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Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp

Range Resources Corp · May 29, 2013 · 29 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. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 1
    Bernsteins 29th Annual Strategic Decisions Conference Ray Walker SVP & Chief Operating Officer May 29, 2013
  2. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 2
    Range Resources Strategy Proven track record of performance Marcellus Shale 26 to 34 Tcfe resource potential Focus on PER SHARE Upper Devonian Shale 12 to 18 Tcfe resource potential GROWTH of production Utica Shale and reserves…
  3. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 3
    Range Significant Growth Potential for Many Years 20%-25% line-of-sight production growth for many years Cash flow growth is expected to outpace production growth High rate of return, high growth, large scale assets Low cost…
  4. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 4
    Financial Position Strong, Simple Balance Sheet Bank debt, subordinated notes and common stock No debt maturity until 2016 (bank) and 2019 (notes) Available liquidity of 1.6 billion Well Structured Bank Credit Facility 28 banks…
  5. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 5
    Resilient Credit Metrics Driven by Low Cost Growth Debt / EBITDAX Debt / Total Proved (/mcfe) 4.5x 1.00 Covenant 0.90 BB / Ba2 Peer Average for 2011 4.0x 0.80 3.5x 0.70 3.0x 0.60 0.50 2.5x 0.40 2.0x 0.30 1.5x 0.20 0.10…
  6. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 6
    Range is Focused on Per Share Growth, on a Debt-Adjusted Basis Production/share debt adjusted Reserves/share debt adjusted 1.8 40 1.6 35 1.4 30 Mcfe Mcfe 1.2 25 1.0 20 0.8 15 0.6 10 0.4 5 2007 2008 2009 2010…
  7. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 7
    Ten Years of Double-Digit Production Growth 20%-25% Growth Projected for 2013 1000 900 800 700 Mmcfe/d 600 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E Includes impact of acquisitions…
  8. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 8
    Unit Costs Are a Key Focus 5.00 4.50 4.00 3.50 /mcfe 3.00 2.50 2.00 1.50 1.00 0.50 0.00 - 2008 2009 2010 2011 2012 Reserve 1.64 1.25 0.83 0.68 0.67 Replacement(1) LOE (2) 0.99 0.82 0.72 0.60 0.41 Prod.…
  9. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 9
    Range 1 Low Cost Producer in 2012 1st, 2nd, or 3rd in the Bank of America Study for Each of the Last 9 years 20.00 Lease Operating Expense G&A Expense Interest Expense 3-year All-in F&D 18.00 16.00 14.00 12.00 2012 Average 10.00…
  10. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 10
    Ranges Reserve Base and Upside are Growing Size = Resource Potential Placement = Proved Reserves 9.0 Proved Reserves (Tcfe) 8.0 7.0 68.0 6.0 5.0 60.0 52.0 4.0 3.0 28.2 31.7 2.0 21.9 1.0 0.0 (Tcfe) YE 2007 YE 2008 YE…
  11. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 11
    1 Million Net Acres Prospective for Shale in PA Northwest 315,000 net acres(1) 89% HBP Northeast 145,000 net acres 69% HBP Greater Pittsburgh Southwest 540,000 net acres(2) 51% HBP Note: Townships where Range…
  12. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 12
    Southwest PA Ranges 540,000 Net Acres are Highly Prospective Approximately 1,650 wells likely have Beaver Butler Armstrong Indiana defined the productive Allegheny limits of the Marcellus (1,150 horizontal & 500 vertical)…
  13. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 13
    Southwest PA Large Upside Potential Small Percentage of Acreage Drilled Prospective acreage 540,000 Assumed spacing 80 acres Potential Marcellus Shale locations 6,750 Producing horizontal wells 430 Drilled wells divided by…
  14. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 14
    Southwest PA Wet Marcellus Over 200 wells placed on Super-Rich production in wet gas area 110,000 acres over the last four years with Wet Gas varying lateral lengths and 220,000 acres frac stages As of the end of 2012, Range has…
  15. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 15
    SW PA Wet Marcellus Projected Development Mode Economics Southwestern PA (wet gas case) with Reserves and economics based on planned 2013 activity of 3,200 foot Pennsylvania State Impact Fee lateral length with 13 frac stages EUR…
  16. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 16
    Southwest PA Super-Rich Marcellus Range plans to add more frac Super-Rich stages to wells drilled in the 110,000 acres super-rich area in 2013 Wet Gas As of the end of 2012, Range 220,000 acres has turned to sales 51 super- rich…
  17. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 17
    SW PA Super-Rich Area Marcellus Projected Development Mode Economics Southwestern PA (High BTU case) with Reserves and economics based on Pennsylvania State Impact Fee planned 2013 activity of 3,800 foot lateral length with 18 frac…
  18. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 18
    Marcellus Wet Gas Provides Significant Price Uplift /Wellhead Mcf 8.15 - 8.25 8.00 7.80- 7.90 7.54 7.00 NGLs 3.42 - NGLs 2.09 3.07 - NGLs (C3+) 3.52 (C2+) 6.00 3.17 (C2+) 5.00 1.53 Condensate 4.16 4.00 1.53 Condensate 1.53…
  19. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 19
    Innovative NGL Marketing Mariner East & West have access to international markets and premium export Ethane/Propane can be tied into NE markets or be pricing for future contracts Ethane export to exported internationally Canada 2013…
  20. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 20
    Ethane Ship Currently Being Used by Evergas Photo Courtesy of Evergas 21
  21. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 21
    Southwest PA Industry Activity in Dry Gas Acreage Range has 210,000 net acres in the dry gas window Beaver Butler Armstrong Indiana 53% of horizontal dry gas Marcellus wells drilled by industry in SW PA have projected recoveries…
  22. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 22
    SW PA Dry Gas Marcellus Development Mode Economics Southwestern PA (dry gas) with Pennsylvania State Impact Fee 2,900 lateral length & 10 stages EUR 7.5 Bcf (Based on 16 wells 100% completed in 2012) Drill and Complete Capital 4.5…
  23. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 23
    Additional Upside Utica/Point Pleasant Upper Devonian - Significant acreage positions in two areas - Ranges first four wells successful SW PA dry gas - Latest well 24 hour test rate NW PA wet gas 10.0 Mmcfe/d composed of First well…
  24. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 24
    Oklahoma/Kansas - Horizontal Mississippian Ranges 160,000 net 64 MBO* acres appear prospective based on vertical well control 67 MBO Over 4,500 Mississippian wells have defined the productive limits On 80 acre spacing (4,000…
  25. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 25
    Horizontal Mississippian Development Mode Economics Based on 25 wells (2009-2012) 160% EUR 485 Mboe (2009-2011 wells) 140% 600 Mboe (2012 wells) 120% Drill & Complete Capital 3.4 MM 100% All cases include 200 M for SWD IRR…
  26. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 26
    New Markets Increasing Demand for Natural Gas Power Generation Sector Utilities using more gas versus coal due to an increasingly reliable supply, environmental advantages and cost Per EIA, 2012 natural gas used for power generation…
  27. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 27
    Environment, Health and Safety - A Core Value at Range 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…
  28. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 28
    Range Significant Growth Potential for Many Years 20%-25% line-of-sight production growth for many years Cash flow growth is expected to outpace production growth High rate of return, high growth, large scale assets Resource…
  29. Bernsteins 29th Annual Strategic Decisions Conference – Range Resources Corp – slide 29
    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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