Antero Midstream Agrees To Buy Antero Resources Water Business In $1.05 Billion Deal

Energy company Antero Midstream Partners LP said Friday it has agreed to buy Antero Resources Corp.'s water business in a deal valued at $1.05 billion. Antero Resources is further entitled to two potential $125 million earn out payments at year-end 2019 and 2020, if certain fresh water delivery targets are met, Antero Midstream said in a statement. "Antero Midstream takes another step towards becoming a full value chain midstream services provider in the Appalachian Basin, and Antero Resources reduces debt by $794 million," Antero Midstream Chief Executive Paul Rady said in a statement. The deal is expected to close on Sept. 23. Antero Midstream raised its 2015 EBITDA outlook to $170 million to $180 million from a prior $150 million to $160 million. Shares were not yet active in premarket trade, but are down 26% in the year so far, while the S&P 500 has fallen 3.3%.