EXHIBIT 10.2

 

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December 7, 2012

 

Antero Resources Arkoma LLC

Antero Resources Piceance LLC

Antero Resources Pipeline LLC

Antero Resources Appalachian Corporation

1625 17th Street, 3rd Floor,

Denver, Colorado 80202

 

Attention:                                         Glen Warren

President and Chief Financial Officer

 

Re:  Borrowing Base and Aggregate Commitment Decrease

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Fourth Amended and Restated Credit
Agreement dated as of November 4, 2010 (as amended, supplemented or otherwise
modified prior to the date hereof, the “Credit Agreement”), by and among Antero
Resources Arkoma LLC (successor by conversion of Antero Resources Corporation),
a Delaware limited liability company (“Antero”), Antero Resources Piceance LLC
(successor by conversion of Antero Resources Piceance Corporation), a Delaware
limited liability company (“Antero Piceance”), Antero Resources Pipeline LLC
(successor by conversion of Antero Resources Pipeline Corporation), a Delaware
limited liability company (“Antero Pipeline”) and Antero Resources Appalachian
Corporation, a Delaware corporation (“Antero Appalachian”) (Antero, Antero
Piceance, Antero Pipeline and Antero Appalachian are hereinafter individually
referred to as a “Borrower” and collectively as the “Borrowers”), certain
Subsidiaries of the Borrowers, as Guarantors, the lenders from time to time
party thereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as administrative
agent for the Lenders (in such capacity, the “Administrative Agent”). 
Capitalized terms used but not defined herein shall have the meanings assigned
to such terms in the Credit Agreement.  References herein to any Section shall
be to a Section of the Credit Agreement unless otherwise specifically provided.

 

The Borrowers have informed the Administrative Agent and the Lenders that they
(a) intend to sell all of their upstream and pipeline assets in the Piceance
Basin (the “Piceance Assets”) pursuant to the terms and conditions of that
certain Purchase and Sale Agreement, dated as of November 1, 2012, between
Antero Piceance and Antero Pipeline, as sellers, and Ursa Resources Group II
LLC, as buyer (the “Piceance Sale Transaction”) and in accordance with each of
the conditions set forth in Section 7.05(h)(z) and (b) desire to reduce the
Aggregate Commitment from $850,000,000 to $700,000,000 pursuant to Section
2.02.  In anticipation of the Piceance Sale Transaction, we also understand that
as of December 5, 2012, the Borrowers have liquidated and monetized the Hedging
Contracts associated with the Piceance Assets and

 

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more particularly described on Schedule I attached hereto (the “Piceance
Hedges”) in accordance with each of the conditions set forth in Section
7.03(b)(z) (as evidenced by a certificate of a Financial Officer of the
Borrowers certifying to that effect).

 

Based on such information and pursuant to Section 7.03(b)(z) and Section
7.05(h)(z), the Administrative Agent and the Lenders (or at least the required
percentage thereof) hereby notify you that:

 

(a) upon the consummation of the Piceance Sale Transaction and the sale of the
Piceance Assets prior to December 31, 2012 (the date of such consummation and
sale being the “Piceance Sale Effective Date”) in accordance with the conditions
set forth in Section 7.05(z)(h) (as evidenced by a certificate of a Financial
Officer of the Borrowers certifying to that effect), the Borrowing Base shall be
automatically reduced by $225,000,000, and the Borrowing Base as so reduced
shall become effective immediately upon the consummation of the Piceance Sale
Transaction and shall remain at such amount until the earlier of (i) the next
Redetermination of the Borrowing Base and (ii) the date such Borrowing Base is
otherwise adjusted pursuant to the terms of the Credit Agreement or any other
Loan Document; and

 

(b) on the date hereof, the Borrowing Base shall be automatically reduced by
$75,000,000, and the Borrowing Base as so reduced shall become effective
immediately and shall remain at such amount until the earlier of (i) the next
Redetermination of the Borrowing Base and (ii) the date such Borrowing Base is
otherwise adjusted pursuant to the terms of the Credit Agreement or any other
Loan Document.

 

In addition, the Administrative Agent hereby notifies you that pursuant to your
request under Section 2.02, the Aggregate Commitment shall be automatically
reduced to $700,000,000 on the Piceance Sale Effective Date and the Commitment
of each Lender at such time shall be proportionately reduced based on such
Lender’s Applicable Percentage.

