Antero Resources Moves Ahead With Strategic HG Energy Acquisition

Antero Resources Corporation AR, a leading natural gas producer in the United States, announced that it will acquire the upstream assets of the privately held energy firm, HG Energy II, LLC. Owned by Quantum Energy Partners, HG Energy is a natural gas producer primarily operating in the Appalachian Basin. The deal entails total cash consideration of $2.8 billion, while also accounting for HG Energy’s commodity hedge book. It is anticipated to close in the second quarter of 2026.Antero Resources’ Upstream Acquisition of HG Energy IIThe acquisition of HG Energy’s assets adds 850 million cubic feet equivalent per day (MMcfe/d) of expected production in 2026 and 385,000 net acres in West Virginia, adjacent to AR’s core Marcellus acreage. The acquisition is also expected to extend Antero Resources’ inventory life by approximately five years at maintenance capital levels. Furthermore, the company has identified synergies totaling approximately $950 million over 10 years, including nearly $550 million in capital efficiencies to be achieved through streamlining development planning and reducing D&C costs. The deal is also anticipated to be accretive to the company’s free cash flow, net asset value and operating cash flows. AR also stated that it expects the acquisition to lower its cash cost structure by almost $0.25 per Mcfe and enhance its margins by $0.15-$0.20 per Mcfe, excluding the synergies.Antero Midstream’s Acquisition of HG Energy’s Midstream AssetsAntero Midstream Corporation AM, a leading midstream company, announced that it will acquire HG II Energy Midstream Holdings, LLC from the privately held HG Energy for a total cash consideration of $1.1 billion. This bolt-on acquisition is contiguous with its existing midstream infrastructure in the Marcellus Shale. The acquired assets are projected to add around 900 MMcf/d of expected throughput in 2026. Additionally, the deal includes more than 400 undeveloped Marcellus drilling locations dedicated to Antero Midstream’s gathering and processing infrastructure. AM has stated that the acquired assets are capital effective and complement its existing asset base, thereby strengthening its footprint in the Marcellus shale and enhancing system efficiency. The deal is also expected to be immediately accretive to AM’s free cash flow after dividends.Divestiture of Ohio Utica Shale AssetsAntero Resources and Antero Midstream also disclosed that they have agreed to sell their Ohio Utica Shale upstream and midstream assets for a total consideration of $1.2 billion to Infinity Natural Resources and Northern Oil and Gas. Infinity Natural Resources will acquire a 51% interest in the assets for $612 million, while Northern Oil and Gas is expected to acquire a 49% stake for $588 million. These transactions are expected to conclude by the first quarter of 2026. Financing Plan for the DealMichael Kennedy, the CEO of Antero Resources and Antero Midstream, stated that this strategic acquisition boosts its core acreage in the Marcellus while also strengthening its position as a leading liquids developer in the region. He also emphasized that Antero Resources has built a clear plan for financing this transaction through its near-term free cash flow generation, proceeds from the divestiture of its Ohio Utica assets and the hedged free cash flows from its acquired assets generated over the next three years.Rising U.S. Natural Gas Demand Enhances Deal BenefitsThe acquisition provides Antero with more natural gas resources along with other midstream assets at an extremely favorable time, as the natural gas demand in the United States has been on the rise, driven by winter heating needs, strong LNG exports globally, and increased electricity requirements from data centers and other energy-intensive industries. The deal should enhance Antero’s competitive position among peers and revenue visibility in the future.Zacks Rank and Key PicksAR and AM both currently carry a Zacks Rank #3 (Hold).Some top-ranked stocks from the energy sector are Oceaneering International OII and FuelCell Energy FCEL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Antero Midstream Corporation (AM): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks