Antero Resources (AR) 27 Jul 232023 Q2 Earnings call transcript

Greetings, and welcome to the Antero Resources Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] And as a reminder, this conference is being recorded.

It is now my pleasure to introduce to you, Mr. Finance. of VP Krueger, Brendan Thank you, Mr. begin. Brendan, you may

operating joining Thank second Antero's a for minutes financial Q&A. for it we'll call. you. morning, thank few and the through Good us going and quarter up spend then open for We'll you highlights, XXXX conference investor

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

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

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

to turn will now I call the Paul. over

XXXX the the Thank number slide momentum a first comments quarter, quarter you, operationally, Efficiencies. in a averaged the per three second and day the exhibited titled, in quarter. XX% my out I'll strong to After quarter. the the plugs Brendan. success drilling process which stage from are and Drill of average improvement Completion the of more increase over than a each record-breaking the second on the XX Completion stages during start the in Drilling horizontal XXXX compared portion levels. of XX% Outs, same well, continued

have XXX up in the times XX% Since the on shown an quarter, completion Faster the during second Drill-outs the outs increase averaged XXXX, just times of levels. days day XXXX in X% the averaged resulted the cycle drill XX% XXXX significantly have our over feet times cycle X,XXX and by from shorter second page. from quarter. decreased average as bottom over per and

reflect a to from fastest takes entire the turning spud our on pad to of total These XXX at days. had company pad cycle first we it on in times average history sales. the cycle times number June, In days the

times stages As capital XX% six during per Highlighting we completion point, wells this cycle higher mean averaged Shorter roughly pad. a efficiency. XXXX. reminder, completed XXXX six the first of our of months budgeted visit per we

titled let's to number continue four, to slide peers. Wells outperform Antero Now, turn

the records, trends we continue on In this and well increases highlights our productivity drilling productivity. to in addition peers see completion slide XXXX. since to well versus Chart

time. page, Antero's per the on with its well the cumulative deliver than peers, from best acreage Antero already illustrated each production long their companies life higher many As core this inventory results continues is drilled equivalent This average peer our average to XX% differentiates over having year. stronger

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

lower Our XX% gas right-hand chart production capital year-over-year. maintenance driven page operational efficiency capital growth was currently by gains we capital our as the liquids growth while XX% natural side in efficiency on gains was the D&C driven reduce by flat in of the budget expect also illustrated These alone. essentially XXXX

too suggest year's To capital the further come service that clear, level rollover but those potential production early to for costs for lower increased our be assume XXXX service XXXX in in next be assumes will reductions to we capital today. maintain the costs a there fruition outlook budget, that it's could

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

Paul. Thanks,

remember is it that for as is the second important While of quarter percent are NGL WTI low CX+ prices weak a historically to currently prices.

petrochemical Chinese seasonal XXXX second of demand emerging we normal moderation market in see from into the supply XXXX tailwinds to rig in and further into half drivers and basins. liquids-rich reductions the Moving due upside

of days has propane half This although the that throughout with the first remained absolute inventory supply Starting same during have generally of levels X-year been period. range elevated are market XXXX, to the degree Propane, higher exports trending stock levels a within petrochemical the the demand. that also primarily substantial to experienced growth necessary current has large but domestic the indicates US in support

XXX,XXX Turning million we total day approximately averaging or to barrels consistent the number XX% higher barrels highlighted This XXXX on than X per exports same seen throughout period with propane day exports X.X year. propane slide which are US have year-to-date. strength is last per

per or Propane facility XXXX. according exports domestic late barrels should quarter months weekly the X.X propane second also Coast PDH reached market data. heating the of million new dehydrogenation the the EIA is demand the into a June Gulf from improve in to as in high and day new in up we crop starting followed drying in through that remainder record XXXX a by propane demand seasonal of move coming In

Chinese the to market. Turning

recovery to have economic recent data petrochemical seen in showing headwinds Although, there we various post-COVID been there. points have the improvement some sector

shown $XXX in integrated year-to-date margins metric levels outright May. in per negative from PDH increasing units ton February from improvements Chinese dramatic polypropylene have to almost

in improvement. utilization rates this have with PDH Chinese been Unsurprisingly margin correlated units closely

