Antero Resources Corporation (NYSE:AR) Q1 2024 Earnings Call Transcript

Michael Kennedy: Yes. So on your first question on Project Canary, we do see that going across all of our fields. We’re up to 2 Bcf a day. So it’s about 2/3, maybe around 50% of the field on a gross basis. So, overtime, we do see it continuing to build that out across our entire field. On the emissions, we’re getting close to being as low as we can. We’ve eliminated probably about 85% of all our new mag devices and have done all the valve control work that is necessary to limit the emissions from there. So we’re getting as close as we can. We ultimately think we will get down in 2025 into the 225,000, 250,000 metric tons level that we need to offset, and that’s why you saw us commence with our project to offset those emissions through our stove top, cook stoves in Ghana initiative.

Operator: Our next question comes from the line of Subhasish Chandra with Benchmark.

Subhasish Chandra: Back to Plaquemine and TGP 500. So obviously, the forwards are showing the scarcity of gas beginning with full ramp in the LNG facility. How do you see that being addressed and over what time frame? Is there absolutely no chance of having incremental capacity there over the next couple of several years that, that premium shows in the strip?

Justin Fowler: There could be other volumes drawn to that area. Just depending on the basis spreads and the premiums. That corridor has a lot of pipes that traverse west to east, filling that Southeast power generation load, et cetera. So I think to Mike’s point earlier, it just depends on the competition of need seasonally and monthly. If global spreads and global pricing are spiking, then you would assume that the competition will increase. There is a finite amount of gas that can get into those areas. So Antero, when we started picking up that capacity years ago or at least putting the contracts together prior to in-service date, we knew at the time that to get physical gas on the 500 leg, it is a challenge to get volume over there just with the market pull in the Southeast. So then you add the new liquefaction facility of potentially 3.4, 3.8 Bcf a day, it just leads to that competition that we expect and volatility and then price premiums.

Operator: There are no further questions in the queue. I’d like to hand it back to management for closing remarks.

Brendan Krueger: Yes. Thank you for joining us on today’s call. Please reach out if any further questions. Thanks.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.