AR - Earnings call transcript Q1 2019 | Antero Resources Corporation

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Operator

Greetings, and welcome to the Antero Resources First Quarter 2019 Earnings Call. At this time, all participants are in a listen only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Mr. President Vice Senior Kennedy, of Finance. Michael you. Thank

may You begin.

Michael Kennedy

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

results Before remind risks and control. refer reconciliations for may differ we that or regarding factors statements. our including in to such and call are subject are uncertainties, will statements. expressed, such start comparable financial to important non-GAAP the our on beyond measures. measures. and comments, I number of which what outcomes certain Antero implied many call regarding could press forward-looking GAAP you Antero will Antero's measures, release is to would a like impact our contain make Such earnings first based financial forecast judgments this materially statements the Today's disclosures Actual are that most future of during from to current also of management performance Please

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

Paul Rady

including liquids, the color operations operational for natural my to to for firm providing during everyone on Thank natural portfolio provide our to XXXX on and comments call the In execution and you, update transportation my gas discuss out Mike thank and our I'm transaction by gas of the an listening today. round comments, going you He then briefly for both further touch achievements and closed Antero's the the first that realized of finish outlook quarter. in simplification, the deconsolidation with pricing discussion event will Glen the position quarter leverage of and financial March reduction. as strong our and future. a result highlight will implications strong then on

with natural gas and liquids our of natural the transportation given on Let's I'll position the discussion firm gas East begin Mariner on start-up recent X. natural the liquids. touch first firm gas both transportation for

global slide Pricing. titled began Appalachia X pipeline East shipping market sub-facility outlined inflection point time commitment Marketing Mariner a first volumes in our the in into As in for February Southwest transports NGL the Philadelphia X through that the fractionators from for markets. on We NGL and volumes in on pipeline, to our exports

of which available contracted We MEX and XX,XXX about barrels on today. one-third the capacity day propane on butane pipeline, the a have equates to capacity of

NGL on premium into our As with realizations peer-leading MEX well international NGL approximately positioned the price are to and production largest deliver markets forward. XX% going shipper being we today, of sold

is the see average uplift cash realizations strong. uplift the seasonally it This that occurred a from in you can the this was flow service. on of WTI an when during million side by XX% XX% quarter, $XX after page, first impressive basin to table, in you particularly substantial during boosted approximately quarter. typically of increased came MEX in As January, left-hand the service WTI from our of of NGL before is in when pricing This consider strong

through this XX% As but first of of middle arrows as full to can the export volumes export X, to for the quarter. quarter, CX+ in swooping first slide you up level from the in see year map ramped the expect NGLs on the the XX% our exported we

due in recent back be months, realizations CX+ we basis our expected to on the has guidance barrel This an is NGL between bit Mont per Although, Belvieu prices to $X our absolute prices increase prices NGL original disconnected a and higher relationship compared pricing to as international WTI NGL demand approximately recent Belvieu we Hook, see crude crude pricing expect in on and slide in NGL terminal January. products can also of between Marcus have Mont prices attractive X international months, there. and international you the in spreads. titled strength strong the for out In seen WTI a significant spreads

operational this exposure to the yet pricing us index. meaningful us particular diversification to benefit any international geographic reduces transportation our prices allowed another area Our risk NGL portfolio This and diversified that will how during one benefit pricing provides about we the quarter both example from throughout spread expect or and around year.

restart value cash we have recovering ethane on the at flexibility week. only the front, first the to levels East been contracted able any ethane strip last reject remaining Though to our value to the the ethane to and of had in remainder pricing gas necessary expected during required were to we resulted above industry shut natural gas intend per and volumes specs. and current the pipeline and the On pipeline cubic day feet meet are X overall production volume pipeline first a volumes as down during specifications at volumes ethane XX ethane equivalent continue maximize sell importantly, quarter, quarter the gas we natural up this quarter. to the basis. and million sell But This flow. Mariner profitability meet fulfill ethane for with for Based of contracts less of XXXX slightly pick the to majority on reject equivalent this

