Results
4Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter
5Net Income was $114 million, or $0.24 per diluted share, an 8% per share decrease compared to the prior year quarter
Adjusted Net Income was $131 million, or $0.27 per diluted share, a 7% per share decrease compared to the prior year quarter (non-GAAP measure)
Adjusted EBITDA was $289 million, a 2% increase compared to the prior year quarter (non-GAAP measure)
Capital expenditures were $47 million
Adjusted Free Cash Flow after dividends was $80 million (non-GAAP measure)
Corporate events
Commenced construction on the Company’s first intrastate regional pipeline (“East Side Express”)
Received $371 million in damages and interest from Veolia in July and called $650 million of senior notes due 2028 at par
Management commentary
1Michael Kennedy, CEO and President of Antero Midstream said, “During the quarter, Antero Midstream gathered over 4.1 Bcf/d of production, which was a 19% increase year-over-year and a new company record.
6Our water integration projects remain on track, which we expect to drive high-single digit EBITDA growth in 2027.”
Mr. Kennedy further added, “In addition, during the quarter we commenced initial construction of our first intrastate regional pipeline, the “East Side Express”, which will enhance regional connectivity within our operating areas.
This pipeline positions Antero Midstream for future dry gas growth in West Virginia with decades of underlying inventory to capture growing regional demand.
This east-west bi-directional pipeline represents our first regional pipeline and adds significant optionality for future intrastate pipeline projects that provide an integrated midstream solution connecting low-cost supply to demand centers.”
Justin Agnew, CFO of Antero Midstream, said “The second quarter marked our twelfth consecutive quarter of generating Free Cash Flow after dividends, highlighting the consistency of operations over the last three years.
Looking ahead, we expect an increase in volumes across both the gathering and water businesses to drive EBITDA growth in the back half of the year in line with our full year guidance range.”Guidance reaffirmed
2Mr. Agnew further added, “In July, Antero Midstream received approximately $371 million of proceeds from Veolia, which allowed us to reduce absolute debt and be below our 3-times leverage target ahead of expectations.
After calling the $650 million of senior notes due 2028 at par, Antero Midstream has over $600 million of liquidity and no near-term maturities.
This provides us with significant liquidity and balance sheet capacity to pursue additional growth opportunities and further return of capital to shareholders.”
Corporate events
7On June 23, 2026 the Colorado Supreme Court affirmed that Antero Midstream had prevailed on its claims against Veolia relating to the Clearwater Facility.
On July 24, 2026 Antero Midstream received approximately $371 million in damages and interest.
These proceeds and borrowings under the revolving credit facility are being used to call the $650 million of senior unsecured notes due 2028 at par.
Capital return
During the second quarter of 2026, Antero Midstream repurchased 0.4 million shares for approximately $8 million.
Antero Midstream had approximately $310 million of remaining capacity under its share repurchase program as of June 30, 2026.
Management commentary
Strategic and Operating Updates
Corporate events
During the quarter, Antero Midstream began its multiyear investment in the East Side Express, the Company’s first dry gas regional connectivity expansion project.
This project will expand dry gas deliveries to several different long haul and regional pipelines and will enhance optionality to local markets in order to capture growing regional demand around the Company’s area of operations.
Results
Antero Midstream connected 26 wells to its gathering system and serviced 21 wells with its fresh water delivery system during the quarter.
Capital expenditures were $47 million during the second quarter of 2026.
The Company invested $33 million in gathering and compression and $14 million in water infrastructure.
Second Quarter 2026 Financial Results
3Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter.
Fresh water delivery volumes averaged 82 MBbl/d during the quarter, a 16% decrease compared to the second quarter of 2025.
Processing volumes from the processing and fractionation joint venture (the “Joint Venture”) averaged 1.6 Bcf/d and Joint Venture fractionation volumes averaged 40 MBbl/d, both in line with the prior year quarter.
Processing and fractionation capacity were both 100% utilized during the quarter.
For the three months ended June 30, 2026, revenues were $327 million, comprised of $272 million from the Gathering and Processing segment and $79 million from the Water Handling segment, net of $23 million of amortization of customer relationships.
Water Handling revenues include $45 million from other water handling and high rate water transfer services.
Direct operating expenses were $37 million for the Gathering and Processing segment and $48 million for the Water Handling segment for a total of $ 85 million.
Water Handling operating expenses include $40 million from other water handling and high rate water transfer services.
General and administrative expenses excluding equity-based compensation were $12 million during the second quarter of 2026.
Total operating expenses during the second quarter of 2026 included $11 million of equity-based compensation expense and $37 million of depreciation expense.
Net Income was $ 114 million, or $0.24 per diluted share.
Net Income adjusted for amortization of customer relationships, impairment of property and equipment, transaction expense and other, net of tax effects of reconciling items, or Adjusted Net Income, was $131 million.
8Adjusted Net Income was $0.27 per diluted share, a 7% per share decrease compared to the prior year quarter.
The following table reconciles Net Income to Adjusted Net Income (in thousands):
(2)The statutory tax rate for each of the three months ended June 30, 2025 and 2026 was approximately 26%.
Adjusted EBITDA was $ 289 million, a 2% increase compared to the prior year quarter.
Interest expense was $56 million, a 16% increase compared to the prior year quarter driven by financing for the HG Energy acquisition.
Capital expenditures were $47 million during the second quarter of 2026.
Adjusted Free Cash Flow before dividends was $186 million and Adjusted Free Cash Flow after dividends was $80 million.
The following table reconciles Net Income to Adjusted EBITDA and Adjusted Free Cash Flow before and after dividends (in thousands):
The following table reconciles net cash provided by operating activities to Adjusted Free Cash Flow before and after dividends (in thousands):
Capital expenditures (as reported on a cash basis)$40,06452,743
Change in accrued capital costs4,783(6,065)
Capital expenditures (accrual basis)$44,84746,678
Corporate events
This release is not a notice of redemption of the 2028 notes.
The redemption is being made solely pursuant to the Notice of Redemption, dated July 24, 2026, relating to the 2028 notes.
60 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.