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Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp

Range Resources Corp · Oct 1, 2012 · 79 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. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 1
    4th Annual Johnson Rice Energy Conference Ray Walker SVP & COO October 2, 2012
  2. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 2
    Range Resources Strategy Proven track record of performance Marcellus Shale 24 to 32 Tcfe resource potential Focus on PER SHARE Upper Devonian Shale 10 to 14 Tcfe resource potential GROWTH of production Utica Shale and reserves…
  3. Johnson Rice Companys 2012 Annual Energy Conference – 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 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…
  4. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 4
    Strong Financial Position Strong, Simple Balance Sheet Bank debt, subordinated notes and common stock No debt maturity until 2016 (bank) and 2017 (notes) Available liquidity of 1.5 billion as of June 30, 2012 Well Structured Bank…
  5. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 5
    Range Key Characteristics High rate of return, high growth assets led by the Marcellus and Horizontal Mississippian plays Low cost structure Resource potential 9-12 times proved reserves Excellent technical and support teams…
  6. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 6
    Range Low Cost Producer Among the Top Five for Each of the Last 8 years Reserve Replacement Costs PUD Adjustment Interest Expense G&A Expense Lease Operating Expense 14.00 12.00 10.00 /Mcfe 8.00 6.00 4.00 2.00…
  7. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 7
    Operations Update Marcellus Wet & Dry Five Enhancements Super-Rich Marcellus Horizontal Mississippian Oil Play Super-Rich Upper Devonian Wet Utica Cline Shale Oil Play 8
  8. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 8
    Over 1 Million Net Acres Prospective for Shale in PA Lake Erie New York Northwest 330,000 net acres(1) 83% HBP Crawford Warren Venango Lycoming Mercer Clinton OH Clearfield Lawrence Northeast Butler Centre 180,000…
  9. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 9
    Southwest PA Ranges 570,000 net acres are highly prospective Approximately 1,500 wells likely have Beaver Butler Armstrong Indiana defined the productive limits of the Marcellus ( 1,000 horizontal + Greater 500 vertical)…
  10. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 10
    Southwest PA Large upside potential Calculation of Acreage Drilled Prospective Acreage 570,000 Assumed spacing 80 acres Potential locations 7,125 Producing horizontal wells 300 Drilled wells divided by potential locations…
  11. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 11
    Southwest PA Wet Marcellus Super-Rich 188 wells placed on 125,000 acres production in 2009, 2010 Wet Gas 210,000 acres and 2011 generally in the circled wet area of the Marcellus Shale: Average lateral length of WV 2,981 feet…
  12. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 12
    SW PA Wet Marcellus Projected Development Mode Economics Southwestern PA (wet gas case) with Pennsylvania State Impact Fee 2,981 lateral length & 10 stages EUR 281 Mbbls & 4.2 BCF (Based on 188 wells 160% completed in 2009, 2010 &…
  13. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 13
    Marcellus Wet Gas Provides Significant Uplift /Wellhead Mcf 7.00 - 7.10 7.00 6.00 - 6.10 6.00 5.65 3.52 - NGLs 3.62 (C2+) 5.00 1.52 NGLs 2.52 - NGLs (C3+) 2.62 (C2+) 4.00 3.33 1.01 Condensate 3.00 1.01 Condensate 1.01 Condensate…
  14. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 14
    Southwest PA Super-Rich Marcellus First 8 Super-Rich wells: Super-Rich 125,000 acres Wet Gas Average lateral length of 210,000 acres 3,742 feet Average of 14 frac stages Average 400 Mbbls (95 WV Mbbls condensate and 305 Mbbls…
  15. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 15
    SW PA Super-Rich Area Marcellus Projected Development Mode Economics Southwestern PA (High BTU case) with Pennsylvania State Impact Fee 3,742 lateral length & 14 stages EUR 400 Mbbls & 3.9 bcf (Based on 8 160% wells completed in 2010…
  16. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 16
    Southwest PA Industry Activity in Dry Acreage Range has 235,000 net acres in the dry gas window Beaver Butler Armstrong Indiana 45% of horizontal dry gas Marcellus wells drilled by industry in SW PA have projected recoveries…
