News about AM

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.