AR - Earnings call transcript Q1 2021 | Antero Resources Corporation

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Operator

Greetings. Welcome to Antero Resources First Quarter 2021 Earnings Conference Call. At this time all participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. turn over I'll Mr. time, this the to conference At President Michael Vice Finance. Kennedy, Senior of Mr. begin. may you Kennedy,

Michael Kennedy

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

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

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

Paul Rady

you, Thank Mike.

titled to best rising exposure commodity begin Let's Slide number prices. X with

of million model $XXX of flow and cash quarter, first During our $XXX business EBITDAX the million. free delivered

from in CX+ Approximately averaged prices, per which during CX+ over leverage generated Antero's commodity liquids, Our quarter. financial we to NGL which is have by rising results NGLs. of is primarily the particular barrel revenue $XX prices XX% significant the highlight

NGL drove financial prices not However, the strong that quarterly it is only records.

per of Mcf realized premium an firm portfolio During led to $X.XX our price the first gas to NYMEX. unhedged transportation quarter,

high other transportation constraints provides of us in markets transportation NYMEX. U.S. a prices our those to the periods assurance pipeline gas to enables periods flow portfolio firm firm during realized of at regions premium prices portfolio capacity deliver to our Our of and during and And

we For full realizations $X.XX NYMEX gas XXXX, $X.XX. year premium forecast at Antero the of a to to

Moving Slide provides basis titled assurance. X to number FT and protects flow

historically. We have FT highlighted our strategic the of advantage

As portfolio has on significantly realized AR's illustrated differentials. to compared basis chart, FT especially volatility, pricing Appalachian reduced the when

to realizations During were the first led quarter basin $X.XX pricing. advantage competitive that Antero price than in is better

$X.XX see that side detail of that right can a in-basin compared price at the chart on hand highlights this premium You to the per $X.XX price Mcf. traded of the Antero's per in-basin discount Mcf –

at look gives X. Slide some the with key the on Now takeaways. two slide ahead Basin how Appalachian turn our insights portfolio, This strategic FT let's number to advantage trade as we of indices you forward going

shut in when yellow you Takeaway Capacity sell XXXX our us prices. peers pipelines circled discounted volume and in First, to highly is or basis for many This to is that blowout full. led today, what are essentially look in the of Appalachian at at

is takeaway pricing, questions local MVP Mountain Valley the of the on second The the Project. around outlook given uncertainty the many or for

price avoid capacity. these new allows we local us today We the blowouts portfolio to takeaway our are our by chart XX risking traders months As right likelihood to last in of the as has gas MMBtu consistently are $X.XX you of green the basis positioned in NYMEX. sell a and far portion FT approximately dotted can see this further orange on lines, per firm at where with premium that the and widened like

drilling Turning to Slide titled completion and number X efficiencies.

top higher lower. Starting steady continued XX,XXX length left and drilled to quadrant progression first drive on the the Let's well during lateral of our are that efficiency the gains its drilling cost dramatic per page, averaging average helping completion per well quarter, feet discuss chart the the our with well.

X,XXX XXXX. feet drilled feet a quarter, Antero the of day is the a Moving averaged a which to per lateral the top over we on chart hour XX% right, Further U.S. drilling increase during more average lateral the new record during than in established period. of XX,XXX XX

X.X that accomplished typically to efficiency to the also completion allows on during for our the process first winter Completion during completions. increase important separate a per quarter from same compared path, the benefited to is XXXX completed challenging at continued the that note more quarter, day average. wells Our averaging time. XX% time this the which improve two was a quarter completion stages is which simulfrac stages It's day a per be during to

average year our averaged per drill increase day Finally, the has continued out first and to feet in feet X,XXX quarter. each

in adapting gas in multi-stage the Since the U.S. his in Barnett completions years. integrated I the methane drilling over over Before coal over early the to then Shale Dave, contributions and congratulate for horizontal been the largest his and to turning producers the most him Powder entities thank and to Glen years I NGL the have into partners of Antero and for became River want call of built and exploration bed Basin. upcoming XX production on one to back all retirement and dating Glen have we and natural shale Antero pioneers

