Appalachian pure-play Antero Resources Corp. said Monday it would target up to $1 billion in asset sales in 2020 as part of ongoing efforts to curb spending and moderate growth.

Antero, which has 584,000 net acres across the basin, said lease acreage, minerals and producing properties could all be sold. Hedge portfolio restructuring and the sale of Antero Midstream Corp. (AM) shares could also help meet the company’s $750 million to $1 billion asset sale target. 

Antero sold $100 million of its shares in AM back to the midstreamer. Proceeds from that sale would be used to repurchase senior notes and proceeds from the broader asset sale will be used to reduce debt.

Antero also has entered into agreements with AM and third party midstream providers that are expected to cut its gathering, processing and transportation costs by $350 million over the next four years.

"The midstream fee reductions further demonstrate our ongoing commitment to reducing Antero's cost structure,” CEO Paul Rady said, adding that the initiatives “support our moderate growth strategy."  

Under an amendment to the gathering agreement with AM, low pressure gathering fees from January through Dec. 31, 2023 are to be reduced based on Antero Resources achieving increasing volumetric targets on low pressure volumes gathered by AM.  The incentive thresholds were structured to align with Antero’s plan to grow 8-10% through 2021 to fill its firm transportation and invest at maintenance capital levels thereafter.

In October, Antero said well cost reduction initiatives helped push drilling and completion (D&C) spending during the third quarter to its lowest since going public in 2013. That helped drive down expectations for full year D&C spending by 4% to a range of $1.3-1.375 billion. The company said iit is now targeting a $375 million overall reduction in capital and operating costs next year.

Antero produced 3.4 Bcfe/d in the third quarter, while it had 10.4 Tcfe of proved developed producing reserves at the end of last year. The company is guiding for production to average 3.25 Bcfe/d this year.