AR - Earnings call transcript Q4 2020 | Antero Resources Corporation

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Operator

Greetings and welcome to the Antero Resources’ Fourth Quarter 2020 Earnings 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] And as a reminder, this conference is being recorded. It is not my pleasure to introduce your host, Michael Kennedy, Senior Vice President of Finance. sir. you, Thank

begin. You may

Michael Kennedy

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

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

the call the Vice of turn Liquids President Paul. Rady, Joining Chairman Transportation. and Cannelongo, Dave will and to call now Paul on today are President Marketing me and CEO; Glen CFO; Warren, over I and

Paul Rady

Thank you, Mike.

over completion total Partners, XX% each X, of through affiliate in discussing XXXX Under drills Energy drilling between and a will and this well agreement next in partnership we morning. that with proportionate X, Quantum spud wells begin the drilling XX% and XX% Let's will of exchange in XXXX; working as drilling four January spud. were that capital that on an Capital, starting announced QL participate Antero Number percentage the of every the years, and fund formation interest in the in by wells capital for of Slide completion QL year. this of XXXX

ago. about So weeks as seven of

As years incremental you we side four result through can complete will over together. is next see on lower to the gross plan. over of XXXX The slide, XXX wells the being our an drill base right compared XX wells as initial drilled development and the

how on a unchanged from will and unique from benefit spending programs. AR's prior in to partnership. a capital basis, capital maintenance illustrates net remain Importantly, Antero net position our Slide Number production is drilling a X

undeveloped, acreage Marcellus premium, locations and inventory and delivers a depth, advantaged the drilling in later more I'll efficient the Utica, presentation. discuss X,XXX over drilling core have our in in we little Ohio contiguous First, footprint a that development.

Based in of well-positioned advantage core X,XXX AR minute. liquids our the undeveloped remaining that just core NGL recent of represent take estimate basin-wide locations study on locations approximately of remaining liquids a X,XXX these Appalachia, Antero’s the prices XX% rich Cannelongo Dave plus locations Appalachia. we strong in that XXXX we to over since the locations are premium Second, are talk rich, undeveloped will of in about

their transportation Third, partner our that unlike production. Antero allows NYMEX northeast based to This deliver firm to gross to we from cover unutilized indices, supports that to drilling partnership. all production transportation markets producers incremental firm gas and have premium don't have gas this the many of

often to due in blow prices. to have And gas low supply experience shut frequent outs, so, northeast and they basis

enhancement. Number substantial flow AR, already years, next X, fee incentive free with the in from AR pressure unique detailed on several the production drive Slide cashflow increase Antero established profile are from of which our These capture program gathering incremental low to our allow cash Midstream. rebates will Lastly, as factors, titled partnership to drilling free the additional over all

as drilled the put drilling in in partnership approximately red million left-hand premium to the the we net tranche drilling in, over fee incremental benefit the incremental midstream firm really of side expenses by transportation also and years. partnership fill starts by next This the to reduce million us XXXX wells to sales, our kick box depicted marketing unutilized page, partnership. from additional production XXXX of allows As of capture $XXX allows the Antero $XX the to drilling The the on incentives. five

pricing gas the and million of the $XX drilling And AT highlights We drilling natural drilling savings sensitive X, carry drilling of forecast fills base to based gross million on under volume Number of titled Slide $XX partnership are the to $XXX partnership of partner not compared production cashflow is as million. derived Antero’s and finally, NGL interest estimating plan prices. unutilized from partnership most very under volumes. expense strip AR's free the

gathering partnership, AR As you gathering transportation the program, long-haul titled incremental earn-outs fee more. previously in that thresholds Midstream. the possibly premium Slide additional totaling our by result X, Antero established can to see fill generated LP now the growth incentive with drilling should we achieving rebate The gross with by volumes expect million, were Number partnership summarizes XXXX. $XX

after estimate receive a that total delayed million of the $XX tranche by IRR thresholds. we will carry form the that certain on payments tranche, one-time partnership per in we approximately is one the Lastly, drilling achieving year drilled

