Antero Resources Corporation (AR) 2015 Q1 法說會逐字稿

Good day, and welcome to the Antero Resources Q1 2015 Conference Call and Webcast. All participants will be in listen-only mode. (Operator Instructions) After today's presentation there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

各位好，歡迎參加 Antero Resources 2015 年第一季電話會議與網路直播。所有與會者將以僅收聽模式參與。（接線員指示）在今日簡報結束後，將提供提問機會。（接線員指示）請注意，本活動將被錄音。

I would now like to turn the conference over to Mr. Michael Kennedy, Vice President of Finance and Head of Investor Relations. Please go ahead, sir.

現在我想將會議交給財務副總裁兼投資人關係主管 Michael Kennedy 先生。先生，請開始。

Thank you for joining us for Antero's first quarter 2015 investor conference call. We'll spend a few minutes going through the financial and operational highlights and then we'll open it up for Q&A.

感謝各位參加 Antero 2015 年第一季投資人電話會議。我們將花幾分鐘回顧財務與營運重點，接著開放問答。

I would also like to direct you to the home page of our website at www.anteroresources.com where we have provided a separate earnings call presentation that will be reviewed during today's call.

我也想請各位前往我們網站首頁 www.anteroresources.com，我們已提供一份獨立的財報電話會議簡報，將在今日會議中一併檢視。

Before we start our comments, I would first like to remind you that during this call Antero management will make forward-looking statements. Such statements are based on our current judgments regarding factors that will impact the future performance of Antero and are subject to a number of risks and uncertainties, many of which are beyond Antero's control. Actual outcomes and results could materially differ from what is expressed, implied, or forecast in such statements.

在開始發言前，我先提醒各位，本次會議中 Antero 管理團隊將作出前瞻性陳述。此類陳述係基於我們目前對將影響 Antero 未來表現之因素的判斷，並受多項風險與不確定性影響，其中許多超出 Antero 的控制範圍。實際結果與表現可能與此類陳述所表達、暗示或預測者存在重大差異。

Joining me on the call today are Paul Rady, Chairman and CEO; and Glen Warren, President and CFO.

今天與我一同參與電話會議的有董事長兼執行長 Paul Rady，以及總裁兼財務長 Glen Warren。

I will now turn the call over to Glen.

現在我把電話交給 Glen。

Thank you, Mike, and thank you to everyone for listening to the call today. In my comments, I'm going to highlight some of the key achievements from our first quarter 2015 results. Discuss the capital markets transactions we executed during the quarter and provide an update on production expectations for the remainder of 2015. Paul will then discuss service costs reductions we're currently achieving or review operational highlights from the quarter and provide an update on operational expectations for the remainder of this year.

謝謝你，Mike，也感謝各位今天收聽。在我的發言中，我將重點說明我們 2015 年第一季成果的一些關鍵成就，討論本季執行的資本市場交易，並更新 2015 年剩餘期間的產量展望。接著 Paul 將說明我們目前正在達成的服務成本降低，或回顧本季營運重點，並提供今年剩餘期間的營運展望更新。

First I would like to touch on some of the key highlights from the quarter as we had tremendous quarter both from an operational and financial standpoint. We achieved record production averaging 1.485 bcfe per day net during the quarter including over 40,000 barrels of liquids a day. This was an increase of 17% and 32% respectively from the fourth quarter of 2014.

首先我想談談本季的一些關鍵亮點，因為無論在營運或財務面，我們都交出非常亮眼的一季。我們達成創紀錄的產量，本季淨產量日均 1.485 bcfe，其中液體產量超過每日 40,000 桶。相較於 2014 年第四季，分別增加 17% 與 32%。

In the Utica we averaged 274 million cubic feet equivalent per day which was 43% higher than the Utica production in the fourth quarter of 2014. While the growth was tremendous, it's important to point out that we achieved the record production levels at attractive all in margins driven by our significant hedge book liquids rich development program and diversified firm transport portfolio.

在 Utica，我們日均 274 百萬立方英尺當量，較 2014 年第四季 Utica 產量高出 43%。雖然成長幅度驚人，但重要的是要指出，我們是在具吸引力的全方位利潤率下達成這些創紀錄的產量水準，主要受惠於我們龐大的避險部位、富含液體的開發計畫，以及多元化的固定運輸（FT）組合。

Despite low natural gas oil and NGL prices in the first quarter we realized all end pricing on our production of $4.42 per mcfe which was $1.44 higher than the average NYMEX natural gas price during the quarter and 13% higher than the next close of Appalachian peer.

儘管第一季天然氣、原油與 NGL 價格偏低，我們的產量實現全端定價為每 mcfe 4.42 美元，較本季 NYMEX 天然氣平均價格高出 1.44 美元，且較下一家最接近的阿帕拉契同業高出 13%。

Driven by our diversified FT portfolio we sold approximately 64% of our natural gas production at favorable price into seas and realize a natural gas price before hedging of $2.81 per mcf or $0.17 less than the average NYMEX natural gas price for the quarter which was $2.98.

受惠於我們多元化的 FT 組合，我們約有 64% 的天然氣產量以有利價格銷往「seas」，避險前實現天然氣價格為每 mcf 2.81 美元，僅較本季 NYMEX 天然氣平均價格 2.98 美元低 0.17 美元。

This is better than our 2015 full-year guidance of $0.20 to $0.30 per Mcf differential to NYMEX before hedging. We sold our NGLs at a realized price of $24.31 per barrel or approximately 50% of WTI oil price for the period.

這優於我們 2015 全年指引中所預期的、避險前相對 NYMEX 每 mcf 0.20 至 0.30 美元的價差。我們的 NGL 實現價格為每桶 24.31 美元，約為期間 WTI 原油價格的 50%。

This is in line with our 2015 guided NGL realization of 48% to 52% for WTI. Importantly, when including the value uptick associated with our liquids production we received $3.04 per Mcfe or an incremental $0.23 per Mcfe increase to our overall realized gas pricing of $2.81 per Mcf.

這與我們 2015 年指引的 NGL 實現率（相對 WTI 的 48% 至 52%）一致。更重要的是，若納入與液體產量相關的價值提升，我們每 mcfe 可取得 3.04 美元，亦即在整體已實現天然氣定價每 mcf 2.81 美元的基礎上，額外增加每 mcfe 0.23 美元。

This attractive realized pricing combined with our significant hedge gains which I will touch on shortly resulted in strong EBIDAX results for the quarter. As outlined on page one of our earnings call presentation title Antero relative outperformance we achieved in EBIDAX margin of $2.56 with $355 million of consolidated EBITDAX.

此一具吸引力的已實現定價，加上我稍後將提到的可觀避險收益，使本季 EBITDAX 表現強勁。如我們財報電話會議簡報第 1 頁（標題為 Antero relative outperformance）所示，我們達成 EBITDAX 利潤率 2.56 美元，合併 EBITDAX 為 3.55 億美元。

As you can see on the top half of the page over the last five quarters, we have consistently achieved leading margins among our peer group. When you combine these attractive margins with our explosive production growth, we have been able to continuously grow our EBITDAX even in declining commodity price environment. Since the first quarter of last year, we increased our EBITDAX $81 million or 30% while commodity prices have declined 40% to 50% and you can see that in the upper right box there.

如各位在頁面上半部所見，過去五個季度我們在同業群中持續維持領先的利潤率。當把這些具吸引力的利潤率與我們爆發性的產量成長結合，即使在商品價格下行的環境中，我們仍能持續成長 EBITDAX。自去年第一季以來，我們的 EBITDAX 增加 8,100 萬美元或 30%，而商品價格下跌了 40% 至 50%，各位可在右上方方框中看到。

During the quarter, we generated significant realized hedge gains of $185 million or $1.38 per Mcfe. As you can see on page two of our earnings presentation titled hedging integral to our business model this quarter represented the fourth quarter in a row and 24 out of the last 25 quarters that we realized hedge gains or 96% of the quarters since the beginning of 2009.

