AR - Earnings call transcript Q3 2019 | Antero Resources Corporation

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Operator

Greetings, and welcome to the Antero Resources Third Quarter 2019 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded.

I would now like to turn the conference over to our host, Michael Kennedy, Senior Vice President of Finance. Thank you.

begin. may You

Michael Kennedy

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

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

may also for important Today's release measures. to including such measures, financial to regarding the press contain reconciliations refer measures. financial call comparable earnings disclosures GAAP our certain non-GAAP most Please

President me Chairman and Warren, Paul on are and Rady, CFO. the Glen and Joining CEO; call today

to Paul. will turn call the I now over

Paul Rady

covers comments balance production He Cal-XX projected expanded hedge on cost Cal-XX. third will both Glen essentially Thank then meaningful our liquidity across now our our well financial the provide discuss my made sheet going we for comments, progress cost-savings and that conclude quarter and an considerable achievements forward. reduce also you further I position. initiative. that our that will through and operating update our listening with natural you, XX% our of Mike, call to on have to already and business everyone will expect we've will thank I to today. In we reductions on gas achieved position the highlight

efforts cost to at discussing underway the Antero. start by expansive like savings I'd

a price have the includes at line-by-line intensely the This us commodity lower-for-longer been overall company. we last the in throughout focused review cost expense reducing structure process make environment. item to competitive Antero year, Over every on of a more

Through in overall identified have alone. to from structure we cost comprehensive the remove $XXX XXXX our million this review, potential

Slide to the to cost range budget billion, guidance. this a $X.XXX results G&A reduction reduced strategy spend quarterly $XXX overview, the the come since savings realized midpoint a reductions CapEx billion our year on was at from range, CapEx $X.X IPO for titled significant X% Further, XXXX, the These of to annual increased well Firm and X reduction, as we due reductions detailed quarter guidance XXXX. production date, capital the account third full original midpoint. these As transportation efforts lowest our $XXX majority million our D&C end of cost lower to reduction we and mitigation Despite from the nearly remaining reduced prior of already high in the costs LOE. our delivering a are the savings. to XXXX million, our will D&C increase of

discuss million that basis foot these per each cost-savings approximately of to well individually. targets million or a announced Last initiative $X.X let's a well. lateral in Now reduction items to we on costs XX% $X.X well XX% quarter, per

we nearly at targeted target costs, $XX budget. in, the in our $XXX $X with of ahead $XXX,XXX Turning foot, $XXX our are XXXX assumed all-in are, equates half which reductions. The are per that all by And which roads costs per our quarter. We second million substantially announced per to costs January savings titled I began was cost mean of per pad, of foot do or to average, well. well well foot achieved Slide savings Today, last in well all include that X as well foot. XXXX facilities Marcellus costs well per our already $XXX on per and

of to flowback able accelerate ahead reduced were third blending localized We schedule. water quarter, operations during costs water the which

acceleration able third-party been during illustrates compared team with plan This benefit to with the if was pad midstream was development long initial relationship water to time of to quarter, execute required the provider. working would flowback lead that quickly third sites being the blend at our of Antero the a were ahead direct a our Our Midstream which as time we frame. completed have

The trucking wastewater accelerated order high to Antero closure associated cost in well fees we blending it. Clearwater contributing facility to also the completions. with costs of lower and costs injection increased the was minimize well savings Also as drier

quarter, foot our per the barrels of we approximately completion of freshwater in XX% used During stages. fewer

of AFE next ahead, well we per targeting an this the $XXX per anticipate savings the foot, as goal, of are a all outlined in through further cost with and Looking of to well average XXXX, are XXXX of $XXX we quarter initiatives move foot year. several declines achieve to our By within control. first expected $XXX have we which

drilling to completion titled Marcellus Slide and efficiencies. Turning X,

to also We continue realize cycle time improvements.

reduced X-well we quarter, lateral a average in lateral That's day, per dramatic This hours. new length record records set to average days increase our XX,XXX for lateral lateral feet in feet drilling XX average length as averaging day the drilled feet XX% improvement day feet. having increased XX,XXX setting has a XX% day, to despite -- in a XXXX and drill to XX since third well to days the per drilled world X,XXX by spud feet from new per lateral spud. During

our in new increase new per also a a of in record reduction day and we stages X-day to a a stages of freshwater set quarterly increased completions record which X.X day. helps per our day, stages the record, XX completion used Further, in

