Antero Resources Corporation (AR) 2015 Q3 法說會逐字稿

Good day, and welcome to the Antero Resources third-quarter 2015 earnings conference call and webcast.

各位好，歡迎參加 Antero Resources 2015 年第三季財報電話會議與網路直播。

(Operator Instructions)

（接線員指示）

Please note this event is being recorded. I would now like to turn the conference over to Mr. Michael Kennedy, Vice President of Finance and Director of Investor Relations. Please go ahead.

請注意，本活動將進行錄音。我現在想將會議交給財務副總裁兼投資人關係總監 Michael Kennedy 先生。請開始。

Thank you for joining us for Antero's third-quarter 2015 investor conference call. We will spend a few minutes going through the financial and operational highlights, and then we'll open it up for Q&A. I would also like to direct you to the homepage of our website at www.anteroresources.com, where we have provided a separate earnings call presentation that will be reviewed during today's call.

感謝各位參加 Antero 2015 年第三季投資人電話會議。我們將花幾分鐘回顧財務與營運重點，接著開放問答。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，將在今天的會議中一併檢視。

Before we start our comments, I'd like to first 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.

在開始發言之前，我想先提醒各位，本次電話會議中 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。實際結果與成果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. I will now turn the call over to Glen.

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。我現在把電話交給 Glen。

Thanks, 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 third-quarter 2015 results, discuss our peer-leading EBITDAX, EBITDAX margins and price realizations, and review the drop-down of our water business from Antero Resources to Antero Midstream.

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 年第三季成果中的幾項關鍵成就，討論我們在同業中領先的 EBITDAX、EBITDAX 利潤率與實現價格，並回顧我們將水務業務自 Antero Resources 下放（drop-down）至 Antero Midstream 的交易。

Paul will then discuss operational highlights from the quarter, provide an update on the regional gathering line expected to be in place, online, in December of this year. Review current well costs and expectations moving forward, and provide further commentary on our preliminary 2016 development plans.

接著 Paul 將說明本季營運重點，更新預計於今年 12 月建置完成並上線的區域集輸管線（regional gathering line）進度，回顧目前單井成本與未來展望，並就我們初步的 2016 年開發計畫提供進一步評論。

On the production front, we had another outstanding quarter, setting record quarterly production levels and passing the 1.5 Bcfe a day quarterly production mark for the first time in our history. Liquids production during the quarter averaged over 52,000 barrels a day, and made up nearly 21% of our production stream, and that's C3 plus NGLs, of course, plus condensate. Both the overall production growth and liquids production growth were driven by outstanding results in our Utica operations, where we placed 25 wells online during the quarter.

在產量方面，我們再度交出非常亮眼的一季，創下單季產量新高，並首次在公司歷史上突破單季日均 15 億立方英尺當量（1.5 Bcfe/d）的門檻。本季液體產量日均超過 52,000 桶，約占我們產量組合的近 21%——當然包括 C3+ NGLs 以及凝析油。整體產量成長與液體產量成長皆由我們 Utica 作業的優異成果所帶動，本季我們有 25 口井投產上線。

Utica net production increased over 120 million cubic feet a day equivalent, to an average of 365 million cubic feet a day equivalent, including liquids production of 19,250 barrels a day for the quarter. During the quarter, we once again realized peer-leading EBITDAX, EBITDAX margins, and price realizations, driven by our record production, attractive firm transportation portfolio, significant hedge book and reduced operating cost, which I'll touch on shortly.

Utica 淨產量增加逾每日 1.2 億立方英尺當量，平均達每日 3.65 億立方英尺當量，其中本季液體產量為每日 19,250 桶。本季我們再次實現同業領先的 EBITDAX、EBITDAX 利潤率與實現價格，主要受惠於創紀錄的產量、具吸引力的固定運輸（firm transportation）組合、龐大的避險部位，以及降低的營運成本——我稍後會談到。

As outlined on slide 2 of our earnings call presentation, titled Antero Outperformance, we achieved an EBITDAX margin of $1.97 per Mcfe, with $291 million of consolidated EBITDAX. As you can see on the top half of that page, page 2, over the last five quarters, we have consistently achieved peer-leading EBITDAX margins among our peer group. We've outperformed the average peer group EBITDAX margin by more than 70% in third quarter alone.

如我們財報電話會議簡報第 2 頁（標題為「Antero Outperformance」）所示，我們達成每 Mcfe 1.97 美元的 EBITDAX 利潤率，合併 EBITDAX 為 2.91 億美元。從該頁上半部（第 2 頁）可見，過去五個季度我們在同業群中持續達成領先的 EBITDAX 利潤率。僅在第三季，我們的 EBITDAX 利潤率就比同業平均高出超過 70%。

Pointing you to the bottom half of the page, we generated the same level of EBITDAX during the third quarter of this year as we did the prior-year quarter, despite more than a 50% drop in oil prices and 30% drop in gas prices. This compares favorably to the peer group, which generated on average 42% less EBITDAX compared to the prior-year quarter.

請看該頁下半部，我們在今年第三季所創造的 EBITDAX 與去年同期相同，儘管油價下跌超過 50%、天然氣價格下跌 30%。相較之下，同業群平均較去年同期少了 42% 的 EBITDAX。

This was the second consecutive quarter that we generated the highest EBITDAX among our Appalachian peers, and we had over $75 million higher EBITDAX than our next closest peer. These financial results truly demonstrate the sustainability of Antero's business model. These strong EBITDAX results were primarily driven by our record production, attractive firm transport portfolio, which enables us to take our gas to more favorably priced markets, and our substantial hedge book, of course.

這是我們連續第二季在阿帕拉契（Appalachian）同業中創下最高 EBITDAX，且較次高同業多出超過 7,500 萬美元的 EBITDAX。這些財務成果確實展現 Antero 商業模式的可持續性。這些強勁的 EBITDAX 主要由我們創紀錄的產量、具吸引力的固定運輸組合（使我們能將天然氣銷往價格更有利的市場），以及我們龐大的避險部位所驅動。

Turning you to slide 3 of our earnings presentation, titled 3Q 2015 Natural Gas and NGL Realizations, you can see that our natural gas realization during the third quarter was $2.32 per Mcf before hedging, and $3.99 per Mcf after hedging. That's on the upper-left portion of that graph. The before-hedging price in yellow represented a $0.45 differential to the Nymex price for the quarter.

請翻到我們財報簡報第 3 頁（標題為「3Q 2015 Natural Gas and NGL Realizations」），可見我們第三季天然氣實現價格在避險前為每 Mcf 2.32 美元，避險後為每 Mcf 3.99 美元，位於圖表左上方。黃色所示的避險前價格，代表本季相對於 Nymex 價格有 0.45 美元的價差（differential）。

This was 25% higher than the peer group median on pre-hedged prices, and 62% higher than the peer group median, including hedge settlements. We sold 68% of our gas during the quarter at favorably priced indices, including TCO, Nymex and Chicago, and expect that percentage to grow to 85% in 2016.

