It has been about a month since the last earnings report for Antero Midstream Corporation (AM Quick QuoteAM - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Antero Midstream due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

AM Q2 Earnings Miss on Higher Costs, Revenues Beat Estimates

Antero Midstreamreported second-quarter 2026 earnings of 24 cents per share, which missed the Zacks Consensus Estimate of 27 cents by 11.1%. The bottom line declined 7.7% from 26 cents in the year-ago quarter.

Revenues of $327.24 million beat the consensus mark of $322.31 million by 1.5%. The top line increased 7.1% from $305.47 million a year ago.

Higher gathering and compression volumes supported the top line, while elevated operating and interest expenses weighed on earnings. Processing and fractionation capacity remained fully utilized.

AM's Gathering Revenues Benefit From Higher Throughput

Gathering and compression revenues from Antero Resources rose to $271.51 million from $248.90 million a year ago. The reported figure was above our estimate of $260 million. The increase reflected stronger system activity and a 3% rise in the average realized gathering fee to 37 cents per Mcf. Average daily gathering volumes increased 19% to 4,124 million cubic feet per day (MMcf/d) from the year-ago level of 3,460 MMcf/d, setting a company record. This exceeded our estimate of 3,587 MMcf/d. The high-pressure gathering volumes declined 7% to 2,986 MMcf/d.

Compression volumes rose 17% to 4,036 MMcf/d compared with 3,447 MMcf/d a year ago, aided by 747 MMcf/d of well pad compression. The figure was above our estimate of 3,578 MMcf/d. Centralized compression volumes fell 5% to 3,289 MMcf/d.

Antero Midstream's Water Mix Shifts Further

Water handling revenues from Antero Resources increased to $78.54 million from $73.77 million in the prior-year quarter. The reported figure was above our estimate of $75.5 million. The segment benefited from a sharp increase in other water handling activity, which includes cost-plus services.

Other water handling volumes surged 131% to 136 thousand barrels per day (MBbl/d). Fresh water delivery volumes declined 16% to 82 MBbl/d. The average realized fresh water delivery fee increased 2% to $4.44 per barrel from the year-ago figure of $4.37 per barrel, reflecting annual CPI-based adjustments.

AM's Operating Costs Pressure Quarterly Profit

Total operating expenses rose to $145.34 million from $119.03 million a year ago. Direct operating expenses increased to $84.53 million from $63.11 million, with water handling accounting for $47.99 million and gathering and processing contributing $36.53 million.

Operating income decreased to $181.91 million from $186.44 million. Net interest expense increased 16% to $55.68 million, driven by financing for the HG Energy acquisition. Equity in earnings of unconsolidated affiliates declined to $28.53 million from $30.02 million.

Antero Midstream Generates Solid Free Cash Flow

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 2% year over year to $288.78 million. Adjusted free cash flow before dividends was $186.43 million, while adjusted free cash flow after dividends totaled $79.63 million.

Capital expenditures were $46.68 million on an accrual basis. The company invested $33 million in gathering and compression and $14 million in water infrastructure.

AM Strengthens Balance Sheet Through Debt Reduction

As of June 30, 2026, total debt was $3.59 billion, including $341.90 million outstanding under the bank credit facility. The company had no cash, cash equivalents or restricted cash at quarter-end.

In July, Antero Midstream received about $371 million in damages and interest from Veolia. The proceeds, together with revolver borrowings, are being used to redeem $650 million of senior notes due 2028 at par. Management expects leverage to fall below its 3.0-times target, while liquidity remains above $600 million with no near-term maturities.

Antero Midstream Advances Capital Return Strategy

Antero Midstream repurchased 400,000 shares for about $8 million and has roughly $310 million remaining under its buyback authorization.

AM Advances Pipeline Growth & Integration

During the quarter, AM began construction on East Side Express, its first intrastate regional pipeline. The bi-directional project is designed to improve dry gas connectivity to long-haul and regional pipelines and support future demand growth in West Virginia.

Management said water integration projects remain on track and that it expects higher gathering and water volumes to drive second-half EBITDA growth within the full-year guidance range. The company connected 26 wells to its gathering system and serviced 21 wells with fresh water delivery.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Antero Midstream has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Antero Midstream has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.