Antero Resources (AR) 13 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Brendan Krueger	executive
Paul Rady	executive
David Cannelongo	executive
Justin B. Fowler	executive
Michael Kennedy	executive
Arun Jayaram	analyst
John Freeman	analyst
Bertrand Donnes	analyst
Neil Mehta	analyst
Kevin MacCurdy	analyst
Leo Mariani	analyst
Kaleinoheaokealaula Akamine	analyst
David Deckelbaum	analyst
Roger Read	analyst
Paul Diamond	analyst
Nitin Kumar	analyst

Call transcript

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Operator

Greetings, and welcome to the Antero Resources Fourth Quarter 2024 Earnings Call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to your host, Brendan Krueger, Vice President of Finance. Thank you.

You may begin.

Brendan Krueger

morning. Good joining Fourth for Conference XXXX for Call. us you 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 at where reviewed presentation have would we during call of a earnings will to you www.anteroresources.com, separate also provided that our the direct today's website homepage be call.

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

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

I will turn call now the over to Paul.

Paul Rady

morning, good you, Brendan, everyone. and Thank

And year shows left for reduced illustrated The on slide over in guidance capital Bcf just that our on introduce that bar maintenance our chart nearly came our million below or million Let right the $XXX X.X day, initial I in in X% of this dark capital. out at the came point shown was production hand guidance the the the $XXX drilling center averaging X% #X. this, as us. equivalent remarkable This initial green year, side display. below million. of range, XXXX $XX spend, the me me XXXX a CapEx The $XXX by slide. Despite and of our completion lower as our above is last million full start as and name the of was let Slide on per

have drivers the our completion we some these Completion during operating here, to quarter to Efficiencies, exceptional results prior on compared continued Slide and Drilling XXXX. move #X to X improve We've year which subsequent details prior as And in in drilling each The the years. and XXXX. the show behind calls. Let's full highlighted stats of performance titled

on a years the time left is side that of the XXXX. shown a that drill this reduced days side, drilling slide, to improvement nearly a top in to This the compared well XX of the couple averaged On we to the ago XX days we is just takes XX% of it XXXX.

completion XXXX. of On slide, records, back stages compared quarterly XX.X stages in we XXXX. XX% increase side, on once stages right-hand the new the top setting The the Completion shown represents average per XX.X the completion completion XXXX in a annual in quarter per side of averaged the day fourth day again while to averaging

X improvements is This days. XXXX of chart to the bottom order below allows and on rates over just XXX in to X.X the flat. Moving of slide. in us XX% production to completion very hold days, lean the X rigs reduced level just performance crew of on the program average equivalent which cycle average These Bcf drilling to on just run with a our completion and day times XXX per

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

David Cannelongo

banner stronger and market Paul. record domestic our Belvieu realizing price LPG in year Thanks, was a driven export by XXXX to for area. high premiums differentials differentials Mont Antero,

per The CX+ barrel. with left-hand was quarter strongest XXXX company's the over premium on seen averaging per Belvieu, $X.XX history. #X, a Mont As our Antero premium fourth to barrel differentials side $X.XX Mont of in quarter Slide in best XXXX, of Belvieu realized our the Antero's

to Mont than $X.XX at our our range year. even of NGLs for premium guidance still to for levels Those are prices. For a export to higher high XXXXs our with coupled annual XXXX, Belvieu is premiums, allowing us $X.XX we expecting domestic resulting efforts CX+ XXXX record premiums. marketing in per barrel set

As forecasting into XXXX, are a we on be year-over-year basis. dock head to premiums export higher we

pulled placed more terminal expect year capacity However, in terminals comes Stronger several international online, at the barrels U.S. on prices sales stronger we the new dock believe Antero's be resulting export prices to later be market, pricing in will demand service Belvieu capacity benefit Mont at and Mont continues to grow domestic realized well. in as into more We the that as CX+ directly Belvieu.

a as sales domestic selling overall we users, Belvieu. marketing Slide enhance our have the right-hand front, On portion on of stronger by an our XXXX, almost #X, export our sales to end of marketing key premium products continued In and sizable our pricing. Mont distributors attractive more have propane the domestic at to we side all of of seen driving and strategy locked in to

contract million rolling $XX nearly believe our this pricing On will priced in X purity to range marketing alone attractive XXXX Belvieu guidance contribute on butane, $X.XX barrel cash barrel now per The in shift of historically have Belvieu to as our $X.XX products April Mont long-term on by that We a that one in flow. Mont contract Belvieu and pricing. our CX+ per approximately our drive in to premiums in all and volumes. strategy at beyond, result Mont in premium to Mont premium we steep and discount of illustrated a again we at to will pricing off locked was incremental flat Belvieu have

