Energy

What Analysts Are Saying About Antero Midstream After the Quiet Period

Chris Lange

Published: May 30, 2017 11:20 am

Last Updated: January 12, 2020 11:33 am

Antero Midstream G.P. L.P. (NYSE: AMGP) closed its initial public offering earlier this month, and now its quiet period has come to an end. Analysts are taking this opportunity to make calls on this midstream oil company. Here, 24/7 Wall St. has included some of the company’s recent highlights, as well as what analysts are saying.

The underwriters for this offering included Morgan Stanley; Barclays; JPMorgan; Baird; Citigroup; Goldman Sachs; Wells Fargo Securities; Credit Suisse; Scotia Howard Weil; Tudor, Pickering, Holt; Evercore ISI; Raymond James; D.A. Davidson; Janney Montgomery Scott; Ladenburg Thalmann; and MUFG.

Antero Midstream is a growth-oriented master limited partnership 59% owned by Antero Resources Corp. (NYSE: AR) that was formed to own, operate and develop midstream energy infrastructure primarily to service Antero Resources’ rapidly increasing production and completion activity in the Appalachian Basin’s Marcellus Shale and Utica Shale located in West Virginia and Ohio.

Credit Suisse said in its report:

AMGP is the general partner of AM (OP), a northeast powerhouse, and derives 100% of its cash flow from incentive distribution rights (IDR) payments from AM. We forecast a 3-year distribution growth CAGR at AM of 30% which in turn drives a 70% dividend CAGR at AMGP over the same period. Our $28 TP suggests a 30% total return which is above the median of our coverage universe and is supportive of our OP rating.

A few other analysts weighed in on Antero Midstream G.P. as well:

• Raymond James initiated it with a Strong Buy rating and a $26 price target.
• Baird initiated it at Outperform with a $28 price target.
• Wells Fargo initiated it at Market Perform.
• Barclays initiated it with an Overweight rating and a $26 price target.
• Stifel initiated it at Hold with a $24 price target.
• D.A. Davidson initiated it at Buy with a $30 price target.
• JPMorgan initiated it at Overweight with a $27 price target.
• Ladenburg Thalmann initiated it with a Buy rating.
• Goldman Sachs initiated it at Buy with a $29 price target.

Credit Suisse also reinstated coverage of Antero Midstream Partners L.P. (NYSE: AM) with an Outperform rating and a $44 price target. Barclays reinstated its Overweight rating with a $40 price target. Goldman Sachs started it with a Buy rating and a $45 price target.

Shares of Antero Midstream G.P. were trading up 1.4% at $22.28 on Tuesday, with a consensus analyst price target of $26.50 and a post-IPO range of $20.68 to $22.69.

Antero Resources traded down 1.7% at $20.66, with a 52-week trading range of $20.17 to $30.50 and a consensus price target of $31.75.

Antero Midstream L.P. shares were up 1.3% at $34.71. The consensus price target is $40.67 and the post-IPO range is $24.07 to $35.74.