Antero Resources agreed to sell its Woodford Shale midstream assets to affiliates of Cardinal Midstream LLC for $268 million in cash, it said Friday.
Cardinal is to acquire Antero's 60% membership interest in Centrahoma Processing LLC, which is a joint venture with MarkWest Energy Partners LP that operates two cryogenic processing plants in the Arkoma Basin. The plants currently have 100 MMcf/d of processing capacity.
Antero also will sell to Cardinal approximately 50 miles of gathering pipeline in Antero's Northern Front and East Rockpile areas of the Woodford Shale and its amine treating plant for carbon dioxide removal located in the East Rockpile area. That plant currently has 42 MMcf/d of capacity.
Closing is expected in early November and will have an effective date of Sept. 30, 2010.
Proceeds will be used to enhance Antero's liquidity position and for general corporate purposes, the company said. Following closing, Antero is expected to have approximately $400 million of available and undrawn borrowing capacity under its bank credit facility.