Antero Midstream Corp
For the period ended Sep 30, 2026. Filed Oct 28, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 28, 2026
AM$18.98-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001104659-26-088150
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0001104659-26-119634
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 75 current paragraphs.
42 unchanged; 30 reworded; 1 added; 2 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 33 previous and 34 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Gain on litigation. There was no gain on litigation during the three months ended September 30, 2025. During the three months ended September 30, 2026, we recognized a gain on litigation of $377 million related to the Veolia matter. See Note 16—Contingencies to the unaudited condensed consolidated financial statements for additional information.
Removed paragraphs (2)
Previous report
Equity-based compensation expenses. Equity-based compensation expenses remained consistent at $11 million for the three months ended June 30, 2025 and 2026. See Note 11—Equity-Based Compensation to the unaudited condensed consolidated financial statements for additional information.
Previous report
*Equity-based compensation expenses.*Equity-based compensation expenses remained relatively consistent at $24 million and $21 million for the six months ended June 30, 2025 and 2026, respectively. See Note 11—Equity-Based Compensation to the unaudited condensed consolidated financial statements for additional information.
Reworded paragraphs (30)
Previous wording
On December 5, 2025, we entered into a definitive agreement to acquire 100% of the issued and outstanding equity interests of HG Midstream for cash consideration of $1.1 billion, subject to the terms and conditions thereof. The HG Acquisition included gathering pipelines and integrated water handling assets in the core of the Marcellus Shale in West Virginia. This acquisition closed on the Closing Date. The Company’s condensed consolidated statement of operations for the six months ended June 30, 2026 included results of operations from the assets and operations acquired in the HG Acquisition from the Closing Date through June 30, 2026.
Current wording
On December 5, 2025, we entered into a definitive agreement to acquire 100% of the issued and outstanding equity interests of HG Midstream for cash consideration of $1.1 billion, subject to the terms and conditions thereof. The HG Acquisition included gathering pipelines and integrated water handling assets in the core of the Marcellus Shale in West Virginia. This acquisition closed on the Closing Date. The Company’s unaudited condensed consolidated statement of operations for the nine months ended September 30, 2026 included results of operations from the assets and operations acquired in the HG Acquisition from the Closing Date through September 30, 2026.
Previous wording
The HG Acquisition was funded with net proceeds of the 2034 Notes, borrowing under the Credit Facility and restricted cash. See Note 3—Transactions to our condensed consolidated financial statements for additional information. In light of the nature and location of the assets and operations acquired in the HG Acquisition, we and Antero Resources agreed in principle to certain updates to, and intend to modify, our existing commercial arrangements with Antero Resources to provide for well pad compression with respect to certain wells and to provide certain water services. See Note 6—Revenue to our condensed consolidated financial statements for additional information.
Current wording
The HG Acquisition was funded with net proceeds of the 2034 Notes, borrowing under the Credit Facility and restricted cash. See Note 3—Transactions to our unaudited condensed consolidated financial statements for additional information. In light of the nature and location of the assets and operations acquired in the HG Acquisition, we and Antero Resources agreed in principle to certain updates to, and intend to modify, our existing commercial arrangements with Antero Resources to provide for well pad compression with respect to certain wells and to provide certain water services. See Note 6—Revenue to our unaudited condensed consolidated financial statements for additional information.
Previous wording
On December 5, 2025, we entered into a purchase and sale agreement with the Buyer Parties to sell substantially all of our Utica Shale Property and Equipment in Ohio, for aggregate cash consideration of $400 million, subject to the terms and conditions thereof. The Utica Shale Property and Equipment included 118 miles of gathering pipelines, 0.7 Bcfe/d of compression capacity, 85 miles of water pipelines and 12 water impoundments with storage capacity of approximately 2 million barrels. The Utica Shale Divestiture closed on February 23, 2026. The net proceeds from the Utica Shale Divestiture were used for the repayment of long-term debt. See Note 3—Transactions to our condensed consolidated financial statements for additional information.
