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Capital One Southcoast 2014 Energy Conference – Range Resources Corp

Range Resources Corp · Dec 10, 2014 · 35 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. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 1
    Capital One Securities, Inc. 9th Annual Energy Conference Alan Farquharson, SVP Reservoir Engineering & Economics December 10, 2014 1
  2. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 2
    Range is a Simple Story 1. Owns largest acreage position in core of Marcellus with additional stacked pay horizons 2. Wells, gathering, processing and markets planned or contracted to grow to 3 Bcfe per day and beyond 3. 20% to 25%…
  3. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 3
    Near-term Catalysts 1. Unit costs expected to continue to decline 2. Utica well test to potentially add another growth opportunity 3. Continuing significant reserve growth 4. Uplift in cash flow in 2015 with Mariner East NGL exports…
  4. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 4
    Range Resources Strategy Marcellus Shale 1 million net acres 41 to 51 Tcfe resource potential Proven track record of performance Upper Devonian Shale 12 to 18 Tcfe resource potential Utica/Point Pleasant Shale Focus on PER SHARE…
  5. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 5
    Ranges Planned Growth to 3 Bcfe Per Day 20%-25% growth for many years Wells identified, infrastructure planned with the contracted takeaway capacity to profitably grow production to 3 Bcfe/d Range is targeting to be cash flow…
  6. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 6
    20% - 25% Growth Trajectory 3,000 Growth trajectory to 3 Bcfe net per day: Corporate production at 25% Wells identified growth rate 2,500 Compression and processing plants scheduled Required takeaway capacity contracted 2,000…
  7. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 7
    Range is Focused on Per Share Growth, on a Debt-Adjusted Basis Production/share debt adjusted Reserves/share debt adjusted 2.0 50 45 1.8 Mcfe/share 40 Mcfe/share 1.6 35 1.4 30 1.2 25 1.0 20 0.8 15 0.6 10…
  8. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 8
    Unit Costs Are a Key Focus 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 2014E Reserve 1.64 1.25 0.83 0.68 0.68 0.66 0.63 Replacement(1) LOE (2) 0.99 0.82 0.72 0.60…
  9. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 9
    Financial Position Strong, Simple Balance Sheet Bank debt, subordinated notes and common stock No debt maturity until 2019 (bank) and 2020 (notes) Available liquidity of 1.2 billion under commitment amount Well Structured Bank…
  10. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 10
    Moved 6.4 Tcfe of Resource Potential into Proved Reserves in the Last Four Years Tcfe YE 2009 YE 2010 YE 2011 YE 2012 YE 2013 Proved 3.1 4.4(1) 5.1 6.5 8.2 Reserves Resource 24 - 32 35 - 52 44 - 60 48 68(3) 65 86(4)…
  11. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 11
    1 Million Net Acres Prospective for Shales in PA Northwest 305,000 net acres(1) (Legacy acreage is largely held by shallow production) Northeast 120,000 net acres (One rig is projected to hold all blocked up acreage being…
  12. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 12
    Pennsylvania Stacked Pays Net Acreage Wet Dry Total Acreage Acreage Acreage Upper Devonian 330,000 230,000 560,000 Marcellus 470,000 320,000 790,000 Utica/Point Pleasant 175,000 400,000 575,000 975,000 950,000…
  13. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 13
    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…
  14. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 14
    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…
  15. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 15
    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 12/31/2013), and estimated as…
  16. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 16
    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…
  17. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 17
    Range Acreage Strategically Located Near Highest GIP & Infrastructure Note: Townships where Range holds 3,000 or more acres (as of 12/31/2013), and estimated as prospective, are shown green. GIP Range estimates. 18
  18. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 18
    Southwest PA Ranges 530,000 Net Acres Approximately 2,900 industry wells (2,300 horizontal & 600 vertical) have defined the productive boundaries of the Marcellus Ranges acreage is highly prospective for Marcellus, with low…
  19. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 19