 

By its signature below, each Credit Party hereby (a) acknowledges and agrees
that the Borrowing Base shall be reduced in accordance with the terms hereof
upon the consummation of the Piceance Sale Transaction and as a result of the
liquidation and monetization of all of the Piceance Hedges; (b) acknowledges and
agrees that the Aggregate Commitment shall be automatically reduced to
$700,000,000 on the Piceance Sale Effective Date; (c) acknowledges and agrees
that after giving effect to the reduction in the Aggregate Commitment to occur
on the Piceance Sale Effective Date and any concurrent prepayment of the Loans
in accordance with Section 2.10 and Section 2.11, the Aggregate Credit Exposure
will be less than the Aggregate Commitment; (d) acknowledges and agrees that
except as set forth herein, the Credit Agreement and the other Loan Documents
are hereby ratified and confirmed in all respects and shall remain in full force
and effect; (e) ratifies and reaffirms its obligations under, and acknowledges,
renews and extends its continued liability under, the Credit Agreement and each
other Loan Document to which it is a party; (f) ratifies and reaffirms all of
the Liens securing the payment and performance of the Obligations; (g)
represents and warrants to the Administrative Agent and the Lenders that, as of
the date hereof, (h) all of the representations and warranties contained in the
Credit Agreement and each Loan Document to which it is a party are true and
correct in all material respects, except to the extent any such representations
and warranties are expressly limited to an earlier date, in which case, such
representations and warranties shall continue to be true and correct in all
material respects as of such specified earlier date, and (ii) no Default or

 

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Event of Default has occurred and is continuing; and (i) acknowledges and agrees
that this letter agreement shall constitute a Loan Document for all purposes and
in all respects.

 

This letter agreement shall become effective as of the date first written above
when and only when the Administrative Agent shall have received duly executed
counterparts of this letter agreement signed by each Credit Party and the
Lenders (or at least the required percentage thereof).

 

This letter agreement shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New York without regard to conflicts
of law principles thereof.  This letter agreement may be executed in
counterparts with each counterpart constituting an original and all of the
counterparts, once executed, constituting but one original.  Delivery of an
executed counterpart by facsimile or other electronic means shall be effective
as delivery of an original executed counterpart.

 

[Signature Pages Follow]

 

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Please execute a copy of this letter agreement in the spaces provided below to
evidence your acceptance and approval of the terms and conditions set forth
herein and return a fully-executed copy to the attention of the undersigned.

 

 

 

Very truly yours,

 

 

 

JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent and a Lender

 

 

 

 

 

 

By:

/s/ David M. Morris

 

Name:

David M. Morris

 

Title:

Authorized Officer

 

Signature Page

 

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WELLS FARGO BANK, N.A.,

 

as Syndication Agent and a Lender

 

 

 

 

 

 

By:

 

/s/ Suzanne Ridenhour

 

 

Name:

Suzanne Ridenhour

 

 

Title:

Director

 

Signature Page

 

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BANK OF SCOTLAND PLC,

 

as Co-Documentation Agent and a Lender

 

 

 

 

 

By:

 

/s/ Stephen Giacolone

 

 

Name:

Stephen Giacolone

 

 

Title:

Assistant Vice President

 

Signature Page

 

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CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,

 

as Co-Documentation Agent and a Lender

 

 

 

 

 

By:

 

/s/ Mark Roche

 

 

Name:

Mark Roche

 

 

Title:

Managing Director

 

 

 

 

 

 

 

 

 

By:

 

/s/ Sharada Manne

 

 

Name:

Sharada Manne

 

 

Title:

Managing Director

 

Signature Page

 

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DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Co-Documentation Agent and a Lender

 

 

 

 

 

By:

 

/s/ Marcus M. Tarkington

 

 

Name:

Marcus M. Tarkington

 

 

Title:

Director

 

 

 

 

 

 

 

 

 

By:

 

/s/ Michael Getz

 

 

Name:

Michael Getz

 

 

Title:

Vice President

 

Signature Page

 

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UNION BANK, N.A.,

 

as Co-Documentation Agent and a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Lara Sorokolit

 

 

Name:

Lara Sorokolit

 

 

Title:

Vice President

 

Signature Page

 

