Antero Midstream Corp

Previous wording

During the three and six months ended June 30, 2025, we repurchased approximately 1 million shares of our common stock for a total cost of $17 million and approximately 3 million shares of our common stock for a total cost of $45 million, respectively, through our share repurchase program. As of June 30, 2025, we have approximately $426 million of capacity remaining under our share repurchase program. The shares may be repurchased from time to time in open market transactions, through privately negotiated transactions or by other means in accordance with federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by us at our discretion and will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and applicable legal requirements. The exact number of shares to be repurchased by us is not guaranteed and the program may be suspended, modified or discontinued at any time without prior notice.

Current wording

Through our share repurchase program, during the three and nine months ended September 30, 2025, we repurchased and retired approximately 2 million and 5 million shares of our common stock, respectively, for a total cost of $41 million and $87 million, respectively. As of September 30, 2025, we have approximately $385 million of capacity remaining under our share repurchase program. The shares may be repurchased from time to time in open market transactions, through privately negotiated transactions or by other means in accordance with federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by us at our discretion and will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and applicable legal requirements. The exact number of shares to be repurchased by us is not guaranteed and the program may be suspended, modified or discontinued at any time without prior notice.

Previous wording

Benchmark prices for natural gas and ethane increased significantly, while benchmark prices for C3+ NGL’s remained relatively consistent and benchmark prices for oil decreased during the three and six months ended June 30, 2025 as compared to the same periods of 2024. While substantially all of our revenues are based on fixed-fee contracts that are not directly impacted by changes in commodity prices, commodity price changes do impact the revenues and cash flows of Antero Resources, and Antero Resources’ drilling and development plan does have a direct impact on our gathering, compression and water handling services, revenues and cash flows. In the current economic environment, we expect that commodity prices for some or all of the commodities produced by Antero Resources could remain volatile. However, due to Antero Resources’ improved liquidity and leverage position as compared to historical levels, we do not expect to experience significant variability in our throughput volumes resulting from volatile commodity prices.

Current wording

Benchmark prices for natural gas and ethane increased significantly, while benchmark prices for C3+ NGL’s and oil decreased during the three and nine months ended September 30, 2025 as compared to the same periods of 2024. While substantially all of our revenues are based on fixed-fee contracts that are not directly impacted by changes in commodity prices, commodity price changes do impact the revenues and cash flows of Antero Resources, and Antero Resources’ drilling and development plan does have a direct impact on our gathering, compression and water handling services, revenues and cash flows. In the current economic environment, we expect that commodity prices for some or all of the commodities produced by Antero Resources could remain volatile. However, due to Antero Resources’ improved liquidity and leverage position as compared to historical levels together with Antero Resources’ increased commodity derivative portfolio, we do not expect to experience significant variability in our throughput volumes resulting from volatile commodity prices.

Previous wording

The economy experienced elevated inflation levels as a result of global supply and demand imbalances, where global demand outpaced supplies beginning in 2021 and continuing through 2024. In order to manage the inflation risk present in the United States’ economy, the Federal Reserve utilized monetary policy in the form of interest rate increases beginning in March 2022 in an effort to bring the inflation rate in line with its stated goal of 2% on a long-term basis. Between March 2022 and July 2023, the Federal Reserve increased the federal funds interest rate by 5.25%. During the second half of 2024, inflation rates began to approach the Federal Reserve’s stated goal of 2%, and the Federal Reserve decreased the federal funds rate by 1.0% between September and December 2024. However, recent tariff activity by the United States government has caused the Federal Reserve to keep the federal funds rate steady in the first half of 2025. While inflationary pressures in the United States’ economy have begun to subside, it is uncertain what impact recent tariff activity by the United States and foreign governments will have on inflation.

Current wording

The economy experienced elevated inflation levels as a result of global supply and demand imbalances, where global demand outpaced supplies beginning in 2021 and continuing through 2024. In order to manage the inflation risk present in the United States’ economy, the Federal Reserve utilized monetary policy in the form of interest rate increases beginning in 2022 in an effort to bring the inflation rate in line with its stated goal of 2% on a long-term basis. Between 2022 and 2023, the Federal Reserve increased the federal funds interest rate by 5.25%. During the second half of 2024, inflation rates began to approach the Federal Reserve’s stated goal of 2%, and the Federal Reserve decreased the federal funds rate by 1.25% in 2024 and 2025. While inflationary pressures in the United States’ economy have begun to subside, it is uncertain what impact recent tariff activity by the United States and foreign governments will have on inflation.

