Southwestern selling WV acreage to Antero--buying high, selling low?

Antero Resources to buy Marcellus acreage from Southwestern for $450M
  • Antero Resources (NYSE:AR) -2.5% AH after agreeing to acquire 55K net acres and 14M cfe/day of net production in West Virginia's Marcellus Shale from Southwestern Energy (NYSE:SWN) for $450M.
  • AR says substantially all the acreage will be dedicated to Antero Midstream Partners (NYSE:AM) for gas gathering, compression, processing and water services.
  • To fund the deal, AR announces a public offering of 26.75M common shares, with an underwriters option to purchase up to an additional ~4M shares.
  • SWN says it plans to use the cash from the deal to reduce the principal balance of its $750M term loan due in November 2018.

The acquisition includes undeveloped properties located primarily in Wetzel, Tyler and Doddridge Counties in West Virginia; per Yahoo       

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Permalink Reply by Joseph-Ohio on June 9, 2016 at 2:55pm

How about buying high - selling low(er) - keeping a percentile interest (but perhaps not an operating interest) ? 

Might make alot of sense.

Mike MurphyPermalink Reply by Mike Murphy on June 9, 2016 at 6:06pm

yep CHK has a percentage SWN has a percentage now Antero has control .....wonder who they will sell it too and keep a percentage

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