AR - Earnings call transcript Q1 2020 | Antero Resources Corporation

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Operator

Greetings and welcome to Antero Resources First Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded.

to Senior conference Vice like host to now Kennedy, Mike President would turn over the your I of Finance.

Mike Kennedy

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

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

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

today call me on Chairman Dave Glen and CEO; President Paul Joining the and Vice of are Liquids Transportation. Rady, President Warren, Cannelongo, and CFO; Marketing &

to I now Paul. call the will over turn

Paul Rady

Mike. you, Thank

cost number the momentum all cost across discussing by reduction Cost titled X, Slide start Reduction detailed Let's on of Antero’s Momentum. structure

budget. roughly in relative approximately an cost to resulting levels price that better well wells our activity based XX align have half to reduction XXXX well a initial flow. feet. on assumes average per completions come with deferred well We lower XXX XXXX cash $X cost with commodity environment Over from well today's completed costs updated are reductions driven length total and our from This as $XXX we of AR’s savings plan to to of expected in development million XXXX XX,XXX lateral XXXX in plan depressed equates our million

expense, the as XXXX. total, Lower G&A expect XXXX operating of structure million net $XXX up in to and million. by In and our approximately cost capital reduced midstream compared marketing to make we fees, be savings LOE, remaining $XXX

Now, more number continued savings Reductions, $X expanded by and water Well to which granular well let's operations a $X.X step-change little quarter, Driven get now titled improvements targets relative our our deflation, blending well a targeting Marcellus slide for service an well we X, first completion our million efficiencies with during per to XXXX provides million a cost Cost the Marcellus lateral, update in foot drilling are budgeted and cost XX,XXX costs. flowback

XXXX side The left illustrates well foot. costs of lateral AR's budgeted per of $XXX the page hand January

averaged during well XXXX, were footage per targeted of AFE day improved and deflation. cost drilled foot from announced we savings completed costs quarter the AR’s $XXX service the stages per As represents first our of day, this of $XXX per exited year. foot driven March. accelerated primarily by These month $XX This lateral improvement earlier more previously per also per approximately a foot

well expecting costs remainder are $XXX for foot per XXXX. of We the to average lateral

and costs lower. and titled slide well discuss our gates Efficiencies, more Drilling X drive Now completion helping Completion the detail turning are number to in let's that drilling Marcellus efficiency

portion a drilled in foot During We day days averaged case well, per XXXX the the when the to the have an drill XX% first we feet only of to from spud XX,XXX increase rig lateral lateral sideways quarter, drilling to average. XX.X compared release. averaged X,XXX

X.X increased XXX- per our averaged been average. XXXX of completion XX for crews increase including X.X to Antero most relative stages now an to the day mesh the has reduction at a day, in an stages. Further, used water moved stages in XX% week, quarter, sand during an day fresh the mostly stages in Last efficiency completions per completion our three to average record our

to to we we lateral $XXX per XX Finally, our costs a next months. foot well believe over the have pathway take

team job profile delivering optimizing These operations reduce has us our allowed terrific efforts and operating free million a drilling Antero’s completion maximizing cash $XXX flattening to done budget capital integrated reductions. our and now D&C our flow. have cost production to and

you Cost see Savings to Capital. can titled slide number Momentum X on As Leads Lower

quarter and and continued service subsequent below capital below of three February two in the each in broader rigs in initial and XX% deflation the XXXX drilling the completion spending new cost budget this a capital Our XXXX the of crews year. second reflecting budget efficiencies, set decline XXXX XX% budget the from quarter. in anticipate is capital We impact release

Importantly, $XXX prices. million cash projecting we in strip of based free are today's XXXX flow on

his With for Transportation. Cannelongo Liquids that, Vice it I'll of turn Dave to comments. Marketing & Dave over is President our