本季我們產生可觀的已實現避險收益 1.85 億美元，或每 mcfe 1.38 美元。如我們財報簡報第 2 頁（標題為 hedging integral to our business model）所示，本季為連續第四個季度、也是過去 25 個季度中的 24 個季度出現已實現避險收益；亦即自 2009 年初以來，有 96% 的季度實現避險收益。

Based on our hedge position as of March 31, we had 2.4 Tcfe, hedge with a $2.2 billion mark to market value. As we've outlined on previous calls, we believe our significant hedge position, liquids rich development program and diversified FD portfolio will continue to result in pure leading realizations and margins for many years to come. As a reminder, our 2015 development program is targeting wells generating returns of 30% to 50% range. Even in current commodity environment without the benefit of hedges.

以 3 月 31 日的避險部位為基準，我們有 2.4 Tcfe 的避險，按市價評估（mark to market）價值為 22 億美元。如同我們在先前電話會議中所述，我們相信龐大的避險部位、富含液體的開發計畫，以及多元化的 FD 組合，將在未來多年持續帶來同業領先的實現價格與利潤率。提醒各位，我們 2015 年開發計畫鎖定的井口報酬率為 30% 至 50% 區間，即使在目前商品環境下、且不考慮避險效益亦然。

Moving on to the capital markets activity in the quarter, we raised nearly $2.3 billion of capital in the first quarter, which included $1 billion increase in commitments under our credit facility, $750 million of five and five eight, eight year senior notes and $538 million net in equity proceeds.

接著談本季資本市場活動，我們在第一季募集近 23 億美元資金，其中包括在我們的信貸融資項下承諾額度增加 10 億美元、發行 7.5 億美元的 5 又 5/8、8 年期優先票據，以及股權募資淨額 5.38 億美元。

On the credit facility front despite the significant decline in commodity prices, we were able to increase commitments 33% to $4 billion which is driven by both our significant PDP reserve growth and the increase in the value of our hedge position. We are one of only four companies in the MP space with a borrowing base over $500 million that has increased commitments thus far during this redetermination season and the only company to grow commitments greater than $400 million.

在信貸融資方面，儘管商品價格大幅下跌，我們仍能將承諾額度提高 33% 至 40 億美元，主要受惠於我們已探明已開發產量（PDP）儲量的顯著成長，以及避險部位價值的提升。在本次重新決定（redetermination）季節中，我們是 MP 領域中僅有的四家借款基礎（borrowing base）超過 5 億美元且迄今提高承諾額度的公司之一，也是唯一一家承諾額度增加超過 4 億美元的公司。

I think this speaks to the productivity or assets the quality of our reserves and our valuable hedge book. On the high yield offering, we were one of the first E&P companies to issue in 2015 representing the first pricing of a BB issue since November of 2014. Being one of the first E&P issues out of the gate, we were able to capitalize on the built up demand for high quality paper which led us to upsize in the transaction by $250 million to $750 million total and pricing the five, eight senior notes at par. The proceeds of this issuance for you to pay down borrowings under our credit facility.

我認為這反映了我們資產的生產力、儲量品質，以及我們具價值的避險部位。在高收益債發行方面，我們是 2015 年最早發行的 E&P 公司之一，亦為自 2014 年 11 月以來首筆 BB 級別發行的定價。作為最早出場的 E&P 發行之一，我們得以掌握市場對高品質債券累積的需求，因而將交易規模上調 2.5 億美元至總額 7.5 億美元，並以平價（par）定價 5 又 5/8 的優先票據。此次發行所得款項用於償還我們信貸融資項下的借款。

In addition to the debt capital market's activity, we successfully executed an equity offering representing 5% of outstanding shares. This offering enabled us to further strengthen the balance sheet and continue executing an active development program for many years to come. As you can see on page three of our earnings presentation titled Antero capitalization these financings were very constructive to our balance sheet.

除債務資本市場活動外，我們也成功執行一項股權發行，規模相當於已發行在外股份的 5%。此項發行使我們得以進一步強化資產負債表，並在未來多年持續推動積極的開發計畫。如各位在我們財報簡報第 3 頁（標題為 Antero capitalization）所見，這些融資對我們的資產負債表非常具有建設性。

As of March, 31, we had consolidated liquidity of over $3.9 billion and net debt to EBITDAX of 2.8 when you evaluate the leverage on the last quarter annualized basis. Looking ahead to the remainder of year, we expect production to average between 1.375 and 1.425 for the final nine months of the year. As we previously disclosed in our 2015 guidance announcement in January, we are deferring 50 well completions in the Marcellus into 2016, which we expect will result in slide declines in our average daily production during the second and third quarters of 2015.

截至 3 月 31 日，我們合併流動性超過 39 億美元；若以最近一季年化基礎評估槓桿，我們的淨負債對 EBITDAX 為 2.8。展望今年剩餘期間，我們預期最後九個月的平均產量介於 1.375 至 1.425 之間。如同我們在 1 月公布 2015 年指引時先前揭露，我們將把 Marcellus 的 50 口井完井作業遞延至 2016 年，預期將導致 2015 年第二與第三季的日均產量出現小幅下滑。

If you recall, the timing of the deferrals was designed to limit our exposure to Dominion South and TETCO M2 pricing during the summer months of this year. Dominion South and M2 strip prices are currently trading at $1.12 and $1.05 discount respectively to NYMEX for the remainder of 2015.

如果你還記得，這些遞延的時點設計，是為了在今年夏季期間限制我們對 Dominion South 與 TETCO M2 定價的曝險。就 2015 年剩餘期間而言，Dominion South 與 M2 的遠期條帶價格目前分別較 NYMEX 折價 1.12 美元與 1.05 美元。

We have budgeted for a modest increase in completions and production in the fourth quarter as we gain access to favorable firm take away capacity in the Marcellus in the latter part of this year. Our current firm transport portfolio to TCO and to Marcellus is fully utilized until the additional capacity comes online, at which time we will gain access to a regional gathering pipeline which can deliver over 1 Bcf a day of incremental gas to NYMEX and TCO based pricing going forward.

隨著我們在今年稍晚取得馬塞勒斯（Marcellus）地區有利的固定外運（firm take away）運能，我們已在第四季預算中規劃完井與產量的小幅增加。我們目前通往 TCO 及馬塞勒斯的固定運輸（firm transport）組合在新增運能上線前均已滿載；待該運能啟用後，我們將可接入一條區域集輸管線，未來可在以 NYMEX 與 TCO 為基礎的定價下，每日額外輸送超過 10 億立方英尺（1 Bcf）的增量天然氣。

Rounding out my comments for the day, let's touch on quarterly financial results including the results for Antero Midstream or AM. Adjusted net revenue increased 57% from the prior year quarter to $655 million. Per unit production expenses were $1.46 per Mcfe, which was below our guidance range of $1.50 to $1.60 per Mcfe. And that was primarily due to lower production tax expense due to lower commodity prices.

作為我今天評論的收尾，我們簡要談一下季度財務結果，包括 Antero Midstream（AM）的結果。調整後淨營收較去年同期增加 57% 至 6.55 億美元。單位產量生產費用為每 Mcfe 1.46 美元，低於我們每 Mcfe 1.50 至 1.60 美元的指引區間；這主要是因商品價格較低，導致生產稅費用下降所致。

Our production expenses include lease operating, gathering, compression, processing and transportation costs as well as production tax. Our per unit net operating expense for the quarter was $0.12 per Mcfe and that was also below our full year of 2015 guidance range of $0.20 to $0.30 per Mcfe as we were able to monetize some of our excess rex capacity going to Chicago and the Midwest.