Current wording
On December 5, 2025, we entered into a purchase and sale agreement with the Buyer Parties to sell substantially all of our Utica Shale Property and Equipment in Ohio, for aggregate cash consideration of $400 million, subject to the terms and conditions thereof. The Utica Shale Property and Equipment included 118 miles of gathering pipelines, 0.7 Bcfe/d of compression capacity, 85 miles of water pipelines and 12 water impoundments with storage capacity of approximately 2 million barrels. The Utica Shale Divestiture closed on February 23, 2026. The net proceeds from the Utica Shale Divestiture were used for the repayment of long-term debt. See Note 3—Transactions to our unaudited condensed consolidated financial statements for additional information.
Previous wording
Through our share repurchase program, during the three and six months ended June 30, 2026, we repurchased and retired approximately 0.4 million shares of our common stock for a total cost of $8 million and approximately 1 million shares of our common stock for a total cost of $26 million, respectively. As of June 30, 2026, we have approximately $310 million of remaining capacity 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, 2026, we repurchased and retired approximately 1.3 million shares of our common stock for a total cost of $27 million and approximately 2.7 million shares of our common stock for a total cost of $54 million, respectively. As of September 30, 2026, we have approximately $283 million of remaining capacity 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
On July 24, 2026, we called for redemption all $650 million aggregate principal amount of the 2028 Notes on August 8, 2026. The redemption price will be equal to 100% of the principal amount thereof plus accrued and unpaid interest to, but excluding, the Redemption Date, and will be funded by cash on hand and borrowings under our Credit Facility.
Current wording
On August 8, 2026, we redeemed all $650 million aggregate principal amount of the 2028 Notes at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest to, but excluding, the redemption date, which was funded by cash on hand and borrowings under our Credit Facility. See Note 9—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.
Previous wording
Benchmark prices for oil and C3+ NGLs increased significantly, while benchmark prices for natural gas and ethane decreased during the three months ended June 30, 2026 as compared to the same period of 2025. Benchmark prices for oil and natural gas increased, while benchmark prices for C3+ NGLs remained relatively consistent and benchmark prices for ethane decreased during the six months ended June 30, 2026 as compared to the same period of 2025. 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’ increased scale, 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.
Current wording
Benchmark prices for oil, ethane and C3+ NGLs increased, while benchmark prices for natural gas decreased during the three months ended September 30, 2026 as compared to the same period of 2025. Benchmark prices for oil, natural gas and C3+ NGLs increased, while benchmark prices for ethane decreased during the nine months ended September 30, 2026 as compared to the same period of 2025. 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’ increased scale, 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 2026. 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 1.75% in 2024 and 2025. Annual inflation rates have remained generally consistent at approximately 3% since 2023.
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 2026. 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 1.75% in 2024 and 2025. Annual inflation rates have remained generally consistent at approximately 3% over that time. As a result, in September 2026, the Federal Reserve increased the federal funds rate by 0.25% in an effort to reach its stated goal for inflation of 2%.
Previous wording
We have two reportable segments: (i) gathering and processing and (ii) water handling. The gathering and processing segment includes a network of gathering pipelines and centralized compressor stations and well pad compressors that collect and process production from Antero Resources’ wells in the Appalachian Basin, as well as equity in earnings from our investments in the Joint Venture and Stonewall. The Joint Venture and Stonewall provide processing and fractionation services and high-pressure gas gathering services, respectively, in the Appalachian Basin. The water handling segment includes (i) an independent system that delivers water from sources including the Ohio River, local reservoirs and several regional waterways, and (ii) other fluid handling services, which include high rate transfer, wastewater transportation, disposal and blending. See Note 17—Reportable Segments to our unaudited condensed consolidated financial statements for additional information.
Current wording
We have two reportable segments: (i) gathering and processing and (ii) water handling. The gathering and processing segment includes a network of gathering pipelines, centralized compressor stations and well pad compressors that collect and process production from Antero Resources’ wells in the Appalachian Basin, as well as equity in earnings from our investments in the Joint Venture and Stonewall. The Joint Venture and Stonewall provide processing and fractionation services and high-pressure gas gathering services, respectively, in the Appalachian Basin. The water handling segment includes (i) an independent system that delivers water from sources including the Ohio River, local reservoirs and several regional waterways, and (ii) other fluid handling services, which include high rate transfer, wastewater transportation, disposal and blending. See Note 17—Reportable Segments to our unaudited condensed consolidated financial statements for additional information.