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BARCLAYS BANK PLC,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Vanessa A. Kurbatskiy

 

 

Name:

Vanessa A. Kurbatskiy

 

 

Title:

Vice President

 

Signature Page

 

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COMERICA BANK,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Katya Evseev

 

 

Name:

Katya Evseev

 

 

Title:

Assistant Vice President

 

Signature Page

 

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Christopher Reo Day

 

 

Name:

Christopher Reo Day

 

 

Title:

Vice President

 

 

 

 

 

 

 

 

 

By:

 

/s/ Michael Spaight

 

 

Name:

Michael Spaight

 

 

Title:

Associate

 

Signature Page

 

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KEY BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Chulley Bogle

 

 

Name:

Chulley Bogle

 

 

Title:

Vice President

 

Signature Page

 

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U.S. BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Daniel K. Hansen

 

 

Name:

Daniel K. Hansen

 

 

Title:

Vice President

 

Signature Page

 

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GUARANTY BANK AND TRUST COMPANY,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Gail J. Nofsinger

 

 

Name:

Gail J. Nofsinger

 

 

Title:

Senior Vice President

 

Signature Page

 

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CITIBANK, N.A.,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Mason McGurrin

 

 

Name:

Mason McGurrin

 

 

Title:

Vice President

 

Signature Page

 

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CAPITAL ONE, NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Peter Shen

 

 

Name:

Peter Shen

 

 

Title:

Vice President

 

Signature Page

 

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TORONTO DOMINION (NEW YORK) LLC,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Vicki Ferguson

 

 

Name:

Vicki Ferguson

 

 

Title:

Authorized Signature

 

Signature Page

 

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BRANCH BANKING AND TRUST COMPANY,

 

as a Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/ Deanna Breland

 

 

Name:

Deanna Breland

 

 

Title:

Senior Vice President

 

Signature Page

 

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AGREED AND ACCEPTED

 

AS OF THE DATE SET FORTH ABOVE:

 

 

 

ANTERO RESOURCES ARKOMA LLC

 

ANTERO RESOURCES PICEANCE LLC

 

ANTERO RESOURCES PIPELINE LLC

 

ANTERO RESOURCES APPALACHIAN CORPORATION

 

 

 

 

 

By:

/s/ Alvyn A. Schopp

 

 

Alvyn A. Schopp

 

 

Treasurer and Vice President, Administration and Accounting for all of the
foregoing Borrowers

 

 

 

 

 

 

 

ANTERO RESOURCES FINANCE CORPORATION

 

 

 

 

 

 

 

By:

/s/ Alyn A. Schopp

 

 

Alvyn A. Schopp

 

 

Treasurer and Vice President, Administration and Accounting

 

 

 

 

 

 

 

ANTERO RESOURCES BLUESTONE LLC

 

 

 

 

 

 

 

By:

/s/ Alvyn A. Schopp

 

 

Alvyn A. Schopp

 

 

Vice President — Accounting & Administration/Treasurer

 

 

Signature Page

 

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Schedule I

 

Piceance Hedges

 

Antero Piceance Hedge
Summary

 

 

 

 

 

 

 

Average

 

 

 

Counterparty

 

Daily

 

Strike

 

2013

 

BNP Paribas

 

20000

 

5.70

 

 

 

BNP Paribas

 

20000

 

5.70

 

 

 

Wells Fargo

 

20000

 

5.21

 

 

 

 

 

 

 

 

 

2014

 

Credit Suisse

 

10000

 

4.920

 

 

 

J.P. Morgan

 

10000

 

6.145

 

 

 

J.P. Morgan

 

10000

 

5.965

 

 

 

J.P. Morgan

 

10000

 

6.160

 

 

 

Wells Fargo

 

10000

 

6.000

 

 

 

 

 

 

 

 

 

2015

 

BNP Paribas

 

10000

 

5.47

 

 

 

Credit Suisse

 

20000

 

5.07

 

 

 

J.P. Morgan

 

10000

 

5.52

 

 

 

J.P. Morgan

 

10000

 

5.10

 

 

 

Wells Fargo

 

10000

 

5.52

 

 

 

 

 

 

 

 

 

2016

 

BNP Paribas

 

20000

 

5.20

 

 

 

J.P. Morgan

 

10000

 

4.23

 

 

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