我們的生產費用包含租賃營運、集輸、壓縮、處理與運輸成本，以及生產稅。本季我們的單位淨營運費用為每 Mcfe 0.12 美元，也低於我們 2015 全年每 Mcfe 0.20 至 0.30 美元的指引區間，因為我們得以將部分前往芝加哥與中西部的多餘 Rex 運能變現。

Our G&A expense for the quarter was an attractive $0.23 per Mcfe excluding non-cash stock comp expense, which was also below guidance. EBITDAX for the fourth quarter was $355 million, 30% higher than last year and well ahead of First Call consensus estimates. And lastly for the quarter, we reported adjusted net income of $71 million or $0.27 per share also above consensus.

本季 G&A 費用（不含非現金股票薪酬費用）為每 Mcfe 0.23 美元，具吸引力且同樣低於指引。第四季 EBITDAX 為 3.55 億美元，較去年增加 30%，並大幅優於 First Call 的一致預估。最後，本季我們報告調整後淨利為 7,100 萬美元或每股 0.27 美元，也高於市場一致預期。

Moving on to Antero Midstream results, we recently announced the first distribution increase at pit Antero Midstream from the minimum quarterly distribution level of $0.17 per unit at IPO a few months ago. We increased that by $0.01 to $0.18 per unit or 6% quarter-over-quarter increase. This distribution increase was ahead of expectations driven by the tremendous through put growth achieved during the quarter.

接著談 Antero Midstream 的結果。我們近期宣布 Antero Midstream 自幾個月前 IPO 時每單位 0.17 美元的最低季度配息水準起，首次提高配息。我們將配息提高 0.01 美元至每單位 0.18 美元，亦即季增 6%。此次配息上調超出預期，主要受惠於本季達成的驚人吞吐量（throughput）成長。

As highlighted on page four of our earnings call preparation titled Antero Midstream High Growth, average daily low pressure gathering volumes were 935 million cubic feet a day in the first quarter, which represented a 182% increase from the prior year and 27% increase sequentially. High pressure gathering and compression volumes were 1,134 million cubic feet a day and 358 million cubic feet a day respectively, which represented increases of 800% and 894% over the prior year and sequential increases of 25% and 61%. Adjusted EBITDA for the first quarter was $36 million, which was an increase of 326% from the prior year quarter and 26% sequentially and distributable cash flow was $33 million, so truly impressive numbers. The significant year-over-year growth was driven by increased production from AR with 100% of AM's revenues derived from AR's production all based on fixed fees. The distribution coverage during the quarter was strong, at 1.2x - 1.2 times, which is at the top end of AM's full year 2015 guidance.

如我們財報電話會議準備資料第 4 頁「Antero Midstream High Growth」所示，第一季低壓集輸日均量為 9.35 億立方英尺，較去年同期增加 182%，較前一季增加 27%。高壓集輸與壓縮日均量分別為 11.34 億立方英尺與 3.58 億立方英尺，較去年同期分別增加 800% 與 894%，較前一季分別增加 25% 與 61%。第一季調整後 EBITDA 為 3,600 萬美元，較去年同期增加 326%，較前一季增加 26%；可分配現金流為 3,300 萬美元，確實是非常亮眼的數字。顯著的年增成長主要來自 AR 產量提升，且 AM 的營收 100% 來自 AR 的產量，並全部採固定費率。季度配息覆蓋率強勁，為 1.2x（1.2 倍），位於 AM 2015 全年指引的上緣。

Before I turn it over to Paul to cover our operational highlights and service cost reductions, I would like to summarize the quarterly results from a financial perspective. We continued to successfully execute on our development program and, once again, achieved peer-leading production growth, price realizations, cash margins and returns.

在我把時間交給 Paul 說明營運重點與服務成本下降之前，我想先從財務角度總結本季結果。我們持續成功執行開發計畫，並再次達成同業領先的產量成長、價格實現、現金利潤率與報酬。

We're overall capitalized with over $3.9 billion of liquidity as of March 31 and are significantly hedged with attractive prices for the remainder of the year and into 2016 and beyond. We believe we're well positioned to continue to executing on our organic development program and delivering significant value to our shareholders even in the current commodity price environment.

截至 3 月 31 日，我們整體資本結構穩健，流動性超過 39 億美元；同時我們以具吸引力的價格進行了大幅度避險，涵蓋今年剩餘期間並延伸至 2016 年及更遠。我們相信，即使在目前的大宗商品價格環境下，我們仍具備良好定位，可持續執行內生成長的開發計畫，並為股東創造顯著價值。

With that, I'll turn it over to Paul for his comments.

接下來我把時間交給 Paul 發表他的評論。

Thanks, Glen. In my comments today, I'm going to provide a brief update on service costs, discuss the scale and success of first quarter operations and provide further outlook on the remainder of the year.

謝謝，Glen。今天我的評論將簡要更新服務成本，說明第一季營運的規模與成果，並提供對今年剩餘期間的進一步展望。

First, to touch on well costs. As we previously mentioned during our year-end earnings call, we met with every major service company at the beginning of this year and reviewed every line item of our AFE for potential savings.

首先談井成本。如同我們先前在年終財報電話會議中提到的，我們在今年年初與每一家主要服務公司會面，並逐項檢視我們 AFE 的每一個費用項目，以尋找潛在節省空間。

As of today's conference call, we've begun to achieve cost savings of at least 10%, which equates to $1 million to $1.5 million savings per well. We also continue to assess service costs and operational efficiencies and expect to gain additional savings throughout the year.

截至今天的電話會議，我們已開始實現至少 10% 的成本節省，約當每口井節省 100 萬至 150 萬美元。我們也持續評估服務成本與營運效率，並預期在全年持續取得額外節省。

The 10% savings on more than 5,000 3P locations would equate to an increase of our 3P PV-10 of approximately $2 billion, which, of course, is quite meaningful. As a reminder, the budget for 2015 had accounted for a portion of the 10% savings, but not all, and again we hope to realize further savings throughout the year.

在超過 5,000 個 3P 井位上達成 10% 的節省，將使我們的 3P PV-10 增加約 20 億美元，這當然相當重要。提醒一下，2015 年預算已納入 10% 節省的一部分，但並非全部；我們也再次希望在全年持續實現更多節省。

Now, on to the operational highlights from the quarter. As Glen mentioned earlier, our net daily production for the first quarter of 2015 averaged a company record 1.45 -- excuse me -- 1.485 Bcfe a day, including over 40,000 barrels of liquids a day, or 16% of total volumes.

接著談本季營運重點。如 Glen 先前提到的，我們 2015 年第一季的淨日產量平均達到公司紀錄的 1.45——抱歉——1.485 Bcfe/日，其中液體超過 40,000 桶/日，占總量的 16%。

This represented an annual organic production growth rate of 89%, and liquids production for the first quarter of 2015 represented an annual organic production growth rate of 145%. While these production growth rates on a standalone basis are tremendous, I would also like to discuss our debt-adjusted per share production growth since our IPO in the fall of 2013.

這代表年化內生成長的產量成長率為 89%，而 2015 年第一季的液體產量年化內生成長率為 145%。雖然單看這些產量成長率已非常驚人，但我也想討論自 2013 年秋季 IPO 以來，我們在「經債務調整後、每股」口徑下的產量成長。

As you can see on page five of our earnings call presentation, entitled --debt-adjusted per share production growth -- we have delivered a 51% compounded annual production growth rate on a debt-adjusted per share basis since our IPO. This is 12 percentage points higher than our next closest Appalachian peer and we achieved this growth from a beginning production base of nearly 700 million cubic feet equivalent per day.

