Antero Will Use Its Own Midstream Co on Newly Acquired WV Acreage

antero resourcesOn Friday MDN reported that Antero Resources has just cut a deal with Southwestern Energy to purchase 55,000 net acres located in Wetzel, Tyler and Doddridge Counties in West Virginia for $450 million (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). As we observed (which no one else reported), Antero paid far less for the acreage than Southwestern did in 2014 when they purchased it from Chesapeake Energy. We spotted an interesting tidbit from SNL Financial: One of the attractions for Antero is that they will use their own midstream company to pipe the gas they produce from the newly purchased property. There are no preexisting contracts in place with another midstream company. So Antero will make money in two ways: by producing the gas, and by transporting it. Smart. Another interesting tidbit: While Antero says the acreage is in its “core” area, a Barclays analyst calls it “second best” acreage for Southwestern…

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