Antero Resources said Monday it will acquire HG Energy’s upstream assets for $2.8 billion in cash while selling its Ohio Utica holdings and expanding its midstream footprint through a related $1.1 billion deal.
Antero Announces Multi-Billion-Dollar Acquisition Plan
Antero Resources said the purchase will close in the second quarter of 2026 and add significant production in West Virginia’s Marcellus shale. The company also agreed to sell its upstream assets in the Ohio Utica Shale for $800 million.
The firm’s affiliate, Antero Midstream, plans to buy HG Energy’s infrastructure assets for $1.1 billion. Antero said the combined transactions will streamline operations and support growth.
“The acquired assets will bolster our maintenance capital efficiency and expand optionality for demand from data centers and natural gas-fired plants,” Antero CEO Michael Kennedy said.
Deal Expected To Boost Cash Flow and Cut Costs
After the deal closes, Antero expects more than 30 percent average free cash flow accretion over the next two years. The company said the agreement will reduce its cash cost structure by about $0.25 per thousand cubic feet equivalent and improve margins by up to $0.20 per Mcfe.
The acquisition is set to add roughly 850 million cubic feet equivalent per day of expected 2026 production from core Marcellus acreage. Antero estimated the deal will provide $950 million in benefits over the next decade.
Jack Weixel, senior director at East Daley Analytics, said U.S. natural gas demand is poised to rise sharply. “Gas demand could grow by 25 billion cubic feet per day by 2030 as data centers and LNG exports expand,” he said earlier this year.
Market Reaction and Investor Sentiment
Antero Resources stock slipped more than 1 percent in premarket trading Monday but remains up slightly more than 2 percent this year. Retail sentiment on Stocktwits shifted to neutral from bearish a week earlier as investors assessed the long-term value of the transaction.
Despite recent market softness, analysts expect natural gas consumption to strengthen as utilities increase power output to meet rapidly rising electricity needs from AI data centers. Industry watchers say the shift underscores why producers are seeking scale and efficiency.
Antero said it will continue to evaluate portfolio options as it positions itself for changing demand patterns over the next decade.
Visit Oil Gas Energy Magazine for the most recent information.