如你在我們財報電話會議簡報第 5 頁「—debt-adjusted per share production growth—」所見，自 IPO 以來，我們在經債務調整後的每股基礎上，已交出 51% 的產量複合年成長率。這比我們在阿帕拉契亞地區最接近的同業高出 12 個百分點，而我們是在接近每日 7 億立方英尺當量的起始產量基礎上達成這項成長。

We also have the largest reserves position in Appalachia which highlights the low risk nature of our drilling inventory. On the acreage front, we did quite a bit of wok internally digging through public well results in the Marcellus and Utica in order to determine the true core area each respective region.

我們也擁有阿帕拉契亞地區最大的儲量部位，凸顯我們鑽井庫存的低風險特性。在土地（acreage）方面，我們內部做了大量工作，深入研究馬塞勒斯與尤提卡（Utica）的公開井結果，以判定各區域真正的核心區（core area）。

Turning you now to page six of our earnings call presentation entitled largest core position, you can see that approximately 90% of all rigs drilling in the Marcellus are located within the core Marcellus outlines that we've identified, which provides us with another level of confirmation as to our analysis.

現在請看我們財報電話會議簡報第 6 頁「largest core position」。你可以看到，在我們所辨識的馬塞勒斯核心區輪廓內，約有 90% 的所有鑽機正在作業，這為我們的分析提供了另一層確認。

As you look at the map, our acreage is shaded in yellow at the southern portion of each play. We have more than 500,000 net acres within the core areas we defined in each play including 375,000 net acres within the liquids rich core areas.

從地圖上看，我們的土地以黃色標示，位於各個區塊（play）的南部。我們在各區塊所定義的核心區內擁有超過 50 萬淨英畝（net acres），其中包含 37.5 萬淨英畝位於富含液體的核心區。

Our liquids rich core acreage is nearly double the amount of our next closest peer. Additionally we have over 175,000 net acres prospective for the deep Utica in West Virginia. This size and scale not only provides us with significant inventory for many years but also enables us to commit to large-scale midstream and downstream projects thus providing us with a competitive advantage in generating superior margins.

我們富含液體的核心土地規模幾乎是最接近同業的兩倍。此外，我們在西維吉尼亞州還有超過 17.5 萬淨英畝具深層尤提卡（deep Utica）前景的土地。這樣的規模與量體不僅為我們提供多年可用的龐大庫存，也使我們能承諾大規模的中游與下游專案，從而在創造更優異利潤率方面取得競爭優勢。

Shifting gears to our individual operating areas. In the Marcellus, we are currently running seven rigs and two completion crews. During the quarter we completed and placed online 41 horizontal Marcellus wells that had an average lateral length of approximately 8,150 feet.

接下來我們切換到各個營運區域。在 Marcellus，我們目前運行七座鑽機與兩組完井隊。本季我們完井並投產了 41 口 Marcellus 水平井，平均水平段長度約 8,150 英尺。

Of the 41 wells placed online, 30 have been online for more than 30 days and had an average 30 day rate of 13.0 million cubic feet equivalent per day while rejecting ethane including 19% liquids.

在投產的 41 口井中，有 30 口已上線超過 30 天，30 天平均產量為每日 1,300 萬立方英尺當量；在拒收乙烷的情況下，液體占比為 19%。

As we look forward to the remainder of the year as Glenn mentioned, we are deferring 50 well completions in the Marcellus from the second and third quarters of 2015 into 2016. This will result in slight declines in our Marcellus production for the remaining quarters of 2015, however, we expect to ramp up completion activity once we have firm capacity to move to the more favorably priced PECO and Gulf Coast markets in the later part of the fourth quarter this year upon the in-service date of the regional gathering pipeline.

展望今年剩餘期間，如 Glenn 所提，我們將把 Marcellus 在 2015 年第二與第三季的 50 口井完井作業遞延至 2016 年。這將使我們 2015 年剩餘季度的 Marcellus 產量略有下滑；不過，我們預期在今年第四季後段、區域集輸管線投運後，一旦取得將產量輸送至價格更有利的 PECO 與墨西哥灣沿岸市場的確定運輸能力，我們將提高完井活動。

In the Utica we are currently running four rigs and five completion crews. We had limited completion activity during the first quarter but achieved record average daily production of 274 million cubic feet equivalent per day.

在 Utica，我們目前運行四座鑽機與五組完井隊。第一季完井活動有限，但我們達成了創紀錄的平均日產量：每日 2.74 億立方英尺當量。

The record production was primarily driven by the 16 completions we placed online in the fourth quarter of 2014, some of which were very late in the year.

這項紀錄產量主要由我們在 2014 年第四季投產的 16 口完井所帶動，其中部分是在年底非常晚的時間才上線。

As we look ahead to the remainder of the year in the Utica, we anticipate placing an additional 45 wells online throughout the year. Of the 45 wells that are expected to be completed and placed online, roughly half will be placed online in the third quarter on three different seven well pads.

展望 Utica 今年剩餘期間，我們預期全年將再投產 45 口井。在預計完井並投產的 45 口井中，約有一半將於第三季在三個不同的七井井場（pad）投產。

It's important to point out that the natural gas production from these 45 wells will flow into our REX firm transport capacity to the Chicago and Michigan markets. As a reminder, the Chicago and Michigan markets typically trade at a premium to NYMEX during the winter months, so the timing of bringing these wells online will be very beneficial. The current Chicago strip pricing for November 15 through March 16 is $0.20 higher than the NYMEX pricing during the same time period.

需要特別指出的是，這 45 口井的天然氣產量將透過我們在 REX 的確定運輸容量輸送至芝加哥與密西根市場。提醒一下，芝加哥與密西根市場在冬季月份通常相對 NYMEX 有溢價，因此這些井投產的時點將非常有利。目前芝加哥 11 月 15 日至 3 月 16 日的期貨帶（strip）價格，比同期間的 NYMEX 定價高出 0.20 美元。

Based on the outlook above for the Marcellus and Utica, we expect production to average 13.75 to 14.25 million cubic feet equivalent per day for the last nine months of this year, an average 1.4 Bcf equivalent a day for all of 2015, including over 37,000-barrels a day of liquids. Regarding capital expenditures for the quarter, we invested $569 million on development, 22 million on freshwater distribution infrastructure, and $52 million on base leasing.

基於上述對 Marcellus 與 Utica 的展望，我們預期今年最後九個月的平均產量為每日 13.75 至 14.25 百萬立方英尺當量；2015 年全年平均為每日 14 億立方英尺當量，其中液體超過每日 37,000 桶。就本季資本支出而言，我們在開發上投資 5.69 億美元、淡水配送基礎設施 2,200 萬美元，以及基礎租賃 5,200 萬美元。

Before, I wrap up, I wanted to briefly touch on our planned activity levels beyond 2015. Our current budget assumes an uptick in activity levels beginning in the fourth quarter of this year and into 2016, including the - completing the previously deferred Marcellus wells in the first half of 2016.

在我結束之前，我想簡要談談 2015 年以後我們規劃的活動水準。我們目前的預算假設活動水準將自今年第四季開始回升並延續至 2016 年，其中包括在 2016 年上半年完成先前遞延的 Marcellus 井完井作業。

This planned increase in activity is dependent both on the completion dates of the third-party pipeline projects to more favorably priced markets and also our outlook for commodity prices in 2016. We will continue to evaluate these factors throughout the year and anticipate firming up our decision on future activity levels later in the year.

