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Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp

Range Resources Corp · Dec 4, 2012 · 81 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. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 1
    Dahlman Rose & Co. Ultimate Oil Services and E&P Conference Alan Farquharson - SVP December 4, 2012
  2. Dahlman Rose Co Ultimate Oil Services and EP 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. Dahlman Rose Co Ultimate Oil Services and EP 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. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 4
    Range Portfolio Provides Flexibility The quality and diversity of its current drilling portfolio allows Range to focus on the highest rates of return each year while adjusting to commodity prices. Range focuses on balancing…
  5. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 5
    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 1.2 billion as of September 30, 2012 Well Structured…
  6. Dahlman Rose Co Ultimate Oil Services and EP 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 2011 Average /Mcfe 8.00 6.00 4.00…
  7. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 7
    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…
  8. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 8
    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…
  9. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 9
    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…
  10. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 10
    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)…
  11. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 11
    Southwest PA Large upside potential Calculation of Acreage Drilled Prospective Acreage 570,000 Assumed spacing 80 acres Potential Marcellus Shale locations 7,125 Producing horizontal wells 375 Drilled wells divided by…
  12. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 12
    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…
  13. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 13
    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 &…
  14. Dahlman Rose Co Ultimate Oil Services and EP 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. Dahlman Rose Co Ultimate Oil Services and EP 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. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 16
    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…
  17. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 17
    Ethane Arrangements: Existing and Proposed Mariner East & West have All NGLs can be tied into access to international NE markets or be markets and premium export exported internationally pricing for future contracts Ethane/propane…
  18. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 18
    SW PA Wet Gas Volume Projected to At Least Double by 2016 Minimum Wet Gas Production at Maximum Ethane Recovery Contracted Ethane Volume 900,000 100,000 90,000 750,000 Gross Inlet Wet Gas (mcf/d) 80,000 70,000 Gross…
  19. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 19
    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…
  20. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 20
    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…
  21. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 21
    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…
  22. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 22
    157,000 Net Acres are Prospective in Horizontal Mississippian All of Ranges 157,000 net acres appear prospective with vertical well control Over 4,500 Mississippian wells have defined the productive limits On 80 acre spacing…
  23. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 23
    Horizontal Mississippian Development Mode Economics EUR 485 Mboe for 2,200 laterals 160% 600 Mboe for 3,500+ laterals 140% Drill & Complete Capital 3.1 MM on 485 Mboe 120% Drill & Complete Capital 3.4 MM on 600 Mboe 100% All…
  24. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 24
    2009 - 2011 Horizontal Mississippian Type Curves By Product 2009-2011 Development Program 1,000 - 8 wells average EUR is 485 Mboe - 2,197 ft. laterals and 12 stages (averages) - 67% of EUR comprised of liquids - EUR equates to 4-9%…
  25. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 25
    2012 Horizontal Mississippian Type Curves By Product 2012 Development Program 1,000 - 18 wells average EUR is 600 Mboe - 3,811 ft. laterals and 19 stages (averages) - 67% of EUR comprised of liquids - EUR equates to 6-11% recovery…
  26. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 26
    Other Areas for Future Development Super-Rich Upper Devonian - Second well encouraging 24 hour test rate 8.0 Mmcfe/d composed of 4.7 Mmcf/d gas 172 bbls condensate 380 bbls NGLs 10 Mmcfe/d with ethane recovery Utica/Point…
  27. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 27
    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…
  28. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 28
    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…
  29. Dahlman Rose Co Ultimate Oil Services and EP 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…
  30. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 30
    Appendix 31
  31. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 31
    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 32
  32. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 32
    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…
  33. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 33
    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…
  34. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 34
    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…
  35. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 35
    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…
  36. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 36
    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…
  37. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 37
    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…
  38. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 38
    Marcellus NGL Pricing Realized Marcellus NGL Prices (2) Currently all ethane sold with the natural gas as additional Btus WTI Oil Marcellus NGL as % Price NGL Price of WTI 1Q 2009 43.20 24.20 56% 2Q 2009 59.77 27.25 46% Wt. Avg.…
  39. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 39
    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…
  40. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 40
    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…
  41. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 41
    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…
  42. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 42
    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…
  43. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 43
    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…
