10 Best WallStreetBets Stocks To Buy Right Now

8. Antero Midstream Corp. (NYSE:AM)

Number of Hedge Funds: 28

Antero Midstream Corp. (NYSE:AM) owns, operates, and develops midstream energy assets. It offers gathering and compressions, water distribution, clearwater facility, fractionation, and pipeline safety services, and is a key player in the Appalachian Basin energy market, supporting the production and delivery of natural gas and NGLs.

Natural gas is a promising commodity due to its cleaner nature compared to coal and its increasing adoption in emerging markets. Demand is driven by power generation, industrial applications, hydrogen production, and transportation. Midstream companies, like Antero Midstream Corp. (NYSE:AM), benefit from increased natural gas volumes as they provide essential infrastructure.

It supports the operations of natural gas and natural gas liquid producer Antero Resources (AR). As a majority shareholder with a 29% stake, Antero Resources has significant control over Antero Midstream Corp. (NYSE:AM). Its revenue is primarily derived from Antero Resources, which operates in the Marcellus and Utica basins. Despite declining natural gas prices, Antero Resources has maintained profitability in Q1 2024 due to its favorable cost structure.

The company’s majority market share in the Appalachian Basin positions it well to capitalize on rising demand. Its deep reserves and industry-leading breakeven prices offer a competitive advantage. In the second quarter of 2024, revenue increased by 4.46% year-over-year, generating a total of $269.80 million in revenue.

The company is expected to benefit from its recent acquisition of Summit Midstream Corporation, valued at ~$70 million. The acquired assets, located in the Marcellus Shale, are anticipated to immediately increase its free cash flow and support future growth plans. While the natural gas market faces potential headwinds, the company’s focus on operational efficiency and cost reduction positions it well for future growth.