    Southwest PA Large Upside Potential Small Percentage of Acreage Drilled Prospective acreage 530,000 Assumed spacing 80 acres Potential Marcellus Shale locations 6,625 Producing horizontal wells 605 Drilled wells divided by…
  20. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 20
    Southwest PA Development Mode Economic Summary Targeting Average Lateral Length in 2015 to be over 6,200 feet Super-Rich Wet Dry 2.05 Mmboe (12.3 Bcfe) 12.3 Bcfe EUR 1,172 Mbbls & 5.3 Bcf 978 Mbbls & 6.4 Bcf 13.4 Bcf 0.40…
  21. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 21
    Appalachia Gas Transportation Arrangements Projected 2014 Projected 2016 Projected 2018 Transport Transport Transport Mmbtu/day Mmbtu/day Mmbtu/day Regional Direction Cost per Cost per Cost per (Gross) (Gross) (Gross) Mmbtu Mmbtu…
  22. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 22
    Natural Gas Transportation Arrangements 2,500,000 Ranges Firm Transportation Strategy: Add firm transport to good markets at a reasonable cost Time transportation commitments with expected production Firm Sales/Released Utilize firm…
  23. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 23
    Appalachia Supply & Demand 50 LNG exports starting in late 2015 40 Appears to have sufficient takeaway capacity by 2016 30 Bcf/d 20 10 0 Appalachia Consumption Regional Storage Injections Announced Takeaway Additions…
  24. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 24
    2014 Diversified Portfolio by Major Indices 3Q 2014 Corporate Differential Estimated Appalachia Gas Sales Portfolio By to NYMEX: (0.49) Major Indices - 2014 Southeast Calculated 4Q 2014 and 1Q 2015 Corporate Differential to NYMEX:…
  25. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 25
    2018 Diversified Portfolio by Major Indices Estimated Appalachia Gas Sales Portfolio By Major Indices - 2018 70% of Ranges gas volumes Southeast are expected to be priced off of indices outside of Appalachia by 2018 Northeast…
  26. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 26
    Innovative Gas and NGL Marketing 2016 Firm transportation volumes shown above exclude 380,000 Mmbtu/d of firm sales/released capacity 27 27
  27. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 27
    Range NGLs- Now a Global Market As the largest producer of NGLs in Appalachia, Range will continue to see high interest from international customers Shipments of ethane from Marcus Hook to Norway begin in second half of 2015.…
  28. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 28
    Additional Upside Point Pleasant Nearby industry activity is approaching our SW PA Point Pleasant acreage 400,000 net acres in SW PA RRC Claysville Sportsmans Club Range 2014 Point Pleasant test positioned in area of highest…
  29. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 29
    Additional Upside Upper Devonian 560,000 Net Acres Prospective for Upper Devonian Hydrocarbon in place and Super-Rich Wet Gas thermal maturity of SW PA 110,000 acres 220,000 acres Upper Devonian similar to Marcellus Able to…
  30. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 30
    Nora Area Strategic Marketing Advantages Nora is strategically Nora positioned to provide gas to southeast markets 3.0 Bcf/d of new demand in VA, NC, SC, TN, GA, AL with 1 Bcf/d of new demand in Virginia alone Contracts in…
  31. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 31
    Midcontinent Division Highlights 360,000 net acres Currently drilling Mississippian Chat and St. Louis Results are encouraging, as the last two quarters had the two highest average 24-hour IP rates achieved to date. 3rd Quarter…
  32. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 32
    Horizontal Mississippi Chat wells concentrated along Nemaha Ridge Range has 160,000 net acres largely blocked up for economy of scale Development concentrated in Kay and Noble counties Expected rate of return is 71% with cost…
  33. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 33
    New Markets Increasing Demand for Natural Gas Demand for natural gas could increase up to 20 Bcf per day by 2018(2) Power Generation Sector Utilities using more gas versus coal, by 2035 natural gas will surpass coal as leading…
  34. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 34
    Environment, Health and Safety - A Core Value at Range 1. Environmental, Health and Safety issues can affect many aspects of our business. Range feels a deep responsibility to protect our employees, contractors, the public and the…
  35. Capital One Southcoast 2014 Energy Conference – Range Resources Corp – slide 35
    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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