這項規劃中的活動增加，取決於第三方管線專案通往價格更有利市場的完工時程，以及我們對 2016 年商品價格的展望。我們將在全年持續評估這些因素，並預期在今年稍晚時點敲定對未來活動水準的決策。

In summary, we had an outstanding quarter operationally, resulting in record production and peer leading realizations and margins. As highlighted on page seven of our earnings call presentation, titled Leadership in the Appalachian Basin, we are now the third largest producer of net equivalent production in all of Appalachia and the 12th largest producer of natural gas in the entire US, producing over 2% of the country's overall natural gas production.

總結而言，我們在營運面度過了非常出色的一季，帶來創紀錄的產量，以及同業領先的實現價格與利潤率。如同我們財報電話會議簡報第七頁「阿帕拉契亞盆地的領導地位」所強調的，我們目前已是全阿帕拉契亞淨當量產量第三大生產商，也是全美第 12 大天然氣生產商，產量占全國天然氣總產量超過 2%。

Additionally we have the largest liquids rich core acreage position and proved reserve base in Appalachia. When you combine this large scale resource position with our attractive hedge book, our diversified firm transport portfolio, and our integrated midstream business, we continue to be well - very well positioned to achieve significant value creation for our shareholders for many years to come.

此外，我們在阿帕拉契亞擁有最大規模的富液核心區塊（acreage）部位與已證實儲量基礎。當你把這個大規模資源部位與我們具吸引力的避險組合、多元化的確定運輸投組，以及整合式中游業務結合起來，我們仍然—非常—具備良好條件，未來多年持續為股東創造顯著價值。

Through the successful execution of the capital markets transactions we mentioned earlier, we've also preserved a great deal of optionality to accelerate the development program if warranted by an improvement in commodity prices and we can be opportunistic in the acquisition market.

透過我們先前提到的資本市場交易之成功執行，我們也保留了相當大的選擇權：若商品價格改善而有其必要，我們可加速開發計畫，並且能在併購市場上把握機會。

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

接下來，我將把電話會議交給接線員進行提問。

Thank you, sir. We will now begin the question-and-answer session. (Operator Instructions) The first question is from Mr. Neal Dingmann of SunTrust. Please go ahead, sir.

謝謝您，先生。我們現在開始問答環節。（接線員指示）第一個問題來自 SunTrust 的 Neal Dingmann 先生。先生請發問。

Hi. Morning, guys. Say Paul, I'm wondering, given what you see now, I guess, with commodity prices, I guess, year-to-date but what you're also seeing with your own and some peer dry gas wells versus the liquid wells, what's your thoughts as far as - it doesn't sound like you have any plans to change and chase after more dry gas or change the plans, but your thoughts on looking at those further east dry gas wells of yours versus just some others?

嗨，早安，各位。Paul，我想問的是，基於你目前看到的商品價格走勢（今年以來），以及你們自己與一些同業的乾氣井相較於富液井的表現，你對於—聽起來你們沒有打算改變計畫去追逐更多乾氣或調整計畫—但你對你們在更東邊那些乾氣井，相較於其他一些井的看法是什麼？

Yes. We are aware and we see certainly others in the industry talking about how dry gas is becoming more competitive with the liquids-rich wells version, of course, it's because liquids prices are down. We really like our dry gas areas, but we still give the edge to liquids rich.

是的。我們知道，也確實看到業界其他人正在談乾氣相對富液井變得更具競爭力，當然原因是液體價格下跌。我們非常喜歡我們的乾氣區域，但我們仍然認為富液區更占優勢。

I think others are starting to turn towards the deep dry Utica and we're keeping an eye on that. I think to assess that we just need a better feel of well costs and actual decline curves. So we'll watch others as well as possibly do some ourselves in the future. But right now the edge still goes to the liquids-rich and that's the plan we're going with.

我認為其他人開始轉向深層乾氣 Utica，而我們也在關注。要評估這點，我們需要更清楚掌握單井成本與實際遞減曲線。因此我們會觀察其他人的進展，未來也可能自己做一些。但就目前而言，優勢仍在富液區，這也是我們採行的計畫。

Got it. And then, just looking, I think it's actually after April 15 presentation where you dive in there and talk about some of the realization margins, and then that one I think you call your realized price roadmap. You continue to have among, if not, the best realizations of the Appalachia. I guess as you kind of continue to see the roadmap develop and see more exposure of the favorable indices, how do you see just the - I would call it your non-hedge differential, how to you potentially see that continuing to shape up through the remainder of the year?

了解。接著再看一下，我想是在 4 月 15 日之後的那份簡報，你們在裡面深入談到一些實現利潤率，還有我記得你們稱之為「實現價格路線圖」。你們持續擁有阿帕拉契亞地區名列前茅、甚至可能是最好的實現價格。隨著你們持續看到路線圖的推進、以及對更有利指數的曝險增加，你怎麼看—我稱之為你們未避險的價差（non-hedge differential）—在今年剩餘期間可能會如何持續改善？

Yes, Neal, we do see that improving over time. I'm not sure you'll see a whole lot of change this year, we'd forecast $0.20 to $0.30 kind of differentials to NYMEX for the remainder of the year or for the full year. So I think we'll be in that realm until we get that gathering pipeline in that will take us to additional markets, both TCO and NYMEX later in this year, and that's probably near year end when that happens.

是的，Neal，我們確實看到它會隨時間改善。我不確定今年會看到很大的變化；我們對今年剩餘期間或全年，預估相對 NYMEX 的價差大約在 0.20 到 0.30 美元。因此我認為在區域集輸管線投運之前，我們大致會維持在這個區間；該管線將在今年稍晚把我們帶到更多市場，包括 TCO 與 NYMEX，而那大概接近年底才會發生。

We will see some increasing exposure to the Mid Continent as we grow our volumes in the Utica throughout the year. I think about 80% of our completions in the Marcellus for the year we're done in the first half of the year as we laid on that regional pipeline whereas in the Utica about 80% of our completions for the year are in the back half of 2015 to give you some color on that. So you will see some shifting towards gas going to the mid-continent and Chicago out of the Utica throughout the year.

隨著我們全年在 Utica 的產量增加，我們將看到對美國中部（Mid Continent）的曝險提高。就一些背景來說，Marcellus 方面，我們今年約 80% 的完井是在上半年完成，因為我們在等待那條區域管線；而 Utica 方面，我們今年約 80% 的完井會落在 2015 年下半年。因此你會看到今年期間，來自 Utica 的天然氣將逐步更多轉向輸往美國中部與芝加哥市場。

Okay. And then lastly if I could, just how do you guys feel now obviously after the prior equity deal on your current liquidity position certainly seems to be more than adequate but there is a bit of it out spend just how you guys view the kind of financial position as far as when you look at where you would like the ideal leverage or financial position for the -- call it how you maybe exit this year?

好的。最後一個問題，如果可以的話，你們現在怎麼看待—顯然在先前那筆股權交易之後—目前的流動性部位看起來相當充足，但仍有一些超支（outspend）。你們如何看待財務狀況，特別是當你們思考理想的槓桿水準或財務定位—可以說是你們希望在今年結束時呈現的狀態？

Yes, I think we are very well positioned now with that - the equity dilution we took was only about 5%. We were comfortable doing that back when we did that in early March. Hard to say, where commodity prices were going. You've had some improvement since then on the oil side and hopefully the NGL side along with it. So that certainly helping the outlook and we are sticking with our capital plan for the year being very disciplined with that.