use. have is constructive year, demand far both fundamentals domestic and observed for So that how illustrate we propane exports this sticky

growing same per side, continues with XXXX, shown year. in exports to above This million On On keep averaging exports, is as international steadily Mont prices to being last barrels from as grow on U.S. Slide #X. X.X the export top markets, ultimately lifting months, increase the day year-to-date the the Belvieu period supply must X% winter prices sold we domestic the propane into during well. that have observed of

previous the This this top as and above inventory the below average of year demand, demand and robust a weekly that January. plays the U.S. entered average demand decreased of million strong January to XXX,XXX overall exports, the year domestic in new on X-year both over for demand reported average role side U.S. EIA of the the shown stocks eclipsed propane of XX% X.X below by X-year is a domestic both for an the overall market. record range the month, matter of X-year several and ended X-year still inventories the by important per to the demand shows left-hand up strong Slide per record in weeks, the as Last the from total propane day X. barrels with A weeks withdrawals end day barrels week sustained including XX. X%

on second million X.X per the barrels EIA data January withdrawal 'XX. record week the Additionally, we saw at for largest ended weekly

I'll natural Natural that, our Senior now market. Fowler Vice Justin discuss With the President turn of Marketing, to gas it to over Gas

Justin B. Fowler

nearly continued X-year below XXXX. change to believe Thanks, year. #X likely sit XXXX is we've move seen Bcf We at last in in Gas natural with rig average. XXX the a and tightening upward XXX our Dave. October, gas combined meaningfully low in Bcf we in above fall X-year X-year call, X-year the titled half support demand significant the Slide time step on of Bcf below I'll this a versus today's average. X-year balance will Natural conference time, the quarter were late below XXX relative inventories that Storage range lower Since At an to storage count, of the Today, the third that start our average. average we second

and We fundamentals these expect XXXX to lead prices higher supportive will in XXXX.

each slide, a was The charts of the XX At U.S. at slide, of At record month natural rescom January power burn demand from also have we the records top the bottom demand observed. demand the see of on Bcf. U.S. have gas #X burn power Slide you illustrate record will com winter. and natural the monthly the res from hit gas over

Venture update highly startup LNG call since positive Plaquemine our Another was quarterly last the anticipated Global of facility. the

and was average Bcf Plaquemins since this at of and the Slide an the pricing can on seen exporting approximately achieved performance. been day. market of basis X.X time the cargo blocks Today, approvals the XXXL per export on liquefaction and #X with titled We commissioning #X that on Tuesday. request chart start-up the for on following facility FERC the Plaquemine the first this in near The ramp-up week's and TGP is term be with than following increasing December Block XX, for faster #X FERC has impact expectations. the anticipate filed #X The

summer Looking before the to exposure XXXX at per the TGP lifted XXXL the by Plaquimen, pricing the basis strip to ramp startup. up current is anticipated the which the $X.XX basis, compared facility pricing MMBtu hub already has most than of the quicker with

XXXX. March to even ramps This basis can further X than calendar facility to the $X.XX the strip $X.XX see in of premium pricing you ago. as up per going XXXL compared MMbt a As premium in reflects TGP year year increase increases from more a XXXX XXXX $X.XX further, premium

premium MMbt the TGP Pass firm per of As XXXX. This Kinder behind delivery XX% gas primary relative our that or Phase a in Morgan reminder, nearly day represents price NYMEX driver is holds Antero Antara's project per Express $XXX,XXX to the pipeline realized XXXL X the into Plaquemine. Evangeline production feeds of to gas feeds supply and day of that natural GATR XX% capacity natural pool total the a in XXX,XXX increase

premium premium our of from $X.XX to in the in $X.XX, to range expect $X.XX be to We up NYMEX XXXX.

Plaquimen to on premium as as are the the as XXXX, to along Corpus III to and increase Christi significantly ramp-up we out increase expected and well of LNG natural Looking gas the the continued of quarter. this Phase further Golden Pass start-up expect call

will I turn With that, over to CFO. Kennedy, Mike Antero's it

Michael Kennedy

Justin. Thanks,

Free are natural both price a exposure ability flow The XXXX. to show generated compares Slide attributes that peer that to past significant capital flow despite free Justin X the outspends. his across $XX side Meanwhile, year approximate breakeven Lowest levels to $X.XX #XX unhedged cash left-hand for remarks; we've result breakeven capture of which second, cash from $X.XX free XXXX. higher unhedged turn on. benefits on gas we updated let's Now maintenance things: the of in million the slide, high our the liquids premium with requirements cash pricing slide at low The level of levels these Dave flow We've breakeven In and and our in being slide first, group. and titled calls, full positive highlighted Paul shown our breakeven. our gas touched XXXX highlighted this peers