this today expect strip lower we a year. price. is strip free $X.XX flow. from and this cashflow to in cashflow backward-dated That drilling two times equates in enhanced Now, billion free XXXX under free $XX to compared cashflow of prices per profile total titled If barrel $X.X CX+ is times strip to cashflow In through gas billion plan. $X.X cash profile today's Remember, through cashflow million, free flat generate XXXX free X.X This to X, on $XXX Antero the of profile. This let's expected is on results a XXXX, partnership our AR's base based based free Number over increase by to in to substantially NGLs. Slide held turn increase leverage prices. would

drilling areas. inventory Appalachian the discuss Slide Basin. in peer Basin Now of see holds our provides Southwest as titled Number inventory Southwest outlines we Of the premium in Ohio the and leading inventory, Appalachian core the remaining the In of the it. let's the recently of locations the technical that, we We within roughly Utica Utica the premium positions, which or which and total. analyzes on we Marcellus a undeveloped located estimate summary X,XXX X, Ohio X,XXX to estimate locations The core of also and XXX into those detailed well sub Tier us XX% the review X undrilled premium of Antero or red potential. premium holds the and total. acreage results acreage map. X,XXX the BTU, technical led cores This annual, bifurcate EURs. Antero XX% the in review identified are peer of premium, performance approximately of completed Marcellus, location locations, We've undeveloped

X,XXX estimate which Beyond are Tier locations there lines. can within that X located you that see are we blue remaining, the

the the the only You up made accretive critical can production, XX Appalachia this producers. red engineering locations to premium went number see all Utica drilling Antero limited are nots the and committed the also of incremental reservoir acreage a time technical of analysis. and of fatigue I’d teams and to like geology plan partnership. existing highly to with horizontal inventory partnership, our inventory map. undeveloped the a into which be will that Land, is thank Marcellus across covered development premium and lines drilling wells, with Antero’s we the effort the between drilling believe much distinction Ultimately, locations extensive delivering haves so-called GIS, that for have rigorous on and

Marketing job an advantages critical his This as Antero’s and that, comments. level process. President With more turn future. we done to Transportation, and strategic Dave of always Dave? that for details Our optimistic people over analysis peer providing look decision towards competitive have Vice our it Cannelongo I'll exceptional even basin to us our making about leaves the are Liquids,

Dave Cannelongo

Thanks, Paul.

begin Let's NGL discussing this and by LPG winter. markets the

the a have markets demand supply strong and shale, market supply the we with LPG refinery demand underpinned and winter U.S. and to exports, the lower titled record propane the in residential, in setting season Slide LPG For levels commercial from number record the rate barrels Despite a fundamentals. propane experience basis, illustrated several of withdrawal crop last XX, imbalance in talked entering levels and petrochemical by near propane U.S. and inventory runs. U.S. inventory on about early Due drying winter. lackluster saw in we LPG for mild absolute international OPEC quarters, market an as

export quickly which hand of as weeks side absolute the few supply months XX% XX the lows inventories to propane impact record ago in five-year slide, only LPG The levels is inventory range here. left-hand below from this of number in basis, slide, of on bottom as been of high in the illustrated the range U.S. reached a LPG have days Slide today. record of drawing went the side that On of also the days production late average. five-year of to the a can illustrated U.S. to you capacity material on On XX titled supply five-year recent right the see the of allow NGL to XXXX export the of new addition levels meet demand, the end just

slow Texas prices down propane yet Mont U.S. of winter for responded temps As inventories coldest come, the in inventory not year domestic to com $X.XX November in per the level. export an low the high per in gallon gallon flow stabilized that for winter the attempt preserve in trading in in over went res as level plummeted in Belvieu, to from levels the with yet the $X.XX to and result have as was per needs. propane since in $X.XX Prices January. LPG The gallon

we has So quarter of over still fourth gallon CX+ barrel XXXX out from per this and U.S. recent playing today. $XX in above risen as coal barrel morning. are the per Antero’s the pricing $X extreme trading of the $XX effects per speak to

in that presentation. see of this detail You the appendix can pricing

teams Higher a levels resulted perhaps propane analytical increase in prices While underlying oil Slide XXXX this in had saw see numerous prices as earlier though number U.S. expected. prices the true can than NGL come was on in thesis steady CX+ and higher predicted that their XX. occurring, oil inventory together you low

res continues heating believe the use healthier and of in structure burning global the the headed forward curves, for Contango embraced. adoption com LPG LPG steadily as and the lack is Demand grow for given we fuel especially remains as into of winter. next forward, for cleaner a cooking Looking upside for to LPG