Previous wording

Revenues. Total revenues increased by 13%, from $270 million for the three months ended June 30, 2024 to $305 million for the three months ended June 30, 2025. Total revenues included amortization of customer relationships of $18 million for the three months ended June 30, 2024 and 2025. Gathering and processing revenues increased by 9%, from $220 million for the three months ended June 30, 2024 to $239 million for the three months ended June 30, 2025. Water handling revenues increased by 31%, from $50 million for the three months ended June 30, 2024 to $66 million for the three months ended June 30, 2025. These fluctuations primarily resulted from the following:

Current wording

Revenues. Total revenues increased by 9%, from $270 million for the three months ended September 30, 2024 to $295 million for the three months ended September 30, 2025. Total revenues included amortization of customer relationships of $18 million for the three months ended September 30, 2024 and 2025. Gathering and processing revenues increased by 7%, from $226 million for the three months ended September 30, 2024 to $241 million for the three months ended September 30, 2025. Water handling revenues increased by 23%, from $44 million for the three months ended September 30, 2024 to $54 million for the three months ended September 30, 2025. These fluctuations primarily resulted from the following:

Previous wording

Direct operating expenses. Direct operating expenses increased by 12%, from $56 million for the three months ended June 30, 2024 to $63 million for the three months ended June 30, 2025. Gathering and processing direct operating expenses remained consistent at $26 million for each of the three months ended June 30, 2024 and 2025. Water handling direct operating expenses increased by 24%, from $30 million for the three months ended June 30, 2024 to $37 million for the three months ended June 30, 2025 primarily due to higher wastewater trucking and disposal volumes and costs, as well as increased blending costs between periods.

Current wording

Direct operating expenses. Direct operating expenses increased by 12%, from $52 million for the three months ended September 30, 2024 to $58 million for the three months ended September 30, 2025. Gathering and processing direct operating expenses increased by 19% from $25 million for the three months ended September 30, 2024 to $29 million for the three months ended September 30, 2025 primarily due to increased gathering and compression volumes and increased heavy maintenance expense between periods. Water handling direct operating expenses increased by 6%, from $27 million for the three months ended September 30, 2024 to $29 million for the three months ended September 30, 2025 primarily due to increased fresh water delivery and other fluid handling volumes between periods.

Previous wording

*General and administrative (excluding equity-based compensation) expenses.*General and administrative expenses (excluding equity-based compensation expense) remained relatively consistent at $10 million for the three months ended June 30, 2024 and $11 million for the three months ended June 30, 2025, respectively.

Current wording

*General and administrative (excluding equity-based compensation) expenses.*General and administrative expenses (excluding equity-based compensation expense) remained relatively consistent at $11 million and $10 million for the three months ended September 30, 2024 and 2025, respectively.

Previous wording

*Equity-based compensation expenses.*Equity-based compensation expenses remained relatively consistent at $12 million for the three months ended June 30, 2024 and $11 million for the three months ended June 30, 2025, respectively. See Note 9—Equity-Based Compensation to the unaudited condensed consolidated financial statements for additional information.

Current wording

*Equity-based compensation expenses.*Equity-based compensation expenses remained relatively consistent at $12 million and $11 million for the three months ended September 30, 2024 and 2025, respectively. See Note 9—Equity-Based Compensation to the unaudited condensed consolidated financial statements for additional information.

Previous wording

Interest expense. Interest expense decreased by 8%, from $52 million for the three months ended June 30, 2024 to $48 million for the three months ended June 30, 2025 primarily due to the repurchase and redemption of the remaining $548 million principal amount of the 2026 Notes during the second quarter of 2024, partially offset by higher average daily Credit Facility borrowings in the second quarter of 2025.

Current wording

Interest expense. Interest expense decreased by 9%, from $52 million for the three months ended September 30, 2024 to $47 million for the three months ended September 30, 2025 primarily due to lower average daily Credit Facility borrowings and interest rates between periods.

Previous wording

Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates increased by 9%, from $28 million for the three months ended June 30, 2024 to $30 million for the three months ended June 30, 2025 primarily due to increased processing volumes and higher processing and fractionation fees as a result of annual CPI-based adjustments between periods.

