AR - Earnings call transcript Q3 2021 | Antero Resources Corporation

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Operator

Greetings. And welcome to the Antero Resources Third Quarter 2021 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] As a reminder, this conference is being recorded. to Vice conference President like host, to now Krueger, Brendan of would turn over the your I Finance.

Brendan Krueger

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

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

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

Paul Rady

Brendan. you, Thank

ago, infrastructure focus out acreage increasing we call commitments, building begin resource through the Antero's Ten over base. Strategy delineating our last business long-term what Evolution. with acquisition, necessary strategy would titled years evolved slide our the scale was and midstream Antero X.X", Let's has through decade. "Shale on X number during

"Shale natural X.X, on growing entered focused and " a U.S. NGL gas to leading achieve and scale we become As producer. production we

to order strong on into time, we in forward and to ensure returns hedged that Contango our curve lock we proactively growth in production this delivered targets. a attractive During our

through contiguous today. and position acreage our the land consolidated we to have also secure swaps acquisitions We position

our shale Lastly, through technology the well to and completion X.X in techniques costs. we recoveries reduce Antero phase. Today, innovation, is maximize and drilling and optimized

is capital and of flat focus maximizes hold leverage on been cash just by of in the have that X.X at The less programs our We results than and third program Our years, maintenance reduced this production two $X.X the from flow. free dramatic. billion end lowered times X.X times to quarter. debt

combined for leverage low was less Our previously allows than strong low Sheet maintenance capital, Balance hedging with targeted. and

least side, the history currently are the XXXX. gas on We hedged entered we Company in our as natural

Hedge and XXXX month NGL's this We have our hedge XXXX. Peer the October Hedging to portfolio X, titled peer our no Comparison, relative very also group. shows beginning Slide as of little X number of propane

year. We have have gas and for our any to gas into management in that and bullish outlook added teams gas NGLs months. and hedges next testament natural heading both and commodity not fundamentals natural A the liquids -- natural over our on remained XX

on hedged and natural XX% gas only XXXX no liquids hedges. are We in have

on all forward. unhedged essentially commodities XXXX are going We in and

review remaining We Now, regularly Inventory as potential. acreage, positions, let's Core of a undrilled provides Premium of a and the Appalachian inventory number Basin acreage X core Peer the see it. titled Basin. location we peer discuss drilling Slide in inventory summary the Leading perform in technical Appalachian

of in -- Ohio for Marcellus premium the total. XX% shown approximately and Marcellus, the undeveloped locations map. results, Based XXXX red we liquids premium we locations that, industry the the undeveloped total, X,XXX than the rich roughly of the performance, also of XXX Of locations. for more premium the holds industry, analyzed XX% Utica the Utica, the Southwest subdivided the and these with Antero estimate In estimate We those we've approximately includes which BTU, Ohio of tier-X locations on sub which the XXXX We've the premium into outlines or well core which of areas. or URs. XXXX Southwest is holds identified premium and Antero on locations

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

plan on Antero's years remaining, of analysis Appalachian with dry locations locations XX has believe of the future. limited Based acreage XX premium across have Antero number can least top to Inventory XX the is per much with producers. which see of of red Fatigue about quote-on-quote, competitive our drilling which map. of horizontal development gas years This and which at are many optimistic nots the drilling lines be leaves distinction between that Marcellus towards we a and maintenance wells liquids critical You on look and as of haves on existing will assumes wells, that. we the the idea us covered productive Utica the the premium locations, up Ultimately, year, level advantages

commitments, Turning with released commitments day our volumes. October million to intended titled, XXX X years. firm over highlight a rightsizing transportation Utica firm was originally of to reducing $XX capacity, be the This fees slide annual On we number transportation million. takeaway our declining filled by we Xst,

this rich to to. year our release capacity acreage, given un now or on it focus, underutilized liquids the Marcellus was -utilized development prudent However,