ethane to you and transportation portfolio natural economics strategic X it that recover provides, would of the I'll of the additional gears extent volumes. position XX,XXX the in of set we expect we benefit to to XXXX. in barrels support slide course XX,XXX our direct improve ethane Shifting a to XX,XXX To that recover For long-term gas from to recovery elect of titled, levels volumes year per transportation to our full firm the a to is we advantage. guided January total barrels that down ethane prices day ethane discuss XX,XXX range day of XXXX, firm previously range

firm to plan. development our entirety service, in the committed us FT can of transport visibility long-term now significant our see that our you with the portfolio provides With respect

price we XXXX on natural in $X.XX a their asset peers NYMEX continue are and NYMEX basins to coming of to are order relying to gas expect realizations that $X.XX to premium base receive the as we years. For tight our over enables premium longer-term creates portfolio the confidence to our value significant develop This the business our to to realized on Unlike realizing make the markets. transport forecasting shareholders. long-term, due premiums decisions visibility local long-term what at many and remain for relates price we have about it to focus will us and to to in

fully day end market. LNG the tremendous to a of our net of pipelines XXXX are expect facilities day which the in marketing supplying market. through slide each markets. marketing Bcf LNG top for typically contracts. premium our at by capacity total. is X, that the premium-priced subsequent the a expect This FID not a which a industry-leading growing number purple that illustrated supplier illustrated on And pricing our to markets. along million XXXX of this are strip expense the delivering peer-leading are firm LNG This is We export Bcf will to position titled we deliver to we being cubic is NYMEX-based when peak Among and increase markets premium FT with will level. making long-term with per today growing to our U.S. transportation. by important Mcfe hedge forward It market feet day virtually volumes provides as us While first fill seeking with quarter by leverage is projects associated decline expense benefits Coast LNG LNG pricing second we million LNG our on into X.X currently also to will $X.XX provides wave feet to supply portfolio Gulf markets day utilizing multiple export us chart There indicating with into the these expected be be in our offset X.X eliminated in XXX XXXX year. our XXXX supply moving the note a the expense cubic we net by marketing XXX quarter XXXX that

opportunity into Gulf robust significant us Our transform the a firm to this growth. for from Coast benefit tremendous provides region capacity

our increasingly depth the LNG LNG business. expect become confidence as who counterparties player inventory strong to their players with firm sheet the very balance strong agreements production portfolio supply supply transportation inventory the over and the valuable transport portfolio have Antero drilling to be the long-term has look We and quality, drilling in decades. to in a secure multiple base,

placed that during quarter a the In April. on lateral place Now placed we XX the track plan XX our quarter on our Marcellus an first the the production to with acreage. XX we wells second were in drilled XX,XXX first sequential focus and to XX development capital to second quarter, feet. year briefly to sales achieve sales full wells in to liquids This average to length during sales wells around to We of guidance. all XXXX our from us with on quarter the liquids-rich touch activity quarter, average keeps first plan, increase including

we three of to average one by the plan, We remainder recently completion rig four and each. on capital our to drilling crews our expect Turning crews rigs and reduced completion now run through count XXXX.

CapEx to expect completion the and the we our count crew in the of low CapEx year drilling second of $X.X are third reducing in $X.XXX and low of full As billion our we completion end the and XXXX range. XXXX area. a billion quarters result for reduced million prior the XXXX, $XXX rig to be to of Further, guidance remainder

the Before on it the like seeing I front. discuss we to operational I'd Glen, positive many are over advancements turn to

world footage feet Drilling Most highlight category Unit XX titled Hayhurst XXXX. well drilled the lateral well feet of day be push top recently which impressively, average in and day feet the in X,XXX quadrant in in quarter, set we the Antero our what drilling I'll we gas Turning an in and page in of the XH of We slide a performance that a XX% the hours where X,XXX to to on lateral Efficiencies the horizontal to per right we average this hours per compared in company fairway. drilled believe history, rich and increase rate representing we drilled XX a quarterly to Completion lateral play feet is record drilled sideways lateral Continue, continue higher. highest X, jump to