是的，我認為我們現在的定位非常好——我們所承受的股權稀釋只有大約 5%。當時在 3 月初做出那個決定時，我們對此是感到安心的。很難說大宗商品價格會往哪裡走。自那之後油價端已有一些改善，希望 NGL 端也能隨之改善。因此這確實有助於前景，而我們也會維持今年的資本計畫，在資本支出上保持非常嚴謹自律。

But we feel very good about having that level of liquidity that gives us a lot of optionality whether or not we see opportunities come to us on the land side or not. We are positioned to do that and we are very well positioned to certainly accelerate once we do develop comfort with the commodity price outlook particularly on the gas side with that kind of, liquidity and our hedge position, which goes hand-in-hand with the leverage position here.

但我們對擁有這樣水準的流動性非常有信心，這讓我們有很大的選擇彈性，不論我們是否在土地端看到機會找上門。我們具備採取行動的條件，而且一旦我們對大宗商品價格前景、特別是天然氣端，建立起更高的信心，憑藉這樣的流動性與我們的避險部位（這與此處的槓桿水準是相輔相成的），我們也非常有條件加速推進。

Makes sense. Thanks, gentlemen.

了解。謝謝各位先生。

Thanks you.

謝謝你。

The next question is from Holly Stewart of Howard Weil. Please go ahead, Madam.

下一個問題來自 Howard Weil 的 Holly Stewart。請發問，女士。

Good morning, gentlemen. Just a couple of quick questions. One maybe first on the marketing side, kind of, two prong question. You did a lot better than your guidance on the net marketing expense in the first quarter. So I guess the first part would be is there anything to note for Q1 and then maybe how do you see that market kind of, developing over the second half of the year?

早安，各位先生。我只有幾個簡短問題。第一個可能是行銷（marketing）端，算是兩部分的問題。你們第一季的淨行銷費用表現比指引好很多。所以我想第一部分是，第一季有沒有什麼需要特別說明的？第二部分是，你們怎麼看今年下半年這個市場的發展？

Yes. I think in the 1Q Holly and good morning, thank you for the questions. In 1Q there were sort of, two factors, one was just, I think we did a great job of moving third-party gas on the REX capacity and capturing some of that spread between TETCO and Chicago in the mid-continent. So I think we did a great job there but then also one of the factors that was driving our forecast for the year of $0.20 to $0.30 net marketing cost was the A&R pipeline capacity to the Gulf coast and we expected that to be available in March and ended up not being available until April, so that cost got pushed into the second quarter. So no cost from that in the first quarter, so those were the primary factors driving it down to that $0.12 cost level. But going forward we expected average for the year $0.20 to $0.30 and still our expectation.

是的。我想在第一季，Holly，早安，也謝謝你的提問。第一季大致有兩個因素：第一個是，我認為我們在 REX 管線容量上轉運第三方天然氣做得很好，並且在中部地區（mid-continent）成功掌握了 TETCO 與芝加哥之間的價差。所以那部分我們做得很出色。第二個因素是，我們對全年淨行銷成本 $0.20 到 $0.30 的預測，部分是由通往墨西哥灣沿岸的 A&R 管線容量所驅動；我們原本預期 3 月可用，但最後延到 4 月才可用，因此那筆成本被推遲到第二季。也就是說第一季沒有那部分成本。以上是主要因素，使成本降到 $0.12 的水準。但往後看，我們仍預期全年平均會在 $0.20 到 $0.30，這也仍是我們的預期。

Okay. And then maybe along the same lines Glen on just the overall production cost guidance. I mean again you did a better job in the first quarter. Is there something to think about from an uptick in the back half?

好的。那同樣延伸一下，Glen，關於整體生產成本指引。你們第一季同樣做得比預期好。下半年是否有什麼因素需要考慮可能會回升？

I think that was primarily driven by low production taxes due to low commodity prices. So I mean that's going to fluctuate with the commodity price throughout the year and hopefully we all see some uptick throughout the year in commodity prices and a bit higher production tax. So we are not changing the guidance. I did like where it came in and LOE stayed nice and low, which is terrific and we certainly continue to focus on the operating cost there's and we're optimistic but I think we're going to stay with the $1.50 to $1.60 guidance for now.

我認為那主要是因為大宗商品價格偏低，導致生產稅（production taxes）較低。這會隨著全年商品價格波動而變動；也希望我們都能在今年看到商品價格有所回升，生產稅也會相對高一些。所以我們不會調整指引。我確實喜歡第一季的落點，而且 LOE（租賃營運費用）維持得很低，這非常好；我們也會持續專注在營運成本上，並保持樂觀，但目前我們仍會維持 $1.50 到 $1.60 的指引。

Okay. And then my final one would just be, maybe Paul, on just the infrastructure side and kind of what you guys are seeing now for new pipes being proposed in 2018 and beyond. I mean, what we are hearing on the cost side is pretty high. So just maybe how you guys are viewing that market sort of developing and what you are thinking on additional capacity?

好的。最後一個問題可能是給 Paul，關於基礎設施端，以及你們目前看到 2018 年及之後新管線提案的情況。我們聽到成本端似乎相當高。想請教你們怎麼看這個市場的發展，以及你們對新增運輸容量的想法？

You know, as you Holly, there is a lot of projects that get floated and some look like they are a go in the 2018-2019 range, so some that can affect us incorrectly if not directly. But -- so EQT or EQM's pipes going towards the Carolinas, same with Dominion's, those look like they will probably fly. I think they have enough support.

你知道的，Holly，確實有很多專案被提出來，其中一些看起來在 2018-2019 年區間會成行；有些即使不是直接影響我們，也可能間接影響我們。但——例如 EQT 或 EQM 往卡羅萊納方向的管線，以及 Dominion 的管線，看起來大概都會推進。我認為它們有足夠的支持。

There is certainly others that get passed by us all the time. That also can help drain the area is surpluses develop. You do see even during these lower priced times that a number of the projects that have gotten floated recently are selling out in their open seasons. They are definitely finding E&P companies that are signing up to be shippers. So I think there is still -- people are still looking at their projected growth curves and seeing that they are going to need more firm transport out of the area.

當然，還有其他專案我們也一直看到被提出來，這些也能在區域出現供給過剩時，幫助把量排出去。即使在這些較低價格的時期，你仍會看到近期提出的不少專案在 open season（公開招標/認購期）就被認購一空。它們確實找到願意簽約成為承運人（shippers）的 E&P 公司。所以我認為仍然——大家仍在看自己的預期成長曲線，並認為他們需要更多從該區域外運的固定運輸（firm transport）能力。

There is also -- as quite an LNG market that's developing both on the East Coast, but particularly on the Gulf and so we and others are seeing LNG buyers that are -- LNG buyers that are also supporting the pull, so some of them are taking firm transport on some of the pipelines also to help drain the area. So I think there is -- it slowed down a little bit with the industry activity going down. But I think there is still interest both by producers and by buyers.

另外——LNG 市場也正在發展，東岸有，但尤其是在墨西哥灣沿岸；因此我們和其他人也看到 LNG 買家——LNG 買家也在支持這股外拉需求（pull），其中一些也在部分管線上承擔固定運輸，以協助把區域供給排出去。所以我認為——隨著產業活動下降，確實稍微放緩了一點；但我認為無論是生產商或買方，仍然都有興趣。

Great color. Thanks, guys.

資訊很有幫助。謝謝各位。

The next question is from Mr. Dan Guffey of Stifle. Please go ahead, sir.

下一個問題來自 Stifle 的 Dan Guffey 先生。請發問，先生。

Hey, guys. You touched on your liquidity position, just curious from your seat what is the M&A look like in Appalachia currently? Have you seen a lot of opportunities and I guess what's your appetite for acreage acquisitions?

