Antero Resources Picks Up a Cool $1B from “Delevering” Initiative

Ever hear the word “delevering” used in a sentence? How about this: “Antero Resources announces completion of $1 billion delevering program.” Yeah, financial mumbo jumbo. What the heck is delevering? We’re not quite sure. But we can interpret Antero Resources’ announcement yesterday for you, which included the aforementioned sentence. Here’s the translation: Antero has raised $1 billion by selling new units (think shares of stock) in its pipeline subsidiary ($311 million raised), and by monetizing its natural gas hedge portfolio ($750 million raised). Yes, back into the financial lingo weeds to figure out what is meant by “monetizing” the company’s “hedge portfolio.” We’ll take a stab at explaining it, below. Bottom line up here at the top: Antero figured out how to raise another $1 billion, used to pay off money Antero had borrowed under its massive $4 billion line of credit. Antero is one of the biggest (and best) drillers in the Marcellus/Utica, which is why we care about where and how they raise money…

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