Antero announces $2.8 billion Marcellus acquisition, Utica sale in strategic realignment

Antero Resources has announced a sweeping portfolio realignment, unveiling a $2.8 billion agreement to acquire HG Energy II’s upstream assets in West Virginia’s core Marcellus Shale while simultaneously divesting its Ohio Utica position for $800 million. The transactions—paired with parallel midstream deals by Antero Midstream—mark one of the largest Appalachian basin restructurings in recent years. 

The company said the acquisition, expected to close in 2Q 2026, adds 850 MMcfe/d of expected 2026 production, 385,000 net acres directly offsetting Antero’s existing Marcellus footprint, and more than 400 undeveloped locations with long laterals and high net revenue interests. The deal extends Antero’s core inventory life by roughly five years.

Antero estimates the package delivers $950 million in synergies over 10 years, including capital efficiencies from development optimization, reduced tangible costs, lower LOE and net marketing expense, and tax benefits.

To partially fund the transaction, Antero will divest its non-core Ohio Utica Shale upstream assets for $800 million, with closing targeted for early 2026. Those assets are expected to produce about 150 MMcfe/d next year.

The company emphasized that its investment-grade balance sheet remains intact, with leverage projected to fall below 1.0x in 2026. “Today’s acquisition expands our core acreage and enhances our position as the premier liquids developer in the Marcellus,” CEO Michael Kennedy said. “We have clear line of sight to financing the acquired assets through near-term free cash flow, Utica sale proceeds, and the hedged cash flow from the acquired production.”

HG Energy’s hedge book—covering roughly 90% of expected 2026 and 2027 gas volumes at $4.00 and $3.88/MMBtu—will transfer to Antero, providing immediate downside protection.

Antero Midstream also announced complementary transactions: a $1.1 billion purchase of HG Energy’s midstream assets and the $400 million sale of its Utica gathering and processing systems.

Assuming both sets of deals close as expected, Antero’s pro forma 2026 maintenance production level is projected at 4.2–4.225 Bcfe/d, positioning the company as one of Appalachia’s largest integrated gas players as regional demand from data centers and new gas-fired generation accelerates.