LOE water produced performance, blending savings our and driven Antero reuse capital titled and the highlights into in X by water. transition Slide reduction and of flowback

expenses day barrels per quarter a operations, on and with day on increase quarter in in in This in negotiated to increase reduced barrel decrease the this average rates, blending quarter. trucking $X.XX fourth reuse trucking over the first third a to combined XX,XXX lower expect water-handling XX,XXX to our compared for of We barrels blended average result water projected to year. is the a miles in from

the we cumulative As line the decrease per relative approximately expect this in to in will green savings chart, on budget. XXXX million barrel shown translate our to initial $XX

savings initiative. water titled water-savings lower LOE X overall impact the Slide driving illustrates the LOE from

starting sequentially. September, the were Our as Historically, idled, was down to away XX% water our facility of third LOE. costs quarter from to reuse down able the August of LOE was and operations substantially. in By $XX we XX% LOE shifting and facility our Clearwater produced localized in Antero blending drive represent transitioning million our

period full these We fourth cost LOE million. in even further with expected we nearly decline another to savings reductions expect quarter going benefit from forward absolute as $X XX% LOE of a or

anticipate to at $XX of relates it initiatives we least XXXX million these LOE our compared savings As to XXXX. outlook, from

Our possible. have this XX,XXX to is reused goal believe blending times, This and number actually XXX% blend last we water. achievable, XXX% barrels day, new of believe, flowback our we produced week and quite a is we just record it's so of a a of set

Slide firm X guidance and titled to mitigation Turning update. transportation

our released XXXX through a several of and cubic mitigating at to XXX aggressively parties of XXXX expense marketing to excess of lowering FT marketing firm during Mcfe will our XXXX. the by of months net at feet the March reduce We by day September million excess $XX offload led over expense the $X.XX million net the midpoint. This guidance per next work third our to continue transportation We cost. recently months

the continue recent We market at opportunities of to firm see attractive of driven widening local basis Coast. excess attractive the spreads and our to capacity to by Midwest some transportation Gulf

declining X.X day. down capacity Antero's XXX per this At the As firm XXXX Cal-XX. a capacity by on year chart, for day XXX Bcf our in to illustrated day, cubic each to X.X peak comes a going is year Bcf million option, feet transport forward of

expect all fourth have of We our of by XXXX. quarter firm organically premium transport the to filled essentially

initiative -- through These We reduction -- G&A the run come this business or savings recently headcount a rate lost operating $XX year, reduction million mid-XXXX. attrition expenses. board XX% launched in by occurred expenses. employee earlier that employee and a mid-XXXX will cost-savings natural targeting to reductions in Switching across annualized

In regardless summary, cost a commodity structure overall peer reducing the returns steadfast remain of with of being leader goal in our a in we cycle. will

guidance Our capital X.XX efficiency X% our relentless Despite reducing by our the effort to Bcf production under high reduce X.XX day, to highlighting billion. assets. $X.X range highlighted of being costs capital of has XXXX reduced already target the benefits initial equivalent end delivered are guidance we as increasing improving of our per to to capital,

Based target preliminary XX% strip, reduced to the commodity on remain growth in Cal-XX with strip. our supported million depending these flexible on XX%. outspend the natural XXXX million. XXXX note our program Important be balance to program our expect range while prices, gas accordingly positions $XXX of to This X% with modest our now ahead, NGL well lower growth CapEx can we to capital hedge to prioritize by costs, will under sheet. our to $XXX in by billion $X.X through of production current that above and be expect the we D&C protected the order strength in delivering Looking peer-leading prices of at is

With Glen comments. turn for to his that, will it over I

Glen Warren

Paul. you, Thank

Turning titled to hedge X gas Slide position. industry-leading natural

MMBtu XXXX of target average in our October. position price midpoint quarter gas $X.XX and of XX% average target an line hedge The our for through the at growth XXXX third on XXXX. XXXX. in $X.XX natural represents price on gas. of X% in to add to hedged hedged or price hedged to now at assuming XX% XX% fixed XX% an continue We're We per growth during the prices MMBtu, in swap our the natural graph orange and and per

of It's more investment for gas. XXXX. the have important hedge more peers. protection attribute realizations. net will This annual on offset in realizations expense of to that remain traded U.S. the hedge Based Appalachian our producer XXX% pricing for our almost today, note expense through our market It in a only XXXX, to notable bear continue marketing publicly and hedged significantly the is with production that expected net an on and offset than marketing than our we all remainder natural XXXX important is year XXXX hedge that strip gas we is

able price have to hedges the in XX advantage were NGL Slide titled September. following take Arabia of hedges, been in attack global Saudi adding also to the spikes and CX+ missile actively we Turning NGL

