(AM) Antero Midstream Partners - Ratings and Ratios

Antero Midstream Corporation is a midstream energy company that specializes in the ownership, operation, and development of energy assets in the Appalachian Basin. Its primary business segments include Gathering and Processing, and Water Handling, providing critical infrastructure for the transportation and processing of natural gas and NGLs from Antero Resources wells in West Virginia and Ohio. With a comprehensive network of gathering pipelines, compressor stations, and processing facilities, the company plays a vital role in the energy supply chain.

The companys Gathering and Processing segment is highly integrated, allowing for efficient collection and processing of natural gas and NGLs. Meanwhile, its Water Handling segment provides essential services, including water sourcing, transportation, and storage, to support the hydraulic fracturing operations of its customers. Antero Midstreams strategic location in the Appalachian Basin positions it for long-term growth, given the regions significant shale gas reserves.

From a technical analysis perspective, the stock is currently trading at $18.56, slightly below its 20-day SMA of $18.64. The 50-day SMA of $17.61 and 200-day SMA of $15.76 indicate a bullish trend, as the stock price is above both averages. The ATR of 0.37 (1.97%) suggests moderate volatility. Given the support levels at $17.8, $16.8, and $15.1, there is potential for the stock to continue its upward trajectory.

Fundamentally, Antero Midstream has a market capitalization of $8.99 billion and a forward P/E ratio of 18.98, indicating a relatively attractive valuation. The companys RoE of 19.75% suggests strong profitability. Combining technical and fundamental insights, a forecast for the stock could involve a potential price target of $20.50 in the next 6-12 months, driven by continued growth in the Gathering and Processing segment and increasing demand for its Water Handling services. This represents a potential upside of around 10% from current levels.

To achieve this forecast, Antero Midstream will need to continue to execute on its growth plans, including expanding its gathering and processing infrastructure to support the increasing production from Antero Resources. Additionally, the company will need to maintain its focus on operational efficiency and cost management to ensure that its profitability remains strong. With a strong foundation in place, Antero Midstream is well-positioned to capitalize on the growing demand for midstream energy services in the Appalachian Basin.