在避險前價格方面，這比同業中位數高出 25%；若包含避險結算，則比同業中位數高出 62%。本季我們有 68% 的天然氣以價格較有利的指數出售，包括 TCO、Nymex 與 Chicago，並預期該比例在 2016 年提升至 85%。

On the NGL front, we realized $12.08 per barrel before hedging, and $16.47 per barrel after hedging. Similar to our realized gas pricing, our NGL pricing was more than double the peer group average, on pre-hedge prices, and almost triple the peer group average when you include hedge settlements. We expect this outperformance to continue, as we are 100% hedged on propane in 2016, and gain access to international markets in 2017 through our Mariner East II capacity.

在 NGL 方面，我們避險前實現每桶 12.08 美元，避險後每桶 16.47 美元。與天然氣實現價格類似，我們的 NGL 定價在避險前即為同業平均的兩倍以上；若納入避險結算，幾乎達同業平均的三倍。我們預期此一優勢將持續，因為我們在 2016 年對丙烷已 100% 避險，並將於 2017 年透過 Mariner East II 的運能進入國際市場。

On the hedging front, we again generated substantial realized hedge gains of $206 million, or $1.49 per Mcfe during the quarter. As you can see on slide 4 of our earnings call presentation, titled Hedging -- Integral to the Business Model, this represented the 26 out of the last 27 quarters since 2009 that we realized a hedge gain, generating over $1.5 billion in cash revenues over that time frame.

在避險方面，本季我們再次產生可觀的已實現避險收益 2.06 億美元，或每 Mcfe 1.49 美元。如財報電話會議簡報第 4 頁（標題為「Hedging -- Integral to the Business Model」）所示，自 2009 年以來的最近 27 個季度中，我們有 26 個季度實現避險收益，在此期間累計創造超過 15 億美元的現金收入。

As we've discussed on past calls, hedging is not just complementary to our business model, but integral to our success and long-term development plans. We sell a significant portion of our production forward, it's as simple as that.

如同我們在過往電話會議中所討論，避險不僅是對我們商業模式的補充，更是我們成功與長期開發計畫不可或缺的一環。我們將相當大一部分產量以前瞻方式出售，就是這麼簡單。

The shale revolution has changed the dynamics of the oil and gas industry. Given our significant low-cost resource position in what we believe is one of the most attractive shale plays in North America, it is imperative that we are able to lock in attractive rates of return through our substantial hedge book, and diversify the firm transport portfolio. We now have 3.1 Tcfe hedge going forward, at an average price of $3.93 per MMBtu, which equates to a $2.8 billion mark-to-market value, as of September 30 of this year.

頁岩革命改變了油氣產業的動態。鑑於我們在北美最具吸引力的頁岩區塊之一（我們如此認為）擁有顯著的低成本資源部位，我們必須透過龐大的避險部位鎖定具吸引力的報酬率，並分散固定運輸組合。我們目前未來合計有 3.1 Tcfe 的避險部位，平均價格為每 MMBtu 3.93 美元；以今年 9 月 30 日為基準，其按市價評估（mark-to-market）價值相當於 28 億美元。

As highlighted on slide 5 of our earnings presentation, titled Insulated From 2016 Commodity Price Volatility, we are nearly 100% hedged on our preliminary targeted 2016 production range, at $3.94 per Mcfe. The only components of our production stream that are unhedged at this time are the C4 Plus NGL products and our condensate production.

如財報簡報第 5 頁（標題為「Insulated From 2016 Commodity Price Volatility」）所強調，我們對初步目標的 2016 年產量區間幾乎已 100% 避險，價格為每 Mcfe 3.94 美元。目前我們產量組合中尚未避險的部分，僅包括 C4+ NGL 產品與凝析油產量。

Given the significant hedge position, we could experience $30 oil and $2 natural gas throughout the year, and only lose approximately 3% of our expected EBITDA, based on current strip pricing. You can see that in the middle of the page, lower part -- middle of the page on the graph. So needless to say, we feel very good about our 2016 development plans.

在如此顯著的避險部位下，即使全年油價為 30 美元、天然氣為 2 美元，依據目前的遠期曲線（strip pricing），我們預期 EBITDA 也僅會減少約 3%。你可以在該頁圖表中間偏下的位置看到。因此不必多說，我們對 2016 年開發計畫感到非常有信心。

Before I highlight some of the key quarterly financial results, I want to discuss the drop-down of our water business from Antero Resources to Antero Midstream that occurred in late September, as well as highlight the recent increase to our borrowing base, which was completed earlier this week. First on the drop-down, Antero Midstream acquired the entire water business from Antero Resources for $1.05 billion, with AR receiving $794 million in cash, and 11 million common units in MLP. Plus two potential earn-out payments of $125 million each, due at the end of 2019 and 2020, if certain delivered volume thresholds are met.

在我強調一些關鍵的季度財務結果之前，我想先討論我們於9月下旬將水務業務自 Antero Resources 下放（drop-down）至 Antero Midstream 的交易，以及本週稍早完成、我們借款基礎（borrowing base）近期上調的情況。先談下放交易：Antero Midstream 以10.5億美元自 Antero Resources 收購整個水務業務；AR 收到7.94億美元現金，以及 MLP 的1,100萬個普通單位。此外，若達成特定交付量門檻，尚有兩筆各1.25億美元的或有對價（earn-out）款項，分別於2019年與2020年底到期支付。

We are very excited to complete this transaction, and believe it was well structured by the AR and AM independent committees, resulting in a win-win for all the parties involved. From the AR side, the transaction enabled us to substantially de-lever our balance sheet through the $794 million cash payment received, and we increased our holdings in AM by 11 million units, retaining 66% interest in MLP. Additionally, the earn-out payments provide another incentive for long-term AR growth.

我們非常高興完成這筆交易，並相信 AR 與 AM 的獨立委員會對交易架構設計得當，為所有相關方帶來雙贏。就 AR 而言，透過收到的7.94億美元現金款項，該交易使我們得以大幅降低資產負債表槓桿；同時我們在 AM 的持有量增加了1,100萬個單位，並保留對 MLP 的66%權益。此外，或有對價款項也為 AR 的長期成長提供了另一項激勵。

On the credit facility front, despite the significant decline in commodity prices over the last year, our borrowing base increased by 12.5%, to $4.5 billion, which was driven both by our PDP reserve growth and by the increase in the value of our hedge position. We are one of only a handful of companies in the E&P space with a borrowing base over $500 million that has increased its borrowing base thus far during this re-determination season. On the heels of the credit facility commitment increase in the spring, we think this really speaks to the productivity of our assets, quality of our reserves and resiliency of our business model.

在信貸融資方面，儘管過去一年大宗商品價格大幅下跌，我們的借款基礎仍提高了12.5%，至45億美元；此一增幅同時受惠於我們 PDP（已開發已生產）儲量成長，以及避險部位價值上升。我們是 E&P（勘探與生產）領域中少數幾家借款基礎超過5億美元、且在本次重訂季（re-determination season）迄今仍能上調借款基礎的公司之一。繼春季信貸承諾額度上調之後，我們認為這充分反映了我們資產的生產力、儲量品質以及商業模式的韌性。

As outlined on slide 6, titled Strong Balance Sheet and Financial Flexibility, you can see in the top-left quadrant that, as a result of the water drop, Antero Resources liquid non-E&P assets of $5.5 billion exceed total debt of $3.9 billion by over $1.5 billion. So the non-liquid EPS [that's for] the commodity derivatives and the equity ownership in AM.

