Antero Resources Corporation (AR) 2018 Q2 法說會逐字稿

Good day, and welcome to the Antero Resources Second Quarter 2018 Earnings Conference Call and Webcast. (Operator Instructions) 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 Head of Investor Relations. Please go ahead.

各位好，歡迎參加 Antero Resources 2018 年第二季財報電話會議與網路直播。(接線員指示) 請注意，本活動將被錄音。現在我想把會議交給財務副總裁兼投資人關係主管 Michael Kennedy 先生。請開始。

Thank you for joining us for Antero's Second Quarter 2018 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. I would also like to direct you to the homepage of our website at www.anteroresources.com, where we provided a separate earnings call presentation that will be reviewed during today's call.

感謝各位參加 Antero 2018 年第二季投資人電話會議。我們將花幾分鐘回顧財務與營運重點，之後開放問答。我也想請各位前往我們網站首頁 www.anteroresources.com，我們提供了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 管理層將作出前瞻性陳述。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中所表達、暗示或預測者存在重大差異。

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

今天的電話會議也可能包含某些非 GAAP 財務衡量指標。請參閱我們的財報新聞稿，以取得關於此類指標的重要揭露資訊，包括與最可比 GAAP 財務衡量指標之調節表。

Before I turn it over to Paul, I also quickly want to provide a brief update on the review of potential measures to enhance Antero's valuation.

在我把電話交給 Paul 之前，我也想快速就提升 Antero 估值之潛在措施的檢視提供一個簡短更新。

As we have mentioned, a Special Committee of independent directors of our board, in conjunction with legal and financial advisers, is conducting this review and working with the Special Committees of Antero Midstream and Antero Midstream GP boards and their advisers. The Special Committees are exploring a full range of options to create long-term value for the stakeholders of all 3 entities, which is a complex process and remains ongoing.

如同我們先前提到的，由董事會獨立董事組成的特別委員會，正與法律與財務顧問共同進行此項檢視，並與 Antero Midstream 與 Antero Midstream GP 董事會之特別委員會及其顧問合作。各特別委員會正在探索各種完整選項，以為三個實體的所有利害關係人創造長期價值；此為一項複雜流程，且仍在進行中。

While substantial progress has been made by the Special Committees, as we stated previously, there is no definitive timetable for completion of this evaluation, and there can be no assurances that any initiatives will be announced or completed in the future as a result of this review.

儘管特別委員會已取得實質進展，但如我們先前所述，完成此評估並無明確時間表，且無法保證因本次檢視而在未來宣布或完成任何措施。

We hope to be in a position to give you an update before the end of the third quarter. As you can understand, we will not be able to address any questions related to this review or discuss it further during today's call.

我們希望能在第三季結束前提供更新。如各位所理解，我們將無法在今天的電話會議中回應任何與此檢視相關的問題或進一步討論。

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 Paul.

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。現在我把電話交給 Paul。

Thank you, Mike, and thank you to everyone for listening to the call today. In my comments, I'm going to highlight our operational execution during the quarter, and provide an update on the 2018 completion schedule. Glen will then highlight several significant second quarter financial achievements and updates to our 2018 guidance.

謝謝你，Mike，也謝謝各位今天收聽電話會議。在我的發言中，我將重點說明本季的營運執行成果，並更新 2018 年完井（completion）時程。接著 Glen 將說明幾項第二季重要的財務成果，以及我們對 2018 年指引的更新。

Let's begin by discussing the efficiency improvements we made during the quarter. Once again, Antero set new quarterly operational records during the second quarter.

我們先從本季所做的效率提升談起。Antero 再次在第二季創下新的季度營運紀錄。

Looking at Slide #3 titled Drilling and Completion Efficiencies. Starting on the top left portion of the slide, in the Marcellus, we held our average drilling days flat at 12 days, and in the Utica, flat at 20 days despite the continued trend of increasing our average lateral length, as seen on the lower left portion of the slide.

請看第 3 張投影片，標題為「鑽井與完井效率」。從投影片左上角開始，在 Marcellus，我們將平均鑽井天數維持在 12 天不變；在 Utica，儘管我們持續拉長平均水平段長度（如投影片左下角所示），平均鑽井天數仍維持在 20 天不變。

During the quarter, we drilled the longest lateral drilled to date in West Virginia at 15,100 feet sideways.

本季我們在西維吉尼亞州鑽出了迄今最長的水平段，側向長度達 15,100 英尺。

Completion stages per day in the Marcellus averaged 5.0 stages per day during the second quarter, including a company record of 5.5 stages per day in the month of April. The trend continues with 6.5 stages per day completed overall, on average, in late July. This compares to 4.6 stages per day average in 2017.

第二季 Marcellus 的每日完井段數平均為 5.0 段/日，其中 4 月單月創下公司紀錄 5.5 段/日。此趨勢仍在延續，7 月下旬整體完井速度平均達 6.5 段/日。相較之下，2017 年平均為 4.6 段/日。

In the Utica, we completed 5.4 stages per day on average, an increase from 5.1 stages per day on average during the first quarter. These improvements are reducing well costs and are ahead of our current budget, which assumes 4.5 completion stages per day.