Over and capital navigate the successfully Glen allowed position last executing to we're which of in in us year, us market in environment strategic and challenging activities, the the was today. the put transactions series instrumental

generating since sheets the with leverage strong profiles. As strongest balance look positions inception, AM flow are we and ahead, AR cash in both significant free and financial

be at which missed, with turn Liquids, Brendan positions comments. highlights we to Kennedy Cannelongo, about Vice I'm deep President call excited have of Transportation, back-filling his Mike Dave Marketing will and very the that his Krueger, Antero. Glen I'll internally that While bench the With our and over for here

Dave Cannelongo

witnessed the In normal need adequate the markets to will propane drive upcoming number and supply inventories quarter order OPEC up the been of imbalance level significant that start The welcoming, higher. ill-prepared of illustrated under the by in fall, while world first roughly for summer sitting in the season, low now was ago International as Slide a NGL inventories pandemic of that balance effect from and market to winter meet a buyers Thanks, of record refinery below online temperatures the but outfit the U.S. Propane below suffer imbalance domestic during build U.S. build most leaves days will U.S. this sufficient runs shale, winter. would this that to year the U.S. XX% and million demand in months. demand, on export the not inventories sitting titled believe of Without a we the at through turn demand The have supply. surprising. propane X XX% that XX despite incremental order supply for winter prices all was propane Paul. winter us since to currently even days year The propane come be for barrels and shaping and fundamentals. increased market pricing will as the U.S. to a mild need average supply and at this on is of supply LPG are winter. five performance for fundamentals LPG of U.S. through next an inventories withdrawal will

have months. Slide and any improvement. we market from macro and XXXX With balance to weakness oil we season. current and NGL adding materialize, and seasonal over see sheet hedges the market protected X, the environment, number winter this to production Given and details upcoming the pandemic LPG believe we price said, that another put recovery place is growth significant have this lock by conditions in needed we crystallized unlikely could sluggish imbalance NGL in cash flow further summer free hedges ourselves

is on for is demand our years, rely export it the WTI under summer the for during international outlook are of outlook has strong the Mariner shale NGLs double pricing of capacity global benefited to previous levels the and hedging return for basis. billion exposure is with market of to NGL LPGs fourth and through on competitors time Importantly, barrel, to come or within realized $XX NGL majority population structural last remains. remain price for around in COVID-XX are to However market before enough our to the winter set export the We to to which prices strong a the benefit on respect unhedged U.S. quarter at to have to historical demand indices, commercial strong Several relative the excess given propane growth Antero value supply and approximately on access as from provides around price in net attractive shown realized this realizations strength been our the elevated strength, zero by U.S. of early long-term backdrop needs greatest a to their The XX% sees experiencing incredibly a while at number and we This X, uncertainty addition levels XX% subsequent pandemic and we sale our U.S. XX, India U.S. of year. during arms CX+ the U.S. Mont Belvieu and XX% for average shale stages an stress for shots NGL the titled years about to to-date, change globe the witnessed price tight pricing annual Slide WTI such in our I stumble titled petrochemical meet vaccine more world, summer, as NGL and in allow discipline, revolution. of production, XXXX, large sales on just price fundamentals, at residential on ability hedges realizations. arms capital The in provides East; COVID-XX administered for export Antero sizable relative butane the to capacity given still from own The around next number Slide winter the X on populations. economies volumes record at discussed. pricing that the illustrated to in bullish capacity our for ample will domestic

their numerous build into runs experienced year, impact LPG produced refinery to we've fall. offset and resulting refined this ports increased times into I adequate transportation, and increase and adding U.S. severely and procured the than to NGLs surges is will are cargoes to measures attempting the levels spot reduced over for global fuels last inventories, for lockdown LPG, products, which markets. in in expected need combat situation decline pressure As refinery With demand current propane it these these that, to to imports by Glen. The turn over resolve more to