Dave Cannelongo

the update and refinery pandemic stay home in-basin fuels, dynamics. have market transportation an a in in impacted on for Thanks, decline The Paul. dramatic providing order I'll condensate begin nationwide demand severely resulting runs. at by COVID-XX

turn reduction from basin. in buyers of We the a purchases traditional witnessed in have the in condensate Appalachian oil

has constraints. capacity. Prior as pandemic, a of expanded our and had shut points Since in base nearly then, in-basin storage as or as COVID-XX curtail diverse developed our well the and AR storage offsite To-date Antero to any to set not had customer we capacity. result of buyers a sales doubled storage have production

confident sales we and our have storage at the We through capacity produce firm at full place in summer. wells that to the least are today

expect and restored secure extent before demand a will great the impacts to additional be our to storage sales, at any we national significant would see Antero Due production. to proactive steps and to we that regional taken oil

to on for prolonged set $XX.XX the with long how at on production are two place an still remain oil in hedged minimal home impacted at storm its uncertainty but up about pentanes production XXX% weather destruction is stay AR oil, is by period. the price XXXX, for a barrel. Importantly, mostly impact demand in we COVID-XX will mandates There reducing of per average demand our and products

highlighting demand Now much in discuss X The to COVID-XX. demand NGL activity let’s of NGL environment. like with in has strengthening as the February and during Slide commercial as the have WTI the led Asia less oil markets since nearly decline macro left lower for countries compared since demand products Global page. LPG impacted NGL for the shoulder and of a significant the government on further when the turn been is LPG economic hand petrochemical on to and This shown inelasticity decoupled and prices subsidies are WTI as particularly has season occurred NGLs in strengthening side for by has abroad India. weakest. evident coupled from of NGL of NGL has global the relative supported prices restart to prices in U.S. the prices percentage refinery to when WTI production doubled a the residential basis historically

hand activity illustrates and The of bottomed as resumes. Asia continue have recover page right side which economic the to propane prices already

is well export we through have East markets positioned Antero to on international any LPGs. access to with not impacts Importantly, ability Mariner seen our X where

destinations prices ability a priced As has including markets, of the in most the strengthening favorably Antero to advantage based adjust cargo on taking Asia. reminder,

Consequently, has to has as slower with XXXX Meanwhile, economic propane LPG Marcus Antero in as targeting recover activity a prices net its AR current return cargoes. our Europe per destinations in gallon at exports strip to European was of or essentially yet $X.XX have Hook, remain had way storage all meaningful XX% projected prices. of shipping, at above been discretionary Asia elevated. levels

the the result associated of more But is American side supply equation X, as to decline NGLs expected story, production the gas gas is in significant be pronounced associated with with to production. to Everyone in in is of impact move decline decline the in oil we NGL that North next associated familiar Moving on is even production. production into expected Slide year. associated the the oil

summarizes NGL drilling is X today. of outlook. steepest in completion macro transportation are Oil seeing opposed the shale as of U.S. number demand fuels. the by which driven where drop res/comm two-thirds NGL is and and plays production, it resilient Meanwhile, as comprise to we petrochemical is NGL activity sectors Slide

associated for sets in NGLs NGLs pricing In a NGL continued resilient combined U.S. improvement. associated OPEC+ with for and global summary, well demand NGLs the up the decline

to years world's was waterborne barrels the timeframe, lower been most in to OPEC+ critical by the of U.S. global responsible has for oil analysis markets, NGL of prices in global XX% look our U.S. provide day residential, per growing. the incremental for imports growth of XXXX XXXX last both U.S. XXX,XXX strong NGLs and the recently satisfy this the we an NGL and With markets several by LPG XXXX driven in production and petrochemical resulting of U.S. decline to play markets. excess LPG LPG begins world And to period updated saw now, supplying expected a commercial similar by precipitated and to NGL prices For and quarter, anticipated out well to production. to declining fundamentals backdrop recent scenario in be the over most