XX% that on of over number observed year-to-date the during was Operating a improved June frame. lowest rates the first commissioning high higher in PDH new back which from time shown on X quarter during the year have in facility capacity from XXXX, of rate overall slide a highest as reaching

occurs. when talked in uptick PDH the China observed something in demand as well worldwide. is factor over in previous the capacity about We is response petrochemical in sector of the property value as margin believe months utilization the long-term quarters to recovery we and in having spare bullish highlights a improvement, have improves recent This in rapid that and already place

of wanted have gas-focused supply. in rig also highlight in on to but a year liquids-focused has regions. Turning seen attention the rig reductions the There lot basins been to reductions we this

changes for and US liquids-rich total several of in Dropping Counts count titled X Liquids since beginning rig the Key key Rig Basins basins. the XXXX shows number the Slide

We each in are region. of to reduction the on outright decrease rig illustrate basis and showing the a both impact the the magnitude percentage

rate declines There in which is the down have Bakken, SCOOP/STACK, dropped the substantial XX% which been Eagle Ford, XX%. is down which has XX% the and year-to-date

So we needed has overall, by effect tempered reductions still for pricing trend believe is as while US rig global growing of is been growth as XXXX play beyond the and supply the drilling which This the slowdown. ultimately CX+ ahead of out. the we CX+ count the in to presents upside supply market rate look this

to Gas Natural that will Vice Fowler, over of Marketing. President Justin Senior With turn I it

gas Thanks Dave. I'll start with natural comments on the macro.

Markets. X number Peer-Leading to Premium Turning Exposure titled slide to

reminder, natural to including out substantially the our of As sell of we all corridor. a basin LNG gas approximately XX%

the demand LNG transportation firm us Our direct portfolio exposure Gulf to the Coast. with provides growing along

This basis XXXX. increased In $X.XX have the of increase beginning relative improved facility since through reflects differentials can transportation into. directly the which start-up XXXX, Hub anticipation average the TGP-XXX NYMEX in for slide to Henry Hub year. particular, Premiums firm year-to-date. illustrates This our that of realized pricing LNG has see TGP by XXXX feeds the you Henry we to Plaquemine

have the remains local XXXX MVP approval capacity steep Hub our exposure, XXX market exposure pipeline. this significant despite the on basis, has a that day premium Antero with at peers on MMcf to through where a of discount pipeline. significant the nearly recent of majority NYMEX the Meanwhile a to of Henry

was to count back Slide on gas lower call XX the XX relationship prices let's rig discussed quarter and industry rigs. natural Next, discuss that count rig NYMEX conference prices. slide between depicts the in Haynesville. fourth the historical XXXX natural our response We number gas the the in At time February. this Haynesville

Based XX NYMEX communicated expectation to below producers XX rigs. by historical by prices on that in least that basin would an response rigs fall at the $X, when fell we

the today in rig XX count which shown Haynesville reduction is further peak XX% by when slide the home levels. stands looking it This Haynesville in As crews completion XX. is declined driven has the from on point rigs or at

the from Since to declined of XX the XX completion has crew beginning crews. XX% the by year count

on in more on immediate year. rigs downward in have will this a impact completion decrease will supply a the supply drilling this While reduction crews have impact XXXX

The sharp provide support the prices. completion gas expected market natural help with rigs decline US profile crews basin's is and decline to gas combined and steep in drilling to the balance

moderated supply natural demand gas. outlook continue trends shift a toward to to addition In

Let's turn This Burn titled for growth. every increased XXXX has consecutive chart demand slide burn highs. power Power looks record Demand number year set years. to gas new shows XX to that XX natural likely

averaging Despite new the warmer power July softer average. than day per day is which monthly usual or a was Bcf XX over start a the to to Bcf the winter X.X off five-year led to XX% set average than year is higher burn This forecasted record. that XXXX demand

we power yesterday just burn of record over Bcf. daily a In new fact XX hit

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

re-emphasize Thanks Paul Justin. highlights Antero's my peer of each want comments earlier company's made the I'll group XX the our But that number brief program. be I capital under points peer-leading today. on capital results in maintenance efficiency. Slide to

definition efficiency capital volumes must maintenance same By the grew period. capital target program production for actually volumes to or the same higher while ago to production either volume drive X% with capital capital the lower a higher year attempting compared Antero's

volumes target chart per actually of the to the slide This top group's required compares program chart at their X% the the bottom capital slide. capital is maintenance shown of attempted the in group The production. a declined peer our of by when Conversely, Mcfe at the year-over-year. peer

internally we view each down. result million capital both in in million and change up thumb As to production a $XXX a of approximately change day rule of XXX

XXX capital roughly implies by Over have the last year we grew gains which million all efficiency a that maintenance day else million reduced true capital $XXX equal. our nearly

program this CapEx of just peer Mcfe. peers. is group capital Adjusted at natural Against Antero's its would per per averages for significantly below peer the our the gas Antero more volume Mcfe lowest group $X.XX XX% have efficient growth

efficiency. of we to expect lower all be Looking program This the lower Shell assume at levels amount production capital XX% capital a to continues ahead, risk as than with that a timing XXXX raised Ethane the guidance raised we least expect maintain outlook the ethane capital to at on of we production conservative Cracker our production our guidance XXXX to more due also startup.

