Antero Resources (AR) 26 Oct 232023 Q3 Earnings call transcript

Company Profile

Participants

Brendan Krueger	executive
Paul Rady	executive
David Cannelongo	executive
Justin B. Fowler	executive
Michael Kennedy	executive
Bertrand Donnes	analyst
Umang Choudhary	analyst
Arun Jayaram	analyst
Roger Read	analyst
David Deckelbaum	analyst
Jean Ann Salisbury	analyst
Jacob Roberts	analyst
Gregg Brody	analyst
Subhasish Chandra	analyst

Call transcript

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Operator

Greetings, and welcome to Antero Resources Q3 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brendan Krueger, Chief Financial Officer of Antero Midstream and Vice President of Finance.

Brendan Krueger

Thank you. Good morning, everyone. us Third joining Conference XXXX for Call. you for Quarter Antero's Investor Thank few the Q&A. going highlights, spend minutes We'll a through we'll it and open financial up for then operating and to I like non-GAAP may at where reviewed presentation have would we contain during financial call of a earnings will to you certain www.anteroresources.com, separate also provided that our the direct today's website homepage measures. be call call. Today's the measures, most earnings press release important including Please reconciliations such to GAAP refer our to comparable disclosures for measures. financial regarding

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

Paul Rady

I'll on on XXXX the half momentum first titled you, Slide a Efficiencies. build start of third Completion Thank comments to #X this After continued my and Drilling record-breaking quarter. during operationally, we Brendan.

of XX% our our had completion contributes nearly stages of XXXX, studying a per times XX% averaged months from increase improvement we pumping roughly a our day, from times example, times through compared average significantly from completion company hours as have XXXX Shorter This days. nearly ago. June, completion completed In cycle a all day. Year-to-date XXXX. increase the a shorter June, total stages times capital decreased and a fastest cycle led averaged to our quarters of per The XX% As the it hours of history year an hours XX% record and pad first day operational average to higher to day that up in per XXXX XX the impact net is cycle to stages to improvements X set pumping the XX we times by day just have bottom point, the has In over hours per levels. for turning XXXX first on day, in XXX and a to our XXX takes sales. Since an day. number completion higher X XX% of pad company XX reflect per this entire over pumping XXXX. on first means on of expected impressive These cycle our the days of we the at page. Highlighting during cycle average stages the shown efficiency. days increased

improving performance turn ago the X in Now period. compared efficiencies let's and well Faster X% total to XXXX. gain the to has quarter third This production by times guidance led increases is to growth cycle in production capital Slide #X. highlighted our year in

production X% volumes XX% while was Our natural gas year-over-year. liquids growth increased by growth driven an

this an on in or to from XXX annual this rate increase expect rate now at exit the Looking per by day cubic million production year in X% we to basis, the feet XXXX XXXX. exit equivalent

capital efficiency our these Importantly, budget. maintenance also capital gains reduced

We in D&C alone. operational by gains capital to driven continue efficiency lower materially XXXX expect

inventory multi-decade our position. to Lastly, I'd discuss like

add location through acquisitions. Touching for is production sub of can low-cost of a been per It's two, this million location of inventory from your firm footprint. On $XXX pipeline believe invested peer-leading the combined out the headlines. chart same #X, less years. largest average, our on the over recent than limited XX drives capacity peer has of This value. transportation locations In inventory in acquisitions efforts positions our is M&A on based which to per able move on billion million Turning debt X $XX basin important within recent time spent to for repair. With this shareholder or largest $X to focused either million peer to at improving focused one, the usually targeted our over lack we absolute for compares we've last and to contrast, some $X.XX sheet on balance inventory; the ultimate and average we sector organic that most a where E&P core Slide -- portfolio a leverage, the acquire In the on that over peers locations comparison half drilling thee, our after program. the leasing cost M&A years. drivers for third-party titled to natural the development relate our has AR report. Antero lowest flurry $X position, we've data That operations remain approximately across drilling a inventory inventory per group gas low-cost Mcfe inventory. Antero note low stay opinion,

Now to I'm Liquids President Vice of current to comments. the fundamentals. NGL Transportation. and it touch to Cannelongo Dave turn on his for liquids Senior our Dave? going over and Marketing

