Antero Midstream Q3 2026: Litigation Win Masks an Earnings Miss
As seen on the 24/7 Wall St. homepage on October 28, 2026.
A $377 million Clearwater litigation win funded a $370 million raise to 2026 adjusted free cash flow guidance, even as adjusted earnings and revenue came in missing expectations.
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Antero Midstream reported adjusted earnings per share of $0.28 for the third quarter of 2026, missing expectations on both earnings and revenue.
The dominant event of the quarter was a $376.96 million gain tied to Clearwater litigation within the Water Handling segment. That windfall lifted GAAP net income and funded an increase to full-year 2026 adjusted free cash flow guidance. Stripped of that one-time item, the underlying operational picture was more modest.
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On the operating side, gathering and compression volumes grew year over year, but roughly 10 Bcf of curtailments weighed on throughput in Q3. Management flagged another 15 to 20 Bcf of curtailments expected in Q4 2026, a headwind investors will want to monitor as the company completes its HG water system integration by year-end.
Capital expenditures fell 33.5% year over year as the company cut debt and leverage during the quarter, including the call of 2028 notes. CEO Michael Kennedy cited two drilled but uncompleted growth pads and additional compression coming online in Q4 as the catalysts management expects to drive visible EBITDA growth in Q4 2026 and into 2027.
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