Source: Antero Resources
Antero Resources entered into definitive agreements to sell its midstream assets located in the Woodford Shale area of the Arkoma Basin of Oklahoma to affiliates of Cardinal Midstream for $268 million in cash.
Under the agreements, Antero will sell to Cardinal its 60% membership interest in Centrahoma Processing LLC, which is a joint venture with MarkWest Energy Partners, L.P. that operates two cryogenic processing plants in the Arkoma Basin that currently have 100 MMcfd of natural gas processing capacity. In addition, Antero will sell to Cardinal approximately 50 miles of gathering pipeline in Antero’s Northern Front and East Rockpile areas of the Woodford Shale play and its amine treating plant for CO2 removal located in the East Rockpile area that currently has 42 MMcfd of capacity.
Closing of the sale, which is expected to occur in early November 2010, is subject to customary closing conditions and will have an effective date of September 30, 2010.
The proceeds from the sale will be used to further enhance Antero’s liquidity position and for general corporate purposes. Following closing, Antero is expected to have approximately $400 million of available and undrawn borrowing capacity under its bank credit facility.