David Cannelongo

of premium the pricing second the seen East added energy crude with particularly global crude have in most war the Middle the further half prices, geopolitical an year in the in fears concerns spreading market risk The In East. the in uptick to the in market. as volatility increased have Middle of of macroeconomic has recent first conflict and new half concerns the we have Paul. XXXX, eased Thanks,

Turning to propane.

about on than recently per or printed high picture day year prices better are year-to-date. export been day. Slide a above per the of X WTI average. consistently X has While X, barrels new million are exports strong demand weeks. above recent a XXXX X.X per full averaged XX% and Overall, as and barrels has high lower set record day percent in weeks weekly fundamentals painting The barrels for absolute XXX,XXX usual, propane propane consecutive Shown million propane and a inventories U.S.

tightness are move we Coast in expected further As potential capacity. U.S. to into Gulf increase DUC XXXX, causing exports

the and As export therefore, volumes DUCs. skewed Pennsylvania, heavily XX% impacted at in Antero's out production, are our Gulf Marcus towards a reminder, Coast Hook particular, of propane directly exports export not over terminal Antero CX+ by constraints the of in

In out to Hook fact, be on Coast kept line tight of capture in arbitrage exports the capacity supply these to days Gulf wide international Marcus call able its advantage pricing, in historical of with propane and take opportunities. The Antero propane levels. has growing strong with will of capacity

XXXX start into to increase to Strong winter quickly heating quarter this heating as propane above inventories the As just mild in last XXXX while above day heads exports, seen demand winter to deplete of winter the X-year total fourth of the market top X currently added sit will on X-year the demand range. Adding season. Slide just average. the seasonal surplus the also is to inventories X, the strong Propane withdrawal days supply that season. could the the

been day expected Now of demand XXXX, imports year another year-over-year that day with the Buildout the stronger let's online now China of exports a in capacity XXX,XXX online estimates from seen substantial. PDH major is driver XXXX there. XXX,XXX the a are U.S. petrochemical which has barrels August, Continues. come capacity to X China. Industry and despite of China, between has titled turn Slide This through to capacity just from barrels propane to dehydrogenation and has been ramp added that year over Even in demand of some X/X additions expected headwinds show PDH end China or has XXXX. strong of this year-over-year PDH macroeconomic propane growing A been

year-to-date on now increased XX% demand. Meanwhile, year-over-year amount increase of of XX U.S. XXX compared accelerated XX% counts a Slide counts the U.S. through by falling of in losing this year-to-date Chinese cargoes directed the by propane down and exports have supply side, to year, gas This as August required rigs decreases just delivered the XXX both year-over-year September and recent January drop, X. propane Middle This XX% up rigs down the with weeks, demonstrates seen rigs. represents from continue a between marginal start oil to to drop XX For on across East. to above October. rig are make that and total Basin China rig rigs, increase end the continue Permian U.S. of

particular, XX% China, improvement have we XX% rig NGL-producing the domestically are Ford believe and and of basins key from there positive President fundamentals direct with Overall, SCOOP/STACK year-to-date. to that as signals to natural it Additionally, markets. With and into producers access their gas Senior international that, turn market. XXXX for counts supportive in of such seen over signs Natural with demand discuss for Vice declined Eagle the Marketing, Fowler, Gas heading NGLs like our Antero I'll to and Justin

Justin B. Fowler

we the Thanks, of count rig in experienced compares Appalachia Limit seen Dave. the XX drilling the plus rigs this with top at since that approximately by declined titled to beginning we This rig I decline chart Dramatic #XX Slide Growth. XXXX. similar have will start of the back count slide, Production Starting in rig the Activity the Haynesville year. Reduction on Will

slide, the As the gas X took it production over materialize. shown to bottom chart on months natural the at of

the by in decline it way. we this just in that as declines a crews the decline important we to drops the much the when rigs However, completion came U.S. sharp U.S. of highs. XX%. years and XXXX, from drop to to Appalachian X about ultimately come Today, XXXX the A the natural summary, and over declined gas lower as An Haynesville of months this Basin. In rigs curb Further, higher contrast XXXX in began took helping market. have majority growth natural is X production get from time are decline in XX% to to cycle from the back when out Basin. meaningful rig almost sustained production will rig around, believe distinction however, sharp balance gas in