如第6頁投影片「強健的資產負債表與財務彈性」所示，您可以在左上象限看到：由於水務下放交易，Antero Resources 的非 E&P 流動資產達55億美元，較總負債39億美元高出逾15億美元。因此，非流動的 EPS［指的是］大宗商品衍生品以及在 AM 的股權持有。

To emphasize the point, while we have no plans to do so, we could repay all debt, and have over $1 billion in cash on the balance sheet, if we chose to monetize our liquid non-E&P assets. This relationship is quite extraordinary, relative to our peers in the industry today. In the bottom left quadrant, AR has nearly $3 billion of credit facility liquidity on a standalone basis, as of September 30, and approximately $4 billion on a consolidated basis.

為了強調這一點，雖然我們沒有這樣做的計畫，但若我們選擇將非 E&P 流動資產變現，我們可以償還全部債務，且資產負債表上仍可保有超過10億美元現金。相較於當今同業，這種關係相當非同尋常。在左下象限，截至9月30日，AR 以單體口徑計算的信貸融資可用流動性接近30億美元，以合併口徑計算約為40億美元。

Rounding out my comments for today, let's touch on the quarterly consolidated financial results. Antero Resources adjusted net revenue increased 12% from the prior-year quarter, to $570 million per unit. Production expenses were $1.32 per Mcfe, which is an 18% decrease from the prior-year quarter, and well below our full-year 2015 guidance range of $1.50 to $1.60 per Mcfe. Driven by lower production tax expenses stemming from lower commodity prices, a reduction in estimated property taxes, as well as reduced fuel cost due to lower commodity prices. Our production expenses include leased operating, gathering, compression, processing and transportation costs, as well as production tax.

作為我今天評論的收尾，我們來談談季度合併財務結果。Antero Resources 的調整後淨營收較去年同期增加12%，至每單位5.70億美元。生產費用為每 Mcfe 1.32美元，較去年同期下降18%，且明顯低於我們2015年全年指引區間每 Mcfe 1.50至1.60美元。此改善主要受較低大宗商品價格帶動的生產稅費下降、估計財產稅下調，以及因大宗商品價格較低而降低的燃料成本所驅動。我們的生產費用包含租賃營運、集輸（gathering）、壓縮、處理與運輸成本，以及生產稅。

Our per unit net marketing expense for the quarter were $0.19 per Mcfe, also below our 2015 guidance range of $0.20 to $0.30 per Mcfe, primarily as a result of our increased Utica equity production volumes flowing on our Chicago-directed firm transportation portfolio, thereby reducing unused capacity on this firm transport. Our G&A expense for the quarter was $0.26 per Mcfe, a 10% decrease from the third quarter of 2014, and within our guidance range of $0.23 to $0.27 per Mcfe, excluding non-cash stock compensation expense.

本季每單位淨行銷費用為每 Mcfe 0.19美元，也低於我們2015年指引區間每 Mcfe 0.20至0.30美元；主要原因是我們更多的 Utica 權益產量透過我們面向芝加哥的長約運輸（firm transportation）組合輸送，從而降低該長約運輸的閒置容量。我們本季 G&A（一般及行政）費用為每 Mcfe 0.26美元，較2014年第三季下降10%，且落在我們指引區間每 Mcfe 0.23至0.27美元之內（不含非現金股票薪酬費用）。

EBITDAX for the third quarter was $291 million, in line with last year's third quarter, despite a 32% reduction in Nymex natural gas prices, and a 53% reduction in oil prices. Lastly, during the quarter, we spent $341 million on drilling completion, $39 million for land, and $20 million for water projects.

第三季 EBITDAX 為2.91億美元，與去年第三季大致持平，儘管 Nymex 天然氣價格下跌32%，油價下跌53%。最後，本季我們在鑽井完井上支出3.41億美元，土地支出3,900萬美元，水務專案支出2,000萬美元。

Driven by our strong financial position and significant hedge book, we believe we are well positioned to continue executing our development plan for many years to come. With that, I will turn it over to Paul for his comments.

在我們強勁的財務狀況與龐大的避險部位帶動下，我們相信公司已具備良好條件，能在未來多年持續執行我們的開發計畫。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 further discuss operational highlights from the quarter, provide an update on the in-service timing of the regional gathering pipeline that we've discussed on past calls, and its impact to Antero's bottom line. I'll review current well costs and expectations moving forward, and I'll provide additional commentary over our preliminary 2016 production growth targets.

謝謝，Glen。今天在我的評論中，我將進一步討論本季的營運亮點，更新我們在過去電話會議中提到的區域集輸管線（regional gathering pipeline）投運（in-service）時程，以及其對 Antero 損益的影響。我也會回顧目前的單井成本與未來展望，並就我們初步的2016年產量成長目標提供更多評論。

First, let me provide some additional color as it relates to some of our key operational highlights from the quarter, particularly in the Utica. As Glen mentioned earlier, we completed and placed online 25 wells in the Utica during the quarter, and this represented over 80% of the wells that we placed online during the quarter, and over 26% of all Utica wells that we've put to sales since the beginning of 2013.

首先，我想就本季一些關鍵營運亮點補充更多細節，特別是在 Utica。正如 Glen 先前提到的，我們本季在 Utica 完井並投產了25口井；這占本季我們投產井數的80%以上，也占自2013年初以來我們投入銷售的所有 Utica 井數的26%以上。

So it was a very productive quarter in the Utica. The Utica activity is what really drove both our overall production growth, and more specifically our liquids production growth, with an average liquids content from these 25 wells of 33% in ethane rejection.

因此，Utica 本季表現非常高產。Utica 的作業活動真正帶動了我們整體產量成長，尤其是液體產量成長；這25口井在乙烷剔除（ethane rejection）情境下的平均液體含量為33%。

With all that being said, we also completed the driest, most down-dip Utica pad by Antero to date, the so-called Laura Ditch pad. Even under a flow-back management program, these wells had an impressive combined average 30-day rate of 64 million cubic feet equivalent per day, with average flowing casing pressure of 3,400 pounds per well for the 30 days.

在上述背景下，我們也完成了迄今為止 Antero 在 Utica 最乾、且最向下傾端（down-dip）的井場平台（pad），即所謂的 Laura Ditch pad。即使在返排（flow-back）管理方案下，這些井仍展現亮眼表現：合併平均30日產量達每日6,400萬立方英尺當量，且30日期間每口井的平均套管流壓為3,400磅。

As a reminder, through our attractive firm transport portfolio, we are able to sell our Utica gas volumes to the Chicago market, and the Mich-Con market, which historically trade at a premium to Nymex pricing. Driven by the attractive Chicago and Mich-Con pricing, along with the BTU upgrade we receive on our gas from rejecting ethane and leaving it in the gas stream, we realized a $0.26 per Mcf premium to Nymex during the quarter on our Utica gas sales, an outcome we are very pleased with.

