Core Viewpoint - Antero Midstream Corporation has announced a definitive agreement to acquire HG II Energy Midstream Holdings, LLC for $1.1 billion in cash, while also divesting its Ohio Utica Shale assets for $400 million, with both transactions expected to close in 2026 [1][3][8] Acquisition Details - The acquisition of HG Midstream will enhance Antero Midstream's asset base, particularly in the Marcellus Shale, adding approximately 50 miles of gathering pipelines and 50 miles of water pipelines [4][5] - The acquired assets are expected to be immediately accretive to Free Cash Flow by over 15% and will add approximately 900 MMcf/d of throughput in 2026 [7] - The transaction multiple for the acquisition is approximately 7.5x the next three years' average annual EBITDA, with identified synergies reducing the adjusted multiple to 7.0x [7] Divestiture Details - Antero Midstream will divest its gathering, compression, and water handling assets in the Ohio Utica Shale for $400 million, with expected average annual EBITDA of approximately $35 million from these assets over the next three years [8] - The divestiture transaction multiple is over 11x the next three years' average annual EBITDA [7] Financial Strategy - The acquisition will be financed through borrowings under Antero Midstream's revolving credit facility, proceeds from the Utica Shale divestiture, and/or debt capital markets transactions [6] - Antero Midstream currently has approximately $900 million of liquidity available under its revolving credit facility, with additional committed financing of $700 million provided by Royal Bank of Canada and Wells Fargo Bank [6]