  17. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 17
    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 180% completed in 2012) 160% Drill and Complete Capital…
  18. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 18
    SW PA Dry Gas Marcellus Type Curve 20,000 - Average EUR of 7.5 Bcf 18,000 - Average Lateral Length 2,900 ft. with 10 stages - Based on 16 Range wells completed in 2012 16,000 14,000 Gross Gas (Mcf/d) 12,000 10,000…
  19. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 19
    Ethane Arrangements: Existing and Proposed Mariner East & West have All NGLs can be tied access to global markets and into NE markets or premium export pricing for be exported globally future contracts Ethane/propane 2013/2015 export…
  20. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 20
    152,000 Net Acres are Prospective in Horizontal Mississippian All of Ranges 152,000 net acres appear prospective with vertical well control Over 4,500 Mississippian wells have defined the productive limits On 50 acre spacing…
  21. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 21
    Type Curve Improves with Performance Results 600 2012 Development Program 2009-2011 Development Program - 6 wells average EUR is 600 Mboe - 8 wells average EUR is 485 Mboe - 3,468 ft. laterals and 17 stages - 2,197 ft. laterals and…
  22. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 22
    Horizontal Mississippian Development Mode Economics EUR 485 Mboe 600 Mboe 160% Drill & Complete Capital 3.1MM on 485 Mboe 140% Drill & Complete Capital 3.4 MM on 600 Mboe 120% All cases includes 200 M for SWD F&D 8.12/boe (485…
  23. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 23
    2nd Super Rich Upper Devonian Well Very Encouraging 2nd well 24 hour test rate Super-Rich 6.6 Mmcfe/d composed of: 125,000 acres 3.9 Mmcf/d gas Wet Gas 210,000 acres 156 bbls condensate 303 bbls NGLs With ethane recovery - 8.3…
  24. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 24
    Northwest PA Range holds 190,000 net Utica/Point Pleasant acres Net Point Pleasant POINT PLEASANT Thickness = 150 - 250 feet CHESAPEAKE RANGE 1st Well Geatches David - 1 ( Waiting on FRAC) EVEP RANGE 2nd HUNT Organic Content =…
  25. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 25
    Midland Basin Cline Oil Shale & Wolfberry RANGE 2nd half 2012 Activity Apache Additional 1 Cline + 4 Wolfberry Locations Devon Range has 100,000 net Laredo acres; 91% HBP Cline Shale Horizontal IP: 282 BOPD + 123 BNGLs + 476 MCF…
  26. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 26
    Safety and Environmental Safety and Environmental is a part of every aspect of our business. As such, protecting our employees, contractors, the public and the environment is held as a core value. Range has established a leadership…
  27. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 27
    Why Invest in Range Proven Track Record of Growth at Low Cost 6 consecutive years of double-digit production and reserve growth per share One of the lowest cost structures in the industry 1.00/mcfe or less finding and development…
  28. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 28
    Appendix 29
  29. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 29
    Two of Ranges Focus Areas have the Best Rates of Return 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: Credit Suisse Research Report, June 20, 2012 Based on strip pricing on date of report 30
  30. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 30
    Shale Wells Drilled and Permitted LegendLegend RANGE ANADARKO CHEVRON/CHIEF SW Super-Rich Area CABOT CHESAPEAKE CHIEF CONSOL ECA EOG EQT Wet Area EXCO REX SHELL TALISMAN ULTRA XTO/EXXON/PHILLIPS OTHERS LARGER DOTS…
  31. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 31
    Shale Wells Drilled and Permitted SW PA LegendLegend RANGE ANADARKO CHEVRON/CHIEF SW CABOT CHESAPEAKE CHIEF CONSOL ECA EOG EQT EXCO REX SHELL TALISMAN ULTRA XTO/EXXON/PHILLIPS OTHERS LARGER DOTS DRILLED SMALLER…
  32. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 32
    Shale Wells Drilled and Permitted NE PA Tioga Broom Steuben Chemung Range/Talisman - Area of Mutual Interest Tioga Susquehanna Bradford LegendLegend RANGE ANADARKO CHEVRON/CHIEF SW Potter CABOT CHESAPEAKE Lycoming…
