The Fly

Antero Resources announced the closing of an overriding royalty interest, or “ORRI,” transaction with Sixth Street Partners that will result in proceeds to the company of up to $402M. 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 $540M 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 $745M drawn on its revolving credit facility and $1.2B in liquidity under its credit facility as of March 31, Antero stated. Paul Rady, Chairman and CEO 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.

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