the winter very stages to we're with also higher higher the averaged challenging day overall While set feet lateral the than Completion drilled per first stages number move standpoint here, as very of noteworthy a day Marcellus for day. per conditions. is quarter proud from we're our in -- the pleased continued This and X.X the for per consistent record average the a full seasonal average. first due most the typically quarter XXXX is in

year full of our X.X about well. good assumes leading Given feel cost day lower year. savings to per our the result per $XXX,XXX does XXXX stages day, of budget additional well An one increase throughout continued we stage per which efficiencies in about very

us. important to So, it's

on We targets continue confidence well we of range. in to end have progress already us gives focused A the capital our lower. year production cost at that XXXX achieving that guidance be will operational with efficiencies spending in low drive exhibited full our

us peer-leading our for to to with turn our have and we combined diversity price core to drilling to largest our that, structured comments. a product realizations have largest for attributes natural products his These deliver and come. I'll position With producer attractive years portfolio to inventory We significant a shareholders Glen best-in-class long-term and fourth NGL transportation over as the scale it achieved firm deliver environment. even for many operating the gas in returns difficult producer

Glen Warren

our MEX conclude Paul. and In with ways This through win to multiple we comments the have discuss of first Thank with to liquids that around product the demand additional the color for start-up quarter results, financial NGL and I my the price comments you, gas. today, with competitive growing provides on large-scale our exposure our liquids forward. provide will uplift going realizations advantage pipeline, and us markets natural diversity to our built inventory both

through consolidate did a equity provide its interest with to Before but rather AM midstream into its I AM on of record closing topics, statements that simplification I transaction longer in will accounting. the March, financial want the in AR GAAP of method no these get the reminder will

this change will provide it about we excited are believe benefits. We several as

stand-alone easily a improves it more First AR This compare enable investors disclosure and contrast will transparency the on for E&P with AR and its to basis. peers.

few, free AR's minimize capital, and the and flow cash screening name therefore, will story. transition analysts, this future Importantly, just and to among inconsistencies significantly investors, a services financial leverage, EBITDAX, on simplify

at at see enterprise included extremely quarter, hedged XXth. attractive times slide leverage still value consolidated deconsolidated statements X.X XXXX March and As mid basis. you are quarter transaction X.X first on metrics to the with can EBITDAX on through the Since X, our times number closed a consolidation our closing up -- on financial just date our

However, through of all ownership quarters the Midstream subsequent will equity the accounting. treat Antero method

Now, moving on quarter the first to results.

quarter, net XX% XX% a ethane. of year-over-year day of XXX,XXX of acreage. of day, delivering NGLs averaged production including CX+ year-over-year production oil Bcfe a liquids. Net the barrels and XX,XXX barrels per XX,XXX increased barrels reflecting continued XX,XXX liquids During day our a emphasis developing day on day a liquids-rich approximately a production X.X include barrels over Liquids growth,

average hedges representing the $X.XX NYMEX Hub quarter, first natural the Mcf Antero's to $X.XX gas Henry before During price price. Mcf premium a per was per realized

natural continue natural premium before in gas expect $X.XX delivering peer-leading price XXXX per a reflected XXXX guidance We hedges for realizations Hub. to as Mcf to realizations our Henry gas to $X.XX at in

we expected of production portfolio notable that of floor only an for Our and hedged $X traded MMBtu. last the slide publicly XX% natural XXXX remainder XX% is per gas producer average on hedge to of quarters is gas XXXX. $X.XX average targeted the with of portfolio natural remain U.S. -- three MMBtu of XXX% as floor with X gas XXXX that in production the -- It XXXX protects XXXX XXX% per of shown number an natural on

pricing quarter. during to the liquids on Moving

and quarter Hook first average important the Resources went an pipeline into the East as service point was giving premium-priced Paul during XX, global LPG on inflection XXXX February X discussed, March shipper prior the was January We quarter, March. to representing in the Antero to of We per for As an Marcus again access Mariner actually us gallon February Belvieu number prices a day Belvieu prices hold price realized the XXX,XXX and to a about day Mont CX+ increase realized MEX at prices. for per Mont that in for was largest price commitment, once X. that and barrels We pipeline. benchmark NGL illustrated our in increased once an back a premium received on WTI $XX.XX us throughput softness of the prices. Further, over of XX% making and exported current propane the our slide barrel of $XX.XX CX+ unhedged period of is service through $X.XX February March despite XX,XXX-barrel barrel on butane one-third average per MEX on during

