US-based oil and gas company Antero Resources has signed multiple agreements with HG Energy II, an independent oil and gas producer focused on the Appalachian Basin, to acquire the latter’s upstream and midstream assets.
Antero has agreed to acquire HG Energy’s upstream assets for $2.8bn in cash, along with the assumption of its commodity hedge book.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This acquisition is expected to close in the second quarter of 2026 (Q2 2026), with an effective date of 1 January 2026, subject to customary closing adjustments.
Additionally, Antero will divest its Ohio Utica Shale upstream assets for $800m, which is expected to be completed in Q1 2026, with an effective date of 1 July 2025.
Antero’s affiliate Antero Midstream will also acquire HG Energy’s midstream assets for $1.1bn in cash and sell its Utica Shale midstream assets for $400m.
All the transactions have been unanimously approved by Antero’s Board of Directors.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAntero Resources president and CEO Michael Kennedy said: “Today’s acquisition expands our core acreage and enhances our position as the premier liquids developer in the Marcellus.
“Importantly, we have clear line of sight to financing the acquired assets with Antero’s near-term free cash flow generation, proceeds from the non-core Utica divestiture and the three-year hedged free cash flow generated by the acquired assets.
“The acquired assets will also bolster our industry-leading maintenance capital efficiency while providing us with further dry gas optionality for local demand from data centres and natural gas-fired power plants.”
Antero said that the acquisition of HG Energy’s assets would add 850 million cubic feet (mcf) equivalent per day of potential production in 2026.
It also includes 385,000 net acres adjacent to Antero’s Marcellus acreage in West Virginia.
The company projects around $950m in synergies over a decade, including reduced marketing expenses and water handling optimisation.
It intends to fund the HG Energy acquisition through free cash flow, and a $1.5bn underwritten three-year term loan from Royal Bank of Canada and JPMorgan Chase Bank.
The company will also use the proceeds from the Utica divestiture and available liquidity under its revolving credit facility, which currently stands at around $1.3bn.
RBC Capital Markets served as lead financial adviser, while Lazard, Wells Fargo, and Vinson & Elkins provided advisory and legal support to Antero on the HG Energy acquisition and Utica divestiture.
Jefferies, Wells Fargo, Truist, and Kirkland & Ellis advised HG Energy and its Quantum Capital Group.
Antero Resources CFO Brendan Krueger said: “The strategic transactions announced today are highly accretive on a per share basis across key metrics including operating cash flow, free cash flow and net asset value.
“We were able to divest a non-core asset at an attractive valuation and pair the expected use of proceeds with the acquisition of assets directly in the core of where we operate today.
“Importantly, as a result of managing Antero’s business with a strong balance sheet, executing the divestiture of the Utica assets and generating significant free cash flow, we expect to reduce leverage to 1.0x or lower in 2026, based on current strip pricing.”