在 Utica，我們平均完成 5.4 段/日，較第一季平均 5.1 段/日有所提升。這些改善正在降低單井成本，且優於我們目前預算（預算假設為 4.5 段/日）。

As a result of this improvement, we plan to release 2 completion crews during the second half of 2018, as wells are being completed at a quicker pace than the initial development plan. The decision to drop these crews also reflects our commitment to maintaining capital discipline as full year capital spend guidance remains unchanged.

由於效率提升，隨著完井速度快於原先開發計畫，我們計畫在 2018 年下半年釋出（撤出）2 支完井隊。決定減少這些隊伍也反映我們維持資本紀律的承諾，因為全年資本支出指引維持不變。

The quicker pace of the development plan will result in 65 to 75 wells being turned to sales during the third quarter, with an average lateral length of approximately 9,500 feet.

較快的開發節奏將使第三季有 65 至 75 口井轉入銷售（turn to sales），平均水平段長度約 9,500 英尺。

We recently placed into service our largest pad to date in the Marcellus at 14 wells, which follows 2 recent 12-well pads turned to sales in the second quarter. As we continue to increase our pad size and lateral lengths, while making strides in drilling days and stages per day, we expect to achieve further efficiencies.

我們近期在 Marcellus 投入使用迄今最大的井場平台（pad），共 14 口井；在此之前，第二季也有兩個 12 口井的井場平台轉入銷售。隨著我們持續增加井場平台規模與水平段長度，同時在鑽井天數與每日完井段數方面持續精進，我們預期將達成進一步的效率提升。

We also recently achieved our first remote completion, where we located completion crews and equipment on a separate pad from the well pad, enabling improved logistics for completions operations. In the coming quarters, we will conduct our first concurrent operations where we drill -- we drill wells at one end of a large pad, while we complete wells at the other end of the pad, thereby getting to first production much quicker on these 8 to 14 well pads.

我們近期也完成了首次遠端完井（remote completion），即將完井隊伍與設備設置在與井場平台不同的另一個平台上，以改善完井作業的物流。在接下來幾季，我們將進行首次同步作業（concurrent operations）：在大型井場平台的一端鑽井，同時在另一端進行完井，從而讓這些 8 至 14 口井的平台更快達到首次產量。

Turning to well costs. Earlier this year, there was considerable concern over service cost inflation but given the continued efficiency gains by the industry and the constraints that are occurring in the Permian, service costs have recently softened. Additionally, we continued to assess various self-sourcing sand options, which, as the largest component of our well costs, has the potential to save us upwards of $500,000 per well over the long term once we fully implement it.

接著談單井成本。今年稍早市場對服務成本通膨相當擔憂，但鑑於產業持續的效率提升，以及 Permian 地區出現的產能/資源限制，近期服務成本已有所趨緩。此外，我們持續評估各種自供砂（self-sourcing sand）方案；砂為我們單井成本中最大的組成項目，一旦全面導入，長期而言每口井有機會節省高達 50 萬美元以上。

Despite this operational momentum, we are experiencing some production curtailments due to tightness in the local crude trucking takeaway market. Our crude buyers have been challenged to secure adequate numbers of licensed truck drivers and trucks to move our growing crude production.

儘管營運動能強勁，我們仍因當地原油卡車外運（takeaway）市場吃緊而遭遇部分產量限產（curtailments）。我們的原油買家在取得足夠數量的合格持照卡車司機與卡車，以運輸我們持續成長的原油產量方面面臨挑戰。

We expect these curtailments to be temporary in nature as we have recently executed direct agreements with additional companies for additional trucking capacity. The additional capacity will enable us to lift existing curtailments as well as to move the 100,000 barrel plus crude inventory that has built up over the last couple of months.

我們預期這些限產屬於暫時性，因為我們近期已與更多公司簽署直接協議，以取得額外的運輸車隊運能。新增運能將使我們得以解除既有限產，並運出過去幾個月累積的 10 萬桶以上原油庫存。

Currently, there is approximately 100 million cubic feet equivalent per day of production that's under curtailment, including 4,000 barrels a day of NGLs and 2,000 barrels a day of crude oil. With trucking capacity expected to match oil production beginning in September, we anticipate that the production curtailment will be alleviated by the fourth quarter of 2018.

目前約有每日 1 億立方英尺當量的產量處於限產狀態，其中包括每日 4,000 桶的 NGLs（天然氣液）以及每日 2,000 桶的原油。隨著預期自 9 月起卡車運能可與原油產量相匹配，我們預期到 2018 年第四季將可緩解產量限產情況。

In the Utica, 5 horizontal Ohio wells were placed to sales during the second quarter with an average lateral length of 15,900 feet. Antero also set a new company record for the Utica, drilling nearly 5,200 lateral feet in a 24-hour period. Additionally, the 10 Ohio dry Utica wells that were completed at the end of 2017 continue to show strong results, producing 200 million cubic feet a day flat over the first 150 days before exhibiting natural decline.

