We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Antero Midstream Approves $300-Million Share Repurchase Plan
Read MoreHide Full Article
In a bid to boost shareholder value, Antero Midstream Corporation (AM - Free Report) recently announced a $300-million share buyback program. The company expects the program, which is likely to run through Jun 30, 2021, to not to have any impact on its financial leverage profile.
The latest move is expected to further increase the flexibility of its capital return program. Notably, Antero Midstream is aiming to return capital to its shareholders at a high single-digit rate in 2020. To achieve this target, the company will utilize combinations of share repurchase program and dividend hikes.
As far as dividend hikes are considered, the company is on the right track. In the second week of April 2019, the firm announced its first-ever dividend of 30.25 cents per share, after Antero Midstream GP LP completed the buyout of Antero Midstream Partners LP on Mar 12. On the same day, Antero Midstream GP was transformed into Antero Midstream Corporation.
In July, it reported a hike in its quarterly dividend payout for second-quarter 2019 to 30.75 cents per share, reflecting a sequential rise of 2% and 146% surge from Antero Midstream GP LP's year-ago distribution figure. Markedly, Antero Midstream’s dividend yield rate of 17% is much higher than the industry average of 6.7%.
Antero Midstream’s intention of increasing the rate of return of capital is supported by stable operations. It generates sustainable fee-based revenues under long-term contracts for providing customized and integrated midstream services to leading natural gas producer Antero Resources Corporation (AR - Free Report) . Moreover, through a joint venture with MPLX LP (MPLX - Free Report) , Antero Midstream provides processing and fractionation related services for the produced natural gas by Antero Resources.
However, as the company primarily provides services to Antero Resources, it is losing the opportunity to earn significantly more fee-based revenues by providing midstream services to other drillers in the prolific Marcellus and Utica Shale plays, wherein demand for transportation and storage assets is on the rise. Currently, companies like Anadarko Petroleum Corporation , Cabot Oil & Gas Corporation, Carrizo Oil & Gas Corp. and others are boosting hydrocarbon production from the Marcellus Shale & Ohio.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Antero Midstream Approves $300-Million Share Repurchase Plan
In a bid to boost shareholder value, Antero Midstream Corporation (AM - Free Report) recently announced a $300-million share buyback program. The company expects the program, which is likely to run through Jun 30, 2021, to not to have any impact on its financial leverage profile.
The latest move is expected to further increase the flexibility of its capital return program. Notably, Antero Midstream is aiming to return capital to its shareholders at a high single-digit rate in 2020. To achieve this target, the company will utilize combinations of share repurchase program and dividend hikes.
As far as dividend hikes are considered, the company is on the right track. In the second week of April 2019, the firm announced its first-ever dividend of 30.25 cents per share, after Antero Midstream GP LP completed the buyout of Antero Midstream Partners LP on Mar 12. On the same day, Antero Midstream GP was transformed into Antero Midstream Corporation.
In July, it reported a hike in its quarterly dividend payout for second-quarter 2019 to 30.75 cents per share, reflecting a sequential rise of 2% and 146% surge from Antero Midstream GP LP's year-ago distribution figure. Markedly, Antero Midstream’s dividend yield rate of 17% is much higher than the industry average of 6.7%.
Antero Midstream’s intention of increasing the rate of return of capital is supported by stable operations. It generates sustainable fee-based revenues under long-term contracts for providing customized and integrated midstream services to leading natural gas producer Antero Resources Corporation (AR - Free Report) . Moreover, through a joint venture with MPLX LP (MPLX - Free Report) , Antero Midstream provides processing and fractionation related services for the produced natural gas by Antero Resources.
However, as the company primarily provides services to Antero Resources, it is losing the opportunity to earn significantly more fee-based revenues by providing midstream services to other drillers in the prolific Marcellus and Utica Shale plays, wherein demand for transportation and storage assets is on the rise. Currently, companies like Anadarko Petroleum Corporation , Cabot Oil & Gas Corporation, Carrizo Oil & Gas Corp. and others are boosting hydrocarbon production from the Marcellus Shale & Ohio.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>