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March 2015 COMPANY PRESENTATION – Range Resources Corp

Range Resources Corp · Mar 26, 2015 · 57 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 1
    March 26, 2015 Company Presentation 1
  2. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 2
    Large Scale Growth Story with Low Cost and Low Risk Focused on PER SHARE GROWTH of production and reserves at top-quartile or better cost structure 1. Largest acreage position in core of Marcellus, Upper Devonian and Utica 2. Unit…
  3. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 3
    Range is Focused on Per Share Growth, on a Debt-Adjusted Basis Production/share debt adjusted Reserves/share debt adjusted 3.00 70.00 2.50 60.00 Mcfe/share 50.00 Mcfe/share 2.00 40.00 1.50 30.00 1.00 20.00 0.50…
  4. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 4
    SW/NE Pennsylvania Stacked Pays Total (1) Wet Dry Net Acreage Acreage Acreage Upper Devonian 330,000 195,000 525,000 Marcellus 330,000 310,000 640,000 Utica/Point Pleasant - 400,000 400,000 660,000 905,000 1,565,000…
  5. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 5
    Driving Down Unit Costs 4.50 4.00 3.50 3.00 /mcfe 2.50 2.00 1.50 1.00 0.50 0.00 - 2008 2009 2010 2011 2012 2013 2014 2015E Reserve 1.64 1.25 0.83 0.68 0.68 0.66 0.59 0.56 Replacement(1) LOE (2) 0.99 0.82…
  6. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 6
    Capital Efficiencies Driving Growth Budget = 870 Million Capital Efficiencies Driving Growth with less Capital 83% Completed lateral lengths in Marcellus 4% 13% expected to be 6,000 ft. in 2015 Drilling Acreage & Seismic…
  7. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 7
    Cost & Efficiency Improvements SW Pennsylvania Average Lateral Length Well Cost/Lateral Length 2,500 6,500 2,200 5,500 1,900 4,500 1,600 3,500 1,300 2,500 1,000 700 1,500 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015…
  8. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 8
    Cost & Efficiency Improvements NE Pennsylvania Average Lateral Length Well Cost / Lateral Length 6,000 2,400 2,100 5,000 1,800 4,000 1,500 3,000 1,200 2,000 900 1,000 600 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015…
  9. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 9
    Disciplined Financial Approach Strong, Simple Balance Sheet Bank debt, subordinated notes and common stock No debt maturity until 2019 (bank) and 2020 (notes) Immediate liquidity of 1.2 billion under commitment amount; 2.2 billion…
  10. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 10
    A History of Strong Credit Metrics EBITDAX / Interest 8.0x Range has a long history of 7.0x disciplined financial 6.0x management 5.0x 4.0x Strong EBITDAX coverage of 3.0x interest expense evidences 2.0x the low cost structure…
  11. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 11
    Long Life Reserves Enhances Credit Profile Proved Developed Reserves / Production With a best-in-class reserve life 18.0x index, Ranges low production 16.0x Range well above the average decline provides more stable 14.0x 12.0x…
  12. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 12
    Gas In Place (GIP) Analysis Shows Greatest Potential in SW PA When GIP analysis from the Marcellus, Upper Devonian and Point Pleasant are combined, the largest stacked pay resource is located in SW PA where Range has concentrated…
  13. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 13
    Additional Upside Utica/Point Pleasant OH PA Record 24 hour IP of 59.0 Mmcf/d at Claysville Sportsmans Club Currently producing 20 Mmcf/day under designed conditions 2 wells planned to be drilled in 2015 400,000 net acres in…
  14. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 14
    Range Marcellus/Utica Acreage Top Tier (Assumes 10% Return) 15
  15. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 15