in gains see efficiency have operating meaningful expect budget now targets capital lower increases past down day maintenance free cash in had with see cash we that positive guidance. while and us outlooks, than is and as generate environments low be from and XXXX we to that to our capture The We and natural you the This previously a our production our significant than calls. our experienced in flow to capital as financial impact prior have today's million strip. we program million achieved free on communicated positions as capital maintenance $XX cycles we flow price $XX a gas XXXX higher can higher XXXX

would natural XXXX, we gas us pads. $X quarter. in of comment X these Locking attractive tied we I that added in rates the BTU X we to also the on per from hedges hedges associated lean After with during deferring above volumes X,XXX that the capture pads Mcf would fourth gas assured to like added return wells. gas that those prices

the provides development midstream and the second XXXX. plan, pad resulting this first program in in pad DUC in expected addition, In is our efficient quarter and sales placed infrastructure. in We most DUC the operational the certainty third late of our the optimizes January continuity

additional During XXXX, volumes gas colors to for wide add lean some to expected pads. with XXXX our the intend sync we from

cash with free I'll compelling finish outlook. our flow on comments

change XX-XX senior free buybacks. debt $XXX suggest cash has remaining free cash We yield. expect capital share to expect this In represents a facility deliver in reduction on step XXXX, our intend billion guidance our would to first reduction cash flow notes XX% today's XX, under flow XXXX million. flow. credit Based we $X.X to we and free XXXX, current XXXX compelling to as of use substantial free in cash strip, the just year-over-year a strategy via which to achieved, return been down return which December flow over debt in pay our and Once totals XXXX of

Antero we well XXXX. as is enter positioned incredibly

today. natural hedges months XX Our NGL on ramp low greatest that to to this challenged The relative next as exposure debt realizations up. have over for is gas likely LNG activity in us facilities supply and increase low a the to provides transportation absolute We anticipate benchmarks significant prices. the industry minimal respond to to rising firm we price premium with new demand given delivers ability levels be call natural gas the and

now questions. to With call over for that, the operator I will turn the

Operator

[Operator Instructions].

Jayaram Arun from comes question with JPMorgan. first Our

Arun Jayaram

the situation. you I a bit to gas just little about Team, wanted ask macro

wondering commentary facilities, start-up utility a Justin's from gas to of on the around some demand clearly natural market you as in was talk Given of the as call the call to needing volumes going could be of will the I as if the gas demand? the it, market a call Appalachia Basin demand to ramp meet well to, Antero increase well call as volumes. ability about for the respond LNG higher in more

Michael Kennedy

Arun, question. this is Good Mike.

where at of filled. us, our under comfortable we're For all is firm this the plan least maintenance at capital transport is

really X. gas, we're since -- So selling that's local day not any and strategy and our been

it's to the unless to us, the next meet to our ability and possible for field. that So not even base local right it's grow in really

Arun Jayaram

to Great. partnership unnamed be a with Mike. looks In follow receiving overall at a some interest clear program And going just that it you your highlighted funding the then you drilling operator, up, see XX% of XX% from details just an like to are benefits perspective. the capital paying greater strategic you answer your than capital XX-K, development about inking there. -- they're an where portion AR on of this working provide Can year. XX% and but guys

Michael Kennedy

one some to crew consistent a the the the the and Yes, maintenance What one JV drilling and besides JV capital. have completion X-rig sort for program, spot of is the drilling benefit a we found place since crew had carry XXXX, a concluded we've XXXX. now ability in also operate again, in original with

So the water field efficiencies water optimal at And be a have still to to maintenance to handling it and that. that allows around perspective then capital. from have be handling within able

enjoyed we So that.

drilling to came was we what and out terms 'XX. in the what of when to see JV into appetite We better half if than to were. second The we there went found so that And were the XXXX. continue 'XX terms

So the it's disproportionate instead one. XX-K upfront of says carry carry a back-ended like just and a an

Arun Jayaram

of kind on of details magnitude more Any the the carry?

Michael Kennedy

XX% $XXX net Now that, it's little like than bit our for to paying to them, and million it a interest. is $XXX million million, they're what more of $XXX obviously, their

Operator

from comes with question Freeman Raymond next Your John James.

