SM - Here's Why Hold Strategy is Apt for Antero Midstream (AM) Stock | Benzinga
Antero Midstream Corporation (NYSE: AM) has witnessed upward earnings estimate revisions for 2024 in the past 60 days.
The company, currently carrying a Zacks Rank #3 (Hold), beat the Zacks Consensus Estimate for earnings in the trailing four quarters, delivering a surprise of 11.1% on average.
Sustained Earnings Growth
Antero Midstream has shown consistent earnings growth, with an 18% compound annual growth rate in EBITDA from 2014 to 2023, and is guiding to a mid-point of $1.04 billion of EBITDA for 2024. The company's steady performance and positive earnings outlook indicate robust operational efficiency and financial health.
Capital Efficiency and Reduction
Antero Midstream has cut its capital expenditure guidance, indicating a 14% year-over-year reduction in 2024, aligning with a lower gas price environment and operational optimization. This strategy is supported by just-in-time investments that generate consistent free cash flow, contributing to a peer-leading leverage of 3.3X at the end of 2023. The company's ability to adapt capital spending to market conditions, while maintaining operational effectiveness demonstrates prudent financial management and potential for enhanced shareholder value.
Strong Return on Invested Capital
AM has maintained a high ROIC, averaging 17% from 2020 to 2023, underscoring its effective use of capital ...