在 Utica 區塊，第二季有 5 口俄亥俄州水平井投入銷售，平均水平段長度為 15,900 英尺。Antero 亦在 Utica 創下新的公司紀錄，在 24 小時內鑽進近 5,200 英尺的水平段。此外，於 2017 年底完井的 10 口俄亥俄州 Utica 乾氣井持續展現強勁成果，在前 150 天日產量維持平穩於 2 億立方英尺，之後才出現自然遞減。

While we remain excited about the Ohio Utica, we have shifted our second half 2018 development plan to more economic liquids-rich locations in the Marcellus due to the continued strength in liquids pricing. However, our current 5-year plan does include the resumption of drilling and completion activity in the Ohio Utica in 2019.

儘管我們仍對俄亥俄州 Utica 感到振奮，但由於液體價格持續走強，我們已將 2018 年下半年開發計畫轉向 Marcellus 中經濟性更佳、富含液體的區位。然而，我們目前的 5 年計畫確實包含於 2019 年恢復在俄亥俄州 Utica 的鑽井與完井活動。

Now to briefly touch on our 2018 well completion plan. We remain on track to complete approximately 145 wells this year with an average lateral length of 9,700 feet. Due to efficiencies, our completions outpaced our production facilities and tie-in line dates, resulting in capital spend in the second quarter that preceded the production benefit that we will see in the third quarter. As a result, we anticipate a reduction in Antero's quarterly run rate capital spend during the third and fourth quarters of this year.

接著簡要說明我們 2018 年的完井計畫。我們仍按計畫於今年完成約 145 口井，平均水平段長度為 9,700 英尺。由於效率提升，我們的完井進度超前於生產設施與接管管線（tie-in line）的投產時點，導致第二季資本支出先於我們將在第三季看到的產量效益。因此，我們預期 Antero 在今年第三季與第四季的季度資本支出運行率將下降。

Nonetheless, our development plan is forecast to result in strong fourth quarter production, providing momentum into 2019. With that, I will turn it over to Glen for his comments.

儘管如此，我們預估開發計畫將帶來強勁的第四季產量，為 2019 年提供動能。接下來我把時間交給 Glen 發表他的評論。

Thank you, Paul. Good morning. Let me begin with our key financial achievements from the quarter and provide color on the changes to guidance we outlined in our press release issued yesterday afternoon.

謝謝你，Paul。各位早安。我先從本季的主要財務成果談起，並就我們在昨天下午發布的新聞稿中所概述的指引變動提供補充說明。

During the second quarter, net production averaged a record 2.52 Bcfe per day, delivering 15% year-over-year growth and 6% sequential growth, including a record 113,600 barrels a day of liquids. Liquids increased 10% sequentially, reflecting a continued emphasis on developing our liquids-rich acreage. Liquids production included 6,900 barrels a day of oil, 70,500 barrels a day of C3+ NGLs and 36,200 barrels a day of ethane.

第二季，淨產量平均達到創紀錄的每日 2.52 Bcfe，帶動年增 15% 與季增 6%，其中液體產量亦創新高，達每日 113,600 桶。液體季增 10%，反映我們持續著重開發富含液體的資產區塊。液體產量包含每日 6,900 桶原油、每日 70,500 桶 C3+ NGL，以及每日 36,200 桶乙烷。

During the second quarter, Antero's realized natural gas price was $2.83 per Mcf before hedges, representing a $0.03 per Mcf premium to the average NYMEX Henry Hub price. This marks the 16th consecutive quarter that we have delivered pre-hedge natural gas realizations at a premium to Henry Hub.

第二季，Antero 的天然氣實現價格（未計避險）為每 Mcf 2.83 美元，較 NYMEX Henry Hub 平均價格溢價每 Mcf 0.03 美元。這是我們連續第 16 個季度在避險前的天然氣實現價格高於 Henry Hub。

During the first half of 2018, Antero's average natural gas price realizations resulted in a $0.09 per Mcf premium to NYMEX before hedges, highlighting the continued benefits from our strategically advantaged firm transportation portfolio.

2018 年上半年，Antero 的天然氣平均實現價格在避險前較 NYMEX 溢價每 Mcf 0.09 美元，凸顯我們具策略優勢的長約運輸（firm transportation）組合持續帶來效益。

During the third quarter, we also anticipate Rover Phase 2 capacity to be placed into service, which will unlock optionality to reach the favorably priced Chicago and Gulf Coast markets with either Marcellus or Utica gas, further reducing our exposure to local markets.

第三季，我們也預期 Rover 第二期（Phase 2）運能將投入服務，這將釋放彈性，使我們可用 Marcellus 或 Utica 的天然氣進入價格更有利的芝加哥與墨西哥灣沿岸市場，進一步降低我們對本地市場的曝險。

As a result, we are raising our full year realized natural gas price guidance from a range of 0 to $0.05 per Mcf premium to NYMEX to a range of $0.05 to $0.10 per Mcf premium to NYMEX before hedges.