substantially LNG out to of corridor, to as on approximately As Slide LNG Fairway. all sell the a basin, titled our gas transportation XX% Firm #XX, reminder, the including we shown natural of

us X provides Gulf the Coast Coast. growing points Our firm into and transportation pricing demand exposure along Gulf importantly, Tier portfolio direct to along with LNG the

map Tier X increased strip, premiums $X.XX titled LNG which their at Not but to gas to Based in XXXX, premiums the Transportation some This selling the Firm #XX, your selling Antero our Gulf X $X.XX significant in in to prices to stars X, to All directly the increasing above have their and points, gas Next, the benefit back The NYMEX the move NYMEX doorstep. reflect line, I'll they Equal. XXX claim bring at NYMEX Coast, can both current XXXX. Meanwhile, volumes in to depict were strategically slide Coast pricing. turn where yellow is TGP Tier Slide XXXX. actually sales on gas of on illustrates Tier and in including Coast to they're the Gulf peers the negotiated XXXX stuck XXXX Gulf

into volume of to compares XX% the As This X chart top average X sells pie depicted their the XX% our Gulf Coast left of its X directed which Antero gas in slide, pricing. of Tier Tier sell the on of the peers, and pricing. at

Looking compete NYMEX higher Bcf, to points these it as ahead advantage over increases years With at export next will versus nearly premiums LNG capacity to X Kennedy, for as over I Antero Antero LNG be to facilities sales by the that, peers. expect even Antero's X a between turn our Mike supply, key competitive we CFO. priced

Michael Kennedy

Justin. Thanks,

like storage prices. levels and how view I'd some #XX other. pricing to the each gas. storage that natural additional historical illustrates to comments Slide on natural outlook have we gas chart First, between examines add the This high the correlation and for relationship

gas is average, levels industry the the are storage the below level, Mcf. levels when maintenance higher. Since with would which production X-year per flat the storage are X-year essentially when the or average, gas prices are As low. storage natural prices $X XXXX, below moved And X-year natural trend when are you when above levels expect, averaged prices

in gas to low XX% resulting sentiment at high rose as Looking average, as prices. and above negative the storage levels XXXX, X-year

the Bcf However, burn average this production during exact XXXX, have at moderate levels Bcf your half average XXXX, which LNG highs, the next to second of balance coming anticipate in today over we surplus, next go and of thus XXX the level providing surplus year's X% record the storage hitting just from expected today. would a record same at exports levels year, will XX in support the today's months to power with down just if you storage X-year of sits point, on drove X-year storage natural surplus time X-year this average. gas to prices. Expanding to almost With

y-axis on Next, touched and plot illustrates that on in on axis, EMPs. in production like deeper in change the efficiency comments. The go the X change and for on a improvements scatter capital the I'd little the completion the his and #XX Appalachia year-over-year year-over-year Paul capital drilling Slide to the on

target X% capital declined year-over-year. Conversely, you group third growth attempted year-over-year. we capital-efficient most that the invested to to actually grew a deliver a volumes drilling While targeting quarter the actually Appalachia. far operator to while capital maintenance maintenance the and and capital been XXXX completion growth, our program, production their compare When peer have away production Antero's program, in

capital a production, implies hold per X.X roughly million. have both we performance and million budget that else growth Bcfe million of $XXX million implies rate approximately by day, of As $XXX XXXX of internally, thumb in reduced result true expect day rule down. Exit $XXX exit each volumes XXXX gains in change maintenance day change efficiency million, XXXX, a capital a to well rate we view This our $XXX all maintenance million of to $XXX approximately true capital $XXX equal. up which to of to production a capital and

significant now during Bcfe free this and outlook, performance improved for strip X.X to call our lower that, flat maintenance third current substantial XXXX at of operator upcoming communicated capital in is our beyond. to flow lower and our day capital provides than fourth hold even I with flexibility the capital XX% either cash natural to lower XXXX way, will to to us XXXX, level. Either with higher and our capital ahead quarter expected at combined hold the or Looking over volumes gas efficiency to questions. approximately With previously volumes our capital to a the process lead an turn budgeting well X.XX