John Freeman

deferred. X I'm First with, about pretty XX I had it that the were clear about net you that sort of question XX at you you trying like I've having just with pads had, progress anticipate other reconcile in roughly all wells year-end. been DUCs And to looks

So some XX DUC... or just in and wells handful trying of to drilling the stages get still color DUCs just if various if it was of a

Michael Kennedy

Yes, that's then throughout And still mentioned, with will be you in the have on correct. wells month. Correct. pad, We that one QX. wells like January XX brought DUC we X

John Freeman

to some peers the standpoint FT inventory that terms you position, Obviously, something on be contracts. kind a they available great those some already or of kind of in operators it. as incremental are those And some earnings this to Got maybe up position? have other that but the been see all able already to enhance we've didn't renew strong then up some pick able terrific whatever comes obviously is a have picking you're relative of those season as are in when takeaway to topic, all operators the to We become in your it to that did peers. of from focused

Michael Kennedy

got FT a We've full portfolio. No.

to all and various best We the are first very mover. attractive a It goes the pipe. on rates at regions

just we're at our So transport we're where current firm filling happy and portfolio.

Operator

Research. Leggate Doug comes question from with next Your Wolfe

Unknown Analyst

in Carlos is for Doug. This

a focus like your on on maybe First with first guess quarter. liquids take our address the revisit specific to inventory moment to congrats is a runway. your I we'd of all, what

if time, leases. at a are midstream in runway liquid I point add have market parse the can given gas captive midstream we where your this you So wonder how contracts and given see midstream, acreage in macro have those a you you with to rich you that

there is? outlook what wonder I So your

Michael Kennedy

Yes.

what Now we've our got inventory. leasing a good That's organic program.

only dominant further also the with the drilling Marcellus area. that us. interest, behind so benefits, the areas finds increase to owning that because the in of can areas, it of all one in exact is we're acreage not acreage the near-term the window the working in the its liquids the acreage does but where One replace owning only midstream the our position really develop in in We're way those strategy

So we're drilled we've able to what year. replace every

think typical I and it. think like XX sales last XX we it put is years, on how was year, locations around XX we about around

So every replace of XX year, can the we around leasing. organic strategy locations we the kind is the drill

a kind and over position well add drilling dry And so the over our we drilling well of look of acreage, decade it's transition do position. then any don't at would when gas our more you you decade liquids assuming to that then a of

long years an plus XX long over inventory So runway. duration, from standpoint,

well positioned. we're So

Unknown Analyst

Thank you. I appreciate the answer.

real quick and the And in completed your wells than XX at XXXX, you year this XX,XXX outlook length at feet. for net, midpoint versus Now for suggests let's laterals an of address XXXX reconciling average 'XX, shorter completions because your that. with XX.X%

first, an you're can seeing may is counterintuitive for maybe decreasing we that address of you why what be this terms industry in in XXXX that you what that, laterals. is January well lateral there's are on in -- footage as longer if reasons. into CapEx some going and to that these have wells just So there expect all for pre-spent per that mentioned doesn't presumably build been 'XX some And XX hit drilled in it

quantify I if you can that So wonder capital number.

Michael Kennedy

of 'XX. vast is to capital put in sales. turned January in XX wells, majority all that those Those on were Yes, the

capital, amounts wells. of for bit 'XX. related completed to obviously, already vast they'd and in 'XX The little XX were So been drilled those in A January.

wells versus we with XX year. of that but there's per with the kind together wells. referenced XX obviously generally year. the And XX some this on 'XX, why to put you 'XX carryout of put then low that's I So XXs wells It's

that reserve our database. proved see can in You

We PUD have years. XXX locations over X

there, do So math around when it's XX you wells. the

So feet year. it to for 'XX our Lateral already well. mean we do I which XX,XXX typical have year. a the though, about feet lengths, is XX,XXX around been we're XX,XXX longest. XX was it's Generally, over longest may wells our

I reserve feet. the look at similar a we're in number. XX,XXX year, crude think it's When database, think I you this

but number be to basin. is the So at. XX kind number of in probably is and us for Every is great that to longest difference, laterals we're a where XX and going slight a around year in the

Operator

Your next question Securities. Bert Truist from comes with Donnes

Bertrand Donnes

to brush of not want assumptions this Just but in facilities maybe that outlook upside a shift could slide, liquids, for a Plaques just there. for you've Maybe or that elaborate changed on XX. baking differential from cash necessarily moving in know it's you you Slide on if you're years. I any X some to other wondering new LNG just any parts and maybe expect if free flow

Michael Kennedy

the we look left-hand we what is the think when -- to on about really That side it. page of

about barrels think million it's XX year. CX+, our you a over when So

the bring think we flow. kind that what every cash $XX So when that equivalents, really it of in put of million. $XXX do versus gas every for you that the $X.XX, all of baseline free $XXX do incremental kind of $X.XX is together, -- then you the we about natural million on was you can math if But there. when And

flow. At $X.XX when our of So we of free was cash at $X.XX, kind XXXX at $XX had look breakeven. million you

today, came we was in for XXXX. when it million here $XXX think I

billion that that referenced per over. So $X.X I million, you get $X.XX $XXX to that

illustrative every but million it, kind of kind And good free $XXX flow. equivalent we those showing sensitivities, that about to way of pricing just $X.XX the rules are it's on the plus So of cash of chart thumb. think

Bertrand Donnes

saying XXXX expect was that I into you to holding I want clarify. get XXXX. I that you than you wondering better think just I helpful. or just was mean, That's to XXXX differentials were if baked are assumptions.