  33. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 33
    Ranges Marcellus Shale Net Production 750 700 Anticipate 600 Mmcfe/d or greater by YE 2012 21 650 600 18 550 400+ Mmcfe/d exit rate at YE 2011 Net Mmcf/d or Net Mmcfe/d 500 15 450 Net Mbbls/d 400 200+ Mmcfe/d exit…
  34. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 34
    SW PA Wet Area Marcellus Type Curve 7,000 250 2009 - 2011 wells average 281 Mbbls (24 Mbbls condensate & 257 Mbbls NGLs) & 4.2 Bcf Lateral Length Stages 6,000 2,981 ft. 10 200 5,000 Residue Gas (mcf/d) LIQUIDS (Bbls/d) 150…
  35. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 35
    SW PA Super-Rich Area Marcellus Type Curve 10,000 2010 - 2011 wells average 400 Mbbls (95 Mbbls condensate & 305 Mbbls NGLs) & 3.9 Bcf Lateral Length Stages Mcf/day (residue gas) 3,742 ft. 14 1,000 Bbls/day 100 10…
  36. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 36
    Northeast PA Update New York New Developments: Pennsylvania Northeast 180,000 First test with 4,900 ft. net acres IP 23 Mmcf/d lateral and 17 frac stages resulted in 10 Bcf EUR well projected 10 Bcf EUR IP 10 Mmcf/day In…
  37. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 37
    NE PA Dry Marcellus Projected Development Mode Economics Northeastern PA (dry gas case) with 2,566 lateral length and 9 stages Pennsylvania State Impact Fee 120% EUR 6.5 Bcf (Based on 25 wells in NE PA) 100% Drill and Complete…
  38. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 38
    NE PA Dry Area Marcellus Type Curve 10,000 9,000 8,000 2011 wells average 6.5 Bcf (25 wells) Lateral Length Stages 7,000 2,566 ft. 9 Gross Gas (mcf/d) 6,000 5,000 4,000 3,000 2,000 1,000 - 0 20 40 60 80…
  39. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 39
    NE PA Dry Long Lateral Projected Development Mode Economics Northeastern PA (dry gas case) with 4,900 lateral length and 17 stages Pennsylvania State Impact Fee 140% EUR 10 Bcf (Based on 1 well in NE PA) 120% Drill and Complete…
  40. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 40
    NE PA Dry Area Long Lateral Marcellus Type Curve 10,000 2011 well average 10 BCF 9,000 Lateral Length Stages 8,000 4,900 ft. 17 7,000 Gross Gas (mcf/d) 6,000 5,000 4,000 3,000 2,000 1,000 0 0 20 40 60 80…
  41. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 41
    Lycoming County Developments Over 50 wells on production at 2Q2012 Available capacity Phase I 50 Mmcf/day - 1Q2011 Phase II 150 Mmcf/day - 4Q2011 Phase III 150 Mmcf/day - 1Q2013 350 Mmcf/day Phase III Phase IV Could be added…
  42. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 42
    Upper Devonian and Utica Shale UPPER DEVONIAN Formation Current Status First 2 wells average IP of 3.8 Mmcfe/d. Best well 4.7 Bcfe Thermal maturity similar to Marcellus Upper Devonian Shales Tested first two super-rich wells…
  43. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 43
    Target is Point Pleasant Carbonate Section CHK Area RANGE Carroll Co., OH Location NE OH PA SW RHOZ [G/C3] RHOZ [G/C3] NE 2.3 3 2.3 3 DPHZ [CFCF] DPHZ [CFCF] RHOB [G/C3] RHOB [G/C3] Higher carbonate 0.3 -0.1 0.3 -0.1 2.5 3…
  44. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 44
    Wet Gas Provides Excellent Economics Based on SW PA Gas Quality and Volumes 1,266 Processing Plant Inlet Btu Dry Gas Field Price 3.33/mcf 1,040 Btu assumed dry gas All processing costs, shrink and fuel included Processed Wet Gas Field…
  45. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 45
    Marcellus NGL Pricing Realized Marcellus NGL Prices (2) Currently all ethane sold with the natural gas as additional Btus Marcellus NGL as % WTI Oil Price NGL Price of WTI 1Q 2009 43.20 24.20 56% 2Q 2009 59.77 27.25 46% Wt. Avg.…
  46. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 46
    Proposed Gross Capacity Additions Cryogenic Processing Installed by MarkWest Liberty Capacity Committed to Range Houston, PA Majorsville, WV & Other Third Party Total (Mmcf/day) Volume Volume Volumes Volume April 2009 35 35…
  47. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 47
    MarkWest Liberty Marcellus Project Schedule MarkWest Liberty is developing integrated and scalable gathering, processing, fractionation, and marketing infrastructure to support production in excess of 2.1 Bcf/d Houston Processing and…
  48. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 48
