Antero Midstream: Dividend Increases Unlikely
Summary
- Management's focus has shifted from increasing the dividend to share buybacks, which we view as smoke and mirrors.
- The $1.20 per year dividend restoration now appears unlikely, contrary to our previous expectations.
- Despite this, Antero Midstream remains a well-run company worth owning at opportunistic prices.
- The decision to prioritize buybacks over dividend increases is now evident.
Marco Rosario Venturini Autieri
Our coverage of Antero Midstream ( NYSE: AM ) always focused on management returning the $1.20 per year dividend from the $0.90, a cut made several years ago. After reviewing its latest report, our opinion changed from highly likely to it won't. Management
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
We hold a very small position purchased a few years ago.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.