AR - Why Antero Resources Stock Is Spiking Today
Shares of Antero Resources (NYSE: AR) jumped 10% by 10:30 a.m. EDT on Monday. Fueling the natural gas stock was a royalty transaction. That deal also helped fuel shares of its midstream affiliate Antero Midstream (NYSE: AM), which, likewise, leaped more than 10% in early morning trading.
Antero Resources closed an overriding royalty interest (ORRI) transaction with Sixth Street Partners. The deal will bring in up to $402 million in cash, which Antero will use to repay borrowings under its revolving credit facility. The company received an initial $300 million at closing and will get up to $102 million over the next 12 months if it reaches certain volume thresholds.
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