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News  ›  The Motley Fool

Why This $10 Million Antero Midstream Position Isn’t Likely Just a Plain-Vanilla Yield Play

The Motley Fool Logo The Motley Fool By Jonathan Ponciano
Why This $10 Million Antero Midstream Position Isn’t Likely Just a Plain-Vanilla Yield Play

Ripple Effect Asset Management disclosed a $9.91 million position in Antero Midstream Corporation, acquiring 510,000 shares alongside put and call options. The strategic use of options alongside equity suggests the investor is hedging downside risk while maintaining upside convexity, betting on the company's strong cash generation and balance sheet improvement rather than simple yield collection.

Insights
USBpR   neutral

Mentioned as a client of QuoteMedia with no specific performance details


AM   positive

Strong operational metrics with 10% YoY EBITDA growth, nearly doubled free cash flow after dividends, declining leverage (2.7x), and active share repurchases. The strategic options overlay by a sophisticated investor suggests conviction in the operating base and potential upside from balance sheet improvements.