Index removal puts Antero Midstream in focus for benchmarked investors

Antero Midstream (AM) was dropped from the Russell 1000 Dynamic Index on 27 June 2026, an index change that can prompt trading shifts as benchmarked funds rebalance their portfolios.

This kind of index removal often leads index tracking funds to adjust positions around the effective date. These adjustments can affect liquidity and short term trading patterns for Antero Midstream stock.

The index removal comes after a strong period for Antero Midstream, with the share price at US$23.19 and a year-to-date share price return of 29.26%, alongside a 1-year total shareholder return of 28.80% and a 5-year total shareholder return of 215.39%. This suggests that momentum has been firm over the longer term, even if short-term moves are now being shaped by index-related flows.

If you are reassessing your exposure to energy infrastructure after this index change, it can be useful to see what else is moving in related areas, including 35 power grid technology and infrastructure stocks

With Antero Midstream trading near its analyst price target and showing strong multi year total returns, the key question now is whether current valuations leave any mispricing or if the market is already factoring in future growth.

Most Popular Narrative: 40% Undervalued

The most followed valuation narrative for Antero Midstream sees fair value at about $23.29 per share, close to the last close of $23.19, but still leaving room between market price and that estimate under a 7.11% discount rate.

Long-term, exclusive contracts with Antero Resources, combined with over 20 years of high-quality, dedicated natural gas inventory, ensure stable minimum volume commitments, supporting strong earnings visibility and reducing risk for future net margins.

Want to see what is behind that fair value for Antero Midstream? The narrative focuses on steady revenue expansion, higher margins, and a richer future earnings multiple than the sector. It examines which specific growth and profitability assumptions make that valuation work.

Result: Fair Value of $23.29 (UNDERVALUED)

However, this valuation story for Antero Midstream rests heavily on ongoing volumes and regulatory stability, so any production setback or tighter environmental rules could quickly challenge it.

Another View on Antero Midstream’s Valuation

While the narrative and analyst price targets point to Antero Midstream as undervalued, the market multiples tell a tighter story. At a P/E of 26.9x, the stock trades well above the US Oil and Gas industry at 12.9x, the peer average at 17.3x, and above its own fair ratio of 22.2x. This suggests investors are already paying a premium and need to decide how comfortable they are with that valuation risk.

Next Steps

With mixed signals around Antero Midstream’s valuation and outlook, this is a good moment to move quickly, review the data, and form your own judgment using the full breakdown of 2 key rewards and 3 important warning signs.

Looking for more Antero Midstream investment ideas?

If Antero Midstream has caught your attention, do not stop there. The real edge often comes from lining it up against a wider set of quality ideas.

Use the Simply Wall Street Screener to quickly surface other stocks and broaden your opportunity set before the next move passes you by.

• Spot potential bargains early by scanning companies that combine quality fundamentals with attractive pricing using the 44 high quality undervalued stocks.
• Build a steadier core to your portfolio by focusing on companies with robust finances through the solid balance sheet and fundamentals stocks screener (48 results).
• Stay ahead of the crowd by hunting for strong businesses that are still off most radars with the screener containing 19 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.