense, net ............................................................................................................................... (47,196) (50,746) Capital expenditures (accrual-based) ..................................................................................................... (51,336) (50,790) Current income tax expense ................................................................................................................... 2,290 — (11,250) 376,963 Gain on litigation ................................................................................................................................... Adjusted Free Cash Flow before dividends ......................................................................................... $ 184,991 555,018 Dividends declared (accrual-based) ....................................................................................................... (107,187) (106,267) Adjusted Free Cash Flow after dividends ............................................................................................ $ 77,804 448,751 (1) Other operating expense, net represents accretion of asset retirement obligations.
Slide 4 — The following table reconciles net cash provided by operating activities to Adjusted Free Cash Flow before and after dividends (in
The following table reconciles net cash provided by operating activities to Adjusted Free Cash Flow before and after dividends (in thousands): Three Months Ended September 30, 2025 2026 Net cash provided by operating activities ............................................................................................ $ 212,836 600,298 Amortization of deferred financing costs ............................................................................................... (1,317) (1,392) Settlement of asset retirement obligations ............................................................................................. 59 37 Transaction expense .............................................................................................................................. — 37 Changes in working capital .................................................................................................................... 24,749 6,828 Capital expenditures (accrual-based) ..................................................................................................... (51,336) (50,790) Adjusted Free Cash Flow before dividends ......................................................................................... $ 184,991 555,018 Dividends declared (accrual-based) ....................................................................................................... (107,187) (106,267) Adjusted Free Cash Flow after dividends ............................................................................................ $ 77,804 448,751 Conference Call A conference call is scheduled for Thursday, October 29, 2026, at 10:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow the discussion of the results. To participate in the call, dial in at 877-407- 9126 (U.S.), or +1 201-493-6751 (International) and reference “Antero Midstream.” A telephone replay of the call will be available until Thursday, November 5, 2026, at 10:00 am MT at 877-660-6853 (U.S.) or +1 201-612-7415 (International) using the conference ID: 13758949. To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com. The webcast will be archived for replay until Thursday, November 5, 2026, at 10:00 am MT. Presentation An updated presentation will be posted to the Company's website before the conference call. The presentation can be found at www.anteromidstream.com on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference into this press release. Non-GAAP Financial Measures and Definitions Antero Midstream uses certain non-GAAP financial measures. Antero Midstream defines Adjusted Net Income as Net Income adjusted for certain items. Antero Midstream uses Adjusted Net Income to assess the operating performance of its assets. Antero Midstream defines Adjusted EBITDA as Net Income adjusted for certain items. Antero Midstream uses Adjusted EBITDA to assess: • the financial performance of Antero Midstream’s assets, without regard to financing methods, capital structure or historical cost basis; • its operating performance and return on capital as compared to other publicly traded companies in the midstream energy sector, without regard to financing or capital structure; and • the viability of acquisitions and other capital expenditure projects. Antero Midstream defines Adjusted Free Cash Flow before dividends as Adjusted EBITDA less net interest expense, accrual-based capital expenditures, current income tax expense, and gain on litigation. Capital expenditures include additions to gathering systems and facilities, additions to water handling systems, and investments in unconsolidated affiliates. Capital expenditures exclude acquisitions and Adjusted Free Cash Flow excludes transaction expense related to acquisitions. Adjusted Free Cash Flow after dividends is defined as Adjusted Free Cash Flow before dividends less accrual-based dividends declared for the quarter. Antero Midstream uses Adjusted Free Cash Flow before and after dividends as a performance metric to compare the cash generating performance of Antero Midstream from period to period. Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow before and after dividends are non-GAAP financial measures. The GAAP measure most directly comparable to these measures is Net Income. Such non-GAAP financial measures should not be considered as alternatives to the GAAP measures of Net Income and cash flows provided by (used in) operating activities. The presentations of such measures are not made in accordance with GAAP and have important limitations as analytical tools because they include some, but not all, items that affect Net Income and cash flows provided by (used in) operating activities. You should not consider