LPG is year global build the LPG over production We numerous in OPEC pace this Additionally, demand alone there runs, day and LPG to waterborne to coming refinery petrochemical believe will strengthen XXXX this Asia. China increasing are XXX,XXX both resilient through petrochemical and adding to next will of that to XXXX. online on growing keep projects per new barrels and online that LPG shale back need. need from growth come U.S. with poll

to number Slide to Supply LPG improving LPG domestically. Turning to With and to to to East a Mariner Demand, carriers, and reach as Good Panama of and LNG critical Hope supply XX be and favoring we will one beginning from the titled has LPG Asia. the continues container world-class goods that asset, around needs. XXXX, deliver NGL Canal recent continue booking carriers U.S. been Cape more Northeast procedures sold global realizations changes see likely ships in sailing dry the

these markets its Europe of to enjoy and now one complex, shippers Hook is Antero Asia. facilities, Marcus the With advantage transfers, product anchor both changes, where shipping energy a will industrial export

date. Mont resulted in I quarter market Belvieu. realizations capacity will results stronger in our de-bottleneck ample fourth lower has to dock resulting over evident While been export The in Glen. proved in to positive overall With Antero a XXXX premiums U.S. as effect CX+ overall has has on of that, to of it turn estimates U.S.

Glen Warren

in quarter million Thank per flow. producing encouraging U.S., year. At you, or the in level, as barrel bullish Dave. as producer CX+ $XX cash a XXX,XXX is due $X of Good impact outlook that NGL gallon pricing every our the fourth price on second $X.XX day morning. barrels for a Antero last change per production CX+ in largest A NGL position very the

has XX. lower address maturities, one, series that to to been our A plan creative FT a Slide see right a flat can number self-driven Antero in premium of on number two, You key environment number catalyst financings. production fill and near-term

raised committed are through a As our billion production highlighted volumetric three XX in outstanding year, $X.X overriding JPMorgan, XX, partnership transaction, counterparties, leaders Those truly an all Partners. we've and Energy spaces. Partners, We respective company. their on a appreciate assets, drilling with past strong and and over their Slide [ph] endorsement Capital payment, operations Quantum of number funds of royalty the over

Improved Much addressing a of debt entitled goal Since XX, million. of with eliminated maturities $X.X our number Note billion XXXX, Slide program maturities. to have near-term Senior late announced Term $XXX turn by reduced and we let's then, absolute Now we a near-term Structure. over In de-leveraging

Significant financing cash combined XX of the senior XXXX. end improve recent which totaled improvement redemptions flow from billion XXXX the net how can side Accounting on facility on the we hand slide, $XXX our the convertible facility royalty have – is you in the dark credit cash transactions facility nothing the timeframe Leverage we proceeds will of end and million bar The year XXXX see number under Reduction the senior reduce borrowings XXXXs, over next four slide at our notes, the million note expected it the titled $XXX at $XXX contingency As just now the at drawn after maturity two credit a related Slide notes, illustrates for net dramatic million, over free we $XX due year the bottom expect calling to schedule recent of credit the program. and that's green due projected at had have nearly of XXXX. left flow the beginning the profile. and the with million almost the bond offerings between and dramatically $X.X our equitization from our have that years, to our leverage balance of sale least our payment free at and

the across leverage declining You our can X.X reduction move This facility times ratio year results in you end it left and from right. to balance, as impressive page is that in see in was year. priority Strengthening last at credit proud this in year our made short time. balance a our of a we to sheet have progress below times and significant period of two the XXXX, extremely we top are from

Adjusted on was offset, to I'd some for year a EBITDAX and increased like gains. prices fourth costs from Now increase and briefly hedge production quarter. and the lower has highlights operational realized period quarter financial realized million, the touch slight ago for the $XXX operating lower

for gas after premium price per natural NGL $X.XX $XX.XX $X.XX to quarter. realized the MCF, NYMEX. averaged price hedges MCF CX+ representing per barrel Our was per

mentioned, and per cash premium international prior quarters at Dave Belvieu finally benefited As XX% increase that's $X.XX a was from $XXX the premium $XX barrel today. free as That the flow Mont quarter running And pricing million. barrel about from we've was during to prices.