提醒一下，透過我們具吸引力的長約運輸組合，我們能將 Utica 的天然氣銷往芝加哥市場與 Mich-Con 市場；這些市場歷來相較 Nymex 定價具有溢價。在具吸引力的芝加哥與 Mich-Con 價格帶動下，加上我們透過剔除乙烷並將其留在氣流中而獲得的 BTU 升級，本季我們 Utica 天然氣銷售相對 Nymex 實現每 Mcf 0.26美元的溢價，這個結果令我們非常滿意。

In West Virginia, we completed six Marcellus wells during the quarter, with an average lateral length of approximately 10,300 feet, and an average stage length of approximately 200 feet. Slide 7 details the drilling and casing of our first West Virginia Utica shale well in Tyler County earlier this month, at a total vertical depth of 11,400 feet, and a lateral length of more than the 6,600 feet.

在西維吉尼亞州，我們本季完成6口 Marcellus 井，平均水平段長度約10,300英尺，平均分段（stage）長度約200英尺。第7頁投影片詳述我們本月稍早在 Tyler 郡鑽探並下套管的第一口西維吉尼亞 Utica 頁岩井：總垂直深度11,400英尺，水平段長度超過6,600英尺。

We are currently beginning completions activity on this well. Once the well is completed, we will produce into our rich gas infrastructure, in order to assess its performance, and the appropriate pace of development, once the energy transfer rover pipeline is placed into service, and goes right near this area in 2017.

我們目前正開始對該井進行完井作業。待完井後，我們將接入我們的富氣（rich gas）基礎設施進行生產，以評估其表現，以及在2017年 Energy Transfer Rover 管線投運並經過該區域附近後，適當的開發節奏。

As it relates to drilling and completion costs, we continue to be very encouraged by what we are seeing today. We have reduced well costs in both the Marcellus and Utica by 16% and 18%, respectively, as compared to 2014 costs. In the Marcellus, approximately 50% of the savings are from service cost reductions, and 50% are from operational efficiencies. In the Utica, approximately 65% of the well cost savings are from service cost reductions, and 35% are from operational efficiencies.

就鑽井與完井成本而言，我們對目前所見仍深受鼓舞。相較2014年的成本，我們已將 Marcellus 與 Utica 的單井成本分別降低16%與18%。在 Marcellus，約50%的節省來自服務成本下降，另50%來自營運效率提升。在 Utica，約65%的單井成本節省來自服務成本下降，35%來自營運效率提升。

Year to date, we have averaged $0.90 per Mcfe of development costs, including about $1.2 million per well of road, pad, and facilities costs. On the service cost side of things, it's important to point out that many of our drill rigs and frac crews today are still under legacy contracts.

年初至今，我們的開發成本平均為每 Mcfe 0.90 美元，其中包含每口井約 120 萬美元的道路、井場平台（pad）及地面設施成本。在服務成本方面，重要的是要指出，我們目前許多鑽機與壓裂施工隊仍受舊有合約（legacy contracts）約束。

When these contracts roll off and we are able to re-contract at spot market rates, we expect to achieve further savings on well costs of approximately 10% to 12%. As you can see on slide 8, titled High Return Locations Drive Value Creation, these additional savings will result in increases to our rate of drilling economics of approximately 10 to 15 rate of return points.

當這些合約到期、且我們能以現貨市場費率重新簽約時，我們預期單井成本可再節省約 10% 至 12%。如投影片 8（標題為「High Return Locations Drive Value Creation」）所示，這些額外節省將使我們的鑽井經濟性報酬率提高約 10 至 15 個報酬率點。

Moving on to the regional gathering pipeline, I want to provide everyone with a status update of the project, and discuss the impact of the pipeline, and what it will have on our bottom-line cash flow. Based on the current status of the project today, we expect the pipeline to be placed into service in early December of this year. To help understand what this means for Antero, I'll refer you to slide 9, entitled Projected Incremental EBITDA from Regional Gathering Pipeline in the Service.

接著談到區域集輸管線（regional gathering pipeline），我想向各位提供該專案的最新進度，並討論這條管線的影響，以及它將如何影響我們的最終現金流。依據目前專案進度，我們預期該管線將於今年 12 月初投入營運。為了協助理解這對 Antero 的意義，請參考投影片 9，標題為「Projected Incremental EBITDA from Regional Gathering Pipeline in the Service」。

As you see on the map, on the right side of the page, once the pipeline is operational, this will enable us to shift all Marcellus production that would otherwise flow north to Dominion South and TETCO M2 pricing, instead, move it down the regional gathering pipeline, which will enable us to receive TCO and Nymex-based pricing. Based on the preliminary 2016 targeted development plan, this results in a 650,000 MMBtu per day shift in volumes in 2016, from the inferior markets to the superior markets.

如頁面右側地圖所示，一旦管線開始運作，將使我們能把原本會向北流向 Dominion South 與 TETCO M2 定價點的所有 Marcellus 產量，改為透過區域集輸管線向下輸送，從而使我們能取得以 TCO 與 Nymex 為基礎的定價。根據初步的 2016 年目標開發計畫，這將在 2016 年帶來每日 650,000 MMBtu 的量能轉移，從較差市場轉向較佳市場。

As outlined on the top of the map, you can see the spread between Dominion South and Nymex is $1.04 per MMBtu, and the spread between TETCO M2 and Nymex is $0.96 per MMBtu, based on current 2016 strip pricing. Additionally, as shown in the table on the left side of the page, by shifting the 650,000 MMBtus a day away from Dominion South and TETCO M2 pricing in 2016, and selling it instead at Nymex and TCO, primarily through contracted firm sales, we will realize incremental revenue of more than $160 million, based on strip pricing as of September 30. After incorporating the additional demand and variable costs associated with the regional gathering line, we will wind up with just over $125 million in incremental EBITDA in 2016, as a result of gaining access to this regional gathering pipeline.

如地圖上方所示，依目前 2016 年期貨曲線（strip）定價，Dominion South 與 Nymex 的價差為每 MMBtu 1.04 美元，而 TETCO M2 與 Nymex 的價差為每 MMBtu 0.96 美元。此外，如頁面左側表格所示，若在 2016 年將每日 650,000 MMBtu 從 Dominion South 與 TETCO M2 定價轉移，改以 Nymex 與 TCO（主要透過已簽約的固定運輸/固定銷售合約）出售，則依 9 月 30 日的期貨曲線定價，我們將實現超過 1.6 億美元的增量營收。在納入與區域集輸管線相關的額外需求與變動成本後，因取得該區域集輸管線的接入，我們在 2016 年的增量 EBITDA 將略高於 1.25 億美元。

Before wrapping up, I'd like to briefly touch on our 2016 preliminary production growth target. We continue to receive questions about this growth target, so I first wanted to make a couple of clarifications. The 25% to 30% production growth we have highlighted is growth relative to our 2015 production guidance of 1.4 Bcfe per day. While we are trending towards finishing this year above the 1.4 Bcfe per day guidance, we want to make sure everyone understands that our 2016 target is still based on percentages above our 2015 guidance.