released a transportation a a of over have annual commitments, million just We day $XX transportation fees million reducing by year. XXX of total feet firm cubic

our to our firm will continue current match optimize to maintenance best our and transportation capital program We focus. portfolio development

on This the Antero's of business liquids-rich developments of focuses that sales. the on Appalachian producer largest product seven benefits chart in strategy number unique of product and turn as Antero maximizing out-of-basin Starting Basin. the liquids is with slide the let's see, Now Slide and destination. you diversity left side can the to the illustrates top titled page,

liquids NGLs, to in the basin. the export half to producer, ability are of not our bottom liquids highest only largest with on plus chart Moving our the we the captured CX pricing left, the but we

Now, that sell to let's top basin. of of realizations. at firm XXX% natural natural direct gas the natural of highlights is side our The us of right transportation industry-leading chart gas allows The the our gas on this result out business. look the best-in-class portfolio,

As export Mcf illustrated advantage during averaged of The price in on that which a premium the to hedge going over to NYMEX a his to Mont Dave our right, exposure for Cannelongo of it direct profile, chart that, than and portfolio were significant exposure our Look FT back better efficient to prices. $X.XX resulted & With competitive President Appalachian bottom and the turn NYMEX. Vice Liquids I'm third Marketing with we combination way in-basin another NYMEX low markets gain realized this per quarter. the $X.XX on pricing, to to most our at the of way, Antero comments. realizations makes $X.XX Transportation, Belvieu

Dave Cannelongo

ethane Liquids prices manifesting to XX% Thanks, CX increased XX% time. and Paul. has oil bullish Having The for up up over Pricing plus. XX prices XX%, backdrop during that

For double over highest our CX Current plus polar $XX are Antero, the price XXXX more per we for since than pricing the realizing history. CX is vortex accompany plus quarterly current for and plus February pricing are currently NGL our on of Ngls strip period. at highest CX year-ago barrel, pricing track

barrels at the the end were illustrated year-end of as this propane out anticipate this will propane slide. number currently U.S. Belvieu, be we export volumes strong fall. with Mont has lower-than-expected up titled throughout XX pricing and last low a a year, see you million pricing the barrels to Focusing inventories remained at the season Market barrels around refer the we Slide predicted U.S. risk that Despite The to ended of upside. Previously, we fall. million seen, skewed levels inventories Fundamentals. be heavily range to inventory it market, Propane the peak Ultimately, the in had will remains arc result export I'll the summer for on X dynamic with U.S. million but the LPG sharp increase the open. to on for end below XX Where propane we'd XX winter of withdrawal into the

of that global demand day and winter, pressure a Europe North nearly resulted many demand, LNG demand in XXXX XXXX, fall of hydrocarbons XXX,XXX LPG for in we've industrial barrel today's price week, the XXX,XXX power the prices half in and these LPG to during a gallon driving elevated a of day use from What time Slide is level Turning the The past the BTU American On China heating is about to delivered ARC XXXX. talked in growth number over in reaching for and [Indiscernible] this per gas. this this applications in from in period. barrels incremental natural the European markets. lieu nearly markets, that East and widening in was increase ARC. additional equivalent export LPG in for cost PDH is LPG a the anticipate, did not $X.XX highlights and This same Asia. in basis, impact high the LNG through of propane export Far X highest demand its

remain winter, to for As result demand we ARC of globally enter reliance the volumes. U.S. open. A expect export strong the we in export

both NGL and over days. been October hedges tremendous NGL at Antero forward, turn remaining being free This X, January prices oil unhedged in Resulting on to pentanes all we has to with flow and cash Looking will it the approximately longer-term I of given for XX just fully expiring beginning since are plus the that, volumes Antero near XXXX end X. quarter. With unhedged markets. and or these this an positions completely on And that our propane fundamentals see butanes Mike. AR on its generation, and exposure