Slide 5 — any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP. Antero Midstream’s definitions
any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP. Antero Midstream’s definitions of such measures may not be comparable to similarly titled measures of other companies. The following table reconciles cash paid for capital expenditures and accrued capital expenditures during the period (in thousands): Three Months Ended September 30, 2025 2026 Capital expenditures (as reported on a cash basis) ............................................................................. $ 47,750 44,721 Change in accrued capital costs ............................................................................................................. 3,586 6,069 Capital expenditures (accrual basis) .................................................................................................... $ 51,336 50,790 Antero Midstream defines Net Debt as consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash, cash equivalents and restricted cash. Antero Midstream views Net Debt as an important indicator in evaluating Antero Midstream’s financial leverage. Antero Midstream defines Leverage as Net Debt divided by Adjusted EBITDA for the last twelve months. The GAAP measure most directly comparable to Net Debt is total debt, excluding unamortized debt premiums and debt issuance costs. The following table reconciles consolidated total debt to Net Debt as used in this release (in thousands): September 30, 2025 2026 Bank credit facility ................................................................................................................................. $ 379,600 576,800 5.75% senior notes due 2028 ................................................................................................................. 650,000 — 5.375% senior notes due 2029 ............................................................................................................... 750,000 750,000 6.625% senior notes due 2032 ............................................................................................................... 600,000 600,000 5.75% senior notes due 2033 ................................................................................................................. 650,000 650,000 5.75% senior notes due 2034 ................................................................................................................. — 600,000 Consolidated total debt .......................................................................................................................... 3,029,600 3,176,800 Less: Cash and cash equivalents ............................................................................................................ — — Consolidated net debt ............................................................................................................................ $ 3,029,600 3,176,800 The following table reconciles Net Income to Adjusted EBITDA for the last twelve months ended September 30, 2026 (in thousands): Twelve Months Ended September 30, 2026 Net Income .............................................................................................................................................. $ 676,367 Interest expense, net ............................................................................................................................... 207,291 Income tax expense ................................................................................................................................ 243,994 Depreciation expense ............................................................................................................................. 143,709 Amortization of customer relationships ................................................................................................. 84,554 Impairment of property and equipment .................................................................................................. 3,054 Equity-based compensation ................................................................................................................... 43,490 Equity in earnings of unconsolidated affiliates ...................................................................................... (115,202) Distributions from unconsolidated affiliates .......................................................................................... 140,830 Loss on early extinguishment of debt .................................................................................................... 1,613 Loss on long-lived assets ....................................................................................................................... 85,126 Gain on litigation ................................................................................................................................... (376,963) Transaction expense ............................................................................................................................... 14,194 Other operating income, net (1) ............................................................................................................... 582 Adjusted EBITDA .................................................................................................................................. $ 1,152,639 (1) Other operating expense, net represents accretion of asset retirement obligations, loss on settlement of asset retirement obligations and gain on asset sale.