在結束之前，我想簡要談一下我們 2016 年初步的產量成長目標。我們持續收到關於此成長目標的提問，因此我先做幾點澄清。我們所強調的 25% 至 30% 產量成長，是相對於我們 2015 年產量指引的每日 1.4 Bcfe。雖然我們今年的趨勢可能會高於每日 1.4 Bcfe 的指引，但我們希望大家理解，我們 2016 年的目標仍是以高於 2015 年指引的百分比為基礎。

As we mentioned on our last earnings call, we feel very comfortable with our 2016 production growth target, given our inventory of drilled but uncompleted wells, our top-tier firm transport, and a hedge book that insulates us from virtually all commodity price scenarios, and the continued well cost reductions we are seeing today, and expect to achieve in the future. While we understand that we cannot ignore the challenging commodity environment we face today, we feel that we've positioned the business to succeed, and deliver value to our shareholders, for many years ahead.

如同我們在上次財報電話會議中提到的，考量到我們已鑽未完井（drilled but uncompleted wells）的庫存、頂級的固定運輸（firm transport）配置、以及能讓我們幾乎在所有商品價格情境下都受到保護的避險部位（hedge book），再加上我們目前看到且預期未來仍可達成的持續降井成本，我們對 2016 年產量成長目標感到非常有把握。雖然我們理解不能忽視當前嚴峻的商品環境，但我們認為公司已做好定位，能在未來多年持續成功並為股東創造價值。

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

接下來，我把電話交給接線員，進行問答。

(Operator Instructions)

（接線員指示）

Neal Dingmann, SunTrust.

Neal Dingmann，SunTrust。

Hey guys, good morning, this is Will for Neal. Nice quarter. First question, looking at your -- talking about the 2016 growth target. How do you guys see activity shifting, in the current environment, between dry gas, wet? Or focusing on the dry gas Utica in West Virginia or in Ohio?

各位早安，我是 Will，代 Neal 發言。本季表現不錯。第一個問題，關於你們提到的 2016 年成長目標，在目前環境下，你們如何看待作業活動在乾氣與濕氣之間的轉移？或是會更聚焦在西維吉尼亞州或俄亥俄州的 Utica 乾氣？

We continue to see good rates of return in our rich Marcellus, but we also like the dry. So I think we'll see that there will be a shift in the Utica to a little drier, and still about the same BTU levels in the Marcellus. We will juggle back and forth the emphasis, based on regional take-away. So it may be a little more capital spending and a little more drilling over on the Marcellus side, with the regional gathering line that we just described.

我們在富氣 Marcellus 仍持續看到不錯的報酬率，但我們也喜歡乾氣。因此我認為 Utica 會轉向稍微更乾一些，而 Marcellus 的 BTU 水準大致維持相同。我們會依區域外運能力（take-away）在重點上來回調整。因此，隨著我們剛描述的區域集輸管線上線，資本支出與鑽井活動可能會稍微更多放在 Marcellus 這一側。

And then as we wait for more pipe to come into the Utica, and some of our firm transport on ETC Rover will come online, we expect at the end of 2016. And so until then, midway through the year, we will start to fill up our Rex capacity, and perhaps will use other people's capacity beyond what we have. So there'll be a little bit of juggling, but getting a little drier in the Utica, and staying about the same BTU in the Marcellus.

接著，當我們等待 Utica 有更多管線到位，以及我們在 ETC Rover 上的部分固定運輸於 2016 年底上線之前，在年中左右，我們會開始把 Rex 的容量填滿，並且可能會使用他人的容量，超出我們自有的部分。所以會有一些調度，但 Utica 會變得稍微更乾，而 Marcellus 的 BTU 大致維持不變。

Okay, thank you. And then on -- you talked about Stonewall quite a bit. Can you help us get a better idea of what the net cost is for you all to move gas on that system?

好的，謝謝。接著關於——你們談了 Stonewall 很多。你能否幫我們更清楚了解，你們在那套系統上輸送天然氣的淨成本大概是多少？

I think it's in the $0.20 range, let's say, is probably a good estimate there, Will.

我想大概在 0.20 美元左右，我認為這對 Will 來說是個不錯的估計。

Okay, thanks.

好的，謝謝。

All right. Are there any other questions?

好。還有其他問題嗎？

Holly Stewart, Howard Weil.

Holly Stewart，Howard Weil。

Good morning, gentlemen.

各位早安，先生們。

Hi, Holly.

嗨，Holly。

First question, maybe just on the West Virginia dry gas Utica well. Is there a plan to flow test that well? Or are you just going to flow it under restricted rate?

第一個問題，可能是關於西維吉尼亞州 Utica 乾氣井。是否有計畫對那口井進行流量測試（flow test）？還是你們只會在受限產率下讓它生產？

Just flow it under restricted rate. So we have, of course, a frac design. Let me back up and say we are pleased with the way that the drilling went. We've got a lot of experience in drilling deep, high-pressured wells. We have used an extra big rig, extra big high-pressure stack on it. So really didn't see any difficulties in getting the well down and cased, so feel good about that. And so we will be fracking it over the next month or so.

只會在受限產率下讓它生產。當然，我們有壓裂設計。我先補充一下，我們對鑽井過程的表現感到滿意。我們在鑽深井與高壓井方面有很多經驗。我們使用了更大型的鑽機，以及更大型的高壓防噴器組（high-pressure stack）。因此在把井鑽到目標深度並下套管方面，確實沒有看到任何困難，對此我們很有信心。接下來我們會在未來一個月左右進行壓裂。

And the plan is to use a combination of resin coated and ceramic proppant, and we've got our design. So we will frac it. We will flow it back under restricted rate. We definitely don't want to suffer any flow-back of proppant, or crushing. So we will keep it somewhat restricted. And so it will probably be a little bit of time before we begin to see a decline in it (multiple speakers).

計畫是混合使用樹脂包覆砂（resin coated）與陶瓷支撐劑（ceramic proppant），而且我們已有設計。因此我們會進行壓裂，並在受限產率下回排（flow back）。我們絕對不希望支撐劑回流或被壓碎。因此我們會讓它維持一定程度的限制。所以在我們開始看到它出現遞減之前，可能還需要一點時間（多位講者）。

We know, from certain offset wells, we could open it up. We've had a lot of big wells in our time in both plays. And in any of them, you can open it up and get an impressive marquee flow rate. But I think we will restrict it in that 15 million or 20 million a day range.

我們知道，從某些鄰近井（offset wells）來看，我們其實可以把它開大。我們在這兩個區塊（plays）過去都有很多高產井。而在任何一個區塊，你都可以把它開大，得到很亮眼、可作為宣傳的瞬時流量。但我想我們會把它限制在每日 1,500 萬或 2,000 萬左右的範圍。

Great, thank you. And then, I guess, Glen, care to share the AFE on the well?

很好，謝謝。接著，我想問，Glen，你願意分享這口井的 AFE（核准支出預算）嗎？

I think this one has a little bit more science to it, in that we went to straight down first, drilled the pilot portion, so we could see the Utica Point Pleasant, in a vertical sense. So we did high-resolution logs, we did pressure tests, sidewalk cores and so on, so we could fully understand it. And also make sure which exact zone we wanted to go sideways in.