Operator

Bert [Operator today Instructions] Donnes Our Truist. first comes question of from

Bertrand Donnes

changed you capital, some the a first simpler was addressed this the of some us versus the between mind? are that sort the you're difference efficiencies of bit your looking what it you the out change investor Is the lower messaging? little feedback? XX% capital there meaningfully the questions. the in But it and Or always you Or just just just at On Is spurred the plan strip program lower the time. for seeing? laid

Michael Kennedy

is anticipate twice million be No, guidance throughout well. the of expectations. rate expect $XXX rate. year. ahead exit as QX over exit change now didn't We've wellhead in well higher We our a production is our day than be QX the gross to to to we And volumes raised

improved. the efficiency, all the have assumptions And well capital so just performance, those underlying those

have why And so out in risk, upcoming use, figure always we and some hit we how have this We that the assumptions process, that's we budget to those. we typically risk hit. production see required go we levels and numbers our which and dial capital at can from in there any want any pretty to capital we at much want We the levels.

change those changes it So when assumptions, you the capital.

of be the be would maintenance it for we XX% kind but well We'd below communicated guidance previously lower, So that capital, holding XX%. the current run XX% be if rate. would held

Bertrand Donnes

LNG a is then get the winters. And say out, but strip plays out. few cold follow-up That's we great. my of kind actually get maybe demand related, doesn't pushed

and some do environment. Does maybe change? that hedge of You maybe see a program, your Or some and are to Antero's respond a environment. could the stable you your away. peers plan with strip? I higher was probably maybe stable to new an step respond you But of growth bear attractive or efficient stay operations you bull stair do just up of level to try feeling to kind risk

Michael Kennedy

we we say. said, improve. We're stay maintenance just it to to No, continues It's just trying as -- capital. achieve

and actuals, that pay capital equate debt then a our to remainder get we'll ultimately, the where maintenance program to and so shareholders. and we to have assumptions capital maintenance return at stay of level the capital So we'll down

Operator

next from Choudhary Sachs. comes question Goldman Umang The of

Umang Choudhary

you do I next understand wanted year? side, macro. positive into propane the risk Like for healthy barrels the upside PDH around if risk build-out downside all heading XXXX prices of on you your on around any propane there wanted facility. But you to next expectations prices, exceeding the see to supply on for the given back with of day year. I see are risk EI XX,XXX details circle you any on supply also of demand per and both oil and propane I to appreciate said, downside thoughts the

David Cannelongo

Yes.

could the On if on hit the in even DUCs really Coast we biggest of Belvieu those would propane with Mont in We the you comments what side, I highlighted full say see kind happen the fourth our pricing, that utilization. third risk or extended unplanned quarter that maintenance planned big has driven saw or third facilities quarter, of in had export records quarter I guess, here reported. X the propane lower the X into despite some that we've numbers Gulf

inventories And increasingly months overall fact that recent than numbers lower big we points So export utilized. I would those higher higher to have today, becoming where a Antero. and stand But we that's for differentiator not in had facilities think the are seen happened. that it really here

back in If had was East of XXXX, go the we back to, full I think you year kind it online. first Mariner

the gallon, in to Coast were and us We were $X.XX had and $X.XX, wide, capture they saw high very U.S. Gulf the utilizations a that. arbs $X.XX you

And could pricing weaker you strong Antero. this so seen something ultimately or where could you've XXXX, see third we year for Belvieu the that's sorry, quarter, in like -- in here Mont play arbs have but that out

do move into some that we we capture As of value XXXX, today.

some the first are deals have before roll end We the contracts off that quarter. that term of

contract in and And fully so value. capture that able beyond that to we're XXXX, on

side. out that right realizations And NGL if plays now reflected in so you'll think that [indiscernible] the I our see looking propane on

ago they think some the is stay costs We you've there. year. other delays and month been the through getting by that's the a well-publicized this I levels record that levels on so down hit tailwind freight low water elevated have driven Canal, just freight cost, seen or Panama

about they're costs, XXXX backwardated, versus by it's so decline curves if per those LPG U.S. at expected costs. and And to you again steady temporary. pretty something now, look in futures of lower is a freight gallon Asia that's $X.XX for And mid-summer the

prices also as freight cost that the will declines. to U.S. that allow So well rise in as

provide moving seen risks as a decline. response with seeing, side, the of that and geopolitical On to particularly NGL there's oil we OPEC. side, count nothing parts we've supply think think do the I Obviously, specific we're can rig lot on that. the the I

of saw seen though X-year back very increases some even we through would with wane, U.S. You into similar exports, steep as inventories the in on move year propane strong. And you've spring, half propane exports the were increases those the in levels back back come range. the

with to as about and domestically here points out the that, think have the that on counts responding XXXX. to plays we talked well, on supply I where are me, side see the to So what in things we'll oil rig side if