Glen Warren

start quarter. Antero over in like improvements the you, to last Slide Thank I'd on the significant XX, highlighting Dave. number

profile. Over sale program maturity executed assets rebalanced the last our senior XX months, Antero's we successfully and note

significant another of financial strength marked XXXX over free flow. generated of cash we step in $XXX quarter million improving first The our as

of times a business over As left two total a depicted focus leveraged Antero's billion on transportation best in development quadrant on from Paul billion to liquids by to $XXX.X this the illustrates this price free debt direct class was portfolio With differentiated EBITDA earlier. decreased of that first top the $XXX top $X.X now, this improvement $X LTM during discussed slide, term EBITDAX Total the was by combined quarter. firm reduce with in a cash quarter, result debt portion right improvement the strategy reduction, slide first debt million an billion The now. that improvement to a the total used realizations. for provides flow LTM and of

$XXX $X.XX issuance the liquids reaffirmation $X.X during Antero's in and supported significant portfolio. note Antero's deep This period, the along PDP liquidity senior drilling Lastly, to spring doubling quarter at location and billion. was billion million borrowing of base reaffirmed rich debt during the reduction in the inventory with redetermination by resulted

total ahead, look next of expected in maximizing credit free is completely a couple our flow undrawn we cash expect and facility we balance to As result quarters. continue which reducing the to over debt,

our our will below is target leverage expected during billion. absolute focus shift of to the same and achieving timeframe below to Our $X debt fall X times

perspective, slide in the in XX, the let's reporting balance based comparison. put are to early to positioning. on estimates. titled consensus these figures Slide are the number of most Since we sheet first of turn quarter results our highlights Now cycle, The financial peer top

ranks left our our total among On debt the of $X.XX you peers. see billion third

the side on hand of Appalachian our ranked second of page our that debt-to-EBITDAX net chart peers. the times against X shows the However, right

times X.X on are page Some of still bottom financial the to X the performance. in range. The focuses

the $XXX of in other first Our quarter EBITDAX well second and above million the peers. ranked peer in our group

an peers and XXXX quarter rising be first will This cash year above all of year Looking have the the financial during flow a price $XXX we class include zero highlights make GHG also goals. million at in rates. is free our our as exciting in dramatically toward environment. commodity torque Antero's and shown reducing loss These best our for initiatives are achieving industry and number leading progress we methane emissions, net leak ESG our XX intensity Slide in carbon

publish team over we're XX We XXXX. also execution XX, TCFD has and results with the highlights, summarizes Antero of our later plan ESG investment following to XXXX number last this strength our complete in key the title the months. To summarize exceptional performance execution. Slide delivered that today analysis in position

by our exposure redeemed billion saw scale can de-leveraging We just producer gas third be in of attractive the addressed significant as over This projected reduced flow due prices first through Since XXXX total million senior NGL maturities providing $X.X program, debt strengthening billion $X.X and as note natural this quarter. issued notes have new producer XXXX of largest the and which free XXXX, senior you $XXX that with and maturities. approximately cash largest and second our of time. leaves we our beginning to commodity easily

under We X of quarter of of target second expect times the $X to XXXX absolute debt and during achieve XXXX. leverage our billion under in our goal

sustained Our scale, by assuming than of $XXX flow financial flow among further AMPs of cash metrics These leverage, liquidity performance. billion a leading expected low ESG placed cash group of bolstered and with significant Antero free ESG generation free more million even year today's elite prices. this and stripped small back-wardated operational, $X.X is

a thank Now who bright. you you follow-us, sendoff me. for first, all better and for is comments; gratifying Antero of those to Antero couple who invested it was in additional phenomenal positioned had outlook of The never are a companies been quarter

With and edge in are differentiated employees Secondly, team thrive but together leading been built that short the and a honor never drive, Antero of appreciate companies together. partner of lot at the nothing years, the a career company business there, years. for Sure, successful the those on XX building And the my appreciate our of challenges work it's determination, long-term all watching audience you coming thank management Thanks and [indiscernible]. thank the remain of turn for from to hard out that, over your all have. you I companies to the be been should my helm are to we'll operator and There a we you memories. challenges Paul, better for questions. we it's to always several sidelines be wishing I'll There's overcome a of your shareholder, as integrity. best-in-class. the best. will dedication; finally,

Operator

is Thank Thank with And your from Chandra Subash Northland. you. the of coming our Instructions] first proceed question. question [Operator you. with Please line

Subash Chandra

Thanks.

