Antero agrees to acquire HG Energy’s upstream and midstream assets

Core Viewpoint - Antero Resources has signed agreements to acquire upstream and midstream assets from HG Energy II for a total of $2.8 billion in cash, enhancing its position in the Appalachian Basin [1][2][3] Acquisition Details - The acquisition of HG Energy's upstream assets is valued at $2.8 billion, with the effective date set for January 1, 2026, and expected to close in Q2 2026 [1][2] - Antero will divest its Ohio Utica Shale upstream assets for $800 million, expected to complete in Q1 2026, effective July 1, 2025 [2] - Antero Midstream will acquire HG Energy's midstream assets for $1.1 billion in cash and sell its Utica Shale midstream assets for $400 million [2] Strategic Benefits - The acquisition is projected to add 850 million cubic feet equivalent per day of potential production in 2026 and includes 385,000 net acres adjacent to Antero's existing Marcellus acreage in West Virginia [4] - The company anticipates around $950 million in synergies over the next decade, including reduced marketing expenses and optimized water handling [5] Financing Strategy - Antero plans to finance the acquisition through free cash flow, a $1.5 billion underwritten three-year term loan from Royal Bank of Canada and JPMorgan Chase Bank, and proceeds from the Utica divestiture [5] - The company has approximately $1.3 billion available under its revolving credit facility [5] Advisory Support - RBC Capital Markets acted as the lead financial adviser, with additional advisory and legal support from Lazard, Wells Fargo, and Vinson & Elkins for Antero [6] - HG Energy and its Quantum Capital Group received advisory support from Jefferies, Wells Fargo, Truist, and Kirkland & Ellis [6]