our prices We with service. Belvieu MEX in strengthen on a Mont expect NGL now to realized to relative basis

oil fully NGL has pricing in the prices prices domestic Although, in not participate seen international in months, rally crude strong. remained did recent

expected XXX,XXX-barrel realizations which exposure significant to to CX+ already approximately NGL where day a sell about XX% deliver give volumes Our the and XX% overall the is we MEX on basin's volumes highest markets, continue of to is NGL in-basin domestic-related in production, LPG NGL flowing pricing international almost positions our peer-leading today. price to of which us forward. evacuates the us improve MEX Further, going

commodity number deleveraging Moving titled on balance strongest history. our slide to in volatility, price in XX sheet is the our company's position through

have last debt X.X XX. few over We over years, as reduced to times the leverage million lowering absolute of $XXX March of by all

flow in resulting This only by simplification first from cash the was quarter. million on remainder $XX of $XX quarter, reduced our first the midstream during $XXX the proceeds process million billion we the credit $X.X generated and from facility. drawn borrowings with During million free achieved

and depth $X.X the commitments Our our at with drilling of was at during resilience strength asset reaffirmed highlights borrowing the our billion. This of and base inventory. the base unchanged redetermination billion spring $X.X

current over Before comment the would turn the to for I call on questions, years. next like several positioning to our competitive outlook and

an We ever-changing have backdrop. built our business in to excel macro

We spot to Mont in the the are WTI a relative flow year to in looking play-out throughout NGL ahead. $X.XX-ish see this and our low and projections Belvieu seeing natural today prices generated we historically prices Despite gas pricing. reduction levels cash

our us to flow. to that also growth a Our projected international has spending within offset targets, valuable maintain provided the material enables production exposure cash markets NGL while

target Looking on spending. growth with demonstrated production outlook continue flow while we attractive disciplined least cash to slide growth at XX% as in number XX ahead, within titled spending

We correspond to in this that Slide expect on increases not flat. do provides maintenance keep That's capital that. and capital modest to our capital growth we with production future to needed increasing would XXXX deliver and cash rate flow. XX decline to titled beyond say that detail our number further spend projections

CapEx $XXX capital previously is XX% of XXXX. we growth spend XXXX remaining our As million-plus million supporting $XXX with a maintenance disclosed, in

base the by to a We basis see debt chart to leverage simply the production. our there. company please continues of of slide, on a our as decline slide XX. in an number with is our And over the This base and in lower In base reduction turn move our decline which on summary a relative can previous shown Bcf flat function history. there's decline maintenance best left-hand financial and position summary that sheet our function is strong X.X day on months. of a X.X maintenance does illustrates CapEx a absolute down capital As during operational focused appendix quarter. -- year the We're of times production in the rate, slide side to subsequent balance basis the assuming you maintaining both XX on remain reflected the rate in growth turn each the

transportation the pricing. Coast portfolio Midwest us into the sell scale very natural NGL minimal markets diversity and natural that the U.S. on in largest in Gulf with local to producer we've fourth exposure and as premium firm product and gas significant to allows producer have built the We gas largest The the

a Bcf the X.X million to day transport Coast of we day a us by among where largest the at the suppliers gives largest export year. LNG exposure Our demand XXX to Gulf this growing firm are year-end

side, the another short with On diversifying market conditions. now expect markets to we turn the and XXXX, premium NGLs win business I'll into exposure realizations. providing liquids yet under questions. have ways sell over to With many a to our the that, link XX% global in liquids we built price for In call our of the pricing to operator changing

Operator

you. Thank

first line Our the be [Operator We a from Please Jane comes conducting your will proceed Stifel. Trotsenko now with question. Instructions] session. question-and-answer question with of

Jane Trotsenko

first is NGL curious thoughts could I'm Thanks. you My Mont morning. and fundamentals. on outlook going Belvieu pricing question the international maybe it's Good if demand during your how XXXX? to evolve on share on and