turn With to Glen. it that, over I will

Glen Warren

that spreads. the macro encouraged dramatic natural X, Page we’re into of seen year XXXX X frac the the Slide you, decline by Thank counts Dave. also -- industry outlook theme Continuing outlook in and the gas and for and on rig next macro half second on following slide

in lower exit X.X XXXX term near the with in driven to oil Bcf natural to than substantial aggregate by end are day, Supply Bcf day year gas shut-ins. production X.X is a declines more forecasting further extend impacts exit the expected a XXXX. XXXX by

a and extent gas duration than an a will undersupply XXXX be to certainly to impacted by into end global the market short-term expected is demand from more lesser be of oil much XXXX. leading of pandemic, While to and it in be

highlights just XX% focused and counts seven XX early basins number eight in in weeks. decline Slide since oil March, sharp horizontal the or rig

Note activity associated oil months, reduction this U.S. substantial produced NGL This On XX% a XX% spreads undersupplied focused natural dramatic can in gas basins. to in of decline oil associated two number XX of have decline the XX% volumes in basins impact U.S. the total on you fell just focused the in crew a gas that five see XX% a Slide decline sharp whopping NGL to supply shale only natural leading and week, will and markets. XX frac that supply.

by to locations superior depends NGL of in four volume XX% comprise production dry dry which our up pads will over may to acres gas Antero our on in is higher gas the and roughly The X,XXX are XX% develops. dry gas with We positioned plan. Marcellus XXXX Utica those and the story drill development gas pads which XXXX substitute shales. how four Ohio well benefit in Ohio economics almost to Utica natural from gas prices

Substantial Turning liquidity updated to Liquidity XX outlook our number and slide illustrates which forward. pathway titled Enhancements,

approved was lender $X.XX billion facility First, since commitments the $X.XX few at of credit borrowing base in well ago, of a excess under our days billion.

this reminder, gas a the redetermination the XX% midstream bank Antero As following of decks in also curve Midstream on and and XX% price curve. natural across about marks based standalone significant the in March reflects drop a XXXX deconsolidation financials bank and oil first from across simplification the

You that in can see appendix. our

AR hand side of billion as the March developments, which liquidity on these of on dark $X green this shown page. of maintained left Despite is bar its XX the

plan development free position. our projected that generate of about is updated in $XXX XXXX, Paul flow further cash Our to improving million discussed liquidity

million the quarters $XXX the of last we because have three that's Here just year.

as with of is our updated XXXX, which handle see just have in liquidity improving $X.X generate under to value flow on Page the plan further total both to end $XXX of the billion asset have in a million our execution hand at can XXXX we program X.X XXXX maturities XX Our of cash XXXX you position, liquidity side sufficient billion $XXX at million, March par to more sale year would over development assuming that XX. up than right projected and

quarters, on last at million average debt repurchasing proactive have Page million discount, debt to $XXX the of approach repurchased we a been and XX% totals million. net of value XX of $XXX the remaining is notes Over The shown a debt right to and thereby $XX notional senior billion. taken two hand side total interest the weighted by the of by what expense XXXX reduction, to-date $X.X reducing has market XXXX

million. On to $XXX to continue focused the executing of $XXX our front asset sale range stay on asset target million we XXXX

in Slide Sale number a see options Monetization Set, to the can have we XX market reviewed of which available multitude Opportunity you us Asset we've past. titled with the

market backdrop created recent outlook and XX% volatility a Although for has catalyst to the the rise provided in has gas a improved NGLs natural a challenging market. strip

counterparties. several substantive with We discussions are in

this targets remain our asset will year. we that confident achieve So sale we

move track on selling Page gains generated have net of Protected hedging Price let’s we long production forward billion XXXX. $X Now of Weakness. to has record XX Near-Term for as and Gas Antero hedge Well titled since cash a

hedged its expected $X.XX XX% at current MMBtu. natural pricing. XXXX has above with XXX% natural expected AR For of per strip well that's MMBtu, also AR is gas XXXX $X.XX at gas XX% hedged production production hedged per in

