0001104659-26-051518
SEC filingRevenue and operating income grew strongly in Q1 2026, driven by the HG Acquisition, while net income was flat as higher costs offset gains.
Revenue for the first quarter of 2026 increased 7.9% to $314.2 million compared to $291.1 million in the prior-year quarter. The growth was primarily driven by increased gathering and processing volumes resulting from the HG Acquisition, which closed in early February 2026, as well as CPI-based fee escalators in certain contracts. Operating income rose 6.4% to $188.6 million, and the operating margin remained strong at 60.0%, reflecting the company's ability to convert revenue into operating profit despite cost pressures.
Net income was essentially flat at $118.3 million ($0.25 per diluted share) compared to $120.7 million ($0.25 per diluted share) in the prior-year quarter. The slight decline was primarily due to higher income tax expense related to equity-based compensation, partially offset by revenue growth. The company remains dependent on Antero Resources as its primary customer and expects to derive substantially all of its revenues from Antero Resources for the foreseeable future. The disclosures regarding reasonably possible losses are not meant to be precise indicators of expected future losses.