XX% quarter expected and hedged are XX% volumes fourth NGL We for CX+ hedged now in XXXX. are the our currently on

price our at with oil first price WTI volumes. the We a for $XX.XX CX locked hedged percent and were CX volumes The price resulting fixed per was in CX XX% fixed of in barrel. XX% our have expected barrel per XXXX then hedged over WTI, volumes in at $XX.XX or XXXX of pentane at a swap, a

So our for oil for XXXX volumes combined quarter that XX% estimated the really CX+ oil is a represent our These barrels WTI XXXX have quarter of volume XXXX, be a of exposure closer to XX,XXX for XX,XXX and the day fourth hedged and XX% to day respectively. production volume we fourth and and of forward, going barrels XXXX.

We will price by hedges continue markets. our and European adding domestic Asian exposure NGL managing toward to our work across

barrel. Third NGL realizations averaged per quarter CX+ price only $XX.XX

seasonal to our was Although industry-leading market the from to a the Mont East through Mariner Belvieu exposure a price premium realize there to were quarter, again on second LPG prices NGL X. once we due MEX, to international able capacity decline our

on side gallon discount Belvieu Belvieu to a This provide price, a the per to of slide, NGL net Mont table was shipped XX% table for at Hook. in and third the resulted to for the was XXXX. XX% In we $X.XX sold pricing per titled bottom-left premium premium $X.XX right-hand on Hopedale. in quarter $X.XX pricing. to we on XX Mariner the volume at of NGL at Slide which remaining realized pricing East illustrated guidance in on Marcus The gallon CX+ X per gallon CX+ export year pricing, of Belvieu delivering relative Mont domestically volume blended realizations transportation Mont of the Belvieu a the total full net As Mont premium

international note NGL quarter effects supply seasonal improved the into barrel supported combination as NGL has in The the the incident of Based seen due capacity as the a including in been a LPG price U.S. fourth pricing the recent factors, $X XXXX. prices to in to winter, the in by current forward, on robust in the our the NGL improvement NGL improvement. see quarter we dock early October export Slide on NGL important the It's transition disruptions we trough chart Coast, strengthening Arabia realized depicted on prices following Looking is continued CX+ as we demand. of producer since as leverage titled Saudi ongoing prices. This Gulf and strip second-largest increased global anticipate XX third in per prices, to price

example, For million price, $X additional roughly would barrel an generate outspend improvement that cash in a in $XXX using XXXX, $XX we're thereby million barrel the estimated in per estimated flow, CX+ for $XXX eliminating estimates, our of to million per our XXXX. $XXX strip

quarter we and Marcus As support domestic fundamental we into Gulf second by Hook prices. provide stranded XXXX, relief to additional at the projects Coast East NGL heading will call, export that the capacity supply expansion during highlighted to tailwinds along prices and see Coast driven

in across new the front, and On import the expected China, drive demand incremental markets. international continued to capacity Europe, with India strong in are international PDH plants combined

sheet for Antero. low the environment. Maintaining balance Slide to strong position price XX priority top on financial at a titled remains strong Moving

well Our the sustained any market. positions in weather downturn current balance sheet us to strength

reduced past a have million $XXX over years, by resulting debt few leverage mid-Xx We approximately today. absolute the in

$X.X value $XXX of have and mark-to-market ownership We currently our is in provides flow of million. billion year over of cash form million hedge steady $XXX the dividends, that in per AM value our

at credit. borrowing $XXX million to on million billion bank the a commitment, have currently base and to was $X.X during lending with facility $XXX $XXX of October, commitments RBC added total We letters only group lender This our increasing redetermination. the spring reaffirmed Our billion. $X.XX million of we drawn our