Previous wording
*Revenues.*Total revenues increased by 7%, from $305 million for the three months ended June 30, 2025 to $327 million for the three months ended June 30, 2026. Total revenues included amortization of customer relationships of $18 million and $23 million for the three months ended June 30, 2025 and 2026, respectively. Gathering and processing revenues increased by 8%, from $240 million for the three months ended June 30, 2025 to $258 million for the three months ended June 30, 2026. Water handing revenues increased by 6%, from $65 million for the three months ended June 30, 2025 to $69 million for the three months ended June 30, 2026. These fluctuations primarily resulted from the following:
Current wording
*Revenues.*Total revenues increased by 11%, from $295 million for the three months ended September 30, 2025 to $327 million for the three months ended September 30, 2026. Total revenues included amortization of customer relationships of $18 million and $23 million for the three months ended September 30, 2025 and 2026, respectively. Gathering and processing revenues increased by 7%, from $241 million for the three months ended September 30, 2025 to $257 million for the three months ended September 30, 2026. Water handling revenues increased by 30%, from $54 million for the three months ended September 30, 2025 to $70 million for the three months ended September 30, 2026. These increases primarily resulted from the following:
Previous wording
*Direct operating expenses.*Direct operating expenses increased by 34%, from $63 million for the three months ended June 30, 2025 to $85 million for the three months ended June 30, 2026. Gathering and processing direct operating expenses increased by 42% from $26 million for the three months ended June 30, 2025 to $37 million for the three months ended June 30, 2026 primarily due toincreased gathering and well pad compression costs between periods related to assets acquired with the HG Acquisition, partially offset by the Utica Shale Divestiture. Water handling direct operating expenses increased by 28%, from $37 million for the three months ended June 30, 2025 to $48 million for the three months ended June 30, 2026 primarily due to fresh water delivery volumes provided by Antero Resources on acreage acquired from HG Production during the second quarter of 2026, increased wastewater trucking and disposal volumes between periods and increased blending costs between periods.
Current wording
*Direct operating expenses.*Direct operating expenses increased by 44%, from $58 million for the three months ended September 30, 2025 to $83 million for the three months ended September 30, 2026. Gathering and processing direct operating expenses increased by 33% from $29 million for the three months ended September 30, 2025 to $38 million for the three months ended September 30, 2026 primarily due toincreased gathering and well pad compression costs between periods related to assets acquired with the HG Acquisition, partially offset by the Utica Shale Divestiture. Water handling direct operating expenses increased by 55%, from $29 million for the three months ended September 30, 2025 to $45 million for the three months ended September 30, 2026 primarily due to fresh water delivery volumes provided to Antero Resources on acreage acquired from HG Production, increased wastewater trucking and disposal volumes between periods and increased blending volumes and costs 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 $21 million and $23 million for the six months ended June 30, 2025 and 2026, respectively.
Current 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 each of the three months ended September 30, 2025 and 2026.
Previous wording
Depreciation expense. Depreciation expense increased by 12%, from $33 million for the three months ended June 30, 2025 to $37 million for the three months ended June 30, 2026 primarily due toincremental depreciation expense of $4 million related to gathering and water pipelines acquired in the HG Acquisition and $3 million for assets placed in service between periods, partially offset by lower depreciation as a result of the Utica Shale Divestiture of $3 million between periods.
Current wording
Depreciation expense. Depreciation expense increased by 10%, from $34 million for the three months ended September 30, 2025 to $38 million for the three months ended September 30, 2026 primarily due toincremental depreciation expense of $4 million related to gathering and water pipelines acquired in the HG Acquisition and $3 million for assets placed in service between periods, partially offset by lower depreciation as a result of the Utica Shale Divestiture of $3 million between periods.
Previous wording
Interest expense, net. Interest expense, net increased by 16%, from $48 million for the three months ended June 30, 2025 to $56 million for the three months ended June 30, 2026 primarily due to issuance of the 2033 Notes and 2034 Notes during the second half of 2025, partially offset by the redemption of the 2027 Notes and lower average daily Credit Facility borrowings and interest rates between periods. See Note 9—Long-Term Debt to our unaudited condensed consolidated financial statements for additional information.
