By Michael Erman and Olivia Oran
NEW YORK May 6 Antero Resources, an oil and
natural gas company controlled by Warburg Pincus LLC, is
preparing for an initial public offering that could value it at
as much as $10 billion, three people familiar with the matter
said on Monday.
The Denver, Colorado-based company has hired Barclays Plc
, JP Morgan Chase & Co and Citigroup Inc
to lead the deal, two of the people said on condition of
anonymity because the plans are private. The company could come
to the stock market later this year, they added.
Barclays, Citigroup and Warburg declined to comment.
JPMorgan could not be reached for comment.
Antero reported adjusted earnings before interest, tax,
depreciation and amortization of $434.3 million in 2012, up from
$340.8 million in 2011.
The company has around 311,000 acres in the Marcellus Shale
formation in West Virginia and Pennsylvania as well as 92,000
acres in Ohio's Utica Shale.
Antero believes that most of their acreage in the Marcellus
holds natural gas liquids, which tend to be worth more than
The company said its Utica acreage sits in a region that it
believes holds natural gas liquids. The Utica shale is an
emerging region that has attracted the interest of big oil
companies like Exxon Mobil Corp and Chevron Corp.
Warburg and other investors including energy-dedicated
private equity firm Yorktown Energy Partners and Lehman Brothers
Merchant Banking Group initially invested $260 million in Antero
in 2003. Four years later, the consortium led a $1 billion
equity investment in the company.