Critical Review: Antero Midstream Partners (NYSE:AM) and Eagle Rock Energy Partners, L.P. (EROC)
Eagle Rock Energy Partners, L.P. (NASDAQ: EROC) and Antero Midstream Partners (NYSE:AM) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitabiliy, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
46.6% of Antero Midstream Partners shares are owned by institutional investors. 7.9% of Antero Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Eagle Rock Energy Partners, L.P. and Antero Midstream Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eagle Rock Energy Partners, L.P.||N/A||N/A||N/A||N/A||N/A|
|Antero Midstream Partners||$625.05 million||10.16||$409.52 million||$1.36||25.13|
Antero Midstream Partners has higher revenue and earnings than Eagle Rock Energy Partners, L.P..
This table compares Eagle Rock Energy Partners, L.P. and Antero Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eagle Rock Energy Partners, L.P.||-107.85%||-31.24%||-15.37%|
|Antero Midstream Partners||38.95%||19.78%||10.55%|
This is a summary of current ratings and price targets for Eagle Rock Energy Partners, L.P. and Antero Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eagle Rock Energy Partners, L.P.||0||0||0||0||N/A|
|Antero Midstream Partners||0||0||13||0||3.00|
Antero Midstream Partners has a consensus price target of $39.40, indicating a potential upside of 15.31%. Given Antero Midstream Partners’ higher possible upside, analysts clearly believe Antero Midstream Partners is more favorable than Eagle Rock Energy Partners, L.P..
Antero Midstream Partners pays an annual dividend of $1.28 per share and has a dividend yield of 3.7%. Eagle Rock Energy Partners, L.P. does not pay a dividend. Antero Midstream Partners pays out 94.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Antero Midstream Partners beats Eagle Rock Energy Partners, L.P. on 9 of the 10 factors compared between the two stocks.
About Eagle Rock Energy Partners, L.P.
Eagle Rock Energy Partners, L.P. is a limited partnership engaged in developing and producing oil and natural gas properties. The Company’s interests include operated and non-operated wells located in four oil and gas producing regions: The Mid-Continent region consists of operated and non-operated properties in the Golden Trend field, Cana (Woodford) shale play, Verden field and other fields located in the Anadarko Basin of western Oklahoma, the Mansfield field and other fields in the Arkoma Basin of Arkansas and Oklahoma, and various fields in the Texas Panhandle; The Alabama region includes the Big Escambia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama; The Permian region contains various fields, including Ward South and Ward-Estes North located in Ward, Pecos and Crane Counties, Texas, and East Texas/South Texas/Mississippi. These working interest properties included over 561 gross operated productive wells and over 1,217 gross non-operated wells.
About Antero Midstream Partners
Antero Midstream Partners LP is a limited partnership formed by Antero Resources Corporation (Antero Resources) to own, operate and develop midstream energy assets to service Antero Resources’ production. The Company’s segments include gathering and compression, and water handling and treatment. The gathering and compression segment includes a network of gathering pipelines, compressor stations, and processing and fractionation plants that collect and process natural gas, natural gas liquids (NGLs) and oil from Antero Resources’ wells in West Virginia and Ohio. Its water handling and treatment segment includes two independent fresh water distribution systems from sources including the Ohio River, local reservoirs, as well as several regional waterways. The water handling and treatment segment also includes other fluid handling services which includes, high rate transfer, wastewater transportation, disposal and treatment.
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