Antero Resources Corporation announced a $2.8 billion cash purchase of the upstream assets of HG Energy II, LLC, and the assumption of HG Energy’s commodity hedge book. The deal will close in the second quarter of 2026, with an effective date of January 1, 2026. At the same time, Antero will sell its Ohio Utica Shale assets for $800 million, a transaction expected to close in the first quarter of 2026 and become effective on July 1, 2025.
The acquisition expands Antero’s core acreage in the Marcellus Shale by adding roughly 385,000 net acres and an estimated 850 MMcfe/d of 2026 production. By consolidating its Marcellus operations, the company aims to strengthen its position as a premier liquids developer and to capture growing demand for natural gas driven by LNG exports and data‑center power needs.
Financing for the transaction will come from a combination of Antero’s robust free‑cash‑flow generation, a $1.5 billion term loan, and proceeds from the Utica divestiture. The assumption of HG Energy’s hedge book also provides immediate downside protection for the acquired production, covering a significant portion of 2026 and 2027 gas volumes at favorable prices.
Management estimates $950 million in synergies over ten years, driven by development optimization, cost reductions, and tax benefits. The deal is projected to be accretive to free‑cash‑flow and to lower leverage, with the company expecting its debt‑to‑EBITDA ratio to fall below 1.0× in 2026 while maintaining an investment‑grade rating.
CEO Michael Kennedy said the transaction “expands our core acreage and enhances our position as a premier liquids developer in the Marcellus.” CFO Brendan Krueger added that the realignment is “highly accretive across key financial metrics” and will “strengthen our balance sheet and free‑cash‑flow generation.”
By divesting non‑core Ohio assets and concentrating on Marcellus, Antero is positioning itself to benefit from long‑term natural‑gas demand trends, while the integrated upstream‑midstream platform is expected to deliver higher margins and operational leverage in the coming years.
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