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Antero Midstream (AM) Announces Q2 Dividend, Updates Buyback

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Antero Midstream Corporation (AM - Free Report) recently announced second-quarter dividend payment. It has also scheduled to release second-quarter earnings on Jul 28, after the market closes.

Returning Capital to Shareholders

The company announced second-quarter cash dividend payment of 22.50 cents per share, in line with the first-quarter level but down 26.8% from the fourth-quarter 2020 figure of 30.75 cents. The annualized dividend amounted to 90 cents per share. Based on the closing price of $10.03 per share on Jul 14, the stock has a dividend yield of 9%.

The dividend is expected to be paid on Aug 11 to Antero Midstream’s shareholders of record as of Jul 28. It is about to make 27 consecutive payments to shareholders since its November 2014 IPO. The reduced dividend payments are aimed at preserving cash. As of Mar 31, Antero Midstream had cash and cash equivalents of only $261,000, reflecting a significant decline from $640,000 in the fourth quarter.

Importantly, the company did not buy back shares during the June quarter. Therefore, at quarter-end, it had around $150 million left under the $300-million share buyback plan.

Second-Quarter Estimates

The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at 19 cents per share, indicating a decline of 13.6% from the year-ago period. It has witnessed no estimate revision in the past 30 days. The consensus mark for second-quarter revenues is $216.5 million, indicating a decline of 1.5% year over year.

The company outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met on another occasion. It delivered a four-quarter average earnings surprise of 3.5%.

Price Performance

Shares of the company have increased 30.3% in the year-to-date period, underperforming the 63.5% rally of the industry it belongs to.

Zacks Investment Research
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Zacks Rank & Stocks to Consider

Antero Midstream currently has a Zacks Rank #4 (Sell). Some better-ranked stocks from the energy space include Murphy Oil Corporation (MUR - Free Report) , Extraction Oil & Gas, Inc. (XOG - Free Report) , and Magellan Midstream Partners, L.P. (MMP - Free Report) , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Murphy Oil’s bottom line for 2021 is expected to surge 131.2% year over year.

Extraction Oil & Gas’ profits for 2021 are expected to jump 450.8% year over year.

Magellan Midstream’s bottom line for 2021 is expected to rise 7.2% year over year.