Current wording
Interest expense, net. Interest expense, net increased by 8%, from $47 million for the three months ended September 30, 2025 to $51 million for the three months ended September 30, 2026 primarily due to issuance of the 2033 Notes and 2034 Notes during the second half of 2025 and higher average daily Credit Facility borrowings between periods, partially offset by the redemption of the 2027 Notes during the three months ended September 30, 2025 and 2028 Notes during the three months ended September 30, 2026 and lower Credit Facility interest rates between periods. See Note 9—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 remained relatively consistent at $30 million and $29 million for the three months ended June 30, 2025 and 2026, respectively.
Current wording
Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates remained relatively consistent at $30 million and $28 million for the three months ended September 30, 2025 and 2026, respectively.
Previous wording
Income tax expense. Income tax expense remained relatively consistent at $44 million and $41 million for the three months ended June 30, 2025 and 2026, which reflects effective tax rates of approximately 26% for each respective period.
Current wording
Income tax expense. Income tax expense increased by 207%, from $46 million for three months ended September 30, 2025 to $140 million for the three months ended September 30, 2026, which reflects effective tax rates of approximately 28% and 26%, respectively. This income tax expense increase was primarily due to higher net income before taxes during the three months ended September 30, 2026 as a result of the gain on litigation of $377 million.
Previous wording
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2026
Current wording
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2026
Previous wording
Revenues. Total revenues increased by 8%, from $597 million for the six months ended June 30, 2025 to $641 million for the six months ended June 30, 2026. Total revenues included amortization of customer relationships of $35 million and $44 million for the six months ended June 30, 2025 and 2026, respectively. Gathering and processing revenues increased by 8%, from $469 million for the six months ended June 30, 2025 to $507 million for the six months ended June 30, 2026. Water handling revenues increased by 4%, from $128 million for the six months ended June 30, 2025 to $134 million for the six months ended June 30, 2026. These fluctuations primarily resulted from the following:
Current wording
Revenues. Total revenues increased by 9%, from $891 million for the nine months ended September 30, 2025 to $968 million for the nine months ended September 30, 2026. Total revenues included amortization of customer relationships of $53 million and $67 million for the nine months ended September 30, 2025 and 2026, respectively. Gathering and processing revenues increased by 8%, from $709 million for the nine months ended September 30, 2025 to $764 million for the nine months ended September 30, 2026. Water handling revenues increased by 12%, from $182 million for the nine months ended September 30, 2025 to $204 million for the nine months ended September 30, 2026. These increases primarily resulted from the following:
Previous wording
Direct operating expenses. Direct operating expenses increased by 29%, from $120 million for the six months ended June 30, 2025 to $155 million for the six months ended June 30, 2026. Gathering and processing direct operating expenses increased by 28% from $52 million for the six months ended June 30, 2025 to $67 million for the six months ended June 30, 2026 primarily due to increased gathering and well pad compression costs between periods related to assets acquired with the HG Acquisition, partially offset by the Utica Shale Divestiture. Water handling direct operating expenses increased by 30%, from $68 million for the six months ended June 30, 2025 to $89 million for the six months ended June 30, 2026 primarily due to fresh water delivery volumes provided by Antero Resources on acreage it acquired from HG Production during the six months ended June 30, 2026, increased wastewater trucking and disposal volumes between periods and increased blending costs between periods.
Current wording
Direct operating expenses. Direct operating expenses increased by 34%, from $178 million for the nine months ended September 30, 2025 to $238 million for the nine months ended September 30, 2026. Gathering and processing direct operating expenses increased by 30% from $81 million for the nine months ended September 30, 2025 to $105 million for the nine months ended September 30, 2026 primarily due to increased gathering and well pad compression costs between periods related to assets acquired with the HG Acquisition, partially offset by the Utica Shale Divestiture. Water handling direct operating expenses increased by 38%, from $97 million for the nine months ended September 30, 2025 to $133 million for the nine months ended September 30, 2026 primarily due to fresh water delivery volumes provided to Antero Resources on acreage it acquired from HG Production during the nine months ended September 30, 2026, increased wastewater trucking and disposal volumes between periods and increased blending volumes and costs 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 $11 million and $12 million for the three months ended June 30, 2025 and 2026, respectively.
