Antero Midstream Corporation

Overview

• Owns, operates, and develops midstream energy assets that primarily service Antero Resources’ Appalachian Basin production and completion activity in West Virginia and Ohio.
• Two reportable business segments:
  • Gathering and processing
  • Water handling
• Substantially all revenue is derived from Antero Resources (its principal customer), as noted in the 2025 annual report.

Key relationships and customers

• Antero Resources is the sole major customer and a major owner of Antero Midstream (29% ownership as of 12/31/2025).
• Primary commercial arrangements are long-term, fixed-fee and cost-of-service contracts:
  • Gathering and compression services with minimum volume commitments and CPI adjustments
  • Water handling services with fixed fees and CPI adjustments
• Employees are seconded from Antero Resources to Antero Midstream for operations and corporate services, with related reimbursements.

Assets and operating footprint (as of December 31, 2025)

• Appalachian Basin gathering and processing systems:
  • Low-pressure pipelines: 426 miles
  • High-pressure pipelines: 305 miles
  • Compression capacity: 4.8 Bcf/d
• Water handling systems:
  • Buried water pipelines: 236 miles
  • Surface water pipelines: 187 miles
• Water infrastructure:
  • 33 water impoundments with approximately 5 million barrels of storage capacity
  • Water blending and storage built to support well-completion fluid handling
• Clearwater Facility:
  • Antero Clearwater Facility idled since 2019; remaining obligations are met through other water handling services

Growth, acquisitions, and dispositions

• HG Acquisition (announced Dec 5, 2025; closed Feb 3, 2026)
  • Acquired 100% of HG Energy II Midstream Holdings, LLC for $1.1 billion in cash
  • Antero Resources acquired HG Energy II Production Holdings, LLC for $2.8 billion
  • Target assets: gathering and water handling in the core Marcellus Shale (West Virginia)
• Summit Asset Acquisition (May 1, 2024)
  • Acquired Marcellus Shale gas gathering and compression assets from Summit Midstream Partners for $70 million
  • Assets: 48 miles of high-pressure gathering pipelines and two compressor stations (100 MMcf/d total capacity)
  • Interconnected with existing systems; no significant post-acquisition capital expected
• Utica Shale Divestiture (Dec 5, 2025)
  • Agreement to sell Utica Shale midstream assets in Ohio for $400 million; expected close in February 2026
  • Included assets: 118 miles of gathering pipelines, 0.7 Bcf/d compression, 85 miles of water pipelines, and 12 water impoundments (~2 million barrels storage)

Joint venture

• 50% ownership in a joint venture with MarkWest; MarkWest operates day-to-day
• Joint venture assets include processing plants in West Virginia and a one-third interest in two fractionators in Ohio (MarkWest fractionators)
• The joint venture is a key source of processing and fractionation capacity in the Appalachian Basin

Operational and contractual details

• Gathering and compression agreements with Antero Resources:
  • 2019 gathering and compression agreement (through 2038)
  • Marcellus gathering and compression agreement (through 2031; held no minimums as of 1/1/2025)
  • Mountaineer gathering and compression agreement (through 2026)
  • Utica compression agreement (two acreage dedications; one expired in 2024, the other through 2030; Utica asset is part of the divestiture)
• Options for on-pad compression construction:
  • Minimum volume commitment path (examples: 75% of high-pressure capacity and 70% of compression capacity for 10 years for new construction)
  • Cost-of-service fee path (target 13% ROIC over 7 years)
• As of 12/31/2025, 2019 agreement minimums extend to 2035; Mountaineer minimums end in 2026
• Water services agreement:
  • Fixed fees for fresh water deliveries and water treatment at the Clearwater Facility (idled)
  • No minimum volume commitments; initial term through 2035
• Right-of-first-offer:
  • Antero Resources has ROFO rights for processing and fractionation services, subject to certain exceptions

People and governance

• Employees:
  • 632 people concurrently employed by Antero Midstream and Antero Resources as of 12/31/2025 (secondment arrangements)
• Corporate structure:
  • Antero Resources is a major shareholder and is not obligated to provide financial support to Antero Midstream; there are management overlaps
  • Antero Midstream functions as a holding company with a principal asset of its equity interest in Antero Midstream Partners (joint venture)
• Capital and land considerations:
  • Fixed-fee contract model supports stable cash flows
  • Capital budgeting is coordinated with Antero Resources to maximize asset utilization
  • Some assets sit on leased land or easements; right-of-way renewals and land access can affect timelines and costs

Revenue and income indicators

• Revenue source:
  • Substantially all revenue derives from Antero Resources
• 2025 impairment:
  • Utica Shale property and equipment impairment: $87 million loss on long-lived assets
• Taxes:
  • The company expects deductions and NOLs to offset taxable income through 2026 and does not expect material U.S. federal or state income taxes in the near term based on current guidance

Summary of purpose and operations

• Core business: operate midstream infrastructure to support Antero Resources’ Appalachian Basin production and completion activity, including:
  • Gathering and processing natural gas and NGLs
  • Water handling, delivery, treatment, and related services
  • On-site compression and on-pad optimization options
• Contracts emphasize long-term, fixed-fee and cost-of-service structures to minimize direct commodity exposure and provide stable cash flows
• The company continues to evaluate acquisitions and dispositions to expand or optimize its asset base, as shown by recent HG and Summit transactions and the Utica divestiture