XX% quarter On XX,XXX these to of initial day an XX production Marcellus XX the cubic front, we an million for number that XXXX operations record XXXX. averaging as include will XX in alignment be endeavoring carbon length a reduction had placed year XX wells methane horizontal on had lateral and TCFD reporting look – initiatives wells Antero’s announced equivalent sustainability XX goals rate, reduction guidelines of operational metrics. sales during net also feet. that to environmental a zero the fourth were already Slide through days that ESG new a feet goals build in our XX.X to SASB our over set peer achieve highlights ESG we loss of intensity days. and per These and low company leading exciting in average the improvements XX% GHG and with offsets. carbon X.XXX% leak emissions our

complement key be to the natural in future, as will toward renewable the gas believe Looking to the transition coming decades we a energy. energy

choice. of producers supplier a As maintain well-positioned gas the gas we position largest our the to peer-leading and ESG one in are U.S., natural be of

delivered this In is active are important XX an goal Highlights AXPC, We position Production consistency framework of last around Council, the with Investment today conclusion, number reporting. months. the key in over Antero step addressing XX Slide team comparability and ESG has execution month reporting members ESG creating investor concerns this a standards. of Exploration early announced believe summarizes Key strength uniform we're execution. of exceptional the following toward American or of We the titled the which

have boost by based to in five over incrementally The profile the today flow next years largest producer total We over years, and prices. partnership natural second providing that to $XXX third free the today's strip on drilling largest announced next million our strengthening exposure and gas scale cash billion $XXX prices. NGL the million as $X.X commodity over we including producer attractive significant five

that billion market mentioned – Paul strip cap. our than in years over $X.X As the at five XXXX gas CX+ that's X.X and larger current held larger that's $XX flat NGLs

our outstanding. this million this Since at beginning billion while billion with under development our note testament XXXX senior of XXXX With historic flow leaves and and redeemed the our be these by the maturities $X.X So potential we Further of liquidity million operator for debt expect through challenges new year. dedication that, our easily year. call world addressed and cash is leverage to here the the achievements program, I $X.X to of XXXX $XXX of maturities. employees. I to turn reduced senior the times we've end $XXX is This issued the of a truly of faced target our total achieve over notes projected two just now mean, Antero’s industry questions. will and These the can

Operator

Thank question Jayaram [Operator session. from conducting Instructions] a first now you. question-and-answer gentlemen, Arun is will question. JPMorgan. Our the and proceed with we be Please coming line with Ladies of your

Arun Jayaram

question volume guide morning, a like to And to that's perhaps royalty Yes, around and gentlemen. for is give us bit provide is barrels you XXXX? the more the affecting CX+ the around you down the I looks it accounting liquids little for XXXX color going XX% from how XXXX, your XX%. color guide if more a relative first could good guess mix bit the

Michael Kennedy

our Hi, to and We owners uneconomic is Mike obviously NGLs. elect pay Arun. Kennedy. this not royalty Yes,

prices, uneconomic the obviously liquids So with averages in those the to XXXX were process.

did will in we be case. pass increase that to the that commodity the prices not in royalty not prices our with liquids So along owners XXXX and

in We liquids what now royalty payments have perspective. will So paid Antero occurred natural from our XXXX. and and share pay XXXX allocated in a gas owners and owners lower liquids of royalty from is the all the their of the the wells we to royalty and volumes gas

related economic standpoint. to actually them that negative allocating versus from we at our to cash in a XXXX, them a account flow processing for benefit $XX about flow on allocated royalty look you owners a million Antero it's retaining huge So, amount to When own ourselves NGLs reverses. and cash XXXX

we'll realizations higher little so, costs, And processing but have lower bit a also a little lower production. net of because and that bit

Arun Jayaram

Got that's helpful. in provide you is, did uplift note we can the it. And XQ, color did a of follow-up Got just given we're in the on more and little Texas seeing bit gas given around help And your raise full but marketing you Mid-Continent, us it. you realization a guidance potential pricing kind to could uplift screens? that understand our that surge natural the for what maybe year, see conditions the

