Benchmark and Barclays Maintain Neutral View on Antero Resources (AR)

Antero Resources Corporation (NYSE:AR) is one of the 12 Best American Energy Stocks to Buy Now. On January 15, Benchmark reiterated its Hold rating on Antero Resources Corporation (NYSE:AR) after the company announced a debt issuance to partially fund an acquisition.

Benchmark noted that the company issued $750 million in aggregate principal amount of 5.40% senior unsecured notes due 2036. Antero Resources Corporation (NYSE:AR) plans to use the net proceeds from the offering to fund its $2.8 billion acquisition of HG Energy II. According to Benchmark, the company intends to fund half of the acquisition price through this debt issuance and the divestiture of its Ohio Utica Shale upstream assets for $800 million.

The rest of the purchase price will be financed through a three-year term loan of $1.5 billion. The research firm believes that Antero Resources Corporation (NYSE:AR) should be able to repay this term loan by the end of 2027. This points to a defined path toward reducing debt after this major acquisition.

Earlier, on January 7, Barclays also reiterated its Hold rating on Antero Resources Corporation (NYSE:AR) with a price target of $46 on the stock.

Antero Resources Corporation (NYSE:AR) is an independent natural gas and natural gas liquids company operating in the Appalachian Basin in West Virginia. It is a major supplier of liquified natural gas (LNG) in the US.

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Disclosure: None. This article is originally published at Insider Monkey.