Antero Midstream Corp Q3 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Jeremy Tonet - JP Morgan - Analyst : I Just wanted to turn to the topic of in-basin demand, specifically as it relates to the potential for behind-the-meter opportunities in. I believe Antero talked about being in discussions there and looking at this. I'm just trying to get a sense for, I guess, how near or later term, this is. Just trying to get a feel for that and whether customers are looking for prices [pin] to just in-basin? Or is Henry Hub part of the conversation? Wondering how this all mixes together? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 4:00PM, AM.N - Q3 2025 Antero Midstream Corp Earnings Call Brendan Krueger - Antero Midstream Corp - Senior Vice President - Finance and Treasurer of Antero Midstream and Chief Financial Officer and Treasurer of Antero Resources Yeah, this is Brendan. Just to touch on the in-basin demand and behind the meter. I think we've talked about it in the past, Antero Resources is one of the largest consumers of power in the state of West Virginia at the Sherwood complex. So we've talked about it in that light in the past where you could go behind the meter, that would accomplish a couple of things. One, it would reduce overall operating costs for Antero Resources on the power side of things. And then secondly, you'd obviously free up incremental grid power if you were to go behind the meter in that scenario. So obviously, it takes a lot of different parties to work through solutions such as that. So no time frame on our end, still analyzing, still having discussions around opportunities like that. And then in addition, we've mentioned in the past, but we do feel the Antero family is very well positioned. As it relates to data center opportunities to the extent they take hold in the state of West Virginia, I think Antero Resources produces about 40% of the natural gas production in the state. Highly integrated with AM, Antero Midstream has the water system that is invested about $600 million in. So a significant water system, which can be helpful in power infrastructure. So a lot of good attributes between the two parties that we think could play out well, but still ongoing discussions at this point and no set time frame.

Question: Jeremy Tonet - JP Morgan - Analyst : Got it, thank you. And then as regards to the underutilized assets that fit quite nicely given the dynamics there. Just wondering, are there other I guess, pockets across your footprint where the same potential could unfold going forward where there's underutilized assets that could step into new production that provides the strong accretion?

Question: Ivan Scotto - UBS AG - Analyst : I wanted to ask about the 10 undeveloped locations that AR acquired. What kind of capital or infrastructure spend is needed on your end for connectivity to those locations?

Question: Ivan Scotto - UBS AG - Analyst : Okay. Got it. And then just based off of your free cash flow growth and leverage of 2.7 times, how should we think about capital allocation priorities moving forward? Justin Angrew - Antero Midstream Corp - Chief Financial Officer of Antero Midstream and Vice President - Finance of Antero Resources Yeah. Good question. I think for now, we're still focused on debt reduction and repurchasing shares. We've got a fairly balanced approach year-to-date. It's obviously ebbed and flowed a little bit on a quarter-to-quarter basis. But where the shares are trading today, we obviously see a lot of value in repurchasing shares, and there's obviously some benefit and value of paying down debt. It provides you with a lot of flexibility, and you saw the benefit in terms of refinancing the notes. So I think that, looking forward, it's still going to be that balanced approach, roughly 50-50 of share repurchases and debt reduction.

Question: John Mackay - Goldman Sachs Group Inc - Analyst : I wanted to touch on some of these comments around drilling into where AM (inaudible) capacity. You called this kind of first dry gas well as a bit of a proof of concept. But I guess, is the current AR plans to kind of lean more in this direction? Really, what I'm trying to get to is, could we see the effective capital intensity for AM per incremental AR production come down if you're moving into those windows? Or is this again kind of, hey, we'll see how we develop the dry side?

Question: John Mackay - Goldman Sachs Group Inc - Analyst : And maybe just a follow-up to that is, I mean, you are calling it a proof of concept. I guess, is this a comment on your side on the liquids outlook and more enthusiasm for the dry side? Or is they say, hey, people that are looking at us for in-basin solutions do kind of want to see us be able to execute on the dry piece as well?