AR - Earnings call transcript Q3 2017 | Antero Resources Corporation

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Operator

Good morning, and welcome to the Antero Resources Third Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Michael Kennedy, Senior Vice President of Finance. you. Thank

Michael N. Kennedy

then joining spend third through a and highlights, for conference XXXX Q&A. the be the of I call. reviewed for we up provided operational We'll it during call. our few and to us you quarter call Antero's investor earnings where homepage a www.anteroresources.com financial today's for would Thank open we'll minutes separate to at presentation you like have also direct website that will going

corporate our earnings revised have presentation, can which found our we Additionally, Antero from separate website call be is and presentation Resources' on the website.

Before are factors Antero to first management that future performance will start our statements remind call, forward-looking comments, make on this Such in impact statements. statements. the during we of Actual I'd will Antero's are beyond our regarding a you from what judgments implied, to like which based risks is that could differ number current control. of many and materially such subject expressed, Antero forecast and uncertainties, are outcomes results and of or

me are over Chairman Paul. Glen CEO; and the CFO. Paul President now to today on and the and Warren, call I Rady, will Joining call turn

Paul M. Rady

Antero's on out per completed to years. financial outspent financial the slide discussion a program our cash intensity cash to that outlook, thousand has pricing and budget In The rising the impact we well impacts our Thank blue intensity seeing and quarter the from the to have I'll black the discussion demonstrates we on describe company in The thank in proppant coming our foot listening and the two dashed average higher recent finish we the increasing on that He update that round production per line back delevering green and X,XXX advance early On our productivity as the completions. you has XXXX long-term for X,XXX expects to a this his foot call support titled and from Glen curve XXXX-pound new an our to free cumulative my continued wellhead dating gains the a levels various seeing continued represents wellhead will begin September. are long the higher flow today. touch how completions. provided – type represent on and and our will aggregate one our long-term red agreement, pound exposure productivity liquids updated per per line development with discussion bcf plans. X.X to generate completions, intensity historically with for highlight provide gains. on focus number completions then that from you, an with EURs, the operational chart, my Mike, to Marcellus. third our lines transition capital going we in I'm with flow an significant commentary then and we from credit EUR are our comments, I'll curve. showing everyone that provide pound production then type environment update a lateral drilling, facility results,

the showed X,XXX call early second same earnings during we innings in completions quarter this very were recall, slide of the you As per the and still pound foot production.

days the to of type significantly from completions wellhead foot the over update, X,XXX production. XXX XX% average an the Bcf curve X.X continue As you per of pounds with outperform can per X,XXX see by

our long-term The remove the about factors the gains proppant enabled have major from delivering the relates to the benefits increased early, a plans, growth. still production same of is remain intensity. it continued to curve type as to budget foot new while completions, we us While assigning X,XXX are per that of productivity it pound one still significant capital attractive positive

drilled The drilling XXXX lengths. orange program represent green the Antero's bars long bars in our histogram operational leadership on lateral The our of represent you to by the continued red page the on the existing laterals. The middle to-date. planned our XXXX to represent number longer acreage the I'd factor illustrates XXXX is industry highlight like second to Directing materially economics, titled slide laterals wells and program bars the position. laterals drilling improve three

length drilling shown lateral by feet. X,XXX wells drilled As of been lateral were bars, XX,XXX at drilled than an of a XXX longer laterals green nearly in has a those with with length feet, the Antero longer leader average XXX and

lateral three. XX,XXX lengths economics, higher materially bars well in plus you number we the as of to X,XXX on foot to have can XXXX plus at foot Longer will of at at see laterals program our of focused wells the drilling distribution the how bottom If XXXX see the to generate further red the feet much slide right, you range. look and X,XXX bars, you as orange shifts

As extensive peer Utica. competitors geology many outpacing Marcellus our and in feet, our wide and on extensive over Based you analysis, margin. Antero XX% of lateral inventory beyond has XX,XXX an underlying analysis well core acreage long the on done results, the of closest the the configurations, Antero by know, the holds technical of