Michael Kennedy

plus a just the because $X.XX $X.XX higher do a was day, analysis. that be this it's $XXX see you on trying that $X.XX versus to that sensitivity million But year. illustrative Plaquemines in to we we I send trying No, 'XX, think for give

Bertrand Donnes

our moments to just a looking thought That -- DUCs, the address other through strategically at it, there might is are it Perfect. our management? for that had add you and done periods more probably a of onetime remain Are should I on, production -- off it to Or was higher maybe you know And opportunistic strategic makes maintenance? from normal guys just hedging for it sense. any then that unhedged. hey, than we was where does the will that, now be you'll than any read

Michael Kennedy

in future. We have the gas lean pads

great about 'XX what we'll is there. new collars. we you very So around wide that can protect the and The at price thing $X see level beyond talked

locking natural really just window opportunity the not you're getting So cash and of generation, price. huge in for a flow for gas prices really but

So lean get it and it. very generate then can at $X is very put pads gas, attractive got healthy you floor plus gas on returns that a when you $X wide collars

So pads for in future. that look lean that's something the gas we'd to

Operator

comes Your Asset Goldman from Mehta next Management. question Neil with Sachs

Neil Mehta

appreciate It's all research side. We with Neil the today. here Yes. color here the Mehta

of The return In environment, question thrown a cash, has has current close is the to off just the to sheet of optimal ton restored been about levels. first balance business capital.

makes you incremental returns capital you I'm to cadence how do about when your or start sense of structure? So curious, think talking the capital perspective the think optimal just of it about

Michael Kennedy

debt, But has able current debt, be that prices. kind also credit high structure, in well. our had for on bring gets and there. $XXX could said, you to year the there's $XXX calling optimal The natural call able $XXX the that million outstanding of have 'XXs, million $XX capital and Then exposure about as we some That we about of X get and to million-ish upside or down our business 'XX to have facility repayable of flexibility debt. coupon million notes, that run think, have gas about we this be either to

that's So we'd to something that look do.

around where share and free for cash we a of buybacks. issue have buying it the But which the trading piece ]. below flow. we million Then the -- 'XXs could is, I that's It's XX-XX use pay below XXXXs, then But today. That's that, first believe, in will is $XXX actually be $XXX [ million. at XX.X% then after par.

So are probably the once extinguished. all of more XXXX and kind to outstanding that then non we'll leave shift share of buybacks notes

Neil Mehta

Yes.

thoughts U.S. And what moving Just all that closer of just The Okay, very is theoretical [ the sheet. it's around ] firm from and fortress of balance that. into does starting it? the of piece that dynamic more your a how on which standpoint. gas dynamic that pricing? if towards is, framework pricing way get balance inventory linkage to Europe think that brushing play is U.S. to But globally. thinking potentially the a your very the the European question, just I questions And into flows in U.S. environment to appreciate situation. for between is up we market, pricing one gas a you and an and affect gas how does TTF about

Michael Kennedy

Justin Justin, a for maybe when kick economic reduction there. to that? we're TTF, it I'll above LNG get want this offshore, And well to comments. on wouldn't But But on take and for considering in we storage their levels to you over track which comment pretty to his drastic occur it's formula Yes, we that. go

Justin B. Fowler

CalXX, balance healthy, 'XX less Sure. TTF, shipping. less the look of To Mike's we through out versus Henry spreads This very Hub is as liquefaction are Justin. point, costs,

FSRUs set gas to volumes the in. bring So additional the Europeans currently to continue very supportive

of supportive So and being. just it see bullish we time overall, very

Neil Mehta

that? for does that potentially curve your question TTFs? as evolve how is I about how perspective just guess does And on think the do you just the backwardate

Justin B. Fowler

Yes.