    Marcellus has Low Break Even Costs From Credit Suisse Report Exploration Production US Upstream Deep Dive dated February 12, 2015, covers only liquids rich projects 16
  16. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 16
    Range Marcellus 2015 Well Economic Summary The different Marcellus areas provide optionality and a balanced approach to developing acreage and growing overall Marcellus production SW Super-Rich SW Wet SW Dry NE Dry 12.9 Bcfe 17.6…
  17. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 17
    Ranges Natural Gas Liquids Provide Revenue Uplift 5.00 Range is the largest NGL /Wellhead Gas producer in Appalachia, 4.50 with the highest Btu inlet 3.95 - 4.05 4.00 gas 3.50 Higher Btu gas receives increased uplift as it 3.00…
  18. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 18
    Significant Natural Gas Demand Growth Projected Beginning in 2015 LONG TERM US NATURAL GAS DEMAND ROADMAP (BCF/D) Cumulative 2015 2016 2017 2018 2019 2020 2015-2020 LNG Exports Sabine Pass 1.2 1.2 0.6 3.0 Freeport 0.5 1.0 0.4 1.9…
  19. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 19
    Gas Production Response May Occur Sooner than Expected 16 Bcf per day of Associated Gas with Oil Plays 8 Bcf per day of associated gas with shale oil plays Capital budgets in oil plays typically reduced by 40-50% Oil rig count down…
  20. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 20
    Range Resources Concluding Summary 1. Largest acreage position in core of Marcellus, Upper Devonian and Utica 2. Marcellus development has driven down unit costs over 40%; capital costs down 57% or more on a per lateral foot…
  21. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 21
    Appendix Portfolio Detail 22
  22. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 22
    SW PA Super-Rich Area Marcellus Projected 2015 Well Economics Southwestern PA (high Btu case) NYMEX 12.9 EUR / 1,000 ft. 2.40 Bcfe Gas Price Bcfe EUR 12.9 Bcfe Strip - 34% (182 Mbbls condensate, 987 Mbbls NGLs, and 5.9 Bcf gas)…
  23. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 23
    Southwest PA - Super-Rich Area 2015 Turn in Line Forecast 3,000 Improvements Between Years EUR Well Costs Lateral (Bcfe) ( MM) Lengths (ft.) 2,500 2014 Type Curve - Drilling 12.3 6.8 5,300 Normalized Mcfe/Day per 1,000 ft. 2015…
  24. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 24
    Southwest PA Super Rich Marcellus Horizontal Length (TIL) Average Number of Stages 6,000 30 5,500 5,000 25 Stages 4,500 Feet 20 4,000 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013 2014…
  25. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 25
    SW PA Wet Area Marcellus Projected 2015 Well Economics Southwestern PA (Wet Gas case) NYMEX 17.6 EUR / 1,000 ft. 2.95 Bcfe Gas Price Bcfe EUR 17.6 Bcfe Strip - 39% (48 Mbbls condensate, 1,453 Mbbls NGLs, and 8.6 Bcf gas) 3.00 - 34%…
  26. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 26
    Southwest PA - Wet Area 2015 Turn in Line Forecast 3,500 Improvements Between Years EUR Well Costs Lateral (Bcfe) ( MM) Lengths (ft.) 3,000 2014 Type Curve - Drilling 12.3 6.1 4,200 Normalized Mcfe/Day per 1,000 ft. 2,500…
  27. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 27
    Southwest PA Wet Marcellus Horizontal Length (TIL) Average Number of Stages 6,500 35 6,000 5,500 30 5,000 25 Stages Feet 4,500 4,000 20 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013…
  28. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 28
    SW PA Dry Area Marcellus Projected 2015 Well Economics Southwestern PA (Dry Gas case) NYMEX 17.1 EUR / 1,000 ft. 2.52 Bcf Gas Price Bcf EUR 17.1 Bcf Strip - 49% Drill and Complete Capital 6.0 MM 3.00 - 29% Average Lateral Length…
  29. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 29
    Southwest PA Dry Area 2015 Turn in Line Forecast 6,000 Improvements Between Years EUR Well Costs Lateral (Bcf) ( MM) Lengths (ft.) 5,000 2014 Type Curve - Drilling 13.4 6.6 5,200 Normalized Mcf/Day per 1,000 ft. 2015 Type…