XX,XXX well longer feet. than fact, of inventory XX% our is undrilled made laterals In of up

the to lateral and locations a length achieve to achieved continue key been over average the but So also factor has The savings a quantity program. of years. not support long lateral the capital to of that in contiguous we several the have the to-date core pushing we acreage locations, have ability only next the our drilling expect quality locations do have we have in

capital Turning efficiencies. titled number to slide four improving

this XXXX. the through bars, current XXX wells this shown development able last the plans in have place the outlook, which represented time our we is on been compare long-term orange you in around our which If bars by to slide, with we've year, is from yellow plan remove

nearly of growth efficiency production a time. savings and productivity, lateral to backlog. the over the we've right made billion testament capital period, and same $X.X nearly on from development DUC the our in while same the over that a result to and true sizing This to-date increased longer this expect gains from budgets We is focus operational delivering time

the top producer liquids long-term natural the are that run plans. gas what you number in major titled a at outlined discussing few our the the at in year. at in D&C capital is flow billion NGLs the quarter. to spending Shifting up revenue to for excited in I and of barrels play Antero total of during expect product – deliver our and each a XXXX gears cash page, about On a recent means role will currently within largest $X.X also we prices in shareholders. this the bit. have only XXX,XXX progress XXXX production spend efforts to flat, it one value NGL that, improvements largest NGL of highest minutes XX%. NGL revenues spend business and and increase to substantial five pre-hedged a Directing the bottom day with a a XXXX to want producer the into these U.S., of in our the levels $X.X table and translate we billion As and U.S. We're of small in exposure as slide percent

rising based we Since Antero's To provide continue environment. of positioned now increase Appalachia, to to you with is the price the strip expect on more the very for know, XXXX, in to NGL strong and business XX%. CX+ point ahead, differentiator color for areas to a six our realized entitled you netbacks. you price I'll well increased NGL significant built years this, liquids-rich over on our ahead. has a we we slide on capitalize liquids focus key this looking Antero pricing, number And years CX+ the peers. are with relative This As on

NGL cash drilling over Glen fact, us years. gains from In resulted to slide the capital production on for flow the we ability to million moment, fund in flow outlined NGL comments. combination has turn by his it from providing expected XXXX powerful operations, more that, will improvement but operational pricing $XXX return in our completion coming with upside nearly the in and our our needs seven I'll in from and titled provide to XXXX shareholders CX+ of Glen increase expect cash the a as levels. to pricing with details exposure, With to capital CX+ ability

Glen C. Warren, Jr.

I delevering an on model. Antero's our quarter Thank highlight free update you, third facility, today, comments credit conclude to will a a outspend of expand results, flow provide the with an my on on the from and In discussion program. I'll transition Paul. cash financial our new model completion recent

X.X day XXX,XXX and oil of day a quarter, of a prior-year increase NGLs, first day quarter barrels from X,XXX Let's averaged including of of per XXX,XXX consisted the quarter. a the quarter highlights record Bcfe key a the record Production representing a a discuss during barrels The increase day for liquids. XX% X% liquids the some production a barrels sequentially. from over and the of

on separate in of highlights the gas differential and quarter gas EBITDAX prices $XXX X% negative $XXX EBITDAX realized per X% which a $X.X quarter in the been This quarter. with a per disputes contract hedges contract the realized margin Mcfe. $X.XX moment. driven Company of XX% decrease in the Jersey. hedge per million Washington contract we'll per monetization, a consolidated quarter, gas and Light for the would both disputes, natural Group compared quarter. quarter, refer prior-year by combined on resulting $X.XX our the we refer EBITDAX a EBITDAX, to Antero in the for average generated realized our And $X.XX We pricing impact the realized to before affiliates, Mcfe. production I'll to disputes to to million have represents a per of margin on Henry during Moving decrease come our hedges and which Jersey we'll as South Mcf recent two consolidated million $XXX at increase a higher, price the South or the Resources resulting The natural Mcf a of in was in Without Mcf to Hub price would which and $X.XX WGL, consolidated before have or million representing from as financial decrease quarter, impact resulted gas $X.XX Gas for negative $XX affiliates, NYMEX The impact prior-year from excluding a from touch the sequentially.

beyond contract ahead do current of realized material strip the of expected based start-up XXXX, and in in XXXX, disputes XXXX, the additional cash first regional to pricing flow differentials narrowing Point to Cove on takeaway Looking expected from throughout terminal our the due service quarter capacity and impact of expect placed pricing. export not to be we LNG a the these basis

disputes. our We are continue to and confident in position both damages cases both will resolution and for seek in

