Antero Resources today announced a volumetric production payment ("VPP") transaction with an affiliate of J.P. Morgan for cash proceeds of $220 million. The Company also announced today the commencement of cash tender offers for its 2021, 2022 and 2023 senior notes for $525 million. Pro forma for application of the VPP proceeds to repay outstanding revolver borrowings, but prior to the completion of the tender offers, the Company had approximately $715 million drawn on its revolving credit facility and $1.2 billion in liquidity as of June 30, 2020.

Highlights:

• Completed VPP sale to an affiliate of J.P. Morgan for proceeds of $220 million
• VPP is comprised of dry gas producing properties in West Virginia
• Effective date of July 1, 2020 with seven-year term ending June 30, 2027
• VPP net production is 60 MMcf/d for second half of 2020, 75 MMcf/d in 2021, then declines to 40 MMcf/d by the first half of 2027 prior to termination
• Asset sale proceeds of $751 million have achieved the low end of $750 million to $1 billion target range for 2020 
• Announced the commencement of cash tender offers to repurchase any and all of its 2021 senior notes and a portion of its 2022 and 2023 senior notes for up to $525 million
• Pro forma for the VPP but prior to the funding of the tender offers, the Company had $1.2 billion of liquidity as of June 30, 2020
• Borrowing base under the credit facility remains unchanged at $2.85 billion following the VPP transaction

Paul Rady, Chairman and Chief Executive Officer of Antero Resources commented, 
"The VPP transaction brings asset sales to date to the low end of the asset sale target range announced in December of 2019.  The ability to monetize $751 million of assets in such a challenging market is a testament to the quality of Antero's substantial producing properties and acreage."

Glen Warren, CFO and President of Antero Resources said, 
"Pro forma for the VPP sale and assuming $525 million of bonds are tendered and repurchased, Antero will have reduced near term bond maturities by over $1.4 billion since the fourth quarter of 2019.  Future contingent payments expected to be received from our previously announced ORRI counterparty and expected free cash flow during the second half of 2020 will be used to further reduce debt. We will continue to pursue additional asset sale opportunities and plan to use any future proceeds for debt retirement."

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