Lower gas return in our time, shareholders. to committed of with substantial flow remain capital leads free to the capital free cash beyond. which flow higher combined natural returning we cash targets and our policy, the to of At strip XX% same XXXX

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

Thank you, question. line Instructions] proceed Jayaram comes sir. your from Our of with first JPMorgan. Arun with Please [Operator the question

export just levels? inventories first Dave. thoughts potentially has I some do on on normalizing was bullish And what just could into you been question you think winter? you on move propane. highlighted we higher inventory driving if on us see for side as And the Dave, you give the thoughts My Yes. the is how trends wondering, propane

mild the we had. really Well I winter was think the main thing

that with think, about that some I maintenance to call roughly the XX during petrochemical XX barrels inventory the coupled that a we added talked prior maybe level. absolute million million, time on winter

in So strip a of range at you to obviously that out days we're basis. of down close the a supply the five-year if lower on level even middle

that a open remainder. the online the would to exports I the but that I say ships still we through vessels are come on driver strong piece that's of are there's coming yet XX demand So main year continue play lot roughly the see And online, this other to there. arts then using just a the been role buying the think

for drive us So stack though costs this down that export to much higher and there even we will have some see as well. continue tailwinds freight

and maybe add follow-up are strategy. the given get in producers appreciating I thoughts gas prices for just is we're of the XXXX some It on insurance if on Great. the quite my wanted environment market And maybe like XXXX. incremental hedging where LNG Mike an in seems constructive Mike. demand can investors your export it some to gas

for Just a XXXX. your call it on to floor flows get cash --

on hedging looking over we So improvement some strategy? in the Antero see the last add given strip thoughts could weeks? I hedges want And to to pricing get just few

Cal prices you're XXX, natural too There's you Yes. know approaching gas is momentum the XXXX positive on saying we are the market. Paul positive $X. Thanks, as here. XXXX in Arun, are above and XXXX Well futures as

healthy. more LNG and completion following bit we where of tailwind facilities. see is the facilities the following So more declining rig counts for an lowers But a pretty right build-outs counts other that are increased and people as We're give FID and all that factors obviously we industry as signing us we've crew little And demand here supply. that go -- happening in up more [ph]. that's now LNG are will more the covered

such we're seeing setting yesterday's new but systematically we as And then record records higher on touched yesterday's XX power power just burns burn the Bcf.

So have aware shape, is Antero as balance in strong good you're a sheet.

Xx. less Our leverage than is

time. course, success it its patient but ago tailwinds. So the watching pretty had our we hedged carefully of and market and years worked And we've and we're and being at bide

So that's are. we where

Thanks, Paul.

of question next with Truist. comes with the And your from question. proceed Please Bertrand the line Donnes

Morning, guys.

average peers 'XX that 'XX. of to year it the you're starting the the XXXX the see forward? kind could in service give just you then want On expecting dragging that talk Does Could includes? your what and prepared what it from if the just capital XX% on comments full maybe noted use costs maybe end then come chance one you year 'XX. maybe, And program drop you applies down about for it of to on Is additional to a the and of remarks, here. touch is a then drops you

prevent holding out there XX% drop anything 'XX or would it maybe that from there? into is looks what that like So you

Yes.

today's are our cost 'XX efficiency the you no flat reductions It's maintained that. It's less productivity actually about X% need incorporated lateral in feet. or holding well we and service that just grew year-over-year. capital XXXXXX because in the cost So of and

reduction the you math the that's today's when do costs. so at that just And on XX%

lat is lower natural maintenance at continue continue down without add we XX% that be our our any declines cost 'XX and little decline more you production declines, as get actually help. because is base service more steep 'XX as So less 'XX to as and well to capital [ph]. unless than

now. So 'XX right 'XX below was

in you in production that our capital-efficient can capital it lower the and and same amounts. program improve. see to capital growth at see And 'XX extremely 'XX continues with you'll So

That's any to best Does approach that talk the work of great. would some international for just strategy. second maybe to your And structures a agreement maybe make anything one other Or seeing then LNG is your sense about are tolling Antero? pricing? potential for maybe capture you