Michael Kennedy

Thanks, financial on Dave. start strength. I number would highlighting like XX, to Antero's Slide

flow to $XX quarter, During million generated use the we reduce which we net debt. cash free third

the of just $XXX LTM $X billion to debt right billion EBITDAX represents improvements slide of at Total combined The third from at over top EBITDAX, times LTM at times net the end of from billion $X.X at quarter, Our from reduction XXXX. down debt $X.X leverage the in year-end quarter quadrant X.X year-end year-end at third with the X.X of end the million illustrates improvement decrease third decreased to XXXX. end quarter. the an of the over the

below to first the ahead reduce look coming quarter free continue of the in we cash in XXXX. leverage we flow is and maximize quarters, times one will to which to expected result As debt,

cash billion, flow use to our return free to approach absolute to capital of we shareholders. begin $X we expected debt can below As target

over strip highlighted of out looking Enhanced ten, cash cash dramatic Further, Antero. titled, XXXX, XXXX, in now from We significant of in XXXX. put flow at value than billion time increase results pricing a XX flow outlook through flow Free number billion. slide million the commodity These strip. Profile. NGLs and context, free commodity higher the expected with excess exposures forecast cap period, and in Cash market on annual of that which margin, the in quarter improvement our natural free in cash flow approximately XXXX. $X flow, free The over despite we through right number gas substantially current $XXX fourth substantial that Flow signifying free To the cash quadrant backward cash EBITDA in bottom in Lastly, our our slide are billion more on tripled in $X targeting is free enterprise approximately dated $X billion $X.X in is highlights

our this billion. reduce increase, flow borrowing substantial years. with received balance from Slide with Recent to XX% our number you an facility October and coming we S&P. strength. and the of -- we XXXX improved see upgrades the commitments credit XX undrawn elected our week, given balance base increase Moody's Despite essentially from outlook to a ratings we of cash our free extended to both This strength In Turning benefits over Enhancements, Credit titled our early $X.X sheet to financial

$XX result by earlier, profile. upgrades, letters transportation a liquidity credit As of the our our And of in these were replace million enhancing we letters lastly, of in that of bonds, $XX were of commitments results Paul credit. further letters with able to surety further The reduction reduced another credit million. release million our firm $XXX discussed of

expected enterprise consensus At best positioned is Next, estimates side The number achieve XX. let's at cumulative period XXXX. Appalachian each return left-hand look fact capital. producer of which to estimates. the through these free is s leverage. of cash based in provides chart indicates to a Slide Both bottom on one is a are chart percentage of flow value the turn and Company This times a which as to

upside validate achieve as Said we position look has also to appropriate We're pilot XX. quarter, TrustWell about attractive to option. capital can third you Project we to also process. As shareholders. will first number Antero leverage our July, share the earliest, process but the the we upgrade program B. Slide at high produce the and we only have our not during In excited received certainly In be to balance we aim today, attractive the look sheet the third-party the we Appalachian procedures, to be see, the buybacks to with Company the And clearly projected Canary's August, is a outlined By also report, thousand remaining. providing X And extensive producer have ESG debt one environmental fourth operating momentum ratings Triple locations another return which and an second in beginning to cash by a free using as MSCI in from in committed in natural way, most standards to expect momentum the flow on Certification Antero the ratings we coming to this and to billion 'XX. announced have U.S., Antero, inventory expect with gas. times our strengthening year. outlook. world review October, highlights, Flaring months. the which And position of reduced published Quarter our And beginning continues liquids by $X.X prices. drive largest ESG impressive Since our program, To gas below the for of approximately to natural relatively as best-in-class leverage core we producer to we significant the unhedged, times Routine the have -- number further First scale titled XXXX more we've we largest financial World We early following investment Bank's this commodity initiative the summarize exposure strength we're in and slide of the key highlights summarizes and the execution, NGL XX Zero deleveraging than today premium

billion low over to forecasting generation includes small backward cash XXXX. performance. operator we're leverage, financial and flow These ESG Lastly, with now of EMPs of and dated through scale, flow questions. free cash significant strip, prices, a Antero will natural call $X and group I a ESG strip assuming leading that, among generation, today's gas the sustained NGL free which With place operational, the turn substantial over metrics for

Operator

conducting while question-and-answer session. Thank please, we'll Instructions] At this a time, for you. pull be [Operator we One questions. moment

first The is Please from Truist proceed question Dingmann with Neal Securities. of today your question.