So just I any Henry the support mean, to backwardation continues front. in

on cargoes see Bcf as at for we're the feed to per XX.X continue gas. the today publications strength that we'll example, So load LNG

on versus TTF again, the So years, outer spreads. healthy Henry very

If well. should TTF pull prices on to backwardation front, very continue supportive that the up in you see see as Henry we and

Michael Kennedy

Yes. $XX cushion. talking mean MM of an now, I Right we're

decline, a levels and TTS to So seen. have it'd that to be haven't they significant

a contracted -- So lot of it anyway. and is

be see exports. for the continue we So to supportive it

Operator

Energy MacCurdy Kevin from Partners. comes question next with Pickering Your

Kevin MacCurdy

average? costs cost. on well your or on well is the see comments And Paul's efficiency per I for days costs. your view further built question to service XXXX deflation wells? cost you costs And is on well How whether My appreciate do gains? current the guidance into what XXXX compare you XXXX well do have a and

Michael Kennedy

seeing, are Well in costs $XXX lower prior We're per came The low have XXXX we're we're we at $XXXs efficiencies 'XX. does now, and rates. we that range up in that XXXX. our in place for foot we're Yes. for achieved were in XXXX 'XX, drilling with we that on that and lower in contracts calls about also the that right the capture so we than efficiencies plan talked

way So are for we days think the XX,XXX a assuming per per XX we day around to feet and about that is stages XX it's XX well, X,XXX it.

costs, down like daily off new baking our basis. have drilling legacy our for we service we 'XX. are and bit are just ones I drilling contracts we So into a And place on -- mentioned, then we in those assumptions the as continue roll to had those because come achieve

Kevin MacCurdy

that detail. appreciate I

previously to If to guys and Second I small your pretty guidance have question a is remembered on ethane production material uplift Belvieu. had pricing. Belvieu Mont talked uplift about a XXXX correctly, and you

beat changed for And what we curious So the that if on ethane front? fourth that saw in quarter production repeatable? the is

David Cannelongo

Kevin, Yes. we XX% XX%, quarter, if basis, is utilized de-ethanizer. this our were it's a at probably it Dave. on look we fourth you -- gross Yes,

So quarter. a very, very strong

stronger there a we 'XX, Belvieu. pricing at back some in sales will to related to at volumes that As was some be looked really ramp-up

end that the that to and or -- would We again a of well. now doing exploration differentials. are sorry, average that overall improve online those have -- will tailwind do as also months expiring ethane expect our here is for will -- as in well. be premium XXXX sales our And for about a So then contract also the X quarter we

that be guide to to able that and visibility deliver. feel good going there we're on So pretty confident

Operator

Mariani our question from Leo comes with And next ROTH MKM.

Leo Mariani

if see XXXX. in of CapEx here little and on to bit Wanted you could trends perhaps just production provide color the a

first a like bit production the any XQ the get should in a we of trends sense kind weighted trend. rest to of and see production spending of you weather quarter. down your Just deal color some be continue helpful. any little bit production Do winter just this those a and Obviously, year. half and to would things in then trying first to then year? And got maybe the pick with maybe to if CapEx tick you budget on expect kind up Just a on versus of XQ that of

Michael Kennedy

variance. much not Yes,

-- bring lot did a guide quarter, probably around ramping really in just on of First We the of wells, but up just the and midpoint now. they're the guidance.

really that the you're to get benefit So quarter. to second not going

in So the When higher do the talking and over second maybe it capital started that a really, versus the quarter. We're the pretty low capital second we out second quarter first and first. in quarter. X%, late the variance similar DUC very pad quarter, in will even maybe in quarter, tad raise

quarter the So maybe up first for the versus second completion crew bit. X in a

into completion evened a one So it's spot the of one did X-rig And whole bring spot is January, consistent, that's pads and we then pad. It's a maybe with the But kind bit like production higher at program ramping on program, February. in I crew just XX said, wells pretty the second quarter. of the quarter. in end That's the out. second very

Leo Mariani

here. to over the this. to with That's I I'm wanted a you guess clarify Okay. the struggling shift back Maybe little the year. bit little JV helpful. numbers guys for I just can bit And a

been maintenance I a for guys around right you while is of CapEx kind saying that have $XXX million. think

than in in coming it of that's here partner like the XXXX. a a for bit little XX% got looks You've more capital

maintenance just guidance $XXX is. did would simple and closer off than So current maybe of for what capital the I if that the the the D&C I XX% put math million that budget locked on guess to

on So the can you help me there? math all with

Michael Kennedy

correct. Yes, think I math don't your is

I you think the that's would crew way that $XXX but is a we plus grow. and think million, probably about have -- running X-rig a we're it one around spot. And program that's amount completion generally

and also wanted we to have net the And and so when wanted allows production but consistent. the really efficiently, of be mentioned we continuity those the capital capital and water program in the to looked I at flat to be possible. we maintenance lowest it's continue at our field to have us program, the because handle our

So a and and how we when partner. And should our able it looked play the results you're are go a when how terms. so that suggests put it X and manufacturing it consistent get at opportunistic get together, out those and is JV to you program really terrific they

Operator

Kalei comes next Your with Bank Akamine of from question America.