Michael Kennedy

our $X.XX the to did on it yes. with premium winter been up flat We would have guidance. without Yes, then recent guidance weather that our initial

$XX to to about Over where will the will realizations, million needed it's been expense. enabled in million able week, be million revenue, capture us be $XX our an incremental last that and some of marketing we've lower gaps of $XX that of track most

for adjust $XX we that our realized guidance So million. did

now that of flat increased you'll it occurred to $X.XX. $X.XX to $X.XX increase from majority the it's that's first in quarter. see the we to why So And

Arun Jayaram

But what thus far. booking you've Okay. that's realized just

that potential that So to is larger… get for

Michael Kennedy

Correct.

Arun Jayaram

lot, Thanks Michael. a Okay.

Paul Rady

Arun. Thanks

Operator

you. Thank

Please with with is proceed Subash coming Our next question. Chandra question your Northland Securities. from

Subash Chandra

morning, Hi. everybody. Yes. Good

have, XXX like outlook that around is it CapEx a the foot. four-year looks On you the

year, that Can maybe going second the think just of about period? be might half talk I four-year to year. you conservative outlook this over how this be you're there

Paul Rady

the Yes, I Subash. on probably think conservative it's side,

the drivers well completion year XXX. We take that side. some have this as side XXX it from year a that initiatives couple to we sand of as finished And last down on key there's as down

pretty talk it we don't So further, upside We even we hand. well we like that about to don't have anything take still there's confident under that. control even generally I think feel in Can in pretty there. lower?

what beyond hand is are to we some work continue talking that's we're there So in what's about things on. here and that other that

in service kind $XX in the days, of the definitely costs range. see terms foot a still of that's potential. general of in we And pressure costs on to sort So downward the service these $X

around So yet. we see just that don't turning

Subash Chandra

Okay, follow-up, of a first a quarter? more us sort volumes quarter? export you up in how thanks. an weather ability has any sort even and of is there can similar sort looking And split disruptions or give picture QX shaping as NGL split of or this to on if the to more been And export that

Paul Rady

flat you my maintenance quarter it volumes third I volumes. had capital first fourth had gross volumes we Yes, year-over-year gross elevated half. is include in a is comments. as in wellhead and should The and a the in Obviously, the truly first capital

So first economics the the barrel. what of the There'll have fourth volumes no of the of per quarter same export Hopedale. mix disruptions. lack similar economic selling the because clearly completions the in but be is a to guidance been between also There $XX and all NGL because will at at quarter, are be in down the

Subash Chandra

Thanks, Okay. guys.

Michael Kennedy

Subash. Thanks,

Operator

proceed with Thank your of Svensson is the question. with you. The question line from Truist. next Nate Please

Nate Svensson

my taking question. Hi, for Thanks all.

a wanted commitment into I FT bit into to drilling So partnership. your little the get new with

I you your I Slide know changed get to wanted things think. X, versus into expectations. I previous So But talk how have on this

decline the by I to MMcf XXX XXX So rolling know a of for year. day FT volumes talked this you about about off those previously with potential had

on that you based this partnership. FT So drilling new comments on should can and off, I'm roll annual if that what an marketing provide give how about may you on it fees expense any update look can just think like we wondering

Paul Rady

still all off still. does all roll It holds. That Yes.

filled drilling is in XXXX going partnerships. – on a how slide, the that to BBtu per lot is by around you X.XXX of So day, by X.XXX can the that see the you're drilling The to JV now down now. that difference

expense. end XXXX, marketing you have year the no by So

which of have that to So guide down initial $X.XX you would the in range. in $X.XX $X.XX to guide, our more guide $X.XX from to our been the see

Nate Svensson

And just follow-up. a Very then Okay. helpful.

little I CapEx So was hoping detail new December your in presentation. more had for the production what versus guidance and on you a

So CapEx with the to roughly is guide I that that D&C And on the answering any last a your flat. Arun’s if just you've I keep now assumptions higher But touch you partnership? new of dropping difference, December portion slightly think presentation, XXX production by drilling in explain about you CapEx at production six has anything had XXX And that touched drivers new points. and of the question. and to liquids between beyond in on wondering can have changed in your know now