因此，我們將全年天然氣實現價格指引由「較 NYMEX 溢價 0 至每 Mcf 0.05 美元」上調至「較 NYMEX 溢價每 Mcf 0.05 至 0.10 美元」（均為避險前）。

Slide #4 captures the favorable shift in geographic exposure that we anticipate in the second half of 2018. As shown in the chart at the top half of the page, we expect a decrease of 5% of our gas being sold in local markets and an 8% increase in Midwest and Gulf Coast markets combined. As a result, approximately 97% of our gas is expected to be sold into premium markets, enabling us to maintain the exceptional natural gas price realizations we achieved during the first half of the year.

投影片第 4 頁呈現我們預期 2018 年下半年地理市場曝險的有利轉變。如頁面上半部圖表所示，我們預期在本地市場銷售的天然氣占比將下降 5%，而中西部與墨西哥灣沿岸市場合計占比將增加 8%。因此，預期約 97% 的天然氣將銷往溢價市場，使我們得以維持上半年所達成的卓越天然氣實現價格。

Moving on to liquids pricing during the quarter. We realized an unhedged C3+ NGL price of $34.81 per barrel, representing a 44% increase from the prior year quarter. While NGL prices did not keep up with the rise in WTI prices during the quarter, averaging just 51% of NYMEX WTI on an absolute basis, NGL prices remained consistent on a dollar per barrel basis with our guidance early this year.

接著談本季的液體定價。我們的 C3+ NGL 實現價格（未避險）為每桶 34.81 美元，較去年同期增加 44%。雖然本季 NGL 價格未能跟上 WTI 上漲幅度，絕對值平均僅為 NYMEX WTI 的 51%，但以每桶美元計，NGL 價格仍與我們今年初的指引一致。

For the full year, we are reducing our full year 2018 guidance for C3+ NGL prices as a percentage of WTI from a range of 62.5% to 67.5% down to a range of 57.5% to 62.5% due to the delayed in-service date of the Mariner East 2 pipeline.

就全年而言，由於 Mariner East 2（ME2）管線延後投產，我們將 2018 年全年 C3+ NGL 價格相對 WTI 的指引區間由 62.5% 至 67.5% 下調至 57.5% 至 62.5%。

For additional context, if ME2 had been online during the second quarter this year, we would have received a $4 per barrel uplift on our C3+ realized pricing, which speaks to the significant benefit of this project, particularly in the summer months when NGL differentials are typically wider.

補充說明，若 ME2 在今年第二季已上線，我們的 C3+ 實現價格將可每桶提高 4 美元，這凸顯該專案的重大效益，尤其是在夏季月份，因為 NGL 價差通常較大。

We currently forecast ME2 to be operational during the fourth quarter of 2018, but we also recognize that there is a potential for it to be in service before that as they are currently working on repurposing an existing product pipeline to move volumes prior to the final regulatory approval and construction completion of ME2. This is on about a 5-mile segment of ME2.

我們目前預估 ME2 將於 2018 年第四季投入營運，但也認知其有可能在此之前投產，因為他們目前正著手將既有的成品管線改作他用，以便在 ME2 最終監管核准與施工完工前先行輸送部分量。此作業涉及 ME2 約 5 英里的一段。

As shown on Slide #5, propane fundamentals remain strong, with days of supply at the lowest level in 5 years and inventory 12% below the 5-year average.

如投影片第 5 頁所示，丙烷基本面仍然強勁，供應天數處於 5 年來最低水準，庫存較 5 年平均低 12%。

Further, as illustrated on Slide #6, based on strip pricing through the balance of 2018, tightening inventories and increased exports are expected to result in an improvement in C3+ pricing through year-end this year. It is important to note that despite reducing the percentage range relative to WTI, the implied absolute C3+ NGL price based on our updated guidance reflects an increase of $1.20 per barrel at the midpoint relative to our January guidance.

此外，如投影片第 6 頁所示，根據 2018 年剩餘期間的期貨曲線（strip pricing），庫存趨緊與出口增加預期將推動今年年底前 C3+ 價格改善。需要注意的是，儘管我們下調了相對 WTI 的百分比區間，但依據更新後指引所隱含的 C3+ NGL 絕對價格，在中位數上較我們 1 月指引提高每桶 1.20 美元。

The outlook for the second half 2018 ethane pricing also looks positive, with recent increases in Mont Belvieu prices. If ethane remains economically attractive, we have upside to recover volumes during the second half of 2018 up to an average of 45,000 to 50,000 barrels per day. To quantify the pricing impact, a $0.05 increase per gallon in Mont Belvieu ethane pricing would result in $10 million to $15 million in incremental cash flow during the second half of 2018 to Antero.

2018 年下半年乙烷定價展望亦偏正向，近期 Mont Belvieu 價格上升。若乙烷仍具經濟吸引力，我們在 2018 年下半年有上行空間，可將回收量提升至平均每日 45,000 至 50,000 桶。就價格影響量化而言，Mont Belvieu 乙烷價格每加侖上升 0.05 美元，將使 Antero 在 2018 年下半年增加 1,000 萬至 1,500 萬美元的增量現金流。

As you can see on Slide #7, entitled, Leader in Leverage to NGL Prices, Antero is a top 3 NGL producer and was the #1 NGL producer in the U.S. in the second quarter based on numbers released to date.

