ANTERO RESOURCES CORPORATION (NYSE:AR) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure.
On March 5, 2019, Antero Midstream GP LP (AMGP) and Antero Midstream Partners LP (Antero Midstream) announced the preliminary results of the elections made by holders of Antero Midstreams common units other than Antero Resources Corporation (Antero Resources) regarding their preference as to the form of consideration to be received in connection with the previously announced simplification transaction between AMGP, Antero Midstream and certain of their affiliates. Under the terms of the Simplification Agreement, dated as of October 9, 2018, by and between AMGP, Antero Midstream and certain of their affiliates (the Simplification Agreement), to the extent the amount of cash that holders of Antero Midstreams common units other than Antero Resources (collectively, the AM public unitholders) would have received had all AM public unitholders elected to receive, in exchange for each Antero Midstream common unit held, $3.415 in cash and 1.6350 shares of common stock of Antero Midstream Corporation, the entity into which AMGP will convert in connection with the simplification transaction (New AM), exceeded the amount of cash they actually elected to receive, (i) Antero Resources could elect to increase the amount of cash it would receive as consideration and (ii) the number of shares of New AM common stock it will receive would be reduced accordingly. Based on the preliminary results announced by AMGP and Antero Midstream, there will be no excess available cash. As such, Antero Resources will be entitled to receive, in exchange for each unit that Antero Resources holds, 1.6023 shares of New AM common stock and $3.00 in cash (or approximately $297 million in aggregate cash consideration).
The information disclosed in this Item 7.01 is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the Securities Act), or the Exchange Act except as expressly set forth by specific reference in such filing.
Item 8.01 Other Events
To the extent required by law, the information in Item 7.01 of this Form 8-K is incorporated into this Item 8.01.
NO OFFER OR SOLICITATION
This current report includes a discussion of the previously announced transaction between Antero Midstream and AMGP and certain of their affiliates (the Transaction). This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, to the Transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this document in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of Securities Act.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the Transaction, AMGP has filed with the U.S. Securities and Exchange Commission (the SEC) a registration statement on Form S-4, that includes a joint proxy statement of Antero Midstream and AMGP and a prospectus of AMGP. The transaction will be submitted to Antero Midstreams unitholders and AMGPs shareholders for their consideration. Antero Midstream and AMGP may also file other documents with the SEC regarding the transaction. The registration statement on Form S-4 became effective on January 30, 2019, and the definitive joint proxy statement/prospectus is being delivered to Antero Midstream unitholders and AMGP shareholders of record as of January 11, 2019. This document is not a substitute for the registration statement and joint proxy statement/prospectus that has been filed with the SEC or any other documents that AMGP or Antero Midstream may file with the SEC or send to shareholders of AMGP or unitholders of Antero Midstream in connection with the transaction. INVESTORS AND SECURITY HOLDERS OF ANTERO MIDSTREAM AND AMGP ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE TRANSACTION AND ALL OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION AND RELATED MATTERS.
Investors and security holders are able to obtain free copies of the registration statement and the joint proxy statement/prospectus and all other documents filed or that will be filed with the SEC by AMGP or Antero Midstream through the website maintained by the SEC at http://www.sec.gov. Copies of documents filed with the SEC by Antero Midstream will be made available free of charge on Antero Midstreams website at http://investors.anteromidstream.com/investor-relations/AM, under the heading SEC Filings, or by directing a request to Investor Relations, Antero Midstream Partners LP, 1615 Wynkoop Street, Denver, Colorado 80202, Tel. No. (303) 357-7310. Copies of documents filed with the SEC by AMGP will be made available free of charge on AMGPs website at http://investors.anteromidstreamgp.com/Investor-Relations/AMGP or by directing a request to Investor Relations, Antero Midstream GP LP, 1615 Wynkoop Street, Denver, Colorado 80202, Tel. No. (303) 357-7310.
About ANTERO RESOURCES CORPORATION (NYSE:AR)
Antero Resources Corporation is an oil and natural gas company. The Company is engaged in the exploration, development and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. The Company’s segments include the exploration, development and production of natural gas, NGLs, and oil; gathering and compression; water handling and treatment, and marketing of excess firm transportation capacity. The Company’s exploration and development activities are supported by the natural gas gathering and compression assets of its subsidiary, Antero Midstream Partners LP (Antero Midstream), as well as by third-party gathering, compression, processing and transportation arrangements. The Company owns over two independent fresh water distribution systems that distribute fresh water from the Ohio River and several regional water sources for well completion operations in the Marcellus and Utica Shales.