Antero Midstream Corporation priced a $600 million private placement of 5.75% senior unsecured notes due 2034, with net proceeds of roughly $593 million after fees. The offering, which closed on December 23, 2025, is part of a broader financing package that also includes borrowings under the company’s revolving credit facility and proceeds from the sale of its Utica Shale midstream assets.
The notes are priced at par and carry a 5.75% coupon, a rate that aligns with Antero’s long‑term debt strategy and reflects the company’s stable credit profile. The proceeds, combined with the $400 million cash inflow from the Utica sale and additional credit facility usage, will fund the $1.1 billion acquisition of HG II Energy Midstream Holdings, LLC from HG Energy II, LLC. The transaction expands Antero’s Marcellus‑shale footprint and supports its parent, Antero Resources, by adding dedicated drilling locations and throughput capacity.
The HG II acquisition is a bolt‑on that is contiguous to Antero’s existing infrastructure, providing immediate scale and a stronger position in the Appalachian Basin. Management highlighted that the deal will solidify Antero’s status as a premier pure‑play midstream company in North America’s lowest‑cost basin, reinforcing the company’s growth strategy in a region where production is rising.
Antero’s credit rating remains robust, with S&P Global affirming a ‘BB+’ issuer rating and a ‘BB+’ issue‑level rating on the new notes. The rating reflects confidence that leverage will stay below 3.0x in 2026, even after the acquisition, and that the company’s cash flows will support the debt service profile.
Management emphasized the strategic fit of the acquisition and the disciplined financing approach. CEO Michael Kennedy said the transaction “further enhances the scale of Antero Midstream’s asset base, solidifying it as a premier pure‑play midstream company in North America’s lowest‑cost basin.” The company’s outlook remains positive, with expectations of continued growth in Marcellus‑shale throughput and a focus on operational efficiency to maintain margin stability.
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