We began price of natural XXXX gas $X.XX production our goal BBtus the of a average adding natural per hedged also hedging per an production, we before at day gas natural MMBtu, majority of projected XXX enter XXXX. gas hedges of having with

XXX% and above slide on XX, and equivalent prices. XX,XXX at per barrels oil and production number total barrel, crude on strip of oil see XXX% can pentane hedged hedge significant per you is current position $XX.XX XXXX day nearly oil As or resources

will to opportunistic continue natural gas be strategy, liquids hedge As to our forward. we is and to profile adding core in our going

recent In sale enhancing successful in liquidity was an provide profile. borrowing alternatives base until manage refinancing note will asset our of to upcoming redetermination our The emerge. senior conclusion, maturities step important sufficient liquidity program the execution our

capital even flow cash commodity today's this at free strip. estimated in million budget at year, to puts low reduced a Our deliver substantial position us $XXX

flow Further, $XXX maintenance Bcfe dry spend X.X cost drilling in on of focus structure we depressed, our If maintenance day just around to at to liquidity per XXXX. free our in gas results preserve inventory. remain flat plan lower XXXX increased volumes in an average maximize to XXXX and hold reduced capital level prices commodity at with cash million

close I'll their during pragmatic the unprecedented for the pandemic. these we response current employees by uncertainty and in times. to driven to thank would I COVID-XX continue out be of to diligent our dedication by saying And like all

turn questions. that, operator the With I'll call the over for to

Operator

[Operator Instructions].

Please today question proceed Weil. your Stewart from comes question. Scotia Holly first Howard Our with of

Holly Stewart

can talking Paul maybe bit just little you you're how a by thinking off the or book. Glen, about start about hedge

hedges. just curious of ‘XX evolution? We how It million. some off monetize its peers to their is thinking that of and one You fall But your about portfolio a XXX have saw back ‘XX. looks like do about in you're

Paul Rady

enter evolution, to of of Holly, of continue hedge hedged will prepared much gas be ‘XX. by terms in we our production so our expect or we time in cal as remarks, it our Well long-term and most to said that we the

think on we're so -- have just Rarely to we monetize we've As ourselves have and hedges. the done monetized naked. We've downside. lower before. left at and you hedge know, repriced that monetized Instead, we’ve afraid not protection it a we the I book price strike still

possible, necessarily So, active idea at that's that’s although an the moment.

We the move enjoying up. curve are

As ‘XX into up positive through and that’s we move you ‘XX it cal seen fundamentals. cal think by you've and and know, underpinned

in for we've though go hedging more we're even been it a little to up and in first rooting we the bit before layer So, quarter, watching anymore.

and So, no monetize this pretty point book our comfortable at active it. to with hedge plans

Holly Stewart

the in four Okay. pads different dry then talked maybe, And you Glen, That's Ohio area. the about great. gas

this some ‘XX you Can of about maintenance the right the TIL give XX% maybe color guide sort said comprise at you think ‘XX plan in of us at point. now? that that around I level

Glen Warren

talking that's and Yes, we're substitution about there. --

So those place pads had schedule. yet, We've would that to gas the Holly. made rich move the on decision that of take we not make the

optionality stay production gas Bcfe we maintain NGL may XXXX want some we're flat day. it substitute on wells As XX, to would at the in, to develop with next But turned X.X pads. pay XX a for the in year us to line dry still about to stick see you all pretty can in story. we but just And think bullish in course that our

will tell. time So

Holly Stewart

me. final one from great. And That's then one Okay. maybe

on free maintenance you've point have Just outlined, cash estimate you do highlight? to flow a this plan at that

Glen Warren

For next year, Holly?

