Antero Resources Picks Up Another 13K Marcellus Acres for $108M

antero resourcesYesterday Antero Resources, one of the largest Marcellus/Utica drillers, issued an operations (not financial) update for second quarter 2016. The big news in the update is that they’ve picked up another 13,000 net Marcellus acres, and with it 3 million cubic feet per day of production, for $108 million. This is related to Antero’s purchase of 55,000 acres from Southwestern that we reported in June (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). As we reported at the time, Southwestern had previously paid Chesapeake Energy $12,000 per acre for that same land (see Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre). Antero picked up the acreage for $8181 per acre–about $4K/acre (one-third) less than what Southwestern paid for it. Apparently there was an option in the deal Antero signed with Southwestern that Southwestern has the right to sell an additional 13,000 acres, which they’ve now done. If you do the math, Antero paid $8,307 for the new acreage–still a steal compared to what Southwestern originally paid for it. You’ll notice in the announcement below that Antero calls Southwestern “a third party.” Not sure why they don’t name them, but we love naming names on MDN…

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