To buy 60% membership interest in Centrahoma Processing JV that operates two cryogenic processing plants in the Woodford shale of the OK Arkoma Basin.
Affiliates of privately held, Dallas-based Cardinal Midstream LLC plan to acquire midstream assets in the Woodford shale area of the Arkoma Basin of Oklahoma from privately held, Denver-based Antero Resources for $268 million in cash.
Cardinal will acquire a 60% membership interest in Centrahoma Processing LLC, a joint venture between Antero and MarkWest Energy Partners LP, that operates two cryogenic processing plants in the Arkoma Basin. The plants currently have 100 million cubic feet per day of gas-processing capacity. Antero will sell to Cardinal approximately 50 miles of gathering pipeline in Antero's Northern Front and East Rockpile areas of the Woodford play and its amine-treating plant for CO2 removal in the East Rockpile area that currently has 42 million cubic feet per day of capacity.
Antero will use the proceeds to further enhance its liquidity position and for general corporate purposes. Pro forma, Antero will have approximately $400 million of available and undrawn borrowing capacity under its bank credit facility.
Goldman, Sachs & Co. is financial advisor to Antero. Vinson & Elkins LLP is legal counsel to Antero.
The deal is expected to close in early November. The effective date is Sept. 30.