Mr. Market has yet to learn that nothing succeeds like low financial leverage when midstream operations are analyzed. Antero Midstream (AM) consistently keeps its debt leverage under 4. Not many midstream companies are even close to that conservative ratio. Management has also managed to keep the ratio low without issuing preferred stock.
Kelsey Warren, with his investment grade rating of Energy Transfer (ET), has a ratio closer to 5. In fact, the leverage could be higher or lower depending upon no recourse loans to subsidiaries and how much cash is actually