  30. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 30
    Southwest PA Dry Marcellus Horizontal Length (TIL) Average Number of Stages 8,000 40 7,000 35 6,000 30 Stages Feet 25 5,000 20 4,000 15 3,000 10 2,000 5 2013 2014 2015 2013 2014 2015 Actual Actual Forecast EUR…
  31. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 31
    NE PA Dry Area Marcellus Projected 2015 Well Economics Northeastern PA (Dry Gas case) NYMEX 15.2 EUR / 1,000 ft. 2.67 Bcf Gas Price Bcf EUR 15.2 Bcf Strip - 63% Drill and Complete Capital 4.9 MM Average Lateral Length 5,663 ft.…
  32. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 32
    Northeast PA Dry Area 2015 Turn in Line Forecast 4,500 Improvements Between Years EUR Well Costs Lateral 4,000 (Bcf) ( MM) Lengths (ft.) 2014 Type Curve - Drilling 13.1 4.7 4,800 3,500 Normalized Mcf/Day per 1,000 ft. 2015…
  33. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 33
    Northeast PA Dry Marcellus Horizontal Length (TIL) Average Number of Stages 6,000 30 5,500 5,000 25 4,500 Feet Stages 4,000 20 3,500 15 3,000 2,500 10 2,000 2013 2014 2015 5 Actual Actual Forecast 2013 2014 2015…
  34. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 34
    Results of Marcellus Tighter Spacing Pilot Projects Projects Conducted in the Wet and Super Rich Areas of the Marcellus 3,000 Normalized for lateral length 500 foot spaced wells produced 80% of 1,000 foot spaced wells 2,500 over a…
  35. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 35
    Targeting/Down Spacing Test Results Encouraging AVERAGE NORMALIZED TIME ZERO DECLINE CURVES 3,500 Optimized targeting 3,000 700 ft. shows a 53% increase in spacing cumulative production after 300 days Average Mcfe/Day per 1,000…
  36. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 36
    Marcellus NGL Pricing Weighted Avg. Realized Marcellus NGL Prices Composite Barrel (1) 2014 1Q 2Q 3Q 4Q NYMEX WTI 9% (per bbl) 98.61 102.97 96.99 73.11 9% Mont Belvieu 4% Weighted Priced Equivalent (2) 37.22 33.43 32.14 24.00…
  37. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 37
    Range NGLs Add Cash Flow Range has the highest Btu gas and a large liquids resource base Range has size and scale Range has a competitive advantage in pricing as most large projects require/benefit from Ranges participation Ranges…
  38. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 38
    Takeaway Largely Overbuilt by 2016-2017 50 LNG exports starting in late 2015 40 Appears to have sufficient takeaway capacity by 2016 30 Bcf/d 20 10 0 Appalcahia Consumption Regional Storage Injections Announced…
  39. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 39
    Announced Appalachian Basin Takeaway Projects 1 of 2 Capacity Approved or Northeast PA Operator Main Line Market Start-up Bcf/d Fully Committed with FERC 2014 Northeast Connector Williams Transco NE Q4'14 0.1 Y Y Iroquois Access…
  40. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 40
    Announced Appalachian Basin Takeaway Projects 2 of 2 Capacity Approved or Southwest Operator Main Line Market Start-up Bcf/d Fully Committed with FERC 2016 Gulf Expansion Ph1 Spectra TETCO Gulf Coast Q4'16 0.3 Y Y Clarington West…
  41. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 41
    Appalachia Gas Transportation Arrangements Projected YE 2015 Projected YE 2016 Projected YE 2018 Transport Transport Transport Mmbtu/day Mmbtu/day Mmbtu/day Regional Direction Cost per Cost per Cost per (Gross) (Gross) (Gross)…
  42. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 42
    What Does the Futures Strip Price Indicate for Regional Basis Dawn 2015 +0.23 2020 -0.14 Algonquin 2015 +2.60 Michcon Transco Z6 2020 +1.40 Chicago CG 2015 +0.12 (NNY) 2015 +0.07 2020 -0.06 2015 +0.55 2020 -0.13 2020 +0.41…
  43. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 43
    LNG Exports Developing Projects To-Date LNG Exports by Facility - Bcf/d 14 12 Based on operator 10 announced dates 8 6 4 2 0 Sabine Pass Elba Island Cove Point Freeport Cameron Corpus Christi Lake Charles Golden…