Slide 6 — regarding Antero Resources’ expected future growth and its ability to meet its drilling and development plan and the participation level of Antero Resources’ drilling
Antero Midstream Corporation is a Delaware corporation that owns, operates and develops midstream gathering, compression, processing and fractionation assets located in the Appalachian Basin, as well as integrated water assets that primarily service Antero Resources Corporation’s (NYSE: AR) (“Antero Resources”) properties. This release includes "forward-looking statements.” Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” “goal,” or “target” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Midstream’s control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Midstream expects, believes or anticipates will or may occur in the future, such as statements regarding our strategy, future operations, financial position, estimated revenues and losses, Antero Resources’ and Antero Midstream’s respective ability to integrate acquired assets and achieve the intended operational, financial and strategic benefits from any such transactions, projected costs, prospects, plans and objectives of management, Antero Midstream’s ability to complete the construction or purchase new gathering and compression, processing, water handling or other assets on schedule, at the budgeted cost or at all, and the ability of such assets to operate as designed or at expected levels, Antero Resources’ expected production and development plan, natural gas, NGLs and oil prices, Antero Midstream’s ability to realize the anticipated benefits of its investments in unconsolidated affiliates, Antero Midstream’s ability to execute its share repurchase and dividend program, Antero Midstream’s ability to execute its business strategy, impacts of geopolitical events, including the conflicts in Ukraine, Venezuela and in the Middle East, and world health events, information regarding long-term financial and operating outlooks for Antero Midstream and Antero Resources, information regarding Antero Resources’ expected future growth and its ability to meet its drilling and development plan and the participation level of Antero Resources’ drilling partner, the impact on demand for Antero Midstream’s services as a result of incremental production by Antero Resources, the impact of recently enacted legislation, and expectations regarding the amount and timing of litigation awards are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. All forward-looking statements speak only as of the date of this release. Although Antero Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Midstream expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements. Antero Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond Antero Midstream’s control. These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruptions, environmental risks, Antero Resources’ drilling and completion and other operating risks, regulatory changes or changes in law, the uncertainty inherent in projecting Antero Resources’ future rates of production, cash flows and access to capital, the timing of development expenditures, impacts of world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading "Risk Factors" in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. For more information, contact Daniel Katzenberg, Vice President – Investor Relations, at (303) 357-7219 or [email protected].
Slide 7 — ANTERO MIDSTREAM CORPORATION
ANTERO MIDSTREAM CORPORATION Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) December 31, September 30, 2025 2026 Assets Current assets: Cash and cash equivalents $ 180,435 — Restricted cash 82,500 — Accounts receivable–Antero Resources 106,771 124,123 Accounts receivable–third party 993 256 Income tax receivable 1,896 — Current assets held for sale 4,600 — Other current assets 2,669 2,615 Total current assets 379,864 126,994 Long-term assets: Property and equipment, net 3,454,572 3,952,989 Investments in unconsolidated affiliates 585,778 567,510 Customer relationships 1,074,087 1,629,379 Operating leases right-of-use assets — 50,520 Assets held for sale 379,036 — Other assets, net 10,779 13,688 Total assets $ 5,884,116 6,341,080 Liabilities and Stockholders' Equity Current liabilities: Accounts payable–Antero Resources $ 5,366 5,504 Accounts payable–third party 10,368 8,868 Accrued