congrats Glen, on retirement, First well of deserved. all, your

Glen Warren

Subash. Thanks,

Subash Chandra

guess that this some looked in I out question, ESG the responsibly on have sort the first realizations? Have at you is sourced the get I you certifications premium and So of there thoughts of any can sort guess, on guys front. gas or instances

Glen Warren

it we're something we at and looking with of sure say, sort up that and approach. with that it I'd we time very best theoretically taking is seriously. the come are our to analyzing true That's make

we're the it's something we'll to further road, of down and first green certify director all gas and That's as yeah, to that's continue So just bet I at But RSG, other and looking – something look it hired can RSP guess. that sustainability. then probably we clean you and our very off a Subash. at

focused these we've is now – their of kinds on somebody to got job of day all who be So every topics.

about serious very we're So, it.

Subash Chandra

understood if simulfrac, operations, been mainly hesitancy then I so thanks. And Okay, had I the guess, the oriented the correctly. safety before on

were What So what do and now? about feel widely adopt if operations? do timing that you costs, it And you think you to for how simulfracs? could do

Glen Warren

can essentially things, Yes, put size turnaround cost, Subash, save cetera. for a instead of spreads it two do in We mainly it efficient do on so time The with blender and enough pump only affects. a It to improves have of It's those et considerations on. one but with frac pad all couple, but of lots we that some are there. we room very us, timing only and out large trucks, pads. little

so working benefits, the pads, time. the expand to can certain do so, And like economic particularly We it really we we're cycle more.

to part we our a able yet. it across definitely quite it's So of aren't implement but the future, board

Subash Chandra

Got it, okay. for And the final Dave. one, it's maybe

maybe think naphtha markets, curve a LPGs you I think opinion cetera. of the you based you on think, But I be? sort opinion could an had how might underpriced on global on how real-time are, provide et underpriced

Dave Cannelongo

prices the here the recently summer. for quite propane the for timing then great question. just We've for of seen April run-up a and in balance month Well,

you seeing So, that the closer respect seeing those market margins dynamic breakeven in looking to at are propane LPG buyers are switching naphtha. that start price for petrochemical between you're the to and summertime or

the fourth into relative price relative expect pricing sets the in markets is to we what Looking what which in and winter see winter, get the the destination LPG the curve would we that significantly for is the naphtha, quarter and to is time next summer different. – undervalued dramatically to often the still

You in in XX% XXX%, naphtha winter. summer XXX% of of the naphtha go can the to from

suggest or of lot quarter that. quarter realistic obviously would upside So, for first and to current below a and fourth curve XX%

Subash Chandra

everyone. Thanks Excellent.

Operator

JPMorgan. Please Our the next proceed question. of Jayaram line question is from with Arun with your

Arun Jayaram

you. good me Glen, Yes, morning. let start with

buy-side into has you the release, maybe this could why go the and Our know fielded questions is was to the number timing? you your a for buy-side, just put as did but I out decision on founder. retire a right the of decision team decent of a spirit

Glen Warren

lot a totally the challenging had reset. and all the for it successes, long thanks. met but a past challenges and we year Well, particularly tables been those and time in Yes. of was I've we've

stepping step CFO great his for to a good So AM. at CFO with my then Mike and here me We built role time aside. succession it's Krueger role stepping team Kennedy a Brendan into into

we good had a time for team there be and available shareholder, at on time to consultation really a for me, the just – going farming, I but out for long-term XFs for things keep question. me: for fitness, a So to philanthropy time any of me. that's busy want to personally so but thanks the focus of replace sure for I'll the have lot fishing, so that's the kind being, family, you what's it's

Arun Jayaram

Okay. then you're this you – less – once perhaps one the Glen? second for Got a around or my got to you get of it, is potential target, initial strategy. or $X to thoughts around that thoughts your And then shift return kind just debt Michael color And on it. your billion what's know, even cash

Michael Kennedy

now, analyzing and to initiative occurs, watching we'll get companies other by return you first thinking levels mentioned, as $X definitely and employed our capital being that in closely, the Yes, under obviously how but about we're valued. be once of is billion, various debt that the then they're

back We have last at year. long back amount We back of a history We shares of significant bought shares. AM. bought significant buying

of a We significant history paying also dividends. long have

two pay it we're we different is of those when we'll XXXX our information will that now more So forms close and we attention some $X on have billion, to but then. be get well-schooled return below monitor something and of capital, it forecast

Arun Jayaram

Fair a enough. Thanks lot.

