AM - Antero midstream Q4 results -- weak result and disappointing guide

Antero Midstream (NYSE:AM) released earnings after the close, posting adjusted net income of 20c/s versus street expectations for 23c. Management also provided 2022 guidance that is likely to disappoint:   Earnings - management guided to adjusted net income of $405m or 85c/s at the midpoint, versus Wall Street estimates of 91c in 2022. Capital - the Company has budgeted for $288m in spend next year (midpoint), versus $262m in 2021. Dividends - in forecasting free cash flow, Management budgets for 90c/s in dividends, unchanged from 2021. Given a tight financial framework, the higher capex will result in no change to debt balances in 2022. Leaving little room to increase the current dividend, without adding debt to the balance sheet. Guiding earnings below street and taking capex higher is not a recipe for outperformance, and unlikely to change Wall Street's bearish view on the name.

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Antero midstream Q4 results -- weak result and disappointing guide