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Antero Midstream Partners Is Outperforming AMLP: Here’s Why

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Aug. 24 2017, Updated 2:45 p.m. ET

Antero Midstream Partners’ recent performance

Antero Midstream Partners (AM), an MLP formed by Appalachian-based Antero Resources (AR) to provide natural gas gathering, compression, and water handling services, has been weak in terms of stock performance since the beginning of this month. It has fallen 8.0% so far in August. AM’s recent weakness could be attributed to the general negative sentiment in the midstream sector. Larger midstream companies Kinder Morgan (KMI), Williams Companies (WMB), and Enbridge (ENB) have fallen 6.9%, 7.2%, and 1.7%, respectively, since the beginning of August.

EQT Midstream Partners (EQM) and Rice Midstream Partners (RMP) have fallen 3.9% and 4.6%, respectively, so far in August. The Alerian MLP ETF (AMLP), which is comprised of 25 energy MLPs, has fallen 9.4% in the same period.

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Antero Midstream Partners’ YTD performance

AM has managed to stay in positive territory throughout the year, despite the volatility in commodity prices. It has risen 3.3% since the beginning of this year. For the same period, AMLP has fallen 13.7%. AM is outperforming AMLP by 1,700 bps (basis points) year-to-date. AM’s outperformance compared to AMLP could be attributed to its minimal commodity price exposure, low leverage, and reaffirmation of strong distribution growth guidance.

Series overview

In this series, we’ll try to find out how AM looks with these price levels. We’ll analyze its recent throughput volumes, commodity price exposure, cash flow measures, and balance position. Then we’ll look at its valuations, institutional ownership, technical indicators, and analyst recommendations.

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