我想這口井的「科學」成分多一些，因為我們先直下鑽進，先鑽了導井（pilot）段，讓我們能以垂直方向去觀察 Utica Point Pleasant。為此我們做了高解析度測井、壓力測試、側壁取心（sidewall cores）等等，以便充分理解地層；同時也確認我們究竟要在那一個精確層位進行水平段鑽進。

So that cost a little extra, to come back up, and then kick off and go sideways. But I think this will be around $15 million roughly, all in. And can we get development wells a few million dollars less than that, that might be possible.

所以那樣會多花一點成本，回到上面，然後再起跳並橫向鑽進。但我認為全部加總起來大約會在1,500萬美元左右。那我們能不能把開發井的成本再壓低幾百萬美元？這是有可能的。

Okay, great, thank you. And then I guess the final one, on the West Virginia dry Utica, is there any intention in 2016 to allocate additional capital there?

好的，很棒，謝謝。那我想最後一個問題，關於西維吉尼亞的乾氣 Utica，2016 年是否有意圖在那裡配置額外資本？

It's possible. It might be a little early. I think we don't expect the rover leg that comes down to Sherwood to come in until mid-2017. So until then, any dry gas that we develop would come, we would probably send through our rich gas system. And not the end of the world, but we'd be sending dry gas through the Sherwood processing complex. There may be some other alternatives, Eureka Hunter and so on, that possibly would connect us more directly, without going through the plant. But we would have to let those considerations unfold.

有可能。不過可能還有點早。我想我們預期那條往下到 Sherwood 的 Rover 支線要到 2017 年年中才會進來。所以在那之前，我們若開發任何乾氣，可能會透過我們的富氣系統送出。這也不是世界末日，但等於是把乾氣送進 Sherwood 的處理複合設施。也許還有一些其他替代方案，像是 Eureka Hunter 等，可能可以讓我們更直接連接，而不必經過處理廠。但我們得讓這些考量逐步發展。

Got it. And last one for me, just on maybe the M&A landscape. It sounds like there's a lot of asset packages out there. Just curious to get you guys' take. And then curious if you'd be an active buyer in this market?

了解。那我最後一個問題，可能是關於併購（M&A）環境。聽起來市場上有很多資產包在出售。想請教你們怎麼看？以及你們在這個市場會不會成為積極的買方？

There are good packages, good properties. Don't think you'll see us buying a company. That's really not what we do. We've added so much value, just by base leasing. So if there is some leasehold that would appeal to us, we might approach it that way.

確實有不錯的資產包、不錯的物業。我不認為你會看到我們去買一家公司。那真的不是我們的做法。我們光是透過基礎租賃就創造了很多價值。所以如果有某些租賃權（leasehold）對我們有吸引力，我們可能會用那種方式去接觸。

Thank you, guys.

謝謝各位。

Brian Gamble, Simmons & Company.

Brian Gamble，Simmons & Company。

Morning, guys, and good quarter.

早安，各位，這一季表現不錯。

Morning.

早安。

First wanted to chat on the production. You mentioned the production growth for next year. Wanted to focus a little bit more short-term, if I may. To start, I think last quarter, you talked about the expectation that Q3 might be a slight down-tick, and then we'd see an uptick in Q4, obviously outperform that in Q3. Anything that shifted? Should we still expect Q4 to be a slight uptick in the production arena?

我先想聊一下產量。你們提到明年的產量成長。我想如果可以的話，把焦點放得更短期一點。首先，我記得上一季你們談到預期第三季可能會小幅下滑，然後第四季會回升，顯然也會比第三季好。有什麼變化嗎？我們是否仍應預期第四季在產量面會小幅上升？

Yes, I think Q4 will be pretty flattish. We accelerated some completions in the Utica, just due to great performance out in the field, and I think that's probably what drove outperformance in the third quarter. So no, I would not expect a big uptick in the fourth, in the overall net basis.

是的，我認為第四季會相當持平。我們在 Utica 加快了一些完井，主要是因為現場表現非常好，我想這大概就是第三季優於預期的原因。所以不，我不會預期第四季在整體淨額基礎上會有很大的上升。

Great. And then when you talk about the production growth, appreciate the clarification that it's off the 1.4 guidance. When you mentioned the [ducts] are part of that plan, and maybe the moderation of some of those ducts, we go through the year. Exactly -- walk me through that? What is based into that? How many ducts, to get to that 25% to 30% are you expecting to draw down during 2016? And maybe if you wanted to touch on the total CapEx level that you're forecasting within that growth range, that might be helpful, as well. Just any true-ups on that, from the last time you talked about it?

很好。那談到產量成長時，也謝謝你澄清是以 1.4 的指引為基礎。你提到 [ducts] 是計畫的一部分，且在一年當中可能會對其中一些 ducts 做節奏上的調整——可以帶我走一遍嗎？那裡面到底包含了什麼？為了達到 25% 到 30% 的成長，你們預期在 2016 年要消化多少 ducts？另外，如果你願意也談一下，在那個成長區間內你們預估的總資本支出（CapEx）水準，會很有幫助。相較於你們上次談到時，有沒有任何需要校正（true-up）的地方？

Yes. As part of that, you'll see 50 to 60 uncompleted wells get completed, starting around year-end, most likely. We're seeing continued improvement in frac cost, from the quotes that we're seeing out there. And so we're looking to get started on that. I don't think we'll do them all in a couple of months. We will spread it out throughout the year. So I think you'd see us running probably eight or nine frac crews throughout the year, next year, to work that duct portfolio, if you will.

有的。作為其中一部分，你會看到大約 50 到 60 口未完井會被完井，最可能從年底左右開始。我們從目前拿到的報價來看，壓裂成本仍在持續改善。所以我們希望開始推進。我不認為我們會在幾個月內全部做完；我們會把它分散到整個年度。因此我想你會看到我們明年全年大概會運行 8 到 9 組壓裂隊，來處理那個 ducts 組合（如果你要這麼稱呼的話）。

And then as far as capital, it has been a moving target, to our favor, of course, which has been terrific. And I think relative to what we said a few months ago, in the last quarterly call, we'd expect to see our drilling completion capital in line with this year's actual numbers. So we don't expect to see an increase there, and maybe a slight decrease, in order to hit that kind of production growth for next year.

至於資本方面，它一直是個移動的目標，而且對我們有利，這當然很棒。我想相較於幾個月前、上一次的季度電話會議，我們預期鑽井與完井資本支出會與今年的實際數字大致一致。因此我們不預期會增加，甚至可能略為下降，但仍能達到明年那樣的產量成長。

Great. And then on the NGL side, we seem to have at least some moderation in the down-tick that we've seen throughout 2015, from a realization standpoint. Any reason to believe that we're getting any better, as we walk into the winter? Theoretically, seasonally, we should. Anything out of the ordinary that helps that, as we walk into 2016?