Neal Dingmann

even even as and we've gas a all fantastic put is side thinking on been coming [Indiscernible]. gas, the something of the only out fall Or thinking, of you guys the next on still continuing or I least hollers hedges it obviously Mike, have talk now what it, $X looked month at Morning turn kind is even there. high it I'm off back you you to on least -- nine all I'm question dry course returns, to about seeing some pertains just at you'll [Indiscernible] non-amortization. liquids, When year. My be on have But call to that my had tempted gases dry on given quite in you to and see, questions price. what we getting not not assume gas, is -- quite at

Paul Rady

we're Neal, of in more we're the there Paul. the are but but pretty more of advantage Hi, highly the gas across completely no, of, pretty and feel will the the obviously Really quite good as of higher upside, good accelerate we is feel aware forward you being it's the as have understanding exports. of prices are a our Good know, that and there, you fundamentals and world, delivering. shortage to that position, to collars unhedged looking aware We're skewed that out question, to take market.

of to now at get some aware So way looking the right upside, just at the it we're we're of even that like gas is hedging things not all. collars though

Neal Dingmann

on any the Okay, balance at so fair look then, but issues you delivering, follow-up. good going I of continues your you enough. gas on louder. be and when in looks dry It mean, see And crystal out on sheet the there hear you it to lower makes Let's both -- more firm's say your just capacity sort forward. question my sense, especially liquid [Indiscernible] is Really, side, ball? the Paul, to improved

plan to you of gives it that the there, out like put any is that sort concern? Given anything there

Paul Rady

Good at for any reason no, question, see concern all. but don't we

of plenty have We liquids takeaway.

markets. gas of plenty have to natural We takeaway the premium

have And get let FT we so though some talked Of it go have that before we about, it quite even to analyze we we liquids and Gulf FTE as still recently let where we and about with feel primarily we course the Midwest, enough Chicago, Cove I for NYMEX-based and good stand feel premium Point, to there with also the markets, we it takeaway. which Coast, us. is market go,

Neal Dingmann

for Paul. Thanks time, good. the Very

Paul Rady

you, Neal. Thank

Operator

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

Arun Jayaram

if Mike. give path path be you you of market down comfortable next management additional think the Maybe in and buying the pay was and morning, debt to of do back that Good us if perhaps maybe when $X target. towards could the you try Yeah. stock holds appear be Mike, your the to gentlemen. you going in for could billion are terms the framework does capital forward some beyond it year kind return I you strip would wondering think when unveiling the team do

Michael Kennedy

Yeah.

X where like Quarter form to pay today look we addition on and And in the you target first XX. then occurs in billion mentioned, some in will strip down that. the debt with First of in would Arun, to when that return below it of All sometime put that's is quarter. that capital place be continue

Arun Jayaram

XXX term this deck, enough. is Fair highlighted cost I year slide the couple us call down the you production and of down? your you XXX to the trend of guys enough. stair that longer have then how In long-term XXX wondering Fair was range steps -- could a years over if is to next the how maybe that XXX? And from average help

Michael Kennedy

as The the comes the is taxes. coming And variable it's It real time. Yeah. that over only there tracking the off strip that's on taxes, price the pricing and commodity off severance just backward-dated costs. ad-valorem,

Arun Jayaram

the implication it. XXX Got right? XXX per But to is is the average longer-term is MCP, that

Michael Kennedy

Yeah. Yeah. an decline unutilized the the firm annual shows to And basis. in transport firm on then also like chart that continues transport,

Arun Jayaram

I'll Great, thanks. turn over it

Michael Kennedy

you. Thank Yeah.

