Antero Resources Corp. received $297 million in cash and a 31% ownership stake in the newly formed Antero Midstream Corp., the emerging entity after the closing of the simplification deal between Antero Midstream Partners LP and Antero Midstream GP LP.
The Appalachian Basin-focused shale gas driller's stake in Antero Midstream Corp. is equivalent to 158.4 million shares in the new company, according to a March 13 news release. Antero will cease to consolidate Antero Midstream Partners' financial and operating results in its financial statements, starting in the first quarter.
The simplification deal and the deconsolidation of financial statements are expected to improve Antero's financial transparency and underline the independence of Antero and Antero Midstream Corp., according to Antero executives.
"This improved visibility and simplified corporate structure, alongside a diversified production mix and industry-leading hedge book, result in a low-risk E&P profile positioned to maximize returns across the commodity price cycles," said Paul Rady, chairman and CEO of Antero.
As a result of the deal, Antero Midstream GP now operates as a corporation and will begin trading on the New York Stock Exchange under the ticker symbol AM.