很好。那在 NGL 方面，從實現價格（realization）的角度看，2015 年一路下滑的幅度似乎至少有些趨緩。有沒有任何理由相信，進入冬季後情況會變得更好？理論上季節性應該會改善。那在走向 2016 年時，有沒有什麼不尋常的因素能帶來幫助？

No, not out of the ordinary. I think you'd say, if the near-term drilling subsides a little bit in Appalachia, that will back off on the volume and the volume increase. There's a little bit of export that will now go on, with Mariner I, with ranges volumes, to export out of Marcus Hook. So in a sense, draining the surplus a little bit.

沒有，沒有什麼不尋常的。我想可以這麼說：如果阿帕拉契亞地區短期鑽井活動稍微降溫，產量與增量就會回落一些。另外，隨著 Mariner I 啟動，會有一些出口，透過 Marcus Hook 把部分 NGL 出口出去。某種程度上，就是把過剩稍微排掉一點。

So between a little bit decline in drilling, and a little bit of export, can the Northeast markets improve? It is possible. I think the next shoe to drop, really, is at the end of 2016, when Mariner II opens. Because that has a lot of export capacity possibilities. As the market knows, as many know, we have firm capacity on Mariner East II of 50,000 barrels a day. Can move propane, butane, through that, as well as 11,500 barrels a day of ethane.

所以在鑽井略降、再加上一點出口之下，東北市場能不能改善？有可能。我認為真正下一個關鍵點，其實是在 2016 年底 Mariner II 啟用時，因為它帶來很大的出口能力可能性。市場也知道，很多人都知道，我們在 Mariner East II 上有每日 50,000 桶的確定運輸容量（firm capacity）。可以運送丙烷、丁烷，另外也有每日 11,500 桶的乙烷。

But there are possibilities for overflow, and moving more volumes out of Marcus Hook through Mariner II for us, and for other parties. And so will that help drain the bathtub and the surplus beginning really in 2017, that would be when that happens. Because Mariner East isn't expected to come on until end of 2016. But that's where we're looking for some short- and intermediate-term improvements in prices, on the liquids.

但也有溢出（overflow）的可能，對我們以及其他方而言，都可能透過 Mariner II 從 Marcus Hook 把更多量運出去。所以這是否能在 2017 年開始真正把「浴缸」裡的過剩排掉？那會是在那時發生。因為 Mariner East 預期要到 2016 年底才會上線。但這就是我們在液體產品價格上，所期待的短期與中期改善來源。

Great, appreciate that, Paul.

很好，Paul，謝謝你的說明。

Sure.

不客氣。

Kevin MacCurdy, Heikkinen Energy Advisors.

Kevin MacCurdy，Heikkinen Energy Advisors。

Can you guys detail how much new firm transportation and firm sales you have coming online in 2016? And what kind of flexibility you have in filling or potentially releasing any of that incremental capacity?

你們能否詳細說明 2016 年會有多少新增的確定運輸（firm transportation）與確定銷售（firm sales）上線？以及在填滿或可能釋出這些新增容量方面，你們有多大的彈性？

Yes, let us pull out some schedules here, Kevin. Just to start out, while we're digging that out, of course, you always have flexibility in releasing capacity. There are bulletin boards for each pipe. And so you can release for any period of time you want, and you put it on the bulletin board, and people bid on it. And of course, it's either, they're bidding a discount to your cost, or a premium, depending on the spreads across the pipe and how scarce it is. And so that's certainly possible.

可以，Kevin。我們先把一些時程表拿出來。先說在我們找資料的同時，當然你在釋出容量方面一直都有彈性。每條管線都有公告板（bulletin board）。所以你可以針對任何你想要的期間把容量掛到公告板上，讓大家競標。當然，對方出價可能是相對於你成本的折價或溢價，取決於管線兩端的價差以及容量有多稀缺。所以這當然是可行的。

I think another thing I wanted to add is, looking in the rear-view mirror, yes, we've been paying for open space on some pipe. The pipe grows, and our production grows, of course. But there are some pretty good examples. For example, our Rex capacity, where we have been paying, the past number of months, on open capacity on Rex. Buying other people's gas to offset the transport.

我想我還想補充一點：回頭看，是的，我們在某些管線上確實一直在為空置容量付費。管線在擴張，我們的產量也在成長。但也有一些很好的例子。比如說我們的 Rex 容量，過去幾個月我們一直在為 Rex 上的空置容量付費，同時買別人的天然氣來抵銷運輸成本。

But by first quarter, second quarter of this year, all of our Rex capacity, for example, is full. And we will be out there looking at the other opportunities to flow gas out of the Utica. So it's a moving target, that what is open space today fills up pretty rapidly, with the pace of growth that we have on.

但到今年第一季、第二季為止，例如我們所有的 Rex 容量都會被填滿。然後我們會去尋找其他把 Utica 天然氣外送的機會。所以這是一個移動的目標：今天的空間，會在我們目前的成長速度下很快被填滿。

Let's see. So as to a chart, and how much firm capacity we have. Today, we have 2.6 Bcf a day. And through the course of cal 2016, we will move up to about 3.8 Bcf a day. And quite a bit of that capacity is precious, in that we can buy distressed gas in the TETCO M2 pool, and the Dominion South pool, and move it through some of that transport, and pick up a pretty good spread.

我們來看一下。就圖表而言，以及我們有多少確定的運輸能力。今天我們是每天 2.6 Bcf。而在 2016 年曆年期間，我們將提升到大約每天 3.8 Bcf。而其中相當一部分的運能很珍貴，因為我們可以在 TETCO M2 池與 Dominion South 池買入困境天然氣，並透過部分運輸管道把它運出去，從而取得相當不錯的價差。

So there's a very active program here at Antero to -- certainly to fill our unused capacity, and to trade through it, and buy third-party gas. And do everything that we can to offset our transportation costs.

因此，Antero 這裡有一個非常積極的計畫——當然是要填滿我們未使用的運能，並透過它進行交易、購買第三方天然氣，並盡一切所能來抵銷我們的運輸成本。

And you can see that chart on page 34 on the website presentation for AR. You can see the page Paul is referring to.

你可以在網站上 AR 的簡報第 34 頁看到那張圖表。你可以看到 Paul 所指的那一頁。

Great, thanks for the clarity.

很好，謝謝你說明得這麼清楚。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Dan Guffey, Stifel.

Dan Guffey，Stifel。

Good morning guys, congratulations on a good quarter. Just looking, you guys highlighted drilling your driest Ohio Utica well. Was that in your 40,000 net acres that's the dry gas portion? Or was that just west of that mark? And then I guess, is that 40,000 dry portion of Ohio Utica in your 2016 plans? Or is infrastructure still not built out enough, as you move to the East?

各位早安，恭喜你們這一季表現不錯。我想請教，你們特別提到鑽了你們在俄亥俄 Utica 最乾的一口井。那是在你們 40,000 淨英畝的乾氣區塊內嗎？還是就在那個界線以西？另外，我想問，那 40,000 英畝的俄亥俄 Utica 乾氣區塊有納入你們 2016 年的計畫嗎？還是當你們往東移動時，基礎設施仍然還不夠完善？

I'd have to look at the map, but I'm going to say that Laura Ditch is right on the border. It's roughly in the 40,000 acres of dry gas that -- yes, it's borderline. It's at around 1,130 BTU. We are looking at a map here, Dan. So it's on the up-dip edge of the 40,000 acres of dry-ish gas that doesn't need processing. And so yes, infrastructure is coming along.

