AMHIGH SIGNALOPERATIONAL10-K

Antero Midstream completed the HG Energy acquisition and divested Utica Shale assets while experiencing a substantial decline in net income despite improved operating cash flow.

The company executed a significant portfolio transformation by acquiring HG Energy II Midstream Holdings while simultaneously divesting its Ohio Utica Shale midstream operations, indicating a strategic pivot in asset composition. The addition of new risk language around potential acquisition integration challenges and asset impairment concerns suggests management recognizes elevated execution risks from this restructuring.

Comparing 2026-02-11 vs 2025-02-12View on EDGAR →
FINANCIAL ANALYSIS

AM's financial profile reflects mixed operational performance with operating cash flow growing modestly to $932.5M while net income declined substantially from $9.7M to $2.3M. Capital expenditures decreased meaningfully from $267.4M to $157.9M, suggesting either reduced growth investment or completion of major projects. The combination of lower earnings despite improved cash generation points to potential one-time impacts or accounting effects related to the portfolio restructuring activities.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-76.1%
$9.7M→$2.3M

Net income declined 76.1% — review whether driven by operations, interest costs, or non-recurring items.

Capital Expenditure
Cash Flow
-40.9%
$267.4M→$157.9M

Capex reduced 40.9% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Accounts Receivable
Balance Sheet
-23%
$747K→$575K

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Liabilities
Balance Sheet
+10.8%
$100.6M→$111.5M

Current liabilities rose 10.8% — increased short-term obligations, watch current ratio.

Operating Cash Flow
Cash Flow
+10.5%
$844.0M→$932.5M

Operating cash flow grew 10.5% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-02-11
PRIOR — 2025-02-12
ADDED
Our acquisition of 100% of the issued and outstanding equity interests of HG Energy II Midstream Holdings, LLC, a Delaware limited liability company, from HG Energy II LLC, a Delaware limited liability company.
Our divestiture of substantially all of our Utica Shale midstream assets located in Ohio.
We caution investors that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond our control.
Sustainability matters and conservation measures may adversely impact our business.
An impairment of our assets, including property and equipment and/or intangible assets, could reduce our earnings.
Acquisitions and Divestitures We may not achieve the intended benefits of the HG Acquisition, and the HG Acquisition may disrupt our existing plans or operations.
We may not complete the Utica Shale Divestiture within the anticipated timeframe or at all.
Unless expressly stated otherwise, the operating and financial information presented in this Annual Report on Form 10-K does not give effect to the HG Acquisition or the Utica Shale Divestiture.
We intend to leverage our management team s significant industry expertise and experience developing natural gas resource plays to continue building out our premier midstream system.
Fixed Fee Business with Long-Term Contracts We provide gathering, compression, processing, fractionation and integrated water services to Antero Resources under long-term, fixed-fee and cost of service fee contracts with certain minimum volume commitments, limiting our direct exposure to commodity price risk.
REMOVED
The senior secured revolving credit facility pursuant to the Third Amended and Restated Credit Agreement, dated as of July 30, 2024 NGLs.
ESG matters and conservation measures may adversely impact our business.
Acquisitions and Takeovers We may be unable to make attractive acquisitions or successfully integrate acquired businesses, and any inability to do so may disrupt our business and hinder our ability to grow.
Certain of our stockholders have investments in our affiliates that may conflict with the interests of other stockholders.
Business Strategy and Competitive Strengths Scalable Business Model We believe that our strategically located assets and our relationship with Antero Resources have allowed us to become a leading midstream energy company serving the Appalachian Basin.
Our significant investment in West Virginia and Ohio infrastructure makes us well positioned to deliver returns on capital and grow the business in a capital efficient manner.
Additionally, we own a 50% equity interest in the Joint Venture to develop processing and fractionation assets in Appalachia and a 15% equity interest in the Stonewall gas gathering system.
These investments provide us with greater exposure to the midstream value chain.
We believe this just-in-time capital budgeting approach is unique to Antero Midstream and allows us to generate sustainable free cash flow.
Fixed Fee Business with Long-Term Customer Contracts We provide gathering, compression, processing, fractionation and integrated water services, including fresh water delivery services and other fluid handling services, to Antero Resources under long-term, fixed-fee and cost of service fee contracts, limiting our direct exposure to commodity price risk.
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