Antero Resources Corp. inched closer to its divestiture target for the year with the announcement of a transaction on Aug. 11 for cash proceeds of $220 million.

The transaction, with an affiliate of J.P. Morgan, is a volumetric production payment (VPP) through 2027 comprised of dry gas producing properties in West Virginia. The VPP deal follows Antero’s sale in June of overriding royalty interest (ORRI) in its Appalachia position with proceeds earmarked to pay down debt. 

“This morning’s volumetric production payment transaction is another step towards de-risking the liquidity outlook,” Morgan Stanley & Co. LLC analysts wrote in an Aug. 11 research note.

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