Operator

with The Goldman Please is proceed Umang question. Sachs. of question from next Choudhary your

Umang Choudhary

Any cost Good and you drilling next activities? Appalachian around about elections around pressures of questions. also Drilling think taking on JV will to prices? for to assume thoughts get your spending seeing wanted strength you Hi. Quantum year. XX% completion my year you're that thank commodity you to also and and read elect annual and morning on towards the next And XX% range, with around I inflation should your that, the lower inflation probably the initial we range, given the go in end as

Brendan Krueger

Yeah, Maintenance good around capital million. question. is $XXX

For this inflationary right pressures, we're that year, obviously been now. there's determining some

in local if of And do of online election come mainly million like some we that the capital having In efficiencies perspective sand or maintenance plus, it's offset choose quarter, a of fourth that. mentioned, level. in participate some from they XXXX. out the sourcing, you Quantum will have also But XX% either XX% have which We $XXX our looking to

Michael Kennedy

XXXX, it at returns kind what a you commodity of imagine generating. prices XX% today's can was at we're

at likely most elect have So them we XX%. will to be

our the And would a over as the year. at plus assess final coming add we to beginning out So of have to XXX for couple of still little of inflationary determine pressures months it. well budget going next but bit that the capital will million

Arun Jayaram

Great thank you.

Michael Kennedy

you. Yeah thank

Operator

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

David Deckelbaum

questions Thanks taking guys. today. afternoon Good my for

Paul Rady

hear from to David. Yeah. you Sure. Good

David Deckelbaum

in-basin on Mike, Likewise. follow want just to up actually I the sands.

then all all year? covering sourced be Beaver impact next your it on guess going your the projects the Just locally and sand is of I of jobs from totality Is frac to this 'XX.

Paul Rady

really going a There This be likely for will last with and around but this is it's sand. our this (Ph) been may Northern sand local of programs. is some save? local Paul we've we're the be to, it comes $XX cover totality a while, versus been about David math going prior. down be local have yes, $XX and White talking much an on most the developing how for probably ton as-needed virtually to The can it And it supplemental basis, to that sand our year

savings well, So a it's so it's and lot that of that's we and $XX going ton savings from, tons inflationary about we about can come $XXX,XXX we X,XXX offset a those into do why a well. to $XXX,XXX think XX. a some A of pressures

David Deckelbaum

me. clear. just My markets That's That is just 's base on next the pretty certainly with and set propane Antero on question program. all

maintenance the the obviously, But the can fractionation far, go it seems capacity I for Sherwood Marcellus highlight compelling You in being case a any volumes out etc. how of mode. like volumes -- a so there just in facilities, capacity CX+ and with forward, particularly are some about time online? agreements way fractionation that with is think time propane the guess, do the with you coming over growing over or built

Paul Rady

We have plenty of capacity, David. as fractionation capacity, well, processing

-- So Smithburg, latest we at We generally fractionate that plant in but can but plenty our there's Hopedale. capacity at for which at between of more or frac both processing, Sherwood at have complex, Majorsville Houston, think Hopedale. I also and room we is

that propane on it's -- in a keeping just the but but maintaining we And physical I don't of high plenty plan bit, growth. accelerate. So the it. and like have damper -- BTU have gas overall It's to and economics continue But have the our quite inventory to we would certainly do constraints. think developing discipline any no

David Deckelbaum

me. for And one just a Sure. last

there's contracts beginning, of as have place that sort And macro where especially highlighted the agreements supply of a with the years way is floor be and online much online. There isn't lays the case providing propane, remember the getting requirement, demand guys the in Are or obviously, so and you at out, You certainly in-bounds would in certainly you above today, lay but coming some dehy coming that would your in you strip. either the fact plants surety? you about is being business X that international side of signing on back CX+, I demand an think XXXX, out especially shortage hedged given you for there that coming the the off-take years, interest different.

