Antero Midstream Corporation announces a significant acquisition of Marcellus Shale assets and a divestiture of Ohio Utica Shale assets.
The acquisition involves HG II Energy Midstream Holdings, LLC for $1.1 billion in cash, while the divestiture amounts to $400 million in cash.
The transactions are expected to close in 2026 and have been unanimously approved by the Company's Board of Directors.
Strategic Bolt-on Acquisition
Acquisition near Antero Midstream's existing assets in the Marcellus Shale, serving Antero Resources.
Accretive Free Cash Flow
Expected to increase Free Cash Flow by over 15% and add 900 MMcf/d throughput in 2026.
Capital Avoidance Synergies
Identified over $100 million in future capital avoidance synergies, enhancing shareholder value.
Leverage Profile
Maintaining a strong balance sheet and leverage profile to finance the acquisition.
Divestiture Price
Divested Utica Shale assets at a transaction multiple over 11x next three years average annual EBITDA.
- The acquisitions expand Antero Midstream's asset base and increase shareholder value through enhanced capital efficiency and Free Cash Flow.
- The Company's strong balance sheet allows for debt financing while maintaining credit ratings and positioning for further debt reduction.
Antero Midstream's strategic acquisitions solidify its position as a premier midstream company with increased assets and shareholder value. The transactions demonstrate capital efficiency and a focus on enhancing Free Cash Flow and shareholder returns.