  44. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 44
    Gas In Place (GIP) Marcellus Shale GIP is a function of pressure, temperature, thermal maturity, porosity, hydrocarbon saturation and net thickness Two core areas have been developed in the Marcellus Condensate and NGLs are…
  45. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 45
    Gas In Place (GIP) Point Pleasant Outlined portion represents the area of the highest pressure gradients in the Point Pleasant Note: Townships where Range holds 3,000 or more acres (as of 12/31/2014), and estimated as…
  46. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 46
    Gas In Place (GIP) Upper Devonian Shale The greatest GIP in the Upper Devonian is found in SW PA A significant portion of the GIP in the Upper Devonian is located in the wet gas window Note: Townships where Range holds 3,000…
  47. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 47
    Southern Appalachia Strategic Marketing Advantages 465,000 net acres - Range owns minerals on Nora is strategically positioned to provide gas to southeast markets most of the acreage Contracts in place for 100 Mmcf/d at 0.20/Mmbtu…
  48. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 48
    2014 Nora Enhanced Results From New Completion Design 200 180 2014 CBM 160 Pumping sand at higher 140 2014 wells with new completion design pressures during completion MCFD 120 operations has significantly 100 increased…
  49. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 49
    Midcontinent Division 360,000 net acres Current development activity has been in the Mississippian Chat along the Nemaha Ridge Horizontal Granite Wash, Cleveland and Woodford potential on existing HBP acreage 2015 Planned…
  50. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 50
    Appendix Financial and Reserve Detail 51
  51. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 51
    Moved 8.8 Tcfe of Resource Potential into Proved Reserves in the Last Five Years YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 Proved 3.1 4.4 5.1 6.5 8.2 10.3 Reserves (Tcfe) Drill Bit Finding 0.69 0.59 0.76 0.67 0.57 0.55 Cost…
  52. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 52
    Strong, Simple Balance Sheet YE 2010 YE 2011 YE 2012 YE 2013 YE 2014 ( in millions) Bank borrowings 274 187 739 500 723 Sr. Sub. Notes 1,686 1,788 2,139 2,641 2,350 Less: Cash (3) (0) (0) (0) (0) Net debt 1,957 1,975 2,878…
  53. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 53
    Debt Maturities Range maintains an orderly debt maturity ladder 800 750 723 700 600 600 500 500 ( Millions ) 500 400 300 200 100 0 Senior Secured Revolving Credit Facility (as of December 31, 2014). Maximum…
  54. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 54
    Ranges Outstanding Bonds Corporate Rating: Ba1 (Positive) / BB+ (Stable) Senior Subordinated Notes Amount Current YTW 6.75% due 2020 500 3.62% 5.75% due 2021 500 4.24% 5.00% due 2022 600 4.83% 5.00% due 2023 750 4.81% Total…
  55. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 55
    Gas and Oil Hedging Status Volumes Hedged Average Floor Price Average Cap Price Period ( / Mmbtu) (Mmbtu/day) ( / Mmbtu) (Apr-Dec) 2015 Swaps 730,809 3.64 Gas Hedging 2015 Collars 145,000 4.07 4.56 2016 Swaps 622,500 3.42…
  56. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 56
    Natural Gas Liquids Hedging Status Volumes Hedged Hedged (1) Period (bbls/day) Price (/gal) 2015 Swaps 13,331 0.60 (Apr-Dec) Propane (C3) 2016 Swaps 5,500 0.60 2015 Swaps 3,500 0.72 Normal Butane (Apr-Dec) (NC4) 0.72…
  57. March 2015 COMPANY PRESENTATION – Range Resources Corp – slide 57
    Contact Information Range Resources Corporation 100 Throckmorton, Suite 1200 Fort Worth, Texas 76102 Main: 817.870.2601 Fax: 817.870.2316 Rodney Waller, Senior Vice President rwallerrangeresources.com David Amend, Investor…

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