Antero Midstream has announced that it has entered into an agreement to acquire Marcellus Shale gas gathering and compression assets from Crestwood Equity Partners LP (CEQP) for US$205 million.

Assets from CEQP include 72 miles of dry gas gathering pipelines and nine compressor stations with approximately 700 MMcf/d of compression capacity from Antero Resources and other third parties. The deal includes a 0% increase in Free Cash Flow after Dividends through 2026, construction of 425 undeveloped drilling locations and 120,000 gross dedicated acres from Antero Resources, 6x the next twelve months' estimated Adjusted EBITDA and adjusted transaction multiple of 4.5x next twelve months estimated Adjusted EBITDA.

The deal is due to close in Q4 2022. Antero Midstream uses Adjusted EBITDA to assess the financial performance of Antero Midstream's assets, its operating performance and return on capital and the viability of acquisitions and other capital expenditure projects.