Antero Midstream (NYSE:AM) closed at $20.64 on October 16 and has returned -1.1% over six months, versus 10.5% for the Insider Monkey Billionaire Index. Less than $1 million of its first-half revenue came from customers other than Antero Resources, the producer it was carved out of, which the article describes as close to a captive customer, and its operating margin is 52.00%. The article warns that the moat is only as durable as that producer's drilling plans, noting that earnings fell 8.80% last time even as revenue rose 8.30%. Leverage is 185.55% of equity. The shares trade at 12.92 times next year's expected earnings with a 4.36% yield, a discount the article attributes to the market pricing in concentration risk.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AMnatural gasvaluationdividends
Open a keyword to see other news on the same topic.
Related news
- Is TC Energy (TRP) a Good or Bad Investment at Today's Multiple?
TC Energy trades at 21.19 times next year's expected earnings, closing at $61.74 on October 16 after a 1.5% return over 6 months, versus 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. The company operates natural gas transmission pipelines across Canada, the United States and Mexico, plus power generation, with a 44.25% operating margin, and latest-quarter earnings rose 18.00% on revenue up 5.70%. The article flags risks including debt at 170.37% of equity, the loss of crude oil pipelines to South Bow in 2024, and volumes that depend on North American gas demand from power and LNG exports. A 4.01% yield is cited as income while the market decides whether the stable business justifies the multiple relative to its growth.
- What Is Williams' (WMB) Economic Moat, and Is It Steel or Permits?
Williams (WMB) closed at $71.28 on October 16, with a 0.5% return over 6 months, compared with 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. The article argues its main advantage is the Transco pipeline, which runs from the Gulf Coast up the eastern seaboard, where several attempts to build new pipe have been abandoned after failing to win approvals. A 39.54% operating margin and 21.50% return on equity are cited as evidence of this advantage, although revenue rose only 7.80% last quarter. Limits noted include debt at 200.37% of equity, rules that also restrict Williams' own growth, and a price of 26.81 times expected next-year earnings. The dividend yields 2.95%.
- Why Is Enbridge (ENB) 18% Below Its High While Revenue Nearly Doubled?
Enbridge (ENB) reported revenue close to double the year-earlier level and earnings about a third lower in its report for the quarter ended June. Nearly all of the revenue increase came from commodity sales, and commodity costs rose by almost the same amount, so the article calls this a gross-up rather than growth, with an operating margin of just 10.16%. The earnings decline stems mainly from other income swinging from a sizeable gain to a small expense, largely unrealized derivative valuation changes, while interest expense rose 18.10% and borrowing equals 162.98% of equity. The shares closed at $48.10 on October 16 and have returned -7.9% over six months, versus 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. The author argues the stock's valuation of 20.37 times next year's expected earnings and a 5.82% yield do not look like a company in real difficulty.
- Is Kinetik (KNTK) a Good or Bad Investment After Growing Earnings 65%?
Kinetik (KNTK) closed at $55.30 on October 16 and has returned 18.9% over the last six months, compared with 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. Earnings grew 65.40% and revenue 36.30% in the latest three months, suggesting existing gathering systems are filling up at little extra cost, and the shares are up 50.89% over the past year. The company's operations are concentrated in the Permian Basin, so a slowdown there would hit the whole business, and its debt equals 136.57% of equity, typical of peers but heavier for a company of its size. The stock trades at 21.41 times expected next-year earnings and yields 5.86%, which the author describes as paying a premium multiple for both growth and income.
- Targa (TRGP) Borrowed Five Times Its Equity and the Stock Nearly Doubled
Targa Resources (NYSE:TRGP) carries debt equal to 515.79% of its equity, more than almost anything in midstream, yet its stock closed at $294.90 on October 16, returned 27.4% over the last 6 months and rose 95.38% over the past year. The company gathers gas in the Permian, strips out valuable liquids and ships them to the Gulf Coast for export, and has borrowed to build plants and pipelines rather than distribute cash to owners. Its yield is just 1.70%, and the shares trade at 23.20 times next year's expected earnings versus 27.06 times the past year. The article argues the risk lies in the company having no slack, since its contracts depend on volumes that producers decide to send, so if Permian output stalls, the debt stays high without the expected returns.
- Is ONEOK (OKE) Cheap at 14 Times Next Year’s Earnings?
ONEOK (NYSE:OKE) closed at $93.31 on October 16 and returned 11.4% over six months, versus 10.5% for the Insider Monkey Billionaire Index. The stock trades at 14.49 times next year's expected earnings and yields 4.59%, and revenue rose 52.80% last quarter as the company grew through acquisitions. The article argues that much of this growth was bought rather than built, with only 13.25% of revenue remaining as operating profit and debt at 143.07% of equity. Because a large part of the business involves buying and reselling liquids rather than earning transport fees, the article views the discount as having a reason behind it. It concludes that investors should watch margins rather than revenue.