Umang Choudhary

helpful. also reduction deflation which a I perspective. spending momentum, follow question capital initial thoughts production and Very can the And on you which next too, guess add I bit to love has strong upside XXXX expecting if had what here XX% little number outlook. up you're probably I can a on just talking capital spending been really is on Would operational recently. and from about you were there which which the your some to wanted touch

Michael Kennedy

keep on which we today's of whether dial what last deflation. comments addressing Yes. operational to kind the efficiencies want type of efficiencies, time and we efficiencies well want annual X.XX to communicated this from capital allow flat average performance in earlier, the We're earlier And the any of not and production baking or X.X. capital just year. of those program were will in depending we've kind My performance us that assuming to experienced we

of in we're this the what doing process quarter. that's So

year-end the with So through budget release. out we with out come generally, the with typical -- with our go and come the process those release February we'll then

just but the just we'll in That that not capital upside. be aspects deflationary work to assuming that budget. continue So watch any and would through market, we're

Operator

from next JPMorgan. Arun is The of Jayaram question

Arun Jayaram

those be lower drill and doing clarify you're the just to relatively I said get you thoughts X.XX to your would keep so XX%. flat. year to if outlook, can comments. be you wonder wanted I Mike, And more production than current on, you if Yes, X.X, to that CapEx next XX% it what today, would then down

Michael Kennedy

Yes.

Okay.

Arun Jayaram

kind opportunistic Got that spend if it. spend in on I just it's just a because placeholder But on you're thoughts it. land that? estimate Got of know front. any land -- for XXXX, And to then broad recommending you're hard

Michael Kennedy

typically the traditional was XXXX target flow year. pretty It a in we had. always last year Yes. position That's amount to big that customary commodity we unlike in $XXX a price when the always a traditional target $XX with land increase effort kind to But of and million our of cash had million comments, free we we environments.

this be assume to $XX third So fourth will too. down that's why quarter you in ratcheted from million, down would there, the quarter

generally, run million that around at $XX is -- to budget million But $XXX million. it's capital like we're rate for land. $XXX So

Arun Jayaram

should you the Great. obviously, the do but just how broad think kind you think Mike, And some CPI production of costs into a thinking costs transitory, but next production we about year, AM strokes costs, is us give of got my maybe escalator, move just around savings XXXX? follow-up, fuel are we inflators, about as

Michael Kennedy

I about Yes, have we price, -- ad pretty because of just commodity $X.XX. taxes uptick prices dependent. commodity flat, valorem an have really much although production mean we up next on year, it's $X.XX price that's gas we do

So kind nickel cost. of a to then similar fuel as that's on how on GP&T that. up the just the And well, get you

which up $X.XX about of a next commodity dime. these So we're increased type is year, have kind price strip, assuming the we of

Arun Jayaram

A dime? What about the AM escalator?

Michael Kennedy

into baked dime. That's that

Arun Jayaram

dime. into baked That's

Okay.

Operator

is The Fargo. Roger from Read Wells question next of

Roger Read

like of dig couple to just bit. guess I into a a things little I'd

expectation you've how much the As your you capital go without granular what the with in shown about on outlook, think is can further efficiencies that? improvement on getting you too

Michael Kennedy

in per is, more improved assuming drilling. This said year, question. year wouldn't and time stages been the stages or improvement at stages have days about that's we'd that we've would a X.X and about those drilling, achieve and to are improved X completions we able in year I Well, then and XX completions that day per have average per last coming What a that the to day than X on improvements. XX,XXX about into we day good X from this

into to we're the those levels completion. going I the for you some record improve It out year, the but probably mentioned completion that, be stages improvement. Paul per day, but of maybe of per levels. XX same looking just continuous completion did, if still assume upon get always So those on mentioned the are would hours day next great probably you can industry-leading we'll