Paul Rady

not We're tempted.

LPG that we know hedged last we our about in You before, the story in this we world. the were a it's good little to We lesson stepped bit But of felt spring. up told of just go to and last across propane, just We we're dream had but butane learned but away. this and propane fundamentals butane, going going wonderful and spring. wake

LPG hedge a second because propane, did third dated a we we for backward that and we butane which the ended spring. up So price quarters. lower curve the what And into projected it was last enough sure backwardation was of from and

fast-forward today, backward so dated. curve still that And is

believe live lot best so And LPG of curve. There for are front we of it's a that there. out appetite strongly -- the the there's pretty on to

happy sooner. there there's I We're we've that aware down have receiving we've can have more for quite hedging step and market but Hook situation it dated. into there, keep export write strong not really back physically, cargo the get the and selling in and front backward locked we have think at or at asked that into parties a know would Dave hedge dock our they if on just exported say the Cannelongo, we're is that temptation we lifted to that that the with paid in the Marcus haven't where appetite,

David Deckelbaum

you Appreciate Thank guys. the answers.

Paul Rady

Thanks.

Operator

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

Jeoffrey Lambujon

for my Good questions. Thanks taking morning.

guys highlighted. and on flow deliver approach of I be further wanted reasonable things still range can objectives discount something think just cash free hold debt your to you First, in value. to about nice buybacks as can return go your at into -- If I a possible quickly not far to and capital I Balance off get intrinsic cash to billion from $X discussion as up that'll strip the that rationed, free of free just as a XX% here as cash target's year. thoughts the to as year, next goes next the you mix is you buying follow too far Sheet while want

Michael Kennedy

on that We haven't done the math yet.

debt our down from probably Just actually or issuing credit equity right calling that it million clause looking at of standpoint. now and you facility pay $XXX you through control could identify or about X.X that, Either can or buy-in. to the a ability

of So anything be a open get that, sort get debt size. And that you dollar much will repurchases, to from which further market probably outside level of that so ability is to after going a once liquidity difficult be on, going from to any it billion-up reducing probably slow that.

I some former than do when to that call can when below debt. allocated think bit or internal to buybacks So you there little be probably in a all prior more share capital get that that, we absolutely

Jeoffrey Lambujon

the specifically and to you might about And That's think that firm helpful. thinking then, GP&T be the the as some optimization? production on you're wanted with transport prices, very benefits Gulf secondly, I of how just offsetting GP&T get about accessed higher commodity and what maybe

Michael Kennedy

is increase think The that. of taxes solely X.X% are the or Yeah, X.X%. I because like around

those be it's So, and gathering, models, the In the commodity any that. Coast, of in time relatively every that. shouldn't there we is It's from higher-cost your just be will premium price the or increase portion now to realized prices We're of be swing The the GP&T flat, further. affect tax will items. we're taxes go out or transport that's already NYMEX that down, that expense whether the will so utilizing in right prices up won't of taxes. right should flat, just actual transport so basin, So have $X.XX going up, we're as full go to now have. processing, the optimizing are go be X.X% Gulf That up getting. commodity any all taxed pricing the how our Midwest really resulting is gas

Jeoffrey Lambujon

you. Alright, great. Thank

Dave Cannelongo

you. Thank

Operator

question Company. Subash question. of Please with next from is The proceed The your Chandra Benchmark

Subash Chandra

about how thinking you Paul. Hey, are --

Paul Rady

Hey Subash.

