Antero Resources Corporation announced strategic transactions involving the acquisition of HG Energy II, LLC's upstream assets and the divestiture of its Ohio Utica Shale upstream assets.
The acquisition is valued at $2.8 billion in cash plus assumption of HG Energy's commodity hedge book, while the divestiture is for $800 million in cash.
These transactions aim to enhance Antero's core acreage and balance its portfolio for sustained growth in the Marcellus region.
Strategic Acquisition
Acquisition adds 850 MMcfe/d of 2026 expected production in West Virginia's core Marcellus footprint, with significant synergies and lengthening of inventory life.
Maintaining Investment Grade Balance Sheet
Antero anticipates maintaining investment grade ratings and expects a pro forma leverage target of less than 1.0x in 2026.
Accretive Financial Impact
Acquisition made at a 3.7x 2026E EBITDAX multiple, with over 30% expected average Free Cash Flow accretion over the next two years.
- The transactions bolster Antero's position as a premier liquids developer in the Marcellus region.
- Antero anticipates significant cost reductions and margin improvements, enhancing its financial metrics and cash flow generation.
- The divestiture of non-core assets allows the company to focus on core operations and strengthen its balance sheet with the generated proceeds.
Antero Resources' strategic transactions mark a significant step in optimizing its portfolio, enhancing operational efficiency, and strengthening its financial position. The company's focused approach on core assets and synergistic opportunities is expected to drive sustained growth and shareholder value in the coming years.