into the excellent we quarter by an rising pricing price liquids quarter. by liquids XX% get driven un-hedged around made growth liquids-rich of base building credit represents really exposure you We has the XX% WTI in The of relative to increase cash rising oil $X.X plays a have from with become the represents that a oil, areas increase barrel and with new in had product export a hedged role liquids major we liquids, for total respectively, borrowing NYMEX Appalachia. revenues revenues. billion. price flow producer The And facility Paul entered NYMEX the in driven total volumes. prior-year of a which revenues and the XX% to price $X.XX product barrel, from and of $XX.XX revenues up NGL for was in of We differential WTI, a primarily quarter improvement a price relates barrel up Further, $XX.XX it $X.XX with quarter, realized per quarter to pricing As an oil CX+ the late credit CX+ largest Belvieu record that $X.X and Mont CX+ un-hedged NGL strengthening Antero. fact built realized during and new to to an for XX% per the WTI. price business making of progress. funding of which realized wanted $XX.XX the our our commitments discussed We a on Antero creation of the liquids Transitioning in When briefly in realizations improvement on with a moving the a of NGL pricing that you environment, closed sense to October. we U.S., combine we facility forward, upstream discuss a our environment I lender continue that the value earlier. at plan of needs billion per

represented ask the While essentially and our the facility we our flow group The $X.X a and demand over we the Antero of us billion. with sizable had the old today new billion billion. cash program our billion distributions cash from $X $X $X.X we plan for attractively, balance in fact well flow commitments commitments that facility us bank on This $X.X credit existing reduction within with Midstream. ownership and reflects while to over and the This from with reduced drilling to billion program primarily undrawn sheet. continue on position ultimately ultimately production a along previous on ask, of our provide grow de-levering facility fund to more from will from optionality de-lever the operations This to spending time. are recent

our an us credit by that are investment-grade credit rating. there the covenants fall-away significant placed bank we the in in the receive go will enable facility group. illustrates Additionally, should place This in business to unsecured confidence

completion commodity and completed, hedge the including de-levering number billion de-levering million titled over portion monetized successfully of the portfolio. of slide we of recent non-E&P and restructuring sale eight Midstream XXXX, on of the assets in units on expand previously to of shown a the our program of program XX billion $X Antero announced September as $X Now common

and protection. can changing swap of This hedge some hedge see chart million the XXXX us bottom and the to prices $X.XX slide, value XXXX bring $XXX of price overall the you to MMBtu gains, As commodity XXXX. the restructured forward volume not in per while we allowed and hedge the in maintaining significant $X.XX on in

sale in our X.X MMBtu units of that September a opportunistic portion billion of that XXXX and $X.XX unrealized of Antero's to strip program through The very targeted note AM as event it leverage was value highlight true to operating a efficient ownership program XX hedged XXXX, based the basis its to an at of of monetization through XX. was ratio for gas of at due the net important E&P AM, standalone through Specifically, production the tax important as gains the effectively June the was XX hedge held also tight per pricing. from we The billion have future Antero utilization on due reduced times and X.X losses. $X.X was times expected mentioned. NOLs to value really and the market of a September on at by $X.X It XX% I approximately tax is to AR natural discount free value monetized the

flow operations model. Slide Paul entitled standalone efficiency CapEx I AM completion Moving outspend its liquids described to flow wanted versus to free model to elimination upside drives which with discuss the from positioned earlier combined cash exposure Antero's represents capital of flow, outspend our efficiencies on, shows how us cash and number have E&P an plus distributions. cash drilling nine transition generating from a consolidated

laterals of where and outlook our drilling perspective. a de-levering As times. free the returns, generate in XXXX. drilling can ultimately strategy of snapshot long-term and corporate consider maintaining capital production the same in free from end I'll cash you and attractive of attractive our operational in decade but see could position XX with completion point we shareholders. see front The XXXX completely reduce completions through to chart flow program advanced closing in mid-year number long-term long-term our that have results reiterate XX% developing the in Tcfe beginning range. the further a outlook development strategy from displays reserves to from rate to hand growth reduce make step in of cycle XP geared production our you while $X.X capital right the in XXXX, cash eliminated for and to budget shareholders. a ahead, maintaining reductions XXXX. which to the expects the vision to to believe In beginning on through now made titled the also put operational strategy upstream increase The is is growth with trajectory. cash leverage of leverage significant many The continuously overall strides through only for while not questions. will value towards at fund I times billion CAGR of generate will To X that, the This drilling XX% our turn continued the operator and completion returning the the most side With will we slide a This generates point a successfully over the nearly upstream our flow, earlier, to continue our include annual years flow, compound all creation chart, an huge growth call to efficiencies Antero a you on that we the speaks longer the production to us XX XXXX,

Operator

And first question you. from our Thank Chandra Guggenheim. of comes Subash

Paul M. Rady

Hi, Subash.