I achieve So always to it. trying we're but improvement wouldn't there, from assume any

Roger Read

nice you and It's next the the of we look changes of the fair. or glad realizations X your been months certainly so, right that's about but whether the at Or is, on we've let's got only as a meaning side question driver just the we or at expect say, side? look think just where anything would I've The to the to overall, all within way No, that across industry I'm portfolio, you things? been is gas the pack. top there should at other see really it's think we look kind should that's NGL basically into,

Michael Kennedy

Point, we pipe. of QX No, Cove were the maintenance wide on because Tennessee in

third fourth TCO, to a have about third that and It's during maintenance was winter. always QX. Those months quite in the and in in bit going in the the That the subsided. has improved sold quarter. we quarters wide weak XX% So capital events shoulder

the sell Henry on around like then there's Gulf Coast the right demand Tier when and levels the lot you gas. more corridor the we'll Hub, where that winter, Coast. are prices for into the LNG mentioned those Justin premium actually And lot to goes the a So into slide look at interesting his Gulf of slide in going a at X

X going the a to to ahead which time our to of during have enjoy also the ex gas $X.XX on Chicago up Utica prices bringing right bit the quite may in Hub wells just filling we're capacity. Henry Chicago now, and We winter, be in

improving and heading quarter realizations XXXX. quite So I the in bit see fourth into a

Operator

The next of Cowen. David question is Deckelbaum from

David Deckelbaum

out The exciting maintenance I million, Can Is a variables $X talk you so. that maybe you guess, Mike, a gas is I about an the would some $XXX next X.X% And think, price? threw stay incentivize to guess, at numbers, the it, $XXX at for breakeven decision? or to level think level. it true I stay there million just versus influencing higher that that as you about are I that year.

of guess, by right would the influenced you consider year. X to be cash in between free like primary you and the some what that now perhaps being of the wanting the balance those you have Are accelerate I revolver factors variables? beginning that max

Michael Kennedy

required flat. been to to million Bcfe day $XXX hold Total a that $XXX what X.X it been $XXX X.XX the have so to or was X.X million million have would Yes, would higher.

the of every As day a million I capital production. mentioned, is of $XXX day $XXX of rule a million is thumb

So hold it. think kind We're to of price well free all our the down obviously It's flow debt X.X, influenced that generating below and but XX%. higher going to heavily than we dependent, that X.XX, David. about cash paying how be It's and to somewhat commodity by returning capital shareholders.

So that's use. ultimately the #X we filter

be extremely to capital We also efficient. want

for up kind have do of year. a rigs X.X next we signed So

of then floating have a -- have kind main And we we completion crew and crew. one floating case. completion a kind the that's So of then

So capital. that's how kind of manage we

in couple do budgeting months. we process something through whichever the program watch over choose have prices variation to we consider this we commodity the of next we'll to have between. So flexibility And a go that's as and or

David Deckelbaum

multiyear It efficient a about doesn't sound you inherently progression, like and X-rig are program? with more as like you operationally X-crew sort that think of

Michael Kennedy

Yes. think about to efficient We're drilling JV. we that, have And that. when the much more you

of that. is XX% this have and really only a crew. X-rig X.X really And completion program we year So a

step down only the year, following drilling again, and a having crew, of can JV Next year that at rig we end. completion XX%, X.X X.X a kind the looking and when you're

on infrastructure having success. we've and all become become having just the the having We've continue working and So transport, more just remarkably all more processing and drill and efficient then efficient in the just contiguous our place, wells. having position, operational acreage much efficiencies terrific with all this to our

David Deckelbaum

us? all progression cracker some and thinking updating Would we next helpful year? that the of guys very It's ethane Shell assumptions volumes the just just be you mind your and for should about

David Cannelongo

be new on downstream some of up wrapped expected doing the of they've X end Yes, guided to X publicly on. units what They're year. work the the to nothing by that's

XXXX, So stable that more to expect and higher going us to from facility. volumes see significantly we

that So would production. show see net to you expect in our up

for a will on well. be on other us XXXX calling We are handful ethane ramping have more customers also as of that up contracts in that