Glen Warren

Arun. you, Thank

Operator

your Next proceed question. coming Truist. question line Neal Please Dingmann with from the with of is

Neal Dingmann

depth inventory, just of details. all. is plus question for you have a My X,XXX great the Utica – first and premium Marcellus all morning continue guys Good really to locations. Thanks

of anything investors of know, partnerships, forward cash through, pull this table? monetizations, there my so don't trying on free the either maybe thoughts I on question out And remain is driven. to some the flow asset value more Any assuming

Glen Warren

we need don't asset a mean can address I don't or that one anything we sales I so that first. to leverage further need any I do standpoint, think from Yes, monetizations.

looks flow free cash So the stream terrific, cash flow stream. the

right of initiatives further get I today. So about becomes in returns heresy will chosen that what we're we show of think? so something just can evident think that's don't like have be story. the few some I not the considering, Paul, but to time, flow kind growth that's Obviously, think underway you allowed and free now, ESG do we growth it companies generate you then Those – cash as any don't my out but think over I sort perspective. it's talk as that to

Paul Rady

Good I answer. Yes, agree.

Neal Dingmann

as NGL a that really looking Glad at agree just it's way. prices would you you see And as I are well. what hear like then and all to to helped follow-up has guys benefited, others.

forget the to then I how just I shows liquid you And hedge are I'm out, know, a pointed NGL slide clean hedge wondering wondering year slide Just able want all if your that? you just in to wondering don't I'm two hedges. is out, that how market that you – that? nice or

Paul Rady

hedges – physical place been that we've indices. Yes, that have all Neal. great question, to do the to we put able All in exposure perfect the those

with portfolio. So, very dirty point NGL clean. hedges No at our this

as far that a alternatives liquidity, think, liquidity with them a just the into Again, out the I versus they as ride As now, hedging. prices just is right limited. really – for the there's pretty beyond buyers to come for given risk step in to our just need market lack XXXX XXXX of

been and ride backward-dated So the the front. to number always a of that's kind years we'll case with continue for NGLs, of steeply

Operator

you. Thank

the is from Sachs. with with of proceed [indiscernible] Please Goldman question Our questions. next line your

Unidentified Analyst

Thank you.

your First on Glen of retirement. congratulations all,

Glen Warren

Thank you.

Unidentified Analyst

question. in building NGL's LPG question demand first on trends petrochemical incremental My around the any Can Asia? particularly you really color provide on is complex the fundamental the

Paul Rady

Yes, sure, happy we're to.

most now, for about mean, been petrochemical I growth we'll right engine commonly look you the that's talk China big If demand.

in will be world. facility XXX,XXX side, growth then around a the PDH online XXXX day of So Coast Northwest online that one XXXX. additional XX,XXX in XXXX in then facility steam a for for Hemisphere. to this already got projects additions We've around and from another and Separately one come the are year in Western XXXX one aggregate projects on and the about and day, you've a five still that barrels U.S. Europe four there possibly XXX,XXX, in come cracker has others petrochemical the some barrels in in Canada, that Gulf yet coming some PDH eminent, that's got

for More strong for importantly, very to We're LPG very res/com as bodes that the in those seeing we've for be this summer here perform as consumer as is margins well to GDP and petrochemical demand globe going durable seen the very well. pre-pandemic well res/com levels markets well. petrochemical markets both markets continue and goods.

at into to critical the they've in job res/comm. last a several that probably penetration over improving market Looking us market. LPG most done India, years spectacular the

all home now have still So virtually using use, households access to portion but cooking are source. not the that LPG as significant primary for it there's their canisters a

And virtually so averages. average Indian at the States, than less of rate refill of all if look Northern you national what half the their is annual

of for refill on so canisters. So – has easy res/comm been levels growth of high, given tremendous that those normal penetration to markets, the lot start but as reach amount there rates those of to LPG now easy the there more opportunity reach a opportunity markets