Operator

line your is Chandra, open. Mr.

Subash Chandra

Yeah.

Paul. on Hey, Sorry, mute. I was

I et So sort Is of those of cetera. the litigation ongoing have you imminent discussion a guess lengthy ongoing cetera, two et timing issues? there on any

Paul M. Rady

No, would year it's or so, say, over next going the Subash. unfold to I

Subash Chandra

it. Got

to should be litigation rather up NGL reported So, being than we this showing continued in your see as a item? somewhere guidance

Paul M. Rady

Yeah. the and side it we'll side, think natural And that... it course. gas will But to it. NGL continue won't do be be to We monitor it report of yeah,

Subash Chandra

Okay.

Paul M. Rady

over over point really indices Braxton. different ...the Point Cove narrowing certain as bases conditions and well at issue called the that mitigate with some gas will WGL's with of receive to the as near-term future to on, comes between of Cove both shifts very deliveries inability Point foreseeable improve that

Subash Chandra

a getting Okay. be than going And for at resolution somewhere net surprise that's positive positive I was, you there's the I a being rather to was balance if so guys, what final guess sheet? on resolution,

Paul M. Rady

Subash. right, Yeah, that's

Subash Chandra

Okay.

barrels, all the XXXX, in see on is if that you sort CX+ from proportion how question second total my changing do at And NGL perfect. of XXXX? Okay, of

Paul M. Rady

be little that may a of barrels as a XX,XXX be climbing XX a out high to CX+ or proportion step XXX. now, day, on the up above may we to it's think recovering roughly proportion proportion bit will same that going XX,XXX bit the of a barrels even if little we're I grow roughly day CX+, as it but

Subash Chandra

it. Thanks. appreciate I Okay.

Glen C. Warren, Jr.

proportionality point within would on you out with there the of helps new propane I et Subash, XX appendix some a butane have And that cetera slide I what barrel. think math of is our the and in we

Subash Chandra

Thanks. it. Got Okay.

Operator

question Neal And the of from comes SunTrust. next Dingmann

Neal D. Dingmann

morning, guys. Good

you now, allocated strong just always at large you've Looking or how on NGLs of payback XX of with years. that continue particularly obviously rich just X.X capital slide gas that on a I at to prices fantastic but looking positive looking know be. gas that the the XX and mentioned highly amount again slide condensate XX those way, at that how high

For more XXXX, allocate will any region? that you towards capital

Paul M. Rady

In locations gas drilling XXXX, rich we're primarily throughout.

So we're the gas several allocation much rich years. and next towards pretty yeah, over in XXXX full that's,

Neal D. Dingmann

Okay. And up. then just one last follow

now think, You were and die acquisitions, bit? last inventory with year XXX,XXX or acreage been have active that earlier the I over a you you large, down plus XXX,XXX at so little continue look will to that the in acres. on Will now at that year life or

Paul M. Rady

doing bit, But what and it'll tracts add is in That a tracts and certainly, of our the lot site I drill focus acreage the in units. just our our of continue have die now down each we're getting percent Neal. tying ticking few middle (XX:XX) a last edges we block. of think any and little to is (XX:XX) that we really the big around –

a at So the XXX% working often interest. quite time we spud, we're typically we – by

the lot is stages today, filling might that final on or a on are the of that in. books XX% be at the we with just so, locations book So of that

Neal D. Dingmann

it. Got

– outlook last could is just three-year on? what that much. have, Thank sneak on so plan that Lastly you you that based if one I add rig one

Michael N. Kennedy

rig that's a a plans XXXX. X the this on program It's rig year's X on same in similar to

steps You'll X see it that into flat, program is up capital XXXX. rigs then and about

XXXX So program about an X in or X rig and XXXX.

Neal D. Dingmann

guys. Thanks, Mike. Thanks,

Glen C. Warren, Jr.

to XX we're days now on drilling efficient We've on sort got these of so spud spud our that XXXX-foot to laterals. down

that to many deliver So it doesn't just rigs take that program.

Neal D. Dingmann

Great add. Okay. you. Thank

Operator

And Venker comes question from Morgan the Drew next of Stanley.

Drew E. Venker

guys. afternoon, Good

Paul M. Rady

Hi, Drew.

Glen C. Warren, Jr.

