Antero Midstream Corporation Sees Double-Digit EBITDA Growth Ahead as It Expands Integrated Marcellus Shale Footprint
Antero Midstream Corporation has reported a strong third quarter of 2026, with the company expanding its integrated Marcellus Shale footprint to support growing natural gas demand across North America. The expansion includes the integration of the HG acquisition and organic gathering and water growth projects, as well as the establishment of a new regional pipeline business unit.
In his remarks on the company's third quarter investor conference call, Antero Midstream CEO Mike Kennedy highlighted the importance of the company's water business, which achieved 100% uptime in the third quarter. The company is expected to drive high single-digit EBITDA growth in the fourth quarter, combined with modest throughput growth, net of expected curtailments.
Kennedy also noted that the HG water system integration will be completed by year-end and will realize all of the water synergies assumed in the acquisition. The company's legacy and HG water systems are expected to drive double-digit year-over-year EBITDA growth in 2027, as two completion crews operate on acreage dedicated to Antero Midstream, supporting two drilled-but-uncompleted growth pads.
The newly established regional pipeline business unit has seen interest from multiple downstream counterparties seeking access to AR's natural gas through the pipeline. This interest underscores a shift in industry dynamics in Appalachia, with demand pull from LNG facilities, utilities, and growing electrification of America driving opportunities for Antero Midstream.
"Today's opportunities are driven by demand pull from LNG facilities, utilities, and growing electrification of America," Kennedy said. "Unlike the producer push expansions of the past, we now have the scale, balance sheet capacity, and expertise to pursue these opportunities." The company is actively pursuing several billion dollars in potential projects, including its first North South directed regional pipeline, laterals to natural gas demand centers, and integrated power opportunities.
On the operational front, Antero Midstream reported a 19% increase in gathering volumes and a 17% increase in compression volumes during the third quarter. Adjusted EBITDA for the period was $291 million, which represented a three percent year-over-year increase.
The company's balance sheet showed significant improvement, with leverage down to 2.8x as of September 30, below its target and in line with this time last year. The company has integrated five acquisitions totaling $1.4 billion, invested over $1 billion in organic growth capital, increased throughput by over 1 BCF a day, and reduced its share count by over 6 million shares since year-end 2022.
