Antero Midstream Corp (NYSE: AM)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001623925
Market Cap 9.31 Bn
P/B 4.38
P/E 23.98
P/S 8.68
ROIC (Qtr) 10.17
Div Yield % 5.97
Rev 1y % (Qtr) 9.25
Total Debt (Qtr) 3.01 Bn
Debt/Equity (Qtr) 1.46

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 909.65M provides strong 19.65x coverage of stock compensation 46.30M, indicating sustainable incentive practices.
  • Robust free cash flow of 757.88M exceeds capital expenditure of 151.78M by 4.99x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 909.65M provides 10.43x coverage of SG&A expenses 87.24M, showing efficient operational cost management.
  • Operating cash flow of 909.65M provides solid 10.10x coverage of current liabilities 90.02M, showing strong operational health.
  • Operating cash flow of 909.65M fully covers other non-current liabilities 553.12M by 1.64x, showing strong long-term stability.

Bear case

  • Operating cash flow of 909.65M barely covers its investment activities of (158.90M), with a coverage ratio of -5.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 909.65M provides thin coverage of dividend payments of (440.20M) with a -2.07 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 0 provide limited coverage of acquisition spending of (7.97M), which is -0x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 757.88M represents just -4.53x of debt issuance (167.38M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 909.65M is outpaced by equity issuance of (115.36M) (-7.89 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 110.33 Bn 27.13 2.37 75.15 Bn
2 EPD Enterprise Products Partners L.P. 76.10 Bn 12.98 1.39 33.58 Bn
3 KMI Kinder Morgan, Inc. 68.80 Bn 28.77 4.49 32.58 Bn
4 TRP Tc Energy Corp 62.22 Bn 25.32 5.86 44.47 Bn
5 WMB Williams Companies, Inc. 50.26 Bn -71.19 6.88 27.99 Bn
6 TRGP Targa Resources Corp. 36.23 Bn -86.30 4.92 17.43 Bn
7 OKE Oneok Inc /New/ 35.88 Bn 31.48 3.74 33.73 Bn
8 CQP Cheniere Energy Partners, L.P. 30.34 Bn 27.99 4.44 14.76 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.19 3.64
EV to Cash from Ops. EV/CFO 16.91 35.75
EV to Debt EV to Debt 4.16 -70.28
EV to EBIT EV/EBIT -36.17 14.85
EV to EBITDA EV/EBITDA -39.53 22.44
EV to Free Cash Flow [EV/FCF] EV/FCF 28.15 114.09
EV to Market Cap EV to Market Cap 1.33 2.72
EV to Revenue EV/Rev 13.36 7.62
Price to Book Value [P/B] P/B 3.79 20.25
Price to Earnings [P/E] P/E -27.42 54.32
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.07 -3.70
Dividend Payout Ratio % Div Payout % (Qtr) 92.90 71.27
Dividend per Basic Share Div per Share (Qtr) 0.91 1.48
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 57.10 33.30
Interest Coverage Int. cover (Qtr) 4.33 5.27
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 41.10 -7.43
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 16,427.94
Dividend Growth (1y) % Div 1y % (Qtr) -1.63 -0.84
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.55 -1.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.74 -3.58
EBIT Growth (1y) % EBIT 1y % (Qtr) 13.99 -8.36
EBT Growth (1y) % EBT 1y % (Qtr) 22.64 -232.78
EPS Growth (1y) % EPS 1y % (Qtr) 22.50 -43.63
FCF Growth (1y) % FCF 1y % (Qtr) 34.87 -0.90
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.13 -0.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.21 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.41 0.21
Cash Ratio Cash Ratio (Qtr) 0.00 0.80
Current Ratio Curr Ratio (Qtr) 1.26 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 1.46 1.12
Interest Cover Ratio Int Coverage (Qtr) 4.33 5.27
Times Interest Earned Times Interest Earned (Qtr) 4.33 5.27
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 82.20 35.59
EBIT Margin % EBIT Margin % (Qtr) 70.92 27.76
EBT Margin % EBT Margin % (Qtr) 54.53 17.49
Gross Margin % Gross Margin % (Qtr) 80.20 48.68
Net Profit Margin % Net Margin % (Qtr) 40.10 15.46