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

US-based lipid and state institution Antero Resources has signed aggregate agreements with HG Energy II, an autarkic lipid and state shaper focused connected the Appalachian Basin, to get the latter’s upstream and midstream assets.

Antero has agreed to get HG Energy’s upstream assets for $2.8bn successful cash, on with the presumption of its commodity hedge book.

This acquisition is expected to adjacent successful the 2nd 4th of 2026 (Q2 2026), with an effectual day of 1 January 2026, taxable to customary closing adjustments.

Additionally, Antero volition divest its Ohio Utica Shale upstream assets for $800m, which is expected to beryllium completed successful Q1 2026, with an effectual day of 1 July 2025.

Antero’s affiliate Antero Midstream volition besides get HG Energy’s midstream assets for $1.1bn successful currency and merchantability its Utica Shale midstream assets for $400m.

All the transactions person been unanimously approved by Antero’s Board of Directors.

Antero Resources president and CEO Michael Kennedy said: “Today's acquisition expands our halfway acreage and enhances our presumption arsenic the premier liquids developer successful the Marcellus.

“Importantly, we person wide enactment of show to financing the acquired assets with Antero's near-term escaped currency travel generation, proceeds from the non-core Utica divestiture and the three-year hedged escaped currency travel generated by the acquired assets.

“The acquired assets volition besides bolster our industry-leading attraction superior ratio portion providing america with further adust state optionality for section request from information centres and earthy gas-fired powerfulness plants.”

Antero said that the acquisition of HG Energy’s assets would adhd 850 cardinal cubic feet (mcf) equivalent per time of imaginable accumulation successful 2026.

It besides includes 385,000 nett acres adjacent to Antero’s Marcellus acreage successful West Virginia.

The institution projects astir $950m successful synergies implicit a decade, including reduced selling expenses and h2o handling optimisation.

It intends to money the HG Energy acquisition done escaped currency flow, and a $1.5bn underwritten three-year word indebtedness from Royal Bank of Canada and JPMorgan Chase Bank.

The institution volition besides usage the proceeds from the Utica divestiture and disposable liquidity nether its revolving recognition facility, which presently stands astatine astir $1.3bn.

RBC Capital Markets served arsenic pb fiscal adviser, portion Lazard, Wells Fargo, and Vinson & Elkins provided advisory and ineligible enactment to Antero connected the HG Energy acquisition and Utica divestiture.

Jefferies, Wells Fargo, Truist, and Kirkland & Ellis advised HG Energy and its Quantum Capital Group.