Paul Rady

Dave Jane, to me turn our Yes. let and Vice over NGLs call President International of Markets. Cannelongo, the

Dave Cannelongo

a We see amount addition down they access the caverns Houston Ship the quarter the that Mont with result and able of of projects Jane. there. third to that's in down increase players will a fog really the of is a expansions to of markets. to get the those started fire that amount their had on Yeah, to some there of a production that they the we've for water midstream in some in are There Belvieu seasonally occurred on well of dependent to quarter there out a limit ability on that, few But weakness the couple of Channel. as saw terminal ITC the as fair as challenges a at the first that see in of terminals

in as com slated international Mont well Southeast coming some that's in growing And in in PDH Europe. of to Belvieu pricing although internationally res pricing. on then. there And projects are growth a the particular the from coming for couple support in do support time, of from Asia, in others continue so the been demand market would We as see Asia at petrochemical we see that Northwest point

X. So all those us to East strong and spring together far up very a allow wind things to so winter on have Mariner

Jane Trotsenko

it. Got

pricing from So that on NGLs it you fundamentals that you NGL right? would would expect see say, I point be to this fair of in improve to -- terms say domestic would to see

Dave Cannelongo

are with speak complex. just We coming the down really petrochemical want demand see for And I'd of and ones ethane here three that can market year as particular we'll later we additional mention the improve well some as the Coast the in new Gulf do. if ethane online this facilities to it that

Jane Trotsenko

terms Ohio, got how Utica. asset going forward? and you of of My Okay, terms on production allocation us trajectory second capital Could view question in you remind it. is please this in

Paul Rady

has the quality project Yeah. in reservoir both areas. and our We the NGLs gas very become economic gotten in like trend Ohio, areas Utica rich as have on our where a stronger, accumulated side rich acreage good have we dry more gas also

Therefore, Marcellus Utica we our like and it but project dedicated at So the are better. focus is so almost well but still very still XXX% is doesn't with economics Marcellus much the time quite to that compete likely still. that capital this Marcellus the our

Jane Trotsenko

But will we as declining? about kind Utica flat think Okay. the be it or production of for should trajectory

Glen Warren

be every probably or It'll pad that flattish full we drill a I a would pad a of year. half say

And so production that can keep flat.

Jane Trotsenko

Got Thanks lot. a it.

Glen Warren

you Thank

Operator

Thank you.

Stewart with from question. next Our question your of line Holly Howard the Weil. proceed Please with Scotia comes

Holly Stewart

gentlemen. morning, Good

Paul Rady

Good morning.

Holly Stewart

Maybe just the wedge I it in are the like markets. noting sort given then of guidance know at XX% off XX% just in and somewhere guys and the slides likely at on let's $X.XX you would $XX $XX $X.XX. production and between I start the call first

think that gas high-end at the at have would low. thought I crude probably week until would the be this and we

thinking So that of maybe are going wedge were some Glen, comments out you around forward? scenario if make about the how you could of and guys the just sort to sort play production

Glen Warren

and look over in the how believers and need for I But to good don't Dave injections well. think this mentioned, NGL summertime season to -- XX% in go Holly. to now. We're the shelter have about comfortable now evaluate continue longer prices see very makes through weather and to line near and the in prices see higher. us We're really gas on that still you softness accelerating we so term. going really and gas term. strengthen and just up firm kind as the as due we're what Well just XX% think that through for in We as that's get line not that that for We oil medium being feel every the NGL that forward markets still and growth quarter of are we we we'll summer see capital

Holly Stewart

then slide And you inflation XX Marcellus. I great. the a maybe the thought color job that the contracts? That's did good bit well and in maybe then waterfall little just renegotiated have just Okay. you completion provide Could of seen of of around cost a some of those