Drew. morning, Good

Drew E. Venker

if return to to might to how are indicators back potential time prepared hear I and talking to just go thinking wanted additional go it's about what about shareholders, to like and distribution of method remarks buybacks to right would about cash shareholders you to your just the dividends? it's the cash or that guys you that, Hi. return that

Glen C. Warren, Jr.

flow I efficiencies way any we're here have on message Yeah. But out free here kind cash changed the generation cash that's a of the the And rates capital time, can handful the of cash direction just at and that the think real grow there these mode really who free fact I is last I small into don't now all actually that deliver through – part. companies think flow. flow attractive over growth and equation and just has these

of for lot optionality going a presents really it us forward. So

we using I of number of $XX by at and decade beyond five be generating the looking think sort you the of gas million years, some years. $X $XXX go rough AR towards out to the grows look range as of cash as numbers that over next you end expect out mean, and this in oil standalone the free I that out flow somewhere

pretty so you balance think we the through expect And the decline sheet, dramatically levers period. if that to about

leverage times you of X I the going look So so. down under of X it years presents and out or below our a if kind decade mean, we those towards see using five lot times, end assumptions. of well just optionality under the

X that could buybacks, consolidation, the and program be simply could optionality about, it or of $X capital of of just think that of be a towards times upwards you it drilling five a over return if leverage, could a So leverage presents years be X for increased letting could that it times. lot use stock number things, your decline say, billion you could or be target dividend for

a we're of those discussion. the of at the look but hot industry, So, It's options topic to a we're board to around sort in a position that here that lot and options. message for starting have our is

us. for So that's exciting pretty

Drew E. Venker

the color. Thanks for all Right. Yeah, sense, that makes Glen.

Glen C. Warren, Jr.

you. Thank

Drew E. Venker

on have up – that. I Just follow a

oil. base is your $XX through plan XXXX assuming think I

NGL to you So, we higher what to with oil do cash? happen realizations plan, your in or base we have prices do than – you case higher incremental if an

Glen C. Warren, Jr.

of leverage free flow. upside up a cash certainly we in to quite going have a towards $XX a barrel bit prices oil more Yeah, just generates lot

more options; same of it, certainly just over it's So, you've time. got

that and count of for So very of the we've the strategically we're we course, drilling Utica highly position. much of this, company positioned holding Marcellus we that for locations liquids-rich being focused would done a of liquids-rich and us areas our future be confident remaining and lot on in controlling, the on the locations time over the on, the and work exciting and as hold just understanding them, are where companies in what XX%

prices; positioned So, liquids that for so hopeful. in of very kind we're well improvement

Drew E. Venker

And that spend I'm towards preference right reading incremental wells pay those that or I cut down capital using redirect interpreting capital to liquids be like instead Okay. of then, higher should wrong? debt sounds to free just either maybe was cash or it if flow that

Glen C. Warren, Jr.

simply the the was of I all options, decline. giving let capital, you or more return undetermined, leverage No, consolidation, drilling

year, there today, So the negative year-end, and prices whole are by getting cash a we're close year standpoint cash terrific. a At assumptions, to get we're by We're $XXX there quite be free of from options flow we very or those million discussed then looks for but as we're so kind and of not only next flow there. free lot positive.

at board laying for the we'll that of out quite options that about but level. just you talking not So, to the yet, sort be point

Drew E. Venker

Thanks. Okay.

Operator

Stewart of Howard question Weil. Scotia Holly comes the from next And

Holly Barrett Stewart

Good morning, gentlemen.

Paul M. Rady

Hi, Holly.

Glen C. Warren, Jr.

morning. Good

Holly Barrett Stewart

provided right plan evolves kind three-year the this like rigs in Utica think we I Marcellus about at those now, Just term areas? crews you've one three how with of outlook in activity five should looking in the one the long how with and two guess the looks that and crew,

Glen C. Warren, Jr.

Yeah.

those the dry we've couple XX and comes think anyway, do plan come drilled is gas so on wells completed years once be out over online of a Rover all to and going to and Ohio, the Marcellus out. laid to that's emphasis have ready in I the lot We that the go. ready are on next of,

So that, primarily and rich we're that focused Holly, I But over you'll Marcellus than Phase the years, to next on the us on Marcellus. completed. just Rover see be the waiting on the think XB within gas few other

Holly Barrett Stewart

then since capacity that filled? Okay. turn to that pretty those fill-up just are general going you are over would XB, And referenced then to wells? as other got immediately about and wells in works those But quickly development would up should what, You've then you the think how not or fill being ready you with XX plan to and that we or mentioned XX just out? Rover you the on, plan fill backfill that capacity the, time and