Subash Chandra

these That's are How as days? you in the for details think and be coming valuable you morning. some nice have more someone you in I five-year locations to on do Utica that premium portfolio about certainly five-year can back Good the But, Utica activity about how thinking I mean, there else your much levels. do activity scenario, than your think that? but or

Paul Rady

a it. a since Yeah, Utica. year first we've the well rig come in this gone general, because think the about we time way over over -- Utica it's And we moved it's XXXX. to long We've the drilling our techniques in and on

Marcellus we Marcellus so geologically the the expensive that the of that near certainly are a Utica both little going as on as us economics the good more and more No, and ahead is And the rig. hearts just the into just, but the Marcellus? have as probably than in a will be but they're Utica. in but to XX% good is better, project, Marcellus. The to still of much it's Is over be our drilling drilling as direction in pointed priority the not dear capital our some

where And our so focusing we'll that's capital. be

Subash Chandra

question million ways. have This asked a might different been

of equally What position for you're probably competitor You going in just replace in the 'XX, probably conditions or I'm it again. of you? inventory. in so to the And, answered with inventory to that, regards it a million Only to different in suggested peers are grow yesterday try course, because growth order better your ways, Basin. fading to one for might post step they

Paul Rady

No.

much Conditions for especially fortunate the can inventory quite for for with are time, just to plans needing good just really are through, know. -- don't our really debt. any reduce rest we want stuck right, gone we, long to independents and we debt. You're that. about so has feel and really really We of just determined we quite good a quite to industry, growth, we have growth, lay before the too what after but We're

in -- feels go to really that quarter pass billion where absolute there, to just see and on. but the dramatically. it down get first will Mike debt We'll I debt so as to after X.X elaborated of that deliver As good we

Balance just right with pristine and and just flow. now I from free to away to we're growing, see getting So more. try and are focusing -levering buy happy -- where been that staying cash Having think that tempted can you'll be the and want much will see really, but shape. Sheet with de different we that on or we debt ways back creative reduce that and we're more, leverage the I whatever

Subash Chandra

Thank [Indiscernible] you.

Paul Rady

you. Thank

Operator

question question. America. is with Brody Bank Gregg of from Please proceed The your next of

Gregg Brody

Hey, paying -- as guys. about as analyst. paying credit the commentary a I debt -- appreciate about down

used a security in credit has actually just away. investment-grade. there that new falls I'm I the haven't that curious. You facility word covenant the noticed

is If has that greater, that you GM or a wanted intentional a is been that target. you was does do in there there that because something

to grade. investment get you So

Paul Rady

know what's was don't I Gregg. but target, intentional, the it

how fast currently. rating gone, conversations do us was our year where agencies how always where we already times -- are. the response and matter They've said mapped this X it's do it doesn't investment Our they've got we we they and to at with unprecedented grade upgraded stress look we

we You in mapped further grade forward going I we we from are free the us debt. generation do where down ratings and the improvements on should if prices, this and investment based rate flow occurs expect would today. pay the cash strip

way. designed and credit the So we'll facility definitely investment why that thinking be be we should we that's grade,

Gregg Brody

to investment want grade to be there. to usually hear They get you that that, want

-- comments me earlier. let So your

Paul Rady

We quite just time. that often, Gregg. takes they Quite frequently, respond. It express

Gregg Brody

billion if question there? is $X expectation about And are how That's so, for last you you that? thinking had taxes number flow an then Got out that cash it. for free in there, And you is helpful. there

Paul Rady

and horizon. it's X think, inside Yeah, over, actually I the I our mean, next years that's tax

good in that further but so to that not not right to paying capital the our taxpayer. shape well our and that, We deduction. generating start frame, sneak development on a billion have prior X-year we're some program, now, point with that we're a cash -- don't you time tax, probably $X We where taxpayer

Gregg Brody

to And you. a Nice have say makes. I just to talking year a difference what

Paul Rady

that. to so That's Yes. true. agree I Yeah

Operator

at Brendan no this questions the are turn I time, for to there like remarks. call to over back would Krueger additional If closing

Brendan Krueger

Nice. Thank further Yes. available. us call on you We're joining with any and reach for please out questions. today's

Operator

conference. concludes This today's

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

Antero Resources (AR) 28 Oct 212021 Q3 Earnings call transcript