Yes.

have We production our XX% LNG corridor. goes that of to the

spot down is so such order there significant in to a to exposure and a that lot of pretty be gas market to even really pricing think really basis a result have surprising. premium much just we going player in to So a large attract competition we our and on they're going

we So of that's volumes all exposure our non-earning these, small commitments. but really [ph] course and evaluate really talking to big you're agreements

frame day. $X and for I billion commitment think the that million about one like is over million XXX a tons that's a time

already production to that have don't we So We to the the down all transport make Gulf. the and those all gets commitments. have

to So and spot we'll get gas. buy exposure to sort of our pricing then having to compete

Sounds good. Thanks, guys.

of Please Our David line next from your with Cowen. comes question Deckelbaum with proceed the question. TD

the the is think one you. a little the CapEx in today. into this I for answers Thanks first Mike, to time just just progression on dig I XXXX. guys and wanted for bit

X% employing including you not think maybe can you I deflation. but all we program, bit But, you're understand grew you characterize obviously, were cost a this maintenance a year.

around, have think to put sort how you in you some about bookends gains versus XXXX benefits well itself versus how of XXXX Antero in Some the for wells in of many do those XXXX. guess can and XXXX? But XXXX I of help productivity kind you

Yes.

our feet So, wells in David, because laterals. really lateral I wells to continue mentioned, it's -- lighten

have we'll than a to much we in XXXX a bit longer XXXX, longer. every So in tad year did pretty go

referenced So that's feet. why mentioned to or XXX,XXX I

around to level. to the have XXX,XXX So, did we'll X.X we that this than year feet maintain less, do Bcfe

just that to you well although get but performance come productivity XXX,XXX million wells increased and the so we're the feet well EURs maintaining same of that's have ahead continues be capital required just our And It's later the do the maintain. be less cost XX expectations. and you when that front of more our our to the continue curve elevating on could how shape now, Right as to the productive. not the of end, productivity,

changes ends that Is is management or designs? front being Or choke influenced geology that completion just by

to a that our ,we're just and curve take the that think in throughout life wait-and-see conservative and approach see I well continues the applying of being trying the time. and not throughout and wait

taxes this But number the over follow-up cash you free inflects generation in what you update, think And next as update, talked had that. around think taxes, from especially, on you year in cash be us a cash the Can curve higher. on -- Appreciate just to this about commodity pricing? of I tax that we XXXX, cash going had an you we and some higher. going the you flow paying all burden with give several years, your downdraft last recent kind is

foresee through Yes. cash XXXX. don't We any XXXX in material any taxes in really

out qualification So exposure to us the not any [ph] with for really three And XXXX, next well. prices to kept of in four years. that's the as AMT

So, years. for taxes at cash any three see next we least don't the

Mike. Thanks,

of The Goldman comes next question Umang your Sachs. Choudhary from Please the proceed with question. line with

point of then on questions. made which in provide morning. you would Hi, you as the capital year? into color there, for color for Any give you And question first was that, would well. cost you. you spending My shallow. spending. rate around follow-ups a Can be next XXXX lower the commentary, And And Thank good deflation our decline heading expectations a great can be thank your on land you couple spending us lower any as made. the

Yes.

think our That's where X% course deals seen current are. I completions and service there. have think why drilling than see have completions, it of XXXX. we contracts XX% recent around we've been our really the you On locked to -- I But don't contracts lower in

XXXX. then on capital X% XXXX at XX% it's starting lower a we that that's potential And for talked good XXXX past think XXXX about another versus point than XX% for I to So savings looking there.

decline and shallow as continues to shallow. to our continues just it So lower go

like the winter to rig the pricing of with you kind like lower challenging reductions predictions China, an a here starts it's pick on expect should Great. demand but which you drive could in any it's equation. pricing? inflection think do – you from Any a the in a kind inflection supply – of side inflect from and of US feel that do in can also the of color demand current pricing. terms think LPG can improvement as you the make event And to provide that up It macro in sounds quickly when we from heating,

be couple quarter, will of I into would – Yes, head the Umang, yes. as say, that along. It's a things we fourth happening

