<div id="readability-page-1"><div>Fitch Ratings-New York-09 December 2025:Fitch Ratings has affirmed Antero Resources Corporation's (Antero) Long-Term Issuer Default Rating (IDR) at 'BBB-' and senior unsecured notes ratings at 'BBB-' following the announcement that it will acquire HG Energy II, LLC's (HG) assets in West Virginia. The Rating Outlook is Stable.Antero will pay approximately $2.8 billion for HG's assets in an all-cash transaction. It will also assume HG's natural gas price hedges. The acquisition will be partially funded by the announced $0.8 billion all-cash divestment of Antero's Ohio Utica assets. The remaining amount will be funded by new debt raised by Antero and FCF generation.Antero's rating reflects its significant production scale, large reserves and drilling inventory, reasonable leverage and a significant 2026 hedge book that supports deleveraging after the acquisition. Antero has a 29% interest in Antero Midstream (AM), the key provider of midstream services to the company.Key Rating DriversTemporary Leverage Increase: Fitch expects Antero's acquisition of HG's upstream business to increase its debt to $3.2 billion from around $1.2 billion at YE 2025. The company's EBITDA leverage will be close to the 1.5x negative rating sensitivity immediately after the acquisition, based on Fitch's oil and gas price assumptions for 2026. Fitch projects Antero's leverage to reach 1.1x by YE 2026 and remain around 1.0x at midcycle. Antero aims to repay debt with FCF after the transaction.Acquisition Augments Scale: HG produces more than 0.85 billion cubic feet equivalent per day (bcfe/d) of mostly dry gas, which is comparable to approximately a quarter of Antero's production. Antero's production of 4.2 bcfe/d (30% liquids) pro forma for the announced deals will be large but still significantly less than its 'BBB-' peers, EQT Corporation (BBB-/Stable; 6.9 bcfe/d; 6% liquids) and Expand Energy Corporation (BBB-/Stable; 7.3 bcf/d; 8% liquids). Fitch expects Antero's midcycle EBITDA to increase to $1.3 billion, up from $1 billion before the deal.Strategic Fit: HG's acreage is mostly located adjacent to Antero's assets in West Virginia, leading to natural synergies. AM will acquire HG's midstream business, which could also be marginally positive for Antero. Fitch assumes around $50 million of annual EBITDA-level synergies for Antero. The acquisition should also lead to material capex savings.Divestment Limits Leverage: Antero expects to complete an $800 all-cash divestment of its Utica assets in Ohio in 1Q26. This materially reduces Antero's leverage after the purchase of HG's assets. Antero expects its Ohio Utica assets to produce approximately 0.15 bcfe/d and generate around $100 million of EBITDA in 2026. Fitch estimates this sale reduces Antero midcycle EBITDA by around $50 million, based on our price assumptions. Antero will be focused solely on West Virginia acreage after the transaction.Declining Costs: HG has considerably lower unit costs than Antero, which incurs substantial midstream expenses on its liquids. The acquisition will drive down Antero's operating costs. Antero may have more superior economics than HG, depending on the level of natural gas liquids (NGL) prices, but it is more vulnerable to a double shock of low gas and liquids prices than dry gas producers. HG also has higher average net revenue interest than Antero and low capital reinvestment rate, which further reduces Antero's pro forma costs.Hedging Intensifies: Antero will increase the share of hedged production, which is positive for its financial profile. Antero will assume HG's existing hedges after the acquisition is completed and will arrange additional hedges before the deal completion. We expect around 54% of its pro forma 2026 natural gas volumes to be hedged primarily with swaps (excluding basis hedges). We estimate that Antero's volumes will be 27% hedged in 2027 and 19% hedged in 2028. This policy deviates from Antero's recent hedge-free approach that changed only in 2025. The company's liquids production, which generates substantial revenue for Antero, will remain unhedged.Equity Stake in Midstream: Antero retains exposure to midstream activities that have relatively stable revenue through the 29% interest in AM, its former subsidiary. AM provides a significant share of gathering and water handling services to Antero and also owns stakes in plants that process Antero's gas. AM is accounted for using the equity method of accounting. It pays regular dividends to Antero. Fitch estimates that Antero's netback