Antero Midstream Corp

Previous wording

During the three months ended March 31, 2025, we repurchased approximately 2 million shares of our common stock through our share repurchase program for a total cost of $29 million. As of March 31, 2025, we have approximately $443 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

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.

Previous wording

Benchmark prices for natural gas and NGLs increased, while benchmark prices for oil decreased during the three months ended March 31, 2025 as compared to the same period 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 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.

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

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 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.

Previous wording

The economy also continues to be impacted by global events. These events have often caused global supply chain disruptions with additional pressure due to trade sanctions, tariffs and other global trade restrictions, among others. While neither our nor Antero Resources’ supply chain has experienced any significant interruptions due to such events, there can be no assurance that we will not experience interruptions in the future.

Current wording

The economy also continues to be impacted by global events. These events have often caused global supply chain disruptions with additional pressure due to trade sanctions, tariffs, other global trade restrictions and the outbreak of armed conflict, including in the Middle East and Iran, among others. While neither our nor Antero Resources’ supply chain has experienced any significant interruptions due to such events, there can be no assurance that we will not experience interruptions in the future.

Previous wording

Revenues. Total revenues increased by 4%, from $279 million for the three months ended March 31, 2024 to $291 million for the three months ended March 31, 2025. Total revenues included amortization of customer relationships of $18 million for each of the three months ended March 31, 2024 and 2025. Gathering and processing revenues increased by 5%, from $218 million for the three months ended March 31, 2024 to $229 million for the three months ended March 31, 2025. Water handling revenues increased by 3%, from $61 million for the three months ended March 31, 2024 to $62 million for the three months ended March 31, 2025. These fluctuations primarily resulted from the following:

Current 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:

Previous wording

Direct operating expenses. Direct operating expenses increased by 5%, from $54 million for the three months ended March 31, 2024 to $57 million for the three months ended March 31, 2025. Gathering and processing direct operating expenses remained consistent at $26 million for each of the three months ended March 31, 2024 and 2025. Water handling direct operating expenses increased by 10%, from $28 million for the three months ended March 31, 2024 to $31 million for the three months ended March 31, 2025 primarily due to increased blending volumes and costs and higher wastewater handling costs between periods.

Current 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.

Previous wording

Depreciation expense. Depreciation expense decreased by 12%, from $37 million for the three months ended March 31, 2024 to $33 million for the three months ended March 31, 2025. This decrease was primarily due to lower depreciation expense of $5 million related to our program to repurpose underutilized compressor units to expand existing or construct new compressor stations, partially offset by depreciation expense of $1 million related to assets placed in service between periods.

Current wording

Depreciation expense. Depreciation expense decreased by 11%, from $38 million for the three months ended June 30, 2024 to $33 million for the three months ended June 30, 2025 primarily due to lower depreciation expense of $5 million related to our program to repurpose underutilized compressor units to expand existing or construct new compressor stations between periods.

Previous wording

Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates remained consistent at $28 million for each of the three months ended March 31, 2024 and 2025.

Current 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.

Previous wording

*General and administrative (excluding equity-based compensation) expenses.*General and administrative expenses (excluding equity-based compensation expense) remained relatively consistent at $12 million and $11 million for the three months ended March 31, 2024 and 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 $22 million and $21 million for the six months ended June 30, 2024 and 2025, respectively.

Previous wording

*Equity-based compensation expenses.*Equity-based compensation expenses increased by 33%, from $9 million for the three months ended March 31, 2024 to $12 million for the three months ended March 31, 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 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.

Previous wording

Interest expense. Interest expense decreased by 9%, from $53 million for the three months ended March 31, 2024 to $48 million for the three months ended March 31, 2025 primarily due to lower interest expense for our 2026 Senior Notes that were fully retired during the second quarter of 2024 and lower rates on our Credit Facility borrowings, partially offset by higher Credit Facility borrowings between periods. 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 $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.

Previous wording

The following table summarizes our cash flows for the three months ended March 31, 2024 and 2025:

Current wording

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

Previous wording

Operating activities. Net cash provided by operating activities was $211 million and $199 million for the three months ended March 31, 2024 and 2025, respectively. This decrease between periods was primarily due to higher cash paid for interest due to the timing of the semi-annual payments on our Senior Notes and increased direct operating expenses, partially offset by higher gathering and processing and water handling revenues.

Current 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.

Previous wording

Investing activities. Net cash flows used in investing activities was $37 million and $32 million for the three months ended March 31, 2024 and 2025, respectively. The decrease in cash flows used in investing activities between periods was primarily due to lower capital spending and acquisitions related to our gathering systems and facilities of $8 million, partially offset by additional investment in Stonewall of $2 million and higher capital spending on our water handling systems of $1 million between periods.

Current 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.

Previous wording

Financing activities. Net cash used in financing activities was $147 million and $167 million for the three months ended March 31, 2024 and 2025, respectively. The increase in cash flows used in financing activities between periods was primarily due to higher common stock repurchases of $29 million, payments of employee tax withholdings for the settlement of equity-based compensation awards of $18 million and dividends to common stockholders of $5 million between periods, partially offset by refinancing of our Credit Facility borrowings with the issuance of our 2032 Senior Notes during the first quarter of 2024.

Current 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.

Previous wording

On February 12, 2025, we announced a capital budget with a range of $170 million to $200 million. This 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. Additionally, we monitor our existing assets and look for opportunities to reuse or otherwise repurpose assets in an effort to optimize our capital efficiency.