Michael Kennedy

nothing – a for the I to but this day average Bcfe has of a we at really a of when Bcf that talked company. yes, look XXXX $XX million. million changed. at $XXX day I But – can't size about capital, are Yes, you talk in X.XX really EPA

solely liquids the So allocation Antero, X.XX, so which sold down of and the any guidance. of you day is you is million our gets July, the we that $XX to we're going and a that gets mid-year have sort to at then VPP of not midpoint X.X, which

Nate Svensson

Okay, great. much. very Thanks

Paul Rady

Thank you.

Operator

you. Thank

of Please proceed Holt. Our with question is question. Tudor, line Jeoffrey Lambujon your from Pickering, next with the

Jeoffrey Lambujon

Utica questions. around taking the on My across first morning. we capital Marcellus, year. Good see the this Thanks for my that portfolio, is allocation mix one

several Marcellus next that's the the looks X case, within bucket? Marcellus premium Tier base a good mix if the I years? ratio also like what wondering And over about and to between Just guess, think

Paul Rady

in XX-XX which we I more the presentation, And Marcellus. we'll mean, five-year our Yes, little premium will out that think, a today. Utica, that plan. it's roughly put And detail in bucket over of Marcellus, is rolled all the mix out website XX% maybe later bit drilling be on our I

see year I some this you'll part to the anyway. little a couple various detail primarily Utica two pads bit Marcellus-focused it's we mean, more of a drill of So, but Utica plan year. [ph] there, with wells

Jeoffrey Lambujon

confirm it. on considering a especially standpoint but beyond if basis net about there or maintenance? to a to missed if XXXX timeframe, to how from I Okay. we that thinking macro through And same earlier, CapEx fully just be then partnership wanted specific plan the secondly, utilizing is any inflection I sort that activity maintenance be should was production points and this appreciate and your that incentivize line-of-sight long-haul, would of that apologize might

Paul Rady

throughout on we That's a way see good was five-year the outlook capital question. off built the the page you there. plan That's that maintenance the of

and essentially capital around $XXX generally million the a each So, number. actually And bounces that that's think million, we're holding years, – year, but maintenance the little it It $XXX $XX I spending or less drilling we down the, bit would a little bit, of pre than we're around actually plan. a five-year little payment. have the so But five bit over partnership think, it's that's excluding outlook. kind any carry over I million

years. pre-cash for flow a That generate AR the for plan certainly now is maximum It's paydown debt our for profile. maintenance that's and the right. program absolutely next five So capital to

Jeoffrey Lambujon

All right. Thank you.

Paul Rady

Thank you.

Glen Warren

Thanks.

Operator

you. Thank

with is with Our your next Raymond Please from Robert RR question proceed question. Advisors.

Robert Raymond

guys. Hi

use And question free it quick here. a the just So cash flow. of to really all the gets

an of the excess by the $XXX quarter, first in that So, have be paid to what you the and extent million EBITDA of of your do to revolver appears end guys off June, you right. entire

XX% you about think equity than over that billion an $X.X against make a the this about free we guys well a total and As as yield billion you right, do that's point, point? number, on cap market or the cashflow think less is $X.X cash that a right. on at full plan free How allocating

Glen Warren

was a question. Yes, that great

So, And a years. said there gas at our would that's five be I Yes, it have of that views are flat that. X.XX holding again, myself. max a on couldn't there better for out big number. once And the lot

that a where that in like NGLs number. flat that's and barrel, then go the few you going $X.X feel it's holding billion to higher next CX+ $XX the get Some at years to certainly

And our that So easily, pay use debt is to until couple down happens several and of first and down we on that the years, decided, over I your get proceeds of down next depending really, facility years, mean, next the to billion. below debt price. pay credit continue as $X pay you just

year. capital hold cash segue shareholders. the But happens towards to of it flat, return and you at If stock be you'd next but shareholders to start first count, that then, use. probably of That's dividends flow Could also would the have the And profile. that But some if way? some we'll along A&D be buybacks, considering that's to it potentially possible. point, free in form there eventually

the and as the go And along nice tell. go. adjusting will time question. have we good thing benefit every is looking a as quarter But it we So, we of at

Robert Raymond

Yes.

may mean, I Okay. have me free effectively to three-year a would but yourself right two- be net oil aggressive more the about over we flow that's seem and that to just $XX I of almost cash here, a but one to propane it. you Thank shortage thinking opportunity have, take person's you. of I'd on that's opinion, on private an And window. sort prices, how it be

Glen Warren

thank Yes, you.