Paul Rady

do Yes. and a of sites water of We back see from certainly We lot hauling course the water. both well water do pressure. flow produced

so back there on trim and on. use call-outs cost, able especially as trucks so we've more we've And trucking pressure but there's -- gotten been fewer to driver efficient has cost and been in

on We're renegotiation is beneficial. up XX% this pressure well. barge River hand But we on year, with out fall which on, have so quite are good if logistical and we from there the for ice working amount there do the a approaching in that the bit facilities least are the savings have contracted Ohio on staging there. there we winter, quite any And at White River from like a case are sand some of right needs cost certain quite aside to self-sourcing self-sourcing do next dams our can hitches. suppliers We our yes, the a Northern Ohio. Right have So there. it's the contracts other railing to of Ohio of XX% we have saved trends, been quite sand the In the very set that traditional now, -- actually acreage. is on

translate are reduced and cost, so by one-third which really to far has see expect that sand our that about So significant through.

about itself, but sand last only mile. the I'm So the not talking

So the we're thousand to dollars add per Those up costs getting down. well. those several hundred

get seeing with a as pad. those day bigger to the logistics we stages efficiencies can know pads just the on off more you So

lot efficiencies of helping bring costs a to well that down. our So are

Holly Stewart

guys. That's great. Thanks

Paul Rady

Thank you.

Operator

Please Guggenheim Subash comes Instructions] the of Partners. line with Thank you. question. question next [Operator proceed from Our your with Chandra

Subash Chandra

XX% Yes. drop of is The you bringing Curious up through year, through keeping something in could the next a couple things. back the the in rig do activity anticipate Or balance of you while continue year? the Marcellus the XXXX that CAGR? levels

Glen Warren

We bit laterals similar grow as well completions expect more next the with a year. on front few of but to longer probably drill as we number year, and have a next a completion wells

spend a much. little but to expect more next capital year, not we So

So at know rig, least a but not I'm more I half sure a it's don't rig full a probably.

Subash Chandra

there Paul update were savings. phrase number of some Is way anecdotally foot to Okay. year? there an a or per $X foot you $X forecast mentioning this think you're that? Is maybe I cost achieving sort places a of per exit for

Paul Rady

reduction. Well try on get high work lower. target as a quantifies it million. that into would XX million feet on $X.XX $X.X on It Subash X% and great going that to foot slide you get be to can from to see thousand $X.XX lateral a obviously to Continue down per per $X million, so a the that's around just

well recent in the in the just the day. one X,XXX feet did are our that as X,XXX per above And So setters reason we're average record we rig feet we day comments only the we'll highlighted getting Naturally, lateral X,XXX the have we're a where much as as drilling. part so per and feet not more number There that so average. in drop much are it the efficient, them on we that goes. faster is

And that time. you so accomplish more drilling less much much with can with that,

yet. and X% that and where X% at over our as be go to go would achieve for you're if or target. keep going will not And X% that on so yeah per-foot we it striving It's X% forward. from cost, So least there? we Well,

Subash Chandra

XX reduction the that Yeah. Right. you Yeah. quarter. I for updated clear wasn't CapEx about slide was the talked if in

Paul Rady

Yeah, it is.

Subash Chandra

there then Slide is D&C Got -- drilling activity X, the it. results, slide Yeah. And Utica shows Utica on efficiencies. underway?

Michael Kennedy

do this activity a XXXX. no have one we Subash, Mike. did But not first of quarter part drilling rig the Utica, where completion We pad. we is one throughout completed in Hi. have the there's there further for crew

Subash Chandra

Got final Okay. one. it. And a

using and AM for of funds? that plans your on stand you as where philosophically source a Just

Glen Warren

Well, over just checks great see it's obviously time. how that and is AR a - we'll for out asset AM

value We gets added over next see of lot expect to some here at it AM, a indices to improvement as the improvement, seasons price and months. few

So, very point. that do but this direct position optimistic there, with to anything at plans no

Subash Chandra

Okay. Thank you.

Operator

you. Thank

question is Stifel. your with Please with Our follow-up question. proceed a Jane Trotsenko next from

Jane Trotsenko

I like that natural in gas are lower to Marcellus private Or back? from privates macro ask. do have a to you XXX curious, Utica the we that, little see you range bit for I where question I'm think come investments a longer need given levels are? need if natural in prices stay future gas to seeing

Glen Warren

or you I'm down – whether slowed sorry equity-backed that? or activity has privately Are could not the you repeat asking

Jane Trotsenko

Exactly.

