The company also said it has agreed to sell its upstream assets in the Ohio Utica Shale for a total cash consideration of $800 million.
- The firm’s affiliate, Antero Midstream, will also acquire HG Energy's energy infrastructure assets for a total cash consideration of $1.1 billion.
- Antero expects over 30% average free cash flow accretion over the next two years.
- U.S. gas demand could grow by 25 billion cubic feet per day by 2030, driven by both data center expansions and LNG exports.
Antero Resources (AR) announced on Monday that it would acquire the upstream assets of HG Energy for $2.8 billion in cash.
Separately, the company said it has agreed to sell its upstream assets in the Ohio Utica Shale for a total cash consideration of $800 million. Its affiliate, Antero Midstream, will also acquire HG Energy's energy infrastructure assets for a total cash consideration of $1.1 billion. Antero stock was down over 1% premarket.
What Would Antero Gain?
After the closing of the deal, expected in the second quarter of 2026, Antero expects over 30% average free cash flow accretion over the next two years. The agreement is also likely to reduce Antero's cash cost structure by about $0.25 per thousand cubic feet equivalent (Mcfe) and improve the company's margin by approximately $0.15 to $0.20 per Mcfe.
In total, the acquisition will add 850 million cubic feet equivalent per day of 2026 expected production in West Virginia's core Marcellus shale region. The company also expects to log $950 million in benefits over the next 10 years.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about Antero Resources was in the ‘neutral’ territory at the time of writing, compared with ‘bearish’ a week ago.
Despite recent weakness, natural gas demand is expected to surge amid the ongoing push for gas-fired power plants in the U.S., as power producers scramble to raise electricity output to meet a surge in AI data center-led demand.
U.S. gas demand could grow by 25 billion cubic feet per day by 2030 due to both data center expansions and LNG exports, East Daley Analytics senior director Jack Weixel reportedly said earlier this year.
“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 centers and natural gas-fired power plants," said Antero CEO Michael Kennedy.
Antero Resources' stock has gained a little over 2% this year.
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