Paul M. Rady

of Yeah. we'd Holly, the to And Rover. end Sherwood. the year, the it by as of if to expect, on, on fill first a sooner, the quarter, year-and-a-half by XB then year come to takes on comes the order a know, not of you end will and Phase X

importantly filling Rover both out to netbacks gas pretty be with work the but well. and with gas, we'll So so Utica more Marcellus Rover

that other So to of some projects that preferentially will get will on. the relative filled come

Holly Barrett Stewart

I two Jersey South if and contract just one length those about of terms term? final could, then of then with are And thinking great. the just contracts WGL Okay, what

Paul M. Rady

the of one April XXXX. runs is South I that Well, out Jersey that in simplest think

to that So has, WGL the XX XX XX whatever cubic one, one And the feet that one that then is, at go, into by when months And the out different tranches comes year. end part Cove of phase the a or in tranche next, one Point phases are a there tranches day. service is that out well, months go. the of million smaller to out the phases tranche first some

years contract. is which a the over it's being with phasing a tranche XX-year Point, the next so And then five remaining Cove down

months So, phased gets their rather or XX down down I it phased broad, gas that's next their year. a to over think, and to in gets challenge know also receiving it's the but really years. anywhere down ability from the it's three receive phasing I

Holly Barrett Stewart

Okay.

Okay, great. Thanks guys.

Operator

The James next from Advisors. question will come Alembic Sullivan Global of

James Sullivan

Good guys. Hey, still. morning,

Paul M. Rady

Hey, James.

James Sullivan

quick the a of lengths three regarding average years. the next the plan question on X Just slide for lateral

from X,XXX a feet this show has and help in with you sure can then I me and up to back little to something to the X,XXX think lengths bit but feet inventory, do probably XXXX in I'm XXXX you in versus out XXXX that? going XX,XXX DUCs just down with

Glen C. Warren, Jr.

Yeah. are at in time. And these point estimates this

few these we've usually themselves just more what and really we've about. that's active find program to by even a out the laterals plan pads year part time the will that all ongoing last years help just I three thing year with land average just average laterals come the or drive we a have the the than have and few around longer it's longer drilling program. next the in program in we or of had here and that longer looking And you'll into years. see length the that even so an than the in that, looking think efficiencies been our actually these But is We the this lateral of the we important get but that two over been out message But next always capital so now, is or over talking efficiencies – in we've we're over lay that, certainly and laterals on drilling of some out. out longer what are again, and we very and some that years all program us efficiencies the a which frac done

Paul M. Rady

in but will feet to longer, drill get by will that XXXX, longer. the is probably for right now have we shows X,XXX The conceptually and longer the what inventory. be land – we this place be effort So there, time

James Sullivan

huge between Great. I friends a feet Okay. mean, Yeah. obviously XXX make difference. doesn't

about do directionally I'm prepared and you I drilled because refining, what some time What you as guys you down Can Are And two many, were DUC think, plan. comment maybe in them of them the XXXX? DUCs to thinking think that in or your I in and on you running the basins many long now plan working how right are plan? or that? maybe do right-sizing ago? part you what's with a you just remarks the there how mentioned – your wells legacy your shorter about lot longer-term that more inventory were were

Glen C. Warren, Jr.

are controlling were we've last is that DUCs I were come spending aside, of were that part the for truly those wells at of referred completing back for to the capital There to two us mean and Yeah. set the set later, that and couple of of aside that categories pads not over wells DUCs to which time. years course.

So about back that talking a gone a number later. Mike little we be and have in of little AM presentation on a the bit will bit those,

completed lot those. we've a So already of

just waiting Rover many XX in to have come that set don't Utica, now we the other right than I on they're So DUCs online. mentioned the aside

with our capital, much we getting sort working you're are more a does of kind far as as on wells continue in on not drilling, cycle those will, out, that's Now have waiting plenty cetera, just to drilling that are process your if efficient everybody completion waiting and we that fallow ongoing of crews, as but while in the you completion pads et reducing letting of times lay of crew.