As on side. gas Justin the in mentioned comments his

out it the takes counts supply up is to where to time that the to see As over the underwhelmed recently bullish weaker EIA versus that the side starting effect some expectations are still you – several weeks, last side here builds see for the there of rig on propane maybe see that reports just the us. some with of we're have

naphtha I that. and to the past obviously winter naphtha where other spread But now look the But propane start is doing and that at the the look was we how since curve in economic you if this continue still this encourages saw if price propane to of as the summertime just it's at and right Ukraine. a steam war wintertime. head pricing then forward that every that and think propane discounted normal was is things into globally, relative it And –– it's before last been decouples pricing of is naphtha incurring its the war time we different right you winter on seasonal also as the even – cracker now to winter be winter to throughout winter naphtha, relative higher we how the percentages at

my winter Arun's freight not to winter. there's propane in curve. earlier rates outside upside remarks well. maybe this to as then the come And the think this mentioned I question, anticipated down the some as to are forward We in naphtha That's reflected

what to propane to So multiple bit cause should factors low- quite of the curve showing that forward a is upside in relative the today mid-XXs.

you. Very Thank helpful.

with The of Benchmark Chandra question. the question And comes Company. the Please next your proceed from line with Subhasish

just Hey, Mike, the to confirm question. to your response cost

XXXX stated as XX% could expected multiple and purely and you've to is So times efficiency occur X% service – cost from in XX% materials deflation? another capital the

wouldn't – lower I forecast trending market that. say not remarks, he that's is talked with about maybe we're the lower But it early in the including rig Paul's There's to where completion count, That's in the that basins. crews potential. seems too it working why that.

Okay. Got it.

the maybe complicated But variables margins. a think Second There's question conditions question non-weather think how naphtha the first can supply is there? from macro is – mentioned getting but far back necessary these demand. get you get some polypropylene Or relationship. the weather macro conditions do you this –winter there? quarter? to prices equally do you There's of – are – us you we absolutely weather think other to in Do saw the

certainly liquids-rich I the we supply -- basins think I -- that in just get mean Yeah. you there the talked can reductions on about.

-- up so there get talk ramp capacity winter. PDH ramp a certainly There's get you activity. there -- starts without as up sector can excess -- much normal we there to property China could I to their You that mentioned available that's having

don't expect watch year after we'll So continue after Obviously, things. you have those year. a winter mild year to to

So pick the rely certainly starts will. for that as help to the nature, the ultimately if have there move on anticipated as to up we into demand as from but XXXX potential through we there's mother some don't you well

Got it.

think me. Okay. production basins expected running other your And -- in it's the liquids required for running or what processing you behind, or be? you liquids-rich think at one Do look you will capacity running production When growth maybe a there? just final thoughts sort what's Marcellus of ahead

in Appalachian just seeing Sorry, we're been... about plants that's plant processing asking the or with the additional you're of some there capacity what Basin

you surprised that the Has yeah. upside expected? to has it or Correct, been

being produced of driver actually bit a I the and I there's really. at we Not in that. mean been little the of I this growth think when look has primary year -- been think basin, what's Antero

to who's one maybe more on acreage you maybe spare capacity processing just able location, it. because capacity not in doesn't is a mean So drilling certain while rich utilize -- producer have that

the plant another a well part to else more maybe of somewhere build plant have it's basins in at sometimes ideal. another you the So

the don't beyond we really talked getting outside to in haven't region growth we coming additional going processing that's that seen So the plants substantial plant built in expect own of given online. the our They're to one just growth, or know would the region about and activity. see see much

it. Got Thank you.

Thanks, Subhasish.

from Securities. with And with line Please your of Mizuho the Kumar proceed Nitin question. the comes question next

Thanks for taking too XX% a But question. it's the keep my in I terms early. Not to on side. you cost just the to beating But service dead and mentioned X% appreciate components, are right of crew you weakness or the movement the trends different what seeing day in rates on terms of you ticket price like prices? Are big seeing items price or now? horse

Yeah, that's our that's X% coming really the where compared and levels. XX% is to current to from

recent done to through deals So see we than at we're how that's XX%. we're where XXXX. right in up That's come locked we lower now a X% that with bit being

can you And is XXXX or contracting current your us remind you into what XXXX? running for even services? Are through

first and of quarter end the throughout rigs expiries are third kind quarter Completions but XXXX, XXXX. of then intermittent of XXXX

can a or should similar year? we of Are that I expect seeing more Got don't opportunity on next I inventory and of you enough spending? year. you but that to $XXX you kind this in Any I for if XXXX level we Should one it. land spend that And in. expect that question, answered million drop thoughts sneak had think know if replenishment, XXXX?

success finite locations of current possible drop year them act we Yeah, efficient plan most on opportunities, will same and we year and they're right probably the the that those development amount next had But because adding this and opportunities. we've will is acreage we beyond. the our as level if have inventory next our the it consolidating just But position. are to of

at the lower in million $XX $XXX we will million much typical more So range. to probably looking project and