would be considerably higher if AM were consolidated. Since the majority of Antero's transportation and midstream costs are fixed, its EBITDA margins are vulnerable to a simultaneous decline in gas and NGL prices.Peer AnalysisAntero is among the top U.S. natural gas producers at 3.4 bcfe/d in 3Q25. This is ahead of CNX Resources Corporation at 1.8 bcfe/d, but still less than EQT at 6.9 bcfe/d or Expand Energy at 7.3 bcfe/d pro forma for the merger. Antero has a substantially higher share of NGLs in the production mix than its peers as well as higher average realized prices.However, Antero's unhedged netbacks are similar to its peers because it incurs higher midstream costs. Antero has lower EBITDA margins than peers, fewer hedges and is more sensitive to the price environment.Fitch projects significantly lower midcycle EBITDA leverage for Antero than its peers. At the same time, EQT's and CNX's profiles benefit from consolidated midstream segments that are more stable than upstream operations and can withstand higher leverage.Fitch’s Key Rating-Case Assumptions-- Henry Hub gas price of $3.50/mcf in 2025, $3.5/mcf in 2026, $3.00/mcf in 2027, $2.75 in 2028 and at midcycle;-- West Texas Intermediate (WTI) oil price of $64/barrel (bbl) in 2025, $58/bbl in 2026-2027, $57/bbl in 2028 and at midcycle;-- Pro forma production of 4.2 bcfe/d in 2026 increasing to 4.4 bcfe/d by 2029;-- Capex at $1.1 billion in 2026-2029;-- No dividends;-- No buybacks until debt reduces below 1.0x.RATING SENSITIVITIESFactors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade--Midcycle EBITDA leverage above 1.5x;--Change in stated financial policy that leads to sustained high absolute debt levels;--Weakening in differential trends and the unit cost profile.Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade--Significantly larger EBITDA scale;--Improvement in midcycle netbacks;--Midcycle EBITDA leverage below 1x.Liquidity and Debt StructureAntero should have an adequate liquidity position after the acquisition. The company usually maintains a zero cash balance and relies on its revolver and FCF generation to support liquidity. Fitch estimates Antero should have around $1.15 billion undrawn under its $1.65 billion revolver due 2029 after the transaction if it utilizes it to cover part of the consideration. If the company generates significant FCF in 1Q26, it can use these funds to pay for the acquisition. Fitch also expects positive FCF in 2026-2029.Issuer ProfileAntero is natural gas, NGLs and oil producer. The company's shale upstream operations are based in the Appalachian basin of the U.S. Antero also has a 29% stake in Antero Midstream, the key provider of midstream services to the company.REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. 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For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.Antero Resources Corporation; Long Term Issuer Default Rating; Affirmed; BBB-; Rating Outlook Stable----senior unsecured; Long Term Rating; Affirmed; BBB-Contacts:Primary Rating AnalystSlava Demchenko,Director+1 646 582 3659slava.demchenko@fitchratings.comFitch Ratings, Inc.33 Whitehall StreetNew York, NY 10004Secondary Rating AnalystMark Sadeghian, CFASenior Director+1 312 368 2090mark.sadeghian@fitchratings.comCommittee ChairpersonLucas Aristizabal,Managing Director+1 312 368 3260lucas.aristizabal@fitchratings.comMEDIA RELATIONS: Eleis Brennan, New York, Tel: +1 646 582 3666, Email: eleis.brennan@thefitchgroup.comAdditional information is available on www.fitchratings.comApplicable ModelNumbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).Corporate Monitoring &amp; Forecasting Model (COMFORT Model), v8.2.0 (1)ADDITIONAL DISCLOSURESDodd-Frank Rating Information Disclosure FormSolicitation StatusAdditional Disclosures For Unsolicited Credit RatingsEndorsement StatusEndorsement PolicyALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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Fitch Ratings has affirmed Antero Resources' 'BBB-' rating following its $2.8 billion acquisition of HG Energy II's assets in West Virginia. The acquisition, funded by divesting Ohio Utica assets and new debt, increases Antero's production scale and leverage. Antero's strategic fit with HG's assets and increased hedging are expected to enhance financial stability. The acquisition will temporarily raise debt but is projected to improve EBITDA and reduce costs, with a stable outlook maintained.

Fitch Affirms Antero Resources' 'BBB-' After Acquisition Announcement; Outlook Stable