  44. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 44
    Marcellus Net Backs After Transportation Millennium NYMEX Flat Tennessee 300 NYMEX Less 0.20 to 1.50 TCO Columbia NYMEX Less 0.20 Transco NYMEX Flat less 0.15 TRANSMISSION PIPELINES COLUMBIA DOMINION MILLENIUM…
  45. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 45
    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…
  46. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 46
    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…
  47. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 47
    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…
  48. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 48
    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…
  49. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 49
    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…
  50. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 50
    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…
  51. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 51
    Upper Devonian and Utica Shale UPPER DEVONIAN Formation Current Status Tested first two super-rich wells in mid 2012 with best well IP of 8.0 Mmcfe/d Thermal maturity similar to Upper Devonian Shales Marcellus First 2 wet…
  52. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 52
    2nd Super Rich Upper Devonian Well Very Encouraging 2nd well 24 hour test rate Super-Rich 8.0 Mmcfe/d composed of: 125,000 acres 4.7 Mmcf/d gas Wet Gas 210,000 acres 172 bbls condensate 380 bbls NGLs With ethane recovery - 10.0…
  53. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 53
    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 ( Completed) EVEP RANGE 2nd Well HUNT Organic Content =…
  54. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 54
    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…
  55. Dahlman Rose Co Ultimate Oil Services and EP 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. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 56
    Range has 157,000 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. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 57
    Concentrated Position Allows Low Cost Future Development Range has 157,000 net acres largely blocked up for economy of scale Gas processing and crude oil refining are Conoco Phillips crude oil refinery Capacity: 187,000 Bbls/d…
  58. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 58
    % of Mississippian Wells Classified as Oil Oilier to the East Over 90% of historical wells drilled on the east side of the play are classified as oil wells Based on industry reporting sources 59
  59. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 59
    Avg. Cum. Oil Production per Well from Mississippian Some Kansas data skewed due to reporting inconsistency in state reports Highest average cumulative oil production from vertical wells are located in Kay County Based on…
  60. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 60
    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…
  61. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 61
    Midland Basin Cline Oil Shale & Wolfberry RANGE 4th Quarter 2012 Activity Apache Additional 3 Wolfberry Locations Range has 100,000 net Laredo Devon acres; 91% HBP Cline Shale Horizontal Wolfberry IP: 282 BOPD + 123 BNGLs + 476…
  62. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 62
    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…
  63. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 63
    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 40% Oil Price…
  64. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 64
    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…
  65. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 65
    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…
  66. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 66
    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…
  67. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 67
    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,…
  68. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 68
    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…
  69. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 69
    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 70
  70. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 70
    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%…
  71. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 71
    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…
  72. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 72
    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…
  73. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 73
    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 0.44…
  74. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 74
    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…
  75. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 75
    Strong, Simple Balance Sheet Year- 1st 2nd 3rd Year-End Year-End Year-End End Quarter Quarter Quarter 2009 2010 2011 2008 2012 2012 2012 ( in millions) Bank borrowings 693 324 274 187 0 235 461 Sr. Sub. Notes 1,098 1,384…
  76. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 76
    Debt Maturities Range maintains an orderly debt maturity ladder 700 600 600 500 500 500 461 ( Millions ) 400 300 300 250* 250 200 100 0 Senior Secured Revolving Credit Facility (as of December 30, 2012)…
  77. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 77
    Ranges Outstanding Bonds Corporate Rating: BB / Ba2 Outlook: Stable Senior Subordinated Notes Amount Rating Current YTW 7.50% due 2017 250 BB / Ba3 -* 7.25% due 2018 250 BB / Ba3 3.78% 8.00% due 2019 300 BB / Ba3 3.93% 6.75% due…
  78. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 78
    Natural Gas Has Greatly Reduced Emissions Switch from coal to natural gas has singlehandedly caused the United States to reduce its annual CO2 emissions by about 500 metric tons. This is about twice as much as the entire global…
  79. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 79
    Gas Hedging Status Hedges Insulate Cash Flow Volumes Average Average Premium Hedged Floor Price Cap Price Paid (Mmbtu/day) ( / Mmbtu) ( / Mmbtu) ( / Mmbtu) 4Q 2012 Swaps 270,000 3.77 (0.01) 4Q 2012 Collars 279,641 4.76 5.22…
  80. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 80
    Oil Hedging Status Hedges Insulate Cash Flow Volumes Average Average Premium Hedged Floor Price Cap Price Received (bbls/day) (/bbl) (/bbl) (/bbl) 4Q 2012 Calls 2,200 85.00 13.71 4Q 2012 Collars 4,500 75.56 82.78 8.57 2013…
  81. Dahlman Rose Co Ultimate Oil Services and EP Conference – Range Resources Corp – slide 81
    Natural Gas Liquids Hedging Status Hedges Insulate Cash Flow (a) Hedged Volumes Hedged Price Natural (bbls/day) (/gal) Gasoline (C5) 4Q 2012 Swaps 6,500 2.2923 2013 Swaps 6,500 2.1343 Propane (C3) 4Q 2012 Swaps 6,000 1.2241…

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