如投影片第 7 頁（標題為「NGL 價格槓桿領導者」）所示，Antero 為前三大 NGL 生產商之一，且依目前已公布的數據，第二季我們是美國第 1 大 NGL 生產商。

In conjunction with the Mariner East 2 pipeline delay, we are also lowering our full year cash cost guidance for 2018 from a range of $2.10 to $2.20 per Mcfe on a stand-alone basis, down to $2.05 to $2.15 per Mcfe. Net marketing expense guidance for 2018 is unchanged at $0.10 to $0.125 per Mcfe with the second quarter, as expected, reflecting the high point of the year.

配合 Mariner East 2 管線延遲，我們也將 2018 年全年現金成本指引（以獨立口徑計）由每 Mcfe 2.10 至 2.20 美元下調至每 Mcfe 2.05 至 2.15 美元。2018 年淨行銷費用指引維持不變，為每 Mcfe 0.10 至 0.125 美元；第二季如預期反映全年高點。

We expect net marketing expense to trend lower over the second half of this year as production increases, and we begin flowing volumes on the Rover Phase 2 Sherwood lateral.

我們預期，隨著產量增加，且我們開始透過 Rover 第二期 Sherwood 支線輸送量，淨行銷費用在今年下半年將呈下降趨勢。

Now I'd like to briefly touch on our financial highlights for the quarter. Antero led its peer group once again in realized pricing, as you can see on Slide #8, titled, The Leader in All-In Realized Pricing in Appalachia. Antero generated stand-alone adjusted EBITDAX of $335 million, a 25% increase over the year-ago period.

接下來我想簡要談一下本季的財務重點。如各位在第 8 張投影片「阿帕拉契亞全方位實現價格領導者」所見，Antero 再次在同業中於實現價格方面領先。Antero 產生的獨立調整後 EBITDAX 為 3.35 億美元，較去年同期成長 25%。

Stand-alone adjusted operating cash flow was $279 million, 36% higher than the year-ago period, driven primarily by higher natural gas production and favorable liquids prices. As forecasted, we anticipate a return to free cash flow in the fourth quarter of this year, an inflection point for free cash flow that we expect to be sustained throughout 2019.

獨立調整後營運現金流為 2.79 億美元，較去年同期高出 36%，主要受更高的天然氣產量與有利的液體價格所帶動。如先前預測，我們預期今年第四季將回到自由現金流轉正；這是自由現金流的拐點，我們預期此趨勢將在 2019 年持續。

Slide #9 highlights our historical consistency in being a peer leader when comparing stand-alone EBITDAX margin to our Appalachian peer group. Our integrated strategy has positioned Antero as a leader in EBITDAX margin for the past 5.5 years. This outperformance and consistency is a direct result of AR's industry-leading liquids exposure, firm transportation portfolio at attractive markets, our hedged portfolio and integrated midstream business. As a reminder, we are the only U.S. producer that is 100% hedged on expected natural gas production for the remainder of 2018 and all of 2019, and we're hedged at $3.50 per MMBtu.

第 9 張投影片凸顯了我們在將獨立 EBITDAX 利潤率與阿帕拉契亞同業比較時，長期穩定地保持同業領先。我們的整合策略使 Antero 在過去 5.5 年一直是 EBITDAX 利潤率的領導者。這項優異表現與一致性，直接來自 AR 在業界領先的液體曝險、在具吸引力市場的堅實運輸組合、我們的避險組合以及整合的中游業務。提醒各位，我們是美國唯一一家對 2018 年剩餘期間及 2019 年全部預期天然氣產量 100% 進行避險的生產商，避險價格為每 MMBtu 3.50 美元。

In summary, we continue to differentiate ourselves by executing on our long-term strategy. We remain committed to creating value for our shareholders by focusing on our extensive liquids-rich inventory and delivering on our long-term targets, including a declining leverage profile to the low 2s by year-end this year, as shown on Slide #10.

總結而言，我們持續透過執行長期策略來展現差異化。我們仍致力於透過聚焦於我們龐大的富液體庫存並達成長期目標來為股東創造價值，包括如第 10 張投影片所示，在今年年底前將槓桿水準下降至 2 倍出頭。

As shown on Slide #11, titled, Antero Profile To (sic) [Should] Drive Multiple Expansion, this momentum will place Antero in an elite group of just 6 E&P companies that have scale, double-digit production growth, low leverage and generate free cash flow, all of whom trade at a premium multiple valuation relative to Antero.

如第 11 張投影片「Antero 概況（原文 To (sic) [Should]）將推動估值倍數擴張」所示，這股動能將使 Antero 進入一個菁英群體：僅有 6 家具備規模、兩位數產量成長、低槓桿並能產生自由現金流的 E&P 公司；而這些公司相較於 Antero 皆以較高的估值倍數交易。

With that, I'll turn it over -- turn the call over to the operator for Q&A, for questions.

接下來，我把電話會議交給接線員進行問答，回答問題。

(Operator Instructions) The first question comes from Subash Chandra with Guggenheim.