嗨，各位。你們提到流動性部位，我想從你們的角度了解，目前阿帕拉契亞（Appalachia）的併購（M&A）情況如何？你們看到很多機會嗎？另外你們對收購土地（acreage acquisitions）的意願如何？

Well, we've really created a lot of value by just a holding in on the small acreage doing base leasing and so on, taking deep rights, we've really been able to create value that way just high grading and picking our points. So, in terms of M&A certainly as across the industry, but in Appalachia there are some companies that are under pressure. I think if we did anything on that front it would be more buy some acreage from slightly distressed producer. Probably wouldn't be on the M&A front in the corporate sense.

嗯，我們其實透過持續持有小面積土地、做基礎租賃（base leasing）等等、取得深層權利（deep rights），已經創造了很多價值；我們就是透過提高資產品質（high grading）並挑選切入點來創造價值。所以，就 M&A 而言，當然整個產業都是如此，但在阿帕拉契亞確實有一些公司正承受壓力。我認為如果我們在這方面做任何事，會比較像是向稍微陷入困境的生產商買一些土地；不太會是在公司層級、以企業併購的意義去做。

Thank you.

謝謝。

And we are seeing good opportunities. Acreage prices have gone down pretty much across the board on the base leasing. There is just not as much competition.

而且我們確實看到不錯的機會。基礎租賃的土地價格幾乎全面下滑，競爭也沒有那麼激烈。

Okay. Thanks. And you mentioned on dry Utica, you are looking at competitors, you are looking at state data. I guess, how much data do you need and how many wells do you need to actually see results on before you guys decide for your first test and will that be in Tyler County in West Virginia as previously planned and I guess at what point might you test the 42,000 net acres you had in Monroe and Noble over in Ohio?

好的，謝謝。你也提到在乾氣 Utica，你們在看競爭對手、也在看州政府資料。我想問，你們需要多少資料、需要看到多少口井的結果，才會決定進行你們的第一次測試？那會如先前規劃在西維吉尼亞州的 Tyler County 嗎？另外，你們什麼時候可能會去測試你們在俄亥俄州 Monroe 與 Noble 的 42,000 淨英畝？

Well, you know, as to Monroe and Noble we are starting to drill more dryish things, 1,100 BTU or 1,150. So that's on our rig schedule for this year. It is right on strike with Gulfport and others so it is not a big mystery as to one expect to get. So they are pretty much development wells over in Monroe and Noble.

嗯，你知道，至於 Monroe 和 Noble，我們今年的鑽機排程已開始鑽一些較偏乾氣的井，大概 1,100 BTU 或 1,150。那一帶與 Gulfport 等公司的走向（strike）一致，所以對於會得到什麼結果並不是什麼大謎團。因此在 Monroe 和 Noble 那邊基本上算是開發井（development wells）。

Along the Ohio River, there has been a lot of tests and a lot of pretty spectacular results in terms of initial rates from what we hear and then when we can pull off of the state websites. They hold up well. But all of that takes time to build the decline curves and then there is still the uncertainty of the costs you never, you know, we just don't have a good handle yet. People declare what their costs might be, but is that what they actually did or is that what they hoped to be able to do once they get the costs down and the methods more routine. So, we are watching it.

沿著俄亥俄河一帶，已經有很多測試；就我們聽到的以及能從州政府網站拉到的資料來看，在初期產量（initial rates）方面有不少相當驚人的結果，而且表現維持得也不錯。但這些都需要時間去建立遞減曲線（decline curves）。此外成本仍有不確定性——你知道的，我們目前還沒有很好的掌握。大家會宣稱他們的成本可能是多少，但那是他們實際做到的，還是他們希望在把成本降下來、方法更常態化之後能做到的？所以我們正在觀察。

As we have said before, we are waiting for at least for the Rover Pipeline, which comes in mid-2017 for a better market take away solution. And so will we do anything before that? Well, maybe if we see some other market solutions that can work for us. But we are being patient just trying to assess what the reserves and costs look like. So not sure it will be this year.

如同我們之前說過的，我們至少會等到 Rover Pipeline 在 2017 年中投運，讓市場外運（takeaway）有更好的解決方案。所以在那之前我們會做什麼嗎？嗯，也許，如果我們看到其他能適用於我們的市場解決方案。但我們會保持耐心，試著評估儲量與成本看起來如何。所以不確定會不會在今年。

Okay. Great. One last one for me. You guys drilled some of the longest laterals Appalachia on average. How much of your acreage is conducive for drilling 9,000 foot laterals which you guys have in your type curve and how much is limited due to either lose integration or geologic restrictions?

好的。很棒。我這邊最後一個問題。你們在阿帕拉契亞平均鑽了最長的一些水平段。你們的土地中有多少適合鑽 9,000 英尺的水平段（你們在型態曲線中採用的），又有多少因為整合度不足或地質限制而受限？

Most it is conducive to it. And -- so most of it. We have now a five-year drilling plan with specifically identified slots, specifically identified units and they already -- these units have quite high working interests that we unitize all of the tracks. We may not be at 100%, but usually by the time we spud we have nearly 100%. So we are quite blocked up. Don't see any reasons geologically why we can't go further. There is no faulting in either of our plays to speak of.

大部分都適合。也就是——大部分。我們現在有一個五年鑽井計畫，明確標示了井位、明確標示了單元，而且這些單元——我們把所有地塊都進行單元化，這些單元的作業權益比例相當高。我們可能不是 100%，但通常到開鑽時我們幾乎已接近 100%。所以我們的區塊整合得很完整。從地質上看不出有任何原因讓我們不能再往更長延伸。我們兩個區塊基本上都沒有可言的斷層。

There is that one technical matter we have talked about before which is what might a technical limit be. We have been out towards 12,000 plus feet in a lateral. When you get to 13,000 or 14,000 is the friction loss as you try and frac those distant stages is the friction -- we have well blocked up and don't see a problem there.

之前我們談過有一個技術層面的問題，也就是技術上的極限可能在哪裡。我們的水平段已經做到 12,000 英尺以上。當你做到 13,000 或 14,000 英尺時，在對那些遠端段落進行壓裂時的摩擦損失——摩擦——我們的井位區塊已經整合好，這方面看不出問題。

Thanks for the color today, guys.

謝謝你們今天提供的補充說明，各位。

The next question is from Subash Chandra of Guggenheim. Please go ahead.

下一個問題來自 Guggenheim 的 Subash Chandra。請發問。

Yes, hi. Question on pricing here, first on, NGLs even though you're sort of slated for the second expansion or Mariner East II, how do you see exports this year helping out in the basin and I will start there?

是的，你好。關於定價的問題，先從 NGL 談起。即使你們算是排在 Mariner East II 第二期擴建的名單上，你們怎麼看今年出口對盆地的幫助？我先問這個。

Well the exports out of the East you know Mariner East does not have that bigger quantity yet. And so Mariner East II will expand that Mariner West as you know is export to Serenia certainly that all of that helps in the tension and the dynamics in Appalachia. I think as time goes on more and more of these projects whether it's a Sunoco project or some of the others that are being floated that those will certainly help clear the market.

嗯，從東岸出口來看，你知道 Mariner East 目前還沒有那麼大的量。所以 Mariner East II 會擴大；而 Mariner West 如你所知是出口到 Sarnia，當然這些都會有助於阿帕拉契亞的供需拉扯與動態。我認為隨著時間推進，這些專案不論是 Sunoco 的專案或其他正在提出的專案，都會確實幫助市場出清。

It's being cleared somewhat right now a lot of people don't realize certainly there is the ethane pipeline ATEX but there's a lot of rail that is clearing the market and going to the Mid Continent and to a lot of different places to Western Canada to the Midwest. So there is some clearing right now but definitely future pipelines will help and I do think some of them will come to pass. I think there will probably be enough producer support.