liabilities 91,527 109,985 Short-term lease liabilities — 15,151 Current liabilities held for sale 2,297 — Other current liabilities 1,924 10,805 Total current liabilities 111,482 150,313 Long-term liabilities: Long-term debt 3,222,530 3,153,695 Deferred income tax liability, net 562,996 770,475 Long-term lease liabilities — 35,531 Liabilities held for sale 3,021 — Other 12,046 16,210 Total liabilities 3,912,075 4,126,224 Stockholders' equity: Preferred stock, $0.01 par value: 100,000 authorized as of December 31, 2025 and September 30, 2026 Series A non-voting perpetual preferred stock; 12 designated and 10 issued and outstanding as of December 31, 2025 and September 30, 2026 — — Common stock, $0.01 par value; 2,000,000 authorized; 474,060 and 473,417 issued and outstanding as of December 31, 2025 and September 30, 2026, respectively 4,741 4,734 Additional paid-in capital 1,952,524 1,839,765 Retained earnings 14,776 370,357 Total stockholders' equity 1,972,041 2,214,856 Total liabilities and stockholders' equity $ 5,884,116 6,341,080
Slide 8 — ANTERO MIDSTREAM CORPORATION
ANTERO MIDSTREAM CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts) Three Months Ended September 30, 2025 2026 Revenue: Gathering and compression–Antero Resources $ 249,827 270,542 Water handling–Antero Resources 62,129 79,330 Water handling–third party 533 24 Amortization of customer relationships (17,668) (22,874) Total revenue 294,821 327,022 Operating expenses: Direct operating 57,886 83,249 General and administrative (including $11,026 and $10,960 of equity-based compensation in 2025 and 2026, respectively) 21,316 21,124 Facility idling 445 297 Depreciation 34,465 37,963 Impairment of property and equipment 167 2,921 Loss on long-lived assets — 1,158 Gain on litigation — (376,963) Other operating expense, net 49 45 Total operating expenses 114,328 (230,206) Operating income 180,493 557,228 Other income (expense): Interest expense, net (47,196) (50,746) Equity in earnings of unconsolidated affiliates 29,688 27,950 Loss on early extinguishment of debt (1,313) (1,613) Transaction expense — (37) Total other expense (18,821) (24,446) Income before income taxes 161,672 532,782 Income tax expense (45,688) (140,125) Net income and comprehensive income $ 115,984 392,657 Net income per common share–basic $ 0.24 0.83 Net income per common share–diluted $ 0.24 0.82 Weighted average common shares outstanding: Basic 478,020 474,315 Diluted 481,814 477,087
Slide 9 — ANTERO MIDSTREAM CORPORATION
ANTERO MIDSTREAM CORPORATION Selected Operating Data (Unaudited) Amount of Three Months Ended September 30, Increase Percentage 2025 2026 or Decrease Change Operating Data: Gathering (MMcf) 315,719 374,207 58,488 19 % Compression (MMcf) 314,729 367,246 52,517 17 % Centralized compression (MMcf) 314,729 294,382 (20,347) (6)% Well pad compression (MMcf) — 72,864 72,864 100 % High pressure gathering (MMcf) 291,637 268,316 (23,321) (8)% Fresh water delivery (MBbl) (1) 8,472 8,204 (268) (3)% Other water handling (MBbl) (2) 4,966 11,320 6,354 128 % Wells serviced by fresh water delivery (1) 17 16 (1) (6)% Gathering (MMcf/d) 3,432 4,067 635 19 % Compression (MMcf/d) 3,421 3,992 571 17 % Centralized compression (MMcf/d) 3,421 3,200 (221) (6)% Well pad compression (MMcf/d) — 792 792 100 % High pressure gathering (MMcf/d) 3,170 2,916 (254) (8)% Fresh water delivery (MBbl/d) (1) 92 89 (3) (3)% Other water handling (MBbl/d) (2) 54 123 69 128 % Average Realized Fees (3): Gathering ($/Mcf) $ 0.36 0.37 0.01 3 % Centralized compression ($/Mcf) $ 0.22 0.22 — * High pressure gathering ($/Mcf) $ 0.23 0.23 — * Fresh water delivery ($/Bbl) (1) $ 4.37 4.43 0.06 1 % Joint Venture Operating Data: Processing (MMcf) 157,696 147,850 (9,846) (6)% Fractionation (MBbl) 3,680 3,680 — * Processing (MMcf/d) 1,714 1,607 (107) (6)% Fractionation (MBbl/d) 40 40 — * *Not meaningful or applicable. (1) Fresh water delivery includes fresh water charged at a fixed fee under our water services agreement with Antero Resources. (2) Other water handling includes fresh water charged at cost plus 3% for services provided to Antero Resources on its acreage acquired from HG Production and our other fluid handling services charged at cost plus 3% or cost of service. (3) The average realized fees for the three months ended September 30, 2026, include annual CPI-based adjustments of approximately 1.5%.
