Up 271% in 3 Years -- Is Antero Midstream Still the Energy Stock to Own?

"Antero Midstream owns and operates an extensive network of gathering pipelines, compression stations, processing plants, and water-handling infrastructure in the Marcellus and Utica shale plays of West Virginia and Ohio. It moves roughly 3 billion cubic feet equivalent per day of natural gas and natural gas liquids for its primary customer, Antero Resources."

"Antero Midstream is tied at the hip to Antero Resources - substantially all of its revenue comes from long-term, fixed-fee contracts with its upstream affiliate. Those contracts are largely take-or-pay, meaning the midstream operator gets paid regardless of commodity price swings. That structure delivers rock-solid revenue visibility and shields the company from the wild price volatility now roiling global markets."

"In December, Antero Midstream announced a transformative $1.1 billion acquisition of Marcellus-focused midstream assets from HG Midstream. The deal closed in early 2026 and was partly funded by selling non-core Utica assets. The result is a sharper focus on the prolific Marcellus basin, higher throughput capacity, and meaningful cost synergies."

Geopolitical tensions in Iran have driven oil prices to $100 per barrel and U.S. gasoline to $3.67 per gallon, with disruptions at the Strait of Hormuz affecting global energy markets. Antero Midstream operates gathering pipelines, compression stations, and processing infrastructure in the Marcellus and Utica shale plays, moving 3 billion cubic feet equivalent daily. The company generates substantially all revenue from long-term, fixed-fee, take-or-pay contracts with Antero Resources, providing revenue stability independent of commodity price fluctuations. In December, Antero Midstream acquired $1.1 billion in Marcellus-focused midstream assets from HG Midstream, completed in early 2026 and partly funded by divesting non-core Utica assets. This acquisition sharpens focus on the Marcellus basin, increases throughput capacity, and generates meaningful cost synergies.

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