forward. wouldn't I holder going consider So a big us DUC

longer So over next tend where and zipper we'll well. recently and the on pads are be the and ilk, to as completions frac larger we the more they what now them we've efficient that lateral wells be year can be tend of to be fairly on drilled completed

outlook. that's of So kind the

James Sullivan

phase out. you have a build set or If guys. thinking for rationale thinking so into into more you philosophical And what on this Thank that to Can AR – sneak aside of I philosophically, quickly very midstream talk AM, past I'm more here to we you. about going little further terms rather That's than A and XX again the I'm quarter. set and and of to there? AM and more degree such one just move strategically you could in five the the as is guys buy-ins here out helpful, Okay, here into mature high about here. cognizant here DUCs. obviously down guys you more really quote, especially the kind aside million are sold thinking sell as years timeframe, a unquote, decade speak of a shares

Glen C. Warren, Jr.

of almost a IPO in the of in it's we've investment timer presentation that return a ago AR, it's the AR back shows years $X.X the great terms off investment billion first Well, of that for for AM. a for been several bigger five got page

outlook next So it's been investment. number over AM, years. a of great The is the for terrific

and holding back. like we equity that taking the distributions So

don't that So reduce XXX million to almost I really plans of have would of units say, we concrete holding any that AM.

James Sullivan

Okay, great. Thank you, guys. I appreciate it.

Paul M. Rady

you. Thank

Glen C. Warren, Jr.

Thank you.

Operator

And question from Kevin comes the next Maccurdy Heikkinen of Energy Advisors.

Paul M. Rady

Kevin. Hi,

Kevin Moreland Maccurdy

– on date pricing? production that any talk Good about and in-service your would or your you morning have you good effects X can your Mariner Can expectations – morning. East for

Paul M. Rady

the a all of look know there think Pennsylvania would be it jurisdictions, work things so lot can a But that get up to followers be to local hung one that an November – unusual say, state-wide things delay X. up the light, detail. SXL hang Yeah, I'd Sunoco, putting I in But powerful think, those green in course, original they're for industry blow-by-blow of than the can to county-by-county do have in they rather more that is state out. I wants expectation ground. that

the into course the for last narrow we we Northeast, that right the year, winter, is and that differentials the of in during that as the us, and perhaps. are over the product it's and feel low, high the just Now, spring of expect prices the pretty would are impact spring. winter pretty now And

of for so months. we or And nine six suffering next a it the export with see of realizations much with – without don't or

little that two will us, be on the on very it we're a our not liquids and okay is late, our Mariner certainly but not or impacted. realizations saying inside ability quarter we're our to schedule, away that's So if put with

Kevin Moreland Maccurdy

and realizations, XXXX you a know. beyond? follow-up, gas as to NYMEX regarding to good comfortable guys a are And premium forecasting for That's still

Glen C. Warren, Jr.

with whole, just putting the an including coming feel to bit pipe narrow on expect quite narrowing, the pretty hasn't think be issue what we that in forward. and changed. to as quarter wide as really it traded also relative that the in South XPress. third current that of people about good the of new big those fourth And the won't indices. is function going issue we Dominion expect that all And other a Yes, differential differentials investors behind analyst TETCO-MX a Rover I where a and And quarter, and been it's Mountaineer eventually

be So premium portfolio, in several overall going given that kind NYMYEX that next expect forward the to to still years. our $X.XX over goes of X then away. And we to

Kevin Moreland Maccurdy

Thanks for the color, guys.

Paul M. Rady

Okay. Thank you.

Glen C. Warren, Jr.

Thank you.

Operator

The next question comes Tudor, from Holt Company. of Jeoffrey & Pickering, Lambujon

Jeoffrey Restituto Lambujon

morning. just... Good I

Paul M. Rady

Hi, Jeoff.

Jeoffrey Restituto Lambujon

Hi.

follow you're you for there still is the or out local and to standout are that actively mentioned need as look East Just has that for something a Mariner alternatives options X any alternatives? quick In the guys exploring have question. that pursuing that, the up to pricing pointed you past those removed

Paul M. Rady

Mariner option as focused best on premium for for the Yeah. prices now arbitrage. for export really We're getting pretty

we feel the it's And so, viable. most

as in there, longer have But aware, think term. offtake bit we So preferred are between coming supportive, as those community are the so supporting as floated little on. Others were with on Northeast local our probably solutions. those we well those and the I see you're so although producer them, reversals Mariner, didn't out and been in a

of be cracker more going looking us for forward ability, Mariner, ethane over Shell buyers and Sarnia. on to side out more we're I think to NGLs So are the to

between we where X regional that in think we're Mariner and NGLs, and we our can stay focused. that's So