Current wording
*General and administrative (excluding equity-based compensation) expenses.*General and administrative expenses (excluding equity-based compensation expense) remained relatively consistent at $32 million and $34 million for the nine months ended September 30, 2025 and 2026, respectively.
Previous wording
Depreciation expense. Depreciation expense increased by 9%, from $66 million for the six months ended June 30, 2025 to $72 million for the six months ended June 30, 2026 primarily due to incremental depreciation expense of $7 million related to gathering and water pipelines acquired in the HG Acquisition and $6 million for assets placed in service between periods, partially offset by lower depreciation as a result of the Utica Shale Divestiture of $7 million between periods.
Current wording
Depreciation expense. Depreciation expense increased by 9%, from $101 million for the nine months ended September 30, 2025 to $110 million for the nine months ended September 30, 2026 primarily due to incremental depreciation expense of $12 million related to gathering and water pipelines acquired in the HG Acquisition and $8 million for assets placed in service between periods, partially offset by lower depreciation as a result of the Utica Shale Divestiture of $11 million between periods.
Previous wording
*Gain on long-lived assets.There were no long-lived asset sales during the six months ended June 30, 2025. *During the six months ended June 30, 2026, we recognized a gain on long-lived assets of $3 million related to the Utica Shale Divestiture. See Note 3—Transactions to our condensed consolidated financial statements for additional information.
Current wording
Gain on litigation. There was no gain on litigation during the nine months ended September 30, 2025. During the nine months ended September 30, 2026, we recognized a gain on litigation of $377 million related to the Veolia matter. See Note 16—Contingencies to our unaudited condensed consolidated financial statements for additional information.
Previous wording
Interest expense, net. Interest expense, net increased by 14%, from $96 million for the six months ended June 30, 2025 to $110 million for the six months ended June 30, 2026 primarily due to issuance of the 2033 Notes and 2034 Notes during the second half of 2025, partially offset by the redemption of the 2027 Notes, lower average daily Credit Facility borrowings and interest rates between periods and higher interest income on cash equivalents and restricted cash between periods. See Note 9—Long-Term Debt to our unaudited condensed consolidated financial statements for additional information.
Current wording
Interest expense, net. Interest expense, net increased by 12%, from $144 million for the nine months ended September 30, 2025 to $160 million for the nine months ended September 30, 2026 primarily due to issuance of the 2033 Notes and 2034 Notes during the second half of 2025, partially offset by the redemption of the 2027 Notes during the nine months ended September 30, 2025 and 2028 Notes during the nine months ended September 30, 2026, lower average daily Credit Facility borrowings and interest rates between periods and higher interest income on cash equivalents and restricted cash between periods. See Note 9—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 remained relatively consistent at $58 million and $59 million for the six months ended June 30, 2025 and 2026, respectively.
Current wording
Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates remained relatively consistent at $88 million and $86 million for the nine months ended September 30, 2025 and 2026, respectively.
Previous wording
*Transaction expense.*During the six months ended June 30, 2026, we incurred $9 million of transaction expense related to the HG Acquisition. There were no transaction expenses during the six months ended June 30, 2025. See Note 3—Transactions to our unaudited condensed consolidated financial statements for additional information.
Current wording
*Transaction expense.*There were no transaction expenses during the nine months ended September 30, 2025. During the nine months ended September 30, 2026, we incurred $9 million of transaction expense related to the HG Acquisition. See Note 3—Transactions to our unaudited condensed consolidated financial statements for additional information.
Previous wording
Income tax expense. Income tax expense remained relatively consistent at $80 million and $79 million for the six months ended June 30, 2025 and 2026, respectively, which reflects an effective tax rate of approximately 25% for each respective period.
Current wording
Income tax expense. Income tax expense increased by 74%, from $126 million for the nine months ended September 30, 2025 to $219 million for the nine months ended September 30, 2026, which reflects an effective tax rate of approximately 26% for each respective period. This income tax expense increase was primarily due to higher net income before taxes during the nine months ended September 30, 2026 as a result of the gain on litigation of $377 million.