$X.X $X.X credit billion plus uncommitted billion under our committed facility, So liquidity capacity. first-lien almost today, we of almost have of

we have bond stream with first-lien as XXXX of backstop new the plans $X.X first-lien if and bank PDP is and $X value, Tcfe While improve. commitments borrowing dividend materially capacity, and combined billion almost capacity to XX billion from hedge reserves, supported repay enable would a utilize to additional unsecured that's its the the by AM first-lien the XXXX market maturities of services no And that pricing. Antero doesn't of this at both backstop

Other sales options reductions. asset include liquidity further and cost

interest alternatives NGL. the in that year; monetization done we Some an asset sales, in and have past. of sale we've We did XX% which past; which sale in of which demonstrated as average earlier simplification done be don't strategy. the the monetizations, that shares, Also this have AM and in we the are we land hedge of production royalty to to overriding our core alternative us sale asset attractive has NRIs is the Marcellus been the viable rank in a as for and net recall

above will reductions capacity cash borrowing estimates AR's cost further strengthen Additionally, flow and above. base provided the

price initiatives the our At available reduction we initiatives. spring. not support or next base redetermination, these takeaway LOE commodity had materially environment. continued refinancing important cuts. GP&T cost-reduction of reduction lower-for-longer key have execution well G&A we borrowing is The capacity Any could in liquidity enhance cost-savings abundant costs alternatives initiative, and the navigate The a to time our will on our announced spring yet

natural available, scale a Antero the alternatives it's and not integrated liquids an that binary a there's spectrum enjoys, gas situation. of For with producer

patient to the be will attractive price with bond as out, and initiatives next refinancing upstream improvement. the credits offer market that solid can cyclical our particularly over we year, play Importantly, rates commodity cost-reduction believe

With will now that, over operator the I the turn questions. for to call

Operator

Instructions]. [Operator

comes question Welles SunTrust. first Our with from Fitzpatrick

Welles Fitzpatrick

Or talk the 'XX? Dom And transient? something to see forward? have think at through 'XX, volatility advantage you you of continue and Can in South it developing ending as will you dips going is those MX. and through recent year obviously do hubs X year-end guess that volatility see guys You taken you I how

Paul Rady

the for will There's It there through pipeline systems, things in see little will still year-end think MX market. it a lower Tetco resume a I regional example, South, with shutdown probably some we resumption. constrained Dom constraint are being, at capacity, a 'XX. Tetco takeaway the in that probably the continue but bit just

MX a or the think of widen there I the that premium shippers, distressed number then because spreads when a including to ourselves, the up gas at bought gets move and Chicago it. gas to Dom are buy South distressed

physical then goes -- and then justify it are spreads languishes due and volatile gets variables and spreads down, widen it then don't when not the it up up bought to again. when constraints it's So then the

So weather go area that it's to is of comes on out until we down as and built Northeast pipeline that think pipe doesn't. it up there going depending or more and capacity online

Welles Fitzpatrick

in you capacity that that get And to some agreements. there's it deals? Okay. guys type of those is type to release assume environment, would be depth Do fair think able to more of you

Paul Rady

Yes, Yes. do. we

capacity distressed we're that collect some perfectly we release justify margin. the can So and and to or gas the spreads we've -- demonstrated the to and parties other willing third-party buy

of So at options. we both are those constantly looking

Welles Fitzpatrick

Okay. applicable about thing pipelines or X been And demanding suppose I or would me. then to maybe be the some And letters 'XX? by that? of less you can just trigger extra one something triggered credit last pay it's that to there's for could one that what but chatter all, should for we in attention potentially that another, is in that points 'XX be manifest

Michael Kennedy

looked agreement. to there are When of credit. we time provisions of The if we We've them the be our all what all about they were get that X the at would agreements. letters an actually our agreements, of look downgrades our of that the -- of through in at increase ratings there's Yes. downgrades, FT tie the actually have

where So when couple were to it's at. we XXXX we're a rated notch below back of

But about but of are notch here. million increases magnitude to you a little order now, there downgrades LC be now, of Like mentioned, $XXX from affect that we have million million, do $XXX be further about right bit increases. there's downgrade right would us. have $XXX So future, if could not would the those couple in it of the LCs, a of of to