    MarkWest Liberty Propane Supply and Distribution Bbls/d Winter Propane Market vs MarkWest Production MarkWest Liberty has invested 120,000 Long Haul significant capital to develop a 100,000 Markets world-class NGL fractionation,…
  49. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 49
    MarkWest Liberty Isobutane and Natural Gasoline Supply and Distribution Bbls/d Isobutane Refinery Market vs MarkWest Liberty continues to develop pipeline, 90,000 MarkWest Production rail, and truck markets to further optimize NGL…
  50. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 50
    Project Mariner Overview Export Capabilities Will Open Up Foreign Markets Source: MarkWest Energy Partners, March, 2012 51
  51. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 51
    The Mariner Project West & East New Connection to Existing Sunoco Pipelines Mariner West Sarnia, Ontario Targeted service by 2H2013 Sunoco Logistics Existing Pipeline Sunoco 40 mile 10 pipe to existing Philadelphia Sunoco pipeline…
  52. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 52
    ATEX Express Pipeline: Transport Ethane from Marcellus / Utica Shale Range has up to 20,000 Bbls/day contracted. Anchor shipper rate of 0.145 per gallon. Published expected commencement 1Q 2014. 1,230 mile pipeline with capacity…
  53. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 53
    Marcellus Area Pipelines Great Take-Away Capacity Firm Transport & Sales with Firm Transport 2012 2014 SW Firm Transport 355 Mmcf/day 450 Mmcf/day Firm Sales 200 Mmcf/day 200 Mmcf/day NE Firm Transport -- -- Firm Sales 80 Mmcf/day…
  54. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 54
    Marcellus Net Backs After Transportation Millennium NYMEX Flat Tennessee 300 NYMEX Less 0.05 to 1.50 TCO Columbia NYMEX Less 0.20 Transco NYMEX Flat TRANSMISSION PIPELINES COLUMBIA DOMINION MILLENIUM NATIONAL…
  55. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 55
    Midcontinent Resource Potential Kansas Kay Oklahoma St. Louis Horizontal Noble Mississippian Hansford Ochiltree Cana Major Lipscomb Woodford Blaine Kingfisher Hutchison Roberts Hemphill Canadian Wheeler Gray Caddo…
  56. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 56
    Range has 152,000 Net Acres on or in Close Proximity to the Nemaha Ridge West East NEMAHA RIDGE (Uplift) Location is Important Our location on the Nemaha Uplift offers enhanced Chat Chat development, as well as a favorable…
  57. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 57
    Concentrated Position Allows Low Cost Future Development Range has 152,000 net acres largely blocked up for economy of scale Bellmon Plant Superior Capacity: 15 Mmcf/d; 30 Mmcf/d 1Q13 Residue Pipeline: Southern Star Gas…
  58. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 58
    Efficient Plan to Ramp up Production and Hold Acreage Horizontal Mississippian Development design provides for cost efficiencies now and in the section future Design allows maximum leasehold one mile perpetuation County…
  59. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 59
    West Texas Oil Cline Shale Projected Development Mode Economics 3,000 lateral length and 10 stages EUR 340 Mboe (2 wells) 50% (210 Mbbl oil, 71 Mbbl ngl, 353 Mmcf gas) Drill and Complete Capital 4.3MM 40% F&D 16.86/boe IRR…
  60. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 60
    West Texas Wolfberry Projected Development Mode Economics EUR 216 Mboe (2 wells) 80% (73 Mbbl oil, 72 Mbbl ngl, 426 Mmcf gas) 70% Drill and Complete Capital 2.6MM 60% F&D 15.39/boe 50% IRR (1) NYMEX 216 Oil Price Mboe…
  61. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 61
    Conger Field Cline & Wolfberry RANGE RESOURCES EDMONDSON A Time Strat. Units 37-19 42173334980000 Formations RANGE CONGER PROPERTIES I LM USBY 0. 2 2000 GR I LD 0 150 0. 2 2000 M_CLFK 5500 LSBY Spraberry - 6000…
  62. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 62
    Range Virginia Assets 353,000 gross, 231,000 net acres Interest in over 3,000 producing wells 6,000+ additional wells to drill F&D < 1.00/mcf LOE 0.60/mcf Proven 60 year track record in the field First horizontal wells…
  63. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 63
    Nine Years of Double-Digit Production Growth 2012 Growth Target 2x Past Years 800 35% Growth Target for 2012 700 600 Mmcfe/d 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E Includes impact…
