Antero to buy HG Energy's gas producing assets in $2.8 billion deal

By Yagnoseni Das

Dec 8 (Reuters) - Antero Resources AR.N said on Monday it would buy assets from privately held HG Energy in a deal valued at $2.8 billion, as the U.S. natural gas producer looks to expand its footprint.

Separately, Antero Midstream AM.N, which handles gathering and water services for Antero Resources, will acquire HG Energy's midstream assets for $1.1 billion.

The deals give Antero natural gas reserves at a time when U.S. futures have soared, supported by winter heating demand, heavy LNG exports and accelerating consumption from AI-driven data centres and other power-hungry industries.

U.S. natural gas futures were over $5 per million British thermal units last week, their highest in nearly three years.

Besides the two deals, Antero said it has also agreed to sell its Ohio Utica Shale upstream assets for $800 million to Infinity Natural Resources INR.N and Northern Oil & Gas NOG.N, and its Utica midstream assets for $400 million to the same buyers.

All transactions are subject to customary closing conditions and are expected to close in early 2026.

The HG Energy acquisition should be well received by the market, citing about $950 million in expected synergies, lower breakeven prices and an expanded inventory that strengthens Antero's position against peers, Siebert Williams Shank analyst said.

Held by private equity firm Quantum Energy Partners, HG Energy was founded in 2011, with operations concentrated in West Virginia's Appalachian Basin.

The company's assets trace back to legacy South Penn Oil and Pennzoil holdings acquired from East Resources and expanded through subsequent deals.