Operator

next from comes Our Goldman with Sachs. Brian question Singer

Brian Singer

We where growth you significant a as see the that different out range versus why in saw saw of liquids to guidance? production NGLs can evolving next total the and pickup year? you mix you you weighting the quarter, percent growth Do of this a towards see XX% how a break through this XXXX and X% total

Glen Warren

focused locations highly we from X,XXX X,XXX on to Well, liquids-rich Btu.

of in to I'd over that expect year, steady say increase fairly be that range in just liquids. proportion next the seeing Brian. you're we it the So incremental And

Brian Singer

marketing cash in strip your initiatives, of or And to highlighted $XXX added million to benefits, some my and after modestly impact flow as full you you're of discussed beyond outspend multiple to the then of the Great. one-off range? million the today? expect And $XXX is, still follow-up you reductions cost-reduction commodity price outspending cost-savings expense, what -- assume upside drivers the outspend the do you the flow initiatives free cash improvements, of see does

Glen Warren

Yes. than that include the in midstream mentioned I baked outside improvements, and But that's that in. conservative, does of That underway well are LOE better the those even forecast transport improvements, comments, or those my initiatives there on hopefully, cost also -- other mentioned we are we'll cost do numbers. the numbers side. all And just

of having there. we're number discussions a So

improvement over So time see that you there and could well. some material could be as

Brian Singer

to there's the talked more costs, midstream multiple would of the And is cost well you if the area an point about, I you with the a LOE think or side? guess significant opportunity regards where focus towards initiatives conservatism for there more bake you in, that the of reduction

Glen Warren

cost and LOE. say would well both I Yes,

per well there. side, foot I think cost below getting feel we about pretty the $XXX on good

guarantee it on done, we'll of on There's mentioned that. -- hopefully, that does, be GP&T cost, a no We've the negotiation takes And all of pretty that outperform could time. gets but that that's but it over calls. any it And previous some place material. so

Operator

comes question Lilly Securities. with Guggenheim from Our Shahidi next

Subhasish Chandra

Yes.

that congrats cash in. eventful the question here. expense GP&T Subash the guess outlook to I guys, few very or all, of The say The first these -- so Sorry, range I quarter now? on first XXXX, try for get a I'll a what -- of is should production

Michael Kennedy

Yes.

but a there, out similar quarter. haven't third it's We to range put this

$XXX to I $XXX million million. think it's between

Subhasish Chandra

maybe, like on And to -- of more broadly recycling to side, that. press was could more be sort water XX the XXX% Okay. goes lot regards can it you it than much a the applied looks with XX. how And isolated somewhat that

So the the sky what pie eventually on handling? could water be number in a

Paul Rady

it site, and I of certainly as but our and Well, water. Subash, produced could on, within blending much all think see planning we so flowback takes XXX% of as -- our

right think just are We frac steady now, And now, as roughly state XX,XXX X back day. quite keep flow day. teams crews, produce it. getting barrels XX,XXX our a X at barrels so that handling And I steady state With production that crews grows, our a operating right better can well. the with we're

I spreads, production So as to be And above barrels X that of all -- I we're do $XX now. Clearwater, into have a we'll varying little be think think and it's produced more our there'll in And to we getting forward, that's bigger flowback. that's including be base, $XX, a going X go was the achievable we mid-$Xs and XX,XXX down water. that old and achievable, produced it between LOE barrel, a XX,XXX frac

could there bit the a quite certainly, of savings, be million $XX above a year. So

So feel that. about optimistic

are between we are Utica it's $X.XX that and a injection injection, Our it's pretty and cost, Right the barrel pretty, since to injection site. barrels trucking take now, low. about it's pretty a day. low near X,XXX volumes They under

do we is remarks, anyway, XX% about in release in of LOE. said think that our as So press or our LOE our and water we've

make the we So LOE. on can side, that as strides water we big reduce really

Subhasish Chandra

discussion. kind markets alternative Are there the final there And FERC-regulated money FERC-related LC the back offshore facility? the pipe do -- to seems producers like from explosive on It put one with away seem that be out in alternate of credit to able to markets. Okay. to

Michael Kennedy

point. good a that's Subash, Yes.

