Antero has announced that their credit limit has been increase from $1 Billion to $4 Billion. With an Antero Credit Line Increase to $4 Billion, Antero now has more flexibility in the Marcellus Shale to lease mineral rights and drill more properties. According to market watch, there are 26 banks who are funding Antero’s credit line.
Antero Credit Worthiness
The credit increase for Antero gives them more options as they pursue drilling and development in the Marcellus shale. They currently have $1.2 Billion of their credit used and another $237 million of outstanding credit commitments. This means they now have around $2.5 billion of credit available to pursue these activities. This will allow Antero to aggressively drill and complete properties which should be a net positive for mineral owners.
Another important factor to consider is that the banks have all agreed to give Antero more cash. All of these banks believe that Antero is a safe bet to lend funds to, which shows that Antero is likely a good credit risk and someone you can feel comfortable doing business with. These banks were all comfortable loaning Antero more money even as oil prices are falling. This shows they believe in the long term outlook for Antero.
Leasing with Antero
If you’re considering leasing your property with Antero, their increased debt availability is positive news. This means that Antero can get more aggressive in acquiring more acreage and gives them the ability to quickly pick up new positions. If you have been approached by Antero to lease, it’s helpful to know that they are in a good financial situation to complete the lease. While you want to get the best possible lease terms when you lease, you can at least feel comfortable that you are dealing with a company who has the intent and ability to drill.
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- Mineral Rights Value
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