Unidentified Analyst

gas Historically, my really it. question its And Thank for always helpful. bulk forward production hedged hedging. and you. of natural year. That's is Got Antero next hedging on the a

to XX% are Looking gas thoughts Can around you currently XXXX you talk at and placing hedging? expectations around hedged. any around your

Paul Rady

Yes. Well, right. you're

is to gas year We're about correct, we've per of X.XX in into historically well It's the gone half. that We're the fully pretty we've the close watching much – that It's be hedged that's and up had begins MMBtu hedged at low for the to Cal course, always that. so next paid-off Of 'XX. be curve. course, be try but won't to to we interesting, going still it momentum and get Cal we're part watching of get as and fully almost 'XX. that price our a there's strategy

opportunities. looking it So and our watching for

Unidentified Analyst

so time. Thank Great. much you for your

Paul Rady

Thank you.

Operator

with is from question next Please Stewart your proceed Weil. Scotia of Howard questions. with Holly The line the

Holly Stewart

me and gentlemen. all love let morning, by I congratulating well Good the Glen, start as Fs. off you

good great. was your the that's or good so so over – been wonderful. luck on was It's a – that luck retirement, So eight that last years, pleasure

Glen Warren

Thank Holly. you. Thank you,

Holly Stewart

over we've million the just looks the with drawn. of about at seen it looking reduction Let less me of we're If start the kind revolver you. than couple last $XXX is like debt quarters, now

So first thinking the further forward? we is should Or debt how place still that be for that going reduction? about

Glen Warren

paid definitely down maturity, that XX at a we we looking be well. we'll revolver. mean, I so the Yes, do as We have

this, I park this think that to all goes summer.

But cash we'll for be at over the may see the build here over balance options have that. to a just lot you management keys flow and us liability and next great So up tracking potential many that being. there the so free I'll looking sheet just But cash the or it's to on the of time team do many, much turn quarters. to the

Paul Rady

to add Yes, and open I'll also comfortable we that's and up that a very so something the year those they're bonds market, set last in bought back lot execute doing on. of we're

that option So could an be as well.

Holly Stewart

Okay.

that a looking Okay. tills during XX this That's of bit the pickup. helpful. at just quarter I'm a but first suggests And maybe one's for you, the Mike,

quarters. couple I think next here over the of

you a for So can production cadence standpoint? a both talk about maybe and from just spending

Michael Kennedy

Yes.

completion in that's March there joint A February spending locations around around the crew; recall added total our you XX be drilling as will so will So us we growth a to a I net rig and think a venture Holly. announced XX. bit pick-up in little was and locations

So on that the XX quarter. see is third there, to second, and we'll fourth in bit a not little the but dissimilar level terribly

the million Our capital quarter. is first $XXX in

million. $XXX is guidance Our

you might quarter. that somewhere $XXX the $XXX $XXX in million annualize not the be million, you first so million, If had that, somewhere to around but upcoming quarters

Holly Stewart

thinking a quarter; kind to terms maybe completions that of in on about, just XQ. And obviously helpful. That's had we follow-up sequential given in decline Okay. of XQ then and

trajectory? we about So think how should that

Michael Kennedy

forward. going flat That's

X.XX, X.XX. at we're in our think guidance I

So around in we'll quarters. be and next X.XX

Holly Stewart

Okay.

through? of think to real lumpiness kind So no

Michael Kennedy

capital. maintenance flat very No,

Holly Stewart

Got it. Alright. Well, I appreciate the time.

Michael Kennedy

Thanks, Holly.

Operator

is Halbach Raymond of from question your James. question. Harry Our of Please proceed next with the coming line

Harry Halbach

great Hey on quarter. guys, congrats the

Paul Rady

Thank Harry. Thanks, you.

