Antero Resources Announces $402 Million Overriding Royalty Transaction

Antero Resources Corporation (NYSE: AR) (“Antero” or the “Company”) today announced the closing of an overriding royalty interest (“ORRI”) transaction with Sixth Street Partners, LLC (“Sixth Street”), a leading global investment firm, that will result in proceeds to the Company of up to $402 million.  Proceeds will be used to repay revolver borrowings and the effective date of the transaction is April 1, 2020.  Further, the Company announced that it is has repurchased additional 2021 senior notes during the second quarter and that $540 million of that issue remain outstanding.  Pro forma for the initial proceeds from the ORRI transaction and the repurchase of senior notes during the quarter, the Company has approximately $745 million drawn on its revolving credit facility and $1.2 billion in liquidity under its credit facility as of March 31, 2020.

Paul Rady, Chairman and Chief Executive Officer of Antero, commented, “The ORRI transaction addresses over half of our $650 to $900 million asset sale goal for 2020 and allows us to pay down debt, while importantly retaining the long-term upside of our core acreage position. Additional asset sales and projected free cash flow during 2020 will be used to further reduce debt.”

Commenting on the transaction, Glen Warren, President, and Chief Financial Officer of Antero said, “We continued to repurchase bonds during the second quarter, reducing the outstanding principal amount of our 2021 bonds to $540 million. The ORRI transaction increases our liquidity, reduces debt, and positions us to address our upcoming bond maturities. Importantly, our borrowing base remains unchanged following this transaction, which further supports our liquidity profile.”

Matt Dillard, Partner at Sixth Street, commented, “Antero has built an extensive core acreage position in one of the lowest cost shale basins in the U.S. Our investment further strengthens Antero’s balance sheet and provides a clear path for the company to develop its attractive acreage position for many years to come. We are excited to participate in this shale development alongside a proven team with a long-term track record of industry success.”

Credit Suisse Securities (USA) LLC was sole financial advisor to Antero on the ORRI transaction and Vinson & Elkins LLP was the legal advisor. White & Case LLP was the legal advisor to Sixth Street.