Holly Stewart

‘XX? Yes for

Glen Warren

for you capital, pretty If in went neutral flow. to think XXXX maintenance yes, strip using we're I current the cash

Operator

The David next Cowen. your from question. is Deckelbaum proceed with question Please of

David Deckelbaum

your that on then -- Just strip, maintaining I it current that But question, that next just been and $XX of wanted that program. right for net trade would firm Based year? where there's there's transport seems about marketing you're to right a on follow-up like planning obviously outlined leaning know now liquidity off to it would Holly’s now in commitments you're to here. like volumes hold would in the be based capital between is the maintenance be terms slowing down how seems million But thinking flat. course increase current better rather you equate expense. on the Is last strip?

Glen Warren

Yes.

more. and -- we new is do we flexibility ran and leaves prices that And $XXX right? the gas course. will lot our of we can even have, But as for up that accordingly what net in given right capital plan. NGL now, that's but while us message significantly we stay strip, flat, we range that down And and we certainly marketing best gas a that's time said million release had the again, us grow indication So of come us if the the have we that's -- current if plan natural over adjust in from expense we think key that, a -- the I it into more, and with eventually.

David Deckelbaum

XX into about I just guess think are being assuming rigs executed a per to times frac efficiency to day this crew? you continuing able as capital more faster you ‘XX? with drilling two progression stages frac Are you XX and accomplish -- wells that

Glen Warren

really not No. of That's part it.

other down further. underway the we some that think cost have initiatives We will bring

but momentum. to the point So is yet not today, there's talk ready continued about those

lateral cost haven't We on hit the yet wall foot. per

David Deckelbaum

per you foot lower into million? $XXX cost have do But baked it. that Got lateral

Glen Warren

do we the assuming $XXX It's foot. not. No, lateral per

off save next another, would year. how the to So if we million that much probably million went $XXX million, of $XXX $XX

David Deckelbaum

Okay.

XXXX, how decision this a $X.XX to at of the some collars me. the of putting fairly you Haven’t $X.XX on natural of you developing? to hedges driving gas. thoughts seen was bank painted some that you constructive Just Was to added or instead you What kind The the driven? with $X.XX going market differently behind hedged down picture that upside? one out it saw before. guess layering was in from what's the at hedges times I last

Glen Warren

driven, from I saw opportunity It time you we were go I Yes, driven and moving it as prices during the think up. -- it bank we that for it probably watching -- well $X.XX. went just and wasn't the to think rooting $X.XX to was

saw hedges. to there we the add So more opening

that haven't level before. We hedged

they collars, you course, are two of As know way.

so a have you collar. the And floor in

If you wanted then be midpoint, -- symmetrical you lower. the $X.XX if collar as -- then your it's protection were or the in market if is going know a downside $X.XXs to

a so And for to more just production a of our strategy defensive be stream. portion

So but as you and fan just keeping much highest the the protecting give yes, fit bill of floor the for. downside. on they in quite lock protection we’re to on swaps simple don't the you the looking generally upside it they case been for quite We've collars, a straight for more in part

Operator

is Please Sachs. Singer of question with next question. from proceed Goldman your Brian The

Brian Singer

spend Wanted positives are the one leverage further hasn’t on three above I further materially discussion. you here, gas and there, prices third there's is, XXXX seems It and spend and strips would to potential maintenance? gas for is and And been above in my upside maintenance the of refinancing these need sales capital maintenance higher refinancing the in but factors to debt. that Or follow fully the you asset on if of then rebased, the like up XXXX? each guess do question the leverage, the await clarity

Glen Warren

most -- above I'd say maintenance any in we it's spend case. unlikely

generate can. wanting So we we're free position cash in a of as I think to flow much

pull And top that multi-year So about pad move would above some Brian, could we be hedge XX at something like XXX $X.X capital million have you and then infrastructure very of and maintenance to us of capital. very, maintenance that. that's then, said, to spending wells have And on million, that each. and I it assuming compelling

instance, to If get million. be less would XXX the you it how that. a as that's to foot that target, we So reduce then than a XXX

budget not to right messaging the not increase now. a We're message there. potential that's trying towards in So capital

Brian Singer

how the come impact early shifting Great. and later year XXXX into well Thanks. completions impact XXXX XXXX you or of timing from then reduction the this And production the of the to would the can levels? discuss rig of XX late

Glen Warren

wells next this XX we’ll think I XX plus this completed quarter. we've -- Yes, quarter, complete second

in then and flattens the from second into there. So out you're quarter going to the growth third, and have it growth

So around X.X X.X your that And were exit right were Bcfe we rates day. at a this quarter.

flat profile relatively into way and it's So that continues a ‘XX.