(接線員指示) 第一個問題來自 Guggenheim 的 Subash Chandra。

Question on the Utica for you, Paul, and I think Glen concluded his comments talking about liquids rich, et cetera. I get it's in your 5-year plan, but do you need to reinitiate activity in the Utica at all? Or do you think you can bypass it through more active Marcellus development?

Paul，我想問你一個關於 Utica 的問題；我想 Glen 在結語提到富液體等。我知道這在你們的 5 年計畫中，但你們是否需要在 Utica 重新啟動任何活動？或者你認為可以透過更積極的 Marcellus 開發來略過它？

Yes, I think the latter. I think we have it penciled in for next year, but we're always judging these things based on gas prices and liquids prices. So there's no obligation to go over to the Ohio Utica side, no leases to save, for example. So we have flexibility there.

是的，我認為是後者。我想我們把它先暫列在明年的計畫中，但我們一直會依據天然氣價格與液體價格來評估這些事情。因此我們沒有必須轉到俄亥俄 Utica 一側的義務，例如也沒有需要保住的租約。所以我們在那裡有彈性。

Okay. And does -- are there sort of hooks in the Utica asset that would keep it in the portfolio? Or could it be deemed as noncore if you don't need to develop it?

好的。那麼——Utica 資產是否有某些「鉤子」會讓它必須留在投資組合中？或者如果你們不需要開發它，它是否可能被視為非核心？

Well, we like the inventory, and it still gives us a respectable rate of return. So there are no hooks that would say it's sacred, but it fits in our plan for now.

嗯，我們喜歡那個庫存，而且它仍能帶來不錯的報酬率。所以沒有任何「鉤子」會讓它變得不可動搖，但就目前而言它符合我們的計畫。

Okay, got it. The efficiencies you talked about, just curious if that was really correlated to the larger pads in the quarter? Or are these efficiencies durable if you go to smaller pads -- or if you drill regardless of pad size, yes?

好的，了解。你提到的效率提升，我只是好奇那是否真的與本季較大的井場（pads）相關？或者如果你們改回較小的井場——或不論井場大小鑽井——這些效率是否仍具持續性？

I think we're -- it's both. The larger pads definitely helps. But even for same-size pads, we're getting faster and faster.

我認為——兩者都有。較大的井場確實有幫助。但即使是相同大小的井場，我們也越來越快。

Great. And a final one for me. The midstream expenditures at the AR level, facilities, gathering, et cetera, what is the outlook for that in the second half? Is it also front-end loaded?

很好。最後一個問題。在 AR 層級的中游支出，包含設施、集輸等，下半年展望如何？它也是前期集中投入嗎？

No, the actual midstream facilities are not. That's actually borne by Antero Midstream. They're responsible for putting in all those facilities. So that's more straight line across all the quarters.

不，實際的中游設施不是。那其實是由 Antero Midstream 承擔。他們負責建置所有那些設施。所以那會在各季度之間更接近直線分攤。

The next question comes from Jane Trotsenko with Stifel.

下一個問題來自 Stifel 的 Jane Trotsenko。

Looking at Slide 4, your Midwest exposure will increase from 16% during the first half of 2018 to 23% during the second half of 2018. With [Rover and Nexus] pipelines coming online and then increasing Canadian natural gas production that also targets the Midwest market, how do you think the regional supply-demand dynamics will evolve with this growing gas-on-gas competition, and if you think that Marcellus gas will be able to push out Canadian gas suppliers?

看第 4 張投影片，你們在中西部的曝險將從 2018 年上半年的 16% 提高到 2018 年下半年的 23%。隨著 [Rover 和 Nexus] 管線投產，以及加拿大天然氣產量增加也瞄準中西部市場，你認為在這種日益增加的「氣對氣」競爭下，區域供需動態將如何演變？以及你是否認為 Marcellus 天然氣能夠擠出加拿大的供應商？

Yes. So yes, the reason that more gas is going to go to the Midwest is because the Sherwood lateral portion of the Rover project will finally reach Sherwood processing plant, so we'll move more volume in that direction toward Chicago, MichCon, the Midwest. And yes, if the -- that's what we've seen so far this year, is that Marcellus Utica gas is cost advantaged and so it is pushing gas. So Mid-Continent gas is not coming to Chicago, nor Rockies gas nearly as much or to Dawn over in Ontario. So the Northeast gas is pushing back and displacing gas from Canada, from the Rockies and from the Mid-Continent, and I think it'll continue.

是的。所以，是的，更多天然氣會流向中西部的原因，是 Rover 專案的 Sherwood 支線部分終於會抵達 Sherwood 處理廠，因此我們會把更多量往那個方向、朝芝加哥、MichCon 以及中西部移動。而且是的——我們今年迄今看到的是，Marcellus Utica 天然氣具有成本優勢，因此正在推動（擠出）其他天然氣。因此，中陸（Mid-Continent）天然氣不再流向芝加哥，落磯山脈天然氣也不再像以前那樣大量流向芝加哥或安大略的 Dawn。所以東北部天然氣正在反推並取代來自加拿大、落磯山脈以及中陸地區的天然氣，我認為這種趨勢會持續。

My second question, you have several pipelines now just coming online over the second half of 2018 and early 2019. Could you please remind us the thought process behind which pipelines are going to be filled first?