-- there something that. we out some order to bond in into market LC are requirements. satisfy looking is There's the those exploring are surety We of

do LC offset definitely So that downgrades. increases any get we if could

Subhasish Chandra

you. Got

on -- you'd So amount, wouldn't on it incremental you current that amount? the a... do the Is

Michael Kennedy

surety we bonds could some our actually existing or well. could LCs that We as with replace do of

Operator

Stifel. with Jane Trotsenko from comes question next Our

Yevgeniya Trotsenko

Maybe provide My color we some on driven could production that strength outperformance. year-to-date. have is has on what question seen first you production

Glen Warren

well seen we've Well, great year. all performance

beating. of it And getting so what on down just part is expected. that's sooner comes than to, really wells it And those

we certainly production the drives out everything the beat we a when that higher. schedule year comes So our sooner quarterly on production from timing budget. budget standpoint, in the and for And up

well a and those timing. X, of combination So performance it's

Yevgeniya Trotsenko

oilfield second My is question it. on services. Got

So you mostly reductions. just of savings, initiatives. service cost kind well savings you to And can I'm highlighted of cost are like provide driven well Appalachia. are which by maybe just how much curious self-help oilfield deflation, related vendor-related if in cost general comments on any,

Paul Rady

Yes. involved vendors, deflation them are vendors cost of with There's a now. our and and we we've number and working made contacted but several with give to that us. And months for many definitely for are extensions contacted, through for willing all We've requests asked with, and forth. hundred have And that been virtually, we've discount. then the to certain all next a year, them and rallied been asked there have

boat. all that same interests in feel we are so And the our

very so And active. We're to definitely continue want they with work to us.

they've to cut. been And so willing

And so the for we sticking that feel future. foreseeable good about

Yevgeniya Trotsenko

guidance got And you this provided vendor-related for cost include XXXX, cost any savings cost it guys to it. reductions? Okay, does well then related those well

Glen Warren

per now. all in No, realized that's We've that's in. about savings there well baked that arena in right in those already $XXX,XXX and are baked

lower. would reductions take numbers any those So further

Operator

David from with comes question next Our Cowen. Deckelbaum

David Deckelbaum

lateral addressed the since -- very 'XX? above some I been an 'XX like have? XX,XXX while, I now. the in can saw length program, feet of also on you capital I million that terms land match that You length you a And long-term guys do you progressing laid of how think, with efficiency a see that's $XX you projected look guess program and up how lateral 'XX. it's out beyond average where in spends improved at you

talked to you interest the to progressing efficient beyond that How lateral have think length land get on spend do discretionary I next right guys about over years. of see you to working kind several basis? remain that the 'XX in before

Glen Warren

And sort XX,XXX the get years. laterals I of time. over do lengthening We we up the of the over continued into think next see range several

and Of XXXX. are There'll we be course, X,XXX-foot -- there'll range already the But a there. also that a the of in the is average And XX,XXX lengths few XX,XXX-, there years but place. the X,XXX- land will in be have laterals. of peak next XX,XXX-foot over through be kind lot range of at laterals,

position. We have land a very consolidated

we that $XX feel we of already any high working interest keep high and like need drilling. interest, us of million gets add-ons in neighborhood what in have So sort very our we terms to very working

David Deckelbaum

source now portfolio fair the can Utica lot just Also, a about about Is think impairment, and it Can you just now? development enough. not Okay, you a how something hold to held you how that on of know for whole curious, while? talk there. I you'd asset become funds? with management? of it a Just that's And would square that

Glen Warren

Yes.

it on some have great strategically just value. but it just, change mindset does tremendous It's the There's some up-dip asset -- gas the at completion. next dry doesn't locations of in so an water time, the you in gas new a low, and to it optimally area, costs able this your our point And drill you're was there use flowback accounting course, locations. this your all to environment, in liquids-rich makes price very keep adjustment, course. Of when low same over in sense option

those So our in the sense makes the Marcellus important Utica, for are now, to locations keep the are that it but inventory. just rigs in

David Deckelbaum

close could just with one if And more. you out

still saw are spend the projected they Just on. effort on buyback going Obviously, at quarter. share this -- you side some

lender welcoming by your guess, I increased, RBC. have commitments You

corporate are cause debt or perhaps I a you revolver, shares? buyback the all guess, how a some to bonds use leaning funds? of trade Some share that discount. at conditions And I to on the guess at the do either your I now buy one of obviously you about look as think guess, good back what

Glen Warren

flexible quarter We and picked last here on a up remain were to few the shares. in that. want We opportunistic

see you'll prices us be commodity and see over time, cash to program think not stronger I going heavy flow. we a do until some better that but it's

the option have well. the and got to as for you want over see some we plenty of sheet, may us balance certainly to liquidity We've buy that of time We So back bonds, preserve do that. primarily.