Kaleinoheaokealaula Akamine

did is first if you the million increase stay called actually feet My follow-up $XX guys out? cubic you it space question to And in? year-over-year. secure out takeaway intended move a that's this in the to Or production guidance. additional on Wondering

Michael Kennedy

basin. No, that's the within

have at do -- and we're TCO We approximately the some flexibility there. We to sell have some XXX%. locally

and the anything not outside within. selling So with still that's base

Kaleinoheaokealaula Akamine

on is one This Understood. free cash.

net are So the going end of we it to year buyback? or implementing your it, dividend when look around around debt capital, you're be X. at kind What some return thoughts of

Michael Kennedy

XX-XX and on buybacks. it then Yes. get million 'XXs we will Once are some taking 'XXs be the start in in, shares, once back be buying and versus the buybacks it the will share $XXX we'll back, paid

Operator

with David Your TD comes Cowen. next question from Deckelbaum

David Deckelbaum

maybe the addition little degradation you times in natural that. higher XXXX into there's lot that accelerated curious, guide earlier points, what where level this lateral color of there's productivity could locking program. into had a you've of can around and cycle that you year? of to lateral different like some variables what of length? of color length achieved -- you some the lateral the average obviously Mike, in you perhaps give and feed to length base your bit a made helping of offset was is production variables baking going I highlighted Are be you I But think, but a you the kind in that's give in sort on in you're --

Michael Kennedy

that's right. correct. Yes, exactly That's

those feet day X,XXX so achieved We I amounts or slightly 'XX, baking out those times, that comfortable have offset said, on X,XXX although feet in, day lateral like those less And basis into felt that. 'XX. it's many we length, in a efficiencies a efficiencies them

David Deckelbaum

on Henry from for gas. TGP XXX. premium the to a I your Obviously, guidance then Hub you're takeaway just that. appreciate And follow-up natural around to benefiting

offtakes LNG thought do changing available shippers? find coming have Plaquemines maximizing maybe Is direct with an internal of an online, impact some opportunity was signing best agreements sort you see As and or open and the course commercial to still in? around of your that that there some facilities managing of the that sort markets sort interested you you risk you that all? Or of basis something are Is margins? for other your

Michael Kennedy

They're to we the of sales. those. than enter vast for higher gas just is based I just all Gulf facilities think Coast the have for now transport, have But of with X the don't to market that the us, to is get market. our we guidance the retain in evaluate compete the in We're will We differential that getting, actual best found going optionality capacity. course, XXXX the firm the on. we coming to opportunities No, what premiums transport be the on think, in and majority offered we

us the So we're gas where and going to retain for that optionality see prices go.

Operator

And with Fargo. Roger comes your question Read from next Wells

Roger Read

I ask to have tariffs materials. CapEx imported side, raw on do the now service like efficiency just on and understand I'd the we that materials cost

Just contingency anything wondering into or steel risk just thinking if any costs for higher that? there's the built like CapEx

Michael Kennedy

at our a the within tariffs when and you $XXX all program, million, pre-bought, the of casings, with to our it's million midstream. pre-bud pipe $XXX same lot Yes, the look

not already that You already subject of tariffs. in-house to items have lot be a the the other amount and that for would that's

capital. about would it million increase, increase total be XX% a to had our million in you If $X $XX

or we it's guidance. within for our have So million band that $XX well threshold capital

Roger Read

pre-bought a but then And this at to... be for not that little I there'd more things having you 'XX don't know pressure point, at assuming 'XX, guidance point, give

Michael Kennedy

a could that not impactful million not yes, maybe be us. it's is it $XX to No, just $XX million, that --

Roger Read

then was idea appreciate just sort gas look of on terms was other adding question side? in you them I Okay. of curious, I demand, PJM And as this earlier, specifically at of inside -- that. the the the opportunities capacity in-basin of asked but

Michael Kennedy

with all the but Justin, in low-cost We're course, over but of of with so to those they're provider kick kind again longest ongoing. the I'll discussions, our being position in inventory. transport and

Justin B. Fowler

local we've FT Appalachia between our that Roger, the and this Antero previous to toggle using on said the owns calls, gold. Yes.

and Gulf, more of do we then to take versus needs, So develop. local success in widened spreads power are as advantage local if pricing have that that the any basin or option markets

Operator

from John Our next comes [ ] Betty question with Barclays.