Thanks questions. answering my Great. for

from of next question. proceed Please the comes Brody America. with Gregg question with And the of your line Bank

know but your year, may question production impacting Hi, this and mode good a that I how you are thoughts the grow think appreciate thoughts but today hear what better your of a just end online answer ability there looking Valley with to the just to this potentially to be your about Mountain time? progress today that? your for love macro how difficult curious pipeline coming over on I morning and guys. maintenance

because it the We study Northeast before Gregg the Friday of Southeast Monday, it to the cannot and prices demand pipeline. cost to a down of the really basis interesting. versus get or Yeah, that further was surprised some down Friday MVP volumes the on in that took expansions centers of MVP actually did more announcement just the without

So need to the pricing Northeast we the didn't you affect And or the it basin. really outside have all know basis. transport outside of NYMEX as we pricing get

the to through is this So I don't by guess Justin think chose an XXXX. of off it unlock growth really local and local bit highlighted pursue that would a our on I grow. as if has I it basis but we slide, not we're mean, pricing $X impact still on ability local to little really attracted NYMEX prices

not to that's us. attractive So

maintenance continue are we to capital fill liquid So on we at efficient and acreage, as still focus as our capital. our focus on being transport, being

I it. Thanks for the presentation appreciate guys.

Energy And Please question. Partners. Kevin Pickering with your with the proceed next comes from question line MacCurdy of the

guys. couple free on the good A the flow cash of Hey morning press questions comments release. in

free you expecting the are better Or now of clarify, back that to the positive? of comment half result the to the year full Just cash that at is XXXX looking just production? be And is a flow year?

positive year, today's No, on a bit we strip. full are

you bought was the I can forecasted shares I the see quarter. there free some flow? surprised you on stock Great. this And guess, your And a then as to back question to comment guys buying timing? on is back be certainly with now. strategy how looks shares maybe you are buyback follow-up, comfortable opportunity cash of ahead an

we this any but a on to in occurred it buying cash our We're instead typically of perspective we tax just the the quarter in generation second the be going flow shares. back -- buy don't back to not instead time we We with we're chose if comfortable that. chose vesting, free buyback the those in from cash have issuing equity not shares quarter, -- that

Got you. the for you Thank clarity.

is TD the proceed. Cowen. from next Please question And follow-up Deckelbaum with David a

one wanted just sneak in I guys. here. more Hey, to

think around Just And have moving investment you facility that? think the like operations if some the And or of commenting you of or moving critical think coming sheet. as goals LNG is internally some sourcing curious how about you on back of this explicit informing again the towards you how and just balance of now things draws especially to like forward the rating this right you're at agencies? point how counterparties grade

being investment We're away grade. Yes. upgrade from one

from were the grade three on watch. one the BB+ others investment of are positive and of We one

So if price comes and will XXX I and sometime next investment this assume meaning commodity in be grade we would deck realization XXXX that beyond to year. that

kind our is are. in and efficient are sheet So low of size scale development an where of costs and our our it's how we how and just balance outcome

it's it there. in realize to So -- it results. would future should if And our that's to prices hang come be and the goals something but not then positive transactions commodity for our required financial realize

there. back Thanks fit me in for

follow-up from the is with Subhasish Please Chandra Benchmark The Company. question next a proceed.

how have The balance Any completely guidance quarter Are And quarter really a had the unpredictable now. point? year? budget. this of you think us give before. sort at another do -- The much. didn't Yes. can quarter change the Or then you very opportunities? is the strong I color last-minute didn't land these XXXX you I of strong of think

XXXX. First, I'll talk about

the quarter first in had second is $XX million our $XXX think million. million $XX in the I guidance we

and would on million $XX pace. we're that quarter suggest a that So

leaked the opportunities quarter. think little that second on. well as last behind we bit a those A momentum I a There that that the of of closed first year in lot quarter. we into was of saw lot acted

But $XX about talk a we generally expect typical of to rate right to million that's And following million year million quarter. it's just land $XX the and that how run that's more that now $XX $XXX quarter have. your like budget we years next a typical million and $XX million we

color. Thank helpful That's you.

to the no further And are questions. over closing for Brendan any there floor comments. time this to At like I'd now turn back

a today's day. joining us for you call. with questions. Thank Have reach any Yes. out for further good Please

today's concludes that gentlemen and Ladies conference.

this and Thank a time. your you at lines You may your have for great disconnect day. participation