  64. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 64
    Ranges Reserve Base and Upside are Growing Size = Resource Potential Placement = Proved Reserves 7.0 Proved Reserves (Tcfe) 6.0 5.0 60.0 52.0 4.0 3.0 31.7 28.2 2.0 21.9 9.2 1.0 0.0 (Tcfe) YE 2006 YE 2007 YE 2008 YE…
  65. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 65
    Resource Potential Contains Significant Liquid Component Net Unproven Gas Resource Area Liquids (Mmbbls) Resource (Tcf) Potential (Tcfe) Marcellus Shale 21 29 434 559 24 32 Upper Devonian Shale 8 12 253 368 10 14 Midcontinent,…
  66. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 66
    Ethane Substantially Increases Liquids Resource Potential Net Unproven Gas Liquids with Resource Area Resource (Tcf) Ethane (Mmbbls) Potential (Tcfe) Marcellus Shale 20 27 940 1,159 25 34 Upper Devonian Shale 8 12 604 940 12 18…
  67. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 67
    Five Year Reserve Growth Summary Year-End Proved Reserves 6,000 5,054 5,000 4,442 4,000 3,129 mmcfe Bcfe 3,000 2,654 2,233 2,000 1,000 - 2007 2008 2009 2010 2011 68
  68. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 68
    Higher Quality / Lower Cost Wells Driving Capital Efficiency Drill bit Reserve Replacement over 800%, while F&D under 1.00 900% 2.00 840% 850% Drill bit Replacement 1.80 800% Drill bit Reserve Replacement, % 1.60 700%…
  69. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 69
    Growth at Low Cost Top quartile growth at top quartile cost 3 Year 5 Year 2007 2008 2009(4) 2010 2011 Average Average Reserve growth 27% 19% 18% 42% 14% 24% 24% Drill bit replacement (1) 400% 386% 540% 840% 850% 756% 638% All…
  70. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 70
    2012 Capital Budget 2012 Capital Budget Equal to 2011 Spending Budget = 1.6 Billion Budget by Area Drilling Pipelines, Facilities & Other Southwest Marcellus Northeast Marcellus Acreage & Seismic Permian Appalachia / Nora…
  71. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 71
    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 - 2007 2008 2009 2010 2011 2012E Reserve 1.59 1.64 1.25 0.83 0.68 0.75 Replacement(1) LOE (2) 0.92 0.99 0.82 0.72 0.60 0.48…
  72. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 72
    Margins are a Key Focus 7.00 6.00 5.00 4.00 /Mcfe 3.00 2.00 1.00 0.00 2007 2008 2009 2010 2011 2012E Realized Prices 8.11 8.66 6.76 5.72 6.20 4.90 Cash Costs 2.47 2.66 2.59 2.59 2.61 2.43(2) Cash Margin 5.64 6.00…
  73. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 73
    Strong, Simple Balance Sheet Year-End Year-End Year-End Year-End 1st Quarter 2nd Quarter 2008 2009 2010 2011 2012 2012 ( in millions) Bank borrowings 693 324 274 187 0 235 Sr. Sub. Notes 1,098 1,384 1,686 1,788 2,388 2,389…
  74. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 74
    Debt Maturities Range maintains an orderly debt maturity ladder 700 600 600 500 500 500 ( Millions ) 400 300 300 250 250 235 200 100 0 Senior Secured Revolving Credit Facility (as of June 30, 2012) Senior…
  75. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 75
    Ranges Outstanding Bonds Corporate Rating: BB / Ba2 Outlook: Stable Senior Subordinated Notes Amount Rating Current YTW 7.50% due 2017 250 BB / Ba3 2.15 % 7.25% due 2018 250 BB / Ba3 3.10 % 8.00% due 2019 300 BB / Ba3 3.72 %…
  76. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 76
    Gas Hedging Status Hedges Insulate Cash Flow Volumes Average Average Premium Hedged Floor Price Cap Price Paid (Mmbtu/day) ( / Mmbtu) ( / Mmbtu) ( / Mmbtu) 3Q 2012 Swaps 220,000 3.73 (0.01) 3Q 2012 Collars 279,641 4.76 5.22…
  77. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 77
    Oil Hedging Status Hedges Insulate Cash Flow Volumes Average Average Premium Hedged Floor Price Cap Price Received (bbls/day) (/bbl) (/bbl) (/bbl) 3Q 2012 Calls 2,200 85.00 13.71 3Q 2012 Collars 4,500 75.56 82.78 9.30 4Q 2012…
  78. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 78
    Natural Gas Liquids Hedging Status Hedges Insulate Cash Flow (a) Hedged Volumes Hedged Price Natural (bbls/day) (/gal) Gasoline (C5) 3Q 2012 Swaps 6,500 2.2923 4Q 2012 Swaps 6,500 2.2923 2013 Swaps 6,500 2.1343 Propane (C3)…
  79. Johnson Rice Companys 2012 Annual Energy Conference – Range Resources Corp – slide 79
    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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