Current wording

Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates increased by 7%, from $28 million for the three months ended September 30, 2024 to $30 million for the three months ended September 30, 2025 primarily due to increased processing volumes and higher processing and fractionation fees as a result of annual CPI-based adjustments between periods.

Previous wording

Income tax expense. Income tax expense increased by 55%, from $28 million for the three months ended June 30, 2024 to $44 million for the three months ended June 30, 2025, which reflects effective tax rates of 24.8% and 26.1%, respectively. This income tax increase was primarily due to higher income before income taxes between periods. The increase in our effective tax rate between periods was primarily due to the effects of equity-based compensation expense. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements for additional information on the effects of the OBBB.

Current wording

Income tax expense. Income tax expense increased by 20%, from $38 million for the three months ended September 30, 2024 to $46 million for the three months ended September 30, 2025, which reflects effective tax rates of 27.7% and 28.3%, respectively. This income tax expense increase was primarily due to higher income before income taxes between periods. The increase in our effective tax rate between periods was primarily due to the effects of equity-based compensation expense. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements for additional information on the effects of the OBBB.

Previous wording

Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2025

Current wording

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2025

Previous wording

Revenues. Total revenues increased by 9%, from $549 million for the six months ended June 30, 2024 to $597 million for the six months ended June 30, 2025. Total revenues included amortization of customer relationships of $35 million for each of the six months ended June 30, 2024 and 2025. Gathering and processing revenues increased by 7%, from $438 million for the six months ended June 30, 2024 to $468 million for the six months ended June 30, 2025. Water handling revenues increased by 16%, from $111 million for the six months ended June 30, 2024 to $128 million for the six months ended June 30, 2025. These fluctuations primarily resulted from the following:

Current wording

Revenues. Total revenues increased by 9%, from $819 million for the nine months ended September 30, 2024 to $891 million for the nine months ended September 30, 2025. Total revenues included amortization of customer relationships of $53 million for each of the nine months ended September 30, 2024 and 2025. Gathering and processing revenues increased by 7%, from $664 million for the nine months ended September 30, 2024 to $709 million for the nine months ended September 30, 2025. Water handling revenues increased by 18%, from $155 million for the nine months ended September 30, 2024 to $182 million for the nine months ended September 30, 2025. These fluctuations primarily resulted from the following:

Previous wording

Direct operating expenses. Direct operating expenses increased by 9%, from $110 million for the six months ended June 30, 2024 to $120 million for the six months ended June 30, 2025. Gathering and processing direct operating expenses remained consistent at $52 million for each of the six months ended June 30, 2024 and 2025. Water handling direct operating expenses increased by 17%, from $58 million for the six months ended June 30, 2024 to $68 million for the six months ended June 30, 2025 primarily due to higher wastewater trucking and disposal volumes and costs, as well as increased blending costs between periods.

Current wording

Direct operating expenses. Direct operating expenses increased by 10%, from $162 million for the nine months ended September 30, 2024 to $178 million for the nine months ended September 30, 2025. Gathering and processing direct operating expenses increased by 5% from $77 million for the nine months ended September 30, 2024 to $81 million for the nine months ended September 30, 2025 primarily due to increased gathering and compression volumes, higher costs for the two compressor stations and 48 miles of high pressure gathering lines acquired during the second quarter of 2024 and increased heavy maintenance expense between periods. Water handling direct operating expenses increased by 14%, from $85 million for the nine months ended September 30, 2024 to $97 million for the nine months ended September 30, 2025 primarily due to higher wastewater trucking and disposal costs, increased blending costs and increased fresh water delivery volumes between periods.

Previous wording

*General and administrative (excluding equity-based compensation) expenses.*General and administrative expenses (excluding equity-based compensation expense) remained relatively consistent at $22 million and $21 million for the six months ended June 30, 2024 and 2025, respectively.

Current wording

*General and administrative (excluding equity-based compensation) expenses.*General and administrative expenses (excluding equity-based compensation expense) remained consistent at $32 million for each of the nine months ended September 30, 2024 and 2025, respectively.

Previous wording

*Equity-based compensation expenses.*Equity-based compensation expenses increased by 14%, from $21 million for the six months ended June 30, 2024 to $24 million for the six months ended June 30, 2025 primarily due to annual equity-based awards granted during the first quarters of 2024 and 2025. Our equity-based awards vest over three or four year service periods. See Note 9—Equity-Based Compensation to the unaudited condensed consolidated financial statements for additional information.

