Antero Midstream Corp. (AM) announced that it will purchase HG II Energy Midstream Holdings, LLC for $1.1 billion in cash, with the transaction expected to close in the second quarter of 2026. The deal will be financed through a mix of the company’s revolving credit facility, proceeds from the Ohio Utica divestiture, and potential debt‑capital‑markets transactions.
The company will simultaneously sell its Ohio Utica Shale midstream assets for $400 million in cash, with a closing anticipated in the first quarter of 2026. The sale is intended to free up capital and reduce leverage, allowing AM to maintain a low‑leverage profile while expanding its core Marcellus‑focused asset base.
The acquisition adds roughly 50 miles of bi‑directional gathering and compression pipelines and an additional 50 miles of water pipelines, strengthening AM’s ability to serve Antero Resources’ production in the Marcellus Shale. The added infrastructure also enhances the company’s integrated water‑handling system, positioning it for future dry‑gas optionality and higher fee‑based revenue streams.
Management highlighted the strategic fit of the transaction. CEO Michael Kennedy said the deal “expands our core acreage and enhances our position as the premier liquids developer in the Marcellus.” CFO Brendan Krueger noted that the realignment is “highly accretive across key metrics, including operating cash flow, free cash flow, and net asset value.”
Financially, the acquisition is expected to be immediately accretive to free cash flow after dividends by over 15%, while the divestiture is projected to generate about $35 million in annual EBITDA over the next three years. Combined, the transactions are anticipated to reduce AM’s leverage ratio, which has ranged from 2.8× to 3.1× in recent quarters, and to support continued investment in the Marcellus core.
The deal reflects a broader strategic shift by Antero Resources and Antero Midstream, which also announced the acquisition of HG II Energy Production Holdings for $2.8 billion and the divestiture of Ohio Utica upstream assets for $800 million. Together, the transactions are projected to generate roughly $950 million in synergies over ten years, including capital efficiencies, cost reductions, and tax benefits.
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