DENVER, Aug. 11, 2020 /PRNewswire/ -- Antero
Resources Corporation (NYSE: AR) ("Antero Resources" or the
"Company") today announced a volumetric production payment ("VPP")
transaction with an affiliate of J.P. Morgan for cash proceeds of
$220 million. The Company also
announced today in a separate press release the commencement of
cash tender offers for its 2021, 2022 and 2023 senior notes for
$525 million. Pro forma for
application of the VPP proceeds to repay outstanding revolver
borrowings, but prior to the completion of the tender offers, the
Company had approximately $715
million drawn on its revolving credit facility and
$1.2 billion in liquidity as of
June 30, 2020.
Release highlights:
- Completed VPP sale to an affiliate of J.P. Morgan for
proceeds of $220 million
-
- VPP is comprised of dry gas producing properties in
West Virginia
- Effective date of July 1, 2020
with seven-year term ending June 30,
2027
- VPP net production is 60 MMcf/d for second half of 2020, 75
MMcf/d in 2021, then declines to 40 MMcf/d by the first half of
2027 prior to termination
- Asset sale proceeds of $751
million have achieved the low end of $750 million to $1
billion target range for 2020
- Announced the commencement of cash tender offers to
repurchase any and all of its 2021 senior notes and a portion of
its 2022 and 2023 senior notes for up to $525 million
- Pro forma for the VPP but prior to the funding of the tender
offers, the Company had $1.2 billion
of liquidity as of June 30,
2020
- Borrowing base under the credit facility remains unchanged
at $2.85 billion following the VPP
transaction
Paul Rady, Chairman and Chief
Executive Officer of Antero Resources commented, "The VPP
transaction brings asset sales to date to the low end of the asset
sale target range announced in December of 2019. The ability
to monetize $751 million of assets in
such a challenging market is a testament to the quality of Antero's
substantial producing properties and acreage."
Glen Warren, CFO and President of
Antero Resources said, "Pro forma for the VPP sale and assuming
$525 million of bonds are tendered
and repurchased, Antero will have reduced near term bond maturities
by over $1.4 billion since the
fourth quarter of 2019. Future contingent payments expected
to be received from our previously announced ORRI counterparty and
expected free cash flow during the second half of 2020 will be used
to further reduce debt. We will continue to pursue additional asset
sale opportunities and plan to use any future proceeds for debt
retirement."
Presentation
The Company posted a new strategic update presentation
on its website at www.anteroresources.com. Information on the
Company's website does not constitute a portion of, and is not
incorporated by reference into, this press release.
Antero Resources is an independent natural gas and oil
company engaged in the acquisition, development and production of
unconventional liquids-rich natural gas properties located in the
Appalachian Basin in West Virginia
and Ohio. The Company's website is
located at www.anteroresources.com.
This release includes "forward-looking statements." Such
forward-looking statements are subject to a number of risks and
uncertainties, many of which are not under Antero Resources'
control. All statements, except for statements of historical fact,
made in this release regarding activities, events or developments
Antero Resources expects, believes or anticipates will or may occur
in the future, such as those regarding expected results, future
production targets, future earnings, leverage targets and debt
repayment, asset monetization opportunities and pricing,
future financial position, , future receipt of contingent
consideration and the results of the tender offers are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. All forward-looking statements speak only as of the
date of this release. Although Antero Resources believes that the
plans, intentions and expectations reflected in or suggested by the
forward-looking statements are reasonable, there is no assurance
that these plans, intentions or expectations will be achieved.
Therefore, actual outcomes and results could materially differ from
what is expressed, implied or forecast in such statements. Except
as required by law, Antero Resources expressly disclaims any
obligation to and does not intend to publicly update or revise any
forward-looking statements.
Antero Resources cautions you that these forward-looking
statements are subject to all of the risks and uncertainties,
incident to the exploration for and development, production,
gathering and sale of natural gas, NGLs and oil most of which are
difficult to predict and many of which are beyond the Antero
Resources' control. These risks include, but are not limited to,
commodity price volatility, inflation, lack of availability of
drilling and production equipment and services, environmental
risks, drilling and other operating risks, regulatory changes, the
uncertainty inherent in estimating natural gas and oil reserves and
in projecting future rates of production, cash flow and access to
capital, the timing of development expenditures, impacts of world
health event, including the COVID-19 pandemic, potential shut-ins
of production due to lack of downstream demand or storage capacity
and the other risks described under the heading "Item 1A. Risk
Factors" in Antero Resources' Annual Report on Form 10-K for the
year ended December 31, 2019 and in
its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2020.
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SOURCE Antero Resources Corporation