Related markets
Latest news
- Is Nvidia Stock Really Trading for Just 8 Times 2030 Earnings?
Nvidia is the market's most valuable company, with a market cap above $5 trillion. It trades at 27 times adjusted trailing earnings, but only about 8 times analysts' estimate for fiscal 2030 earnings, a figure the author stresses is a moving target. Revenue growth accelerated from 56% in Q2 FY 2026 to 106% in Q2 FY 2027, though guidance points to a slight slowdown in the current quarter. The stock trades at 13 times next year's earnings, and the board recently authorized a record $150 billion in share repurchases. The author also acknowledges risks such as slower growth or contracting net margins.
- US Orders Civilian Agencies to Rip DeepSeek Out of Government Systems
The U.S. Department of Homeland Security on Monday ordered civilian federal agencies to remove DeepSeek products and third-party services built on the model from their IT systems, and to stop buying them. The notice warns that using DeepSeek may transfer sensitive data to China and could produce intelligence on U.S. persons and agencies. The Commerce Department, the Navy, and the states of New York, Tennessee and Virginia had already restricted DeepSeek. The FCC votes on October 29 on barring Chinese labs from testing electronics for U.S. use.
- Tesla-SpaceX merger is 'not so easy': Analyst
Speculation about a possible merger between SpaceX (SPCX) and Tesla (TSLA) has grown on Wall Street in recent weeks. RBC Capital Markets analyst Tom Narayan says it would not be simple: SpaceX would have to acquire Tesla, likely in an all-stock deal, and would need to pay a strong premium. He sets a $480 price target for Tesla, while the shares trade near $367. The longer-term focus may be Terafab, Elon Musk's chip initiative aimed at cutting production costs by up to 90% and bypassing Nvidia and TSMC. Musk currently controls 85% of SpaceX's voting rights and 20% of Tesla's.
- Is Nvidia (NVDA) Stock Priced Right?
Chip stocks fell sharply last week, and Nvidia (NVDA) dropped nearly 2% as investors worried that heavily indebted AI companies would face higher borrowing costs after bond yields jumped for CoreWeave, a cloud company Nvidia backs. CoreWeave shares had fallen more than 15% the day before. Nvidia's own numbers show no sign of that stress: it sold $96.2 billion of chips and systems in the quarter ended July, up 106% from a year earlier, mostly from data center sales. Its net profit margin was 63.66% over the past 12 months, and management expects $108.0 billion in revenue next quarter, assuming no data center sales to China. The key risk is whether customers can keep paying for chips if interest rates stay high, and the planned partnerships to bring over $500 billion of outside capital into AI infrastructure have not yet become definitive agreements.
- Networking Stocks Rally as Tech Rebound Lifts AI Gear Makers: Ciena and Arista Climb 4%, but Cisco Barely Moves
Networking stocks rallied with the tech rebound as suppliers of AI data center gear drew buying: Ciena (CIEN) rose 4% to $347.48 and Arista Networks (ANET) climbed 4% to $183.32, well ahead of the iShares U.S. Technology ETF (IYW) at 1.29% and the Invesco QQQ Trust (QQQ) at 1.31%, while Cisco (CSCO) was practically unchanged at $107.06. Ciena's fiscal Q3 2026 adjusted EPS was $2.11 against a $1.73 consensus, with revenue up 37% year over year to $1.67 billion, and it raised fiscal 2026 revenue guidance to $6.42 billion. Its backlog reached $8.5 billion, but supply remains the limit, and management does not expect the market to return to balance before 2028. Two customers made up 41.7% of Q3 revenue, so Ciena's growth is concentrated. The next test is whether Ciena can hit its fiscal Q4 2026 revenue guidance of $1.75 billion under tight component supply.
- Gartner Predicts “80% of Neoclouds” Out of Business by 2030: Here’s Who Wins
Gartner forecast on October 14 that more than 80% of neoclouds will stop operating independently by 2030, and CoreWeave (CRWV) fell 25% last week. The article argues that hyperscalers funding AI capacity from their own cash flow, led by Amazon and Alphabet, are likely winners as credit tightens for indebted neoclouds. Amazon generated $140 billion of operating cash flow in fiscal 2025, more than covering $132 billion of capex, while CoreWeave's total debt reached $29.8 billion. Since their July 29 closing low, Microsoft, Alphabet and Amazon are up 15.6%, compared with 1.6% for IREN, CoreWeave and Nebius. Hyperscaler earnings in the coming weeks will need to show whether sold-out capacity is turning into results.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.