Current wording

*Equity-based compensation expenses.*Equity-based compensation expenses increased by 6%, from $33 million for the nine months ended September 30, 2024 to $35 million for the nine months ended September 30, 2025 primarily due to annual equity-based awards granted during the first quarters of 2024 and 2025. Our equity-based awards vest over three or four year service periods. See Note 9—Equity-Based Compensation to the unaudited condensed consolidated financial statements for additional information.

Previous wording

Depreciation expense. Depreciation expense decreased by 11%, from $75 million for the six months ended June 30, 2024 to $66 million for the six months ended June 30, 2025 primarily due to lower depreciation expense of $11 million related to our program to repurpose underutilized compressor units to expand existing or construct new compressor stations between periods, partially offset by depreciation expense of $1 million related to assets placed in service between periods and higher depreciation expense of $1 million for our assets acquired during the second quarter of 2024.

Current wording

Depreciation expense. Depreciation expense decreased by 6%, from $107 million for the nine months ended September 30, 2024 to $101 million for the nine months ended September 30, 2025 primarily due to lower depreciation expense of $11 million related to our program to repurpose underutilized compressor units to expand existing or construct new compressor stations between periods, partially offset by depreciation expense of $4 million related to assets placed in service between periods and higher depreciation expense of $1 million for our assets acquired during the second quarter of 2024.

Previous wording

Interest expense. Interest expense decreased by 9%, from $105 million for the six months ended June 30, 2024 to $96 million for the six months ended June 30, 2025 primarily due to lower interest expense on our Senior Notes due to the repurchase and redemption of the remaining $550 million principal amount of the 2026 Notes during the six months ended June 30, 2024, partially offset by higher average daily Credit Facility borrowings during the six months ended June 30, 2025. See Note 7—Long-Term Debt to our unaudited condensed consolidated financial statements for additional information.

Current wording

Interest expense. Interest expense decreased by 9%, from $157 million for the nine months ended September 30, 2024 to $144 million for the nine months ended September 30, 2025 primarily due to lower interest expense on our Senior Notes due to the repurchase and redemption of the remaining $550 million principal amount of the 2026 Notes during the nine months ended September 30, 2024, and lower interest rates on our Credit Facility during the nine months ended September 30, 2025, partially offset by higher average daily Credit Facility borrowings between periods. See Note 7—Long-Term Debt to our unaudited condensed consolidated financial statements for additional information.

Previous wording

Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates increased by 5%, from $55 million for the six months ended June 30, 2024 to $58 million for the six months ended June 30, 2025 primarily due to increased processing volumes and higher processing and fractionation fees as a result of annual CPI-based adjustments between periods.

Current wording

Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates increased by 6%, from $83 million for the nine months ended September 30, 2024 to $88 million for the nine months ended September 30, 2025 primarily due to increased processing volumes and higher processing and fractionation fees as a result of annual CPI-based adjustments between periods.

Previous wording

Loss on early extinguishment of debt. During the six months ended June 30, 2024, we repurchased or otherwise fully redeemed the $550 million aggregate principal amount of our 2026 Notes at a weighted average premium of 101.975% of the principal amount thereof, plus accrued and unpaid interest, and recognized a loss on early debt extinguishment of $14 million. There was no loss on early extinguishment of debt for the six months ended June 30, 2025. See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.

Current wording

Loss on early extinguishment of debt. Loss on early extinguishment of debt of $14 million for the nine months ended September 30, 2024 relates to the premium paid to repurchase or otherwise fully redeem all of our 2026 Notes at a weighted average premium of 101.975% of the principal amount thereof, plus accrued and unpaid interest, as well as the write-off of unamortized deferred financing costs. Loss on early extinguishment of debt of $1 million for the nine months ended September 30, 2025 primarily relates to the write-off of unamortized deferred financing costs and unamortized premium attributable to our 2027 Notes that were fully redeemed at par, plus accrued and unpaid interest. See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.

Previous wording

Income tax expense. Income tax expense increased by 23%, from $65 million for the six months ended June 30, 2024 to $80 million for the six months ended June 30, 2025, which reflects effective tax rates of 25.5% and 24.6%, respectively. This income tax increase was primarily due to higher income before income taxes between periods. The decrease in our effective tax rate between periods was primarily due to the effects of equity-based compensation expense. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements for additional information on the effects of the OBBB.

