Antero Resources (AR) Update - Dec 18
Posted: Fri Dec 18, 2020 2:26 pm
Antero Resources (AR) is now up more than 330% since April 10 (the day of maximum "Pandemic Fear" IMO). It is the 2nd largest producer of NGLs in the U.S. and if you were on today's EPG webinar, you now know that the outlook for NGL prices is very bullish. If you go to the Antero website and look at slide 7 of their December presentation, you will see that if the transactions below take place according to the Company's plan, redeeming $350 million of their 5.125% senior notes due December, 2022 will significantly lower Antero's near-term debt exposure. At current natural gas and NGL prices, Antero should generate more than enough free cash flow in 2021 to payoff the remaining balance of the 2022 notes. The fact that the new 2026 notes are "unsecured" also makes the banks that hold their revolving credit facility very happy. Also, if you go to the bottom of my forecast/valuation model (under the Sweet 16 tab on our website) you will see that Antero has a VERY HIGH percentage of the 2021 natural gas hedged at $2.80, locking in over $1.5 Billion of operating cash flow next year. For those of you investing for high yield dividends, check our Antero Midstream (AM), it is a C-Corp. with more than 15% annual dividend yield. - Dan
DENVER, Dec. 17, 2020 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources") announced today the pricing of its private placement to eligible purchasers of $500 million in aggregate principal amount of 8.375% senior unsecured notes due 2026 at par (the "Notes"). The offering is expected to close on January 4, 2021, subject to customary closing conditions.
Antero Resources estimates that it will receive net proceeds of approximately $494 million, after deducting the initial purchasers' discounts and estimated expenses. Antero Resources intends to use a portion of the net proceeds from the offering to fund the redemption of $350 million aggregate principal amount of its 5.125% senior notes due 2022 (the "2022 Notes") at par plus accrued interest and to use the remaining net proceeds to repay borrowings under its credit facility. The partial redemption of the 2022 Notes is conditioned on the completion of the offering of the Notes. The offering of the Notes is not contingent upon the completion of such redemption.
The Notes to be offered have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act.
DENVER, Dec. 17, 2020 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources") announced today the pricing of its private placement to eligible purchasers of $500 million in aggregate principal amount of 8.375% senior unsecured notes due 2026 at par (the "Notes"). The offering is expected to close on January 4, 2021, subject to customary closing conditions.
Antero Resources estimates that it will receive net proceeds of approximately $494 million, after deducting the initial purchasers' discounts and estimated expenses. Antero Resources intends to use a portion of the net proceeds from the offering to fund the redemption of $350 million aggregate principal amount of its 5.125% senior notes due 2022 (the "2022 Notes") at par plus accrued interest and to use the remaining net proceeds to repay borrowings under its credit facility. The partial redemption of the 2022 Notes is conditioned on the completion of the offering of the Notes. The offering of the Notes is not contingent upon the completion of such redemption.
The Notes to be offered have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act.