Unknown Analyst

I exports And that, half the in want to is ask up. expected. Gulf as going better It's the about the came in to XXXX were second sometime definitely outlook. under that premium the ramp premium Coast the propane moderate than assumption

So premium longer-term even increased on would the your you to just focus get you marketing love see basis? NGL premium, that in-house how improving ultimately thoughts normalized a think do propane CX+ the about on given on efforts,

David Cannelongo

as into of Yes, guide, this couple arb. about baked the that that A XXXX Dave talked export things is Betty. were you

opposite around less. it started as gallon 'XX, you kind back And somewhere on we at per look if So the at you could it of annual $X.XX kind or what maybe where and it's of average, was fourth then a see into it got look you ramped and this it of the low year if quarter. little third an

'XX. can As for think look those we XXXX, at levels in that the certainly market today achieve you we

talked already. our we sizable a about, locked of we export volumes portion in As

visibility we've So good into that. got

in XX. of X through you marketing The our really is domestic other first 'XX in quarter, March if the plan piece, we have the at We place back season put April not look that did 'XX. contracting

we really first didn't those 'XX. the here So have have in 'XX of benefits, quarter those and

tailwind. that's then third the I So my of tailwind. that that in about comments contract kind is talked another butane And

and we'll evolves. So 'XX. certainly, very complain export years look But see think 'XX, and ARbs continues still about had will even we'll we said, and role Belvieu that to we in that, be in never but prices either. Mont would Demand low high the better what would that a prior market to 'XX strong, maybe than play how

dock at the what of the at economics. the our the end So drives absolute selling price day, we're really is

Unknown Analyst

Sure. of a liquids guys That I more for sense. sounds pads makes My think record future mix. a are is follow-up be you like lean few in a It's the to company. closer well. XX% your the on might as there's lot of XQ gas

mix time? liquids think your you long-term guys do mix over evolve about how So

Michael Kennedy

similar It's to that.

fourth number think some the saw the on quarter was XX% the Dave a for at is and I liquids XX% running of that, what but mentioned in us. that you the ethane good

Operator

Diamond Your question from comes with Paul Citi. next

Paul Diamond

opportunistic I incremental clarity more a bit talked pieces and touch 'XX beyond. that. around I few to hedge a in want -- wanted just and of know get to the I added you somewhat book. being just guys you on about

around piece If to kind given level lean expectations ideal you you a of guys for target be the production. the want gas have

Michael Kennedy

gas want gas target with And No, X,XXX Btu around a just level. We no leave don't decided wells, lean to our we've those plan. you the looked at $X environment. those really to

it can reasonable upside, So a that about $X a in when you wide then floor put a color and get lock like and seems position.

Paul Diamond

the volatility curve look numbers of down trend? view? And any TGP XXXL, and much Or locked-in solid. the the at coming risks the how how it. around pretty I mean, that just more XX quick do is I follow-up, the in -- around pretty one around look guys see kind the Got XX you just price obviously, pipe? your

Michael Kennedy

Gulf of there's be I to No. the Coast. in a going mean demand lot

than think we to market. what upside it's the we now the So right more in probably see

come seen you've higher. past of and higher couple that market -- over as move these So higher the spreads facilities and moves the on to years and continue those

decade So premium there We've it. it then. good and of almost the for with pipe And we about these it's feel good a of was these, a had now, facilities piece beyond. a now probably pipe actually before

Operator

Kumar from Securities. question Your Nitin Mizuho with next comes

Nitin Kumar

costs. to want start cost particularly just service environment, on I on the

service from costs mentioned seeing has on indicated, I steel Trump Any that impact you're the the you early think side? tariffs President that flat. earlier particularly

Michael Kennedy

about impact. XX%, million to it No on implemented XXXX. is the $X at it's Like I earlier said million for $XX if

Nitin Kumar

year. in wanted XXXX coming and for next flat the to capital -- end plan lower but just a on follow-up look your at liquids at just even you I is though also some DUCs the then earlier are both production And did it. year, aggregate on Got gas from as have level, a bit you what little up I in

the you of is [indiscernible] about as Or is that do lens? at but especially earlier, an talking as of for trajectory, 'XX. you kind -- look question, about this timing? were it lateral we issue Sorry think How

Michael Kennedy

Yes. No, growth is up.

release. Midstream's look at You can Antero

gross gas stream, day really that that barrel Dave plus X% a the NYMEX getting around Henry volumes that's will quarter contract of $X.XX. money that expires in this think was have that or I now the XX,XXX mentioning, the end up. we X% It's of the be out at well ethane was Hub

equates ethane. that $XX contract about And equivalents, than production So in economically to do million would XX,XXX on the it's lower that of with have day, a shrink, But it gas you it with the about when the better. been XX,XXX day much a of $XX barrels million place.

Operator

further this And at there to Kroger remarks. are closing no for I'll now Brendan questions time. it hand back

Brendan Krueger

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

Operator

concludes today's a Have call. disconnect. may All parties good This day.

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