What happened

Shares of Antero Midstream (AM 0.68%) appeared to have lost roughly 50% of their value today, but that's not really what happened. Instead, the two master limited partnerships (MLPs) of Antero Resources (AR 0.25%) completed their simplification transaction today, and many of the popular stock-information dashboards have yet to update their databases.

First announced in October 2018, the plan was for Antero Midstream GP LP (NYSE: AMGP) to acquire all units of Antero Midstream LP, convert into a C-Corp for long-term tax advantages, rename the combined company as Antero Midstream (without the "LP"), and start trading on the market by recycling the latter's existing ticker. That's what happened today -- meaning units of the two MLPs no longer exist.

A fracking operation.

Image source: Getty Images.

So what

It's a bit confusing, but the company represented by the "AM" ticker today is actually a different company than the one represented by that ticker yesterday. The important thing is that investors who owned the MLP have received compensation for the difference in valuations resulting from the simplification transaction.

It was possible to choose to receive cash, new shares, or a combination of cash and shares for each unit of the MLP that you held. If you were a former unitholder and didn't choose one of the compensation options available, then you were automatically given the default option. That included $3.415 in cash and 1.635 shares of the new Antero Midstream stock for each unit of the old MLP you owned.

Investors should consult the latest press release on the Antero Midstream website to see the full details. There's also a new investor presentation for the new company on the website.

Check out the latest earnings call transcript for Antero Midstream.

Now what

Investors shouldn't panic over what appears to be an awful trading day for Antero Midstream. If you were a former unitholder, then you were compensated one way or another -- whether you made the decision or not -- for the difference in valuations stemming from the simplification transaction. If you were caught off guard, then don't worry, but this is a great example of why it's so important to keep up with the stocks you own. In fact, the new Antero Midstream has a lot to offer investors.