我的第二個問題是，你們有數條管線將在 2018 年下半年及 2019 年初陸續投產。可否請你提醒我們，決定哪些管線會先被填滿的思考流程？

So we do have several pipes coming on. I mentioned the Sherwood lateral, and so that's an important one for us. We have 3 projects with TCO, so Columbia. There's the eastbound WB line, which goes over to the Washington-Baltimore area. There's westbound WB that connects with our Tennessee to the Gulf. And then there is MXP, which is an important project for us that goes right through the heart of our acreage. And so we'll be -- we project to be filling all of those over the next 15 months or so. We do look on a best netback basis, on a day-to-day basis, our marketing group does. And we also judge third-party marketing opportunities on a day-to-day basis. So we move anywhere from 300 million to 600 million a day recently of third-party gas, where we collect a margin of between $0.30 and $0.60. So we juggle all that, we weigh all that to see what our best netback is going to be and where the opportunities are for filling the remainder with third-party gas until we fill it with our own, which is the longer-term plan.

所以我們確實有幾條管線即將上線。我提到過 Sherwood 支線，這對我們很重要。我們與 TCO（也就是 Columbia）有 3 個專案。其中有向東的 WB 線，通往華盛頓—巴爾的摩地區。也有向西的 WB，與我們通往墨西哥灣的 Tennessee 管線相連。另外還有 MXP，這是對我們很重要的專案，直接穿越我們的核心租地。因此我們預計在接下來約 15 個月內把這些都逐步填滿。我們會以最佳淨回收（netback）為基礎逐日評估，我們的行銷團隊每天都在做。我們也會逐日評估第三方行銷機會。因此最近我們每天移動約 3 億到 6 億的第三方天然氣，並收取介於 0.30 到 0.60 美元的利差。所以我們會在這些之間做調度與權衡，看看最佳淨回收會是什麼、機會在哪裡；在我們用自有天然氣填滿之前，先以第三方天然氣填補剩餘容量，而以自有天然氣填滿則是較長期的計畫。

(Operator Instructions) The next question comes from Sean Sneeden with Guggenheim.

(接線員指示) 下一個問題來自 Guggenheim 的 Sean Sneeden。

Maybe just on ethane. I think you guys studied that potential recovery of, I think, up to 45 a day. What's kind of the threshold on price where it starts to make sense for you guys to start recovering more?

想請教一下乙烷。我記得你們研究過其潛在回收量，應該最高可達每天 45（單位）。大概在什麼價格門檻下，你們開始覺得回收更多乙烷才有意義？

Yes, it's -- so the broad answer would be in the low $0.30 range to the mid-to-high $0.30 range. And so what we're balancing is the local gas value as well. So we have the option to leave ethane in the stream and collect the gas value of the ethane on an MMBtu basis. So as regional gas prices change, that also dictates, and so that's why there's a range there on what the ethane price is because we can choose to leave it in the stream or we can choose to recover it. But that's the broad answer, is anywhere from, say, $0.31 to $0.36 is the threshold for where we can elect to recover it and make a profit.

是的——概括來說，大約在每加侖 0.30 美元出頭到 0.30 美元中後段到高段的區間。我們同時也在權衡當地天然氣的價值。我們可以選擇把乙烷留在氣流中，按每 MMBtu 的基礎去取得乙烷的天然氣價值。因此，隨著區域天然氣價格變動，也會影響決策；這也是為什麼乙烷價格會有一個區間，因為我們可以選擇留在氣流中，或選擇回收。但大致答案是，例如 0.31 到 0.36 美元是我們可以選擇回收並獲利的門檻。

And we've actually capitalized on that a bit recently, incrementally recovering about 7,000 barrels a day in July and August over what we had planned to recover just to capitalize on some high pricing, in the high $0.30 range per gallon.

而且我們最近確實也稍微把握了這個機會，在 7 月和 8 月相較於原先計畫的回收量，額外增量回收約每天 7,000 桶，以利用每加侖 0.30 美元高段的較高價格。

Great, that's helpful. And then just lastly for me, a bunch of your bonds are currently callable. How do you think about potentially trying to refinance some of the front-end maturities? Is that something that begins to make sense? Or is that something that you need to -- or you have a preference to wait until you get to investment grade?

很好，這很有幫助。最後一個問題：你們有不少債券目前都已可被提前贖回（callable）。你們如何看待可能嘗試為一些較前端到期的債務進行再融資？這件事是否開始變得合理？還是說你們需要——或你們偏好等到取得投資級評等之後再做？

No, we're always opportunistic, so that's something we continually watch. And we haven't seen any of them move to the point where we felt like we could execute a bond deal that made sense from an NPV standpoint to pay the premium to call the bond. But we watch that continually. And I think you'll see us do some of that over time over the coming quarters.

不，我們一向把握機會，所以這是我們持續關注的事情。但目前我們還沒看到任何一檔走到我們認為可以執行、且從淨現值（NPV）角度來看值得支付提前贖回溢價來召回債券的程度。不過我們會持續關注。我想你們會在接下來幾個季度、隨著時間推進看到我們做一些這類動作。

The next question comes from Glenn Greenberg with Brave Warrior.