Paul Rady

Thanks.

Operator

Thank you.

Our your next Howard with Please from with proceed Weil. Stewart question is coming Scotia question. Holly

Holly Stewart

morning, Good gentlemen.

Paul Rady

Holly. morning Good

Holly Stewart

overall the M&A? details and on I does view a maybe how question, appreciate all and your curious just just on on the X, just on Glen, I'm basin. in Slide this the impact thinking Maybe thoughts inventory your

Paul Rady

to Yes, locations, feet churning thousand appreciate XX,XXX Yes, I lateral and they in question. partnership, mean, drilling with do thank average hand through obviously premium inventory about necessarily. you, a couple I it's we're the I with mean, driven not even in a year length. locations and for well mean, – we're Holly. M&A XX the of I that's reasons

wells. So, these are big

many, years got we've running so room many inventory. in of And

M&A, reasons to but of course. that's other So, likely do a as you be well, driver for that in acquisitions not us are there

you have a room the points inventory. years have basin one just that many Sort of is of premium doesn't running of

maybe see today Southwest over that These I drill you the you But eventually instance, southwest rigs these XX tell higher you generally Now should if think move that the XX prices, seeing even Marcellus. we’re that Utica, a year. and XX Utica rigs the XX and can in I days in or we're Marcellus rigs wells now. for mean, run time, and

the they If close the completions using premium six X,XXX just let's thousand realm only supply only easy to math, years Marcellus are about X,XXX a of in it's Southwest. and so And year. Utica, premium an in that's a say

So see years sobering, and we when out that's acreage analyze many the been not that's because way we position the for that's it pretty there. case each

Holly Stewart

point to activity, more consolidation activity, lot to drilling seems it Yes, not activity. a but

Paul Rady

probably I you're think right.

Holly Stewart

just and things. this Mike, one micro maybe the more on is, Maybe side of

benefit. at of expense we turned As went net release, a I back we you I look first was the think, sort the have that provided what the into out marketing net natural know gas you the that million and broke one switch quarter, that XQ in kind the a expense. from and $X.XX net like guess does I you had let's XXXX another I quarter marketing of million, looked, mean $XX February expense of marketing quarter versus it you standard? revenue $XX XXXX it flip where commentary to take – that

Michael Kennedy

the that was polar coast. the Yes, in vortex here East

I still mean, well. quarter just here this, this likely prices is seeing occur impact premium this another you weather and thing all It's as knows So, there. still seeing And we're that. about out happens and what event a who the of from storage broad interesting quarter ongoing. is, it with are most winter

an weeks, it's interesting weeks. going think, six six to the next be I So

Holly Stewart

priced Yes. to are thought portfolio Glenn, about that guess, do Most And at open lot I could I've the the just way a everybody's is have a you spot on that, just there's just, sell you in follow-up like not itself. to volumes midweek. market percentage maybe to share

you anything on a can is you of sell us what share rough give spot? So, that ballpark can into there kind to

Michael Kennedy

think million Midwest, a have and the that's XXX available to system, all pipe that depending around XXX on is we of whether that what range million, move kind in Chicago, or capacity day I Coast. it's Yes, Gulf

So, pretty it's us. a significant for number

Holly Stewart

Wow! thank guys. Okay, you,

Paul Rady

Thanks Holly.

Operator

We question-and-answer for the have end time reached of the our session.

additional, like pass to I'd management closing for to floor comments. the over back So, any

Paul Rady

I conference for today. would to everyone like in thank our call participating

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

Operator

teleconference. today's you thank your your for time. Once conclude you lines we does again, at this gentlemen, disconnect participation this may and and Ladies

Antero Resources (AR) 18 Feb 212020 Q4 Earnings call transcript