November 14, 2012 / 5:35 PM / in 5 years

TEXT-S&P rates Antero Resources Finance's notes 'B+'

Nov 14 - Standard & Poor's Ratings Services today assigned issue-level and
recovery ratings to Antero Resources Finance Corp.'s $300 million senior
unsecured notes due 2020. The assigned issue rating on the notes is 'B+' (the
same as the corporate credit rating). The recovery rating on this debt is '4',
indicating our expectation of average (30% to 50%) recovery in the event of
default. The issue and recovery ratings are based on the rating of exploration
and production company Antero Resources LLC (B+/Stable/--), which guarantees the
proposed notes on a senior unsecured basis.

The company intends to use proceeds to repay a portion of the outstanding 
borrowings under its senior secured revolving credit facility and for general 
corporate purposes. A key assumption in our analysis is that we expect the 
company's commitment on its revolver to decline to approximately $700 million 
following the close of the sale of its Piceance assets.

The ratings on Denver-based Antero Resources LLC (Antero) reflect our 
assessment of the company's "weak" business risk and "aggressive" financial 
risk. The ratings on Antero incorporate the company's participation in the 
competitive and highly cyclical oil and gas industry, the high percentage of 
proved undeveloped (PUD) reserves, significant costs associated with the 
company's development of its proved reserve base, and its high concentration 
of natural gas reserves. Our ratings also reflect the company's good cash 
operating costs, solid reserve replacement, and Antero's favorable hedges.

     -- Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18, 
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 

Temporary telephone contact numbers: Stephen Scovotti (347-839-0615); Marc 
Bromberg (347-573-0897)

Antero Resources LLC
 Corporate credit rating             B+/Stable/--

New Ratings
 $300 mil sr unsecrd nts due 2020    B+
  Recovery rating                    4

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at Use the Ratings search box located in the left 
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