Glen Warren

not Yeah. see over think or change that year will that's of lot a Yeah. will We're something the Utica seeing Marcellus. next – whether yet, we that I slowing

are think direct are as on and the And these And think it at So of to side. active. economics in drilling the have the just in the privates be at public of of for other sometimes maybe companies reasons the constituted well XX% continued looked private – equity-backed last rigs companies they probably portfolio fairly not we same areas. scrutiny they I gas I than the some running time, the

completion development So private and healthy to gas on course dry in I activity plays. activity the see a their back think drilling scale be of that would the

Jane Trotsenko

translates to for longer But right? seems It into me a you we activity it weaken like this little before yet, it more see don't privates, to need for just right? bit see levels

Glen Warren

decision hard Price right. you're should making But predict. to over time it's that drive

Jane Trotsenko

Okay.

curious a Got dropping -- follow-up. making low-end the of CapEx question changing you're and And the great I I'm capital there rig are of to high it. in CapEx outlook. not XXXX, Okay. those certain be to production type a as as something expected progress changing terms Obviously, efficiencies that read-throughs ask without might through without just reducing wanted guidance let's from say of the or you're efficiency direction? in

Glen Warren

truck a name the flat sort down. up today so that's in news move our average running activity great as that's space, continued think think drivers that out first the you that's water seen Appalachia, all to tamped think Paul inflation But possible. news. services down charged incentivize last really get I through on certainly in with We was And mentioned X,XXX The only to oil rates now I on are of the as We you heard. is and is year the we've so just good day non-issue inflation, efficiencies progress. to feet that's there. that's it. the lateral quarter in to that's good think To leveled a been still

and really day. as time. still, lots this day generate get you saw upside So want terms first And much logistics stages five fewer the that per you and each spuds that of with the in number said we quarter. on didn't fewer think fairly to in well to then of of And a side, completion rigs there's going the over winter normally to a stages we we quarter we due is problem quarter slow which have need

day up eight next or up to expect next we is throughout stages into here X. year good so to that a get maybe the the to year and pick So or target over a and year

still for lots there efficiency of improvement we So see on room side. the

Jane Trotsenko

And going it of in see proppant is change terms lodgings longer to Do laterals you getting then next year-over-year? year?

Paul Rady

Yes.

have terms We they're a per or for which have inventory and our If this are they much planned in we six specific that just laterals, there's found range. to the in do the so wells. year and XX,XXX, in averaging that's years. high year? specific the and efficient year into which in sweet XXXXX-foot -- than next to year to XXXXXs how we terms completing more the several the spot such longer just years mid cycle over have next by XX,XXX five out going it's we longer XX,XXX delays out get A little units strong that of such that time drill get the to they of program But on

And second with that. question happy the we're of So again Jane your part was sorry? what

Jane Trotsenko

proppant Is the to much change? you How remain intensity. are is to going Or going use? to Proppant same? it it going

Paul Rady

we're pilots good about of XXXXs per happy scenario of go XXXX out. feel It step-out do some XXXX pounds and areas. Every in will generally now that in to same. again to that our But sometimes We check probably the we XX.XX per foot. We pounds foot. remain

pounds around foot. but say to mostly per continue we stabilized learn, has I'd it so And XXXX

Jane Trotsenko

if have That's very the basin? general I helpful. last about you like M&A, activity if on in And the comments may question any M&A

Paul Rady

consolidation the not of to activity continue think Yes. lot now. but time in over see whole We some hearing do you'll basin, a right

asset private probably be Yes. maybe keep an I eye But think situations some they'll we equity backed first. that well. on as

Jane Trotsenko

much so questions. my you Thank Awesome. for taking

Operator

for the to reached our turn to of We question-and-answer would back floor closing the Mr. end like remarks. Kennedy over I any have session.

Michael Kennedy

joining for today. us the on call you Thank

questions free out If reach Thanks feel further have again. you to please any us. to

Operator

Thank today's teleconference. you. This concludes

this your a your for participation at time. disconnect You Thank and have wonderful day. may you lines

Antero Resources (AR) 2 May 192019 Q1 Earnings call transcript