The assets considered for sale include lease acreage, minerals, producing properties, hedge portfolio restructuring
Antero Resources has announced plans to sell asset worth $750m to $1bn in 2020 in order to reduce debt.
As part of the plan, Antero has initiated sale of $100m of AM shares to Antero Midstream, which is formed by Antero Resources to service its natural gas and NGL production in the Appalachian.
The assets considered for sale include lease acreage, minerals, producing properties, hedge portfolio restructuring or sale of AM shares to Antero Midstream.
As of September 2019, Antero Resources’ total debt stood at $3.7bn. It includes $275m of borrowings outstanding under the company’s revolving credit facility.
Additionally, Antero Resources has signed agreements to reduce approximately $350m in gathering, processing and transportation costs over the next four years.
Antero Resource chairman and CEO Paul Rady said: “The midstream fee reductions further demonstrate our ongoing commitment to reducing Antero’s cost structure.
“In aggregate with the previously disclosed $300 million well cost and operating cost savings, we are now targeting a $375 million overall reduction in Antero’s capital and operating costs in 2020 as compared to previous expectations.
“With these cost savings we now project being free cash flow neutral in 2020 and 2021 combined, and sustained positive free cash flow in 2022 and thereafter, assuming current strip pricing.”
Antero Resources seeks to further reduce all-in cash operating costs
By 2022, Antero Resources is targeting reduction in all-in cash operating costs of $0.35 per Mcfe compared to 2019, by further reducing gathering, processing and transportation expense, lease operating expense, general and administrative and net marketing expense.
Antero Resources president and CFO Glen Warren said: “Antero is in the advantageous position of having a variety of options available for asset monetizations.
“Meeting the asset sale target is expected to result in a low 2-times leverage and robust liquidity of approximately $2.3 billion by year-end 2020, assuming no further senior note repurchases.”
Earlier this year, Antero Midstream said it has closed the previously announced simplification transaction with Antero Midstream GP.