Current wording

Income tax expense. Income tax expense increased by 22%, from $103 million for the nine months ended September 30, 2024 to $126 million for the nine months ended September 30, 2025, which reflects effective tax rates of 26.3% and 25.8%, respectively. This income tax increase was primarily due to higher income before income taxes between periods. The decrease in our effective tax rate between periods was primarily due to the effects of equity-based compensation expense.

Previous wording

Capital resources and liquidity are provided by operating cash flows and available borrowings under our Credit Facility and capital market transactions. See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements. We expect that the combination of these capital resources will be adequate to meet our working capital requirements, capital expenditures program and expected quarterly cash dividends for at least the next 12 months.

Current wording

Capital resources and liquidity are provided by operating cash flows, available borrowings under our Credit Facility and capital market transactions. See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements. We expect that the combination of these capital resources will be adequate to meet our working capital requirements, capital expenditures program and expected quarterly cash dividends for at least the next 12 months.

Previous wording

The following table summarizes our cash flows for the six months ended June 30, 2024 and 2025:

Current wording

The following table summarizes our cash flows for the nine months ended September 30, 2024 and 2025:

Previous wording

Operating activities. Net cash provided by operating activities was $426 million and $464 million for the six months ended June 30, 2024 and 2025, respectively. This increase in cash flows provided by operating activities between periods was primarily due to higher gathering and processing and water handling revenues, partially offset by increased direct operating expenses and changes in working capital.

Current wording

Operating activities. Net cash provided by operating activities was $611 million and $677 million for the nine months ended September 30, 2024 and 2025, respectively. This increase in cash flows provided by operating activities between periods was primarily due to higher gathering and processing and water handling revenues, partially offset by increased direct operating expenses and changes in working capital.

Previous wording

Investing activities. Net cash flows used in investing activities was $148 million and $72 million for the six months ended June 30, 2024 and 2025, respectively. The decrease in cash flows used in investing activities between periods was primarily due to our acquisition of gathering and compression assets during the second quarter of 2024 of $70 million, before closing adjustments, and lower capital spending related to our gathering systems and facilities of $19 million, partially offset by higher capital spending on our water handling systems of $8 million and additional investment in Stonewall of $5 million between periods.

Current wording

Investing activities. Net cash flows used in investing activities was $203 million and $119 million for the nine months ended September 30, 2024 and 2025, respectively. The decrease in cash flows used in investing activities between periods was primarily due to our acquisition of gathering and compression assets during the second quarter of 2024 of $70 million, before closing adjustments, and lower capital spending related to our gathering systems and facilities of $43 million, partially offset by higher capital spending on our water handling systems of $22 million and additional investment in Stonewall of $6 million between periods.

Previous wording

Financing activities. Net cash used in financing activities was $278 million and $392 million for the six months ended June 30, 2024 and 2025, respectively. The increase in cash flows used in financing activities between periods was primarily due to share repurchases of $45 million, higher net repayments on our Credit Facility of $21 million and higher employee tax withholdings for the settlement of equity-based compensation awards of $13 million between periods, as well as lower cash provided by financing activities of $32 million from the refinancing of our 2026 Notes with the 2032 Notes during the six months ended June 30, 2024.

Current wording

Financing activities. Net cash used in financing activities was $408 million and $558 million for the nine months ended September 30, 2024 and 2025, respectively. The increase in cash flows used in financing activities between periods was primarily due to share repurchases of $87 million during the nine months ended September 30, 2025, as well as lower net cash provided by our senior note refinancing of $39 million, higher net repayments on our Credit Facility of $15 million and higher employee tax withholdings for the settlement of equity-based compensation awards of $12 million between periods, partially offset by lower payments of deferred financing costs of $6 million between periods.

Previous wording

On February 12, 2025, we announced a capital budget with a range of $170 million to $200 million. On July 30, 2025, we announced a revised capital budget for 2025 of $170 million to $190 million. This revised capital budget supports Antero Resources’ maintenance capital program for 2025. Our capital budget may be adjusted as business conditions warrant. Additionally, we monitor our existing assets and look for opportunities to reuse or otherwise repurpose assets in an effort to optimize our capital efficiency.

Current wording

On February 12, 2025, we announced a capital budget with a range of $170 million to $200 million. On July 30, 2025, we announced a revised capital budget for 2025 of $170 million to $190 million. This revised capital budget supports Antero Resources’ maintenance capital program for 2025. Our capital budget may be adjusted as business conditions warrant.