So bottom the opportunistic, think, we'll I be line. is

David Deckelbaum

Okay.

is the of offset employee just the to is now, So buyback it intended -- programs? share sort dilution natural from

Glen Warren

No. to levels. a No, of opportunistic very just economic price these at of shares, kind and do thing an buy-in it's it's

Operator

comes Goldman question Blunden Next Karl from Sachs. with

Karl Blunden

a your The your if be patient? come together? turning you to the thoughts to debt some comments the before for unsecured more the on need Or the how just addressing of perhaps solution I I'd you and addressed sooner on the your on with makes open comments at those, suggested any the XXs balance XXs do And interested secured you markets be sheet, in time looking XXs, challenging, think them XXs, to in up about -- up? for remains maturities, you think market potentially interested that. and or between decide waiting be so attention then what addressing

Glen Warren

afford we the be news can Well, to is good patient.

We have time. a lot of

than quarters. really for bond few you So down haven't for seen even E&P more market shut the a

not, not of at And them. but on for say. we're don't be will this think at depends or out last over the of a But as time. things And market to that on look play we year, it. maturities, for secured we look kind on patient those both let's bundle, of sure, we afford how whether a both So can just we

just market when it, ready kind something be if and on have these and attractive. fluid there's very dislocations, situation into get you be to So stay of to execute aware top it's you dynamic a of

Karl Blunden

bank it taking allow think Is the tends maybe you about basically, to that closer a it, But when the have be that maturities, to like That it's maybe months, flexibility? makes anything your a part? XX fixed XXXX sense. a I'd more keep and it clarify the at Is months. that. that. kind when your about Or to required way to be have market -- look you less you Then window you in on look more start XX nothing of time, move to interested about make right or think that whole the

Glen Warren

Yes.

of out like your current sheet. going it. I you'd that's I think think good way to on stay mean about a balance to

way right. that's XXXX So anyway, about the that's to the think

Operator

comes from Sneeden Sean Our with next Securities. Guggenheim question

Sean Sneeden

doing small you like what of kind that, that is of it kind implied there And market of roughly $X.XX. the I kind winter, end over on kind the I that to? FT is could is the charge guess of guess monetization pipe the guess I you're looked going share

curious kind opportunities of tougher of kind kind decision? winter? Just in-basin commentary kind how of thinking Or dips that we should of be a drove that. that that of around beyond about just function any this Was

Paul Rady

buy an extended we that to did it in looking agreement, direction. sell management AMA, we're to out the those a and manage to here time. X the period, do is choice at and all over like it distressed Sean, in or asset for to ourselves whether sense Chicago an or X something And lease and from MX gas, pool go months the third-party moving Yes.

And so that's right, roughly $X.XX.

a we for so pretty there -- good and market out there's And capacity. release

that could so they And lock them others the in. and saw the in forwards spreads saw

of go let to decision the made we those mass. so in And

in be Rex have, Westbound a over And Scottland market. so would it MGT NGPL Illinois Illinois, Chicago of and with path and connects that Eastern Clarington out we Moultrie, the couple into of and the pipes flow

into generally the gate. they're So Chicago City

spreads. And good so

And quite working been so positive the think cold with parties And so have that. this those weather, they're I doing a spreads lately bit are well.

we what all at that's so And look the time.

looking the were the sell and own the that sublet buy it to want quite very often. at day We're some or of for it we emerge and those spreads way. some the as ourselves for up marketing make whether for gas best use on expense so or our gas period and And -- realizations

our have choices. So

Sean Sneeden

sense. talk to versus would you has of been sides? a FT guess Got maintenance of of kind about for on cases, the a could any case, little I more how I renegotiate producers to that. go since about slowing about kind how makes maintenance kind look the And rate think And the it. both filling with capital That you're ability you side market that, to cost about improve of specifically, AM, with bit kind And you just wanting of guess guess along it to as more is I like guess do down. think there then I thinking