So of a effect ethane as in combination in think well production the cracker 'XX the others shell net I side. see the on you'll as

Michael Kennedy

to ethane Yes. we've guidance, heavily. you've further down And And to that that, volumes quite with actually risk cracker. and well production our -- always the had ahead with the still of We're ethane that comes that's it then start-up recently. seen this cracker, we even ethane we delays when with guided why year the

that we're just kind up. talking further will levels of production the be start about risked So for

issues. little typical start-up a better upside cracker And be to actually perform Your ethane in will just the does volumes. bit year the that then if

Operator

question next Bernstein. Jean of is The Salisbury from

Jean Ann Salisbury

export flexibility does As little you capacity along capacity? Gulf LPG tightness think Antero I Coast, mentioned, East which much more to have seeing has we're How export more from the spare the Coast. a bit

David Cannelongo

fall. we're job XX% of summer where There's possible, propane to spring times of the in in a is do the you through docks. to into and as year time pretty export the we international the as which the good the sending with months, XX%, year where that, our want Well, particular, of much shoulder

the get we maximize try much much variations in really you some So season. as and during month-to-month, to as but for non-heating can for hard flexibility But want leave that and that. domestic production we above to

Jean Ann Salisbury

Okay. Point sense. is storage? And also of Or local perfect lower of you as because the of kind earlier on maintenance you in that due maintenance storm on That lot view that flows it this of quite just it in that but full more a was realizations everything kind Was bit poor question, gas an than were now usual like kind this little more high the do at any it a season? everything then basis Cove to when is maintenance makes Tennessee. where your kind is touched of event, out? there's volatile And

Michael Kennedy

seen led just from to historic. was Point way really the and storm the Cove from it. TCO. good a basis a That backup the was It was it in the to the the perfect widest we've put volumes basis. and volumes wide It and Yes, at TCO TCO and Tennessee backup was

is being and Tennessee subsided, Point QX flowing So Cove into going so. on all with that though back

Operator

Roberts of next The is from Pickering, Holt. Jacob Tudor, question

Jacob Roberts

near We the gave medium macro term. the you detail appreciate the guys in commentary and to

a XXXX would frame, allocate curious, in more to plus maybe time dryer to curve see the you need what areas? forward Just and to potentially capital

Michael Kennedy

I mean but liquids, to relative liquids around It's question. have always obviously some Yes. constraints processing. does good

that inventory. which frame a envision could you have we acreage with is to believe much scenario through need you deliver we dry of call during occur the the referenced very you on and would a gas that have there our gas, build-out So gas the more LNG time gas, could more ability if

by now, a flat dry half program But these enjoying the production is flow goes then levels shares. But if commodity capital We see cash right quite free of possibility and You back scenario down field. of in could over holding the X,XXX gas debt higher there. held buying have maintenance we eastern it inventory over and and just premium the there locations our in high. and essentially paying prices

now, have we capital. you right just that out, maintenance But optionality. have when model So it we'll

Operator

is Bank of question America. Brody Next from Gregg of

Gregg Brody

or the business. through you optimizing how do XQ that. What's you would volume whether flat -- what you Antero on how you think Just think thought keep about XQ, that be, the the you originally decision, and Midstream

Michael Kennedy

production and about really a profile. growth well and Antero them Midstream that don't all think capital think We we it's free the to cash free maximize efficient. commodity environment flow from the Antero price because capital cash very we're we an But in. how they're and getting as contiguous well perspective, beneficiary Yes, Antero about Resources and is we AR so flow and think just acreage, much Midstream. efficiencies, very per its of do translates more

So strip that's would if then the that try higher that to prices, a likely production -- you lead to and suggests, maintain would have higher commodity what level. most

probably had lower pricing favor you If capital budget. XXXX lower a you like would type prices, gas, on commodity more natural

use kind pay the debt that's AR capital. down what maximize of definitely at and free return to So We want it look cash and at. flow we to

Gregg Brody

obviously, you huge And access. big that moving Obviously, inventory of just you this been have as a has can theme late. a consolidation,

Antero fit to necessarily Midstream you anything. buy discussion does isn't that how thinking are as But into there a then So today? need how And at about all? if that well,