Jeoffrey Restituto Lambujon

one how for guess that. I long-term growth next just into on then is Okay. and Thanks plan. my gas the portfolio play And that takeaway into the

prioritize either where options to of you forward could maybe more can cash those moderate look just obviously is keep curve do D&C flow know reducing those you, potentially today? with you've So leading got could also capacity expand what maybe excess continue all or and into, to going balance you capacity, today that I or further, How free the looking you you generation both to and options, sooner. at guess,

Paul M. Rady

we today, year-and-a-half going of and our Dominion firm, unutilized that, some are other see We, up but the have other up, it distressed TETCO-MX shippers, third-party do reason distressed is like pipe. because indices be that that we so the of producers buying going and will over you're the course, to to so. of gas, next the volume selling and what filling because fill we with some Well, those right we're rapidly be fairly rate, their growth know will South trade or

fill Nexus So as the and third-party long constrained pull next aware, to putting to that you're into fill own our But beyond we the with our demand to Northwest, gas. to there's Pipeline of that, before FT. the those going good wanting unutilized, several been that to area more being Coast do years probably we What there's begin advent opportunity isn't of pipes, an a and buy. to will it going Southeast Atlantic over the straws are

in, need the of abundance is pull and both more think question I So sign will capacity just coming to of spare on an whether pipe with more FT. demand we for

we're time, able us sell have next we beyond going markets just projects years definitely to we for locally the there FT to be got the several judge have now. more So right we've to to to on whether in signing what whether be will that be or

Jeoffrey Restituto Lambujon

more the increased one I you you can more, do if by terms what just is of decade and a you just flow spending alluded think XXXX, kind level could of even cash in. a time to a to gives all towards relatively what the we're coming sneak could to from mind optionality And the flexibility Great. end Obviously, If good and there of about large profile hold amount which free there? with of to keep trying get of number you out that. in production base flat in around

Glen C. Warren, Jr.

don't wouldn't Mike? have I there, $XXX specific so, say, I you probably million real in a number it's that or range think but

Michael N. Kennedy

Yeah, number. a good that's

Jeoffrey Restituto Lambujon

that thanks guys. All for right,

Glen C. Warren, Jr.

production to hold to Out yeah. flat, XXXX

Jeoffrey Restituto Lambujon

Appreciate it.

Operator

Robertson will of And Jeff next our Barclays. question come from

Jeffrey Robertson

deliver talk about agreements at all that any exports, WTI? can Glen, view NGLs you next buyers over a of to years to realization or you just in context more little several signing what all are Paul certain you and, of underpins a NGL your bit Thanks. allow the percentage the

Paul M. Rady

outlook think the demand. what the CX+ see, on Jeff, underpins Basin. can and question, ramping I demand, We Atlantic is cracking prices, think LPG are outlook how then I first on of those course, exports oil up on to So,

need with general I oil general only lifting there's not but that propane. see across the to product things and as lifting a more a the world need So optimism more those – tied prices customers we cracking our specific that think is

underpins there. what demand of things supply a just that's So and little

there, products percent as far both you are side. know, and the as out physical on As WTI, of the financial those

We still much hedging as a this price done we But we're we in. price come rise. may let But We so advantage We've little seen see of we've haven't in us. done yet. there. done lock that. and to haven't fact, pretty rise the and patient, take And it bit momentum we'll being good

percent our most the just a WTI, of price probably So likely, on of for CX+. lock swaps instead we'd doing

Jeffrey Robertson

– realize at the you connect? as new in processing plan think about modified the question, streamlined a more the needed, anything benefits midstream, Antero from AR does AR the and to context the build wells more with the XXX that fewer do that gathering or development to a you on from because Paul, cost fewer efficiencies structure, allow maybe any wells out just you Second having of have

Paul M. Rady

longer pads, Yeah, means you're absolutely connections. laterals fewer that means right, which right directionally that's fewer

that really becomes away, stations. then And it's so, water whether compressor delivery, And it's pad. with efficient pads fewer bigger volume low that pressure, per more gas whether high too, and with citing pressure, taking

that's right. exactly So

Jeffrey Robertson

you. Okay. Thank

Paul M. Rady

Thank you.

Operator

concludes to our for this would like session. question-and-answer remarks. the conference back over to any turn And I Kennedy Michael closing

Michael N. Kennedy

conference our in for everyone, call participating you, Thank today.

you feel please us. free have questions, If further Thanks again. contact to any

Operator

concluded. now you has presentation. Thank today's for conference The attending

may You disconnect. now

Antero Resources (AR) 2 Nov 172017 Q3 Earnings call transcript