Glen Warren

Yes.

table, line GP&T all item. said, As the the on that's of expense whole we

we're So material on least to talking players. that, all the everyone at

forward, path the laid on kind out. -- we we that So of

the sense continue it for to XX% Well, years firm of we that to case. painted at firm there's deck us made I to up portfolio, without think the this in transfer. X% where it cost a of quarterly last was to next in modestly August grow and of changes that's roadmap X, picture over the kind the any fill still the release, couple transport

reshape FT We'll these prices tailwinds prices nothing's we're and news or now, So gradual we that on. that's there, earlier. mentioned better have a change. the if are where take negotiations to slow I are lot to is where makes and a to good us don't it profile commodity does as of take and enough the commodity sense portfolio changed path it right bit leverage looking more The things a on growth there see that,

to NGLs, year, every XXXX, we For In goes flow pick change and cash in $X up up that there. of million next $XXX from million XXXX. $XXX

of important never price lots a And There's changes. situation to leverage kind that's here. of know. So to static these

Sean Sneeden

shy guess Got it. Glen, And Slide more should that? just kind That's as remaining of And think capacity. thinking you're kind XX, your Or I kind first-lien for of beyond you me. that there's is? of about the of on it you then of uncommitted stays $X of highlighted lastly I helpful. just we kind capacity, be billion first-lien assuming borrowing base as do know

Glen Warren

second downside that's $X.X There of billion just little capacity, -- but reductions. the off first-lien could that a be of also quarter forecasting the the of bit borrowing the base. think we're borrowing what are, cost current look to markets where are I there's redetermine, upside it when Well, base, next would a depending in these year on where with banks we lot the like

the more cost we the the base that borrowing enhances up with, side. reductions positive that to come So

to there's course, that, of first lien $X.X beyond that's good lien. And that second call or think it. it's to capacity, want number you whatever with. whether a And work I billion So is always additional borrowing asset

a quite like exposure the is there of a bit with Bcfe in and this capacity of scale. company liquids that, and all production a day So the X.X

there. lot therein, healing patient being we're why the about That's and of capacity bond the borrowing a market hopefully. So

Sean Sneeden

Got it.

XX, So for not it's maybe the kind base? is of billion calculus what you're Slide necessarily bond kind is mirroring on which doing of the indentures, on off the $X.X borrowing

Glen Warren

Correct.

Operator

from Our Betty comes next Crédit Jiang with question Suisse.

Betty Jiang

on understand that many And trying There line, agreement to the opportunities different? is so amend or So conversation cost? you and GP&T elaborate that you're currently certainly AM entities. the talking to we counterparties potentially can are with whether in are just extend something the reduce pursuing other about or

Glen Warren

service both as And we all that. all parties, a that. with, do those party of I all ago, minute the side midstream side, on that the also of then and of Yes, it's every it's on mentioned business transport provider processing

in So we're having those with they're discussions parties, business, all overall. partners the

So having some make we some healthy will that. think progress discussions on that there we and pretty

think focus, I on it. So amend about extend that But there. a any is a is to key but elaborate and particulars way good can't

Betty Jiang

Like any are is we sense it of you provide? here? can thinking about of magnitude pennies, nickels type What sort that

Glen Warren

say be could material. it $X.XX is not material. but No, I'd

So larger than that.

Betty Jiang

put on has on just follow-up been by rating negative Antero then you've is -- been agencies. several watch And my Okay.

for to company how XXXX Antero conversation And looking downgrade? and address does influenced thought with are in to the plans what maturities? they just from -- credit the their So avoid understand 'XX your get trying by potential them, want the to process

Glen Warren

Yes.

and So future address made that, locks really side, which to recently, flows. do asset your are quite hedging It's on the side and cost you reduction sale anything going Betty. of XXXX all you cash once a how it's are bit maturities, of side progress the also to or going for the there's we've or again, there down prices

in get of today. topics So market it's those discussed all the that

Operator

there at time. this it are Kennedy for no questions further gentlemen, Michael remarks. closing now back turn and I'll to Ladies

Michael Kennedy

Thank joining you today's us call. for conference for

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

Operator

Thank you. parties a All great disconnect. Have This concludes conference. may day. today's

Antero Resources (AR) 30 Oct 192019 Q3 Earnings call transcript