目前其實已經在某種程度上出清了，很多人沒有意識到：當然有乙烷管線 ATEX，但也有大量鐵路運輸在出清市場，運往中部大陸地區以及許多不同地方，包含西加拿大與中西部。所以現在已經有一些出清，但未來的管線肯定會有幫助，而且我確實認為其中一些會落地。我想應該會有足夠的生產商支持。

And Subash you know our NGL pricing is net of that rail cost. So that's all factored in. And if you look at the overall basin or the two plays the Marcellus and Utica Rich we don't expect to see a whole lot of growth in the NGLs here throughout the year as producers have pulled back on their drilling. So that's actually a good factor in terms of pressure on NGL pricing and more rail etcetera. So it looks pretty stable right now.

Subash，你知道我們的 NGL 定價是扣除鐵路運輸成本後的淨價，所以那些都已經反映在內。若你看整個盆地或兩個區塊——富液的 Marcellus 與 Utica——由於生產商已縮減鑽井，我們預期今年 NGL 不會有太多成長。這其實對 NGL 定價壓力、以及更多鐵路運輸等因素而言是正面的。所以目前看起來相當穩定。

Got it. And when you think about your capacity in Mariner East II should we think about it the same as ATEX like you will load it according to the economics at that given time or should we think about that being sort of a -- you know -- a permanent home for volumes at the stated levels?

了解。那你們在 Mariner East II 的容量，應該用跟 ATEX 一樣的方式來看嗎——也就是你們會依當時的經濟性來裝載？還是應該把它視為——你知道——在所述水準下的長期固定去處？

I think it's more of the latter, Subash. It's probably going to be more of a permanent home. Yes, the bottom has dropped out of ethane and so we will use some of that space ourselves. But in the meantime we have been subletting it to a release capacity deals. But the international markets for propane, butane are healthier and have a number of parties that are interested in buying. So you know, odds are we will be able to fill it with our own equity liquids.

我認為比較偏後者，Subash。它很可能會更像是一個長期固定的去處。是的，乙烷價格已經大幅下跌，所以我們會自己使用其中一部分空間。但同時我們也一直透過釋放容量的交易把它轉租出去。不過丙烷、丁烷的國際市場比較健康，也有不少買方有興趣購買。所以你知道，很可能我們能用自有權益液體把它填滿。

Got it. Okay. And then final one for me. Just on Midwest pricing. Do you sort of see any threat to the differential if, say, Trans Canada reroutes gas from Eastern Canada into the Midwest?

了解。好。那我最後一個問題：關於中西部定價。如果例如 TransCanada 把天然氣從東加拿大改道輸往中西部，你們是否看到價差面臨任何威脅？

Yes, yes, there is definitely could be pressure a lot of folks we read their research reports as well and gas is coming in from Rockies, from Western Canada and now from Appalachia into those regions. So what you know -- what will come of it, it is a pretty deep market, pretty liquid. There are pipes that have been reversed, pipes such as our own with A&R that go from roughly the Michigan and Chicago area south as well as NGPL and so going south. So and on those variable costs to the shippers not all that high so the differential Midwest to Gulf can't get all that high before those pipes fill up and drain that area a little bit. But, yes, there could about pressure. Not sure how much drilling there will be in Western Canada at the lower prices to take it to Chicago, but that is a point where three different directions are bringing gas in the near future.

是的，是的，確實可能會有壓力。我們也會看很多人的研究報告；天然氣正從洛磯山、從西加拿大、現在也從阿帕拉契亞流入那些地區。所以你知道——結果會如何——那是一個相當深且流動性很高的市場。有些管線已經反向，例如我們自己的 A&R 管線，大致從密西根與芝加哥一帶往南走，還有 NGPL 也往南。所以對託運人而言，那些可變成本並不高，因此中西部到墨西哥灣的價差不可能高到某個程度而不讓那些管線被填滿、並把該區域的供應稍微排出一些。但，是的，可能會有一些壓力。不確定在較低價格下西加拿大會有多少鑽井，並把氣送到芝加哥，但這確實是一個點：未來不久會有三個不同方向把天然氣帶進來。

But I will add you have seen differentials tightened a bit in Chicago here off late. They have widened out $0.16 or so I believe in the out years and now around a dime and essentially flat to NYNEX next year. So kind of moves the other way.

但我補充一下，你已經看到芝加哥的價差最近有所收斂。遠期年份我記得擴大到約 0.16 美元，而現在大約 0.10 美元，且明年基本上與 NYMEX 持平。所以走勢有點相反。

Yes. Lots of moving parts. Thanks Paul. Thanks Glen.

是的。變數很多。謝謝 Paul。謝謝 Glen。

The next question is from Jeoffrey Lambujon of Tudor, Pickering, Holt & Co. Please go ahead sir.

下一個問題來自 Tudor, Pickering, Holt & Co. 的 Jeoffrey Lambujon。先生請發問。

Good morning. Just one follow-up for me, on the longer term gas infrastructure thoughts as you think about the out-years and potential mid stream projects come online beyond 2015 that will take your production to better priced hubs, how do you balance the idea of bringing on new volumes to fill the capacity versus just diverting existing production away from weaker priced hubs?

早安。我只有一個追問：就你們對長期天然氣基礎設施的想法而言，當你們看更遠的年度，以及 2015 年之後可能上線的中游專案，這些專案會把你們的產量送往價格更好的樞紐時，你們如何在「引入新增量以填滿容量」與「把既有產量從較弱的定價樞紐改道」這兩者之間取得平衡？

Well the latter will be the first thing we do and so that begins at the end of this year. We have certain firm sales deals that take us to Dominion South and to TETCO M2 up to the north and southwestern Pennsylvania. And so those deals were done to keep our gas flowing. They were done at you know at better times when Dominion South and TETCO M2 were healthier, but those are quantities that we'll be able to begin pulling away as soon as our regional gathering system comes on.

嗯，後者會是我們首先做的事，而這會在今年年底開始。我們有一些確定性的銷售合約，把我們的天然氣送到 Dominion South，以及位於賓州北部與西南部的 TETCO M2。這些合約是為了讓我們的天然氣能持續外送而簽的；它們是在你知道、當 Dominion South 與 TETCO M2 狀況較健康的時候簽的，但一旦我們的區域集輸系統上線，我們就能開始把這些量拉回來。

So that will be the first step to use our infrastructure to move away from the lesser markets, but then the infrastructure the firm transport continues to grow over the next several years and so that will be mostly intended for Antero gas and what we aren't using ourselves, of course will be doing third-party deals to offset some of that cost. So early one it will be moved away from less favorable markets but it's mostly intended for Antero equity production.

所以第一步會是利用我們的基礎設施，從較差的市場移出；但接下來，未來幾年確定性運輸能力仍會持續成長，而那主要是為 Antero 的天然氣所準備。我們自己用不完的部分，當然會做第三方交易，以抵銷部分成本。所以在早期會先從較不利的市場移出，但它主要是為 Antero 的自有權益產量而設計。

Thank you.

謝謝。

And this concludes our question and answer session. Be, I would like to turn the conference back over to you for any closing remarks.

本次問答環節到此結束。B，我想把電話會議交回給你，請你做任何結語。

And we would like to thank everyone for joining us on the conference call today. If you have further questions please feel free to reach out to me. Thanks again for joining us.

我們想感謝各位今天參加電話會議。如果你們還有進一步問題，歡迎隨時與我聯繫。再次感謝各位參與。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次會議已結束。感謝各位出席今天的簡報。您現在可以掛線。