Operator

from with question Please Arun JP proceed of The next your is Jayaram question. Morgan.

Arun Jayaram

guided if I XXXX. you was believe XXX about could us I -- think help to TILs you've for wondering

if color questions? get for a the wondering those to CapEx And for time the help about but We I we year maybe two a little you starting year? how that XXs Just -- completion this move on us maybe maybe down of hard there, you based TIL want could and would the guide our just pop crew your the completion also us math, see through did to to TILs. there? balance million reconcile walk CapEx the could but number you crew XXX that just we you do $XXX give the activity, in bit getting on with lower have to talk progression maybe just us in can maybe just using as of Because quarterly one ratio perhaps historical the

Glen Warren

a you alright? capital time, of there. first. year, help obviously, in carry you build year well to I that So the me lot have in occurred XXXX, we're if this Let there’s last XXX mean, in cycle line, turning over

that's of know by engineered this costs is all are, And We EURs well. our what we what know part are. our highly it. well So well

bet very in. can all you stacked So, it's

Paul Rady

heard to this of going first but year. the XX in last question, we're you’ve do if my the to know actually just Yes. And I don’t answer half

getting you're when XX. almost hard to That's there already how year-to-date. know don't we're pretty I So

after there'll that. going be then seems million XX it a from million there So about quarter to XX

Glen Warren

another XX we mid-year should get Yes, then lines, turning and almost XX. at

Arun Jayaram

to the going talked sustaining to wells program? that from XX the the number you XXXX CapEx does that include And XX call, on deferrals just on the XX

Glen Warren

them counting to what turn We're Yes. -- line. the year we year return time What them what we as sales. turned in we

deferred are counted yes, So next year. in XX, next XX year that into those wells or

Arun Jayaram

it. to counted including what would down. CapEx XX just numbers the included that coming would the we And estimate some costs the if CapEx XX be, XX Got just if those also the wells? Because XXX CapEx sustaining we carryover, in we wells, million, you under on sustaining your our are but quarterly estimate

adjust CapEx? just our to So trying thoughts on maybe sustaining

Glen Warren

Yes, are little just our a think lateral, I are simple type a pad expectation for costs. foot year, million X.X, of XX,XXX is bit is way close the infrastructure wells million to for well think over is for which rest XXX it about sums it pretty $X.X you average about costs now to and XX next

Paul Rady

that. million, XX million those about of it's also drilling that add that we helps go that think But if which $XX more is wells, down about that X XXX you than only -- costs, XX I’d so to And only million. offset achievable, you by

So …

Glen Warren

in wells next but And line will over XXXX. year carry another well obviously, we're in turn XX that also spudding

So…

Paul Rady

mean, that’s million, Yes. million grow interesting X%. number. I your XXX I And year this spending XXX an to mean we're

have flat. stay So know I to million spend XXX how to don't you

So…

Glen Warren

Yes.

a foot of changed that's into dramatically, less well. and an $X million XXX a half from probably that's about XXXX a well number think at all cost ago, I and old right. year going per

Arun Jayaram

enough. fair enough. number, Fair but Yes. was XQ It

Glen Warren

higher current to million. terms that million the of in level to probably of XXX number -- That's production XXX stay going flat higher maintenance, off at was It X.X.

