Antero Midstream to Acquire Water Business for $1.05 Billion

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Oil and natural gas company Antero Resources Corp. said Friday that it would sell its water business to Antero Midstream PartnersLP for about $1.05 billion in cash, debt and partnership units

The buyer is Antero Midstream Partners LP, also of Denver. In November last year, Antero Resources (NYSE: AR) spun off Antero Midstream Partners LP (NYSE: AM). After the stock and cash deal is completed, Antero Resources will own about 66.5 percent of Antero Midstream with the public owning the rest.In addition to the $1.05 billion purchase price, Antero Resources could get two$125 million earn-out payments at the end of 2019 and 2020 if certain water volume delivery targets are met.

In addition to the $1.05 billion purchase price, Antero Resources could get two$125 million earn-out payments at the end of 2019 and 2020 if certain water volume delivery targets are met.

The water business being sold, Antero Resources said, consists of two independent systems that deliver water from the Ohio River and other sources to oil and gas wells in the Marcellus and Utica Shales in West Virginia and Ohio. There are 150 miles of permanent buried water pipelines, 80 miles of surface pipelines, 35 water storage locations and water pumps. The water systems, Antero Resources said, eliminates truck trips to the oil wells, "eliminating an estimated 400,000 truck trips and thereby reducing Antero Resources' overall environmental impact," the company said in a statement.

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