Previous wording
The following table summarizes our cash flows for the six months ended June 30, 2025 and 2026:
Current wording
The following table summarizes our cash flows for the nine months ended September 30, 2025 and 2026:
Previous wording
Operating activities. Net cash provided by operating activities was $464 million and $493 million for the six months ended June 30, 2025 and 2026, respectively. This increase in cash flows provided by operating activities between periods was primarily the result of lower cash used for working capital and increased gathering and processing and water handling revenues during the six months ended June 30, 2026 attributable to the HG Acquisition and decreased direct operating expenses for the Utica Shale Divestiture, partially offset by increased gathering and processing and water handling direct operating expenses attributable to the HG Acquisition and lower gathering and processing revenues for the Utica Shale Divestiture between periods.
Current wording
Operating activities. Net cash provided by operating activities was $677 million and $1,093 million for the nine months ended September 30, 2025 and 2026, respectively. This increase in cash flows provided by operating activities between periods was primarily the result of the gain on litigation of $377 million related to the Veolia matter, lower cash used for working capital and increased gathering and processing and water handling revenues during the nine months ended September 30, 2026 attributable to the HG Acquisition and decreased direct operating expenses for the Utica Shale Divestiture, partially offset by increased gathering and processing and water handling direct operating expenses attributable to the HG Acquisition and lower gathering and processing revenues for the Utica Shale Divestiture between periods.
Previous wording
Investing activities. Net cash flows used in investing activities was $72 million and $816 million for the six months ended June 30, 2025 and 2026, respectively. The increase in cash flows used in investing activities between periods was primarily due to cash paid for the HG Acquisition of $1.1 billion during the six months ended June 30, 2026, as well as increased capital spending for gathering systems and facilities of $12 million and water handling systems of $12 million, partially offset by proceeds from the Utica Shale Divestiture of $379 million during the six months ended June 30, 2026.
Current wording
Investing activities. Net cash flows used in investing activities was $119 million and $867 million for the nine months ended September 30, 2025 and 2026, respectively. The increase in cash flows used in investing activities between periods was primarily due to cash paid for the HG Acquisition of $1.1 billion during the nine months ended September 30, 2026, as well as increased capital spending for gathering systems and facilities of $19 million and water handling systems of $3 million, partially offset by proceeds from the Utica Shale Divestiture of $377 million and lower additional investments in unconsolidated affiliates of $6 million during the nine months ended September 30, 2026.
Previous wording
Financing activities. Net cash used in financing activities was $392 million for the six months ended June 30, 2025 and net cash provided by financing activities was $60 million for the six months ended June 30, 2026, respectively. The increase in cash flows provided by financing activities between periods was primarily due to the increase in net borrowings on our Credit Facility of $437 million and lower share repurchases of $19 million between periods, partially offset by higher payments for employee tax withholding for settlement of equity-based compensation awards of $6 million and higher payments of deferred financing costs of $2 million.
Current wording
Financing activities. Net cash used in financing activities was $558 million and $489 million for the nine months ended September 30, 2025 and 2026, respectively. The decrease in cash flows used in financing activities between periods was primarily due to the increase in net borrowings on our Credit Facility of $682 million, lower share repurchases of $33 million
Previous wording
The valuation of the assets acquired and liabilities assumed in a business combination requires significant judgment about future events, economic and functional obsolescence, capacity and useful lives, among others, and such fair value approaches may rely on significant inputs that are not observable in the market. These assumptions affect the fair value of assets acquired and liabilities assumed and, if changed, could have a material effect on the Company’s financial position or results of operations. See Note 3—Transactions and Note 14—Fair Value Measurement to our condensed consolidated financial statements for additional information.
Current wording
The valuation of the assets acquired and liabilities assumed in a business combination requires significant judgment about future events, economic and functional obsolescence, capacity and useful lives, among others, and such fair value approaches may rely on significant inputs that are not observable in the market. These assumptions affect the fair value of
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
between periods and lower payments of deferred financing costs of $5 million, partially offset by the redemption of the 2028 Notes of $650 million and higher payments for employee tax withholding for settlement of equity-based compensation awards of $6 million.
Current report — wording carried from elsewhere
assets acquired and liabilities assumed and, if changed, could have a material effect on the Company’s financial position or results of operations. See Note 3—Transactions and Note 14—Fair Value Measurement to our unaudited condensed consolidated financial statements for additional information.