Harry Halbach

quarters? in things expense for of quarter, that premium noticed conservatism the kind of guidance will above or run expected net this but of you to the kind your $X.XX I marketing that you a to marketing $X.XX net of mainly three kind next you reiterated One range do is Is had guide. just

Paul Rady

really midpoint, the range, We be have of just we say didn't at left I We make in adjust were same. Yes. down the that we that taken could the it would range. low-end would low-end the probably since any the guidance, but

Harry Halbach

for Thanks that mode? get Okay. money putting sort into you back of $X like thought of productions, of that committed color. some And underneath question, grow debt my that you then any to kind are is really low-single-digits maintenance next once target billion or there

Paul Rady

its execution the We're now had in capital much for further committed assess there. be we at assess capital. years a to maintenance commodity and well. opportunistic when maintenance now right accelerated prices three, really to looking but we'll We'll going of and as down is the that next we pay that's get we're XXXX, we've a right But there, timeframe, it’s terrific get debt mode? It return when because four

Harry Halbach

Thanks the Great. color. for

Operator

Thank you.

is next question. your Bank Brody the Our of Gregg question from with America. of proceed line of Please

Gregg Brody

guys. Good morning

Paul Rady

Hi, Gregg.

Gregg Brody

Glen story. private, I congratulate luck telling and back ago, Mike promotions you and many good were on jump can wanted How Brendan of with to following wish and you the course years started the since guys, you I some luck. appreciate so got good the were XFs as his together, really to

Paul Rady

think were you in Yes, deal, Gregg. first XXXX. yield there high I you, on Thank our

Gregg Brody

– little up, you're of were midstream, bonds didn't to see you combining were year bit, when There things if curious rethinking considering ago, Well, a top between a nice resources it beat consider you possibility a Yes. a up. big the It's on it's living if there is it stocks way Antero the we were possibility like beat when asked I'm combining trading. and was the difference a two? that seem and you'd interesting now it's we was yes. if Antero maybe

Paul Rady

Yes.

all if were you Antero we the conflict board and of definitely and went consideration Corp and went committees everyone through to was course it to at fully and went XXXX when one best independent had we Now directors have two that call through that that simplification was action scenario in midstream companies. the C through we're in a independent rethinking looked heavy And for. not Gregg make

it with both more right the AR now. I is what at profile mean, not and talking looking that lot that. now. a you're right that but reducing AM we're we're We're entertaining So becomes about at I leverage that not really looking feasible, think really is,

Gregg Brody

bullish think Alright. you NGL just a of one, outlook, just clearly on. there's if And lot your things about

you terms If worry in helps were there India to that potentially we think LPG you be mentioned demand. negative that there's said we that you is think you about, Do anything about? of you about thinking should

Paul Rady

really. Yes. price a not April, yes, day negative a things I mean, I those with – in oil, Gregg, you on go year or think to fundamentals. the a back that ago how playing two No, situation don't certainly manage can the was I as see more again but this surprise the, you, about learning out that like of pandemic. to though risk we through the

the having don't just horizon, any shocks price this no, So damaging short-term. see supply again negatives and upcoming winter don't for to good adequate can about but be on concerned – demand, see an in enough long-term the

would out. rethink downside too I prices could folks be to high years if that investments guess many get So the that cause

Gregg Brody

guess that demand? I impact or to the how can Is about you increased that the much sense a fade? there increased propane demand COVID related thought have to of you – Have

Paul Rady

we're markets bit petrochemical say the again, rate, used I'd during come. of But balanced much years materials of pandemic. reduced little a been, pace some have benefited from been very planning GDP LPG on lot with or that here those at have to of a not for well looks the expecting still There's necessarily even sector. it keep the in growth the And a to that

come has LPG of production about refinery last are It A concerned OPEC the talk marginal. and coming really the increases not online. Iran of that. out The of fairly overall end So by of back the year. did lot already

coming the time. that's the demand at same given online the of Just backdrop

and some focus think this quite we keep to on upcoming winter be those will did the those enough that But not built? that enough get are about of you pace. I hear So things still headwinds

Gregg Brody

time. I insights thanks and the appreciate all the for

Paul Rady

Thanks, Gregg.

Glen Warren

Thanks, Gregg.

Operator

of this Kennedy to we've time our Michael session. now the I'll reached turn remarks. the At end for call question-and-answer closing over

Michael Kennedy

again. for in call today. please out there us. participating everyone free to thank our If to I feel questions, further are want to Thanks any reach

Operator

Thank your you will conference. Thank you. for today's This conclude participation.

disconnect your now may at You lines time. this

Antero Resources (AR) 29 Apr 212021 Q1 Earnings call transcript