AR - Antero Midstream: Lottery Ticket Time

• Antero Midstream's immediate guidance of low to no growth disappointed the market.
• But the relatively generous distribution is adequate compensation while investors wait for some growth.
• The court case could result in a cash bonanza that accelerates the progress towards management goals.
• Antero Resources has inched the production up to low-single-digit growth from maintenance. That inching up is pretty typical for a cyclical industry in a period of strong commodity prices.
• Free cash flow is calculated by assuming the capital budget is funded completely from EBITDA. Most midstream companies fund at least a portion of their capital using debt.

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