Michael Kennedy

free leasing we the any time, And from just And from perspective. the from of AR an That's we're midstream acquired focused organic we Antero dedicated. strategy. with dedication. the best all an hard. really capital clear Well, spend the when on can acreage and gets it Yes. XX% we M&A Midstream comes And worked acreage,

Midstream. dedicated immediately it's to So Antero

really So inventory why those assets. and acreage AM, life over XX-year they of their a midstream behind that's have benefit adds

as well. accrues So the to acreage AM

Gregg Brody

maybe discussions bigger. quo? you bigger status peers think But a seeing of harder there's -- just you're get M&A little lot a I'm that's peers curious just making about if or then picture, of getting

Michael Kennedy

No, efficiencies. doing grown mean on we've I the M&A. X% we're year-over-year focused without operational

transport got LNG we balance the midstream, locations, constraints. So the efficient. acreage no operationally the to are very got the We've all processing, the corridor, We've firm the sheet.

together, if need hard really operational efficiencies, for capital look that at our programs. play to for So you compared future compete for any it's all us no when there's that really put M&A. would you then think And our of

we're So the that's why focused organic on leasing.

Gregg Brody

makes it's past. have But term, you've with which you this just said billion. And $X I the past. debt implied near and consistent something one I consistent the call, sense you what think one, about it's think in target with on All believe last I the

actual $X get goal is paying Resources down to the X? an to there Or number? You Antero Is made debt. billion a the at about debt comment right

Michael Kennedy

target. the X is

Gregg Brody

a you down of that to paying -- just take were when guess [indiscernible]. that debt function would by, If do when a you is happen

Michael Kennedy

you the that, mentioned, [indiscernible] billion prices. always is like say it's been would goal. I $X

flow free you little but that where will our on then you to it just depend it first. maybe the get billion in at that So bit well, the -- callable below, probably X-X/X. commodity XXXXs prices $X go say, the Then on and would cash look notes our are and to January, 'XX a the more capital the that of mean and once will XX-XX, and facility the get first are return you bonds out priced. I credit are of

$XXX So that's million. that's of piece paper, a good

you rates that or at return that shares buy capital. to and kind pieces But in may keep take are to of debt back out. structure we'd capital want interest So pretty the the high like other

Operator

Next question of Chandra is from Subhasish Benchmark.

Subhasish Chandra

to over just sales is improvement that the big On of element on the there waiting of sort well spot completion. years, I think a

took So that going I you if say, variable going is, is you reduce my sort path program maximize And that to I should minimize think describe the or forward. you the guess of question time. to can that

Michael Kennedy

don't have We just We time. that in Yes. to really of completion. all any plan programs on it's try waiting our

the when well, possible. you're as completing pad that done drilling as on So it soon you're

may schedule. So try week call or where efficient be that's There we -- that's be But because any here and minimize it. there's it capital. we have a possible that how in white as to we some generally, do not DUCs and there space as the nonperforming

Subhasish Chandra

Yes.

So guess, What when et was XXX cetera. plus, I back several was then? days years it different

Michael Kennedy

a up have Slide increase have the pumping that hours in our improved. almost and -- greatly are the like day then can stages to That's an We times XX% on drilling X, per see completion XX%.

to year-to-date and combination it's of definitely over sustainable. from reduction XXX, it's is XXX go XXX XX% a But that both. So

Subhasish Chandra

it. Got

I priority the a is as guess, a on target, to that of. Okay. X question. reduction guess, And just clarification, I the I debt assume, the reduce sort X, ultimate is bank I debt top would guess, And first? is there,

Michael Kennedy

Yes.

Subhasish Chandra

do Is how share sort balance sort there's meaningful of Or buybacks? of the a two? that priority you before

Michael Kennedy

goal and coming essentially year. we the bank Yes. X always, The X had into is or debt near

But of on So also than the notes. down 'XX $XXX that to flow paying that the less callable XX% million facility, cash would it the in credit the then free have over use that, be would shareholders. be we first is There's after January. return to

So that credit facility. I the together lump kind would of with

Operator

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

Brendan Krueger

Yes. any Thank reach questions. call. you Thank Please further for joining out with you. today's us on

Operator

conference. today's concludes This

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

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