AR - Antero Midstream: Looking Bullish Following The Phase Out Of Russian Gas

• Despite their high dividend yield, I was not previously a fan of Antero Midstream, although this now changes following the phase out of Russian gas exports to Europe.
• Whilst not an easy task, Europe will seek as much gas supplies outside of Russia as possible, which is bullish for United States-based producers and their midstream companies.
• This lowers the risks and thus increases the appeal of their growth investments, which were responsible for their dividend reduction in early 2021.
• Elsewhere, they saw a slightly bumpy start to 2022 with a relatively small cash short-fall to cover their dividend payments but this was broadly expected and should improve.
• Since this pivotal geopolitical shock improves the outlook for their growth investments, I now believe that upgrading to a buy rating is appropriate.

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