我得看一下地圖，但我想 Laura Ditch 就在邊界上。大致位於那 40,000 英畝的乾氣區塊內——是的，它在邊界附近。它大約是 1,130 BTU。我們正在看地圖，Dan。所以它位於那 40,000 英畝偏乾、且不需要處理的乾氣區塊的上傾端邊緣。因此，是的，基礎設施正在逐步到位。

We will be able to produce a lot of those dry pads. But as I just mentioned in the answer to the that last question, we will be filling up our Rex by first or second quarter, with completing the wells that are underway right now. And so the infrastructure will lead into other people's transport, as well as TETCO. And so that's why the emphasis will be, move over and drill a little bit more Marcellus during cal 2016.

我們將能夠生產很多那類乾氣井場。但正如我剛才在回答上一個問題時提到的，我們會在第一或第二季先把 Rex 的運能填滿，方式是完成目前正在進行的那些井。因此，基礎設施將會銜接到其他人的運輸管道，以及 TETCO。也因此，2016 年曆年的重點會是轉過去多鑽一些 Marcellus。

Okay, thanks for the color. And then can you talk about maybe your appetite -- and if you've had any discussions -- regarding a Pennsylvania acreage swap and/or sale?

好的，謝謝補充說明。接著你能談談你們對於——以及你們是否有任何討論——關於賓州（Pennsylvania）土地的互換和／或出售的意願嗎？

Our appetite? It's extremely good acreage, and there's drilling all around us. Rice, EQT, others surround us. So it is very good. We have just a couple of wells that we drilled years ago there, before we shifted our focus to West Virginia. They had very high -- the metrics we look at, of course, are EURs and Bcf per thousands. We did those completions in the old style, 400 foot plus stage lengths, and still had very good wells. So know it's highly prospective, well blocked up, good term on it.

我們的意願？那是極佳的區塊，而且我們周邊到處都在鑽井。Rice、EQT 等公司都在我們周圍。所以那裡非常好。我們只是在多年前在那裡鑽了幾口井，之後我們把重心轉到西維吉尼亞。那些井的表現非常高——我們看的指標當然是 EUR 與每千英尺的 Bcf。我們當時用的是舊式完井方式，單段長度 400 英尺以上，但仍然有非常好的井。因此，那裡前景非常好、區塊連片完整、租約期限也很好。

So would we trade or sell? It's possible, but there is no movement underway, right now, to do that. It's in good shape, and we are patient, so we'll -- we may get to drilling it as the regional gathering lines come in. There's a way to actually move that gas south, to the same destination that our West Virginia Marcellus gas goes. So definitely has value there that it can come to the better markets, beginning in a month.

所以我們會互換或出售嗎？有可能，但目前沒有任何正在進行的動作。那塊資產狀況良好，而我們也有耐心，所以——隨著區域集輸管線進來，我們可能會開始鑽。其實有方法把那裡的氣往南送到與我們西維吉尼亞 Marcellus 天然氣相同的目的地。因此它確實有價值，因為它可以進入更好的市場，從一個月後開始。

Okay. And I guess last one for me. And I think I know the answer, but I'll ask anyway. You guys -- obviously, you've highlighted, you guys have one of most comprehensive hedge books in the entire industry. And I know this would go against any kind of business philosophy that you guys have. But is there a price where you would monetize any portion of your hedges, particularly when you look out to 2020, 2021? Or any of those later-dated hedges that are extremely valuable at the current strip?

好的。我想最後一個問題。我覺得我大概知道答案，但還是問一下。你們——很明顯，你們強調你們擁有全產業最全面的避險部位之一。我知道這可能違背你們一貫的經營理念，但是否存在某個價格水準，讓你們會將部分避險部位變現，特別是看向 2020、2021 年？或是那些在目前遠期曲線（strip）下非常有價值的較長天期避險？

I think we would say, never say never. But I think we will probably give you the answer you were expecting, Dan, which is, we just haven't done that before. We just keep it simple. We've only done straight swaps, no collars or three-ways or anything. And we've left those in place.

我想我們會說，凡事沒有絕對。但我想我們大概會給你你所預期的答案，Dan，也就是我們以前從未這麼做過。我們一直保持簡單。我們只做單純的 swap，沒有 collar、three-way 或其他結構，並且一直把它們保留著。

When you look back in history, those that have yanked their insurance policy, so to speak, when they yank their hedges, sometimes they -- mostly, they live to regret it. So I think we're probably going to keep them in place

回顧歷史，那些把保險單拉掉的人——也就是把避險撤掉——有時候他們——多半最後都會後悔。所以我想我們大概會繼續把它們保留著。

Yes, I think a lot of analysts incorrectly look at our hedge book as just a financial position, a trading position. We've never taken any hedges off. That's why I made the comment earlier, that you should really look at our hedges as a forward sale. We are just selling our production forward when we like the prices, and we tend to go out further than most other producers. And we're reaping the benefits of that today, in a down market.

是的，我認為很多分析師錯誤地把我們的避險帳本只看成一個金融部位、交易部位。我們從未解除任何避險。這也是我先前評論的原因：你應該把我們的避險視為遠期銷售。我們只是在我們喜歡價格時把產量做遠期出售，而且我們通常會做得比大多數其他生產商更長天期。而在市場下行時，我們今天正享受這樣做的好處。

Thanks for all the detail, guys, and congrats on a good quarter.

謝謝各位提供這麼多細節，也恭喜你們這一季表現不錯。

Thanks.

謝謝。

Thank you.

謝謝。

Jeoffrey Lambujon, Tudor, Pickering, Holt & Company.

Jeoffrey Lambujon，Tudor, Pickering, Holt & Company。

Good morning. Appreciate the color on the optionality of fill volumes, or I guess excess capacity next year, with third-party gas. Is there any more detail you can provide, in terms of much excess capacity, I guess mitigation you are targeting next year? I know it's price dependent, but any advantage or thoughts around expectations would be helpful.

早安。感謝你們補充說明明年以第三方天然氣填補量（或我想是超額運能）的彈性選擇。就你們明年目標要緩解多少超額運能而言，還能提供更多細節嗎？我知道這取決於價格，但任何優勢或對預期的看法都會很有幫助。

We will guide to that when we come out with guidance later. But I don't think we are really prepared to give you guidance on that today. But it's -- we think it's all very manageable.

我們在之後發布指引時會對此提供指引。但我不認為我們今天已經準備好就此給你指引。不過——我們認為這一切都非常可控。

All right, thank you.

好的，謝謝。

Thanks.

謝謝。

This concludes our question-and-answer session. I would now like to turn the conference back over to Mr. Kennedy for closing remarks.

我們的問答環節到此結束。現在我想把電話會議交回 Kennedy 先生作結語。

Thank you for participating on our call today. If you have any further questions, please feel free to reach out to us. Thanks again.

感謝各位今天參與我們的電話會議。如有任何進一步問題，歡迎隨時與我們聯繫。再次感謝。

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

本次電話會議到此結束。感謝各位參加今天的簡報。您現在可以掛線。