Why This $10 Million Antero Midstream Position Isn’t Likely Just a Plain-Vanilla Yield Play

1 week ago 9

Jonathan Ponciano, The Motley Fool

Sun, January 4, 2026 astatine 3:51 PM CST 5 min read

The plus absorption steadfast acquired 510,000 shares of Antero Midstream successful the 3rd quarter.
The transaction represents astir 1.94% of reported 13F AUM.
The shares were worthy astir $9.91 cardinal astatine quarter-end.
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New York City-based Ripple Effect Asset Management disclosed a caller presumption successful Antero Midstream Corporation (NYSE:AM), acquiring 510,000 shares valued astatine astir $9.91 million, according to its November 14 SEC filing. The steadfast besides reported holding enactment options underlying 600,000 shares and telephone options underlying different 225,000 shares.

According to a filing with the U.S. Securities and Exchange Commission dated November 14, Ripple Effect Asset Management LP initiated a caller involvement successful Antero Midstream Corporation (NYSE:AM), purchasing 510,000 shares. The estimated worth of the caller holding was $9.91 cardinal astatine the adjacent of the 3rd quarter, based connected the quarterly mean price. The presumption accounts for 1.94% of the firm’s 13F reportable assets.

Top holdings aft the filing include:

NYSE: VST: $27.90 cardinal (16.1% of AUM)
NYSE: EQT: $25.31 cardinal (14.6% of AUM)
NASDAQ: TLN: $17.42 cardinal (10.0% of AUM)
NYSE: KGS: $15.53 cardinal (8.9% of AUM)
NYSE: XIFR: $15.26 cardinal (8.8% of AUM)

As of Friday, shares of Antero Midstream were priced astatine $17.94, up 16% implicit the past year, which was comparatively successful enactment with the S&P 500's astir 17% summation successful the aforesaid period.

Metric

Value

Revenue (TTM)	$1.25 billion
Net Income (TTM)	$472.42 million
Dividend Yield	5%
Price (as of Friday)	$17.94

Antero Midstream owns and operates midstream vigor infrastructure, including gathering pipelines, compressor stations, and h2o handling facilities; gross is chiefly generated from gathering, processing, and h2o services.
Its superior customers are upstream earthy state and liquids producers successful the Appalachian Basin, with a beardown absorption connected supporting Antero Resources' accumulation successful West Virginia and Ohio.

Antero Midstream Corporation is simply a starring midstream vigor institution that leverages its integrated infrastructure web to supply indispensable gathering, processing, and h2o services to earthy state producers, supporting businesslike assets extraction successful the Appalachian Basin. Its fee-based, contract-driven concern exemplary delivers predictable net and positions the institution arsenic a reliable spouse wrong the vigor worth chain.

The operation present surely sticks out. Pairing communal shares with some enactment and telephone vulnerability signals an capitalist trying to technologist outcomes alternatively than simply cod output and wait. That’s notable successful a midstream sanction that already trades arsenic a cash-flow vehicle, not a momentum story.

Antero Midstream’s third-quarter results backmost up that framework. Adjusted EBITDA roseate 10% twelvemonth implicit twelvemonth to $281 million, portion escaped currency travel aft dividends astir doubled to $78 million. Leverage declined to 2.7x, superior spending fell, and the institution repurchased $41 cardinal of banal during the quarter. This is simply a concern throwing disconnected excess currency portion tightening its equilibrium sheet, a setup that tends to headdress downside adjacent erstwhile vigor sentiment turns.

The options overlay sharpens that view. The puts suggest downside extortion oregon a hedge against commodity oregon rate-driven volatility. The calls adhd convexity if the marketplace re-rates midstream currency flows, particularly arsenic stock repurchases and indebtedness simplification continue. That operation implies condemnation successful the operating base, but caution connected timing.