John McKay's questions to Antero Midstream Corp (AM) leadership • Q2 2025
Question
John McKay from Goldman Sachs inquired about Antero Midstream's potential role in emerging in-basin demand opportunities and questioned the capital allocation strategy between share buybacks and balance sheet improvements.
Answer
Brendan Krueger, CFO of Antero Midstream, explained that AM could build new infrastructure, such as spurs with take-or-pay contracts, to service new demand. Regarding capital allocation, Krueger clarified that the 50% excess free cash flow target for buybacks is a long-term goal, not a quarterly one, and the company opportunistically balances repurchases with debt reduction, which it also sees as accretive to equity value.