Operator

Brody ahead. Gregg from of comes Bank question America. next Please of Our go

Gregg Brody

free your all flow for year, color. the this appreciate on Just cash numbers

breach. you little expected bit adjustments outflow year? few a a payment Just about there. Last from of then quarter rigs, WGL still there also from comment a And dropping maybe we capital what negative working is about of be should have that were questions thinking this sort may the about? you Is type can talking you

Glen Warren

Yes.

now. then payment lawsuit year, It gets for year included this before And numbers paid not certainly next that this but the that's flow free We’re year. cash change. right into working can exact. That's capital assuming that flow

Gregg Brody

much Is sense drain there that a you dropping from -- a would rigs? the us that how -- how much can be give should of should

Paul Rady

and factors to really forecast Gregg, we've a to really tried years we've just don't never equation, in of forecast a good able dynamic that such around a There's to that have it get our yet. in ability past that that. we lot hands been

Gregg Brody

the and and anything Okay. on out, front that should past. you sales, sort about, the there based the shown in think? with thinking you’ve investor pointed we of developing seeing asset that know moving that And just what's line to I be commodities Is front to interest maybe the people just on moving -- better of that that's happened you're than

Paul Rady

Could again, what…? you say that

Gregg Brody

a front what asset of sales the listed You’ve you line number is to think I'm curious of in moving opportunities? the off. do terms of

Paul Rady

Yes, that I'd Gregg. say we have a whole at portfolio this point, characterize of can’t really discussions going on, so

Gregg Brody

me. from Got it. one more just And

noticed through credit in should quarter. What up that to how went XXX and letters be play we surety thinking drove should a million that the the market, how year? that about the of Just this next about

Paul Rady

downgrades about that conference that That kind we occurred agencies talked -- and now. see number rating bonds have we year we did right it February brought XXX accessed of and pickup talked XXX actually that that's haven't occurred of in further million. at million down million. the call at where had the that XXX the we It But that end to that with January actually of it about in we was January, surety million We LCs any for the XXX from million to XX actually LCs. in year in February end a

Gregg Brody -- Bank of America

more I if just Maybe one can.

think year? next production mix to of about we should for how the changing here, program your Just today relative

Paul Rady

same. the It’s

Glen Warren

mix to much. very to of while an Gregg you for start take base, impact Yes, with probably a and we that would if change year, it mix really production drilling much wouldn't in a such gas until see big XXXX next

now liquids right still gas XX% range. XX% we're on and So the

Operator

The next Fitzpatrick question. of question your proceed comes with from Welles SunTrust. Please

Welles Fitzpatrick

-- to there? I company got override list a is kind is of could potential transact potential you Can just menu you soft the talk the or multiples that that hopped public into that monetization. those in the does in seeing like we're I with? buyers how have bit for mineral little maybe noticed of broaden VPPs market mean

Glen Warren

somewhat are VPPs similar Well, as overrides, obviously.

now, in overrides So move it But And -- we and the be eventually VPP the with things bank of similar I think is more assets very attractive are viable something just another NGL of with bit a really, rise think a prices. gas that’s and tool, in more it's it's market. nice out to that there tend and other in right tool we becoming market the more and too. chest all a laid natural strip along

Welles Fitzpatrick

Okay. just And on one buy-in. clarification then

So new XX I obviously slower with a XX pace guys that you a have little Am getting in? ‘XX to That right? turning bit like been the than DUCs, of two seems excluding wells has rigs.

Paul Rady

X.X that's more think I Now, like rigs.

Now each rig gets wells. XX you about

Glen Warren

pretty these by XX,XXX release We're so pace, just days now, rig the XX.X wells a foot hefty it’s better. drilling lateral, gets

Operator

to for no call this closing Kennedy are There like additional to questions remarks. turn the back time. I'd at Mike

Mike Kennedy

to for call. our conference quarter first you listening Thank

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

Operator

conference. today's concludes This

this disconnect your your may you at participation. time. lines for Thank You

Antero Resources (AR) 30 Apr 202020 Q1 Earnings call transcript