Slide 10 — ANTERO MIDSTREAM CORPORATION
ANTERO MIDSTREAM CORPORATION Condensed Consolidated Results of Segment Operations (Unaudited) (In thousands) Three Months Ended September 30, 2026 Gathering and Water Consolidated (in thousands) Processing Handling Unallocated (1) Total Revenues: Revenue–Antero Resources $ 270,542 79,330 — 349,872 Revenue–third-party — 24 — 24 Amortization of customer relationships (13,846) (9,028) — (22,874) Total revenues 256,696 70,326 — 327,022 Operating expenses: Direct operating 38,553 44,696 — 83,249 General and administrative (excluding equity-based compensation) 6,975 2,210 979 10,164 Equity-based compensation 8,256 2,334 370 10,960 Facility idling — 297 — 297 Depreciation 18,993 18,970 — 37,963 Impairment of property and equipment 2,115 806 — 2,921 Loss on long-lived assets 1,118 40 — 1,158 Gain on litigation — (376,963) — (376,963) Other operating expense, net — 45 — 45 Total operating expenses 76,010 (307,565) 1,349 (230,206) Operating income 180,686 377,891 (1,349) 557,228 Other income (expense): Interest expense, net — — (50,746) (50,746) Equity in earnings of unconsolidated affiliates 27,950 — — 27,950 Loss on early extinguishment of debt — — (1,613) (1,613) Transaction expense — — (37) (37) Total other income (expense) 27,950 — (52,396) (24,446) Income before income taxes 208,636 377,891 (53,745) 532,782 Income tax expense — — (140,125) (140,125) Net income and comprehensive income $ 208,636 377,891 (193,870) 392,657 (1) Corporate expenses that are not directly attributable to either the gathering and processing or water handling segments.
Slide 11 — ANTERO MIDSTREAM CORPORATION
ANTERO MIDSTREAM CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Nine Months Ended September 30, 2025 2026 Cash flows provided by (used in) operating activities: Net income $ 361,234 624,438 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 100,577 109,976 Impairment of property and equipment 984 3,054 Deferred income tax expense 124,471 207,480 Equity-based compensation 34,835 32,367 Equity in earnings of unconsolidated affiliates (87,724) (86,487) Distributions from unconsolidated affiliates 106,095 105,655 Amortization of customer relationships 53,004 66,886 Amortization of deferred financing costs 3,938 4,443 Settlement of asset retirement obligations (317) (111) Loss on early extinguishment of debt 1,313 1,613 Gain on long-lived assets — (1,500) Other operating activities 143 533 Changes in assets and liabilities: Accounts receivable–Antero Resources 6,619 3,330 Accounts receivable–third party 373 1,083 Income tax receivable (1,896) 1,896 Other current assets (360) 110 Accounts payable–Antero Resources (1) 250 Accounts payable–third party 1,081 (592) Income taxes payable 594 9,354 Accrued liabilities (28,002) 9,393 Net cash provided by operating activities 676,961 1,093,171 Cash flows provided by (used in) investing activities: Additions to gathering systems, facilities and other (67,960) (86,692) Additions to water handling systems (45,477) (48,678) Additional investments in unconsolidated affiliate (6,653) (900) Acquisition of HG Midstream — (1,103,032) Proceeds from asset sales 6 377,433 Other investing activities 844 (4,792) Net cash used in investing activities (119,240) (866,661) Cash flows provided by (used in) financing activities: Dividends to common stockholders (331,820) (327,547) Dividends to preferred stockholders (413) (413) Repurchases of common stock (86,669) (53,552) Issuance and borrowings of long-term debt 2,039,500 2,410,000 Repayments of long-term debt (2,144,200) (2,483,200) Payments of deferred financing costs (7,030) (1,784) Employee tax withholding for settlement of equity-based compensation awards (27,089) (32,590) Payments on capital lease obligations — (359) Net cash used in financing activities (557,721) (489,445) Net decrease in cash, cash equivalents and restricted cash — (262,935) Cash, cash equivalents and restricted cash, beginning of period — 262,935 Cash, cash equivalents and restricted cash, end of period $ — — Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 160,951 158,847 Income taxes paid during the period 2,600 — Increase in accrued capital expenditures and accounts payable for property and equipment 13,381 3,150 Right-of-use assets obtained in exchange for new operating lease obligations 351 59,055