Antero Midstream Partners LP owns, operates, and develops midstream energy assets which collect natural gas, and oil and condensate from wells in the Marcellus Shale in West Virginia and the Utica Shale in Ohio. The company was founded in 2013 and is based in Denver, Colorado.
AM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Antero Midstream Corp. To summarize, we found that Antero Midstream Corp ranked in the 97th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. As for the metrics that stood out in our discounted cash flow analysis of Antero Midstream Corp, consider:
Its compound free cash flow growth rate, as measured over the past 3.27 years, is 2.03% -- higher than 95.63% of stocks in our DCF forecasting set.
Antero Midstream Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.74. This coverage rate is greater than that of only 11.15% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Antero Midstream Corp experienced a tax rate of about 23% over the past twelve months; relative to its sector (Energy), this tax rate is higher than 86.45% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AM, try USAC, SOI, SNMP, CRCQQ, and PTEN.
Moody's Investors Service ("Moody's") upgraded Antero Midstream Partners LP's (Antero Midstream or AM) senior unsecured notes to B3 from Caa1 and changed the company's rating outlook to stable from negative. "Antero Midstream should face reduced counter-party credit risk and have better cash flow visibility as Antero Resources continues to address its near-term debt maturities and reduces leverage," said Sajjad Alam, Moody's Senior Analyst.
The latest income report shows a second quarter loss of $168 million from a derivative "mark-to-market" revaluation for Antero Resources (AR). This is a swing from a more than $300 million gain in the second quarter of the previous year. This derivative contract re-valuation is largely responsible for the greater...
This article is part of a series that provides an ongoing analysis of the changes made to Glenn Greenberg’s 13F portfolio on a quarterly basis. It is based on Greenberg’s regulatory 13F Form filed on 08/14/2020. Please visit our Tracking Glenn Greenberg’s Brave Warrior Advisors Portfolio series to get an...
Bonhoeffer Fund commentary for the second quarter ended July 2020, providing a case study on Antero Midstream Corp (NYSE:AM). Q2 2020 hedge fund letters, conferences and more Dear Partner, The Bonhoeffer Fund returned 21.7% net of fees in the second quarter of 2020. Given the unique portfolio Bonhoeffer manages, I have struggled to find an […] The post Bonhoeffer Fund 2Q20 Commentary – Case Study: Antero Midstream appeared first on ValueWalk .
Antero Midstream Corporation (NYSE: AM) ("Antero Midstream") today announced that the Board of Directors of Antero Midstream declared a cash dividend of $0.3075 per share for the second quarter of 2020. In addition, Antero Midstream announced plans to issue their second quarter 2020 earnings on Wednesday, July 29, 2020 after the close of trading on the New York Stock Exchange.