下一個問題來自 Brave Warrior 的 Glenn Greenberg。

Earlier this year, there were Special Committees formed, I guess to discuss the structure of general partnership and the Midstream assets and AR, the exploration company. I'm wondering what's become of those discussions, what was the objective behind having them and the Special Committees being formed? And kind of where did your deliberations take you to this point?

今年稍早成立了特別委員會，我想是為了討論普通合夥（general partnership）的架構，以及中游資產與 AR 這家勘探公司。我想了解這些討論目前進展如何、成立特別委員會背後的目標是什麼？以及你們的審議到目前為止帶你們走到了哪一步？

Well, the deliberations continue, Glenn, and so it's serious discussions. They're very deliberate, and the Special Committees move carefully to make sure that all bases are covered. Each Special Committee has advisers, legal and financial. And the big picture was -- has been simplification, and I think the market has looked and seen which could be combined with which and what levers could be pulled. And so that's been out there, but that's all we can say. Of course, no guarantee that anything will happen but serious discussions continue to happen.

Glenn，審議仍在進行中，因此這些是嚴肅的討論。過程非常審慎，特別委員會也會小心推進，以確保所有面向都被涵蓋。每個特別委員會都有顧問，包括法律與財務顧問。整體方向一直是——簡化，我想市場也一直在觀察哪些可以與哪些合併、以及可以拉動哪些槓桿。所以外界一直有這些推測，但我們能說的就只有這些。當然，並不保證一定會發生任何事情，但嚴肅的討論仍在持續。

(Operator Instructions) I have a question from Kevin MacCurdy with Heikkinen Energy Advisors.

(接線員指示) 我有一個問題，來自 Heikkinen Energy Advisors 的 Kevin MacCurdy。

I saw that you mentioned that you are dropping 2 frac crews in the Appalachian region. I'm wondering what this means for future well cost and if maybe we could see some lower CapEx in the future if operations are more efficient.

我看到你們提到在阿帕拉契亞地區會減少 2 支壓裂（frac）隊伍。我想了解這對未來單井成本意味著什麼；如果營運更有效率，未來是否可能看到更低的資本支出（CapEx）？

Well, the delta really there that you're looking for is just more stages per day rather than the number of frac crews. So we needed fewer frac crews because we front-end loaded our completions partly this year, but also because of that increase, and that was driven partly because of the rate of increase. We had budgeted 4.5 stages per day and now we've seen 5.5, even 6.5 in late July, so we're just needing fewer crews. But for every increase in stages per day on a well, you pick up $90,000 to $100,000 of well cost savings, so that's kind of the magnitude. Yes. If we can average 5.5, say, the rest of the year, we'll save almost $100,000 per well.

嗯，你要看的差異其實主要是每天完成的壓裂段數（stages per day），而不是壓裂隊伍的數量。我們需要更少的壓裂隊伍，是因為今年我們在完井上做了一部分前置（front-end loaded），但也因為段數提升；這部分提升也部分是由增速所帶動。我們原本預算是每天 4.5 段，現在看到每天 5.5 段，甚至在 7 月下旬達到 6.5 段，所以我們只需要更少的隊伍。但就每口井而言，每天段數每增加 1 段，單井成本可節省約 9 萬到 10 萬美元，量級大概是這樣。是的。如果今年剩下時間我們能平均維持在每天 5.5 段左右，我們每口井幾乎可以省下 10 萬美元。

And will you add back crews for next year? Or is this -- kind of the 4 crews will be enough to execute your '19 plan?

那明年你們會把隊伍加回來嗎？還是說——大概 4 支隊伍就足以執行你們 2019 年的計畫？

No, I think we'll be adding back, and we'll make a judgment call as to how many and when. As Glen said, it is an efficiency factor, so we'll see what our current state of affairs is at the end of the year or in the fourth quarter and how many stages we can accomplish per day, and make a judgment call there. But as we get faster and faster, these crews can accomplish more in a shorter amount of time. And the way the contracts are structured, there is a price break. They are covering their baseload equipment, and then as they get more stages off, they make more money, but the price per stage goes down.

不，我想我們會加回來，至於加多少、何時加，我們會做判斷。如 Glen 所說，這是一個效率因素，所以我們會看年底或第四季時的現況、每天能完成多少段，然後再做判斷。但隨著我們速度越來越快，這些隊伍能在更短時間內完成更多工作。而且合約的結構是有價格折讓（price break）的。他們先覆蓋其基本設備（baseload equipment）的成本，之後完成的段數越多，他們賺得越多，但每段的價格會下降。

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

問答環節到此結束。我想把電話會議交回給 Michael Kennedy 先生，請他做結語。

Thank you for joining us on today's conference call. If you have any further questions, please feel free to contact us. Thanks again.

感謝各位參加今天的電話會議。若您還有任何進一步問題，歡迎隨時與我們聯繫。再次感謝。

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

本次電話會議已結束。感謝您參加今天的簡報。您現在可以掛線。