Antero Midstream announces $1.1 billion Marcellus acquisition, $400 million sale

Antero Midstream Corporation (NYSE: AM) entered into a definitive agreement to acquire HG II Energy Midstream Holdings for $1.1 billion in cash, the company announced. The transaction includes approximately 50 miles of gathering pipelines and 50 miles of water pipelines in the Marcellus Shale region.

The acquisition is expected to close in the second quarter of 2026 and requires customary regulatory approvals. The company's board unanimously approved the transaction, which is anticipated to add approximately 900 MMcf/d of throughput in 2026 and over 400 undeveloped Marcellus locations.

Separately, Antero Midstream agreed to divest its Ohio Utica Shale assets for $400 million in cash. This divestiture is expected to close in the first quarter of 2026. The divested assets include gathering, compression, and water handling infrastructure with an estimated average annual EBITDA of approximately $35 million over the next three years.

The company plans to finance the Marcellus acquisition through borrowings under its revolving credit facility, proceeds from the Utica divestiture, and potential debt capital markets transactions. Antero Midstream currently maintains approximately $900 million of liquidity under its revolving credit facility. Royal Bank of Canada and Wells Fargo Bank have provided $700 million of additional committed financing for the transaction.

"Today's strategic announcements further enhance the scale of Antero Midstream's asset base, solidifying it as a premier pure-play midstream company in North America's lowest cost basin," said Michael Kennedy, CEO and President.

The acquired assets will operate under a fixed-fee agreement with Antero Resources (NYSE: AR), which separately announced the acquisition of upstream assets from the same seller for $2.8 billion.

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